BILL ANALYSIS Ó SENATE COMMITTEE ON APPROPRIATIONS Senator Ricardo Lara, Chair 2015 - 2016 Regular Session AB 252 (Holden) - Advanced placement program: Advanced Placement STEM Access Grant Program. ----------------------------------------------------------------- | | | | | | ----------------------------------------------------------------- |--------------------------------+--------------------------------| | | | |Version: June 2, 2015 |Policy Vote: ED. 6 - 1 | | | | |--------------------------------+--------------------------------| | | | |Urgency: No |Mandate: No | | | | |--------------------------------+--------------------------------| | | | |Hearing Date: August 17, 2015 |Consultant: Jillian Kissee | | | | ----------------------------------------------------------------- This bill meets the criteria for referral to the Suspense File. Bill Summary: This bill establishes the Advanced Placement (AP) STEM Access Grant Program to be administered by the California Department of Education (CDE) to help high schools establish or expand their AP STEM curriculum. STEM curriculum consists of science, technology, engineering, and mathematics. Fiscal Impact: Unknown, but likely significant cost pressure to fund the AP STEM Access Grant Program. Since there is no dedicated funding source, it is unknown what the magnitude of the grant program will be. If private funds to support the program do not materialize, pressure could be put on the state to fund the program. If the state funded 100 grants, this could drive costs of $800,000, assuming the maximum grant award. If each eligible school district received one grant, regardless of the number of high schools within each district, costs could AB 252 (Holden) Page 1 of ? exceed $3.3 million, assuming the maximum grant award of $8,000. (Proposition 98 and/or special funds) The CDE indicates that if this program were funded, it would need resources to administer the program of about $100,000 and two part-time positions. Costs would likely vary depending on how much funding would be available for this program and the number of applicants the CDE would receive. (General Fund) Successful applicants will be required to match the grant amount awarded by the CDE a dollar-for-dollar basis, or the equivalent in services or resources. Background: The AP Program was established over 40 years ago by the College Board, which is a national not-for-profit organization that fosters students' transitions to college through programs and services, including the AP Program. SB 1689 (Escutia, 2000) established the AP Challenge Grant Program administered by the CDE. The program awarded four-year grants on a competitive basis to no more than 550 high schools to establish, train, and support teams of teachers or purchase instructional materials and equipment for advanced placement courses. In its first year of operation, the budget included $16.5 million to provide competitive grants of up to $30,000. This program was defunded after a few years of operation. In the fall of 2013, the College Board implemented a nationwide AP STEM Access Program using a $5 million private grant it received. This program focuses on expanding AP course offerings to typically underrepresented minority and female students who have demonstrated strong academic potential to enroll in and explore these areas of study and related careers, which is similar to the intent of this bill. Proposed Law: This bill establishes the AP STEM Access Grant Program and the AP STEM Access Grant Program Account in the State Treasury (account). The program is to be administered by the CDE to help high schools expand their advanced placement STEM curriculum. Implementation of this bill is contingent upon funding made AB 252 (Holden) Page 2 of ? available to the CDE from any source, including state funds. Funds in the account may be used for grants and administrative costs for one-time uses, including professional development, instructional materials, and laboratory materials and supplies. Grant amounts are to be determined based on the cost of the type of AP course in the STEM curriculum, not to exceed $8,000 per grant application. This bill requires that the grant amount awarded by the CDE must be matched by the participating school district on a dollar-for-dollar basis, or the equivalent in services or resources. A school district may apply to the CDE for a maximum of one grant per high school and 10 grants per school district if all of the following conditions are met: (1) the high school either does not offer STEM AP courses or offers them but they are oversubscribed, as defined; and (2) the high school has identified students from populations that are underrepresented in STEM courses who have demonstrated they have high potential to be successful in one or more AP STEM courses, as specified. This bill's grant program sunsets on July 1, 2021. Related Legislation: AB 1940 (Holden, 2014) established a pilot program to expand science, technology, engineering, and mathematics advanced placement programs in high schools. This bill failed passage in the Assembly Appropriations Committee. Staff Comments: The AP Program consists of college-level courses in 31 subject areas offered at the high school level. AP exams are standardized tests that measure a student's level of knowledge and skills gained by the AP course. If a student scores well enough, the student could receive college credit or advanced placement in college. The fee for each exam is $91. The state uses federal funds, subject to availability, to pay a portion of the AP exam fee for income-eligible public school students. According to the College Board, students that qualify for the federal Free and/or Reduced Price Meal program are eligible for a $29 College Board fee reduction and are required to pay $5 per AB 252 (Holden) Page 3 of ? exam. The school or school district covers the remaining balance ($57) per test. The state then reimburses schools up to $41 per exam using available federal funds. If this bill is funded, this program may contribute to a potential increase in the number of students taking AP exams and fees to take those exams covered by students, school districts, and the state. Additional demand for state reimbursement of test fees could potentially result in a lower pro-rated amount but would ultimately depend on available federal funds. Staff notes that a former categorical program, known as the Advanced Placement Fee Reimbursement Program, which covered AP test fees for low-income students was made flexible and included in the state's new funding formula for local educational agencies. It was last funded in 2012-13 fiscal year at about $1.8 million. Federal funding for the 2015-16 fiscal year is about $12.1 million. -- END --