BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                     AB 207


                                                                    Page  1


          Date of Hearing:  March 25, 2015


                           ASSEMBLY COMMITTEE ON EDUCATION


                                  O'Donnell, Chair


          AB  
                     207 (Grove) - As Introduced  January 29, 2015


          SUBJECT:  Virtual or online charter schools:  average daily  
          attendance


          SUMMARY:  Authorizes virtual or online charter schools to claim  
          independent study average daily attendance (ADA) for pupils who  
          are residents of a county that is 125 miles or less from the  
          county in which the apportionment claim is reported.  


          EXISTING LAW:  


          1)Requires independent study ADA to be claimed by school  
            districts, county superintendents of schools, and charter  
            schools only for pupils who are residents of the county in  
            which the apportionment claim is reported or pupils who are  
            residents of a count immediately adjacent to the county in  
            which the apportionment is claimed.
          2)Authorizes virtual or online charter schools to also claim  
            independent study average daily attendance for pupils enrolled  
            in the school that move to a residence outside of the county  
            only for the duration of the course or courses in which the  
            pupil is enrolled or until the end of the school year,  
            whichever comes first.


          FISCAL EFFECT:  Unknown









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          COMMENTS:  


          What is a "virtual school?"  According to the California Virtual  
          Academy (CAVA), which is the largest chain of virtual schools in  
          California, the use of online curriculum and services allows  
          "learning [to] happen at home, on the road, or wherever an  
          Internet connection can be found."  Physical instructional  
          materials and other offline resources may also be used.   
          Attendance is monitored through an Internet connection and  
          physical attendance at a school site is not required, although  
          periodic attendance may occur.  Virtual schools are sometimes  
          promoted as a good option for athletes, actors, and others for  
          whom regular attendance at a school is not possible.  However,  
          virtual school teachers report that these types of students  
          actually account for a small fraction of virtual school  
          enrollment.  Virtual schools enroll students in grades K through  
          12.  


          California has about nine virtual schools or virtual school  
          chains, nearly all of which are charter schools.  CAVA is the  
          largest chain, which, according to a recent report ("Virtual  
          Public Schools in California," In the Public Interest, February  
          2015), operates schools in 11 locations.  Another chain, the  
          Academy of Arts and Sciences, serves students in 33 counties,  
          according to its website.


          Online instruction has not been shown to be effective.  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  








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          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.  

          Report finds serious shortcomings in CAVA schools.  The report  
          by In the Public Interest ("Virtual Public Education in  
          California," 2015) focused specifically on CAVA schools, and  
          concluded that "students at CAVA are at risk of low quality  
          educational outcomes, and some are falling through the cracks  
          entirely, in a poorly resourced and troubled educational  
          environment."  Among the concerns identified by the report are  
          the following:

                 In every year since it began graduating students, except  
               2013, CAVA has had more dropouts than graduates.
                 Students are eligible to be counted as having attended  
               with as little as one minute of log in time each day.
                 K12 California (the California subsidiary of K-12, Inc.)  
               pays itself for services out of CAVA school bank accounts  
               that it (K12 California) manages.
                 Competitive bidding is prohibited:  K12 California  
               contractually prohibits CAVA schools from seeking another  
               vendor for services that K12 California is willing and able  
               to perform.
                 CAVA teachers report that the "vast majority" of the  
               work they do is clerical, preventing them from spending  
               sufficient time of teaching.
                 Limited local control:  individual CAVA location  
               governing boards operate under contract to K12 California  
               and do not "have much leeway in terms of budget, program  
               and contracting decisions independent from K12 California."
                 K12, Inc. charges CAVA schools more than they can  
               reasonably pay for administrative and technology services.   
               The shortfall is covered by "budget credits" that are  
               extended by K12, Inc., which results in a "perpetual debt"  








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               relationship between CAVA schools and K12, Inc.
                 CAVA students have lower academic achievement, higher  
               dropout rates, and higher turnover than students in  
               brick-and-mortar schools.

          Studies in other states also 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  
               Outcomes 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  








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               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.



          Most virtual schools in California use a curriculum provided by  
          K12, Inc., a private, for-profit company headquartered in  
          Virginia. In 2014, the NCAA recently announced that it will stop  
          accepting coursework from 24 schools nationwide (13 in  
          California) that use the K12, Inc. curriculum at any Division I  
          or Division II college or university, because "their courses  
          were found to not comply with the NCAA's nontraditional course  
          requirements."  Other K12, Inc. schools are currently being  
          evaluated by the NCAA for compliance with its "core course and  
          nontraditional course requirements."  A 2012 report by the  
          National Education Policy Center ("Understanding and Improving  
          Full-Time Virtual Schools:  A Study of Student Characteristics,  
          School Finance, and School Performance in Schools Operated by  
          K12, Inc.") found that students in K12, Inc. schools have lower  
          academic achievement, higher dropout rates, and higher turnover  
          than students in brick-and-mortar schools.



          This bill increases the number of students that virtual schools  
          would be able to enroll by allowing them to claim ADA funding  
          for students who live up to 125 miles outside of the county in  
          which the virtual school is located.


          Prior legislation.  AB 377 (Grove), Statutes of 2013, would have  
          allowed an online or virtual school to claim ADA for a student  
          who resides anywhere in California.  That bill failed in the  
          Assembly Education Committee on a 2-5 vote.


          AB 2007 (Grove), Chapter 807, Statues of 2014, authorizes  
          virtual or online charter schools to claim independent study  
          average daily attendance for pupils enrolled in the school that  








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          move to a residence outside of the county only for the duration  
          of the course or courses in which the pupil is enrolled or until  
          the end of the school year, whichever comes first.





          REGISTERED SUPPORT / OPPOSITION:


          Support




          California Parents for Virtual Public Education


          Opposition


          Public Counsel


          Analysis Prepared  
          by:              Rick Pratt/ED./(916) 319-2087