BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON EDUCATION
                              Senator Carol Liu, Chair
                                2015 - 2016  Regular 

          Bill No:             SB 1381             
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          |Author:    |Mendoza                                              |
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          |Version:   |April 4, 2016                               Hearing  |
          |           |Date:      April  13, 2016                           |
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          |Urgency:   |No                     |Fiscal:      |Yes             |
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          |Consultant:|Lenin Del Castillo                                   |
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          Subject:  Teachers:  grants


            SUMMARY
          
          This bill requires the State Department of Education (SDE) to  
          administer a grant program in which full-time, credentialed  
          teachers would receive varying grants amounts based on their  
          years of service.

            BACKGROUND
          
          Existing law continues implementation of the local control  
          funding formula (LCFF), which was enacted as part of the 2013-14  
          Budget Act.  The LCFF was a significant reform to the state's  
          system of financing K-12 public schools.  It replaces the prior  
          system of revenue limits and restricted funding for a multitude  
          of categorical programs with a new funding formula that provides  
          targeted base funding levels tied to four grade spans for the  
          core educational needs of all students and supplemental funding  
          for the additional educational needs of low-income students,  
          English learners, and foster youth.  The categorical programs  
          that were consolidated include the Professional Development  
          Block Grant which supported professional development activities  
          such as teacher recruitment and retention incentives.  Because  
          the LCFF funds have limited spending restrictions, local  
          education agencies have considerable flexibility to direct LCFF  
          resources to best meet their students' needs.  (Education Code §  
          42238.03)  








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            ANALYSIS
          
          This bill:

          1)   Specifies various findings and declarations of the  
               Legislature, including the following:

                    a)             In the last decade, there has been a 70  
                    percent drop in the number of people preparing to  
                    become California teachers.  Last year, 22,000 new  
                    credentialed teachers were needed, but only 15,000  
                    were acquired.

                    b)             According to the California Teachers  
                    Association, nearly one in three teachers leave the  
                    profession within seven years, 13 percent of teachers  
                    leave the profession by the end of their second year,  
                    and, every year, 10 percent of teachers in  
                    high-poverty schools transfer to other schools.  

          2)   Requires the State Department of Education (SDE) to  
               administer a program providing grants to full-time,  
               credentialed teachers in accordance with all of the  
               following:

                    a)             Commencing with the 2017-18 school  
                    year, and each school year thereafter, a full-time,  
                    credentialed teacher who has completed his or her  
                    first school year of teaching as of the end of that  
                    school year shall receive a grant of one thousand  
                    dollars ($1,000) during the next school year. 

                    b)             Commencing with the 2018-19 school  
                    year, and each school year thereafter, a full-time,  
                    credentialed teacher who has completed two school  
                    years of full-time teaching as of the end of that  
                    school year shall receive a grant of one thousand  
                    dollars ($1,000) during the next school year.

                    c)             Commencing with the 2019-20 school  
                    year, and each school year thereafter, a full-time,  
                    credentialed teacher who has completed three school  
                    years of full-time teaching as of the end of that  
                    school year shall receive a grant of two thousand five  








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                    hundred dollars ($2,500) during the next school year.

                    d)             Commencing with the 2020-21 school  
                    year, and each school year thereafter, a full-time,  
                    credentialed teacher who has completed four school  
                    years of full-time teaching as of the end of that  
                    school year shall receive a grant of two thousand five  
                    hundred ($2,500) during the next school year.

                    e)             Commencing with the 2021-22 school  
                    year, and each school year thereafter, a full-time,  
                    credentialed teacher who has completed five school  
                    years of full-time teaching as of the end of that  
                    school year shall receive a grant of five thousand  
                    dollars ($5,000) during the next school year.

                    f)             Commencing with the 2022-23 school  
                    year, and each school year thereafter, a full-time,  
                    credentialed teacher who has completed six or more  
                    school years of full-time teaching as of the end of  
                    that school year shall receive a grant of five  
                    thousand dollars ($5,000) during the next school year.

          3)   Provides that a qualifying teacher may receive multiple  
               grants in multiple years, but no teacher shall receive more  
               than one grant in a school year.

          4)   Defines a credentialed teacher as a full-time teacher  
               credentialed pursuant to Sections 80021 to 80025,  
               inclusive, of Chapter 1 of Division 8 of Title 5 of the  
               California Code of Regulations, if he or she serves as the  
               teacher of record in a California public elementary or  
               secondary school for a classroom for at least one school  
               day during the taxable year in which the credit is claimed.  
                Credentialed teacher shall not include a teacher who  
               solely possess a 30-day substitute teaching permit, as  
               specified, or a teacher whose sole public school employment  
               as a teacher of record during the school year occurred at a  
               charter school.  

          5)   Defines full-time as a minimum of 35 hours worked per week.  
                

          STAFF COMMENTS








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          1)   Need for the bill.  According to the author's office, "the  
               state's teacher shortage has become so severe that in  
               Sacramento County, two school districts are offering  
               bonuses for new instructors.  In Merced County, three  
               school districts are offering $5,000 bonuses to new  
               teachers.  Similar bonuses are being offered by school  
               districts in Kern County and Monterey County.  However,  
               most school districts do not have the resources to provide  
               these types of bonuses to attract full-time, credentialed  
               teachers to their respective schools."   

          2)   Learning Policy Institute Report.  The Learning Policy  
               Institute (LPI) recently released a report, "Addressing  
               California's Emerging Teacher Shortage:  An Analysis of  
               Sources and Solutions."  In this report, the LPI included  
               the following summary:   "After many years of teacher  
               layoffs in California, school districts around the state  
               are hiring again.  With the influx of new K-12 funding,  
               districts are looking to lower student-teacher ratios and  
               reinstate classes and programs that were reduced or  
               eliminated during the Great Recession.  However, mounting  
               evidence indicates that teacher supply has not kept pace  
               with the increased demand."  The report included the  
               following findings:  

               a)        Enrollment in educator preparation programs has  
                    dropped by more than 70 percent over the last decade.

               b)        In 2014-15, provisional and short-term permits  
                    nearly tripled from the number issued two years  
                    earlier, growing from about 850 to more than 2,400.

               c)        The number of teachers hired on substandard  
                    permits and credentials nearly doubled in the last two  
                    years, to more than 7,700 comprising a third of all  
                    the new credentials issued in 2014-15.

               d)        Estimated teacher hires for the 2015-16 school  
                    year increased by 25 percent from the previous year  
                    while enrollment in the University of California and  
                    the California State University teacher education  
                    programs increased by only about 3.8 percent.









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          3)   Learning Policy Institute recommendations.  The LPI report  
               offered several policy recommendations for consideration.   
               These recommendations include the reinstatement of the  
               California Center on Teaching Careers Cal Teach and the  
               establishment of incentives to attract diverse, talented  
               individuals to teach in high-need locations and fields.   
               This can be accomplished through programs that provide  
               funding for candidates who prepare and teach in such  
               schools and subject areas, e.g. the Assumption Program of  
               Loans for Education.  The report also recommends the  
               creation of more innovative pipelines into teaching, such  
               as high school career pathways or teacher preparation  
               models that encourage and support young people and others  
               to go into teaching in their own communities.  


          4)   Legislative Analyst Office (LAO) assessment.  As part of  
               its Proposition 98 Education Analysis for the 2016-17  
               Governor's Budget released in February 2016, the LAO  
               includes a section on teacher workforce trends in which it  
               examines evidence for teacher shortages in specific areas,  
               identifies and assesses past policy responses to these  
               shortages, and raises issues for the Legislature to  
               consider going forward in terms of new policy responses.   
               In the report, the LAO indicates that the statewide teacher  
               market will help alleviate existing shortages over time and  
               that the shortages may decrease without direct state  
               action.  However, the LAO notes there are perennial  
               staffing difficulties in specific areas, such as special  
               education, math, and science, for which they encourage the  
               Legislature to address with narrowly tailored policies  
               rather than with broad statewide policies.  Specifically,  
               they recommend the Legislature "consider outreach to  
               re-engage former teachers or recruit out-of-state teachers.  
                Both of these strategies are among the most cost-effective  
               for increasing the supply of teachers within California in  
               the short-term.  If the state were to spend one-time funds  
               on outreach, we encourage it to focus specifically on  
               recruiting individuals who are trained to teach in  
               perennial shortage areas.  Outreach can attract viable  
               teachers much faster and at a lower cost than many other  
               shortage policies." 

               The Legislative Analyst Office's report also indicates that  








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               targeted, ongoing salary increases are the most effective  
               type of financial incentive for attracting highly qualified  
               teachers and keeping them in their jobs.  "For example,  
               research finds that providing ongoing salary increases  
               targeted to shortage subjects in hard-to-staff schools have  
               helped districts retain higher qualified teachers.   
               Targeted, ongoing salary increases tend to be more  
               effective than targeted, one-time salary increases, as  
               bonuses provide no incentive to remain teaching in a  
               shortage area after the bonus has been paid."         

          5)   Will it work?  While this bill provides ongoing grants as  
               fiscal incentives to help attract and retain teachers in  
               the profession, it does not target any particular type of  
               school or shortage area.  Rather, the grant program would  
               be based on the number of school years of completion for a  
               credentialed teacher with the amount of each grant  
               increasing to up to $5,000 per year (if the teacher has  
               completed five or more years of service).  The grants are  
               technically not salary increases, but they can be viewed as  
               ongoing stipends and as a result, could provide some  
               financial incentive for prospective candidates and existing  
               teachers.  However, the Committee may wish to consider  
               whether the grants should be targeted at perennial shortage  
               areas such as special education, math, and science.          
                

          6)   Funding?  This bill requires the State Department of  
               Education to administer the grant program but makes no  
               clear provision as to the source of funds for this purpose.  
                Is there an expectation that the Legislature and Governor  
               would appropriate funding for this purpose in the budget?   
               The cost to implement the program would be significant.   
               Assuming there are 295,000 public school teachers statewide  
               that meet the number of years of service necessary to  
               receive the minimum grant of $1,000 each, the bill's annual  
               cost would be a minimum of two hundred ninety-five million  
               dollars ($295,000,000).   


          7)   Additional intent language.  The grants proposed by this  
               bill would be paid to eligible teachers directly from the  
               state, and not transferred to school districts.  As a  
               result, if a state General Fund appropriation is made for  








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               this purpose, it would likely be outside of the Proposition  
               98 minimum guarantee.  As such, at the request of the  
               author, staff recommends that the bill be amended to add  
               additional intent language specifying that the grants  
               described in the bill shall not be considered Proposition  
               98 General Fund revenues appropriated to school districts.

          8)   Technical amendments.  The bill's definition of  
               credentialed teacher references "the taxable year in which  
               the credit is claimed."  As this provision deals with a  
               prior version of the bill, staff recommends a conforming  
               amendment to delete it.  

           SUPPORT
          
          None received.

            OPPOSITION
           
           None received.

                                      -- END --