BILL ANALYSIS Ó SENATE COMMITTEE ON APPROPRIATIONS Senator Ricardo Lara, Chair 2015 - 2016 Regular Session SB 148 (McGuire) - Career technical education: Career and Job Skills Education Act ----------------------------------------------------------------- | | | | | | ----------------------------------------------------------------- |--------------------------------+--------------------------------| | | | |Version: April 7, 2015 |Policy Vote: ED. 8 - 0 | | | | |--------------------------------+--------------------------------| | | | |Urgency: No |Mandate: No | | | | |--------------------------------+--------------------------------| | | | |Hearing Date: April 27, 2015 |Consultant: Mark McKenzie | | | | ----------------------------------------------------------------- This bill meets the criteria for referral to the Suspense File. Bill Summary: AB 148 would establish the Career and Job Skills Education Act and appropriate $600 million from the General Fund to the Superintendent of Public Instruction (SPI) for grants to local education agencies (LEAs) for the development and enhancement of career technical education (CTE) courses. The bill would also state legislative intent that "additional necessary funding" be appropriated from the General Fund for these purposes in 2017-18 and 2018-19. Fiscal Impact: One-time General Fund appropriation of $600 million in 2015-16 SB 148 (McGuire) Page 1 of ? for purposes of funding grants to K-12 school districts. Future General Fund cost pressures in the hundreds of millions to continue funding for the grant program. California Department of Education (CDE) cost of approximately $500,000 annually (General Fund), which includes costs for 3 PY of staff to administer the program and approximately $150,000 in operating expenses, workshops, and awardee training. Background: Existing law establishes the following CTE programs for public schools: Regional Occupational Centers and Programs. Existing law establishes various CTE programs for public schools including Regional Occupational Centers and Programs (ROCPs) that allow students from multiple schools or districts to participate in career technical training programs regardless of the geographical location of their residence in a county or region. Existing law authorizes the following types of ROCPs operational models: County ROCP: Existing law authorizes county SPIs, with the consent of the State Board of Education (SBE) to establish and maintain a ROCP to provide education and training in career technical courses. Joint Powers Agency ROCP: Existing law authorizes two or more school districts to form a joint powers agency (JPA) for the purpose of establishing and maintaining a ROCP for students who are enrolled in those districts. Single District ROCP: Existing law authorizes certain very large districts, who do not wish to be part of a county ROCP, to apply to the SBE through their county SPI for permission to establish and maintain a ROCP for students enrolled in the district. The county SPI may supervise the establishment of the ROCP. Partnership Academies. The Partnership Academy model is a three-year program, for grades ten through twelve, structured as a school-within-a-school and incorporates (1) rigorous integrated academics with a career focus; (2) business partnerships that provide support through curriculum resources, classroom speakers, field trips, mentors, and internships; and (3) teachers who work as a team in preparing students for SB 148 (McGuire) Page 2 of ? careers and postsecondary education. Specialized Secondary Programs. A specialized secondary program is a four-year grant program that provides opportunities for students to obtain advanced instruction, in addition to core course work, and skills in technology appropriate to the curriculum. Comprehensive high schools may use the grant funds for programs that provide students with advanced learning opportunities in a variety of subjects, including but not limited to English-language arts, mathematics, science, history and social science, foreign language, and the visual performing arts. The acquisition of technology skills and the use of technology as a tool for instruction and learning are also emphasized in these programs. Frequently, specialized secondary programs are established as a smaller learning community or a school-within-a-school. Agricultural Career Technical Education Incentive Program. The Agricultural Career Technical Education Incentive program provides local educational agencies (LEAs) with funds to improve the quality of their agricultural vocational education programs. The goal is to maintain a high-quality, comprehensive agricultural vocational program in California's public school system to ensure a constant source of employable, trained, and skilled individuals. Career Technical Education Pathways Program. Under this program, the state provides one-time funding for competitive grants to improve the linkages between CTE programs at schools, community colleges, and local businesses. This program, which sunsets June 30, 2015, also provides support for linked learning, which support small learning cohorts that integrate a career theme with academic education. Career Pathways Trust. The state provided one-time funding in 2014-15 for competitive grants, similar to the CTE pathways program. These funds are available for expenditure through 2015-16. Grants are available for K-14 career pathways programs. Proposed Law: SB 148 would establish the Career and Job Skills Education Act, a grant program administered by the SPI for the development and enhancement of CTE courses. Specifically, this bill would: SB 148 (McGuire) Page 3 of ? Establish the Career and Job Skills Education Fund in the State Treasury, and make moneys in the Fund available to the SPI, upon appropriation by the Legislature. Authorize the following LEAs that operate any state-approved CTE sequence of courses to apply to the SPI for a grant for the development and enhancement of high-quality CTE courses: the governing board of one or more school districts, county offices of education, direct-funded charter schools, or regional occupational centers or programs operated by joint powers authorities, as specified. Require the SPI to do all of the following: o Develop a system of accountability, data collecting, and reporting to ensure the goals of the CTE programs are satisfied. o Develop data metrics that are aligned with the core metrics required by the federal Workforce Innovation and Opportunity Act, common metrics adopted by the Office of the Chancellor of the Community Colleges, and career-ready standards developed pursuant to the federal Elementary and Secondary Education Act, and the 11 program quality indicators in the California State Plan for CTE. o Adopt and provide grant recipients with a list of approved high-quality industry certifications and licenses and approved third-party CTE pathway assessments in each CTE pathway for use in program development. o Provide technical assistance to all grant recipients. Require the SPI to award grants to applicants that contribute an amount equal to the amount of the grant for use in CTE programs, and meet specified requirements. Require each governing board of a grant recipient to adopt a CTE program, in consultation with the county office of education, local workforce investment boards, and area community colleges that includes all of the following criteria: o CTE courses aligned with the Career CTE Model Curriculum Standards and offer a coherent sequence of courses that enable transition to postsecondary education on a career pathway or entry level employment, as specified. o Grant recipient plans for articulation of CTE courses with community colleges or apprenticeships programs to continue the sequence through grades 13 and SB 148 (McGuire) Page 4 of ? 14, and for acquisition of high-quality standards, credentials, and licenses. o Needs assessments of local business and industry to ensure pupil competency needed for employment. o Provision of student support services to assist with meeting high school graduation requirements and career preparation. o Industry partnerships including student internships and externships for teachers. o A system of annual data collection and reporting of student outcomes that includes enrollment, employment, postsecondary advancement, course offerings and certification, licensing and pathway assessment outcomes. Prescribe authorized uses of grant funds, including: matching pupils with work-based learning opportunities, technical assistance, industry partnerships, student support services, evaluating outcomes, planning, development, accountability, curriculum development, instructional equipment, materials, teacher externships, or pupils of special populations, as specified. Require grant recipients, as a condition of receiving funds, to: o Develop a plan for establishing a sequence of courses and certify to CDE that the courses were developed and are aligned to state standards, that CTE teachers are appropriately credentialed, and that funds are not used for staff salaries and benefits, except as otherwise specified. o Submit new or revised CTE programs or pathways to CDE for approval by September 1 of the fiscal year in which those changes occur. o Collect and report data as required by CDE and the applicable local control and accountability plan. Require the SPI and the state board to incorporate appropriate metrics into the state adopted accountability measures, aligned with the federal Carl D. Perkins Career and Technical Education Improvement Act of 2006, California's Standards for Career Ready Practice, and the quality indicators described in the California State Plan for Career Technical Education, to determine career readiness. Appropriate $600 million from the General Fund to the SPI, and state legislative intent to appropriate funds in 2017-18 and 2018-19 for purposes of this program. Require CDE to retain up to two percent of total funds SB 148 (McGuire) Page 5 of ? apportioned to each grant recipient to provide technical assistance, professional development, and accountability services and local monitoring to each grant recipient. Require that two percent of all funding be set aside and distributed to applicants of rural school districts and regions with higher than average dropout rates. Staff Comments: The Governor's 2015-16 budget proposal includes funding for the Career Pathways Program ($48 million), an Adult Education Block Grant ($500 million), and the Apprenticeship Program ($29 million). In addition, the Governor proposes establishing the Career Technical Education Incentive Grant program, a competitive grant program administered by the SPI for the next three fiscal years. The proposal includes $250 million for funding in the 2015-16 fiscal year. The SPI, with the approval of the State Board of Education, would determine allocation amounts and the distribution of awards. The proposal requires a dollar-for-dollar match, a plan for continued support of CTE programs after funding expires, and gives priority to applicants that demonstrate regional collaboration, significant investment in CTE infrastructure, and the ability to leverage outside funding. Recipients would be eligible to renew grants based upon outcome data. The Administration indicates that the proposed CTE Incentive Grant Program is intended to be a transitional categorical program to help school districts maintain high-quality CTE programs until full funding through the Local Control Funding Formula (LCFF) is realized. SB 148 would establish a CTE grant program that is similar to the Governor's CTE Incentive Grant Program Proposal with two distinct differences: 1) the Governor's proposal is intended to be a transitional categorical until the LCFF is fully funded, while this bill appears to be a permanent ongoing categorical; and 2) the Governor proposes to appropriate $250 million for the CTE Incentive Grant Program, and this bill appropriates $600 million for the Career and Job Skills Education Act. Rather than direct $600 million in Proposition 98 funding, the Committee may wish to consider deleting the appropriation and SB 148 (McGuire) Page 6 of ? deferring to the Legislature's Budget Committees to determine the appropriate level of funding in the context of the larger Proposition 98 budget. This bill requires that two percent of the total funds apportioned to each grant recipient be retained by CDE to provide technical assistance, professional development, and accountability services and local monitoring to each grant recipient. Staff notes that the state policy since the passage of Proposition 98 has been to exclude state operations expenditures from the minimum guarantee. For example, the appropriation that CDE receives from the General Fund to administer various categorical programs has never been counted towards Proposition 98. CDE intends to award $12 million in grants (2 percent of the $600 million appropriation) to county offices of education to provide assistance in the three targeted areas. -- END --