BILL ANALYSIS                                                                                                                                                                                                    






                         SENATE COMMITTEE ON EDUCATION
                               Jack Scott, Chair
                           2005-2006 Regular Session
                                        

          BILL NO:       AB 756
          AUTHOR:        Goldberg
          AMENDED:       June 22, 2006
          FISCAL COMM:   Yes            HEARING DATE:  June 28, 2006
          URGENCY:       No             CONSULTANT:James Wilson

           NOTE:   This bill has been amended to replace its contents  
          and this is the first time the bill is being heard in its  
          current form.
           
          SUBJECT  :  School Finance: Local Flexibility
          
           SUMMARY  

          This bill establishes the Flexible Funding for Pupil  
          Achievement Program to allow school districts that have  
          been identified as in need of improvement by state or  
          federal law to utilize specified categorical funding  
          without state restriction.

           BACKGROUND  

          Chapter 276 of 2005 (SB 1053, Scott)  established the Local  
          Improvement Program as a pilot project to provide  
          participating schools with flexibility in the development  
          and implementation of instructional programs to support and  
          improve pupil learning, with provision to sunset the pilot  
          program in 2010. Participation in this pilot project is  
          limited to no more 15 school districts and not more than  
          five percent of the total number of schools.

          Under the federal No Child Left Behind Act of 2001 school  
          districts that do not make Adequate Yearly Progress (AYP)  
          for each of two consecutive years are identified for  
          Program Improvement.  

           ANALYSIS
           
           This bill:  

          1)   Establishes the Flexible Funding for Pupil Achievement  




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               Program (Program) to be administered by the  
               Superintendent of Public Instruction (SPI).

          2)   Provides that a school district may participate in the  
               Flexible Funding for Pupil Achievement Program if the  
               district meets one or more of the following criteria:

               a)        The district has been identified for program  
                    improvement pursuant to the federal No Child Left  
                    Behind Act.

               b)        The district has at least half of its pupils  
                    enrolled in schools that are ranked in deciles 1-  
                    3 of the Academic Performance Index (API).

               c)        The school district is participating in the  
                    Local Improvement pilot program established by SB  
                    1053 of 2005.

          3)   Provides that a school district that participates in  
               the program is exempt from the program requirements  
               and regulations for the following programs:

               a)        English Language Acquisition Program.
               b)        Home-to-school transportation programs.
               c)        Year-Round School Grant Program. 
               d)        Beginning Teacher Support and Assessment.
               e)        California Peer Assistance and Review. 
               f)        Teacher dismissal apportionment.
               g)        Class Size Reduction for Grade 9.
               h)        Class Size Reduction Program for grades K -  
                    3.
               i)        Bilingual Teacher Training Assistance  
                    Program.
               j)        Regional Occupational Centers and Programs.
               aa)       Agricultural Career Technical Education  
                    Incentive Program.
               bb)       International Baccalaureate Diploma Program.
               cc)       Partnership Academies Program.
               dd)       Supplemental grants.
               ee)       Specialized secondary programs.
               ff)       At-risk youth programs.
               gg)       Apprentice programs.
               hh)       Intersegmental Programs.
               ii)       Civic education program.
               jj)       School safety programs.




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          4)   Provides that the Program does not amend, abrogate, or  
               render unenforceable the provisions of any collective  
               bargaining agreement.

          5)   Commencing with 2007-08, requires the SPI to apportion  
               categorical block grant funds to school districts  
               participating in the program by:

               a)        Determining the amount of funds allocated to  
                    each school district in 2006-07 for the programs  
                    specified.
               b)        Adjust that amount by the increase in  
                    average daily attendance and for the cost of  
                    living adjustment applied to revenue limits.

          6)   Requires participating districts to provide  
               expenditure plans for the funds to the SPI for  
               approval prior to receiving funds.  Further requires  
               the SPI to only approve plans that demonstrate how the  
               resources will be allocated to schools attended by the  
               pupils for which funding was received. 

          7)   Requires the SPI to request private foundation funding  
               to conduct independent evaluations of the planning,  
               implementation, operation, and effectiveness of the  
               Program.

          8)   Provides that the measure becomes inoperative July 1,  
               2012, and repeals on January 1, 2013.
           
           STAFF COMMENTS  

           Related legislation.   AB 2152 (Goldberg) in 2004 would have  
          created a similar program of local flexibility, but AB 2152  
          was vetoed with the following message: 
           
               While I understand the authors intention to address  
               categorical programs, this bill actually limits the  
               flexibility in the allocation of funds to best meet  
               the needs of schools at the local level.  The bill  
               dictates an allocation formula to local districts,  
               instead of allowing school boards the ability to  
               determine the allocation based
                     on their specific needs.





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           SUPPORT  

          None received.

           OPPOSITION  

          None received.