BILL ANALYSIS                                                                                                                                                                                                    




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair

                                           1988 (Hagman)
          
          Hearing Date:  08/02/2010           Amended: 07/15/2010
          Consultant:  Dan Troy           Policy Vote: ED 8-0
          _________________________________________________________________ 
          ____
          BILL SUMMARY:   AB 1988, an urgency measure, would deem the  
          Chino Valley Unified School District to have offered the minimum  
          number of days of instruction for the 2008-09 fiscal year if the  
          district operates 10 additional school days for pupils in grades  
          4 through 6 for two consecutive years at two district elementary  
          schools, as specified. 
          _________________________________________________________________ 
          ____
                            Fiscal Impact (in thousands)

           Major Provisions         2010-11      2011-12       2012-13     Fund
                                                                  
          Audit                  Loss of $7,600 in savings             
          General*

          Pressure               Indeterminable pressure to forgive    
          General*
                                 other school district audit penalties
          *Counts toward meeting the Proposition 98 minimum funding  
          guarantee
          _________________________________________________________________ 
          ____

          STAFF COMMENTS: This bill meets the criteria for referral to the  
          Suspense File.
          
          Under current law, school districts must operate a minimum of  
          175 school days annually between July 1 and June 30 of each  
          school year.  Current law also provides financial incentives for  
          school districts to offer 180 school days and to provide a  
          minimum amount of instructional minutes, depending on the grade.  
           For apportionment purposes, the minimum school day is 240  
          minutes (except for kindergartners), though districts are  
          permitted to have days as short as 180 minutes provided that the  
          average number of minutes for any 10-day period does not fall  
          below 240 minutes. 











          The Longer Day / Longer Year Incentive program was enacted in  
          1983 as part of SB 813 (Hart), Chapter 498, Statutes of 1983,  
          the Hughes-Hart Educational Reform Act. Under that act, the  
          state separately provides financial incentives to school  
          districts that 
          offer a certain minimum number of instructional minutes over the  
          course of a school year - this is the Longer Day Incentive  
          program.  

          The state provides separate financial incentives under the  
          Longer Year Incentive program to school districts that offer a  
          specified minimum number of instructional days over the course  
          of a school year. The Legislature initially provided an  
          incentive of $35 per unit of average daily attendance (ADA) for  
          each school district that certified that it offered 180 days or  
          more of instruction per school year.  The penalty for offering  
          fewer than the required 180 days is an offset of the district's  
          apportionment for ADA for each affected grade level equal 0.0056  
          (i.e., 1/180) multiplied by that apportionment for each day less  
          than 180 offered by the district.  Since 1985-86, the incentive  
          amounts for the 

          Page 2
          AB 1988 (Hagman)

          Longer Day / Longer Year Incentive program have been included in  
          each district's base revenue limit, and thus have grown due  
          primarily to the application of COLAs. 

          The Chino Valley Unified School District adopted a calendar for  
          the 2008-09 school year that provided relatively short days for  
          each Friday, whereby pupils were released earlier than normal.   
          Two elementary schools in the district, Doris Dickson and  
          Rolling Ridge, released pupils in grades four through six before  
          reaching the required minimum number of 180 minutes for the day.  
           Doris Dickson Elementary released pupils five minutes too  
          early, and Rolling Ridge Elementary released pupils 10 minutes  
          too early.  This early release occurred on 34 days during the  
          school year, and as a result, those 34 days do not count as  
          schooldays at all for pupils in grades four through six at those  
          two schools.  

          Due to this error, the Chino Valley Unified School District's  
          annual audit has assessed a penalty in an amount equal to 1/180  
          (one day) multiplied by the revenue limit apportionment for each  
          of the 34 days not offered by the district, for each of the  










          three affected grade levels at the two elementary schools, for a  
          total of approximately $7.6 million.  

          This bill would deem the district to have offered 180 days of  
          instruction in the 2008-09 - thereby waiving the audit finding -  
          if the district:

                 Operates grades 4 through 6 in the two specified schools  
               for 10 additional schooldays of at least 240 instructional  
               minutes for two consecutive years (defined as either 1) the  
               2009-10 and 2010-11 or 2) the 2010-11 and 2011-12 school  
               years).
                 Maintains attendance of a least 75 percent for each of  
               the schools on each of the additional days.
                 Reaches a compensation agreement with the local  
               classified and certificated bargaining units for the  
               additional days.
                 Provides a quality educational program during the  
               make-up days that includes standards-aligned instruction by  
               highly qualified teachers, class sizes and support services  
               that are approximately the same as those provided during  
               the rest of the 2008-09 school year, as specified.

          While the penalties in current law may appear harsh, they are in  
          place as a disincentive for districts to shorten instructional  
          time.  Staff notes that the districts are not required to  
          participate in the instructional time incentives - the Chino  
          Valley USD entered the program voluntarily.  In addition to  
          waiving the district's penalty, this bill may lead to pressure  
          to forgive future audit findings of other districts.  

          In 2009, the district applied for a waiver from the State Board  
          of Education to extend offer school days beyond July 1 of 2009  
          for the purposes of counting make-up days toward the 2008-09  
          school year. The request was denied.  The district has filed an  
          appeal of the audit with the Education Audit Appeals Panel, but  
          their appeal has not yet been heard.  
          Page 3
          AB 1988 (Hagman)

          AB 35 of the 3rd Extraordinary Session (Hagman, 2010) was held  
          by this committee in 2009.