BILL ANALYSIS                                                                                                                                                                                                    



                                                                AB 451
                                                                Page  1


        ASSEMBLY THIRD READING
        AB 451 (De Leon)
        As Amended  June 1, 2009
        Majority vote 

         EDUCATION           11-0        APPROPRIATIONS      17-0         
         
         ----------------------------------------------------------------- 
        |Ayes:|Brownley, Nestande,       |Ayes:|De Leon, Nielsen,         |
        |     |Ammiano, Arambula,        |     |Ammiano,                  |
        |     |Buchanan, Carter, Eng,    |     |Charles Calderon, Davis,  |
        |     |Garrick, Miller, Solorio, |     |Duvall, Fuentes, Hall,    |
        |     |Torlakson                 |     |Harkey, Miller,           |
        |     |                          |     |John A. Perez, Price,     |
        |     |                          |     |Skinner, Solorio, Audra   |
        |     |                          |     |Strickland, Torlakson,    |
        |     |                          |     |Krekorian                 |
        |-----+--------------------------+-----+--------------------------|
        |     |                          |     |                          |
         ----------------------------------------------------------------- 
         SUMMARY  :   Makes changes in the support of and resources provided to  
        local educational agencies (LEAs) in corrective action, in order to  
        assist in their improvement efforts and in improving the academic  
        achievement of schools under their jurisdiction.  Specifically,  this  
        bill  :

        1)Deletes the Early Warning Program established to identify LEAs in  
          danger of entering Program Improvement (PI) status under the  
          federal No Child Left Behind (NCLB) Act.

        2)Clarifies that a one-year, nonrenewable improvement grant  
          (Improvement Grant) provided to an LEA identified for corrective  
          action are to assist the LEA in its improvement process, including  
          improving the academic achievement of its schools identified for  
          PI.

        3)Increases the per school grant award for an Improvement Grant  
          provided to an LEA identified for corrective action by $50,000 in  
          each of the three severity categories used to group LEAs to tie  
          the strength of the corrective actions to need.

        4)Requires that the Superintendent of Public Instruction (SPI)  
          consider whether an LEA with schools in PI Year 4 or 5 received an  
          Improvement Grant, when recommending sanctions or whether the LEA  








                                                                AB 451
                                                                Page  2


          be required to contract with a District Assistance Intervention  
          Team (DAIT) or other provider to the State Board of Education  
          (SBE).

        5)Requires, for fiscal year (FY) 2009-10 only, that a LEA that  
          received a sanction prior to 2010 and received an Improvement  
          Grant be provided with additional funds equal to the difference  
          between the amount previously approved and the new amounts  
          specified in 3) above.

        6)Authorizes LEAs, not in corrective action, with schools in PI Year  
          4 or 5 and beyond to apply for an Improvement Grant and to  
          contract with an outside entity, including an approved schoolsite  
          assistance and intervention team (SAIT); requires, as a condition  
          of receiving these funds, the LEA to:

           a)   Provide schools in PI Year 4 or 5 and beyond with funding to  
             implement technical assistance to improve achievement (with a  
             focus on subgroups), assess the current schoolsite plan within  
             60 days of receiving funding, identify any deficiencies that  
             exist within operations of the schoolsite, and include the  
             district liaison team.

           b)   Establish a district school liaison team to coordinate with  
             schools in PI Year 4 or 5 and beyond on these improvement  
             activities, work with schoolsite staff, reexamine current  
             schoolsite conditions and efforts to improve school  
             performance, and ensure the consistency of the assessment of  
             the schoolsite plan.

           c)   Ensures that all pupils enrolled in schools in PI Year 4 or  
             5 and beyond continue to have the option to transfer to another  
             public school served by the LEA, and continue to have  
             supplemental educational services available to them.

        7)Establishes that, subject to the availability of funds in the  
          Budget Act, the funding rate for the Improvement Grant available  
          to LEAs with schools in PI Year 4 or 5 and beyond be $150,000 per  
          school identified as PI Year 4 or 5 and beyond in the LEA, and  
          requires that the CDE give first priority for funding to schools  
          in PI Year 5, with a minimum of 85% of the grant utilized to  
          improve academic achievement in those schools in PI Year 4 or 5  
          and beyond.









                                                                AB 451
                                                                Page  3


        8)Authorizes an LEA, with schools in PI Year 4 or 5 and beyond, to  
          provide Improvement Grant funds to PI schools in Year 4 or 5 and  
          beyond in order to allow the schools to provide:

           a)   Assistance to schoolsite staff in analyzing pupil assessment  
             data to improve academic achievement, with focus on significant  
             subgroups.

           b)   Professional development that is based on scientifically  
             based research, the state-adopted academic content standards,  
             and addresses the instructional needs of pupils, with focus on  
             English language learners and pupils with special needs.

        9)Defines "LEA with schools in PI Year 4 or 5 and beyond" to include  
          a school district, county office of education and direct-funded  
          charter school, to the extent that these entities serve pupils in  
          kindergarten or any of grades 1-12; also requires that these  
          provisions become operative only if an appropriation is made for  
          this purpose.

        10)Requires, as a condition of apportionment, LEAs receiving an  
          Improvement Grant to provide annual reports of specified  
          evaluation data as requested by the SPI.

         EXISTING FEDERAL LAW  , under NCLB:

        1)Requires all states to implement statewide accountability systems  
          based on state standards in reading and mathematics, annual  
          testing for all students in grades 3-8, and annual statewide  
          progress objectives ensuring that all groups of students reach  
          proficiency within 12 years; also requires each state to annually  
          review the performance of each LEA receiving funding under Title  
          I, and identify any LEA that has not met its Adequate Yearly  
          Progress (AYP) criteria for two consecutive years for PI.

        2)Requires an LEA not meeting AYP criteria beyond those two  
          consecutive years, to provide certain types of required services  
          and/or corrective actions during each subsequent PI year, and  
          allows an LEA to exit PI, if it meets AYP for two consecutive  
          years.

         EXISTING STATE LAW  :  

         1)Authorizes the CDE and SBE to develop objective criteria by which  








                                                                AB 451
                                                                Page  4


          a LEA identified for corrective action and subject to a sanction  
          is to be evaluated to determine the pervasiveness and severity of  
          its problems, and thus type of sanction to be imposed and the  
          level of federal improvement funding to be provided.

        2)Subjects a LEA that is identified for corrective action under NCLB  
          to one or more sanctions, as recommended by the SPI and approved  
          by the SBE; also allows the SPI and SBE to require, in addition to  
          any approved corrective action, an LEA to contract with a DAIT to  
          provide support for the LEA's instructional reform efforts.

        3)Authorizes a LEA identified for corrective action to apply for an  
          Improvement Grant to assist in its improvement process, and  
          requires that the amount of the Improvement Grant be based on  
          whether the agency has extensive and severe, moderate or minor  
          performance problems, and the number of schools in the LEA  
          identified for PI. 

         FISCAL EFFECT  : According to the Assembly Appropriations Committee,  
        one-time federal fund costs of approximately $169 million in FY  
        2009-10 and $99 million in FY 2010-11 to the CDE to implement this  
        measure.

         COMMENTS  : NCLB establishes specific annual targets for both  
        participation in state testing and for academic achievement.  Any  
        school or LEA not meeting those targets (either as a whole or for  
        any numerically significant subgroup) is deemed to not have met AYP  
        and enters PI status.  A school or LEA not meeting AYP criteria  
        beyond two consecutive years (i.e., in PI Year 3) is required to  
        provide certain types of services to pupils and/or to implement  
        corrective actions or sanctions specified by the SPI and SBE during  
        each subsequent year it is identified as PI.  In addition to these  
        sanctions the SPI may recommend, and the SBE approve, the  
        requirement that an LEA contract with a DAIT.  A school or LEA is  
        allowed to exit PI if it subsequently meets AYP for two consecutive  
        years.

        Ninety-seven California LEAs, 96 school districts and one county  
        office of education, reached the point in early 2008, where  
        corrective actions were applied.  At its March 2008 meeting the SBE  
        approved the SPI's recommendations with respect to those LEAs, which  
        provided an approach that used specific criteria, based on the  
        severity of the problems or reason for failing to meet AYP, to  
        categorize these LEAs into severe, moderate or minor groupings.   








                                                                AB 451
                                                                Page  5


        This approach was intended to tie the strength or approach of the  
        corrective actions to the need faced by the LEA; sanctions applied  
        to those 97 LEAs ranged from assignment of a DAIT and appointment of  
        a trustee (severe) to the requirement that the LEA plan be amended  
        to target those issues that led to the AYP failure (minor).  CDE  
        estimates that an additional 50 LEAs in 2008-09 and 35 in 2010-11  
        will require corrective actions, and that more than half of all LEAs  
        will do so by 2012-13.  CDE estimates that for the current year  
        there are 250 LEAs in PI status.

        Consistent with the actions taken with respect to the 97 LEAs  
        earlier in 2008, the Legislature enacted AB 519 (Assembly Committee  
        on Budget), Chapter 757, Statutes of 2008, a trailer bill to the  
        Budget Act of 2008, which provided the authority to allocate $112.7  
        million in federal funds through the establishment of a funding  
        formula for state intervention for LEAs, who are in the third year  
        of PI and facing corrective actions under NCLB.  This bill  
        authorized the CDE and SBE to develop objective criteria by which a  
        LEA identified for corrective action and subject to a sanction is to  
        be evaluated to determine the pervasiveness and severity of its  
        problems and thus the type of sanction or sanctions to be imposed;  
        it also authorized LEAs to apply for an Improvement Grant to assist  
        in its improvement process and to expend that grant funding over the  
        time period allowable under federal law.  The grants are funded by  
        federal monies available for this purpose, including Title I  
        set-aside and school improvement grants.  AB 519 established three  
        levels of grant, corresponding to the severe, moderate and minor  
        categories, and specified that a per school identified for PI grant  
        amount would be paid to LEAs identified for corrective actions.   
        Thus the LEA would receive a total grant equal to the appropriate  
        per school grant amount multiplied by the number of PI schools in  
        the LEA.

        This bill eliminates the existing early warning system designed to  
        assist LEAs who are moving toward being identified for corrective  
        actions, and instead focuses resources on the LEAs and schools in  
        greatest need.  The bill provides this focus by increasing the per  
        school amount provided in the Improvement Grant available to LEAs in  
        corrective action, by establishing a process to provide resources to  
        LEAs with schools in PI Year 4 or 5 and beyond in order to assist  
        those LEAs in their improvement efforts, and by clarifying that  
        improvement funding  provided to LEAs identified for corrective  
        action are meant to assist the LEA in its improvement process,  
        particularly in improving the academic achievement of PI schools  








                                                                AB 451
                                                                Page  6


        under its jurisdiction.

        Assembly fiscal staff report that in 2008-09, California received  
        approximately $1.8 billion in federal Title I funds; 4%,  
        approximately $70 million, of which is Title I set-aside dedicated  
        by the federal government for improving schools and LEAs in PI  
        status.  In addition, the state received $16.6 million in federal  
        funding in 2007 for PI schools under the new School Improvement  
        Grant (SIG).  The recently passed the American Recovery and  
        Reinvestment Act (ARRA) included approximately $1.5 billion for  
        Title I to support supplemental services for needy pupils; this will  
        include an expected $45 million in Title I "set-aside" and  
        approximately $380 million in SIG funding in addition to the annual  
        allocations already mentioned.  

        According to the author, "California has a unique opportunity with  
        base federal Title I "set-aside" funding and ARRA (i.e., both Title  
        I and SIG) to provide PI schools in year four and five with  
        additional resources to gain technical assistance to improve  
        academic achievement.  This bill implements a structure that  
        provides federal funding to LEAs with PI schools in year four and  
        five to reassess their schoolsite plans and make recommendations to  
        improve academic achievement.  Likewise, the measure establishes a  
        structure for LEAs to work collaboratively with these schools in  
        this process."

        Related and previous legislation: AB 683 (Chesbro), pending in  
        Assembly Education, creates an urgency statute that provides a  
        one-year, non-renewable federal improvement grant to LEAs that are  
        identified for corrective action and sanctions under NCLB, but that  
        have no schools in PI status.  AB 519 (Assembly Committee on  
        Budget), Chapter 757, Statutes of 2008, a trailer bill to the Budget  
        Act of 2008, provides statutory authority to allocate $112.7 million  
        in federal funds through the establishment of a funding formula for  
        LEAs PI Year 3 status and facing corrective actions under NCLB; also  
        authorizes the CDE and SBE to develop objective criteria by which a  
        LEA identified for corrective action and subject to a sanction is to  
        be evaluated to determine the pervasiveness and severity of its  
        problems, the type of sanction to be imposed, and the level of grant  
        to be funded.  AB 953 (Coto), Chapter 513, Statutes of 2005, amends  
        the State program to support LEAs and schools in PI.  AB 2066  
        (Steinberg), Chapter 579, Statutes of 2004, establishes a federally  
        required assessment and intervention process to assist school  
        districts, county offices of education and certain charter schools  








                                                                AB 451
                                                                Page  7


        that are in need of program improvement under NCLB.


         Analysis Prepared by  :    Gerald Shelton / ED. / (916) 319-2087
                                                                  FN: 0001234