BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON EDUCATION
                              Senator Carol Liu, Chair
                                2015 - 2016  Regular 

          Bill No:             SB 232             
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          |Author:    |Hall                                                 |
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          |Version:   |March 19, 2015                      Hearing Date:    |
          |           |March 25, 2015                                       |
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          |Urgency:   |No                     |Fiscal:    | Yes             |
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          |Consultant:|Lenin Del Castillo                                   |
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          Subject:  School accountability:  local control and  
          accountability plans:  California      ????. Collaborative for  
          Educational Excellence

            SUMMARY
          
          This bill would allow a state-appointed trustee or administrator  
          of a school district in receivership to request the advice and  
          assistance of the California Collaborative for Educational  
          Excellence.  

            BACKGROUND
          
          California Collaborative for Educational Excellence 
          
          Chapter 47, Statutes of 2013 (AB 97, Committee on Budget), and  
          subsequent legislation created the Local Control Funding Formula  
          (LCFF), which consolidated most of the state's categorical  
          programs with general purpose revenue limit funding and would be  
          phased in over the coming years.  One of the main principles  
          behind the LCFF is that English learners and low-income students  
          require more attention and resources in the classroom than  
          students who do not have these same challenges.  By providing  
          more services (and in turn, additional funding) to these student  
          populations, it is widely believed that this will help close the  
          achievement gap and help all students perform better.

          In addition to the LCFF, the 2013 Budget established a new  
          system for school accountability.  Under the new system, school  
          districts, county offices of education, and charter schools are  







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          required to complete a Local Control and Accountability Plan  
          (LCAP).  The LCAP must include a district's annual goals in each  
          of the following eight state priority areas: 

             1.   Student achievement.

             2.   Student engagement.

             3.   Other student outcomes.  

             4.   School climate.

             5.   Implementation of the Common Core State Standards.

             6.   Course access.

             7.   Basic services.

             8.   Parental involvement.

          The plans must also include both district wide goals and goals  
          for specific subgroups.  Districts are required to consult with  
          stakeholders on their plans and hold at least two public  
          hearings before adopting or updating their LCAP.  

          The new funding formula also created a new system of school  
          district support and intervention.  The California Collaborative  
          for Educational Excellence (CCEE) was created in order to  
          provide advice and assistance to local educational agencies  
          (LEAs).  Under the new system, if an LEA does not meet  
          performance expectations in the eight state priority areas, they  
          could be subject to intervention by their County Office of  
          Education or the CCEE.  LEAs that are continuously not meeting  
          performance standards, as specified, could be subject to  
          intervention by the State Board of Education (SBE) and State  
          Superintendent of Public Instruction (SPI).  However, LEAs also  
          may seek assistance from the CCEE on their own.

          Existing law specifies that the CCEE shall be governed by a  
          board consisting of the following five members:  (1) the SPI or  
          his/her designee; (2) the President of the SBE or his/her  
          designee; (3) a superintendent of a county office of education  
          appointed by the Senate Rules Committee; (4) a teacher appointed  
          by the Speaker of the Assembly; and (5) a superintendent of a  








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          school district appointed by the Governor.

          Existing law also specifies that, at the direction of the board  
          of the CCEE, the fiscal agent shall contract with individuals,  
          as well as LEAs or organizations with expertise, experience, and  
          a record of success to carry out the purposes of the Local  
          Control Funding Formula (LCFF) implementation. 

          Emergency Loans and School Administrators
          
          Existing law provides the authority for emergency loans to be  
          given to school districts that are unable to meet their current  
          operating expenses.  Such loans are provided by legislation  
          enacted at the request of the district.  Existing law requires  
          districts that receive an emergency loan to agree to statutory  
          terms and conditions regarding repayment of the loan and the  
          steps to be taken to return the district to financial solvency. 

          If a district receives an emergency loan of up to 200% of its  
          recommended budget reserve, the SPI is required to appoint a  
          trustee who has the authority to stay and rescind any action of  
          the school district governing board.  Further, the appointed  
          trustee serves until the loan is repaid and the district has  
          adequate fiscal systems and controls in place.  If a school  
          district receives an emergency loan of more than 200% of its  
          recommended budget reserve, then the SPI is required to assume  
          all legal rights, duties, and powers of the governing board and  
          to appoint an administrator to act on his or her behalf in  
          exercising this authority.  The SPI may return power to the  
          governing board after specified conditions are met.  The costs  
          of the trustee and administrator and other related oversight and  
          monitoring activities are borne by the district.  Since 1991,  
          nine school districts have received emergency loans, including:   
          Oakland Unified, Vallejo City Unified, King City Joint Union  
          High School District (formerly South Monterey County Joint Union  
          High School District), West Fresno, and most recently, Inglewood  
          Unified.


            ANALYSIS
          
          This bill would allow a state-appointed trustee or administrator  
          of a school district in receivership, among other things, to  
          request the advice and assistance of the California  








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          Collaborative for Educational Excellence (CCEE).  

          STAFF COMMENTS
          
          1.   Need for the bill.  According to the author's office, in  
               order to receive assistance from the California  
               Collaborative for Educational Excellence (CCEE), the  
               governing body of a school district, a county  
               superintendent, or a district superintendent must make a  
               request.  However, when a school district enters state  
               receivership, such as Inglewood Unified School District,  
               and is currently under a state-appointed administrator to  
               oversee the district's day-to-day operations, the  
               administrator is not included among those entities that can  
               request assistance of the CCEE.  "School districts with the  
               most to gain by accessing the CCEE, those under state  
               receivership, have no direct or clear way of doing so."   
               According to the author's office, the bill provides all  
               school districts under state receivership with a clear path  
               to access the CCEE.  

          2.   Is the bill necessary?  Current law provides several ways  
               for local educational agencies (LEAs) to access assistance  
               from the CCEE.  Specifically, subsection (f) of Education  
               Code § 52074 allows the Superintendent of Public  
               Instruction (SPI) to direct the CCEE to advise and assist  
               an LEA under specified circumstances, including a situation  
               whereby the governing board of an LEA requests the advice  
               and assistance of the CCEE.  Additionally, pursuant to  
               Education Code § 52071, if a school district requests  
               technical assistance, the county superintendent of schools  
               shall provide technical assistance, including a request  
               that the CCEE provide advice and assistance to the school  
               district.  For a school district under state receivership,  
               because the SPI assumes all the legal rights, duties, and  
               powers of the governing board, it appears that the SPI has  
               the authority to request technical assistance or the advice  
               of the CCEE on behalf of that district.  Therefore, it can  
               be reasonably argued that there are already sufficient  
               mechanisms in place for LEAs to request assistance from the  
               CCEE.

          3.   Purpose of the CCEE.  Current law specifies that the  
               purpose of the CCEE is to advise and assist school  








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               districts, county superintendents of schools, and charter  
               schools in achieving the goals set forth in their local  
               control and accountability plans (LCAPs).  However, the  
               CCEE board itself does not have a statutory role in  
               evaluating LEA performance, determining which LEAs receive  
               advice and assistance, or the delivery of advice and  
               assistance.  Those functions lay with the SPI, county  
               superintendents of schools, and the individuals and  
               organizations with whom the fiscal agent has contracted to  
               provide those services.  The advice and assistance may be  
               provided upon request of an LEA (in which case the LEA pays  
               for the cost).  Alternatively, the California Collaborative  
               for Educational Excellence (CCEE) may be assigned to an LEA  
               upon the recommendation of the SPI, if the SPI and the  
               county superintendent of schools in which the LEA exists,  
               determine that assistance is needed to help the LEA achieve  
               the goals it has specified for itself in its LCAP.  

               The 2013 Budget Act appropriated $10 million to establish  
               this new system of support through the California  
               Collaborative for Education Excellence (CCEE).  The State  
               Department of Education recommended, and the State Board of  
               Education approved, the selection of Riverside County  
               Office of Education as the fiscal agent for the CCEE.   
               Because the number of districts that will need assistance  
               is unknown and the role of the CCEE is still unclear, the  
               cost of the new support and intervention system going  
               forward has yet to be determined.  The CCEE board met only  
               for the first time on February 25, 2015.  The Governor's  
               Proposed 2015 Budget does not include ongoing funding for  
               the CCEE, but the Administration will be considering  
               ongoing funding as the system is further developed.  The  
               Committee may wish to consider whether it is appropriate or  
               premature at this point to potentially expand the scope of  
               the CCEE by specifically authorizing the administrator of a  
               school district under receivership to request its  
               assistance.

          4.   Inglewood Unified School District.  Chapter 325, Statutes  
               of 2012 (SB 533, Wright) provided an emergency loan of $29  
               million in General Fund to the Inglewood Unified School  
               District in order to restore the district back to fiscal  
               solvency.  The district is located in Los Angeles County  
               and enrolled approximately 15,000 pupils in 26 schools in  








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               the 2010-11 school year.  In April 2012, the Los Angeles  
               County Office of Education (LACOE) certified Inglewood  
               Unified School District's fiscal status as negative, which  
               meant that based upon current projections at the time, the  
               district could not meet its financial obligations for the  
               2011-12 or 2012-13 fiscal years.  The current State Trustee  
               for the Inglewood Unified School District was appointed by  
               the Superintendent of Public Instruction in June 2013,  
               taking over for the Interim State Administrator.  The  
               Interim State Administrator was appointed in December 2012  
               after the resignation of the district's previous and  
               initial State Administrator, who was appointed in October  
               2012.

          5.   Related and previous legislation.
          
               AB 2408 (Allen, 2014) proposed to expand the governing  
               board of the CCEE from five to seven members by adding a  
               representative of charter schools, appointed by the Senate  
               Rules Committee, and a parent of a California public school  
               pupil, appointed by the Speaker of the Assembly.  AB 2408  
               passed this Committee on June 4, 2014, but was eventually  
               vetoed by the Governor with the following message:

                    I am returning Assembly Bill 2408 without my  
                    signature.

                    This bill would add two new members to the California  
                    Collaborative for Educational Excellence that was  
                    recently established under the Local Control Funding  
                    Formula.

                    It is premature to alter the composition of the  
                    Collaborative prior to its initial meeting. I would  
                    prefer to see how the Collaborative functions in its  
                    current form before making any changes.

               Chapter 325, Statutes of 2012 (SB 533, Wright), provided an  
               emergency loan of $29 million in General Fund to the  
               Inglewood Unified School District to restore the district  
               back to fiscal solvency.

            SUPPORT
          








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          Superintendent of Public Instruction

            OPPOSITION
           
           None received.

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