BILL ANALYSIS                                                                                                                                                                                                    






                         SENATE COMMITTEE ON EDUCATION
                               Dede Alpert, Chair
                           1999-2000 Regular Session
                                        

          BILL NO:       SB 1504
          AUTHOR:        Escutia
          AMENDED:       April 13, 2000
          FISCAL COMM:   Yes            HEARING DATE:  April 26, 2000
          URGENCY:       Yes            CONSULTANT:Diane Kirkham


           SPECIAL NOTE:   This bill, one of the Governor's 6 major  
          education bills this year, was discussed at an information  
          hearing held by the Committee on April 5, 2000.  The bill  
          was subsequently amended on April 13, 2000 to reflect the  
          following changes:  1) Allows schools on multi-track year  
          round education schedules to count the number of AP courses  
          available on each track for the purposes of qualifying for  
          the new AP Grant Program;  2) Adds a 4th year to the AP  
          Grant Program, to be funded at $5000 per school;           
          3) Permits a school district that qualifies for first  
          priority under the AP Grant Program to also qualify for  
          first priority under the Governor's proposed Education  
          Technology Grant Program;  4) Includes feeder middle  
          schools in developing a pre-AP program;  5) Provides that  
          pre-AP programs shall include specified components;  6)  
          Allows high schools to utilize the services of county  
          offices of education for the purposes of participating in  
          the AP Grant Program;  7) Requires school districts to  
          notify parents of the availability of state funds to cover  
          the costs of AP examination fees;           8) Makes other  
          minor changes to the bill.
          
           SUMMARY  

          This bill, an urgency measure, establishes the Advanced  
          Placement Challenge Grant Program.

           BACKGROUND  

          The Advanced Placement (AP) program was established over 40  
          years ago by the College Board (a national nonprofit  
          organization) to provide high school students the  
          opportunity to take college-level courses.  The College  
          Board provides secondary teachers with curriculum guides  




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          for 32 AP courses in 21 subject areas.  At the end of the  
          AP course students may take a standardized test  
          administered by the Educational Testing Service which is  
          graded on a scale from 1 to 5 (5 is the highest score).   
          Grades of 3, 4, or 5 qualify students for credits and/or  
          placement into advanced courses at most of the nation's  
          colleges and universities.  The student is charged a fee to  
          take the AP test, currently set at $76 per test.

          In 1998, the Legislature enacted and the Governor signed SB  
          2216 (Escutia) to establish a 5 year pilot program to award  
          grants to school districts for the purpose of reducing the  
          AP exam fee to $5 for economically disadvantaged students.

          Current law requires each school district, at the beginning  
          of the first quarter or semester, to notify parents of  
          specified rights and responsibilities.

           ANALYSIS  

           This bill  , an urgency measure:

          1)   Establishes the Advanced Placement Challenge Grant  
               Program to assist high schools in providing  
               college-level courses to interested and prepared  
               pupils.

          2)   Requires the Superintendent of Public Instruction  
               (SPI) to administer the program beginning in  
               2000-2001.

          3)   Specifies that high schools may receive funding under  
               the grant program in the following priority order:

               a)        First, schools offering 3 or fewer AP  
                    courses, or the case of multi-track schools, 3 or  
                    fewer AP courses per track.

               b)        Second, schools not offering AP courses in  
                    either math or science.

               c)        Third, schools with low college  
                    participation rates.

               d)        Fourth, schools with a majority of pupils  
                    who qualify for free or reduced price meals.




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          4)   Limits the maximum number of schools that may  
               participate in the program to 400 high schools.

          5)   Requires the SPI to award nonrenewable four-year  
               grants for the program in 2000-01 on a competitive  
               basis.  The annual amounts of the grants are $20,000,  
               then $15,000, then $10,000 and finally $5000 over the  
               four-year life of the grant award.

          6)   Specifies that a school district that qualifies for  
               first priority under the AP Grant Program may also  
               qualify for first priority under the Governor's  
               proposed Education Technology Grant Program in order  
               to provide access to on-line AP courses, upon the  
               enactment of AB 1942.

          7)   Specifies that the grants shall be used exclusively  
               for:

               a)        Establishing, training and supporting  
                    "vertical teams of teachers".  (Defines "vertical  
                    teams of teachers" as a group of teachers from  
                    different grade levels in a given discipline.)

               b)        Purchasing instructional materials and  
                    equipment.

               c)        Tutoring and instructional support services  
                    for pupils, both in preparation for and during,  
                    AP coursework.

          8)   Requires a high school that participates in the grant  
               program to: 

               a)        Provide students with access to a minimum of  
                    four AP courses in core curriculum areas by  
                    2001-02.

               b)        Commit to increase the number of pupils in  
                    each AP course who take the AP test to at least  
                    50% or to a 10% increase, whichever is greater.

               c)        Ensure that pupils and parents are informed  
                    about the school's effort to provide access to AP  
                    courses.




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               d)        Utilize services under the Advancement Via  
                    Individual Determination (AVID) program and  
                    encourage students to utilize distance learning  
                    options.

               e)        Include feeder middle schools in developing  
                    a pre-AP program.

               f)        Pre-AP programs shall include specified  
                    components.

          9)   Requires the SPI to contract for an independent  
               evaluation of the Advanced Placement Challenge Grant  
               Program and report findings by August 1, 2002.

          10)  Requires that the funds provided in the program will  
               supplement and not supplant existing programs and  
               services. 

          11)  Allows high schools to utilize the services of county  
               offices of education for the purposes of participating  
               in the AP Grant Program;

          12)  Requires school districts, as a part of  
               already-required parent notifications, to notify  
               parents of the availability of state funds to cover  
               the costs of AP examination fees.

           STAFF COMMENTS  

           1)   Sponsor  

          This bill is sponsored by Governor Gray Davis as part of  
               his 6-bill education package that accompanies his  
               2000-01 Governor's Budget.














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           2)   Funding
           
          This bill does not contain an appropriation.  However the  
               Governor proposes to fund this grant program with $8  
               million to be appropriated in the Budget Bill.  If the  
               program is enacted it would also need an appropriation  
               of $6 million in 2001-02, $4 million in 2002-03 and $2  
               million in 2003-03, , for a 4-year program total of  
               $20 million. The bill proposes to offer nonrenewable  
               four-year grants, with $20,000 made available in the  
               first year, $15,000 in the second year, $10,000 in the  
               third and $5,000 in the fourth.  It is not clear if  
               this is sufficient funding to accomplish the goals of  
               the program.  The Administration has provided staff  
               with the following breakdown of a school's likely  
               first-year expenditures under the program:

                 Professional Development (5 teachers @ $1000 each   
               $5,000
                 Instructional Materials (2 courses @ $3000 each)   
               $6,000
                 Coordinator stipend                                
               $5,000
                 Tutors (4 tutors @ $1000 each; $5.75/per hour)   
                $4,000  
                                                                       
               Total                              $20,000

          The Governor's Budget also proposes increases to other  
               programs that are funded through the Budget Bill and  
               support the Administration's efforts to increase  
               access to AP courses:

               a)        An increase of $5 million for the  
                    Advancement Via Individual Determination (AVID)  
                    program, for a total program of $12 million.   
                    AVID is a college readiness program for  
                    underachieving students in middle and secondary  
                    schools.

               b)        An increase of $3 million for the University  
                    of California's project for the development of  
                    on-line AP courses, for a total of $7 million.

               c)        An appropriation to the Office of Secretary  
                    of Education of $500,000 to contract for services  




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                    to assist school districts that do not currently  
                    offer AP courses in developing options to ensure  
                    access to such courses and to study the current  
                    availability of AP courses.  (The Governor's  
                    Budget proposes no additional funds for the  
                    Department of Education for administering the  
                    Advanced Placement Challenge Program.)

           3)   Legislative Analyst Office Recommendations
           
          The Legislative Analyst's Office finds that the proposal to  
               establish a $8 million Advanced Placement Challenge  
               Grant program is premature.  The LAO indicates:  "We  
               recommend that the Legislature adopt budget bill  
               language requiring the Office of the Secretary for  
               Education to submit a report addressing the problem of  
               access to Advanced Placement (AP) courses, including a  
               comprehensive solution.  We further recommend that the  
               Legislature redirect $8 million for the AP grant  
               program to other legislative priorities, because the  
               grant funds are premature until the Secretary  
               completes his study, identifies the problem and  
               develops a plan to address the issue."

           4)   Why does it matter?  The benefits of taking AP  
               courses.

           AP courses give high school students significant advantages  
               in college admission and in college placement/credit.

          University Admissions:  The University of California and  
               the California State University offer extra grade  
               point credit for grades earned in AP courses.  For  
               example, a student who earns an "A" in an AP course  
               receives 5 grade points, rather than 4; a student who  
               earns a "B" receives 4 grade points, rather than 3.   
               This advantage becomes especially important at the  
               most competitive universities.  For example, the  
               average high school grade point average of the  
               entering freshman classes at both Berkeley and UCLA  
               exceeded 4.0, a feat achievable only with the boost  
               obtained through AP or other honors courses.  This  
               practice first began in 1984.

          College Placement and /or College Credit:  Most colleges,  
               including UC and CSU, grant college credit and/or  




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               higher placement in the college curriculum for  
               students that receive a 3, 4 or 5 on AP exams.  The  
               final decisions on the amount of college credit and  
               the level of placement in college courses appear to be  
               made by individual departments on each campus of UC  
               and CSU.

          These admission and college credit/placement benefits have  
               led to significant growth in enrollment in AP courses  
               in the last decade.  According to a report prepared by  
               the California State University Institute for  
               Education Reform entitled The Advanced Placement  
               Program - California's 1997-98 Experience, "The AP  
               program has grown dramatically in California in the  
               last decade.  In 1988, 39,040 public high school  
               students took 56,668 AP exams.  By 1998, these numbers  
               had grown to 87,683 students sitting for more than  
               145,000 exams."

           5)   Should it matter so much?  

          Although the growth in AP courses over the last decade has  
               occurred largely out of the limelight, a "conventional  
               wisdom" seems to be developing that says substantial  
               AP course taking is synonymous with a "high quality"  
               and "rigorous" high school.  This line of thinking is  
               clearly evidenced in the recent Newsweek article  
               (March 13, 2000) "The 100 Best High Schools" that  
               ranks schools  solely  on the basis of the number of   AP  
               (and IB) tests per graduating senior.  But, is it in  
               the best interests of students to be pushing more and  
               more college-level work into the high schools?  Or  
               have we gotten to this point because of perverse  
               incentives such as the college admission advantages  
               given for taking AP courses?  Should we be focused  
               more on keeping kids from dropping out, getting kids  
               to complete the high school graduation requirements or  
               complete college entrance requirements?  Do we need to  
               step back and examine this "conventional wisdom"  
               before we expect schools to offer more and more  
               college-level work as part of the high school  
               curriculum?  

           6)   Availability of AP Courses

           Despite the huge growth in AP course-taking in the last  




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               decade, California high schools vary widely in the  
               number of AP classes that are offered.  In addition,  
               for those schools that offer AP classes, high schools  
               vary widely in the level of scores that their students  
               achieve on the AP exams.  The Department of Education  
               reports that out of the over 800 regular public high  
               schools in California:

               a)        243 high schools had 3 or fewer AP courses  
                    in 1998-99 (thus qualifying for priority 1  
                    funding under this bill).

               b)        Between 50 and 249 high schools do not offer  
                    either AP math or science (thus qualifying for  
                    priority 2 funding under the bill).

               Generally speaking, the high schools with no AP  
               courses or few AP courses fall into 2 groups:   small,  
               rural high schools and urban high schools, often with  
               disadvantaged populations.  It is likely that very  
               different factors cause the limited availability of AP  
               courses in these two groups.  In the case of small  
               rural schools, simple economies of scale prevent the  
               offering of the advanced courses.  Whereas, in the  
               urban schools the overall student population may be  
               large, but too few students are sufficiently prepared  
               to take on the college-level work. 

           7)   ACLU Lawsuit  

          In July 1999 the American Civil Liberties Union filed a  
               class action lawsuit, Daniel v. State of California,  
               on behalf of several students at Inglewood High School  
               against the state and the Inglewood School District  
               charging that the students were denied adequate and  
               equal opportunities to benefit from AP courses.  The  
               lawsuit indicates that Inglewood High School offers  
               only 3 AP courses, whereas Beverly Hills High School,  
               for example, offers 14 AP courses.  The lawsuit  
               further argues that students without sufficient access  
               to AP courses are disproportionately denied college  
               admission because of the weight placed on AP courses  
               in the college admission process.  The lawsuit alleges  
               that the boosted grade point averages resulting from  
               AP course taking are "practically unattainable" for  
               students that attend school offering few or no AP  




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               courses.  According to the ACLU, "The judge in the  
               case?has temporarily stayed all proceedings to permit  
               a legislative solution to the disparities in lieu of a  
               trial and ultimate judicial determination."

          The ACLU has worked with Professor Jeannie Oakes from UCLA  
               and others to devise a suggested remedy.  The  
               Committee heard a presentation from Dr. Oakes at its  
               information hearing on February 23, 2000.  The  
               proposal presented to the Committee states:  "...a  
               remedy to the inequalities highlighted in the Daniel  
               case must insure that all California high school  
               students have meaningful opportunities to enroll in AP  
               programs.  However, simply requiring a minimum number  
               of AP courses at each school is not sufficient if  
               other conditions for success in these courses are not  
               met."  The proposed remedy goes on to recommend a more  
               comprehensive and systemic reform of high schools with  
               disadvantaged student populations that the authors  
               estimate will cost $70 million per year over a 5-year  
               period.

           8)   Review Admission Practices of Public Universities?

           It appears likely that the growth in AP enrollment has been  
               at least partially spurred by the college admission  
               advantage given to those that have taken AP courses.   
               Various civil rights groups have suggested eliminating  
               the grade point advantage given to such courses by the  
               University of California, particularly in the post  
               Proposition 209 era.  In 1999, the Board of Regents  
               received, but tabled, a proposal from the UC Faculty  
               Senate to cut the grade point advantage given to AP  
               courses in half.  Is it time to have a more in depth  
               review of the impact of the advantages given to AP  
               course takers in the UC and CSU admissions process?   
               Professor Oakes, in her presentation to the Committee,  
               recommended the establishment of a Commission on  
               California Public University Admissions to review and  
               recommend changes to the college admission practices  
               relative to AP courses.

           9)   Promote the Availability of Just AP, or all  
               Honors-Level courses?  

          UC and CSU grant extra grade point credit for four types of  




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               courses:
          a) Advanced Placement;  b) International Baccalaureate;  c)  
               Honors courses approved by UC; and d) College courses  
               that are transferable to UC.  This bill would offer  
               grants to increase the offerings of only one of these  
               types of "honors-level" courses.  Staff recommends  
               that the author address whether the bill should be  
               broadened to offer grants to school 
          districts to increase the availability of any of the types  
               of honors-level courses that are accepted by UC and  
               CSU for extra grade point credit.

           10)  Interrelationship with the Governor's Education  
               Technology Bill?

           The Administration has also proposed the establishment of a  
               new $175 million Education Technology Grant Program  
               (contained in AB 1942 - Reyes).  The proposed  
               Education Technology Program would give first priority  
               to schools that currently offer  no  AP courses.  (Since  
               all high schools in the state will have received  
               funding under the Digital High School Program by  
               2000-01, it is not clear what infrastructure needs  
               schools will have in order to access on-line AP  
               courses.)  Schools would use the first priority  
               funding for equipment and wiring needed to access  
               on-line AP courses.  The Administration estimates that  
               there are  73 regular high schools  in the state that  
               offer  no  AP courses.  Almost all of these schools are  
               small and rural.  (Urban schools with disadvantaged  
               populations tend to offer a few, but a limited number  
               of AP courses.) 

          This bill gives first priority in qualifying for the AP  
               Grant Program to high schools that offer 3 or fewer AP  
               courses.  The Department of Education estimates that  
               there are  243 regular high schools  in the state that  
               offer 3 or fewer AP courses.

          Recent amendments (page 6, lines 9 through 16) specify that  
               a school district that qualifies for first priority  
               under the AP Grant Program may also qualify for first  
               priority under the Governor's proposed Education  
               Technology Grant Program in order to provide access to  
               on-line AP courses.  The use of the word "may" appears  
               to mean that first priority for the education  




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               technology funds may also NOT be granted to schools  
               that have first priority under the AP Grant Program.   
               Staff recommends that the word "may" on page 6, line  
               11, be changed to "shall" in order to ensure that all  
               schools that qualify for first priority status in the  
               AP Grant Program have equal access to the education  
               technology funding.   Staff also notes that necessary  
               corresponding amendments have not yet been made to  AB  
               1942.  
           
           11)  Sunset Date?  

          The bill does not contain a sunset date, even though the  
               program appears to be only a four-year program.  Staff  
               recommends that the bill be amended to include a  
               sunset date.

           SUPPORT  

          None received on this version of the bill.

           OPPOSITION  

          None received on this version of the bill.