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 ----------------------------------------------------------------- | | | | | | ----------------------------------------------------------------- |--------------------------------+--------------------------------| | | | |Version: April 13, 2016 |Policy Vote: ED. 9 - 0 | | | | |--------------------------------+--------------------------------| | | | |Urgency: No |Mandate: Yes | | | | |--------------------------------+--------------------------------| | | | |Hearing Date: April 25, 2016 |Consultant: Jillian Kissee | | | | ----------------------------------------------------------------- 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: SB 1432 (Huff) Page 1 of ? 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) SB 1432 (Huff) Page 2 of ? 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.) SB 1432 (Huff) Page 3 of ? 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 SB 1432 (Huff) Page 4 of ? 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. SB 1432 (Huff) Page 5 of ? 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 SB 1432 (Huff) Page 6 of ? 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. -- END --