BILL ANALYSIS Ó
SENATE COMMITTEE ON EDUCATION
Carol Liu, Chair
2013-2014 Regular Session
BILL NO: SB 1264
AUTHOR: Pavley
AMENDED: April 28, 2014
FISCAL COMM: Yes HEARING DATE: April 30, 2014
URGENCY: No CONSULTANT:Kathleen Chavira
NOTE : This bill was previously heard by the committee on April
9, 2014. No vote was taken. This bill has been amended since
it was last heard. The analysis has been updated to reflect
the amendments.
SUBJECT : Education Excellence Loan Assumption Program (EEP).
SUMMARY
This bill establishes the Educator Excellence Program (EEP), an
assumption loan program for up to 6,500 teachers who satisfy
all of the following:
Complete initial or additional teaching credentials, a
qualifying master's degree in education or teaching, or
National Board for Professional Teaching Standards
Certification (NBPTSC).
Agree to teach the equivalent of full time for four
consecutive years:
o In a subject area designated as an area of
teacher shortage.
o At a school site that has a population of
unduplicated English learner, students eligible for
free or reduced-price meals, and foster youth equal
to or greater than the district's unduplicated pupil
count under the Local Control Funding Formula (LCFF).
The bill also declares the Legislature's intent that the
program be fully funded commencing with the Budget Act of 2015.
BACKGROUND
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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
(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) under
the administration of the California Student Aid
Commission (CSAC) and requires the CSAC to:
a) Administer the program.
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b) Adopt rules and regulations,
including, but not limited to, provisions regarding:
i) The period of time during which an
agreement will remain valid.
ii) Reallocation of resources if
participants fail to satisfy the terms of
agreements.
iii) Development of projections for funding
purposes.
c) Develop procedures for the evaluation
and selection of qualified applicants for
participation in the program, in coordination with
the SPI.
2) Requires that participants meet all the following
eligibility criteria prior to selection and during the
payment period, as appropriate:
a) Requires that individuals enrolled in
a postsecondary education program leading to a
teaching credential:
i) Have completed the
equivalent of 60 semester units leading to a
baccalaureate degree at an eligible institution.
ii) Have been admitted to a program of
professional preparation approved by the
Commission on Teacher Credentialing (CTC).
b) Requires that Individuals enrolled in
postsecondary education programs leading to a
qualifying master's degree program in education or
teaching, National Board for Professional Teaching
Standards Certification (NBPTSC), or an additional
authorization or credential:
i) Meet similar requirements,
consistent with graduate and post certification
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programs.
ii) Have earned a California Professional
Clear Teaching Credential or equivalent from
another state and be a practicing educator.
c) Requires that all participants in the EEP agree
to teach:
i) For the equivalent of four consecutive
full-time academic years.
ii) In a subject area designated as an
area of teacher shortage.
iii) At a school district that has
qualified for a Local Control Funding Formula
(LCFF) concentration grant.
iv) At a school site that has a population
of unduplicated English learner, students
eligible for free or reduced-price meals, and
foster youth equal to or greater than the
district's unduplicated pupil count under the
local control funding formula.
d) Requires that the terms of service for
each participant be established as of the year of
entry into the program and requires that participants
fully and completely satisfy the program requirements
within six years of their enrollment date.
e) Authorizes the SPI to designate
additional qualifying criteria that her/she deems
pertinent for participation in the program.
3) Establishes the same eligibility requirements, deferrals,
and exceptions, and postsecondary education institution,
county office of education and school district selection
criteria for participants pursuing initial credentials or
added authorizations as that which exists for the APLE
program.
4) Provides that participants pursuing initial credentials or
added authorizations retain full liability for all
remaining student loan obligations if they fail to redeem
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an agreement for assumption within 10 years of issuance.
5) Requires that participants who were enrolled in programs
leading to a master's degree or NBPTSC fully repay the
State of California for all funds awarded through the EEP
for loan assumption if they fail to redeem an agreement
within six years of its issuance.
6) Authorizes up to 400 loan assumption agreements for
current teachers who meet specified credentialing
requirements and are teaching in school districts at
school sites that meet the eligibility criteria, and
directs the CSAC to develop and adopt regulations for this
purpose by January 1, 2016.
7) Requires the CDE, in consultation with the CTC, to conduct
a study at least every three years, as determined by the
SPI (to be included with a statutorily required CTC report
on the number of teachers who received credentials,
authorizations, permits and waivers) to determine priority
areas for EEP loan assumption agreements and further:
a) Requires the SPI to convene a working
group to establish priorities, based on the most
current study conducted by the CDE.
b) Requires that program awards be
authorized consistent with the program goals,
targeting high need schools consistent with federal
assumption loan program regulations.
c) Requires that the study identify areas
of greatest need and award EEP loan assumption
agreements based on specific criteria.
d) Outlines the specific contents of the
study, to include a list of teaching fields, as
specified, several lists of schools, as specified,
and additional information useful to make
determinations in areas of educational need and
direct new program awards at those areas of program
focus.
e) Requires the SPI to develop priority
areas for the EEP awards on or before January 1 of
the academic year in those years in which the study
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is completed.
f) Requires the CSAC to provide awards
based upon the most current study conducted.
8) 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, NBPTSC, or an additional
credential, in an area of teacher shortage as
determined by the SPI.
c) Meet all other requirements and conditions of
the program.
9) 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).
10) Makes provision for participation by applicants who teach
on a less than full-time basis.
11) Requires the SPI to develop priority areas for the EEP at
least every three years based upon the most current CTC
study, requires the CDE to solicit advice from specified
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entities on proposed rules and regulations, and requires
the SPI to annually provide the CSAC (by December 31) with
school lists similar to those provided by the study
required under Section 69633 of the bill.
12) 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.
13) Establishes CSAC responsibilities similar to those that
exist under the APLE program. Specifically it:
a) Requires the CSAC to administer the
program and to adopt rules and regulations, as
specified, to solicit the advice of specified
entities, and to distribute program information and
students applications, as specified.
b) Requires that each eligible
institution receive at least one allocation and that
the remainder be distributed proportionally, as
specified.
c) Requires the CSAC to enlist the advice
and support of specified entities to reexamine its
outreach and marketing strategies to inform potential
undergraduates and employed persons outside of
academia about the program.
d) 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.
14) Declares the Legislature's intent that the EEP be fully
funded commencing with the Budget Act of 2015.
15) Makes a number of related declarations and findings.
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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.
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
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section.
4) Access to the program for veteran teachers . This bill,
like the APLE program, was recently amended to provide the
opportunity for credentialed teachers currently teaching
in subject matter shortage areas at school sites that meet
the requirements of the program to receive an assumption
loan award. These awards, like the APLE program, are
limited to 400 per year.
5) Clarifying payback provisions . This bill contains several
confusing and potentially conflicting payback provisions.
It requires that all participants fully complete and
satisfy program requirements within six years of the
enrollment date. It also requires that initial credential
or added authorization participants redeem their awards
within 10 years and that master's degree or NBPTSC
participants redeem their awards within six years of the
agreement's issuance. If a master's degree or NBPTSC
participant fails to meet this requirement, the
participant is required to fully repay all funds awarded
to the State. If an individual pursuing an individual
credential or authorization fails to meet this
requirement, the individual retains full liability for all
remaining student loans.
Is a student required to complete their academic program
and teaching service requirements within six years? Is
this reasonable? Or is this in reference to enrollment in
the EEP? If so, how does 6 years to complete the teaching
requirements of the program reconcile with 10 years to
redeem the award?
While there appear to be consequences if a participant
fails to redeem an award, it is unclear if there are
consequences if a participant fails to meet the teaching
service requirements. Under the APLE an initial credential
participant was required to meet the four consecutive
years of teaching service requirements, or retain full
liability for all remaining student loan obligations (EC
69613.6).
Staff recommends the bill maintain language requiring
award redemption within 10 years and 6 years, but be
amended to:
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a) Require that academic and certification
program requirements be completed within 6 years.
b) Include similar language to that in EC
69613.6 (a), regarding failure to meet teaching
service requirements, for initial credential or added
authorization participants.
c) Require that master's degree or NBPTSC
participants fully repay all funds awarded to the
State if they fail to meet the four consecutive
school years of teaching service requirement.
1) Duplicative code sections . This bill appears to contain
two different sections outlining similar requirements.
Staff recommends the bill be amended to consolidate the
duplicative requirements in 69633 and 69636 into a single
section, to eliminate language requiring the SPI to
solicit advice regarding proposed rules and regulations,
and to clarify that the information from the study shall
be furnished to the CSAC for the purpose of determining
EEP awards.
2) 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
vague authority to the SPI to determine individual
applicant eligibility "according to qualifying criteria
set forth by the SPI." Under the APLE program, the CSAC
determines the award recipients based upon the rubrics and
conditions established via statute. What qualifying
criteria is envisioned that the SPI would be setting
beyond those already delineated in statute? The study
requirements which outline the contents and a variety
lists to be developed appear to be sufficient for guiding
the CSAC administration of the program. Staff recommends
that the broad and vague authority delegated to the SPI be
deleted from the bill.
3) School site measure . In an effort to develop a loan
assumption program more aligned with the new Local Control
Funding Formula (LCFF), this bill has been amended to
require that a program participant be at a school site
that has a population of unduplicated English learner,
students eligible for free or reduced-price meals, and
foster youth, equal to or greater than the district's
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unduplicated pupil count under the LCFF. These provisions
attempt to ensure that the EEP program acts as an
incentive for outstanding new teachers and veteran
teachers to choose to teach at sites that are recognized
by the LCFF as needing the greatest resources.
The bill appears to contain a drafting error in section
69631(4) as the section does not contain the school site
criteria recently added to the bill's provisions. Staff
recommends the bill be amended to ensure that this section
reflects the LCFF related school site requirement.
4) 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
None received on this version.
OPPOSITION
None received.