BILL ANALYSIS Ó SB 460 Page 1 Date of Hearing: August 19, 2015 ASSEMBLY COMMITTEE ON APPROPRIATIONS Jimmy Gomez, Chair SB 460 (Allen) - As Amended June 2, 2015 ----------------------------------------------------------------- |Policy |Education |Vote:|6 - 0 | |Committee: | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | ----------------------------------------------------------------- Urgency: No State Mandated Local Program: YesReimbursable: Yes SUMMARY: This bill requires, until July 1, 2019, or whenever the state SB 460 Page 2 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 SB 460 Page 3 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 SB 460 Page 4 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