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