BILL ANALYSIS                                                                                                                                                                                                    




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair

                                           266 (Huff)
          
          Hearing Date:  05/28/1009           Amended: 05/06/2009
          Consultant:  Dan Troy           Policy Vote: ED 7-0
          _________________________________________________________________ 
          ____
          BILL SUMMARY:   SB 266 would enact the Open Enrollment Act for  
          the purpose of allowing pupils attending low-performing schools,  
          as specified, to attend schools in a different district.  The  
          bill would require school districts to notify parents of pupils  
          that attend a school that is ranked in deciles 1, 2, or 3 of the  
          Academic Performance Index (API) of the opportunity for the  
          pupil to apply for enrollment in another district and provide  
          specified information.  The receiving district ("school district  
          of enrollment") would be required to review each application for  
          enrollment and provide a response to the applicant within 60  
          days of receipt, pursuant to timelines established in the bill.   
          If the application is rejected, justification for the rejection  
          must be provided.  School districts may exempt themselves from  
          sending or receiving pupils pursuant to this bill upon a  
          determination by the school board that transfers would  
          negatively impact a district's court-ordered desegregation plan  
          or the racial and ethnic balance of the district.  The bill  
          would also allow the district of enrollment to establish other  
          priorities for enrollment, such as first ensuring placement for  
          resident pupils. The bill would take effect as of July 1, 2010,  
          and become inoperative on July 1, 2020.  
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          ____
                            Fiscal Impact (in thousands)

           Major Provisions         2009-10      2010-11       2011-12     Fund
           
          Notification                      $900 to $1,800,  
          annuallyGeneral*

          Applications                      Unknown, potentially   
          General*hundreds of thousands
                                            or millions, depending on
                                            participation

          *Counts toward meeting the Proposition 98 minimum funding  
          guarantee










          _________________________________________________________________ 
          ____

          STAFF COMMENTS: SUSPENSE FILE.
          
          Current law provides for pupils to attend school in a district  
          other than their district of residence in certain situations.  A  
          district may declare itself a school district of choice and  
          admit transfers into the district.   The district of choice may  
          limit the number of transfers in but must use a random process  
          of selection that is not based on academic or athletic  
          performance.  Current law also allows for interdistrict  
          transfers based on employment of childcare needs, upon agreement  
          by both the receiving and sending district, as specified.

          California's public K-12 education system serves approximately 6  
          million pupils, so in any given year, roughly 1.8 million of  
          those pupils (30 percent of the total) will attend a 
          Page 2
          SB 266 (Huff)

          school ranked 1, 2, or 3 on the API.  This bill would mandate  
          districts to notify the parents of all of these pupils of the  
          school's ranking and provide information about an interdistrict  
          transfer.  Assuming notification costs ranging from $.50 to $1  
          per pupil, this bill would result in annual reimbursable mandate  
          costs of $900,000 to $1.8 million.  Further, the bill's  
          requirement that receiving districts review applications, adopt  
          standards and procedures, reply to applicants within 60 days,  
          process record transfers, and other related activities would  
          also drive reimbursable state mandate costs.  These costs are  
          more difficult to estimate as it is unknown how many pupils will  
          seek a transfer.  If only 1 percent of eligible pupils  
          (approximately 18,000) applied for an interdistrict transfer  
          pursuant to this bill, it is reasonable to assume that this bill  
          would result in significant state costs in the hundreds of  
          thousands or low millions of dollars.  This amount maybe more or  
          less depending on participation.