BILL ANALYSIS                                                                                                                                                                                                    Ó






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          |SENATE RULES COMMITTEE            |                        SB 232|
          |Office of Senate Floor Analyses   |                              |
          |(916) 651-1520    Fax: (916)      |                              |
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                                   THIRD READING 


          Bill No:  SB 232
          Author:   Hall (D), et al.
          Amended:  3/19/15  
          Vote:     21  

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

          SENATE APPROPRIATIONS COMMITTEE:  Senate Rule 28.8

           SUBJECT:   School accountability:  California Collaborative for  
                     Educational Excellence:  state administrator


          SOURCE:    Author
          
          DIGEST:   This bill allows 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.  

          ANALYSIS: 

          Existing law:

          1)Specifies that the California Collaborative for Educational  
            Excellence (CCEE) shall be governed by a board consisting of  
            the following five members:  (a) the Superintendent of Public  
            Instruction (SPI) or his/her designee; (b) the President of  
            the State Board of Education (SBE) or his/her designee; (c) a  
            superintendent of a county office of education appointed by  
            the Senate Rules Committee; (d) a teacher appointed by the  
            Speaker of the Assembly; and (e) a superintendent of a school  








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            district appointed by the Governor.

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

          This bill allows a state-appointed trustee or administrator of a  
          school district in receivership, among other things, to request  
          the advice and assistance of the CCEE.  

          Background
          
          AB 97 (Committee on Budget, Chapter 47, Statutes of 2013) and  
          subsequent legislation created the 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  
          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  







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          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 CCEE was created in  
          order to provide advice and assistance to 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 SBE and SPI.   
          However, LEAs also may seek assistance from the CCEE on their  
          own.

          Emergency Loans and School Administrators.  Emergency loans may  
          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.  Districts  
          that receive an emergency loan are required 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/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.
          
          Comments







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          Need for the bill.  According to the author's office, in order  
          to receive assistance from the 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, this bill provides all school districts under  
          state receivership with a clear path to access the CCEE.  

          Is the bill necessary?  Existing law provides several ways for  
          LEAs to access assistance from the CCEE.  Specifically,  
          subsection (f) of Education Code § 52074 allows the 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.

          Purpose of the CCEE.  Existing law specifies that the purpose of  
          the CCEE is to advise and assist school districts, county  
          superintendents of schools, and charter schools in achieving the  
          goals set forth in their 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  







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          provided upon request of an LEA (in which case the LEA pays for  
          the cost).  Alternatively, the 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 CCEE.  The California  
          Department of Education recommended, and the SBE 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.  

          Inglewood Unified School District.  SB 533 (Wright, Chapter 325,  
          Statutes of 2012) provided an emergency loan of $29 million from  
          the 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 the 2010-11 school  
          year.  In April 2012, the Los Angeles County Office of Education  
          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  
          SPI 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. 
          
          FISCAL EFFECT:   Appropriation:    No          Fiscal  
          Com.:YesLocal:   No


          SUPPORT:   (Verified 4/27/15)








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          Superintendent of Public Instruction, Tom Torlakson
          Los Angeles County Office of Education



          ARGUMENTS IN SUPPORT:     Supporters argue that this bill allows  
          for assistance services to be provided by the CCEE and be  
          particularly helpful for school districts that are under state  
          receivership. 



           
          Prepared by:Lenin Del Castillo / ED. / (916) 651-4105
          4/28/15 15:31:20


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