BILL ANALYSIS                                                                                                                                                                                                    Ó



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

          Bill No:             SB 460             
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          |Author:    |Allen                                                |
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          |Version:   |April 6, 2015                               Hearing  |
          |           |Date:     April 22, 2015                             |
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          |Urgency:   |No                     |Fiscal:     |Yes             |
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          |Consultant:|Kathleen Chavira                                     |
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          Subject:  Pupils redesignated as fluent English proficient:   
          local control funding formula:                   ????..local  
          control and accountability plans          

            SUMMARY
          
          This bill, until July 1, 2019, or whenever the state adopts  
          statewide English learner redesignation standards, whichever  
          comes first, requires that local educational agencies continue  
          to receive a percentage of supplemental and concentration grant  
          funding under the Local Control Funding Formula (LCFF) for two  
          additional years after an English Learner (EL) student has been  
          reclassified as Fluent English Proficient (RFEP), and requires  
          that the local educational agency provide specified information  
          regarding these pupils in their Local Control Accountability  
          Plan (LCAP). 

            BACKGROUND
          
          The 2013-14 budget replaced the previous K-12 finance system  
          with a new Local Control Funding Formula (LCFF).  For school  
          districts and charter schools, the LCFF created base,  
          supplemental, and concentration grants in place of most  
          previously existing K-12 funding streams, including revenue  
          limits and most state categorical programs.  County Offices of  
          Education (COEs) also receive base, supplemental, and  
          concentration grants and the LCFF creates separate funding  
          streams for oversight activities and instructional programs.   
          The base grant provides the same amount per Average Daily  
          Attendance (ADA) for all districts and varies according to four  







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          grade spans.  A supplemental grant (equal to 20 percent of the  
          base grant for school districts and charter schools, 35 percent  
          of the base grant for COEs) is provided for each pupil who is  
          identified as either low income, as determined by eligibility  
          for free or  reduced-price meals, an English learner (EL), or in  
          foster care.  A concentration factor provides an additional 50  
          percent of the base grant for each pupil who is eligible for the  
          supplemental grant and who is in excess of 55 percent of the  
          district's or charter school's enrollment (35 percent of the  
          base grant for COEs).  The formula uses an "unduplicated count,"  
          which means that pupils who fall into more than one category are  
          counted only once.  (Education Code § 2574 and § 42238.02)

          As part of the LCFF, school districts, COEs, and charter schools  
          are required to develop, adopt, and annually update a three-year  
          Local Control and Accountability Plan (LCAP), beginning on July  
          1, 2014, using a template adopted by the California State Board  
          of Education (SBE) on or before March 31, 2014.  Current law  
          requires that the LCAP include a description of the annual goals  
          to be achieved for all students and subgroups of students in  
          each of eight areas of statutorily identified state priority.   
          Goals must also address any additional local priorities  
          established by the local governing board.  (Education Code §  
          52060)
          Both federal and State law require that each school district  
          with English language learners annually assess these students'  
          English language development until they are redesignated as  
          English proficient.  The assessment, the California English  
          Language Development Test (CELDT), must be administered to all  
          students whose primary language is not English within 30  
          calendar days after they are enrolled in a California public  
          school for the first time, and annually thereafter during a  
          period of time determined by the Superintendent of Public  
          Instruction and the State Board of Education (SBE) until they  
          are reclassified as fluent English proficient.  

          Current law requires the California Department of Education  
          (CDE), with the approval of the SBE, to establish procedures for  
          conducting the CELDT and for the reclassification of a pupil  
          from English learner to English proficient.  Current law  
          requires the reclassification procedures developed by the CDE to  
          use multiple criteria, including, but not limited to, all of the  
          following:









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             1.   An assessment of language proficiency.

             2.   Teacher evaluation, including, but not limited to, a  
               review of the pupil's curriculum mastery.

             3.   Parental opinion and consultation.

             4.   Comparison of the student's performance in basic skills  
               against an empirically established range of performance in  
               basic skills based upon the performance of English  
               proficient pupils of the same age that demonstrates whether  
               the pupil is sufficiently proficient in English to  
               participate effectively in a curriculum designed for pupils  
               of the same age whose native language is English. 
               (Education Code § 313)
            
          ANALYSIS
          
          This bill, until July 1, 2019, or until statewide pupil  
          redesignation standards are adopted, whichever comes first:

          1.   Expands the definition of "unduplicated pupil" to include a  
               pupil who is redesignated as Fluent English Proficient  
               (RFEP) and provides that the pupil shall count only once  
               for funding purposes.

          2.   Requires that a county office of education, a school  
               district, or a charter school receive 50 percent and 25  
               percent of the supplemental grant and the concentration  
               grant add on calculated for a pupil who is redesignated as  
               Fluent English Proficient (RFEP) for the first and second  
               fiscal years, respectively, after the redesignation.

          3.   Expands LCAP state priority reporting requirements  
               regarding English learners to include identification of any  
               specialized programs or services provided to RFEPs in order  
               for them to maintain proficiency in English and access the  
               common core 



               academic content standards and a broad course of study that  
               includes specified subject areas. 









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          4.   Makes other technical and clarifying corrections. 
          
          STAFF COMMENTS
          
          1.   Need for the bill.  According to the author, while the  
               Local Control Funding Formula provides supplemental and  
               concentration funding to meet the needs of English Learner  
               (EL) students, this additional funding could serve as a  
               disincentive to redesignate students as fluent in English.  
               Once an EL student is reclassified, an LEA will not receive  
               supplemental or concentration grant funding unless the  
               pupil is also low-income.  The author is concerned that  
               this creates an unintended incentive for districts to  
               maintain students as ELs, rather than reclassify them as  
               fluent English proficient (RFEP).  

          2.   Reclassification practices.  As required under current law,  
               the State Board of Education has issued guidelines for  
               districts' use in determining reclassification.  These  
               guidelines are not mandatory, and districts are authorized  
               to adopt local reclassification standards that differ from  
               the State Board's guidelines. Districts may set higher or  
               lower minimum scores on assessments and include other forms  
               of evidence, such as grades or scores on other tests, as  
               part of the reclassification decision.  In the 2013-14  
               school year there were approximately 1.4 million English  
               learners in California public schools, constituting 22.7  
               percent of the total enrollment.  Approximately 12 percent  
               of English Learner students were reclassified as English  
               proficient in 2013-14. 

               Several reports have recently been issued regarding the  
               reclassification practices of districts.   These reports  
               have focused upon narrow cohorts of students, primarily  
               focusing upon larger urban districts and limiting research  
               to students identified as ELs in second grade.  It is  
               unclear whether the policy recommendations in these reports  
               can be broadly applied to a population of ELs outside of  
               the more urban districts, and who enter the public school  
               system after second grade, as this type of comprehensive  
               information remains unavailable. It also remains unclear,  
               for the majority of EL students, what reclassification  
               criteria have any relationship to the successful transition  
               of English learners into classrooms and curricula that  








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               require English proficiency.

          3.   Related legislation.  Current law, enacted by SB 1108  
               (Padilla, Chapter 434, Statues of 2012), requires the  
               California Department of Education (CDE), if state federal  
               or private funds are provided for this purpose, to review  
               and analyze the criteria, policies and practices that  
               school districts use to reclassify English learners and to  
               recommend any policy changes necessary to identify when  
               English learners are prepared for reclassification.  The  
               CDE was required to issue a report of its findings,  
               research, analysis, recommendations, and best practices by  
               January 1, 2014, and by January 1, 2017, to issue an  
               updated report that reflects changes in analysis and  
               recommendations as the result of the adoption of the common  
               core standards and the adoption of a common core standards  
               aligned English language development test.  (EC §313.5)

               In response to the requirements of SB 1108, the CDE  
               contracted with the Public Policy Institute of California  
               (PPIC) and provided data from the California Longitudinal  
               Pupil Achievement Data System (CALPADS) to conduct an  
               analysis of reclassification practices in California school  
               districts  However, there is concurrence that the report  
               provided by the Public Policy Institute of California  
               (PPIC) did not provide sufficient analysis and information  
               to implement statewide policy regarding reclassification of  
               English learners.  According to the California Department  
               of Education (CDE), conducting the comprehensive study  
               envisioned by the bill requires additional resources.   
               Staff notes that although the CDE requested funding through  
               the budget process to conduct the more extensive research  
               and analysis envisioned by SB 1108 (2012), no such funding  
               was proposed in the 2014-15 Budget.  

               In addition, SB 1108 (Padilla, 2014) proposed extension of  
               the deadline for the CDE to issue its report and added  
               RFEPs as a numerically significant pupil subgroup for the  
               purposes of the Academic Performance Index (API).  SB 1108  
               was heard and passed by this Committee in March 2014 by a  
               vote of 9-0, but was subsequently held under submission in  
               the Senate Appropriations Committee. 

          4.   Recent related reports.  In January 2014, the Public Policy  








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               Institute of California (PPIC) issued a report,  
               Reclassification of English Learners (EL) in California  
               Schools, which provided a longitudinal analysis of the  
               transition from English learner to Reclassified Fluent  
               English Proficient (RFEP) in California school districts.  

               According to the report:

               RFEP students not only outperform EL students, but also  
               often do as well as native English speakers when it comes  
               to measures of academic outcomes, such as standardized  
               tests and on-time grade progression.  

               A survey of school districts indicates that more than 90  
               percent of responding districts report using more demanding  
               reclassification criteria than are suggested by the State  
               Board of Education (SBE) guidelines.

               Districts using more stringent reclassification criteria  
               have lower reclassification rates.  However, using stricter  
               criteria is also associated with slightly better outcomes  
               (in terms of ongoing language proficiency, for example) for  
               RFEP students. Stricter criteria are also associated with a  
               greater likelihood of on-time grade progress among students  
               reclassified in the 8th grade.

               In May 2014, PPIC issued Pathways to Fluency: Examining the  
               Link between Language Reclassification Policies and Student  
               Success, which examined reclassification policies and the  
               academic performance of ELs and former ELs in the two  
               largest California school districts, San Diego Unified and  
               Los Angeles Unified. This research was focused on students  
               identified as ELs in second grade, who remained ELs through  
               the end of 5th grade, and students who were reclassified by  
               the end of 5th grade.  This research found that students  
               reclassified in elementary school have very strong academic  
               outcomes throughout middle and high school.  Researchers  
               found no evidence that removal of language supports for  
               these reclassified English Learners (ELs) hurt their  
               academic progress relative to that of native English  
               speakers. 

               In both reports, researchers acknowledge that many elements  
               of EL instruction, funding and testing will be changing,  








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               that the criteria for EL reclassification will necessarily  
               change in the coming years, and that new reclassification  
               criterion will need to be crafted carefully and based upon  
               research and analysis.   

          5.   Net effect?  This bill adds Reclassified Fluent English  
               Proficient (RFEPs) to the definition of unduplicated pupils  
               and provides that the student may only be counted once for  
               funding purposes.  According to a Senate Appropriations  
               Committee analysis of similar legislation last session, in  
               2013-14 there were 65,298 pupils statewide that were in the  
               first two years of RFEP, and were not low-income.  These  
               students would have generated approximately $34.1 million  
               to $41.1 million in supplemental grant funding, depending  
               on their grade span distribution.  If 50 percent of those  
               students were eligible to receive concentration grant  
               funding, the bill would result in an additional $50 million  
               to districts.  

          6.   Related and Prior legislation. 
            
               RELATED LEGISLATION

                 SB 409 (De Leon) modifies the unmet reporting requirements  
               established by 
               SB 1108 (Padilla, Chapter 434, Statues of 2012) to  
               establish a new due date of January 1, 2017, and to  
               additionally require the review and analysis of the  
               reclassification activities used by a sampling of districts  
               to meet the eight state priorities in their local control  
               accountability plans (LCAPS) in relation to the education  
               of English learners. The bill also requires the California  
               Department of Education (CDE) to report on how  
               implementation of the eight state priorities in the  
               districts' LCAPs supports the transition of English  
               learners to classrooms and curricula that require English  
               proficiency. 

               PRIOR LEGISLATION

                 AB 1892 (Bocanegra, 2014) was essentially identical to this  
               bill when it was heard and passed by this Committee by a  
               vote of 7-0 on June 18, 2014.  
               AB 1892 was subsequently amended in the Appropriations  








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               Committee to delete the funding component but retain the  
               accountability and reporting requirements.  AB 1892 was  
               never acted upon on the Senate Floor.

                 SB 344 (Padilla, 2013) proposed new requirements related to  
               the Local Control Accountability Plans (LCAPs) that local  
               educational agencies (LEAs) are required to adopt beginning  
               July 1, 2014.  Among other things, SB 344 added  
               reclassified ELs to the subgroups of pupils whose academic  
               achievement must be measured by the Academic Performance  
               Index (API) for accountability purposes. SB 344 was vetoed  
               by the Governor, whose veto message read, in pertinent  
               part:

                    This bill interferes with the work of the State Board  
                    of Education as it implements, through an open and  
                    transparent process, the Local Control Funding  
                    Formula.  Moreover, it contains provisions contrary to  
                    the July budget agreement.

          SUPPORT
          
          Los Angeles Unified School District
          The Education Trust West

            OPPOSITION
           
           None received. 

                                      -- END --