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
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          ____
          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.
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          ____
                            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
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          ____

          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) 








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          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, 








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          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.