BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | SB 527| |Office of Senate Floor Analyses | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- THIRD READING Bill No: SB 527 Author: Liu (D) Amended: 1/13/16 Vote: 21 SENATE EDUCATION COMMITTEE: 7-0, 4/29/15 AYES: Liu, Block, Hancock, Leyva, Mendoza, Monning, Pan NO VOTE RECORDED: Runner, Vidak SENATE APPROPRIATIONS COMMITTEE: 5-1, 1/21/16 AYES: Lara, Beall, Hill, Leyva, Mendoza NOES: Nielsen NO VOTE RECORDED: Bates SUBJECT: Education finance: Safe Neighborhoods and Schools Planning Grants SOURCE: Author DIGEST: 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). ANALYSIS: Existing law, the Safe Neighborhoods and Schools Act, enacted by Proposition 47, as approved by the voters at the November 4, 2014, statewide general election, among other things, establishes the Safe Neighborhoods and Schools Fund, a continuously appropriated fund, which is funded by savings that accrue to the state from the implementation of the act. The act provides that, among other purposes, 25 percent of the funds shall be disbursed to the CDE to administer a grant program to public agencies aimed at improving outcomes for public school SB 527 Page 2 pupils by reducing truancy and supporting pupils who are at risk of dropping out of school or are victims of crime. This bill: 1)Establishes various requirements for the grant program authorized by Proposition 47 for truancy and dropout prevention. 2)Requires the CDE, upon an appropriation, to administer planning grants to improve student outcomes, as specified. 3)Requires local educational agencies (LEAs) that apply for funding to submit a plan to the CDE that includes various components. Plans must include a description of local needs, based on specified data, and describe a commitment to: aligning strategies to the LEA's Local Control and Accountability Plan; addressing the needs of each student subgroup; implementing a community schools strategy; engaging various entities; maintaining a team responsible for overall operations; and reporting on program outputs. The plans must also describe how the strategies will be sustained beyond the grant period and how they will be monitored and evaluated. 4)Prioritizes funding for LEAs that are located in communities with high crime rates or have high rates of chronic absenteeism, suspension, dropouts, or foster youth. 5)Allows grant funds to be used for development and initial implementation of a community school strategy that includes, among other things, assessing and meeting the academic, social, emotional, physical health, and mental health needs of students, identifying school and community resources, and integration of services. Funds may also be used to improve or expand upon existing activities. 6)Specifies legislative intent that LEAs support ongoing costs for activities pursuant to this bill. 7)Requires the CDE to conduct outreach to LEAs that qualify for priority funding, provide training and technical assistance to LEAs that receive grants, and coordinate training and SB 527 Page 3 technical assistance for LEAs that do not. 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. Comments Need for the bill. According to the author's office, "positive school climate is directly related to academic achievement. New Local Control Funding Formula state priorities include a focus on improving school climate measure in part by suspension and expulsion rates. Studies have shown that one suspension greatly increases the likelihood that a student will drop out and become involved in the juvenile justice system. Removing students from school through the disciplinary exclusion also increase the risk that they will become victims of violent crime. Exposure to trauma is associated with a higher risk for school dropout and in turn, dropping out of school increases the risk of being imprisoned. Students of color, foster youth, and students with disabilities are disproportionately impacted by school removals. In addition, behavioral problems among school-age youth are associated with high rates of depression, experiencing a traumatic or violent event, and other significant home-life stress. 65 percent of students with an "emotional disturbance" drop out of school. This dropout rate is the highest of all other disability categories. School-age youth who are depressed, have experienced a traumatic or violent event, and other significant home-life stresses are more likely to be suspended or expelled. The American Academy of Pediatrics has found that suspension can increase stress and may predispose students to antisocial behavior and even suicidal SB 527 Page 4 ideation. Psychologists have similarly found that disciplinary exclusion policies can increase "student share, alienation, rejection, and breaking of healthy adult bonds," thereby exacerbating negative outcomes for young people." Report on Proposition 47. The Legislative Analyst's Office (LAO) released a report on the Implementation of Proposition 47 in February 2015. In the report, the LAO indicates that while the state savings that will result from Proposition 47 is subject to significant uncertainty, annual savings will likely range from $100 million to $200 million beginning in 2016-17. The LAO also notes that although Proposition 47 states that these savings shall be deposited into a new state fund, the new Safe Neighborhood and Schools Fund (SNSF), and be allocated for grant programs administered by specific departments, the Legislature has the opportunity to provide direction on how the funds are spent. Specifically, the Legislature could weigh in on 1) how the individual departments should distribute the funds and 2) how much state oversight to provide to ensure that the funds are being spent effectively. Proposition 47 requires that 25 percent of the SNSF be allocated to the CDE to administer a grant program to reduce truancy, high school dropout, and student victimization rates. The 2016-17 Governor's Budget proposes $7.3 million for this grant program. Truancy in schools. California's compulsory education law requires all students between the ages of six and 18 to attend school full-time. Parents and legal guardians are responsible for ensuring that children attend school. A student who is absent from school without a valid excuse for more than 30 minutes on three days in a school year is considered a truant. The law requires that parents or legal guardians are notified when their children has been classified as a truant and reminded of their obligation to compel the attendance of pupils at school. Upon a pupil's third truancy in a school year and following a district's effort to hold a conference with the parent or legal guardian and the pupil, a pupil is classified as a habitual truant and may be referred to a school attendance review board (SARB) or to the local probation officer. Upon a fourth truancy, students and/or their parents or legal guardians may be fined. In 2012-13, the CDE reported a truancy rate of SB 527 Page 5 29.28% with 1.9 million students considered truants. According to the CDE, students who are chronically absent in lower grades are much less likely to be proficient readers and have higher levels of suspensions. Chronic absence in the sixth grade is the most predictive indicator that a student will not graduate from high school. In 2013, the Attorney General's (AG's) office released a report, "In School and On Track" on the truancy of elementary school kids. The AG argues that truancy at the elementary level has negative impacts on the students, who are more likely to drop out of high school, public safety when students become more likely to become involved with gangs, substance abuse, and incarceration. There are also negative impacts on school districts who attendance funding and on the economy, due to lost economic productivity and revenues. FISCAL EFFECT: Appropriation: No Fiscal Com.:YesLocal: No According to the Senate Appropriations Committee, the level of funding for the program outlined in this bill is dependent upon savings derived from Proposition 47. As of the release of the Governor's Budget for the 2016-17 fiscal year, it is estimated that $7.3 million will be available for this program. The Governor's Budget indicates that funds expended on direct services and other instructional support for students will be counted towards meeting the state's funding obligation under Proposition 98. Additionally, the CDE indicates that this bill will require 3.5 positions and about $460,000 for activities including administering the grants, providing technical assistance, and collecting and analyzing data. Staff notes that current law prohibits the CDE from spending more than 5 percent of funds it receives from the Safe Neighborhoods and Schools Fund for administrative costs annually. Any administrative costs not covered by the Safe Neighborhoods and Schools Fund would require General Fund support. SUPPORT: (Verified 1/22/16) SB 527 Page 6 None received OPPOSITION: (Verified1/22/16) None received Prepared by:Lenin DelCastillo / ED. / (916) 651-4105 1/25/16 16:16:46 **** END ****