BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1988
                                                                  Page  1

          Date of Hearing:   April 14, 2010

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                    AB 1988 (Hagman) - As Amended:  April 6, 2010 

          Policy Committee:                              Education  
          Vote:9-0

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

           SUMMARY  

          This bill, in order to avoid financial penalties for not meeting  
          minimum instructional day requirements, deems the Chino Valley  
          Unified School District (CVUSD) to have offered 180 days of  
          instruction for the 2008-09 school year, if the district meets  
          the following requirements: 

          1)Operates grades four through six in the Dickerson Elementary  
            and the Rolling Ridge Elementary Schools for 10 additional  
            days between June 15, 2009 and June 1, 2011. This measure also  
            requires these two elementary schools to provide at least 240  
            minutes for each grade level and day offered during this  
            period. 

          2)Maintains at least 75% of the 2008-09 total enrollment for  
            grades four through six at each school for each of the 10  
            additional days of operation, as specified. 

          3)Reaches agreement with the local bargaining units that  
            represents certificated or classified employees in CVUSD  
            regarding employee compensation for the 10 additional days of  
            operation, as specified. 

          4)Provides a quality educational program during each of the 10  
            additional days of operation, including offering  
            standards-aligned instruction provided by highly qualified  
            teachers and class sizes that are approximately the same as  
            those provided in the 2008-09 school year, as specified. 

           FISCAL EFFECT  









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          This bill proposes to waive fiscal penalties associated with the  
          Longer Instructional Day and Year Incentive (LIDYI) program for  
          CVUSD and only require the district to provide 10 additional  
          days of instruction, whereas existing law requires CVUSD to make  
          up the 34 days of instructional time it did not provide.  
          Essentially, this bill allows CVUSD to receive full funding for  
          not providing the full instructional day as required under the  
          LIDYI program and determined by the school district's auditor.  
          Therefore, there is a potential loss of about $7.6 million in  
          GF/98 savings to the state. 

           COMMENTS  

           1)Background  . SB 813 (Hart), Chapter 498, Statutes of 1983,  
            established the Longer Instructional Day and Year Incentive  
            (LIDYI) program. This program provided incentive funding per  
            average daily attendance (ADA) to participating districts for  
            meeting specified minimum instructional day and minute  
            requirements. Over 90% of school districts, including CVUSD,  
            participate in this program and receive this funding as an  
            adjustment to their revenue limit funding (general purpose).  
            Most school districts receive between $80 and $100 per ADA to  
            participate in this program. 

            In order to receive the LIDYI funding, school districts are  
            required to provide a minimum of 180 days of instruction each  
            school year and a minimum of 240 minutes of instruction a day  
            or an average of minutes calculated as an alternative method,  
            as specified. If districts do not meet these minimum  
            requirements, severe fiscal penalties are imposed by the  
            state. 

            As part of an internal review of the 2008-09 school year,  
            CVUSD discovered two of its elementary schools-Dickson and  
            Rolling Ridge-failed to meet LIDYI minimum instructional day  
            requirements. Specifically, these two schools provided only  
            170 to 175 instructional minutes on 34 separate days in grades  
            four through six. Therefore, the schools failed to meet the  
            minimum for grades four through six.  This failure was  
            confirmed via an audit by the state controller in March 2010.   
             

            Statute requires the state to assess a penalty, of  
            approximately $7.6 million GF/98, to CVUSD for the failure to  
            comply with the LIDYI program. The school district can either  








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            pay the penalty or meet the instructional day requirements it  
            failed to provide.  

            This bill would deem CVUSD to have offered 180 instructional  
            days for the 2008-09 school year, if it meets specified  
            requirements, including providing 10 additional instructional  
            days (rather than the 34 days it missed) for grades four  
            though six at Dickson and Rolling Ridge elementary schools  
            between June 15, 2009 and June 1, 2011, as specified.  As a  
            result, the school district would not pay the $7.6 million  
            GF/98 audit penalty.  

           2)Current law authorizes the State Board of Education (SBE) to  
            waive the fiscal penalties for a school district or county  
            office of education that fails to maintain the prescribed  
            minimum length of time for the instructional school year,  
            minimum number of instructional days, or both. Statute also  
            specifies the SBE may only grant a waiver if the school or  
            schools maintain the instructional minutes and days equal to  
            those lost, as specified. 

            In order to offer the full 34 days as part of the 2008-09  
            school year, CVUSD applied for a waiver to the SBE to provide  
            days after June 30, 2009 (the official end of the school  
            year). The waiver was denied by SBE.  The school district  
            opened Dickenson and Rolling Ridge elementary schools for 10  
            days prior to June 30, 2009, which met the provisions of AB 35  
            X3 (Hagman) at the time (see comment #5 below).  CVUSD's  
            auditor, however, determined these additional days did not  
            meet the standard for instructional days and disallowed any  
            credit toward reducing the district's penalty.    

            Since an auditor determined CVUSD did not meet the minimum  
            instructional requirements, the district has limited options  
            to resolve the matter.  For instance, the school district  
            cannot seek a waiver from the SBE at this point because a  
            monetary audit penalty has been issued.  CVUSD could pay the  
            $7.6 million penalty, appeal to the Education Audit Appeals  
            Panel, or seek a statutory solution.  This bill deems the  
            district to have met the 180 day instructional requirement for  
            the 2008-09 school year, with certain conditions, including  
            providing 10 additional days of instruction. 

           3)Flexibility to offer shorter school year  .  AB 2 X4 (Evans),  
            Chapter 2, Statutes of 2009, allows school districts to reduce  








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            the number of instructional days from 180 to 175 per year,  
            without losing LIDYI program funding.  Districts have this  
            authorization through the 2012-13 fiscal year.  

           4)CVUSD  , located in San Bernardino County, enrolled a total of  
            32,428 pupils in 36 schools in 2008-09. Dickerson Elementary  
            schools enrolled a total of 247 pupils and Rolling Ridge  
            enrolled a total of 278 pupils in grades four through six  
            during this time period. 

           5)Previous legislation  .  AB 35 X3 (Hagman), similar to this  
            measure, was held on the Suspense File in the Senate  
            Appropriations Committee in August 2009.  




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