BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 377
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          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  








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               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  








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               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  








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          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 
           








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          One individual

           Opposition 
           
          None received
           
          Analysis Prepared by  :    Rick Pratt / ED. / (916) 319-2087