BILL ANALYSIS                                                                                                                                                                                                    Ķ



                                                                  SB 754
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          SENATE THIRD READING
          SB 754 (Padilla)
          As Amended  August 6, 2012
          Majority vote 

           SENATE VOTE  :Vote not relevant  
           
           EDUCATION           9-0         APPROPRIATIONS      17-0        
           
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          |Ayes:|Brownley, Norby, Ammiano, |Ayes:|Gatto, Harkey,            |
          |     |Buchanan, Butler, Eng,    |     |Blumenfield, Bradford,    |
          |     |Grove, Halderman,         |     |Charles Calderon, Campos, |
          |     |Williams                  |     |Davis, Donnelly, Fuentes, |
          |     |                          |     |Hall, Hill, Cedillo,      |
          |     |                          |     |Mitchell, Nielsen, Norby, |
          |     |                          |     |Solorio, Wagner           |
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           SUMMARY  :  Requires as a condition of the receipt of economic 
          impact aid (EIA) funds, a school district to post in an easily 
          accessible location on its Internet Web site data related to EIA 
          funding for purposes of budget transparency.  Specifically,  this 
          bill  requires posting the amounts of EIA funds: 

          1)Allocated to the school district in that fiscal year.

          2)Used by the school district for administrative costs in that 
            fiscal year.

          3)Expended for limited-English-proficient pupils in that fiscal 
            year and the prior fiscal year by the school district and by 
            each school within the district.

          4)Expended for state compensatory education in that fiscal year 
            and the prior fiscal year by the school district and by each 
            school within the district.

          5)Unexpended and an explanation of why these funds have not been 
            expended.

           EXISTING LAW  :

          1)Provides economic impact aid funding to school districts based 








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            on the number of economically disadvantaged pupils and English 
            learners (ELs) enrolled in the school district. 

          2)Requires the Superintendent of Public Instruction to perform 
            (SPI) specified calculations to determine the amount of EIA a 
            school district receives for a fiscal year and requires each 
            school district to expend these funds for specified programs 
            and activities.

          3)Requires a school district to expend EIA funds to serve and 
            assist ELs and economically disadvantaged pupils and prohibits 
            expending those funds at schoolsites that do not have ELs or 
            economically disadvantaged pupils.

          4)Requires a school to use EIA funds to support programs and 
            activities designed to assist ELs achieve proficiency in the 
            English language as rapidly as practicable and to support 
            programs and activities designed to improve the academic 
            achievement of ELs and economically disadvantaged pupils.

          5)Requires EIA funds received by school districts to supplement, 
            and not supplant, existing resources at the schoolsite.

           FISCAL EFFECT :  According to the Assembly Appropriations 
          Committee, annual General Fund/Proposition 98 costs, likely 
          between $200,000 and $400,000, to local education agencies 
          (LEAs) to meet the requirements of this bill.  There were 1,015 
          LEAs that received EIA funding in the 2011-12 Fiscal Year.  
          Actual costs will depend on the number of schools within each 
          district that receive EIA funding.  

           COMMENTS :  EIA is a state categorical program that provides 
          supplemental funds to support additional programs and services 
          for ELs/limited English proficient (LEP) pupils and compensatory 
          education services for educationally disadvantaged students.  
          The EIA/LEP support programs and activities to assist ELs 
          achieve proficiency in the English language as rapidly as 
          practicable and to support programs and activities to improve 
          the academic achievement of English learners.  EIA/State 
          Compensatory Education (EIA/SCE) support programs and activities 
          designed to assist educationally disadvantaged students achieve 
          state standard proficiency. 

          The author states, "Current law lacks transparency in school 








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          budgets that would allow policymakers, students, parents, 
          teachers and communities to understand how schools and districts 
          provide services to English Learners." 

          This bill requires as a condition of the receipt of EIA funds, 
          school districts to post in an easily accessible location the 
          information about EIA allocations and expenditures at the school 
          district and school site level.  

          Pursuant to Title 5 Regulations, school districts receiving EIA 
          funds are required to maintain separate accounting records that 
          document the total amount of EIA funds spent.  It shall be noted 
          that the purpose of EIA funds is to provide supplementary 
          services to ELs and economically disadvantaged students.  
          Without also having information about the main budget and/or 
          other sources of funding for the student populations that EIA is 
          designed for, it is unclear whether the EIA budget in isolation 
          will provide useful information to parents and the public.  
          Furthermore, the information may not necessarily be presented in 
          a manner that is easily comprehensible.  However, others may 
          argue that this bill takes a step towards increasing budget 
          transparency, which in turn will lead to a greater level of 
          understanding on how education dollars are spent.  
           
           There appears to be a level of parent and public involvement and 
          input in the development of an expenditure plan for EIA funds.  
          Current law requires the school site council (SSC) to develop a 
          Single Plan for Student Achievement (SPSA) for consolidated 
          application programs, including EIA, operated at the school or 
          in which the school participates.  The SSC must approve the 
          plan, recommend it to the local governing board for approval, 
          monitor implementation of the SPSA, and evaluate the results. At 
          least annually, the SSC must revise the SPSA, including proposed 
          expenditures of funds allocated to the school through the 
          consolidated application, and recommend it to the local 
          governing board for approval.

          EIA reporting requirement on court schools:  Starting with the 
          2010-11 fiscal year, juvenile court schools (JCS) are also 
          eligible for EIA funds, and the Budget Act requires, as a 
          condition of receipt of funds, JCSs to report on the use of 
          funds and the number of pupils served no later than September 30 
          of each year.  However, this existing requirement applies only 
          to court schools.  








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           Analysis Prepared by  :    Marisol Aviņa / ED. / (916) 319-2087 


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