BILL ANALYSIS Ó Senate Appropriations Committee Fiscal Summary Senator Christine Kehoe, Chair SB 1458 (Steinberg) - School Accountability: Academic Performance Index (API). Amended: As introduced Policy Vote: Education 7-0 Urgency: No Mandate: Yes Hearing Date: May 24, 2012 Consultant: Jacqueline Wong-Hernandez SUSPENSE FILE. Bill Summary: SB 1458 reduces the value of test scores in the constitution of a school's API to no more than 40%, authorizes the incorporation of additional measures, deletes the decile ranking, and authorizes a program of locally convened school school quality review panels. Fiscal Impact: Direct state costs: $200,000 - $250,000 in one-time costs to the state Department of Education (CDE) to research and implement data indicators for career and college readiness, incorporate indicators into the API, and to incorporate the new data collection into CALPADS, as well as additional meetings of the Public School Accountability Act (PSAA) advisory committee. Cost pressure: Substantial cost pressure for the Superintendent of Public Instruction (SPI) to develop and implement the school quality review program that is authorized by this bill. Depending on the design of quality reviews, they would likely involve substantial state and local staff time to visit and evaluate schools. Impact on schools: Unknown fiscal impact on individual schools. Certain funding is tied to API scores, as is Adequate Yearly Progress (AYP), and charter schools are evaluated for renewal and revocation based in part on API scores. Changing the constitution of the API score will impact all schools, but costs or savings at the local level will vary. Background: California established the PSAA in 1999 to measure academic performance and growth. The API is a single number, ranging from 200-1,000, that reflects a school's (and its SB 1458 (Steinberg) Page 1 subgroups') performance on statewide tests. The API is an improvement model that compares school and subgroup API scores from year to year. School ranking are produced by comparing API scores across the state and with 100 other schools with similar demographics. The API is also used for purposes of calculating AYP, as required by the federal No Child Left Behind Act. Existing law requires the API to consist of a variety of indicators including the results of Standardized Testing and Reporting program (STAR) tests, the California High School Exit Exam (CAHSEE), attendance rates, and high school graduation rates. The results of the STAR tests and the CAHSEE are required to constitute at least 60% of the value of API scores. To date, these test scores have constituted 100% of API scores. Proposed Law: This bill reduces the value of test scores in the constitution of a school's API from at least 60% to no more than 40%, and authorizes the incorporation of additional measures. Specifically, this bill: 1) Authorizes the SPI, with the approval of the State Board of Education (SBE), to incorporate into the API pupil promotion and matriculation rates, as well as measures of pupil preparedness for postsecondary education and career. 2) Requires the SPI, in consultation with the PSAA advisory committee, by March 1, 2013, to report to the Legislature and recommend to the SBE for adoption a method for increasing the emphasis on pupil performance in science and social science in the API. 3) Deletes the requirement that schools be ranked into deciles for specified purposes. 4) Requires the SPI, in consultation with the PSAA advisory committee, by March 1, 2013, to report to the Legislature a plan to streamline and reduce state-mandated middle and secondary school testing, as well as an alternative method in place of decile rank for determining eligibility or preferences for any program that currently uses decile rank as a determining factor. 5) Authorizes the SPI, with the approval of the SBE, to develop and implement a program of school quality review that features locally convened panels to visit schools, observe teachers, interview students and examine student work. 6) Deletes the required SPI annual report on the graduation SB 1458 (Steinberg) Page 2 and dropout rates. Related Legislation: AB 2001 (Bonilla) requires the SPI, in consultation with other entities, to develop and recommend a plan to reduce the time devoted to administering state assessments, eliminate redundant assessments, and eliminate assessments used solely for the purpose of accountability that do not assess the content learned in that school year. AB 2001 is currently in the Assembly Appropriations Committee. Staff Comments: This bill incurs a variety of state costs to implement the required provisions, and creates substantial cost pressure to fund new activities it authorizes to complement those required activities. By reducing the value of test scores in the constitution of a school's API from the current 100% to no more than 40%, this bill functionally requires that other measures be developed and implemented account for the remaining 60% (or more) of the new API score. That de facto requirement will come with new costs, but the exact costs will be determined by the SPI and PSAA advisory committee as they work to determine how the new API will be comprised. The CDE has indicated that, at a minimum, this bill is likely to require six additional meetings of the PSAA advisory committee, which costs $6,000 in travel expenses for each meeting. Meetings are staffed by existing CDE staff. The CDE also estimates needing two additional staff to establish and implement data indicators for career and college readiness, incorporate indicators into the API, as required by the bill. This bill authorizes the SPI to develop and implement the school quality review program that involves locally convened panels visiting schools, interviewing students, observing teachers, and examining student work, for consideration in evaluating a school's success. These activities would be labor-intensive, and it is not clear who would direct such a program and to what degree the CDE would need to staff the program and the evaluation visits. The current API, as the state's indicator of school progress, and as a contributing factor for determining federally-required AYP, is a significant incentive for schools to focus on standardized tests. Changing the API will result in related changes to schools, and to their priorities for resource SB 1458 (Steinberg) Page 3 allocation and focus of energy. The details of those changes, and their accompanying local costs or savings, will depend upon the additional factors decided upon by the SPI and SBE, and the manner in which they are implemented.