BILL ANALYSIS                                                                                                                                                                                                    Ó



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          Date of Hearing:  August 19, 2015


                        ASSEMBLY COMMITTEE ON APPROPRIATIONS


                                 Jimmy Gomez, Chair


          SB 460  
          (Allen) - As Amended June 2, 2015


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          Urgency:  No  State Mandated Local Program:  YesReimbursable:   
          Yes


          SUMMARY:




          This bill requires, until July 1, 2019, or whenever the state  








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          adopts statewide English learner redesignation standards, local  
          educational agencies (LEAs) 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). Specifically, this bill:


          1)Expands the definition of "unduplicated pupil" to include a  
            pupil who is redesignated as RFEP and provides that the pupil  
            be counted only once for funding purposes.

          2)Requires, to the extent that funding is specifically provided  
            for this purpose in the annual budget act, that a county  
            office of education, a school district, or a charter school  
            receive 50 percent and 25 percent of supplemental and  
            concentration grant funds calculated for a pupil who is  
            redesignated as RFEP for the first and second fiscal years,  
            respectively, after the redesignation.

          3)Expands local control accountability plan (LCAP) state  
            priority reporting requirements regarding ELs, to include  
            identification of any specialized programs or services  
            provided to RFEPs in order for these pupils to maintain  
            proficiency in English and access the common core academic  
            content standards, and also include a broad course of study  
            that includes specified subject areas. 

          FISCAL EFFECT:


          1)General Fund/Proposition 98 cost pressure, in the range of $80  
            to $120 million annually through 2019 or when the adoption of  
            statewide reclassification criteria occurs, whichever occurs  
            first.  Actual costs of this bill will vary each year, based  
            on the number of RFEP pupils that are in their first two years  
            after reclassification that are not low-income and whether  
            they attend school in districts that qualify for concentration  
            grant funding. These costs are contingent upon funding in the  








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            annual budget act.  The 2015-16 Budget Act does not include  
            funding for this purpose.

          2)One-time General Fund costs of approximately $49,000 for the  
            California Department of Education (CDE) to make necessary  
            revisions to the LCAP template and to provide technical  
            assistance.  This estimate does not include costs for any  
            travel or stakeholder input meetings needed. 



          3)Additional unknown, potentially significant costs to LEAs to  
            report reclassified student enrollment, for county offices of  
            education to verify the data, and for LEAs to include  
            additional information on redesignated pupils in their LCAPs.   
            These activities could be deemed a reimbursable state mandate.

          COMMENTS:


          1)Purpose. In 2013, the state implemented a new funding formula  
            for schools known as the Local Control Funding Formula.  The  
            new law replaces most previously existing K-12 funding streams  
            (revenue limit and categorical programs) with per pupil grade  
            span funding and targeted funding for low income, English  
            learner and foster youth students. 

            This bill intends to allow local education agencies (LEAs) to  
            continue receiving a percentage of supplemental and  
            concentration grant funding under the LCFF for two additional  
            fiscal years after an EL has been reclassified as Fluent  
            English proficient (RFEP). The bill is intended to highlight  
            the importance of reclassifying EL pupils into mainstream  
            academic programs while, at the same time, ensuring they have  
            continued resources to maintain proficiency.

          2)Concerns.  Currently, LCFF establishes an "unduplicated"  
            percentage of students that meet certain criteria  
            (EL/LI/Foster) and the state provides additional funding based  








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            on that single unduplicated percentage. The unduplicated  
            percentage means a child counts only once, regardless of how  
            may criteria they meet. This bill adds RFEP students as an  
            additional category for determining if a child can be included  
            in the unduplicated count.  According to CDE, funding  
            calculation issues occur when trying to pull RFEP students out  
            of the unduplicated count to fund them differently than other  
            unduplicated categories.  This goes against the concept of  
            having a single unduplicated count. Presumably, the bill will  
            create three separate counts that are used in the formula, and  
            three calculations for each entity for supplemental funding  
            and 3 separate calculations for concentration funding.  The  
            CDE suggests technical amendments to streamline the  
            calculation and ensure RFEP students counted correctly. 

          3)Opposition. The California Teachers Association is opposed to  
            this bill as they believe that school districts should have  
            transitional time to implement existing LCFF regulations and  
            allocations. Therefore, any substantive changes to LCFF within  
            the transitional years should be held off. 



          Analysis Prepared by:Misty Feusahrens / APPR. / (916)  
          319-2081