BILL ANALYSIS                                                                                                                                                                                                    �




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          Date of Hearing:   August 21, 2013

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                   SB 344 (Padilla) - As Amended:  August 15, 2013 

          Policy Committee:                             Education Vote:7-0

          Urgency:     No                   State Mandated Local Program:  
          Yes    Reimbursable:              Yes

           SUMMARY  

          This bill adds several requirements to the Local Control Funding  
          Formula (LCFF) related to parental involvement and programmatic  
          and fiscal accountability for the purpose of ensuring the  
          academic needs of English learner (EL) pupils are being met.   
          Specifically, this bill: 

          1)Requires each local education agency's (LEA) fiscal audit to  
            determine whether LCFF expenditures were in compliance with  
            State Board of Education (SBE) adopted regulations regarding  
            supplemental and concentration grant funds.  Further requires  
            county offices of education (COEs), as part of their review of  
            an LEA's adopted budget, to determine whether LCFF  
            expenditures were in compliance with SBE adopted regulations.   


          2)Prohibits SBE adopted regulations concerning schoolwide LCFF  
            supplemental and concentration grant funds from being more  
            restrictive than the federal No Child Left Behind (NCLB) Title  
            I (poor/needy pupils) requirements governing schoolwide funds.  
             

          3)Requires LEAs to expend carryover state Economic Impact Aid  
            (EIA) program funding (poor/needy and EL pupils) only for the  
            purposes required under the EIA program.  

           FISCAL EFFECT  










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          Increased annual GF/98 state reimbursable mandated costs, likely  
          in excess of $3 million, to LEAs to implement the requirements  
          of this measure, including providing EL specific information in  
          each LEA's Local Control Accountability Plan (LCAP) -  
          expenditure, instructional, and achievement information.  This  
          cost may be offset if the requirements of this measure are  
          determined to be consistent with federal law and therefore, are  
          not eligible for reimbursement.   

          The costs associated with this measure are in addition to the  
          annual GF/98 state reimbursable mandated costs LEAs will incur  
          for the accountability requirements under LCFF - developing  
          plans, reporting data, convening committees for comment and  
          input, etc.  In the initial years of LCFF implementation, the  
          GF/98 state reimbursable mandated costs will likely be in  
          millions to tens of millions to LEA to meet the accountability  
          requirements.  These costs will likely be reduced in future  
          years as LEAs will only likely be revising plans.  

           SUMMARY CONTINUED
           
          4)Adds the following requirements to an LEA LCAP: 

             a)   A program budget implementing the specific actions of  
               the LCAP's goals for the initial fiscal year covered by the  
               plan, including a budget specific to services provided to  
               pupils eligible for free/reduced price meals, EL pupils,  
               foster youth pupils, and pupils redesigned as fluent  
               English proficient (FEP).  
             b)   The expenditures necessary to implement the goals  
               identified in an LEA LCAP.  
             c)   Requires information on the extent to which teachers,  
               administrators, and staff receive professional development  
               or participate in induction programs be added to LCFF state  
               priorities.  Further requires LEAs to include schoolsite  
               information on expenditures and how pupils are meeting  
               state priorities as part of the annual update to their  
               LCAPs.  

          5)Requires the districtwide EL parent advisory committee to  
            advise the governing board of a school district on specified  









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            tasks related to EL pupils, including the development of an EL  
            master plan, instructional objectives, and administration of  
            the annual language census.  

          6)Adds the following elements to the SBE adopted template to be  
            used by LEAs in developing their LCAP: 

             a)   The NCLB requirements related to the single plan for  
               student achievement, including the requirements of federal  
               Title III: Language Instruction for EL pupils.  
             b)   A description of how the LCFF supplemental and  
               concentration grant funds will be used to meet annual  
               measurable objectives (AMOs), Common Core Standards and ELD  
               standards.  
             c)   A listing of services and programs providing access to a  
               full curriculum for EL pupils, as specified, including a  
               description of the ELD program and instructional materials  
               used.    
             d)   A description of how professional development programs  
               assist in meeting federal Title III AMOs and the monitoring  
               procedures used for FEP pupils.  

          7)Requires the SPI to provide training to individuals reviewing  
            an LEA's LCAP for compliance with expenditure requirements.   
            Further requires the expenditures included in an LEA's annual  
            budget to implement the specific actions/strategies included  
            in the LCAP for EL pupils, foster youth pupils, and FEP  
            pupils.  

          8)Requires an LEA to implement a remedy to a complaint filed  
            regarding the LCFF to be implemented by the beginning of the  
            school year or during the school year, as specified.  

          9)Adds the subgroup of FEP pupils to the Academic Performance  
            Index (API) and requires parents to be included in the  
            development of fiscal standards and criteria used LEAs to  
            develop their annual budgets.   

           COMMENTS  

           1)Background  .  The Local Control Funding Formula (LCFF), enacted  









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            as part of the 2013 Budget [AB 97 (Budget Committee), Chapter  
            47, Statutes of 2013], established a new funding formula for  
            K-12 education to be phased in over seven years.  The formula  
            consists of three major components: (a) base grant (general  
            purpose funding), (b) supplemental grant (funding for English  
            learner (EL) poor/needy pupils, and foster youth -  
            approximately $1,500<1> per pupil), and (c) a concentration  
            grant (additional funding for those LEAs with a high number of  
            EL, poor/needy pupils, and foster youth).  

            The LCFF is intended to provide LEAs with maximum flexibility  
            and as such, there are minimal expenditure requirements tied  
            to the funding LEAs receive.   Therefore, the LCFF  
            consolidated the funding for the majority of the state's  
            categorical programs, including the EIA program, which  
            provided school districts with additional funding for EL and  
            poor/needy pupils.  The rationale for this program  
            consolidation was to allow LEAs to make their own decisions  
            based on their pupils' needs regarding which programs to  
            establish that enable pupils to succeed academically.  For  
            example, if a school district chose to provide specialized  
            training to teachers of EL students in grades K-3, it can do  
            so without regard to programmatic or funding requirements.   
            Under LCFF, LEAs are no longer tied to program requirements in  
            exchange for funding they receive.

           2)Purpose .  There are 1.4 million EL pupils enrolled in  
            California schools. This represents 22.3% of all children  
            enrolled in school. According to SDE, 35% of ELs are enrolled  
            in kindergarten.  Overall, EL pupils academically underperform  
            most other pupil subgroups.  For example, the 2012 API  
            statewide average score for all subgroups (i.e., poor/needy,  
            African American, Caucasian, etc.) and all grade levels was  
            791 out of 800.  In comparison, the statewide average for EL  
            pupils was 719.  

          ---------------------------
          <1>The supplemental per pupil amount equals 20% of a LEAs base  
          grant.  This number is based on an average base grant of $7,557  
          for grades K-3.  The supplemental per pupil grant amount may  
          increase or decrease depending on the grade level base grant  
          amount.  








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            Supporters of this measure argue the state has a legal and  
            moral responsibility to ensure EL pupils have access to  
            quality educational programs, particularly given the higher  
            rate of funding (approximately $1,500 per EL pupil) provided  
            to LEAs based on the number of EL pupils enrolled in their  
            schools under LCFF.  Specifically, supporters argue federal  
            and state law requires educational opportunities, including  
            those related to language proficiency, are afforded to EL  
            pupils and the state is required to provide programs that  
            reduce the language barriers for these pupils.  

            According to the author, " In 2013, the American Civil  
            Liberties Union (ACLU) and the Asian Pacific American Legal  
            Center found that more than 20,000 [ELs] across 251 school  
            districts, more than a quarter of California school districts,  
            have not been receiving any services to help them learn  
            English. The ACLU asserted that the lack of services violates  
            legal mandates and is counter to studies showing that [EL  
            pupils] denied those services are more likely to fail or drop  
            out of school.

            "In 2012, the Public Policy Institute of California released a  
            report on the status of California's English Learner system.  
            The report notes that the federal funding for [EL pupils]  
            comes with accountability requirements. However, state funding  
            for supplemental services [ELs] is not based on meeting annual  
            accountability targets."

            This bill adds several requirements to the LCFF related to  
            parental involvement and programmatic and fiscal  
            accountability for the purpose of ensuring the academic needs  
            of EL pupils are being met.  

           3)LCFF Accountability for EL pupils  .  Under LCFF, LEAs are  
            required to develop and adopt LCAPs, which require the  
            reporting of detailed pupil achievement data and information  
            related to the expenditure of their LCFF allocations.  Statute  
            also requires the SBE to adopt a template for use by LEAs in  
            developing LCAPs.  With regard to EL pupils, an LEA is  
            required to include the following information/data in their  
            LCAP: 









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             a)   The annual goals to be achieved according to state  
               priorities for EL pupils.  
             b)   The programs and services established that will allow EL  
               pupils to access the Common Core Standards and the English  
               language development standards.  
             c)   How the LEA will promote parental involvement for EL  
               pupils. 
             d)   The percentage of EL pupils who make progress toward  
               English proficiency, as specified.  
             e)   The EL reclassification rate.    

            Likewise, a school district is required to establish an EL  
            parent advisory committee to provide advice on the  
            requirements of LCFF, if their enrollment includes at least  
            15% EL pupils and the district enrolls at least 50 EL pupils.   
            This committee is required to review and comment on an LEA's  
            LCAP prior to its submission to the county superintendent of  
            schools for approval, as specified.  

            This bill proposes to expand and add to the LCFF  
            accountability requirements referenced above.  For example,  
            the bill proposes to require information on the types of  
            instructional programs being provided to EL pupils.  

           4)Expenditure requirements of LCFF supplemental grant funds  .   
            Statute requires an LEA or charter school to increase or  
            improve services for EL pupils, poor/needy pupils, and foster  
            youth "in proportion to the increase in funds apportioned on  
            the basis of the number and concentration of [these pupils] in  
            the LEA or charter school."  Existing law also authorizes an  
            LEA to use these funds for districtwide, countywide, or  
            charterwide purposes in a manner that is no more restrictive  
            than federal NCLB Title I: poor/needy pupils.  Current law  
            also authorizes the SBE to adopt emergency regulations for the  
            purposes of implementing this section.  

            Prior to the enactment of LCFF, the EIA program allocated  
            approximately $950 million GF/98 annually to LEAs based on the  
            number of EL and poor/needy pupils - approximately $330 per  
            pupil.  LEAs were required to expend EIA funding on these  









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            pupils and statute required LEAs to demonstrate how this  
            expenditure requirement was met.  

            Supporters of this measure argue LCFF does not contain  
            sufficient expenditure reporting information with regard to an  
            LEA's use of supplemental and concentration grant funds.  This  
            bill attempts to address this concern.  

           5)Opponents  .  Opponents of this measure (California School  
            Boards Association, California School Administrators  
            Association, California Teachers Association, etc.) are  
            concerned this measure predisposes that accountability issues  
            related to EL pupils will not be sufficiently addressed by the  
            SBE.  Essentially, they argue this measure is premature in  
            establishing new requirements before the SBE has had time to  
            act.  The SBE is required to develop an LCAP template by March  
            31, 2014.            

           Analysis Prepared by  :    Kimberly Rodriguez / APPR. / (916)  
          319-2081