BILL ANALYSIS                                                                                                                                                                                                    Ó




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          |SENATE RULES COMMITTEE            |                        SB 527|
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                                   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  








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          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  








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            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  








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          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  








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          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)








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          None received


          OPPOSITION:   (Verified1/22/16)


          None received



          Prepared by:Lenin DelCastillo / ED. / (916) 651-4105
          1/25/16 16:16:46


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