BILL ANALYSIS                                                                                                                                                                                                    �






                         SENATE COMMITTEE ON EDUCATION
                                Carol Liu, Chair
                           2013-2014 Regular Session
                                        

          BILL NO:       SB 344
          AUTHOR:        Padilla
          AMENDED:       April 17, 2013
          FISCAL COMM:   Yes            HEARING DATE:  May 1, 2013
          URGENCY:       No             CONSULTANT:    Kathleen  
          Chavira

           SUBJECT  :  English learners: supplemental funding.
          
           SUMMARY  

          This bill would establish conditions to be met for  
          receiving state supplemental funding for English learners. 

           BACKGROUND  

          Current law provides economic impact aid funding to school  
          districts based on the number of economically disadvantaged  
          pupils and English learners (ELs) enrolled in the school  
          district, and requires the Superintendent of Public  
          Instruction (SPI) to perform specified calculations to  
          determine the amount of this funding to be received by a  
          district each fiscal year.  Districts that have a higher  
          concentration of these pupils receive additional funding.   
          The school district is required to expend these funds or  
          specified programs and activities to support programs and  
          activities designed to assist ELs achieve proficiency in  
          their English language as rapidly as practicable and to  
          support programs and activities designed to improve the  
          academic achievement of ELs and economically disadvantaged  
          pupils.  The district is prohibited from expending these  
          funds at school sites that do not have ELs or economically  
          disadvantaged pupils.  These funds must supplement, and not  
          supplant, existing resources at the school site. (Education  
          Code � 54020-54028)

          Current law specifically requires, as a condition of the  
          receipt of economic impact aid funds, that a school  
          district post online and in an easily accessible location  
          the amount of economic impact aid allocated to the  
          district, the amount used for administrative costs, the  




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          amount expended for EL students and the amount expended for  
          compensatory education in the current and in the prior  
          fiscal year by the district and by each school in the  
          district, and the amount of unexpended aid along with an  
          explanation of why these fund have not been expended.
          (EC � 54029)

          Current law provides that if the Legislature does not enact  
          legislation that continues the bilingual education program  
          (which sunset on June 30, 1987), the funding for that  
          program is required to continue for the general purposes of  
          that program as specified in the sunsetted statutes.   
          Current law requires that funds be disbursed according to  
          identification criteria and allocation formulas for the  
          program in effect on the sunset date and that these funds  
          be used for the intended purposes of the program.  Current  
          law also requires the continuation of parent advisory  
          committees and school site councils and specifically  
          provides that any school receiving Economic Impact Aid  
          (EIA) or Bilingual Education Aid subsequent to the sunset  
          of these programs is required to establish a school site  
          council and that the functions and responsibilities of such  
          advisory committees and school site councils continue.  (EC  
          � 62000-62005.5)

          Current law defines a program of "compensatory education"  
          as an undertaking which is over, above, and in addition to,  
          regular educational programs with the purpose of providing  
          positive stimulation of the intellectual abilities of  
          disadvantaged minors and that embodies a positive plan for  
          the identification of such minors.  (EC � 54403)

           ANALYSIS
           
           This bill  , beginning with the 2014-15 fiscal year,  
          establishes conditions to be met by school districts in  
          order to receive state supplemental funding to serve  
          English learners.  Specifically, it requires that a  
          district:

          1)   Adopt a Masterplan that is:

                    a)             Developed with the input of  
                    teachers, principals, administrators, English  
                    learner advisory committees, school site councils  
                    and parents both district wide and from each  




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                    school.

                    b)             Outlines how these supplemental  
                    funds will be spent at each affected school site  
                    and at the district level.

          2)   Include, but not be limited to, the following in the  
               Masterplan:

                    a)             A requirement that the district  
                    comply with existing law that requires the  
                    posting of specified EIA information on the  
                    district's internet website.

                    b)             A listing of services and  
                    instructional materials categorized by  
                    proficiency levels.

                    c)             The names, position, credential  
                    and authorizations for each district and school  
                    site staff member assigned to English learners.

                    d)             A professional development plan  
                    for district and school site staff and  
                    volunteers.

                    e)             A plan for engaging and involving  
                    parents of English learners in their children's  
                    education.

                    f)             A calendar for release of data, a  
                    plan for monitoring reclassified and long term  
                    English learners, benchmarks for progress, and a  
                    plan for the collection and publication of  
                    relevant data.

          3)   Renew the Masterplan annually, with input from  
               teachers, principals, administrators, English learner  
               advisory committees, school site councils and parents,  
               both district wide and from each school.

          4)   Make the Masterplan easily available to and accessible  
               by the public.

          5)   Establish an English learner advisory committee (ELAC)  
               at each school and at the District level (DELAC) and  




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               that the district level committee be composed of  
               members from the schools' ELACs.

          6)   Require that each school's contribution to the  
               masterplan be submitted to, reviewed, and approved by  
               the school ELAC and that the proposed masterplan be  
               submitted to the DELAC for review and approval.

          7)   Include parents and teachers of English learners on  
               its school site council.

          8)   Makes a number of technical and conforming changes.
           
          STAFF COMMENTS  

           1)   Economic Impact Aid (EIA)  .  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. 

               As part of the February 2009 Budget package, most  
               categorical programs were placed into three categories  
               or tiers. School districts with categorical programs  
               in "Tier III" were allowed to use the funding  
               associated with about 40 categorical programs for any  
               education purpose.  This flexibility is extended  
               through the 2014-15 fiscal year.  The EIA program is  
               one of only six categorical programs that was not  
               provided this flexibility.

               This bill proposes conditions for receipt of state  
               supplemental funding (like EIA) for the purpose of  
               serving EL students, but additionally makes reference  
               to services, materials and staff for purposes of  
               serving compensatory education students.   
               Notwithstanding the importance of ensuring the  




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               appropriate use of EIA funds for purposes of  
               compensatory education, and the likely overlap between  
               these student populations, these references seem to  
               confuse the intent of the bill. 
               Staff recommends the bill be amended to delete the  
               references to compensatory education.  However,  
               deletion should not be interpreted to prohibit the  
               expansion of the bill to be amended in the future to  
               include conditions for receipt of supplemental funds  
               for the purpose of serving compensatory education  
               students. 

               In addition, while it may be reasonable to request  
               information on the types and training of school site  
               staff designated to support English learners (ELs),  
               it's unclear what purpose is served by requiring the  
               names of these individuals.  Could this information be  
               used in a manner that goes beyond ensuring that ELs  
               are being served to potentially compromising sensitive  
               personnel matters or decisions?  Staff recommends the  
               bill be amended to delete the requirement that the  
               plan include the names of individuals. 

           2)   Clarification of intent  .  As currently drafted, the  
               bill refers to supplemental funding but does not  
               specifically refer to Economic Impact Aid (EIA) funds.  
                According to the author, it is the intent that the  
               conditions and accountability outlined in the bill  
               apply to the use of EIA funding, but also that these  
               conditions be met regardless of the funding formula  
               adopted by the state for distributing funds to serve  
               English learners.  In order to accomplish the author's  
               intent, staff recommends the bill be amended on Page  
               3, line 5, to clarify that these conditions apply to  
               the receipt of any state supplemental funding for  
               purposes of serving English learners, including, but  
               not limited to, Economic Impact Aid.

           3)   Governor's Local Control Funding Formula (LCFF)  .  As  
               part of the 2013-14 Governor's Budget, the  
               administration proposes to restructure the existing  
               K-12 finance system and eliminate over 40 existing  
               programs while also repealing, what the administration  
               determines are countless "discretionary" provisions of  
               statute, while implementing a new formula known as the  
               Local Control Funding Formula (LCFF). 




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               The LCFF would consolidate the vast majority of state  
               categorical programs and revenue limit apportionments  
               into a single source of funding (12 categorical  
               programs, including Special Education, Child  
               Nutrition, Preschool, and After School programs, would  
               be excluded).  The LCFF proposal would also eliminate  
               the statutory and programmatic requirements for almost  
               all existing categorical programs - the programs would  
               be deemed "discretionary" and programs in any of these  
               areas would be dependent on local district discretion.  
                To the extent that the LCFF or a modified version of  
               it is adopted as part of the budget, the majority of  
               currently required categorical activities would be  
               left to local districts' discretion.  Therefore, the  
               changes proposed by this bill could be diluted,  
               eliminated, rendered obsolete or discretionary at the  
               local level. 

           4)   LCFF and ELs  .  In lieu of EIA, the Governor's proposal  
               specifically provides for a supplemental grant equal  
               to 35 percent of the base grant provided for each EL,  
               economically disadvantaged or foster youth pupil, and  
               for schools with ELs, economically disadvantaged and  
               foster youth enrollment in excess of 50 percent of  
               their total enrollment, a concentration grant equal to  
               35 percent of the base grant for each student above  
               the 50 percent threshold.  The Governor's proposal  
               would cap the amount of time an English learner (EL)  
               student could generate supplemental funds at five  
               years. 

               According to a Legislative Analyst's Office analysis,  
               the Governor's proposal provides districts with  
               greater discretion over how to use these funds  
               compared to current requirements for Economic Impact  
               Aid (EIA) funds.  Districts would be required to use  
               the supplemental funds to meet the needs of their ELs  
               and low-income student groups, but they would have  
               broad flexibility in doing so.  Current law is more  
               stringent in that the state requires and monitors that  
               districts use EIA funds to provide supplemental  
               services for the targeted student groups beyond what  
               other students receive. 

               This bill proposes even more extensive accountability  




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               for the existing  system of state supplemental funding  
               for EL students.  As amended by staff comment #2,  
               these more extensive accountability measures would be  
               applicable to any funding formula adopted by the  
               state.

           5)   Existing accountability for EL specific funding  .   
               Federal and state laws require the California  
               Department of Education to monitor implementation of  
               categorical programs operated by local educational  
               agencies.  LEAs are responsible for creating and  
               maintaining programs which meet requirements and are  
               monitored for compliance with federal and state  
               categorical programmatic and fiscal requirements as  
               well as instructional services and programs provided  
               to ELs, physical education, and educational equity. 

               a)        Compliance Monitoring.  The Federal Program  
                    Monitoring (FPM) office at CDE coordinates  
                    reviews through a combination of data and  
                    document review and on-site visits.  LEAs are  
                    assigned to one of four review cycles.  LEAs may  
                    be selected for an on-site or online monitoring  
                    every two years. In identifying LEAs for reviews,  
                    several factors are considered, including  
                    compliance history, academic achievement, program  
                    size, and fiscal analysis.  At the end of each  
                    review, the state will complete a report of  
                    findings that informs the school, district, or  
                    county office how to correct the findings.

               b)        Title III. Federal funding is provided under  
                    Title III for the purpose of ensuring that EL  
                    students attain English proficiency and meet the  
                    same challenging academic content and achievement  
                    standards that other students are expected to  
                    meet.  LEAs are required to use these funds to  
                    implement language instruction educational  
                    programs designed to help limited English  
                    proficient students achieve the standards and  
                    school districts are required to hold EL students  
                    to the same academic content and achievement  
                    standards established for all children.  Funds  
                    must be used to provide high-quality language  
                    instruction educational programs that are based  
                    on scientific research that demonstrates the  




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                    effectiveness of the programs in increasing  
                    English proficiency and student academic  
                    achievement in the core academic subjects, and  
                    must also provide high-quality professional  
                    development to staff.  Additional, local  
                    educational agencies (LEAs) must implement an  
                    effective means of outreach to parents and inform  
                    them how they can be active participants in  
                    assisting their children to learn English,  
                    achieve at high levels in core academic subjects,  
                    and meet the same standards that all children are  
                    expected to meet.  Recipients of these funds are  
                    accountable for meeting three annual measurable  
                    achievement objectives (AMAOs) for English  
                    learners.  The first AMAO relates to making  
                    annual progress on the California English  
                    Language Development Test (CELDT), the second  
                    relates to attaining English proficiency on the  
                    CELDT, and the third AMAO relates to meeting  
                    Adequate Yearly Progress (AYP) by the English  
                    Learner subgroup at the LEA level. If a Title III  
                    recipient fails to meet the growth targets for  
                    two consecutive years, the LEA must develop an  
                    improvement plan that specifically addresses the  
                    factors that prevented the LEA from achieving the  
                    AMAOs. If the LEA fails to meet the AMAOs for  
                    four consecutive years, the state is required to  
                    require the LEA to modify its curriculum,  
                    program, and method of instruction or determine  
                    whether the recipient will continue to receive  
                    these funds.
                     
           6)   Does this bill go far enough  ?  In spite of the  
               existing accountability requirements outlined in staff  
               comment #4 recent events demonstrate a disturbing  
               pattern of questionable implementation of services to  
               support English learners.  Among these are:

               a)        Most recent lawsuit.  In April 2013, the  
                    ACLU filed suit against the state of California  
                    to require the state to ensure the delivery of  
                    English learner services to children who need it.  
                     The ACLU alleges that, based on a data posted to  
                    the California Department of Education website in  
                    January 2013, 251 districts collectively reported  
                    that more than 20,000 EL students receive no  




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                    English language instructional services and that  
                    the state has disbursed EIA funds to districts  
                    that report denying English language  
                    instructional services to EL students.

               b)        PPIC Report 2012.  In a September 2012  
                    report, California's English Learner Students,  
                    researchers noted that state funding for  
                    supplemental services to ELs is not predicated on  
                    meeting annual accountability targets and that  
                    improving the efficiency of EL spending requires  
                    a clear understanding of how EL dollars are spent  
                    within districts and schools, and then linking  
                    spending to outcomes. 

               c)        Doe 1 et al. v. State of California et al.   
                    On May 30, 2012, the American Civil Liberties  
                    Union (ACLU) filed suit against the Dinuba  
                    Unified School District and the State of  
                    California, charging that the school district and  
                    state were violating students' fundamental right  
                    to equal educational opportunity.  The lawsuit on  
                    behalf of Dinuba parents and teachers "sought to  
                    stop this Central Valley school district from  
                    denying basic instruction in reading to 1st and  
                    2nd grade English learners and from using a  
                    fundamentally flawed and unproven method of  
                    teaching English to them."  A settlement  
                    agreement with the Dinuba Unified School District  
                    was reached in August 2012.

               This bill begins the expansion of accountability by  
               focusing on expanded efforts to develop and  
               demonstrate a specific plan for serving ELs with  
               supplemental state funds that include the engagement  
               of parents, teachers and staff.  But should  
               accountability go further?  Is requiring plans and  
               local advisory and approval structures sufficient for  
               meeting the state's obligations under federal, state,  
               and case law?  Should the state require specific  
               outcomes be reported and outside intervention be  
               required, similar to that outlined under Title III, if  
               plans are not implemented or outcomes are not  
               achieved?

               The committee may wish to consider whether the bill  




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               should be amended to provide more extensive  
               accountability for the use of these funds to  
               effectively serve English learners (ELs) than is  
               currently contained in the bill.

           7)   Related legislation
                
               SB 223 (Liu) heard and passed by this committee by a  
               vote of 9-0 on April 3, 2013,  proposes the  
               continuation of the current flexibility extended to  
               districts beyond 2014-15, but requires that districts  
               apply for this flexibility and agree to preconditions  
               and must agree to demonstrate various goals, including  
               but not limited to, significant progress toward pupil  
               proficiency in the state standards, narrowing of  
               achievement gaps, fiscal solvency, and improvement in  
               career technical preparedness.  Consistent with the  
               current flexibility structure, Economic Impact Aid  
               (EIA) is excluded from flexibility and districts are  
               still required to spend this supplemental funding on  
               ELs and low-income students.  In addition, the  
               preconditions to be met by districts for districts  
               includes that the standards based curriculum for ELs  
               is cognitively complex, coherent, comprehensive, and  
               standards aligned.  This bill would complement SB 223  
               in that it proposes a separate, more expanded  
               accountability structure for the use of EIA funding  
               that builds upon existing state and federal  
                                                                                         requirements for meeting the needs of ELs. 

               SB 69 (Liu and others) also on the committee's agenda  
               today, proposes an alternative Local Control Funding  
               Formula (LCFF) funding model based upon the Governor's  
               proposal.  It is unclear how this bill would interact  
               with the provisions of SB 69.
           
          SUPPORT  

          American Civil Liberties Union
          California Federation of Teachers
          Californians Together
          Families in Schools

           OPPOSITION

           None received. 




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