BILL ANALYSIS Ó
SENATE COMMITTEE ON EDUCATION
Carol Liu, Chair
2013-2014 Regular Session
BILL NO: SB 1264
AUTHOR: Pavley
AMENDED: April 2, 2014
FISCAL COMM: Yes HEARING DATE: April 9, 2014
URGENCY: No CONSULTANT:Kathleen Chavira
SUBJECT : Assumption Program of Loans for Education.
SUMMARY
This bill establishes the Educator Excellence Program, an
assumption loan program for up to 6,500 teachers who complete
initial or additional teaching credentials, a qualifying
master's degree in education or teaching, or National Board
Certification and agree to teach full time for four consecutive
years in a subject area designated as an area of teacher
shortage at a school district that has qualified for a local
control funding formula concentration grant, and declares the
Legislature's intent that the program be fully funded
commencing with the Budget Act of 2015.
BACKGROUND
Current law establishes the Assumption Program Loans for
Education Program (APLE), administered by the California
Student Aid Commission (CSAC). This program was established in
1983 to provide loan assumption benefits to credentialed
teachers. The program is designed to increase the number of
qualified teachers in disadvantaged schools or high-priority
subject areas.
The program "forgives" up to $11,000 of college loan debt for a
person who teaches for four consecutive years in a qualifying
school or subject area (paying $2,000 for the first year of
teaching service and $3,000 for each of the next three years of
teaching). Additional loan forgiveness of $1,000 per year for
up to four years is provided for those who teach math, science
or special education in the lowest 60th percentile of API
rankings (for a total of $15,000) and an additional $1,000 is
provided for those who teach math, science or special education
in schools with an academic performance index (API) of 1 or 2
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(for a total of $19,000). The subject area shortages are
annually determined by the Superintendent of Public
Instruction, but the CSAC is required to grant priority for
assumption loan agreements to applicants who obtain teaching
credentials in math, science and special education.
Current law authorizes up to 6,500 agreements subject to
authorization by the Governor and Legislature in the annual
Budget Act. Generally, APLE warrants are given to credential
candidates (e.g. students); the warrants are then redeemed for
the loan assumption benefit once the candidate has earned a
credential and completed a year of eligible teaching. Current
law caps the number of awards for district intern applicants at
100 annually, and authorizes up to 400 awards annually for
credentialed teachers who have not previously participated in
the program and who teach in a public school with an academic
performance index (API) of 1 or 2.
(Education Code § 69612-69615.8)
ANALYSIS
This bill :
1) Establishes the Educator Excellence Program (EEP) (a loan
assumption program for individuals enrolled in teacher
preparation programs, and veteran teachers, who teach in
an area of subject matter shortage at districts that meet
specified criteria) under the administration of the
California Student Aid Commission (CSAC). Eligibility for
the loan assumption program specifically includes:
a) Individuals enrolled in a
postsecondary education program leading to a teaching
credential who have completed the equivalent of 60
semester units, or who are in a program of
professional preparation approved by the Commission
on Teacher Credentialing (CTC).
b) Qualified candidates from another
state who have received an equivalent credential
authorizing service in K-12 grades, as determined by
the SPI.
c) Individuals enrolled in postsecondary
education programs leading to a qualifying master's
degree program in education or teaching, National
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Board Certification, or an additional authorization
or credential. These individuals are additionally
required to have earned a California Professional
Clear Teaching Credential or equivalent from another
state and be a practicing educator.
2) Requires that all participants have agreed to teach for
the equivalent of four consecutive full-time academic
years in a subject area designated as an area of teacher
shortage at a school district that has qualified for a
local control funding formula concentration grant, and
that they meet these requirements through the payment
period.
3) Requires that participants fully and completely satisfy
the teaching requirements within six years of entering the
program or else fully repay the State of California for
all funds awarded through the EEP for loan assumption.
4) Requires the SPI to develop priority areas for EEP awards
at least every three years based on the most current study
conducted by the CTC to determine areas of critical need
in the teaching profession.
5) Requires the CDE solicit the advice of representatives
from postsecondary education institutions, the CTC, school
districts, and county offices of education regarding
proposed rules and regulations.
6) Requires the CSAC to commence loan assumption payments
upon verification that the applicant is qualified because
they:
a) Received a California preliminary credential, or
equivalent from another state, in an area of teacher
shortage as determined by the SPI.
b) Received a qualifying master's degree in
education or teaching, National
Board Certification, or an additional credential, in an
area of teacher
shortage as determined by the SPI.
c) Meet all other requirements of the agreement and
conditions of the
program.
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7) Establishes the terms of a loan assumption granted under
the EEP as follows:
a) Completion of one school year of
classroom instruction - up to $2,000 of loan
assumption.
b) Completion of two consecutive school
years of classroom instruction - up to an additional
$3,000 of loan assumption (total of $5,000 maximum).
c) Completion of three consecutive school
years of classroom instruction - up to an additional
$3,000 of loan assumption (total of $8,000 maximum).
d) Completion of four consecutive school
years of classroom instruction - up to an additional
$3,000 of loan assumption (total of $11,000 maximum).
8) Makes provision for participation by applicants who teach
on a less than full-time basis.
9) Establishes annual reporting requirements for the EEP and:
a) Requires the CSAC to annually report
to the Governor and Legislature on program
participants, as specified, disaggregated by sex,
age, and ethnicity.
b) Requires the SPI to use the reported
data for the purpose of developing priority areas for
EEP awards.
10) Requires the CSAC to enter into 6,500 assumption
agreements each school year, but prohibits the CSAC from
awarding more than the number of loan assumption
agreements authorized in the Budget Act annually.
11) Declares the Legislature's intent that the EEP be fully
funded commencing with the Budget Act of 2015.
12) Makes a number of related declarations and findings,
including that:
a) The CTC, in consultation with the CDE conduct a
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thorough study at least
every three years, as determined by the Superintendent of
Public Instruction, to determine priority areas for EEP
loan assumption
agreements, and outlines the specific contents of the
study.
b) The SPI convene a working group at least every
three years to establish priorities based on the most
recent CTC study.
STAFF COMMENTS
1) Need for the bill . According to the author, California
currently faces a critical shortage of teachers.
According to the Educator Excellence Task Force, 40
percent fewer credentials are being conferred today than
in 2004, and the shortage of teachers is primarily in the
fields of mathematics, special education, and English as a
second language. Additional challenges include the high
cost of living in California where new teachers in
California earn less than the national median wage of
$43,400, and the lack of any support to assist teachers in
supporting advanced teacher training. Although the State
established the APLE program, it does not provide
assistance to teachers pursuing advanced training,
provided no mechanism for guiding the identification of
shortage areas and low performing schools, and funding for
new APLE recipients was eliminated as of the 2012-13
budget. This bill proposes a new program designed to
respond to these shortcomings.
2) Teacher supply in California . Current law requires the
CTC to annually report to the Governor and the Legislature
on the number of teachers who received credentials,
authorizations, permits and waivers. According to the
2011-12 report, California saw a decrease of 12 percent in
the number of newly issued credentials across all three
types of preliminary teaching credentials (i.e., Multiple
Subject, Single Subject, and Education Specialist). The
CTC reports that this is the eighth consecutive year in
which the total number of initial teaching credentials
issued decreased, representing a nearly 30 percent decline
in the past five years in number of initial and new type
teaching credentials issued.
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3) Current status of APLE program . Current law authorizes
the APLE program. However, the Budget Act has not
provided funding for the issuance of new assumption loan
agreements since 2012-13. According to the author, it is
the intent that the EEP replace the existing APLE program,
but build upon the successful elements of that program.
While no new warrants have been issued, awardees may still
be claiming loan payments, necessitating that the existing
statutes remain in place and that a new program with
parallel features be established in a new Education Code
section.
4) Technical amendments . As drafted the bill creates a new
program with some of the features of the existing APLE
program. According to the author, it was the intent to
apply most of the same features of the APLE program to the
EEP. However, several important elements of the program
have been omitted. Staff recommends the bill be amended
to provide for similar processes and criteria for
nomination and evaluation of initially credentialed
applicants, exemptions from requirements under certain
conditions, and to clarify the types of loans eligible for
assumption.
5) Problematic payback provisions . This bill changes the
terms of service to require that they be fully satisfied
within six years of entering the program, and if not,
requires full repayment to the State for all assumption
awards received. The APLE program currently only requires
that a participant retain full liability for student loan
obligations remaining after the last qualifying year of
service. According to the author, these provisions were
intended to apply to veteran teachers, who generally have
more control over their site assignments, in order to
ensure that they meet the full terms of service to realize
the benefit of loan assumption. The payback provisions
were not intended to apply to newly credentialed teachers.
Staff recommends the bill be amended to make this change.
6) Need to clearly codify study and work group requirements .
This bill makes findings and declarations regarding a
study to be conducted by the CTC and used by the SPI to
determine areas of greatest need for purposes of awarding
loan assumption agreements. In addition, findings and
declarations include language requiring the SPI to consult
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with a work group to identify areas of need. Rather than
findings and declarations, the specific study and work
group requirements would seem to be more appropriately
delineated in statute. Staff recommends the bill be
amended to move the reporting and consultation
requirements from findings and declarations and to
statutorily require and outline the report and work group
consultation requirements.
While current law already requires an annual report on the
number of teachers who received credentials,
authorizations, permits and waivers, this report would
require information about the schools at which teachers
are employed. Should the existing report requirements of
the EC § 44225.6 be expanded, or should a new study be
required?
7) Need to clarify authorities . This bill establishes the
EEP under the administration of the CSAC. However, as
currently drafted this bill appears to assign broad and
potentially conflicting responsibilities for granting
awards to the SPI. For example:
a) This bill authorizes the SPI to consider and
approve the assumption of loans for individuals who
obtained an equivalent K-12 credential from another
state. Would this authorize the SPI to approve the
assumption of loans for students who had not applied
for and received a California teaching credential
from the CTC? Staff recommends this language be
deleted from the bill.
b) This bill requires the CSAC to provide loan
forgiveness awards "as determined by the SPI." Is it
the intent that the SPI determine the individual
awards to be granted? Under the APLE program, the
CSAC determines the award recipients based upon the
rubrics and conditions established via statute. This
bill appears to assign administrative responsibility
to the CSAC but awarding authority to the SPI? Does
the SPI or the CDE have the administrative capacity
to review and determine individual awards?
c) On page 5, lines 34-35, this bill requires that
participants "meet qualifying criteria set forth by
the SPI." What qualifying criteria is it envisioned
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that the SPI would be setting beyond those already
delineated in statute?
d) On page 7 lines 34-38, the SPI is required to
consult with specified entities regarding the
adoption of program rules and regulations. However,
the administering agency is designated as the CSAC,
and the adoption of rules and regulations would seem
to more appropriately be in the Commission's purview.
Additionally, the bill requires the CDE to consult
with specified entities to develop rules and
regulations. It appears that this is the work group
the SPI is envisioned to consult with for purposes of
establishing priority areas for the granting of
awards. Staff recommends the bill be amended to
assign this responsibility to the CSAC and to delete
the consultation requirement.
8) Flawed measure ? Notwithstanding the desire to develop a
loan assumption program more aligned with the new local
control funding formula, this bill would award loans based
upon a district level measure. The measure used in the
current APLE program, API, is associated with a specific
school site. While a district may have received a
concentration grant, a teacher could be assigned to a
school site that does not reflect the student population
which generated the grant. Is this the best measure for
ensuring that assumption awards go to teachers serving
high need, low performing schools?
9) Cost impact . As this program is intended to replace the
current APLE program, and given that the number of awards
and the amount of the awards is the same as the APLE, it
is reasonable to assume that costs for this program would
be similar. In 2011-12, the cost to the State for the APLE
program was $5 million.
SUPPORT
American Federation of State, County, and Municipal Employees
OPPOSITION
None received.
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