BILL ANALYSIS
AB 374
Page A
ASSEMBLY THIRD READING
AB 374 (Block)
As Amended June 1, 2009
Majority vote
EDUCATION 11-0 APPROPRIATIONS 13-3
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|Ayes:|Brownley, Nestande, |Ayes:|De Leon, Ammiano, Charles |
| |Ammiano, Arambula, | |Calderon, Davis, Fuentes, |
| |Buchanan, Carter, Eng, | |Hall, John A. Perez, Price, |
| |Garrick, Miller, Solorio, | |Skinner, Solorio, |
| |Torlakson | |Audra Strickland, Torlakson |
| | | | |
|-----+--------------------------+-----+----------------------------|
| | |Nays:|Nielsen, Duvall, Harkey |
| | | | |
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SUMMARY : Requires the Superintendent of Public Instruction
(SPI) to produce a consequences of dropping out (CDO) notice to
inform pupils of the consequences of dropping out of school
prior to reaching 18 years old or completing high school
graduation requirements, as specified. Specifically, this bill
requires :
1)The SPI to make the CDO notice available to school districts
by posting it on the California Department of Education's
(CDE) Web site.
2)The CDO notice to include, but not be limited to, the
following information:
a) Specified consequences of dropping out before high
school graduation, such as reduced income, greater
likelihood of engaging in criminal activity and receiving
public assistance, and the lesser likelihood of properly
caring for and educating children;
b) Rights and procedures of a pupil reenrolling in school
to complete graduation requirements; and
c) The availability of alternative educational services, as
specified.
AB 374
Page B
FISCAL EFFECT : According to the Assembly Appropriations
Committee, one-time General Fund (GF) costs, likely less than
$100,000, to the CDE to develop the CDO notice and post it on
its Web site. In addition, minor absorbable GF cost to maintain
and update the CDO.
COMMENTS : Dropping out of school is a process that stems from
various factors. According to research conducted by Russell
Rumberger, Director of the California Dropout Research Project
at the University of California, Santa Barbara, there are two
types of factors that predict whether students drop out or
graduate from high school: factors associated with individual
characteristics of students, and factors associated with the
institutional characteristics of their families, schools, and
communities. Individual factors that predict whether students
drop out or graduate from high school include: educational
performance, behaviors, attitudes, and background.<1>
The author states, "Recent studies have shown that the high
school dropout rate is nearly 25% statewide, and as high as 33%
in places like Los Angeles. The dropout rate is especially high
among students of color. For African American students it is
41.6% and 30.3% for Latino students. Studies have also shown
that high school graduates create more wealth over their
lifetime, cost the state less money in public benefits, and are
less likely to end up in prison."
California schools are indeed facing a critical dropout problem
as is demonstrated by information from the CDE that estimates a
21.1% dropout rate for the 2006-07 school year. The statistics
show that minority students fare much worse. The dropout rate
for African-American students was estimated at 35.8% and for
Latino students at 26.7%.
High school dropouts experience higher rates of unemployment;
lower earnings; poorer health and higher rates of mortality;
higher rates of criminal behavior and incarceration; increased
dependence on public assistance; and are less likely to vote.<2>
The effects of dropping out are detrimental not only to the
individual student but also to the state and its economy.
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<1>Why Students Drop Out of School: A Review of 25 Years of
Research. California Dropout Research Project Report 15. October
2008.
<2> Ibid.
AB 374
Page C
The California Dropout Research Project finds that over their
lifetimes, each cohort of dropouts costs California state and
local governments $9.5 billion in fiscal losses:
1)$3.1 billion in lost state and local tax revenues
2)$3.5 billion in health expenditures
3)$2.5 billion in crime expenditures
4)$400 million in welfare expenditures<3>
Conversely, the California Dropout Research Project estimates
that if the high school dropout rate for a single year was
reduced by 30% the aggregate savings to state and local
governments would be $1.9 billion, and social gains would amount
to $13.9 billion.<4>
This bill seeks to inform pupils about the potential
consequences of dropping out in an effort to reduce the number
of students that drop out of school.
Arguments in support: The American Federation of State, County
and Municipal Employees (AFSCME) writes, "A high school
education is an important factor to beginning a successful life.
The National High School Center reports high school drop-outs
are more likely to be unemployed, use public assistance, be
single parents, have children at a younger age, and earn
$260,000 less over a lifetime. AFSCME supports this bill in
hopes that the form will make potential drop-outs consider the
consequences of dropping out of high school."
Analysis Prepared by : Marisol Avi?a / ED. / (916) 319-2087
FN: 0001233
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<3>The Economic Losses from High School Dropouts in California.
The California Dropout Research Project Policy Brief 1. August
2007.
<4> Ibid.