BILL ANALYSIS Ó SENATE COMMITTEE ON APPROPRIATIONS Senator Ricardo Lara, Chair 2015 - 2016 Regular Session SB 527 (Liu) - Education finance: Safe Neighborhoods and Schools Fund Grant Program. ----------------------------------------------------------------- | | | | | | ----------------------------------------------------------------- |--------------------------------+--------------------------------| | | | |Version: April 20, 2015 |Policy Vote: ED. 7 - 0 | | | | |--------------------------------+--------------------------------| | | | |Urgency: No |Mandate: No | | | | |--------------------------------+--------------------------------| | | | |Hearing Date: May 18, 2015 |Consultant: Jillian Kissee | | | | ----------------------------------------------------------------- This bill meets the criteria for referral to the Suspense File. Bill Summary: This bill establishes various requirements for the grant program authorized by the Safe Neighborhoods and School Act (approved by voters as Proposition 47 in November 2014) for truancy and dropout prevention. This program is to be administered by the California Department of Education (CDE). Fiscal Impact: Grant program funding: Unknown amount of special funds available for the program outlined in this bill as a result of savings derived from Proposition 47. Administrative costs: The CDE indicates that this bill would require increased funding in the hundreds of thousands of dollars as well as 4.5 positions to develop an application process annually and determine awardees with stakeholders. This estimate may exceed the 5 percent threshold of funds to be spent on administrative costs as required by the SB 527 (Liu) Page 1 of ? proposition depending on the amount of funds realized. Costs to the CDE will vary depending on how many LEAs apply. Background: The Safe Neighborhoods and Schools Act was approved by voters as Proposition 47 in November 2014 and makes significant changes to the state's criminal justice system. It reduces the penalties for certain non-violent, non-serious drug and property crimes, and requires that the resulting state savings be spent on: 1) mental health and substance use services; 2) truancy and dropout prevention; and 3) victim services. Further, Proposition 47 requires that 25 percent of the Safe Neighborhoods School Fund be allocated to the CDE to administer a grant program to reduce truancy, high school dropout, and student victimization rates. The Legislative Analyst's Office (LAO) estimates that the amount available for this grant program will likely total between $25 million and $50 million annually beginning in 2016-17. The LAO recommended in its report that the Legislature allocate the grants for reducing truancy, high school dropout, and student victimization rates to school districts that have notably high concentrations of English learners, low-income, or foster youth, as these students are at higher risk for these outcomes. According to the author's office, this bill is intended to provide specificity in statute regarding the awarding of the Safe Neighborhoods and Schools grant funds. Specifically, it would target the funding of grants towards local educational agencies (LEAs) who have developed three-year plans in their local control and accountability plans (LCAPs) to develop research-based, school wide approaches to addressing social, emotional, and behavioral issues. Proposed Law: This bill establishes various requirements for the grant program authorized by the Safe Neighborhoods and School Act (approved by voters as Proposition 47 in November 2014) for truancy and dropout prevention. This program is to be administered by the CDE. All local educational agencies (LEAs) are eligible to apply for the grant program. This bill requires that the grant program SB 527 (Liu) Page 2 of ? rewards LEAs that have developed a comprehensive plan and implementation strategy using research-based approaches to increase attendance rates, reduce chronic absenteeism, remedy school push-out and dropout rates, and reduce school removals of all types and referrals to law enforcement agencies. The plan must create a strong and supportive school culture that identifies and addresses the needs of students and that coordinates student support programs with community-based providers or public agencies, or both. This bill requires a LEA receiving a grant to show at a minimum that it has designed and committed to implementing all of the following: 1. A three-year plan, developed through its LCAP or otherwise, to improve specific outcomes for students and to identify and address disparities in any of the areas with respect to student subgroups. 2. A robust data system to collect and disaggregate data in the plan, including a survey that measures students' sense of safety and student connectedness, to monitor progress in these areas. 3. A system for sharing the data on the aggregate level and progress towards meeting grant goals with the school community on at least an annual basis and engaging with all key stakeholders. 4. An evaluation system that involves key stakeholders to assess effectiveness related to addressing the social, emotional, and behavioral needs of students and developing strong, supportive, and positive school climates. This bill requires the department to annually issue a request for proposal to all LEAs for each fiscal year that there are funds available from the Safe Neighborhoods and Schools Fund. LEAs serving high percentages of disadvantaged students, consistent with the local control funding formula, are to be prioritized to receive these funds. This bill requires that the funds granted to LEAs only be used to further implementation of the three-year plan and other SB 527 (Liu) Page 3 of ? commitments, as specified, through three categories of activities: 1. Professional development, training, and coaching for teachers, school administrators, students, parents, counselors, administrative staff, and members of school district governing boards. 2. Investments in social services, health, mental health, restorative justice, and youth development staff, agencies, and providers. 3. Entering into agreements with institutions and community-based nonprofit organizations that have a track record of improving student outcomes and providing cultural competency and anti-bias training, supporting parent leadership and engagement, and providing non-punitive student and family support programs. This bill prohibits the funds to be used 1) to supplant existing funding allocated to meet the requirements of the school climate, engagement, or other state priority areas included in LCAPs, or 2) for law enforcement agencies or entities, public or private. This bill requires a LEA that has received grant funding to submit annual outcomes-based data for evaluation to show progress in reducing the rate of class and school removals, referrals to law enforcement agencies, and dropout and truancy rates of targeted students. The CDE will consider the data when it makes determinations for eligibility for future funding. Finally, the bill requires the CDE to consult with a stakeholder group, with specified members, by telephone, web-based platform, or other effective means to assist in making determinations regarding awarding grants, in assessing whether grant recipients are meeting the minimum requirements and, starting in year two of the grant cycle, in assisting with developing or amending the requests for proposals. Staff Comments: The amount of savings attributed to the passage of Proposition 47 is unknown. Therefore, it is unknown if there SB 527 (Liu) Page 4 of ? will be sufficient funds to support the cost of this bill. Proposition 47 states that the agency responsible for administering the programs shall not spend more than 5 percent of the total funds it receives from the Safe Neighborhoods and Schools Fund on an annual basis for administrative costs. Without knowing total funds to be received annually, it is unknown whether the administrative costs imposed by this bill would be within the threshold. This bill requires the CDE to issue a request for proposals to all LEAs annually, to the extent funds are available from the Safe Neighborhoods and Schools Fund. In addition, this bill requires the CDE to consult with a stakeholder group of a specific makeup to assist in making determinations regarding awarding grants, assessing whether grant recipients are meeting the minimum requirements, and starting in year two, assisting with developing or amending the requests for proposals. This additional workload is estimated to result in General Fund costs to the CDE in the hundreds of thousands of dollars. -- END --