BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 173
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          Date of Hearing:   May 13, 2009

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Kevin De Leon, Chair

                    AB 173 (Price) - As Amended:  April 14, 2009 

          Policy Committee:                              EducationVote:8-3

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              Yes

           SUMMARY  

          This bill requires the State Department of Education (SDE) to  
          contract for the development of a new indicator that measures  
          pupil-level growth in academic achievement over time.   
          Specifically, this bill:  

          1)Requires the new indicator to: (a) serve state accountability  
            functions and to measure adequate yearly progress (AYP) for  
            the purposes of the No Child Left Behind Act (NCLB); (b) allow  
            the state to make the assurances required by the federal  
            American Recovery and Reinvestment Act (ARRA), as specified;  
            (c) distinguish among low-performing schools and local  
            education agencies (LEAs) to identify those schools that  
            increase academic achievement; and (d) streamline the  
            eligibility criteria for state resources and support for  
            schools and LEAs in need of improvement.    

          2)Requires SDE to convene an advisory board consisting of  
            various education representatives, to make recommendations  
            relative to modifying assessments, academic content standards,  
            performance expectations, and eligibility criteria for state  
            support and resources of schools and LEAs.    

          3)Requires SDE to contract with a consultant for independent  
            oversight of the project to develop a new academic performance  
            indicator.  This measure requires the Director of Finance to  
            review the request for proposals prior to the SDE entering  
            into a contract and requires the contractor to submit twice  
            annually reports, as specified.  

          4)Requires this measure to be implemented using federal NCLB  
            funds, and specifies release of these funds is contingent upon  








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            an expenditure plan by the Department of Finance.  

           FISCAL EFFECT  

          1)GF/98 costs, likely between $350,000 and $700,000, to contract  
            for the development of a new indicator to measure pupil  
            pupil-level growth in academic achievement over time.  This  
            measure requires that federal NCLB funds be used to pay for  
            the contract.  The 2009 Budget Act allocates $24 million in  
            federal NCLB, Title IV: Assessment and Accountability funding  
            for the state's assessment system.  

          2)GF/98 costs, likely in the tens to hundreds of millions, to  
            establish a new state accountability system that meets both  
            state and federal requirements and modify the state's existing  
            assessment system, as specified.       

           COMMENTS  

           1)Background  .  SB 1X (Alpert), Chapter 3, Statutes of 1999,  
            established the Public Schools Accountability Act (PSAA),  
            which required the development of the state academic  
            performance index (API). The API is used to measure  
            performance of schools and districts over time. An API score  
            is calculated based on students' performance on the following  
            standardized tests: the California Standards Tests (CST) in  
            English language arts, mathematics, and history-social  
            science, and science (where applicable) and the California  
            High School Exit Exam (CAHSEE). 

            The state's pupil assessment system (i.e., the Standardized  
            Testing and Reporting (STAR) Program) measures students'  
            performance in a content area each year at a certain point in  
            time.  As a result, this system does not allow an accurate  
            comparison of a pupil's growth or decline in performance  
            between grade levels.  For example, local education agencies  
            (LEAs) cannot use the state assessments to compare a student's  
            CST mathematics score in third grade with that same student's  
            score in fourth or fifth grade to determine the how well the  
            student has performed.     

            The federal NCLB requires states to measure the percentage of  
            student's proficiency primarily in English and mathematics in  
            a school, a district, or the state.  The API holds schools  
            accountable for improving each year in relation to an  








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            individual school's performance in the prior year (i.e., their  
            overall growth).  In order to comply with federal law, schools  
            and LEAs are held to two different accountability systems:  
            NCLB and the API.  

            In June 2008, the Legislative Analyst Office (LAO) released a  
            report entitled: A New System of Support for Low Performing  
            Schools, which recommends "having one integrated school  
            improvement system [to] overcome many of the shortcomings of  
            the existing dual system."  The LAO further recommends that a  
            new unified system "rely on a measure that determines both a  
            student's level of achievement and the increase in a student's  
            learning from year to year."  

            This bill requires the SDE to contract for the development of  
            a new indicator that measures pupil-level growth in academic  
            achievement over time.  

           2)Should the state completely eliminate the API  ?  Prior to the  
            passage of NCLB, the API functioned as the state's only  
            accountability system based on the STAR assessments.  While it  
            is appropriate to acknowledge that current standardized  
            assessments do not measure a pupil's growth over time, the  
            SDE, at the direction of the Legislature, has explored ways to  
            modify these assessments (see comment #3 below).  Likewise,  
            any modifications to the assessment system would automatically  
            require modifications to the API because the assessments are  
            the basis for a school's API score.  

            NCLB is expected to be reauthorized in the next year or two.   
            As such, it is unclear whether the federal accountability  
            system will be changed to accommodate the state's use of a  
            growth model to measure academic achievement (e.g., API).  The  
            committee may wish to consider whether it is appropriate to  
            completely dismantle the API in order to create a new  
            indicator that accommodates a federal law that may be modified  
            in the near future.  Likewise, the state has invested  
            significant fiscal resources to build its accountability  
            system and to replace it outright at this time of fiscal  
            distress may not be appropriate.         
           
          3)SDE pilot study on academic growth measures  .  The 2007 Budget  
            Act allocated $150,000 in federal Title VI funds to augment a  
            provision in the STAR program contract to conduct a pilot  
            study of academic growth measures using existing longitudinal  








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            data of selected grades and content areas.  The budget bill  
            language expresses legislative intent to "expand this study to  
            evaluate multiple approaches for measuring pupil annual growth  
            on the state standards."  Furthermore, the results of the  
            study were to provide "guidance on the utility of studied  
            growth models to meet state and federal accountability  
            requirements."  

            In May 2008, SDE delivered the study, conducted by the  
            Educational Testing Service (ETS), to the Legislature.  The  
            study examined several options to measuring academic growth  
            within the state's existing assessment system.  If the STAR  
            assessments were designed in a manner that enabled performance  
            levels to mean the same thing at each grade level, the state  
            could accurately measure student gains or losses across years.  
             This change in the assessment system would eventually affect  
            the API because the majority of the index is calculated  
            utilizing assessment scores.  

            Specifically, the pilot study recommended that the state  
            proceed with a regression approach and perhaps consider a  
            vertical scale approach.  However, ETS also provided the  
            benefits and drawbacks of each approach.  

           4)Similar legislation  .  

             a)   AB 429 (Brownley), pending in this committee, requires  
               the PSAA advisory committee, by July 1, 2011, to make  
               recommendations to the Superintendent of Public Instruction  
               for the development of a longitudinally valid assessment  
               system in which annual academic growth can be measured for  
               a school and a pupil over time.

             b)   AB 1130 (Solorio), pending on the Assembly floor,  
               expresses legislative intent to examine the methods for  
               making and reporting comparisons of school and district  
               academic achievement over time, as specified.

             c)   AB 1435 (V. Manuel Perez), pending in this committee,  
               requires the examination of assessment data related to the  
               acquisition of English language proficiency by English  
               learners in order to make potential improvements to the  
               API. 

            








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           Analysis Prepared by  :    Kimberly Rodriguez / APPR. / (916)  
          319-2081