BILL ANALYSIS                                                                                                                                                                                                    Ó





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

          SB 1432 (Huff) - School attendance:  pupil transfer options:   
          school districts of choice
          
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          |Version: April 13, 2016         |Policy Vote: ED. 9 - 0          |
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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 extends the sunset of the "school district  
          of choice" program to July 1, 2022.  It also, among other  
          things, allows a 10 percent cap on the total number of students  
          enrolled in a district of choice at a point in time; requires  
          the Legislative Analyst's Office to submit an evaluation of the  
          program to the Legislature and the Governor; reassigns certain  
          reporting requirements to the Superintendent of Public  
          Instruction; and expands various oversight responsibilities to  
          county superintendents.


          Fiscal  
          Impact:  








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           Administrative costs: The California Department of Education  
            (CDE) estimates costs of $132,000 for one position to gather  
            and report specified information required by this bill.   
            (General Fund)

           Mandate: The requirement for each school district to make  
            information regarding its schools, programs, policies, and  
            procedures available to any interested person upon request,  
            could impose a potentially significant reimbursable state  
            mandate.   If this requirement took each school district one  
            hour, provided a request was made, costs would be in the tens  
            of thousands.  (Proposition 98)

           Cost pressure: This bill provides authority for appeals to be  
            made by parents and complaints to be made by school districts  
            of choice and school districts of residence to the county  
            superintendent of schools.  The superintendent would incur an  
            unknown cost pressure to take time to address any potential  
            appeal or complaint brought forth.  It is unclear whether the  
            Commission on State Mandates would determine this to be a  
            state mandate.


          Background:  Existing law:

             1)   Requires students to attend the public full-time day  
               school or continuation school or classes in which the  
               residency of either the parent or legal guardian is  
               located.  (Education Code § 48200)

             2)   Authorizes the governing board of a school board to  
               declare themselves a school district of choice willing to  
               accept a specified number of inter-district transfers. As a  
               condition of participating in the program, either the  
               district of residence or district of choice may prevent a  
               transfer if the transfer would exacerbate racial  
               segregation.  (EC § 48300, et seq.)

             3)   Requires a school district of choice to select students  
               through a random and unbiased process that prohibits  
               enrollment based upon academic or athletic talent.  It is  
               incumbent upon the school district of choice to ensure that  
               the auditor who conducts its annual financial audit also  
               reviews compliance with the specified selection  
               requirements.  (EC § 48301)







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             4)   Authorizes a school district of residence with an  
               average daily attendance (ADA) of less than 50,000 to cap  
               outbound transfers each year to 3% of its ADA for that year  
               and to cap the maximum number at 10% of its ADA for the  
               duration of the program. A school district of residence is  
               also authorized to limit transfers if it has a negative or  
               qualified status on the most recent budget certification or  
               if a determination is made by the county superintendent  
               determines that the school district will not meet standards  
               for fiscal stability due to the impact of additional  
               transfers, as specified.  (EC § 48307)

             5)   Authorizes a school district of residence with an  
               average daily attendance greater than 50,000 limit the  
               number of pupils transferring out each year to 1 percent of  
               its current year estimated ADA.

             6)   Requires each school district of choice to keep records  
               of: 

                  a)        The number of requests granted, denied, or  
                    withdrawn as well as the reasons for the denials; 

                  b)        The number of pupils transferred out of the  
                    district, as specified; and 

                  c)        The number of pupils transferred into the  
                    district, as specified. 
                    (EC § 48301)

             7)   Further requires, school districts of choice to annually  
               report this information to neighboring school districts,  
               their county office of education, the Superintendent of  
               Public Instruction (SPI) and Department of Finance (DOF),  
               as specified.  The DOF is required to make the information  
               available to the Legislative Analyst. The Legislative  
               Analyst is required to conduct a comprehensive evaluation  
               of the district of choice program, as specified, and submit  
               the evaluation, along with recommendations, to the  
               appropriate legislative education policy committees, and  
               the Governor, by January 31, 2016.  This section is  
               scheduled to sunset July 1, 2017.  (EC § 48300, et seq.)









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          Proposed Law:  
            This bill:
          1)Extends the sunset of the district of choice program to July  
            1, 2022.


          2)Requires, instead of authorizes, all school districts to make  
            information regarding its schools, programs, policies, and  
            procedures available to any interested person upon request.   
            Also it requires, school districts of choice to make public  
            announcements regarding its schools, programs, policies, and  
            procedures during the enrollment period.


          3)Requires, instead of authorizes, if a governing board of a  
            school district elects to operate as a school district of  
            choice and accept transfers, the governing board to adopt a  
            resolution to determine and adopt the number of transfers it  
            is willing to accept and ensure that students that are  
            admitted through this program are selected through a random,  
            unbiased process.  


          4)Requires a school district of choice to post application  
            information on its website, including a form and timeline for  
            a transfer and an explanation of the selection process at the  
            school district.


          5)Amends the audit requirement, clarifying that the compliance  
            review be incorporated into the district's annual audit  
            already required by current law.


          6)Modifies the authorization provided to school districts of  
            residence for implementing existing transfer caps by (1)  
            establishing new procedures by requiring districts of choice  
            to notify districts of residence once a certain percentage of  
            transfers are accepted to that district of choice, and (2)  
            require action by the governing board.


          7)Amends the authorization for districts with an average daily  
            attendance (ADA) of less than 50,000, to cap the maximum  
            number of students transferring out at 10 percent based on ADA  







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            at a point in time, instead of for the duration of the  
            program.  It requires the district to authorize additional  
            students to participate in the program as current program  
            participants leave or graduate.


          8)Authorizes only a school district of residence to prohibit or  
            limit transfers when the governing board determines that the  
            transfer would likely negatively impact a court-ordered or  
            voluntary desegregation plan of the racial and ethnic balance  
            of the school district of residence.


          9)Requires, instead of authorizes, the notification to parents  
            regarding the status of the application, the explanation for a  
            rejected application, and the notification to the district of  
            residence if an application is accepted or provisionally  
            accepted, as specified.


          10)Authorizes a parent of a student that is denied a transfer  
            under this program to appeal that decision to the county  
            superintendent of schools; and authorizes a school district of  
            choice and a school district of residence to bring a complaint  
            alleging a violation of the provisions of the program against  
            one another to the county superintendent of schools.  The bill  
            requires the county superintendent of schools to rely only on  
            the provisions established under this program to determine  
            whether they were applied accurately.


          11)Streamlines the reporting required by school districts of  
            choice to go to the CDE, instead of also to the Department of  
            Finance.


          12)Requires the Superintendent to (1) maintain a list of the  
            school districts of choice in the state; (2) collect specified  
            information from each district of choice; (3) post the  
            previously stated information on the CDE's website; (4) post a  
            single list of all school choice programs on the CDE's  
            website; and (5) report to the Legislature and the Legislative  
            Analyst's Office a description of the plan for collecting data  
            currently required by school districts of choice to collect by  
            July 1, 2017.







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          13)Allows the Superintendent to require the information  
            collected by school districts of choice to be provided through  
            the California Longitudinal Pupil Achievement Data System  
            (CALPADS), or another system administered by the CDE.


          14)Requires the Legislative Analyst's Office to conduct a  
            comprehensive evaluation of the program, as specified, and  
            provide recommendations regarding the extension of the program  
            by January 31, 2020.




          Related  
          Legislation:  SB 597 (Huff, Chapter 421, Statutes of 2015)  
          extended, for one year, the sunset and repeal dates of statute  
          that allows the governing board of a school district to permit  
          the enrollment of pupils who reside in another district by  
          declaring to be a District of Choice (DOC).

          SB 680 (Romero and Huff, Chapter 198, Statute of 2009) extended  
          the inoperative and repeal dates for which school districts are  
          permitted to enroll pupils who reside in another school district  
          by declaring to be a "school district of choice," and repealed  
          the prohibition on new districts electing to become a DOC. 

          AB 1407 (Huff, 2009) would have extended the sunset and repeal  
          dates for the DOC programs for 5 years and required a census  
          report on DOC by California Department of Education by November  
          2010.  The bill was held on the Assembly Appropriations  
          Committee suspense file.

          Staff Comments:  The CDE notes that due to the changes necessary  
          to be made to the CALPADS system, the earliest that data  
          pertaining to school districts of choice could be reported would  
          be the 2017-18 fiscal year.  This bill requires the data to be  
          reported annually.  If the bill is enacted, the operative date  
          would be January 2017.

          Also, staff notes that the school district of choice program is  
          an option available to school districts.  Therefore any  
          requirements as a condition of operating the program would not  







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          be eligible for reimbursement under state mandate law.  Finally,  
          to the extent additional students transfer from non-basic aid  
          districts to a basic aid districts due to this bill, this could  
          generate Proposition 98 savings to the state in an unknown  
          amount.  A basic aid district is a district whose allotment  
          calculated under the Local Control Funding Formula (LCFF) is met  
          entirely with local property tax funds which they get to keep  
          and treat like general purpose funding.  Therefore, the state  
          does not contribute LCFF funding to these districts but under  
          the school district of choice program, these district receive 70  
          percent of the base funding a student would have generated at  
          the home district.





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