BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 1426


                                                                    Page  1





          Date of Hearing:  May 20, 2015


                        ASSEMBLY COMMITTEE ON APPROPRIATIONS


                                 Jimmy Gomez, Chair


          AB  
          1426 (Levine) - As Amended May 5, 2015


           ----------------------------------------------------------------- 
          |Policy       |Education                      |Vote:|7 - 0        |
          |Committee:   |                               |     |             |
          |             |                               |     |             |
          |             |                               |     |             |
          |-------------+-------------------------------+-----+-------------|
          |             |                               |     |             |
          |             |                               |     |             |
          |             |                               |     |             |
          |-------------+-------------------------------+-----+-------------|
          |             |                               |     |             |
          |             |                               |     |             |
          |             |                               |     |             |
           ----------------------------------------------------------------- 


          Urgency:  No  State Mandated Local Program:  NoReimbursable:  No


          SUMMARY:


          This bill modifies the State Board of Education (SBE) funding  
          determination for blended learning charter schools that offer  
          classroom-based instruction no less than 60 percent of the  
          instructional time and no more than 80 percent. Specifically,  








                                                                    AB 1426


                                                                    Page  2





          this bill:


             1)   Defines "blended learning charter school" as a charter  
               school that offers a formal education program in which a  
               pupil learns at least in part through online delivery of  
               content and instruction with some element of pupil control  
               over time, place, and pace and at least in part at a  
               supervised location away from home, operates a single  
               schoolsite within the geographic jurisdiction of the  
               authority that granted its charter, and has no more than  
               one satellite facility.


             2)   Requires the SBE to adopt criteria for the determination  
               of funding for blended learning charter schools that  
               include facilities costs. 


             3)   Provides that a blended learning charter school shall be  
               deemed a classroom-based school for purposes of eligibility  
               for specified facilities funding.


          FISCAL EFFECT:


          1)Proposition 98/GF cost pressure in the millions of dollars  
            related to expanded access to facility programs.  For example,  
            under current law, the state provides facility funding for  
            certain charter schools under the Charter School Facility  
            Grant Program.  In 2014-15, the program provided $29.6 million  
            to 292 charter schools.  Currently, non-classroom based  
            charter schools are not eligible for funding under this  
            program. This bill would increase the pool of eligible charter  
            schools, placing pressure on existing resources.











                                                                    AB 1426


                                                                    Page  3





          2)General Fund administrative costs to CDE of approximately  
            $75,000 to review additional funding determinations. 
          COMMENTS: 


          1)Purpose. Under current law, charter schools can receive full  
            average daily attendance (ADA) funding if they offer  
            classroom-based instruction at least 80% of the time.  This  
            allows the charter to provide differentiated instructional  
            models, such as blended learning, without a reduction in  
            funding.  Once a charter school falls below 80%  
            classroom-based, the charter is required to seek a funding  
            determination from the State Board of Education.  In making  
            its determination, the SBE is required to consider a number of  
            factors, including the amount of the school's total budget  
            spent on certifications, employees' salaries and benefits, and  
            on schoolsites, and the teacher-to-pupil ratio in the school.  
            This review provides important safeguards to ensure the state  
            is investing the appropriate amount of resources for this type  
            of instruction. 


            This bill establishes a new "zone" of charter schools that  
            provide at least 60% classroom-based instruction time but not  
            more than 80% classroom-based instruction, and makes funding  
            for these schools subject to a determination by the SBE.   
            Existing law already requires these charter schools to seek an  
            SBE funding determination.  The bill modifies this requirement  
            for this subset of charter schools by adding the additional  
            requirement that the SBE include facility costs. The bill also  
            makes these schools eligible for facilities funding if they  
            are otherwise eligible. 





            Supporters of this bill, the California Charter Schools  
            Association, state blended learning programs are not well  








                                                                    AB 1426


                                                                    Page  4





            supported by the existing policy environment.  They state the  
            current SBE funding determination process has forced blended  
            learning charter schools to "severely curtail their blended  
            learning innovation". They further state the current process  
            is "arbitrary and artificially constraining when applied to  
            blended learning charter schools."


          2)Opposition.  The California Teachers Association, (CTA), is  
            opposed to this bill. CTA states there is no research  
            highlighting the importance of the zone between 60% to 80% of  
            students instructional time that necessitate special  
            consideration.  A high quality charter school using a blended  
            model of instruction has the potential to be a valuable  
            alternative for certain targeted students for whom the  
            traditional classroom model is not feasible.  However, too  
            often this approach is neither targeted nor high quality.   
            They note charter schools that move into the online learning  
            environment interact more with for profit companies who have a  
            responsibility to their shareholders, taking the focus away  
            from students.  CTA believes charter schools that seek to  
            provide more online instruction out of class should utilize  
            the existing process for non-classroom based instruction  
            apportionments. 





          Analysis Prepared by:Misty Feusahrens / APPR. / (916)  
          319-2081
















                                                                    AB 1426


                                                                    Page  5