BILL ANALYSIS                                                                                                                                                                                                    




                   Senate Appropriations Committee Fiscal Summary
                           Senator Tom Torlakson, Chairman

                                           400 (Nunez)
          
          Hearing Date:  08/30/07         Amended: 07/18/07
          Consultant:  Dan Troy           Policy Vote: ED 6-1
          _________________________________________________________________ 
          ____
          BILL SUMMARY:   AB 400 would require the Superintendent of  
          Public Instruction (SPI), commencing with the 2009-10 fiscal  
          year to incorporate several elements to the Academic Performance  
          Index (API) for schools serving pupils in grades 9-12,  
          including: 

          1) High school graduation rates. 
          2) Rates by which pupils complete a course of study that meets  
          the requirement for admission to the University of California  
          (UC) or the California State University (CSU).
          3) Rates by which pupils complete career technical education  
          (CTE) courses that provide skills and knowledge necessary to  
          attain entry-level employment upon graduation, as measured by:
          - CTE course completion.
          - The number of pupils earning licenses or certificates. 
          - The outcomes on valid occupation specific or general workforce  
          assessments, including portfolio assessment, and/or workforce  
          outcomes, such as employment rates and earnings.

          This bill would also reduce the percentage by which test scores  
          are required to constitute the API from 60% (test scores  
          currently constitute 100% of the API as other specified elements  
          have not been incorporated) to 50%, and requires that the new  
          elements provided by the bill would constitute the other 50% no  
          later than June 30, 2014.  The SPI would be authorized to  
          convene an advisory committee to provide recommendations for  
          implementing these changes, and to develop recommendations for  
          inclusion of multiple API measures for middle and junior high  
          schools.
          _________________________________________________________________ 
          ____
                            Fiscal Impact (in thousands)

           Major Provisions         2007-08      2008-09       2009-10     Fund
                                                                  
          API revision                     $350                      
          General











          LEA data collection                                           
          Millions, annually                 General*

          *Counts toward meeting the Proposition 98 minimum funding  
          guarantee
          _________________________________________________________________ 
          ____

          STAFF COMMENTS: SUSPENSE FILE. AS PROPOSED TO BE AMENDED.
          
          Chapter 3/1999 (SB 1x, Alpert) authorized the API as means of  
          combining multiple measures into a single indicator that would  
          allow for school to school comparisons.  In 

                                         -1-

          Page 2
          AB 400 (Nunez)

          addition to test scores, which were required to constitute at  
          least 60% of the API, the API was required to include other  
          factors such as attendance rates, and graduation rates.  These  
          other factors have not been incorporated into the API as the  
          data needed to calculate them is not yet reliable.  With the  
          CALPADS system in full operation by the 2009-10 fiscal year, it  
          should be possible to begin the process of accurately tracking  
          dropout and graduation rates, as the system will have the  
          capacity to track each student through unique student  
          identifiers.  

          By adding new factors to the API, this bill would result in  
          costs for the Department of Education (SDE).  The cost of  
          developing new indicators, including the addition of one new  
          consultant, other staff time, workload related to advisory  
          committee and subcommittee meetings, and providing for the  
          attendance of appropriate experts at these meetings.  Further,  
          there could be additional unknown costs related to the  
          collecting and incorporation of college preparation and CTE  
          coursework.  Currently, districts are not required to collect or  
          report this data to SDE, so it is unknown how difficult it would  
          be to collect this data in a way that will lead to useful input  
          into the API.

          Similarly, there would be potentially significant costs for  
          districts to compile this information and report it to SDE in a  










          usable format.  Earlier versions of AB 1656 (Feuer) would have  
          provided over $30 million to local education agencies for the  
          costs of collecting, maintaining, and reporting required data  
          elements to SDE.  This bill would add further requirements that  
          could drive significant new costs for districts to comply.   
          These costs are unknown, but are potentially in the millions.  

          Staff recommends amending the bill to provide that test results  
          will continue to make up at least 50% of the API through the  
          2013-2014 fiscal year.  The current version of the bill  
          immediately deletes the requirement that test results constitute  
          at least 60% of the API but is inadvertently silent on the issue  
          until 2014 when scores must constitute exactly 50%.   Providing  
          a floor of 50% in the interim would ensure the consistency of  
          the index.

          AB 519 (Mendoza), currently awaiting action on the Senate floor,  
          would require the SPI to define the term "dropout" and prepare a  
          plan to include dropouts in the API.  SB 219 (Steinberg),  
          currently before the Assembly Appropriations Committee, would,  
          among other activities, require the API to include 8th and 9th  
          grade dropout data and high school graduation rates when  
          feasible.

          As proposed to be amended:  Author's amendment would specify  
          that test scores would constitute at least 60% of the API until  
          July 1, 2009, and at least 50% thereafter.