BILL ANALYSIS                                                                                                                                                                                                    



                                                                           
           AB 756
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          CONCURRENCE IN SENATE AMENDMENTS
          AB 756 (Goldberg)
          As Amended August 28, 2006
          Majority vote
           
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          |ASSEMBLY:  |     |(May 26, 2005)  |SENATE: |23-12|(August 30,    |
          |           |     |                |        |     |2006)          |
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               (vote not relevant)

          Original Committee Reference:    ED.  

           SUMMARY  :  Establishes the Flexible Funding for Pupil Achievement  
          Program as a 10-year pilot program to provide additional  
          flexibility and accountability for the use of existing resources  
          at the school site in participating elementary, junior high and  
          high schools. 

           The Senate amendments  delete the Assembly version of this bill,  
          and instead:

          1)Establish a pilot program to provide participating schools  
            with the flexibility to use revenues from existing fund  
            sources to best meet the needs of the pupils of the school,  
            and state legislative intent to provide participating schools  
            the freedom to organize the most appropriate education  
            delivery structures to meet the goals of participating schools  
            and school districts.

          2)Limit participation in the program to no more than 5% of the  
            public schools (about 400) from no more than 25 school  
            districts.  Require the Superintendent of Public Instruction  
            (SPI) to monitor the number of schools participating and  
            ensure a balanced representation of schools by school type and  
            geographic setting.  Require school districts to report to the  
            SPI the intent of a school in the district to participate, and  
            require the SPI to notify the school district of the  
            availability of the program for the school.

          3)Provide schools with the flexibility to expend funds allocated  
            for the benefit of the schools, notwithstanding provisions of  
            law governing fund source expenditures, for any purpose  
            consistent with and that furthers the goals of the school's  
            achievement plan and participation agreement, as specified  







                                                                           
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            below.

          4)Require the governing board of a school district to adopt a  
            five-year participation agreement with a school electing to  
            take part in the program, and specify the minimum elements  
            that must be in the agreement, including the following:

             a)   Goals and objectives of the school;

             b)   The amount of per pupil funding to be allocated to the  
               school by the school district;

             c)   Schedule for submitting an annual school budget;

             d)   Community involvement goals of the district; and,

             e)   Requests for bargaining unit agreement waivers and  
               waivers of board policies.

          5)Require that the staff of each participating school annually  
            adopt an achievement plan for the school to ensure that the  
            school meets the goals and objectives specified in its  
            participation agreement.

          6)Require the district superintendent to notify a participating  
            school if it fails to comply with provisions of the  
            participation agreement, and require the principal of a  
            participating school to submit a plan to remedy the lack of  
            compliance.  Authorize the governing board of a school  
            district to revoke a participation agreement if a school fails  
            to meet its goals as established in its annual achievement  
            plan for three consecutive years.

          7)Require a school district to adopt a distribution formula to  
            allocate specified district revenues to an account or accounts  
            established for a participating school.  Specify that the  
            formula shall allocate funds to participating schools from the  
            following sources:

             a)   The revenue limit per pupil enrolled, weighted by grade  
               spans served by the participating school, with weighting  
               factors of 1.00 for grades K-5, 1.04 for grades 6-8, and  
               1.20 for grades 9-12.

             b)   The amount per eligible pupil received by the school  







                                                                           
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               district for each of the following categorical programs  
               multiplied by the number of eligible pupils in the school:

               i)     Pupil Retention Block Grant;

               ii)    Targeted Instructional Improvement Block Grant;

               iii)   School and Library Improvement Block Grant;

               iv)    Grade 9 class size reduction program;

               v)     K-3 class size reduction program; and,

               vi)    Economic Impact Aid.

             c)   The amount per certificated teacher received by the  
               school district for the Professional Development Block  
               Grant multiplied by the number of certificated teachers at  
               the participating school.

             d)   The amount per enrolled pupil in instructional materials  
               funding of the school district multiplied by the number of  
               pupils enrolled at the participating school.

          8)Require a school district to annually allocate an amount  
            calculated according to the formula to one or more accounts  
            for each participating school.  

          9)Authorize a school district to retain up to 10% of the funds  
            allocated pursuant to the formula for administrative and  
            support services costs incurred by the district on behalf of  
            participating schools.  Require the school district to provide  
            technical budgeting assistance to participating schools, and  
            to administer the accounts of the schools, and require that  
            school districts use funds from the 10% set-aside for these  
            purposes.

          10)Require the principal to annually create a budget for the  
            school, in collaboration with the certificated staff of the  
            school and in consultation with schoolsite and parent  
            councils.

          
          11)Require the SPI to develop regulations, as he or she deems  
            necessary, to implement the calculation of the allocation of  







                                                                           
           AB 756
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            funds to participating schools and related fiscal provision.

          12)Require the principal and certificated staff of a  
            participating school to annually prepare and adopt an  
            achievement plan to ensure progress toward the goals and  
            objectives of the school.  Require the plan to address the  
            organization of the school, staffing, curriculum and classroom  
            schedules for the school day.

          13)Require the principal to prepare a report annually to the  
            district superintendent and board on the achievement plan of  
            the school.

          14)Require each teacher at a participating school to establish  
            academic growth goals for each pupil at the beginning of the  
            school year and require measurement of progress toward meeting  
            those goals throughout the year.

          15)Require the principal to promote parent involvement in the  
            education of their children.

          16)Authorize school staff to request approval for limited  
            waivers of compliance with selected provisions of the  
            certificated staff collective bargaining agreement and board  
            policies by the parties to the agreement and the board.

          17)Require the SPI to seek private foundation support for an  
            evaluation of the pilot program.  Specify that the program may  
            not be implemented until resources for the required evaluation  
            have been secured.

          18)Sunset the program after 10 years, as of July 1, 2017.
           
          AS PASSED BY THE ASSEMBLY  , this bill prohibited the State Board  
          of Education (SBE) and the governing board of any local  
          education agency from adopting any instructional material that  
          exceeds 200 pages in length, and encouraged the use of  
          technology and multimedia materials to create higher interest  
          and more up-to-date information from varied sources.

           FISCAL EFFECT  :  According to the Senate Appropriations  
          Committee, no new state costs; potential redirection of program  
          revenues between schools within a school district; up to $100  
          thousand in initial costs to the SPI to track school  
          participation and to adopt a distribution formula.







                                                                           
           AB 756
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           COMMENTS  :  This bill was substantially amended in the Senate and  
          the Assembly-approved provisions of this bill were deleted.

          Related legislation:  SB 1053 (Scott), Chapter 276, Statutes of  
          2005, establishes 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 student learning.  The program is limited to  
          15 school districts and sunsets in 2010.  The SB 1053 workgroup  
          timeline includes issuing a letter of interest and application  
          to the field by October 1, 2006.  Approval of applications by  
          SBE is not scheduled until January 2007.  

          The goals of this bill are similar to AB 2152 (Goldberg) of 2004  
          which was vetoed by the Governor with the following message:
           
               While I understand the author's 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 flexibility to  
               determine the allocation based on their specific  
               needs.

          AB 2152 granted school districts flexibility in the use of  
          categorical funds for specified programs, but required that  
          school districts receiving the categorical funds ensure that  
          specified percentages of those funds be spent for direct  
          services to students enrolled in schools ranked in deciles 1-3  
          on the Academic Performance Index.  The Governor's veto of that  
          measure expressed concern that AB 2152 was too prescriptive in  
          its allocation of funds to individual schools.

          While this bill also prescribes a formula for allocating  
          specified school district revenues to the accounts of  
          participating schools, it addresses the concern of reduced  
          governing board discretion in two ways:  First, once schools are  
          accepted into the pilot program established by this bill, they  
          are required to work in partnership with their school districts  
          to create a plan that outlines the goals and objectives of the  
          school and the manner in which the funds will be spent to  
          achieve those objectives.  Instead of reducing the authority and  
          flexibility of the school district, this bill actually opens up  







                                                                           
           AB 756
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          a forum for dialogue between schools and their districts to  
          determine the specific needs of their pupils and how best to  
          meet those needs.  It creates a structure for a workable  
          partnership, with clear expectations and accountability, between  
          a school district governing board, administration and school  
          site leadership team.

          Second, school districts are authorized by the bill to revoke  
          the participation agreement if a school fails for three  
          consecutive years to meet its goals as established in its annual  
          achievement plan.  Furthermore, because school administrators  
          and staff are employees of the district, they are held  
          accountable to the district not only in terms of their  
          achievement plan but also to meet the goals of their own  
          employment agreements.  

          This bill does not decrease the flexibility of school districts  
          to allocate funds to their schools.  Rather, it creates an  
          opportunity and a structure for increased discussion between a  
          school district and a school to determine how best to allocate  
          resources to meet both school goals and the specific needs of  
          the school's pupils.  The same funds that should already be  
          directed to the schools through existing categorical grant  
          programs will also, under this bill, continue to go to the  
          schools, but with the added bonus of direct discussion between  
          school districts and schools in determining a schools' program  
          goals and expectations, and clear authority and accountability  
          for the use of resources at the school site.


           Analysis Prepared by  :    Michael Ricketts / ED. / (916) 319-2087  
                                                       

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