BILL ANALYSIS
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|SENATE RULES COMMITTEE | SB 223|
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THIRD READING
Bill No: SB 223
Author: Wyland (R)
Amended: 5/6/09
Vote: 21
SENATE EDUCATION COMMITTEE : 9-0, 4/29/09
AYES: Romero, Huff, Alquist, Hancock, Liu, Maldonado,
Padilla, Simitian, Wyland
SENATE APPOPRIATIONS COMMITTEE : Senate Rule 28.8
SUBJECT : High School Graduation Requirements: financial
literacy
SOURCE : Author
DIGEST : This bill requires the Curriculum Development
and Supplemental Materials Commission to consider and vote
on whether to include a unit on financial literacy in the
proposed changes to the 2014 History-Social Science
Frameworks.
ANALYSIS : In order to graduate from high school,
existing law requires all pupils to pass both the English
language arts and mathematics portions of the California
High School Exit Exam and complete specified courses,
including a one-semester course in economics.
Existing law requires the Superintendent of Public
Instruction (SPI) to coordinate the development of model
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curriculum standards for the courses of study required for
graduation and requires the State Board of Education (SBE)
to adopt statewide academic content standards in core
curriculum areas, pursuant to the recommendations of the
Commission for the Establishment of Academic Content and
Performance Standards. The History-Social Science
Standards, adopted in 1998, include standards for the
instruction of Economics.
Existing law requires the SBE to ensure that financial
preparedness is integrated into the next revision of the
History-Social Science Framework. The 2010 update of the
History-Social Science Framework update is underway and is
expected to include guidance on the instruction of
financial preparedness.
Comments
What's included in the economics course ? The SBE has
adopted content standards for the instruction of economics
that address the following fundamental economic concepts:
(1) common economic terms, concepts, and economic
reasoning; (2) elements of America's market economy in a
global setting; (3) the influence of the federal government
on the American economy; (4) the elements of the U.S. Labor
market in a global setting; (5) the impact of aggregate
economic behavior on the U.S. economy; (6) international
trade and how the U.S. economy affects and is affected by
economic forces beyond the borders of the United States.
Financial literacy efforts . The SPI has launched a
financial literacy awareness campaign to provide schools,
teachers, students and parents with access to supplemental
resources that can help students develop knowledge and
understanding of money management. The Department of
Education hosts an online resource library that provides
information and links to programs that teachers and parents
can use to increase financial literacy.
Financial literacy legislation . Previous legislation
addressing the need for financial literacy instruction in
public schools has been vetoed by the Governor: (a) AB
1502 (Lieu), of 2008 would have required the SBE and the
Curriculum development and Supplemental Materials
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Commission to ensure that financial literacy is included in
appropriate subject area frameworks; (b) AB 150 (Lieu), of
2007, would have required the SPI to administer a
California Financial Literacy Initiative as a program for
improving pupil financial literacy; (c) AB 1950 (Lieu), of
2006, would have authorized school districts to provide
instruction in economics courses related to the
understanding of personal finances including budgeting,
savings, and credit; and (d) AB 2435 (Wiggins) of 2004,
would have authorized districts to teach middle school and
high school students about personal finance.
In his veto messages for all four bills, Governor
Schwarzenegger opined that while improving the financial
literacy of students is meritorious, the Superintendent of
Public Instruction and Schools already have the authority
to incorporate the principles of money management into the
curriculum.
SB 426 (Yee), of 2009, requires the Curriculum Development
and Supplemental Materials Commission, as part of its
regular process of developing and revising curriculum
frameworks to consider and vote at least twice a year on
whether to adopt each concurrent resolution passed by the
Legislature that proposes changes to the frameworks which
are in the Senate Appropriations Committee.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: Yes
SUPPORT : (Verified 5/18/09)
Cal Credit Union League
California Bankers Association
California Society of Certified Public Accountants
California State Controller
Center for Students Credit Card Education
ARGUMENTS IN SUPPORT :
DLW:do 5/18/09 Senate Floor Analyses
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SUPPORT/OPPOSITION: SEE ABOVE
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