BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 683
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          Date of Hearing:   April 29, 2009

                           ASSEMBLY COMMITTEE ON EDUCATION
                                Julia Brownley, Chair
                 AB 683 (Chesbro) - As Introduced:  February 26, 2009
           
          SUBJECT  : Local educational agencies: program improvement

           SUMMARY  : Creates an urgency statute that provides a one-year,  
          non-renewable federal improvement grant to local education  
          agencies (LEAs) that are identified for corrective action and  
          sanctions under the federal No Child Left Behind (NCLB) Act, but  
          that have no schools in Program Improvement (PI) status; also  
          requires that the amount of the grant for such a LEA be based on  
          the median grant award for LEAs in the least severe of the  
          categories defined by California Department of Education (CDE)  
          and the State Board of Education (SBE) developed objective  
          criteria.

           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.

          2)Requires the 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.

          3)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 year  
            it is identified as PI. 

          4)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 a LEA identified for corrective action and subject to a  
            sanction is to be evaluated to determine the pervasiveness and  








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            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.

          3)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.

          4)Authorizes a LEA identified for corrective action to apply for  
            a one-year, nonrenewable grant of federal improvement funding  
            to assist in its improvement process.

          5)Requires that the amount of the one-year, nonrenewable  
            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  : Unknown increased allocations of available  
          federal funds to LEAs that are identified for corrective action  
          but have no schools in PI, and are thus currently not receiving  
          these funds.

           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 specified by the SPI and  
          SBE during each subsequent year it is identified as PI.  A  
          school or LEA is allowed to exit PI if it subsequently meets AYP  
          for two consecutive years.  Currently LEAs that advance to PI  
          Year 3 are is subject to one or more of the following sanctions  
          as recommended by the SPI and approved by the SBE:

          1)Replacing district personnel who are relevant to the  
            district's failure to make AYP.
           
          2)Removing schools from the district's jurisdiction and  
            establishing alternative arrangements for governing and  








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            supervising those schools.

          3)Appointing, by SBE, a receiver or trustee to administer the  
            district's affairs in place of the county superintendent of  
            schools and the governing board.

          4)Restructuring or abolishing the district.

          5)In conjunction with another sanction, authorizing pupils to  
            transfer from a school operated by the district to a higher  
            performing school operated by another district and providing  
            them with transportation to those schools.

          6)Instituting and fully implementing a new curriculum that is  
            based on state academic content standards.

          7)Deferring programmatic funds or reducing administrative funds.

          In addition to these sanctions the SPI may recommend, and the  
          SBE may approve, the requirement that an LEA contract with a  
          DAIT.

          Ninety-seven California LEAs, ninety-six 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.  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).  The CDE estimates  
          that an additional 50 LEAs in 2008-09 and 35 LEAs in 2010-11  
          will require corrective actions, and that more than half of all  
          LEAs will do so by 2012-13.  CDE also estimates that for the  
          current year there are 250 LEAs in PI status.

          The SPI's recommendations were grounded in a March 2007 CDE  
          report to the SBE entitled, "Proposal for the Reauthorization of  
          the No Child Left Behind Act of 2001".  The CDE reported that  
          California had identified numerous districts under PI and  
          subject to corrective action, and that many more were in the  








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          immediate pipeline. The proposal went on to make a number of  
          recommendations related to dealing with these districts and  
          related to the future reauthorization of NCLB.  Those  
          recommendations included the following:
            
          1)Given the large number of schools and districts in California  
            identified as in need of improvement, California needs  
            explicit flexibility within NCLB to develop a tiered system of  
            help (fiscal resources and technical assistance) based on  
            level of need. Schools and districts showing insufficient  
            growth over time should be the first focus of intervention and  
            corrective action. 

          2)California has begun to provide innovative district level  
            support to build district capacity for improving schools. The  
            state needs greater and more explicit flexibility to devise  
            its own corrective actions to supplement the NCLB district  
            level corrective actions to implement these support structures  
            while still holding districts accountable for results.

          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 that LEA to apply for a one-year, nonrenewable grant  
          of federal improvement funding 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.









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          Soon after the enactment of AB 519, an unintended consequence  
          was recognized in that eight LEAs in the state that are in  
          corrective action status have no schools that are in PI status;  
          this situation is an anomaly that is generally related to the  
          numbers of pupils in a subgroup that must exist before a school  
          or LEA is held accountable for that subgroup under NCLB.  LEAs  
          in this situation would thus receive no one-year, non-renewable  
          improvement grant funding, despite carrying the same  
          responsibilities as any other LEA in corrective action.

          The purpose of this bill is to correct this situation by  
          specifying a grant amount and providing the one-year improvement  
          grant to LEAs in corrective action, when that LEA has no schools  
          in PI status.  The bill specifies that this grant be based on  
          the median grant award for LEAs in the least severe of the  
          categories.  According to the author, "By adjusting the funding  
          formula to allow districts to be allocated a reasonable amount  
          of federal dollars for purposes of addressing PI corrective  
          action, the state can ensure that all districts facing these  
          sanctions receive federal funding to meet federal NCLB  
          accountability requirements."  The impact of allowing this  
          situation to remain, the author states, is that "Without these  
          federal funds, districts would have to utilize limited local  
          funds to implement their corrective action at a time when they  
          are facing budget shortfalls due to a declining economy."

          Committee amendments: This bill sets the grant award for LEAs  
          identified under the provisions of the bill at the median level  
          for LEAs with "minor of isolated performance problems", the  
          lowest category of severity identified by the objective criteria  
          developed by the CDE and SBE.  This presents two problems: 

          1)The LEA in question may, in fact, not be in the lowest  
            category of severity, but in one of the two higher categories,  
            and thus has more serious problems to deal with, more rigorous  
            corrective actions to be applied, and more need of improvement  
            funding than LEAs in the minor category.

          2)Since the level of total grant to an LEA is associated mainly  
            with the number of PI schools in the district, the median  
            grant level is only appropriate if the district in question  
            lies somewhere in the middle of the distribution of the number  
            of schools in a district (i.e., small districts will receive a  
            windfall and large districts will be shorted of funding under  
            this proposal).








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          Since the author's intent is to establish a grant amount that  
          will ensure that LEAs in this situation receive an improvement  
          grant, Committee staff instead recommends that in each of the  
          three severity categories the SPI calculate the statewide  
          proportion of schools identified as PI, multiply the proportion  
          (for the appropriate category) times the number of schools for  
          each LEA identified under the provisions of this bill, and round  
          that product to the nearest whole number of schools; each LEA so  
          identified would then receive the appropriate per school grant  
          times that calculated number of schools.  In this way each  
          identified LEA will receive the per school grant amount  
          associated with the severity category in which the LEA has been  
          placed, and the resulting grant amounts will not be distorted as  
          to district size. 

          Related legislation: AB 518 (Mendoza), pending in Assembly  
          Appropriations, requires a school assistance and intervention  
          team (SAIT) and a district assistance and intervention team  
          (DAIT) to possess a high degree of knowledge, skills, and  
          expertise in meeting the curriculum and instructional needs of  
          prescribed pupil groups.  AB 451 (DeLeon), pending in Assembly  
          Education, provides federal funding to LEAs with PI schools in  
          year four and five in order to allow them to reassess their  
          schoolsite plans and make recommendations to improve academic  
          achievement; also establishes a structure for each LEAs to work  
          collaboratively with its PI schools in this process.

          Previous legislation: 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 2531  
          (Mendoza), held in the Senate Appropriations Committee in 2008,  
          was substantially similar to AB 518 (Mendoza), currently pending  
          in the Assembly.  SB 606 (Perata), failed Senate concurrence  
          with Assembly amendments in 2008, would have made changes to the  
          process whereby California local education agencies (LEAs) are  
          identified for Program Improvement (PI) corrective actions under  
          the federal No Child Left Behind Act (NCLB), and appropriated  








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          $47 million in federal funds for purposes of the bill.  SB 1074  
          (Senate Committee on Budget), died on the Assembly Floor in  
          2008, was substantially similar to AB 519 with respect to the PI  
          provision.

          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 that are  
          in need of program improvement under NCLB.  
          AB 2066 (Steinberg), Chapter 579, Statutes of 2004, provides  
          additional funding to school districts for schools identified  
          for PI and revises the provisions required for a school to exit  
          the High Priority Schools Grant Program for Low Performing  
          Schools.  AB 312 (Strom-Martin), Chapter  1020, Statutes of   
          2002, establishes the School System of School Support (S4) and  
          allocates federal and state funding for the purposes of school  
          sanctions related to the Immediate Intervention/Underperforming  
          Schools Program (II/USP) and federal law.

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          Association of California School Administrators
          Jack O'Connell, Superintendent of Public Instruction (Sponsor)

           Opposition 
           
          None on file
           
          Analysis Prepared by  :    Gerald Shelton / ED. / (916) 319-2087