BILL ANALYSIS                                                                                                                                                                                                    Ó






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          |SENATE RULES COMMITTEE            |                         SB 62|
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                                   THIRD READING 


          Bill No:  SB 62
          Author:   Pavley (D), Block (D), and Huff (R), et al.
          Amended:  4/7/15  
          Vote:     21  

           SENATE EDUCATION COMMITTEE:  8-0, 3/25/15
           AYES:  Liu, Huff, Block, Hancock, Leyva, Mendoza, Pan, Vidak

           SENATE APPROPRIATIONS COMMITTEE:  7-0, 5/28/15
           AYES:  Lara, Bates, Beall, Hill, Leyva, Mendoza, Nielsen

           SUBJECT:   Student financial aid:  Assumption Program of Loans  
                     for Education:  Governor's Teaching Fellowships  
                     Program


          SOURCE:    Superintendent of Public Instruction
          
          DIGEST:   This bill makes various programmatic changes to the  
          existing Assumption Program of Loans for Education (APLE).

          ANALYSIS:  


          Existing law:


           1) Establishes the APLE program, administered by the California  
             Student Aid Commission (CSAC), to provide loan assumption  
             benefits to credentialed teachers.  APLE warrants are given  
             to credential candidates; the warrants are then redeemed for  
             the loan assumption benefit once the candidate has earned a  
             credential and completed a year of eligible teaching.  The  








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             program "forgives" up to $11,000 of college loan debt for a  
             person who teaches for four consecutive years in a qualifying  
             school or subject area (paying $2,000 for the first year of  
             teaching service and $3,000 for each of the next three years  
             of teaching).  Qualifying schools include those with high  
             proportions of low-income youth or emergency permit teachers  
             and those located in rural areas. 


           2) Requires the Superintendent of Public Instruction (SPI) to  
             annually determine teacher subject matter shortages.


           3) Provides additional loan forgiveness of $1,000 per year for  
             up to four years for those who teach math, science or special  
             education (for a total of $15,000) and an additional $1,000  
             for those who teach math, science or special education in  
             schools with an academic performance index (API) of 1 or 2  
             (for a total of $19,000).  

           4) Prohibits CSAC from awarding a greater number of agreements  
             than is authorized in the annual Budget Act. 

          This bill makes various programmatic changes to the existing  
          APLE.  Specifically, this bill:

           1) Makes technical, conforming changes the legislative findings  
             and declarations for APLE.

           2) Amends the definition of "eligible school" to those that  
             serve a percentage of unduplicated pupils, as determined by  
             the SPI.  

           3) Eliminates the requirement that an eligible school is ranked  
             in the lowest two deciles on the API.

           4) Removes the requirement that an applicant has received or is  
             approved to receive a loan under the Federal Family Education  
             Loan Program and replaces it with the requirement that an  
             applicant has demonstrated financial need.

           5) Requires that an applicant will be teaching in a shortage  
             area, as determined by the SPI.  








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           6) Removes the provision allowing up to 400 APLE loan  
             assumption agreements to go to veteran teachers each year.

           7) Modifies the list of schools (that serve a large population  
             of pupils from low-income families) that the SPI is required  
             to provide to CSAC each year.

           8) Removes the requirement for the SPI to provide CSAC with a  
             list of schools ranked in the lowest two deciles of the API  
             and a list of high priority schools.

           9) Removes the prohibition for teachers in self-contained  
             classrooms and multi-subject credential holders from  
             participating in the APLE.

           10)Allows the list of teaching shortage areas that the SPI must  
             develop each year to include teaching in a self-contained  
             classroom and multiple subject credentials.

           11)Amends the provision allowing loan forgiveness of $1,000 per  
             year for those who teach math, science or special education  
             by eliminating the requirement that the school is in the  
             lowest 60 percentile of the API.

           12)Modifies the annual report that CSAC is required to submit  
             to the Legislature, as specified.

           13)Authorizes CSAC to continue to implement APLE as it read on  
             January 1, 2015, for the allocation of funds for loan  
             agreements made before that date and for the purpose of  
             collecting payments from former program participants.

           14)Makes the implementation of APLE contingent upon funding  
             provided in the annual Budget Act and also caps the number of  
             warrants to be awarded at 1,000.  

          Comments

          Need for the bill.  According to the author, California's  
          schools are facing a pending teacher shortage crisis.  They  
          indicate that the Commission on Teacher Credentialing reports  
          enrollment in teacher preparation programs has fallen from  
          almost 78,000 a decade ago to 19,933 in 2013-a decrease of 74%.   
          In addition, one-third of the state's teaching workforce is  







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          nearing retirement age.  Further, the California Department of  
          Education has designated English, History, Social Sciences,  
          Computer Education, as well as those teachers teaching all  
          subjects in an elementary class as shortage areas.  

          FISCAL EFFECT:   Appropriation:    No          Fiscal  
          Com.:YesLocal:   No

          According to the Senate Appropriations Committee, this bill will  
          result in cost pressures in the tens of millions in General  
          Fund.  Additionally, the California State University reports  
          minimal costs for the APLE awards and CSAC has indicated  
          increased workload to cost in the high hundreds of thousands.

          SUPPORT:  (Verified  6/2/15)

          Superintendent of Public Instruction (source)
          Association of California School Administrators
          California College and University Police Chiefs Association
          California School Boards Association
          California State PTA
          California Student Aid Commission
          California Teachers Association
          Las Virgenes Unified School District
          Los Angeles County Office of Education
          Saugus Union School District
          Numerous individuals


          OPPOSITION:   (Verified6/1/15)


          None received


            

          Prepared by:Lenin Del Castillo / ED. / (916) 651-4105
          6/2/15 10:46:16


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