BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 450
                                                                  Page  1

          Date of Hearing:   August 4, 2010

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                 SB 450 (Lowenthal) - As Amended:  January 28, 2010 

          Policy Committee:                             Education Vote:9-0

          Urgency:     Yes                  State Mandated Local Program:  
          No     Reimbursable:              No

           SUMMARY  

          This bill authorizes the Superintendent of Public Instruction  
          (SPI) to approve full funding allocated to Long Beach Unified  
          School District (LBUSD) for the K-3 Class Size Reduction (CSR)  
          program classes that either exceed 20 pupils or are housed with  
          another class in the 2009-10, 2010-11, and 2011-12 school years,  
          provided that the district meets specified provisions.   
          Specifically, this bill: 


          1)Requires LBUSD to certify the number of pupils enrolled in a  
            school increased as a direct result of the closures on  
            Catalina Island resulting from the May 2007 fire, which lead  
            to an increase in the number of pupils in K-3 CSR program  
            classes, as specified. 



          2)Requires LBUSD to certify 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. 



          3)Sunsets these provisions on July 1, 2013. 


           FISCAL EFFECT  


          GF/98 loss of savings, of approximately $470,000, to allow LBUSD  








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          to retain full funding for the K-3 CSR program, as specified. 


           COMMENTS  


           1)Background  . SB 311 (Sher), Chapter 910, Statutes of 2004,  
            provided temporary relief to southern California school  
            districts affected by the California wildfires in 2003 by  
            relieving districts from the statutory reduction in the  
            penalties that would be paid when a class participating in the  
            K-3 CSR program exceeded the maximum average of 20.4 students.  



            In May 2007, Catalina Island, located 26 miles off the coast  
            of Los Angeles, CA, suffered from a wildfire that forced  
            residents of the city of Avalon to evacuate, including pupils  
            who attend the Avalon School (which is under the jurisdiction  
            of LBUSD). In 2008-09, the Avalon School enrolled 649 pupils  
            in grades K-12. 


            According to the author, the wildfire destroyed vegetation on  
            all major canyons that drain into the valley that 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. Because of drought conditions in 2007 the Avalon  
            School has not experienced significant closures due to ground  
            saturation  The author, however, is carrying this measure in  
            anticipation of wet weather that could cause school  
            closures/evacuations, which would result in K-3 CSR limits  
            being exceeded.  


             The K-3 CSR program  provides per pupil funding for each child  
            in grades K-3 who receives instruction in a class of 20 or  
            fewer pupils. The program has two options. Option One provides  
            full funding for pupils who receive the 20-to-1 instruction  
            all day and Option Two provides half funding for pupils who  
            receive the 20-to-1 instruction for half of the instructional  
            minutes per day. All pupils must receive this instruction from  
            a certificated teacher, not an instructional aide. Each CSR  
            class must be in a separate, self-contained classroom or the  








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            equivalent square footage provided before CSR. Although  
            classes may occasionally exceed 20 pupils without penalty, in  
            order to receive funding each class must maintain an average  
            of 20.4 pupils or less. 


           2)K-3 CSR budget flexibility  . As part of the overall categorical  
            budget flexibility, SB 4 X3 (Ducheny), Chapter 12, Statutes of  
            2009, reduced the fiscal penalties for not meeting required  
            pupil-to-teacher ratios under the K-3 CSR program until the  
            2011-12 FY. Specifically, the K-3 CSR program penalties were  
            reduced by increments of 5%, with a cap of 30%, depending on  
            the average enrollment of the class. For example, there is a  
            5% reduction in the penalty assessed if the average enrollment  
            for the class is greater than 20.5 pupils, but less than 21.5  
            pupils. The highest average enrollment for a class that a  
            school district can offer under this program, with a 30%  
            reduction in the penalty, is 25 pupils or more. 



           3)Previous legislation  .  SB 193 (Lowenthal) was identical to  
            this measure and was vetoed by the governor in October 2009  
            with the following message: 


            "This bill is premature, and therefore unnecessary at this  
            time, since LBUSD has not received a reduction in its K-3 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." 


            To date, LBUSD has not received a reduction in its K-3 CSR  
            program funding due to evaluations or closures at Avalon  
            school.  



           4)Related legislation  .  








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             a)   AB 548 (Chesbro), pending in the Senate Appropriations  
               Committee, grants local education agencies specific options  
               for claiming class size reduction funding in the 2008-09  
               school year and authorizes the Riverside Unified School  
               District to receive funding for grade 3 classrooms that  
               participated in the CSR program during the 2009-10 school  
               year. 

             b)   AB 2272 (Block), for the 2010-11 and 2011-12 fiscal  
               years, modifies the K-3 CSR program flexibility enacted in  
               SB 4 X3 (Ducheny), Chapter 12, Statutes of 2009 (part of  
               the February 2009 budget deal).   This bill was held on  
               this committee's suspense file in May 2010.  


           Analysis Prepared by  :    Kimberly Rodriguez / > / (916) 319-2081