BILL ANALYSIS                                                                                                                                                                                                    




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair

                                           2027 (Blumenfield)
          
          Hearing Date:  08/02/2010           Amended: 07/15/2010
          Consultant:  Dan Troy           Policy Vote: ED 8-0
          _________________________________________________________________ 
          ____
          BILL SUMMARY:   AB 2027 would authorize, commencing in the  
          2012-13 fiscal year, local education agencies to claim  
          attendance counting toward average daily attendance (ADA) for  
          apportionment purposes through online synchronous and  
          asynchronous instruction, as specified. 
          _________________________________________________________________ 
          ____
                            Fiscal Impact (in thousands)

           Major Provisions         2010-11      2011-12       2012-13     Fund
           Regulations            $125                             General

          Increased HS ADA                              $7,000    General*

          Loss of savings                               $10,000   General*

          IT equipment (pressure)                       $800      General*
          *Counts toward meeting the Proposition 98 minimum funding  
          guarantee
          _________________________________________________________________ 
          ____

          STAFF COMMENTS: This bill meets the criteria for referral to the  
          Suspense File.

          Current law provide two methods of attendance accounting for the  
          claiming of ADA for apportionment purposes: 1)  Classroom  
          Instruction - The pupil is engaged in educational activities  
          under the "immediate supervision and control" of a certificated  
          employee of the district and is scheduled to be enrolled in a  
          specified minimum number of minutes for a school day, and  
          attends school at least some part of that day, among other  
          requirements.  2)  Independent Study  - The assessed "time value"  
          of student work products performed outside of the classroom, but  
          under the general supervision of a certificated employee, as  
          specified.











          Currently, to the extent local education agencies (LEAs) offer  
          online instruction, they must claim attendance through the rules  
          of independent study.  This bill would create an additional  
          attendance accounting method for synchronous and asynchronous  
          online instruction, commencing with the 2012-13 fiscal year.  

          The bill defines a "synchronous" online course as a course where  
          the teacher and pupil are online at the same time and are able  
          to interact at that time.  An "asynchronous" online course is  
          defined as a course where the teacher and pupil may be online at  
          different times and are unable to interact simultaneously.  

          In order for LEAs to claim ADA through online courses, the bill  
          would require that:

          Page 2
          AB 2027 (Blumenfield)

                       Attendance is claimed only for pupils enrolled in  
                 grades 9-12.
                     The pupil is enrolled in classes that include online  
                 courses or classroom courses, or both.
                     The pupil meets applicable instructional time  
                 requirements.
                     Each online course is a "high-quality" course.

            The bill defines high-quality online courses as those that are  
            approved by the LEA governing board and certified to meet  
            specified conditions, such as:

                     For purposes of providing immediate supervision and  
                 verifying attendance for synchronous online instruction,  
                 that the teacher is online at the same time as the pupil  
                 and is able to make a line-of-sight visual connection  
                 with each pupils.
                     For purposes of verifying asynchronous online  
                 instruction, the teacher must be able to employ at least  
                 two of the following: 1) Periodic proctored examinations,  
                 2) Direct teacher-pupil meetings no less than twice per  
                 calendar month, or 3) A line-of-sight visual connection  
                 including but not limited to, Internet Webcam.

          The bill makes provisions concerning required teacher-pupil  
          ratios and the quality of the online course teacher, requires  
          the administration of examinations by proctor or through other  
          reliable methods, and allows LEAs to contract with other LEAs to  










          provide the online instruction, as specified.  The bill would  
          require that pupil participation is voluntary and that a pupil  
          cannot be denied course access due to the pupil's lack of  
          hardware or software necessary to participate in the course. 

          The SPI, in consultation with the Director of Finance and the  
          Controller, would be required to make revisions to any  
          attendance accounting manual or guidance to LEAs necessary to  
          clarify attendance accounting procedures for asynchronous online  
          courses. The bill would require the SPI, in consultation with  
          the Department of Finance, to adopt rules and regulations for  
          the purpose of clarifying or expanding the procedures required  
          for verifying the identification of pupils participating in  
          asynchronous online courses, and for including pupil attendance  
          in asynchronous online courses in the calculation of ADA. 

          The bill would become inoperative on July 1, 2016.  

          Immediate supervision is the foundation of the K-12 revenue  
          limit system.  Removing that foundation through asynchronous  
          online learning may impair the state's ability to ensure that  
          its investment is spent directly on instruction.  In only  
          limited circumstances (independent study) are school districts  
          funded for instruction that occurs without a pupil being under  
          the direct control of certificated staff, and such instruction  
          is subject to many regulations and restrictions to ensure the  
          rigor of the academic work and to ensure the state continues to  
          pay for time on task, albeit through a different accounting  
          method.  Essentially, the state pays for time on task, and  
          asynchronous online instruction severs that link.  Indeed, it is  
          possible that asynchronous online instruction would effectively  
          replace independent study, as the provisions are easier to meet.  
           
          Page 3
          AB 2027 (Blumenfield)

          The Legislature's unease with the independent study model was  
          evidenced by the passage of Chapter 892/2001 (SB 740, O'Connell)  
          which limited funding for charter schools that are primarily  
          non-classroom based.  The Legislature was concerned that these  
          schools were receiving funds in excess of what was required to  
          fund non-classroom based instruction, and that it was not clear  
          to what extent and intensity instruction was being delivered to  
          pupils.  

          The Legislature has also demonstrated a hesitancy with online  










          instruction.  AB 885 (Daucher), Chapter 801, Statutes of 2002,  
          authorized participation by high school students in an online  
          classroom program using an asynchronous, interactive curriculum  
          as immediate supervision in order to count this participation as  
          instructional time for the purpose of generating average daily  
          attendance (ADA) and associated funding.  AB 294 (Daucher),  
          Chapter 429, Statutes of 2003, recast this program as a pilot,  
          added specified fiscal, record-keeping, and reporting  
          requirements and implemented other clean-up provisions as  
          requested in the Governor's AB 885 signing message.  While the  
          program required some reporting, the scope of the evaluation was  
          not rigorous enough to inform the Legislature of the merits of  
          continuing the pilot or expanding online instruction to  
          statewide use.  Unease with online instruction was demonstrated  
          by the failure of several bills since that time that would have  
          either reauthorized or reenacted the online pilot or otherwise  
          relaxed attendance accounting standards to allow for online  
          instruction on a broader basis.  

          This bill would entail costs of approximately $125,000 for the  
          Department of Education to develop new guidelines and  
          regulations.  The Department of Education also estimates new  
          apportionment costs of approximately $7 million assuming that  
          1,000 pupils that would otherwise not be linked to the K-12  
          system engage in asynchronous high school "dropout recovery"  
          programs.  More difficult to estimate would be the lost savings  
          to the state as districts will likely be able to claim higher  
          attendance rates under an asynchronous online attendance system  
          than under the current system.  Even a one percent increase in  
          claimed attendance among the state's high school pupils would  
          lead to approximately $10 million in annual costs. The bill may  
          also result in some cost pressure for LEAs to purchase and  
          maintain the hardware and software necessary to implement the  
          program.   The Department estimates these costs at $800,000.  

          Staff notes that the bill appears to specify a "teacher to  
          pupil" ratio in several places where a "pupil to teacher" ratio  
          is more likely intended.  Further, if it is the will of the  
          committee to approve this bill, it should include a rigorous  
          evaluation to better inform policy makers of the merits of both  
          synchronous and asynchronous online instruction.