BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 554
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          Date of Hearing:   May 20, 2009

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Kevin De Leon, Chair

                    AB 554 (Furutani) - As Amended:  May 6, 2009 

          Policy Committee:                              Education  
          Vote:11-0

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

           SUMMARY  

          This bill increases the number of courses required for high  
          school graduation from 13 to 14 and offers pupils a choice  
          between a course in visual performing arts (VPA), foreign  
          language, or career technical education (CTE) to fulfill the  
          additional course requirement.  Specifically, this bill:  

          Requires schools, to the extent practicable and for purposes of  
          requiring the additional course, to offer the courses within  
          their existing school calendars.  

           FISCAL EFFECT  

          1)Annual GF/98 state reimbursable mandated costs, of at least  
            $105.7 million, to school districts to increase the number of  
            number of graduation requirements from 13 to 14, as specified.  
             

          2)One-time GF/98 state reimbursable mandated costs, of at least  
            $6 million, to school districts to increase the number of  
            graduation requirements, including offering CTE courses.  

           COMMENTS  

           1)Purpose  .  Existing law requires pupils to meet the following  
            minimum course requirements in order to graduate from high  
            school: 


                    --------------------------------------- 
                   |         Subject         |# of Courses |








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                   |-------------------------+-------------|
                   |English                  |      3      |
                   |-------------------------+-------------|
                   |Math                     |      2      |
                   |-------------------------+-------------|
                   |Science                  |      2      |
                   |-------------------------+-------------|
                   |Social Studies           |      3      |
                   |-------------------------+-------------|
                   |VPA or Foreign Language  |      1      |
                   |-------------------------+-------------|
                   |Physical Education       |      2      |
                   |-------------------------+-------------|
                   |Total                    |13           |
                    --------------------------------------- 

            Statute also authorizes a school district governing board to  
            specify additional requirements.  For example, a governing  
            board may require pupils to complete community service hours  
            or additional coursework (i.e., CTE courses or courses to meet  
            the University of California or California State University  
            admission requirements).  

            According to the State Department of Education (SDE), there  
            were 589,233 high school students enrolled in CTE in 2007-08.   
            Also, SDE reports 25,752 CTE courses offered to pupils during  
            this time period.  SDE states: "Over the last nine years, CTE  
            district course enrollments have declined by 254,239 students.  
             This is despite the fact that total high school student  
            enrollment continues to increase."  

            The author further states "California's ability to maintain a  
            competitive edge in the global economy requires a public  
            education system that is capable of producing a skilled and  
            competent workforce. CTE courses enhance the connection  
            between high school course work and its real-world  
            applications, as do the arts and foreign languages. There is a  
            need to increase student access to these courses."

           2)Commission on State Mandates (CSM) Decision on Science high  
            school graduation requirement  .  As part of major education  
            reform legislation in the early 1980s, the Legislature  
            increased the state's high school graduation requirements.  
            Among other changes, the law required that all students  
            complete two high school science classes prior to receiving a  








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            diploma (the previous requirement was one science class). This  
            change increased the total number of state required courses  
            for graduation from 12 to 13, which remains current law.  The  
            costs associated with providing an additional science class  
            were the basis of an eventual mandate claim. In 1987, CSM  
            determined that providing an additional science class imposes  
            a higher level of service on districts and, therefore,  
            constituted a reimbursable mandate.  

            The primary factor contributing to high mandate costs relates  
            to a statutory provision that provides school districts with  
            discretion in implementing the high school science graduation  
            requirement. This provision was interpreted differently by  
            various parties until a 2004 court ruling indicated that  
            school districts, under current law, have full discretion to  
            increase their total graduation requirements. Based on this  
            ruling, the CSM decided the state could not increase the  
            number of courses it requires for graduation above 12 without  
            providing reimbursement. As a result, the state is exposed to  
            paying the full cost of every additional science course for  
            the majority of school districts as far back as 1995-96.   
            According to the Legislative Analyst Office, the total cost of  
            these prior year claims is approximately $1.9 billion GF/98  
            and the on-going cost of the science graduation requirement is  
            $190 million GF/98.      

            This bill increases the number of courses required for high  
            school graduation from 13 to 14.    Likewise, school districts  
            maintain the authority to establish additional course  
            requirements for graduation beyond the minimum specified in  
            statute.  Given the CSM's decision on the science graduation  
            requirement and the state's current fiscal crisis, the  
            committee may wish to consider whether or not it is the  
            appropriate time to increase the number of courses required  
            for graduation.  

           3)CTE  .  In January 2007, the State Board of Education (SBE)  
            adopted the CTE Standards and Framework to guide CTE  
            curriculum discussions for grades 7-12 pupils with learning  
            goals in 58 career pathways organized around 15 industry  
            sectors.  The CTE Framework is "is the blueprint for educators  
            to implement the CTE model curriculum standards adopted by the  
            SBE. It provides context for the content laid out in the  
            standards, discusses best practices, and explores important  
            issues in implementation."   








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