BILL ANALYSIS                                                                                                                                                                                                    






                          SENATE COMMITTEE ON EDUCATION
                               Gloria Romero, Chair
                            2009-2010 Regular Session
                                         

          BILL NO:       AB 451
          AUTHOR:        De Leon
          AMENDED:       June 1, 2009
          FISCAL COMM:   Yes            HEARING DATE:  July 15, 2009
          URGENCY:       No             CONSULTANT:James Wilson

           SUBJECT  :  Public Schools Accountability Program
          
           SUMMARY  

          The bill increases grant amounts available to school  
          districts, county offices of education and charter schools  
          that have been identified under federal law for corrective  
          action, and expands eligibility for grants to districts that  
          have schools that have been identified for corrective action  
          for several years, even though the districts themselves have  
          not been identified for corrective action.

           BACKGROUND  

          Under the Elementary and Secondary Education Act (ESEA, also  
          known as the No Child Left Behind Act of 2001) schools and  
          districts must make Annual Yearly Progress (AYP) towards the  
          goal of all students reaching state-defined proficiency  
          levels by 2013 - 2014.  Schools and school districts that  
          accept federal compensatory education funding under Title I  
          of the ESEA that fail to meet AYP targets for two consecutive  
          years enter Program Improvement (PI). Upon entering PI, both  
          schools and districts must conduct a self assessment and  
          develop a reform plan with the help of a technical assistance  
          provider. Program Improvement districts receive technical  
          assistance through a regional support system, the Statewide  
          System of School Support (S4). In turn, districts provide  
          technical assistance and support to PI schools.  

           When  districts  fail to meet performance targets after being  
          in PI for two years, the State Board of Education is required  
          to impose one of the following corrective actions:

             1.   Defer programmatic funds or reduce administrative  
               funds.




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             2.   Institute a new curriculum.
             3.   Replace school district personnel.
             4.   Remove schools from jurisdiction of school district  
               and establish other public governance supervision.
             5.   Appoint a trustee in place of the superintendent of  
               school board.
             6.   Abolish or restructure the school district.
             7.   Authorize students to transfer to other school  
               districts.



          When  schools  fail to meet performance targets after being in  
          program 
          improvement (PI) for two years, school districts are required  
          to impose one of the following corrective actions:

             1.   Replace responsible staff.
             2.   Implement new curriculum.
             3.   Significantly decrease management authority at school  
               level.
             4.   Appoint an external expert to advise the school.
             5.   Restructure internal organization of the school.

          If PI schools fail to meet performance requirements after  
          entering corrective action, districts must prepare a  
          restructuring plan that must be implemented within one year.  
          Options include:

             1.   Reopen school as a charter.
             2.   Replace most of the school staff.
             3.   Hire private management company to operate school.
             4.   Turn the operation over to the State Department of  
               Education.
             5.   Other major restructuring.
           
           BothTitle I, set-aside funding and School Improvement Grants  
          (SIGs) are available to support school improvement efforts.  
          However, the two funding sources have different requirements.  
          States are required to set-aside 4 percent of their Title I  
          grant to support school improvement efforts, including the  
          S4.

          However, if the state determines that available funding  
          exceeds identified school improvement needs, federal law  
          allows the state to allocate excess funds using the Title I  




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          basic formulas. The SIG funds are somewhat more restrictive,  
          in that funds cannot be used for statewide technical  
          assistance. Grants also are subject to minimum ($50,000 per  
          PI school) and maximum ($500,000 per PI school) amounts. 

          In 2008-09, a budget trailer bill, AB 519 (Chapter 757 of  
          2008) authorized the allocation of $112.7 million of federal  
          SI and Title I set-aside funds to school districts and county  
          offices that are in corrective action. 

                 Tier 1: Districts with the most severe problems are  
               assigned a District Assistance and Intervention Team  
               (DAIT) and receive $150,000 per PI school.

                 Tier 2: Districts with moderate problems must  
               contract with a state-approved DAIT and receive $100,000  
               per PI school.

                 Tier 3: Districts with minor problems must contract  
               with an external technical assistance provider and  
               receive $50,000 per PI school.

          At this time 142 districts and 5 county offices of education  
          have been identified for corrective action, and an additional  
          35 districts are expected to enter corrective action in  
          2009-10.   


           ANALYSIS
          
           This bill  :

          1)   Increases the per school grant award for an Improvement  
               Grant provided to a school district, county office or  
               charter school (Local Educational Agency or "LEA")  
               identified for corrective action by $50,000 in each of  
               the three tiers, so that:

               a)        LEAs with severe problems receive $200,000 per  
                    PI school.

               b)        LEAs with moderate problems receive $150,000  
                    per PI school.

               c)        LEAs with minor problems receive $100,000 per  
                    PI school.




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          2)   Allows LEA's that already received Improvement Grants at  
               the lower per school rates set by SB 519 to receive the  
               additional $50,000 increments in 2009-10.

          3)   Authorizes LEAs, not in corrective action, with schools  
               in Year 4 or 5 (or later) of program improvement (PI) to  
               apply for a one-time Improvement Grant of $150,000 per  
               school provided that, as a condition of receiving funds,  
               the LEA must:

               a)        Ensure that a minimum of 85 percent of the  
                    one-time grant is used for technical assistance  
                    activities to improve the academic achievement of  
                    pupils at the schools in year 4 or 5 of PI. The  
                    remaining 15 percent may be used for assistance to  
                    any PI schools in the district.

               b)        Provide schools in year 4 or 5 of PI with  
                    funding to implement technical assistance to  
                    improve academic achievement, with focus on  
                    significant subgroups, pursuant to federal law.

               c)        Establish a district school liaison team to  
                    coordinate with schools in year 4 or 5 of PI to  
                    improve academic achievement. 

               d)        Assess, in concert with the district liaison  
                    team and within 60 days, the schoolsite plans of  
                    schools in year 4 or 5 of PI to identify program or  
                    operational deficiencies and make recommendations  
                    to address deficiencies in academic achievement,  
                    with focus on significant subgroups. For PI schools  
                    in year 5, the assessment must include specific  
                    recommendations to implement federal restructuring  
                    requirements.

               e)        Ensure that all eligible pupils enrolled in a  
                    PI school in year 4 or 5 continue to have the  
                    option to transfer to another public school in the  
                    LEA and continue to have supplemental educational  
                    services available to them pursuant to federal law.  


          4)   Requires that the Superintendent of Public Instruction  
               (SPI) and State Board  consider whether the Local  




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               Educational Agency (LEA) received funding for the II/USP  
               or HP programs when determining whether the LEA  must  
               contract with a district assistance and intervention  
               team.  

          5)   Declares that the provisions authorizing LEAs that are  
               not in corrective action to apply for an Improvement  
               Grant will become operative only if an appropriation is  
               made for that purpose.

          6)   Requires all LEAs receiving an Improvement Grant, as a  
               condition of receiving the funds, to report evaluation  
               data requested by the SPI including such data as will  
               show how school improvement strategies were effective in  
               increasing student achievement.

          7)   Repeals a state Early Warning Program that was intended  
               to provide federal funds to school districts at risk of  
               entering Program Improvement. 

           STAFF COMMENTS  

           1)   Previous legislation.  The State has repeatedly attempted  
               to improve the instructional outcome in low performing  
               schools over the years with such programs as the  
               Immediate Intervention/ Underperforming Schools Program  
               (II/USP) which was replaced by the High Priority Schools  
               (HP) program.

           2)   Disappointing Results.    An independent evaluation of  
               the state's High Priorities School Grant Program (HPSGP)  
               found that "On average, the state's lowest-performing  
               schools progressed during the period of HPSGP  
               implementation. Although the schools participating in  
               this program did not show gains that statistically  
               differ from non-participating 
               schools. ? The challenge facing the state's  
               lowest-performing schools are daunting. (and). It may  
               simply be that the HPSGP was not enough. Ongoing systems  
               of supplemental fiscal resources, selective staff  
               placement, and other support are needed to substantially  
               impact student outcomes in the state's most challenged  
               schools. Given the primary purpose of the program, some  
               may say that the finding of no substantial difference in  
               student performance between HPSGP and comparison schools  
               is the only result that matters. As this is the third  




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               study issued on behalf of the state showing virtually no  
               return in terms of enhanced student performance from the  
               HPSGP and its predecessor II/USP, the question of  
               whether to continue to invest in HPSGP-type  
               interventions should be carefully considered by policy  
               makers. We recommend that the state's commitment to  
               low-performing schools not be diminished, but enhanced  
               and re-directed. Because the current investments have  
               not fully yielded the desired results, the need for a  
               bolstered state commitment to equal educational  
               opportunities for all children in California is perhaps  
               greater than ever. "

           3)   Opportunity Costs.    Given the current fiscal climate,  
               the federal funds available for school improvement may  
               be one of the few opportunities available to the state  
               this year to make a strategic investment in school  
               reform.  The Legislative Analyst has identified a total  
               of $596 million of federal funds that are available for  
               school improvement (SI) in 2009-10.  This total is  
               comprised of $127 million of "regular SI funding,  
               one-time stimulus funding of $391 million for SI and $45  
               million for Title I set-aside and $78 million of  
               (one-time) funds still available from prior year grants.

          The Legislative Analyst Office (LAO) sees several options for  
               use of the available federal funding. Increasing per  
               school grant amounts and expanding eligibility for  
               grants to Non-PI districts that have program improvement  
               (PI) schools, as proposed in this measure, are among the  
               LAO's options, but even if the $153 million cost of this  
               bill for 2009-2010 is taken from the one-time funding  
               available, there will still be $283 million of one-time  
               funding left uncommitted. ($391+$45 -$153= $283).   

           4)   Can the state find a more effective way to improve pupil  
               performance with these federal funds?   This measure  
               proposes to continue the past practice of providing  
               additional funding in order to implement reforms based  
               upon needs assessment, expert assistance and  
               intervention. As the evaluation of the High Priority  
               Schools program shows that this approach has had little  
               effect, the state must be able to find more effective  
               ways to help pupils in struggling schools to succeed.  
               Staff recommends that serious consideration be given to  
               using available federal school improvement funds in the  




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               most effective manner possible.  Previous efforts to  
               assist low performing schools, such as the High Priority  
               Schools Program, have been developed by conference  
               committees.  Perhaps this measure, and similar efforts  
               to address the urgent needs of our lowest performing  
               schools could be directed to a conference committee that  
               would consider all proposals for the most effective use  
               of available resources.

           5)   Related legislation  .  SB 742 (Romero) requires the  
               Superintendent of Public Instruction and State Board of  
               Education to identify 10 historically 
               low-performing public schools in the state, to ensure  
               that those schools' districts are complying with federal  
               notification requirements, and to direct the local  
               educational agency responsible for each of those schools  
               to approve at least one of three school restructuring  
               alternatives specified in the federal No Child Left  
               Behind Act.
                  
           SUPPORT
           
          Antioch Unified School District
          Association of California School Administrators
          California State PTA
           
          OPPOSITION

           None received.