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.
          
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          |Version: April 20, 2015         |Policy Vote: ED. 7 - 0          |
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          |Urgency: No                     |Mandate: No                     |
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          |Hearing Date: May 18, 2015      |Consultant: Jillian Kissee      |
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          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  







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            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  








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          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  








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          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  








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          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. 


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