BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 450
                                                                  Page  1

          Date of Hearing:   June 30, 2010

                           ASSEMBLY COMMITTEE ON EDUCATION
                                Julia Brownley, Chair
                  SB 450 (Lowenthal) - As Amended:  January 28, 2010

           SENATE VOTE  :   Vote not relevant
           
          SUBJECT  :  Class size reduction:  Long Beach Unified School  
          District

           SUMMARY  :  Authorizes the Superintendent of Public Instruction  
          (SPI) to approve Kindergarten through grade 3 (K-3) class size  
          reduction (CSR) funding for the Long Beach Unified School  
          District (LBUSD) despite exceeding required teacher-to-pupil  
          ratios, if the increase in teacher-to-pupil ratio is due to a  
          fire in May 2007.  Specifically,  this bill  :

          1)Specifies that the SPI may approve CSR funding for the  
            2009-10, 2010-11, and the 2011-12 school years for classes  
            that either exceed 20 pupils or are housed with another class,  
            if the following conditions are met:  

             a)   The school district certifies that the number of pupils  
               enrolled in a district school increased as a direct result  
               of the closures on Catalina Island resulting from the May  
               2007 fire and resultant debris flow hazard due to  
               weather-related conditions, and this growth increased the  
               number of pupils enrolled in classes in which K-3 CSR  
               program is implemented; and, 

             b)   The school district certifies that it lacked sufficient  
               classroom space or credentialed teachers to accommodate the  
               enrollment increase from the closures on Catalina Island  
               resulting from the May 2007 fire and resultant debris flow  
               hazard due to weather-related conditions.

          2)Specifies that this bill becomes inoperative on July 1, 2012  
            and is repealed on January 1, 2013, unless a later enacted  
            statute that is enacted before January 1, 2013, deletes or  
            extends the dates on which the bill becomes inoperative and is  
            repealed.

          3)Finds and declares that due to unique circumstances relating  
            to the LBUSD, a general statute cannot be made applicable.








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          4)Contains an urgency clause in order to provide timely  
            essential relief to the LBUSD that may experience a loss of  
            state funding as a result of mandatory fire and  
            weather-related school closings on Catalina Island.

           EXISTING LAW  :

          1)Establishes the K-3 CSR program to provide funding to school  
            districts to reduce class size in kindergarten through grade 3  
            to not more than 20 pupils per certificated teacher.  

          2)Establishes the following two options under which a school  
            district may apply for CSR funding:

             a)   Option One: A school district shall provide a reduced  
               class size for all pupils in each classroom for the full  
               regular school day in each grade level for which funding is  
               claimed.  In order to qualify for funding, each class in  
               CSR shall be maintained with an annual average class size  
               of not more than 20 pupils for the instructional time that  
               qualifies the class for funding.  Nothing prohibits the  
               class size from exceeding 20 pupils on any particular day,  
               provided that the average class size for the school year  
               does not exceed 20.

             b)   Option Two: A school district shall provide a reduced  
               class size for all pupils in each classroom for at least  
               one-half of the instructional minutes offered per day in  
               each grade level for which funding is claimed.  School  
               districts selecting this option shall primarily devote  
               those instructional minutes to the subject areas of reading  
               and mathematics.

          3)Establishes penalty in the form of reduction in payments for  
            each class that the school district fails to maintain required  
            pupil-to-teacher ratios.

          4)Authorizes a school district located in the counties of Los  
            Angeles, Riverside, San Bernardino, San Diego, or Ventura to  
            claim CSR funding for the 2003-04 school year based on  
            enrollment counts before the October 2003 fires in classes for  
            which the K-3 CSR program is implemented if the school  
            district certifies that it suffered a loss of enrollment in  
            those classes due to the October 2003 fires that would result  








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            in a decrease in CSR funding.

          5)Authorizes a school district located in the counties of Los  
            Angeles, Orange, Riverside, San Bernardino, San Diego, Santa  
            Barbara, and Ventura, to claim CSR funding for the 2007-08  
            school year based on enrollment counts before the October 2007  
            fires if the school district certifies that it suffered a loss  
            of enrollment in CSR classes due to the October 2007 fires.

          6)Specifies further reduction in penalties, capped at 30%, for  
            districts that fail to maintain pupil-to-teacher ratios for  
            the 2008-09 through 2011-12 school years only.

           FISCAL EFFECT  :  According to the Assembly Appropriations  
          Committee of a similar bill from 2009, SB 193 (Lowenthal), the  
          funding is in the budget.  However, there is a potential General  
          Fund/Proposition 98 loss of savings, of approximately $470,000,  
          to allow LBUSD to retain full funding for the K-3 CSR program.

           COMMENTS  :  Enacted in 1996, the CSR provides incentive funding  
          of $1,071 per pupil to districts that reduce their kindergarten,  
          first, second, or third grade classes to an average ratio of 20  
          pupils per certificated teacher.  A class can exceed 20 pupils  
          for any particular day, as long as the average class size for  
          the school year does not exceed 20.44.  The CSR program requires  
          reducing grade 1 and grade 2 class sizes before reducing grade 3  
          or kindergarten class sizes.  In 2007-08, only 14 districts did  
          not participate in this program.  The state budget provided $1.8  
          billion for this purpose in fiscal year (FY) 2008-09.  

          Until the enactment of SB 311 (Sher), Chapter 910, Statutes of  
          2004, any class that failed to maintain the required ratio was  
          subject to a penalty in the form of loss of funding for the  
          whole class.  

          SB 4 X3 (Ducheny), Chapter 12, Statutes of 2009, as part of the  
          FY 2008-09 and 2009-10 budget adjustments, further reduced the  
          penalties for not meeting required teacher-to-pupil ratios and  
          capped the penalties at a 30% reduction for the 2008-09 through  
          2011-12 school years, as follows:

                    ----------------------------------------------- 
                   |                       |                       |
                   |        SB 311         |    SBX3 4 (2008-09    |
                   |                       |   through 2011-12)    |








                                                                  SB 450
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                   |                       |                       |
                   |-----------------------+-----------------------|
                   |                       |                       |
                   |   Penalty             |   Penalty             |
                   | Class Size            |Class Size             |
                   |-----------------------+-----------------------|
                   |                       |                       |
                   |    20%                |     5%                |
                   |20.45 - 20.94          | 20.5 - 21.5           |
                   |    40%                |     10%               |
                   |20.95 - 21.44          |21.5 - 22.5            |
                   |    80%                |     15%               |
                   |21.45 - 21.84          |22.5 - 23              |
                   |   100%                |     20%               |
                   |> 21.84                |23 - 25                |
                   |                       |     30%               |
                   |                       |> 25                   |
                    ----------------------------------------------- 

          Existing law provides an exemption to the penalties for seven  
          counties that suffered devastating fires in 2003 and 2007.  This  
          bill provides similar relief to the LBUSD as a result of a fire  
          on the island of Catalina in May 2007.  The Avalon Schools  
          enrolls almost 700 kindergarten through grade 12 students in the  
          city of Avalon on Catalina Island.  According to the author, "In  
          May 2007 a major fire destroyed vegetation on all major canyons  
          that drain into the valley which contains the school site and  
          the community.  Whenever the ground reaches a saturation level  
          there is imminent danger of mudslides and rockslides, which  
          could result in extended closures and/or evacuations."

          According to the LBUSD, the United States Geological Survey  
          protocol and onsite reconnaissance has determined that there is  
          danger of mudslides when the island reaches either 10 inches of  
          rain within 120 days or receives  inch of rain per hour for two  
          to three hours, and/or over 2 inches of rainfall within a 48  
          hour period.

          This bill authorizes the SPI to approve CSR funding during the  
          2009-10 through 2011-12 school years if the district certifies  
          that classes increased as a result of closures on the Catalina  
          Island resulting from the May 2007 fire and resultant debris  
          flow hazard due to weather-related conditions, and the district  
          certifies that it lacked sufficient classroom space or  
          credentialed teachers to accommodate the enrollment increase.   








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          This bill essentially prevents the district from losing a  
          maximum of 30% of its CSR funding if students from Avalon  
          Schools must be temporarily relocated to other LBUSD schools,  
          thereby increasing the sizes of those classes that participate  
          in the CSR program.  The provisions of this bill sunset on July  
          1, 2012, and are repealed on January 1, 2013.  According to the  
          district, the risk of mudslides and rockslides subside when  
          vegetation that was destroyed by the fire is expected to be  
          sufficiently restored by 2012.

          This bill is identical to SB 193 (Alan Lowenthal), which was  
          vetoed by the Governor in 2009 with the following message:

          "This bill is premature, and therefore unnecessary at this time,  
          since the Long Beach Unified School District has not received a  
          reduction in its K-3 Class Size Reduction (CSR) program funding  
          level.  I have previously supported legislation that held  
          districts harmless for loss of CSR funding due to unexpected  
          fires that have disrupted operations at certain schools.   
          However, this bill sets a precedent by providing a hold harmless  
          provision of CSR funding prospectively.  In the event there are  
          school closures during the 2009-10 through 2011-12 school years,  
          legislation can be considered at that time."

          According to the author, this bill was reintroduced because the  
          Avalon School was closed for three days due to heavy rains and  
          threat of debris flow hazards during January 2010.  

           Other related legislation  .  AB 548 (Chesbro), authorizes, for  
          the 2008-09 school year, a local educational agency to choose  
          for state apportionment purposes either the option set forth in  
          SB 4X3 (Ducheny) or the option as it read on December 31, 2008  
          regarding the number of eligible classes.  Authorizes the  
          Riverside Unified School District a similar option for the  
          2009-10 school year.  The bill is pending in the Senate  
          Appropriations Committee.

          AB 2272 (Block), introduced in 2010, modified the class size  
          reduction penalties established by the FY 2009-10 budget  
          agreement.  The bill was held in the Assembly Appropriations  
          Committee's suspense file.

          SB 1396 (Lowenthal), pending in the Assembly Education  
          Committee, establishes the Maximum Categorical Education  
          Flexibility Pilot Program authorizing the SPI to select three  








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          school districts to participate and utilize their categorical  
          funding for any purpose related to improving pupil academic  
          achievement and academic instruction.

           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          None on file   
           
            Opposition 
           
          None on file

           Analysis Prepared by  :    Sophia Kwong Kim / ED. / (916) 319-2087