BILL ANALYSIS Ó Senate Appropriations Committee Fiscal Summary Senator Christine Kehoe, Chair SB 645 (Simitian) Hearing Date: 05/23/2011 Amended: 05/11/2011 Consultant: Jacqueline Wong-HernandezPolicy Vote: Education 7-1 _________________________________________________________________ ____ BILL SUMMARY: SB 645 establishes new criteria for charter school renewal and authorizes a charter school not meeting the renewal criteria to apply to the State Board of Education (SBE) for a determination of academic eligibility for the renewal of its charter by submitting evidence of the school's academic success, as specified. _________________________________________________________________ ____ Fiscal Impact (in thousands) Major Provisions 2011-12 2012-13 2013-14 Fund SBE eligibility determination Potentially significant ongoing costs General New renewal criteria and process Potential savings/costs in future years General _________________________________________________________________ ____ STAFF COMMENTS: This bill meets the criteria for referral to the Suspense File. Existing law provides for the establishment of charter schools in California, which may be authorized by a school district, a county board of education, or the State Board of Education, as specified. Charters can be granted for not more than five years and statute specifies that each renewal shall be for five years. Existing law further requires the renewal and any material revision of the provisions of the charter to be made only with the approval of the authority that granted the charter. (EC § 47601 et. seq.) In order to be renewed, a charter school must meet at least one of the following criteria: 1) Attainment of the school's Academic Performance Index (API) SB 645 (Simitian) Page 1 growth target in two of the last three years or in the aggregate last three years; 2) a ranking in deciles 4 to 10, inclusive, on the API in the prior year or in two of the last three years; 3) a ranking in deciles 4 to 10, inclusive, on the API for a demographically comparable school in two of the last three years; 4) academic performance that is at least equal to the academic performance of the public schools that the charter school pupils would otherwise been required to attend; or 5) qualification for participation in the Alternative School Accountability Model (ASAM). (EC § 47607) This bill makes the criteria for charter renewal more stringent. Specifically, this bill prohibits an authorizer of a charter school from considering or granting the renewal of the school's charter unless the school, based on data available as of October 1 of the fiscal year of renewal, meets one of the following criteria before having its charter renewed: 1) An API score of at least 700 in the most recent year; 2) a cumulative API growth of at least 30 points over the last three API cycles, as defined; 3) a ranking in deciles 6 to 10, inclusive, on the API for a demographically comparable school in the prior year or in two of the last three years: as specified; 4) participation in an alternative accountability system (ASAM); 5) determination of academic eligibility for renewal from the SBE within the prior 12 months. This bill specifies that in the absence of meeting these criteria, a charter cannot be renewed by the authorizing agency. Under this bill, if a charter is not eligible to be considered, the charter school can ask for a determination of academic eligibility for renewal by the SBE; this is functionally an appeal from being automatically disqualified. This bill provides that a charter school may apply to the SBE by submitting evidence of the school's academic success which may include, but is not limited to, information on individual pupil achievement, including longitudinal data that demonstrate individual pupil progress, analysis of similar pupil populations, or other relevant data as determined by the school. This bill requires the advisory committee appointed by the SBE (for the purpose of making recommendations to the Board regarding non-classroom based instruction, funding determinations and allocations) to hold a public hearing on the matter and make a recommendation to the SBE on the application, SB 645 (Simitian) Page 2 based on information provided by the school and anyone participating in the hearing. The SBE would ultimately determine eligibility. In order to implement this process, CDE staff would need to develop a procedure for receiving and evaluating materials submitted by charter schools not deemed eligible to apply to their authorizing agencies for renewal. This bill specifies that the committee can consider "other relevant data as determined by the school"; depending on what is included, there may be other additional workload costs. Moreover, to the extent that the CDE has to review the academic eligibility application packages and make preliminary recommendations to the advisory committee, there would be costs to the CDE. There could also be additional costs the advisory committee for community notices and overhead (as well as for reimbursed for travel and per diem allowances) to the extent that additional meetings are required. If a charter is determined to be academically ineligible, the process ends and the charter cannot be renewed nor offered any future appeal. To the extent that this is the case, there will likely be state and local administrative savings, and the process will be streamlined. To the extent that the new criteria for eligibility result in denying more charter renewals, however, there may be additional costs to the state if the students attending those charter transfer to traditional district schools. Charter schools are funded less than district schools and, while funding for district school varies by district, charter schools are typically funded at approximately $275 less per pupil than district schools. If the SBE determines a charter school to be academically eligible to apply for renewal, the process goes back to the local level; the authorizing agency can consider renewing the charter. If the charter renewal is then denied, it would still be eligible for appeal to the SBE, as under existing law.