BILL ANALYSIS Ó AB 377 Page 1 Date of Hearing: April 15, 2015 ASSEMBLY COMMITTEE ON APPROPRIATIONS Jimmy Gomez, Chair AB 377 (Linder) - As Introduced February 18, 2015 ----------------------------------------------------------------- |Policy |Education |Vote:|6 - 0 | |Committee: | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | ----------------------------------------------------------------- Urgency: No State Mandated Local Program: NoReimbursable: No SUMMARY: This bill re-establishes, subject to an appropriation in the annual Budget Act for this purpose, a grant program to cover the costs of Advanced Placement (AP) examination fees or International Baccalaureate (IB) examination fees, or both, for eligible economically disadvantaged high school pupils or foster youth. Specifically, this bill: AB 377 Page 2 1)Authorizes school districts, county offices of education and charter schools to apply to the CDE for grant funding based on the number of economically disadvantaged pupils or foster youth enrolled in AP or IB courses who will take the next offered AP or IB exams. 2)Requires participating school districts to designate school district staff to whom pupils may submit applications for grants and to institute a plan to notify pupils of the availability of the grants. 3)Authorizes eligible economically disadvantaged high school pupils or foster youth to apply to the designated school district staff for a grant; provides that the grant shall be used only to pay the AP or IB exam fees, and requires a pupil who receives a grant to pay $5 of the exam fee 4)Provides that if the applications exceed the total funds available for this purpose, the CDE shall prorate the grants based upon the ratio of the total amount requested to the total amount appropriated for this purpose. 5)Authorizes school districts and county superintendents of schools to form collaboratives or consortia in order to participate in the grant program. 6)Authorizes the CDE to enter into a contract with the providers of the AP and IB exams to facilitate program administration, and exempts the CDE from specified Public Contract Code and Military and Veterans Code provisions. FISCAL EFFECT: Annual GF/P98 costs of $3 million assuming the program is reauthorized at the prior funding level. Prior to implementation of the Local Control Funding Formula (LCFF), the state provided $3 million in categorical funding for this program. AB 377 Page 3 The bill establishes the AP/IB exam fee grant program, subject to an appropriation in the annual Budget Act. The Governor's proposed budget does not include an appropriation for this purpose. COMMENTS: 1)Purpose. This bill re-establishes a program that was repealed by its own terms January 1, 2013. The AP/IB test reimbursement program, administered by CDE, removed the financial barriers that prevent many low-income students in comprehensive high schools from taking the AP and IB course test. 2)Background. AB 2216 (Escutia), Chapter 793, Statutes of 1998, established two grant programs to assist economically disadvantaged students with fees for AP exams and to train teachers to offer AP courses. Subsequent bills extended the sunset through 2008. The state began to include IB test fee reimbursements in 2003-04. SB 1442 (Escutia), Chapter 436, Statutes of 2006, codified this practice and extended the sunset date for the AP/IB test reimbursement program through 2013. The program was not reauthorized. In prior years, both state and federal funds were provided for AP/IB test fee reimbursement. In 2009, state categorical funding for this program was made flexible, allowing LEAs to use the funds for any educational purpose. In 2013, LEAs continued receive this flexible funding through the Local AB 377 Page 4 Control Funding Formula. The federal government has steadily increased its commitment to this program over the years. In 2009, the federal government provided $4.3 million to CDE to reimburse LEAs for AP/IB test fees for students whose family income does not exceed 185 percent of the federal poverty level. In 2013-14, the CDE received $9.3 million in federal funds to reimburse 411 LEAs for 229,834 AP exams and 8,466 IB exams for income-eligible students. In 2014-15, the CDE received a federal grant of $10.7 million to reimburse local educational agencies. The cost of the AP exam is $55 and the cost of the IB exam is $110. 3)Prior legislation. AB 1854 (Linder) of 2014 is identical to this bill. AB 1854 was held on the Suspense file in this committee. AB 377 Page 5 Analysis Prepared by:Misty Feusahrens / APPR. / (916) 319-2081