BILL ANALYSIS
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|SENATE RULES COMMITTEE | AB 45|
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THIRD READING
Bill No: AB 45
Author: Swanson (D), et al
Amended: 7/18/07 in Senate
Vote: 21
SENATE EDUCATION COMMITTEE : 7-1, 7/11/07
AYES: Scott, Alquist, Denham, Padilla, Romero, Simitian,
Torlakson
NOES: Wyland
NO VOTE RECORDED: Maldonado
SENATE APPROPRIATIONS COMMITTEE : 10-7, 8/30/07
AYES: Torlakson, Cedillo, Corbett, Florez, Kuehl, Oropeza,
Ridley-Thomas, Simitian, Steinberg, Yee
NOES: Cox, Aanestad, Ashburn, Battin, Dutton, Runner,
Wyland
ASSEMBLY FLOOR : 47-32, 6/5/07 - See last page for vote
SUBJECT : Oakland Unified School District
SOURCE : Author
DIGEST : This bill establishes a process for the return
of areas of operational control of the Oakland Unified
School District from the Superintendent of Public
Instruction to the districts governing board, triggered by
the finding of the Fiscal Crisis Management Assessment
Team.
CONTINUED
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ANALYSIS : In 2003, SB 39 (Perata), Chapter 24, Statutes
of 2003, appropriated $100 million from the General Fund to
the Superintendent of Public Instruction (SPI) for an
emergency loan to the Oakland Unified School District
(OUSD) and required the SPI to assume all rights, duties,
and powers of the district governing board. SB 39 also
required the SPI to appoint an administrator to act on
behalf of the SPI with authority to enter into agreements
on behalf of the school district and to change any existing
district rules, policies, and practices. SB 39 provided
that the district governing board is not to receive
compensation during the period of the SPI authority over
the district. OUSD has received only $65 million of the
$100 million authorized by SB 39, although the remaining
funds remain available. The loan is scheduled to be
repaid, with interest, over a period of 20 years.
SB 39 required the Fiscal Crisis Management Assistance Team
(FCMAT) to prepare an improvement and recover plan for the
school district and report on the implementation of the
plan. FCMAT issued the Fourth Progress Report on the plan
in September 2006, reporting that the district had met all
standards in the operational area of "Community Relations
and Governance" with an average score of seven on a 10
point scale. Based on this finding, FCMAT concluded that
the operation area was appropriate to return to the control
of the OUSD governing board. The state administrator
formally returned that power to OUSD on July 9, 2007.
SB 39 provided for the SPI to retain authority over the
district until all of the following conditions are met:
1.Two years have elapsed following the appointment of the
administrator.
2.FCMAT completes the improvement plan.
3.FCMAT, consulting with the administrator, determines that
for at least the immediately previous six months the
school district made substantial and sustained progress
in implementation of the plans in the major functional
area.
4.The administrator certifies that all necessary collective
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bargaining agreements have been negotiated and ratified,
consistent with the improvement plan.
5.The district completes all reports required by the SPI
and administrator.
6.The SPI concurs with the assessment of the administrator
and FCMAT that future compliance by the OUSD with the
improvement plan and the multiyear financial recovery
plan.
This bill:
1.Requires the FCMAT to prepare and submit annual progress
reports on the OUSD. Reports are to be submitted to the
Legislature, the SPI and the district's governing board
every March 1 until authority for all operational areas
of the district has been returned to the OUSD governing
board.
2.Defines "operational areas" as:
A. Community relations and governance.
B. Pupil achievement.
C. Personal management.
D. Facilities management.
E. Fiscal control.
3.Requires the governing board and the state administrator
of OUSD, by April 1 every year, execute a memorandum of
understanding (MOU) on the details of returning
authority, and the resulting division of
responsibilities, for any of the operational areas
recommended for return to the school district in the most
recent FCMAT progress report.
4.Provides that if the governing board and the state
administrator fail to reach an agreement by April 1, the
SPI must create a "statement" in lieu of the MOU to
return authority for the operational area and share the
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statement with the governing board.
5.Provides that the SPI's statement is final unless the
governing board, by June 1, presents just cause to an
administrative law judge of the Office of Administrative
Hearings that the statement should be modified.
6.provides that the SPI must return authority for an
operational area recommended for return by FCMAT by July
1.
7.Prohibits the SPI from returning authority over fiscal
control back to the local board until the SPI positively
concludes that the district is a "going concern" and no
longer poses a risk of reverting to policies and behavior
that would require the state to provide an emergency
loan.
8.Requires that the state administrator retain authority,
or be restored to authority, by July 1, over any
operational area that FCMAT recommends be within the
authority of the state administrator.
9.Provides that the members of the OUSD governing board are
entitled to receive full compensation for services, once
authority for one or more operational areas is returned
to the governing board.
Comments
Under current law, power can only be restored to a district
governing board when the SPI concurs with a positive
assessment from FCMAT's progress report that the district
has made significant and sustainable progress in a given
area as measured against agreed upon benchmarks. This bill
will effectively remove the need for the SPI's concurrence
except in the area of fiscal control.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: Yes
Fiscal Impact (in thousands)
Major Provisions 2007-08 2008-09
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2009-10 Fund
FCMAT Report $150 $150
$150 General*
OAL contracting Unknown, likely several
thousands General
*Counts toward meeting the Proposition 98 minimum funding
guarantee
SUPPORT : (Verified 8/30/07)
American Federation of State, County and Municipal
Employees
Board member Alice Spearman, Oakland Board of Education
Board member Christopher Dobbins, Oakland Unified School
District
Board member Gay Plair Cobb, Alameda County Board of
Education
Board member Greg Hodge, Oakland Board of Education
Board member Kerry Hamill, Oakland Board of Education
Board member Noel Gallo, Oakland Board of Education
California ACORN
California Labor Federation, AFL-CIO
California School Boards Association
California Teachers Association
Central Labor Council of Alameda County
Councilmember Jean Quan, City of Oakland
Councilmember Larry Reid, City of Oakland
Councilmember Nancy Nadel, City of Oakland
Councilmember Patricia Kernighan, City of Oakland
Crocker Highlands Elementary School Parent Teacher
Association
Mayor Ronald V. Dellums, City of Oakland
Metropolitan Greater Oakland Democratic club
Oakland Education Association
President David Kakishiba, Oakland Board of Education
Representative Barbara Lee, Member of Congress
Supervisor Alice Lai-Bitker, Alameda County
Supervisor Keith Carson, Alameda County
Supervisor Nate Miley, Alameda County
Trustee Linda Handy, Peralta Community College District
Vice Mayor Henry Chang, City of Oakland
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Wellstone Democratic Renewal Club
OPPOSITION : (Verified 8/30/07)
Department of Finance
Superintendent of Public Instruction
Ed Voice
ASSEMBLY FLOOR :
AYES: Arambula, Bass, Beall, Berg, Brownley, Caballero,
Charles Calderon, Carter, Coto, Davis, De La Torre, De
Leon, DeSaulnier, Dymally, Eng, Evans, Feuer, Fuentes,
Galgiani, Hancock, Hayashi, Hernandez, Huffman, Jones,
Karnette, Krekorian, Laird, Leno, Levine, Lieber, Lieu,
Ma, Mendoza, Mullin, Nava, Parra, Portantino, Price,
Richardson, Ruskin, Salas, Saldana, Solorio, Swanson,
Torrico, Wolk, Nunez
NOES: Adams, Aghazarian, Anderson, Benoit, Berryhill,
Blakeslee, Cook, DeVore, Duvall, Emmerson, Fuller,
Gaines, Garcia, Garrick, Horton, Houston, Huff, Jeffries,
Keene, La Malfa, Maze, Nakanishi, Niello, Plescia, Sharon
Runner, Silva, Smyth, Spitzer, Strickland, Tran,
Villines, Walters
NO VOTE RECORDED: Soto
NC:cm 8/31/07 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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