BILL ANALYSIS Ó AB 377 Page 1 Date of Hearing: April 17, 2013 ASSEMBLY COMMITTEE ON EDUCATION Joan Buchanan, Chair AB 377 (Grove) - As Introduced: February 14, 2013 SUBJECT : Charter schools: average daily attendance: independent study: online charter schools SUMMARY : Authorizes a virtual or online charter school to claim independent study average daily attendance (ADA) for pupils who are residents of the county in which the apportionment is reported or who are residents of any other county in the state. EXISTING LAW 1)Allows charter schools to claim independent study ADA only for pupils who are residents of the county in which the apportionment claim is reported or who are residents of an immediately adjacent county. 2)Defines a "virtual or online charter school" as one in which at least 80% of teaching and student interaction occurs via the Internet (California Code of Regulations, Title V). 3)Requires a virtual or online charter school to demonstrate the following in order to be funded: a) The school has met its overall and subgroup API growth targets; b) Instructional expenditures are at least 85% of the overall school budget and at least 25% is spent on technology that directly benefits students and teachers and results in improved student achievement; c) Computer-based instruction and assessment is provided to each pupil and includes the use of an online instructional management program, as specified; d) Teachers are provided with specified technology tools and print media; e) All pupils are provided an individualized learning plan that is based on initial testing and that is monitored either remotely or in person by the teacher to evaluate pupil progress; f) All pupils are provided access to a computer, Internet AB 377 Page 2 service, printer, monitor, and standards-aligned materials; g) All pupils eligible for special education supports and services receive those supports and services in accordance with their individualized education plan; and h) Charter school admission practices will not favor high performing pupils or recruit a pupil population that is of a higher socioeconomic group or lower racial or ethnic representation than the general population of the county or counties served. FISCAL EFFECT : Unknown COMMENTS : This bill removes the restriction that virtual charter schools serve only pupils within the county or in an adjacent county, thereby allowing virtual charter schools to enroll pupils statewide. Virtual schools underperform "brick and mortar" schools. The use of online instruction has grown in recent years, but there have been few well-controlled studies of its effectiveness with K-12 students. This is the main finding from a review of the research reported by the U. S. Department of Education (USDOE) in September 2010 ("Evaluation of Evidence-Based Practices in Online Learning: A Meta-Analysis and Review of Online Learning Studies"). The USDOE report contains the findings of a meta-analysis of research on online learning, which concludes that "on average, students in online learning conditions performed modestly better than those receiving face-to-face instruction." However, the report cautions against generalizing this finding to the K-12 population, because only five of the 45 studies in the analysis involved K-12 instruction. (The others involved medical training, higher education, and other non-K-12 instruction.) All of the five K-12 studies involved blended instruction, in which online learning is combined with face-to-face instruction. Because blended instruction often includes additional instructional time, the positive effects observed with this approach may be the result of the additional time on task, and cannot be attributed to the media, per se, according to the USDOE report. More recent studies indicate online instruction alone is not as effective as regular classroom instruction: A 2011 study of charter school performance in Pennsylvania by the Center for Research on Education AB 377 Page 3 Outcomes (CREDO) at Stanford University found that each of that state's 8 online charter schools ("cyber schools") significantly underperformed brick and mortar schools and regular (non-virtual) charter schools in reading and math. A review of virtual schools in Wisconsin by the Gannett Wisconsin Media Investigative Team found that students receiving online instruction "often struggle to complete their degrees and repeat grades four times as often as their brick-and-mortar counterparts," and they "trail traditional students in every subject but reading." A 2011 report from the Office of the Legislative Auditor in Minnesota reported that full-time online students were more likely to completely drop out of school and made less progress on state standardized math tests than students in traditional schools. A 2011 report from the Ohio Department of Education rated only three of Ohio's 27 virtual schools as "effective" or "excellent." A 2006 performance audit by the Colorado Department of Education of that state's virtual schools found that, "in the aggregate, online students performed poorly on the CSAP (Colorado State Assessment Program) exams and had higher repeater, attrition, and dropout rates." The Florida Virtual Academy, a statewide virtual school, reports that 81% of its students who complete their courses receive a passing grade. However, the Tampa Bay Times reports that the Virtual Academy's records show that two-thirds of students who enroll in a course don't finish it. When dropouts are included, the actual pass rate is 28%. The Times was unable to get Virtual School Florida Comprehensive Assessment Test scores from either the Virtual School or the Florida Department of Education. The ADA-based system of school finance may not be appropriate for virtual schools. Schools are funded on the basis of average daily attendance (ADA). This is sometimes referred to as "paying for student seat time," but this is a mischaracterization. In fact, schools are funded largely for the time teachers and other school employees need to provide AB 377 Page 4 instruction, instructional support, and other service. ADA is a proxy for this, because the time that students spend in attendance is the time they are receiving services. "Attendance" at a virtual school, or the amount of time a student spends online, bears no relationship to the time teachers and other school employees spend to provide the online instructional experience. The committee may wish to consider whether a virtual school, which, compared to a traditional school, has far more students per employee; negligible facilities costs; and no expenses for services such as transportation, food service, or extracurricular activities, should receive the full ADA level of funding. The Florida Virtual School, which is the largest state-funded online K-12 school in the nation, has a budget of $166.3 million, enrolls 130,000 students, and has nearly 1,500 employees, according to the Tampa Bay Times. Accordingly, the staffing ratio is about 86 students per employee, and funding is nearly $111,000 per employee and $1,280 per student. This bil l would provide funding to California's virtual charter schools at an average rate of about $8,200 per student. Arguments in support . The author's office argues that the growth of virtual schools in California is hindered by numerous rules and regulations. A major obstacle is applying rules for independent study to virtual schools, which prevents a virtual charter school from enrolling students outside of its own county or adjacent counties. Related legislation. Prior legislation allowing districts to claim apportionment ADA for online instruction includes AB 2027 (Blumenfield) in 2010, which died in the Senate Appropriations Committee; and AB 802 (Blumenfield) in 2011, which died in the Assembly Appropriations Committee. AB 644 (Blumenfield, Chapter 579, Statutes of 2012) was amended to allow ADA funding only for synchronous instruction, subject to specified conditions. AB 342 (Blumenfield), which is pending in the Assembly Education Committee, allows all school districts to claim apportionment ADA for online courses. REGISTERED SUPPORT / OPPOSITION : Support AB 377 Page 5 One individual Opposition None received Analysis Prepared by : Rick Pratt / ED. / (916) 319-2087