BILL ANALYSIS                                                                                                                                                                                                    Ó





          SENATE COMMITTEE ON APPROPRIATIONS
                             Senator Ricardo Lara, Chair
                            2015 - 2016  Regular  Session

          SB 1145 (Hueso) - Language arts:  reading:  diagnostic tools and  
          plans
          
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          |Version: April 5, 2016          |Policy Vote: ED. 5 - 1          |
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          |Urgency: No                     |Mandate: Yes                    |
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          |Hearing Date: April 25, 2016    |Consultant: Jillian Kissee      |
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          This bill meets the criteria for referral to the Suspense File.


          
          Bill  
          Summary:  This bill requires public schools with less than 50  
          percent of 4th grade students demonstrating proficiency on  
          English language arts standards to ensure that each student's  
          reading proficiency is measured throughout the school year using  
          a formative reading diagnostic tool.  This bill also requires a  
          reading plan, as specified, to be created for a student in  
          grades 1-3 who is not at the appropriate developmental reading  
          level for his or her grade.


          Fiscal  
          Impact:  
           Mandate costs: Unknown costs, but the requirement to measure  








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            certain students' reading proficiency; to create, update, and  
            implement a reading plan for specified students; and to  
            furnish the plan to their parents could drive reimbursable  
            state mandate costs in the hundreds of millions.  See staff  
            comments. (Proposition 98)

           Administrative costs: Potential costs in the high hundreds of  
            thousands.  The California Department of Education (CDE) cites  
            the need for additional staff related to developing a Request  
            for Information to gather information about currently  
            available diagnostic tests and formative tools with estimated  
            costs of $293,000 initially and a like amount if the list is  
            to be updated in the future.  Additional costs to implement a  
            special study in which educators would review and evaluate  
            diagnostic assessment and tools submitted would drive costs of  
            $686,000, according to the CDE.  (General Fund)


          Background:  Existing law:

             1)   Establishes the State's assessment system as the  
               California Assessment of Student Performance and Progress  
               and includes, beginning with the 2013-14 school year, a  
               summative assessment in English language arts for grades  
               3-8 and 11 that measures content standards adopted by the  
               State Board of Education (SBE).  (Education Code § 60640)

             2)   Requires, by November 1, 2014, the CDE to identify and  
               make available to school districts information regarding  
               existing assessments in language arts and mathematics that  
               are aligned to the common core academic standards and  
               appropriate for students in grade 2 for diagnostic use by  
               classroom teachers.  Existing law requires the CDE to  
               ensure that the selected diagnostic assessments are valid  
               for purposes of identifying particular knowledge or skills  
               a student has or has not acquired in order to inform  
               instruction and make educational decisions.  (EC § 60644) 

             3)   Requires the governing board of each school district to  
               adopt a local control and accountability plan (LCAP) using  
               a template adopted by the SBE.  Existing law requires each  
               LCAP to include, for the school district and each school  
               within the school district, a description of goals to be  
               achieved for students in each of the state priorities and a  
               description of the actions the school district will take to  







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               achieve those goals.  (EC § 52060)

          The Budget Act of 2013 established a new formula which currently  
          allocates 90 percent of K-12 education funding to local  
          educational agencies.  The Local Control Funding Formula (LCFF)  
          consolidated most of the state's numerous separate funding  
          streams for prescribed purposes and removed most of the former  
          funding restrictions.  The LCFF instead allocates funding  
          according to base rates tied to four grade spans and additional  
          funding based on the number and concentration of English  
          learners, low income students, and foster youth.  


          Proposed Law:  
            This bill requires, by the 2018-19 school year, a public  
          school that enrolls students in grades 1-4, in which less than  
          50 percent of 4th grade students demonstrate proficiency on  
          English language arts standards on the statewide assessment  
          administered in the prior year, must ensure that each student's  
          reading proficiency is measured throughout the school year using  
          at least one of the formative reading diagnostic tools  
          identified by the State Board of Education (Board) to determine  
          if a student has an appropriate developmental reading level for  
          the student's grade level.

          This bill requires the Board to identify a list, and post it on  
          the CDE's website, of formative reading diagnostic tools that  
          can be used by the schools, as referenced above, to assess a  
          student's developmental level of reading proficiency in grades  
          1-3 and define what it means for a student to have an  
          appropriate "developmental reading level," such that the student  
          is on track to reading proficiency by the end of grade 3, as  
          determined by the formative reading diagnostic tools.

          This bill also requires a reading plan to be created for a  
          student in grades 1-3 who is not at the appropriate  
          developmental reading level for the student's grade level as  
          defined by the Board.  The plan must include specified  
          components, among which are the goals and benchmarks for the  
          student's growth in attaining reading proficiency by the end of  
          3rd grade and the type of additional instructional services and  
          interventions the student will receive in reading.  The plan  
          must be provided to the student's parent along with certain  
          specific statements pertaining to the importance of reading  
          competency among children, the risks to students not achieving  







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          reading competency by 4th grade, and the role of the parent with  
          regard to the child achieving reading competency as well as  
          implementing a child's reading plan.  


          Staff  
          Comments:  This bill creates several state-level mandates for  
          schools.  A school district could submit a test claim to the  
          Commission on State Mandates for the requirements included in  
          this bill to obtain a decision on whether these costs are  
          required to be reimbursed by the state.  The activities included  
          in this bill are likely to be determined a reimbursable state  
          mandate even if schools are already implementing the  
          requirements of this bill.  Those schools that may be doing  
          similar work would have to make refinements in their programs to  
          come into full compliance with this bill if it were to be  
          enacted, and those costs, as well as ongoing costs would be  
          reimbursable.
          First, it requires certain schools to ensure that each student's  
          reading proficiency is measured using at least one of the  
          formative reading diagnostic tools identified by the Board to  
          determine if the student is at an appropriate reading level.   
          The schools that are subject to this requirement are those that  
          enroll students in grades 1 through 4, at which less than 50  
          percent of 4th grade students demonstrate proficiency on English  
          language arts standards on the statewide assessment.  Though the  
          state does not use "proficiency" to indicate performance on  
          statewide assessments, this term could be interpreted to mean a  
          student meeting or exceeding the content standard.  


          According to results of the 2015 Smarter Balanced English  
          language arts assessment, 4,058 out of 6,035, or 67.2 percent of  
          schools would be affected by this requirement.  Assuming a like  
          percentage of students in grades 1 through 3 whose reading  
          proficiency would have to be measured, this could affect about  
          954,000 students, regardless of their reading capabilities.   
          This bill also requires that each student's reading proficiency  
          is measured throughout the school year.  Assuming affected  
          schools purchase a diagnostic assessment tool for 67.2 percent  
          of teachers in grades 1 through 3 (about 61,000) and administer  
          it twice per year for one hour, statewide costs could be in the  
          low tens of millions.  Actual costs would be dependent upon the  
          cost of the diagnostic assessment tool used by the school, the  
          time it takes to administer the assessments, and the time it  







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          takes and frequency in which the assessments are administered.


          Second, this bill requires a reading plan to be created for a  
          student in grades 1 through 3 who is not at the appropriate  
          developmental reading level, as defined by the Board.  Assuming  
          the definition of this term yields a similar percentage of  
          students in grade 3 that did not meet the standard on the 2015  
          Smarter Balanced English language arts assessment (41 percent),  
          582,000 students would be required to have a reading plan.  A  
          school could claim costs related to staff time to develop the  
          plan, update the plan as necessary, review the plan at least  
          annually by the school, and implement the "additional  
          instructional services and interventions the student will  
          receive in reading." Statewide costs for these activities could  
          be in the mid hundreds of millions.  


          The author's office indicates that the intent for the plan  
          requirement is to only apply to students not at the appropriate  
          reading level for the subset of schools described above.  In  
          this case, statewide costs for these activities would be in the  
          low hundreds of millions, affecting about 130,000 students.


          Actual costs would depend on a number of factors, including the  
          definition developed by the Board, the time spent on developing  
          and implementing each plan, and the types of services provided  
          to each student.  For example, requiring a parent to read at  
          home with their child would not be a reimbursable cost to the  
          school district but if the plan required additional tutoring  
          time by a teacher or other school employee, this cost could be  
          reimbursable.  This estimate assumes services of two hours per  
          month per student with a reading specialist.  The bill requires  
          a student's reading plan to continue to be implemented until the  
          student demonstrates reading proficiency, so these costs would  
          be ongoing assuming the services required did not change.


          The final mandated activity is related to the requirement that  
          parents are to be provided a copy of their child's reading plan  
          along with specified statements.  This activity could also be  
          reimbursable and could drive statewide costs in the tens of  
          thousands.








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          Finally, this bill provides legislative intent to increase the  
          LCFF base rate for students in kindergarten and grades 1 through  
          3 only at those schools in which 50 percent or more of students  
          in grade 4 score below reading proficiency on a statewide  
          assessment.  A separate provision provides legislative intent to  
          increase the LCFF base rate for grades 1 through 3 to fund the  
          requirements of this bill.  To the extent the state provides  
          funding for these activities, this will likely offset some or  
          all of the mandated activity costs, as determined by the  
          Commission on State Mandates.  It is likely that if funding is  
          provided through LCFF base rates, this will create an  
          administrative burden to adjust the rates to certain school  
          districts to reflect student reading proficiency.


          Recommended  
          Amendments:  Clarify that of the students measured for reading  
          proficiency in certain schools (those with less than 50 percent  
          of 4th grade students demonstrating proficiency on the English  
          language arts standards statewide assessment), only those who  
          are not at the appropriate reading level would be required to  
          have a plan created.  This would reflect the intent of bill  
          according to the author's office.


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