BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 651
                                                                  Page  1

          Date of Hearing:   July 8, 2009

                           ASSEMBLY COMMITTEE ON EDUCATION
                                Julia Brownley, Chair
              SB 651 (Romero and Steinberg) - As Amended:  July 1, 2009

           SENATE VOTE  : 37-1
           
          SUBJECT  : Pupil retention

           SUMMARY  : Requires the Superintendent of Public Instruction  
          (SPI), on or before August 1, 2011, and annually thereafter, to  
          submit an Annual Report on Dropouts in California, as specified,  
          to the Governor, Legislature, and State Board of Education  
          (SBE); also deletes a conditional operative date in existing law  
          relating to changes in the Academic Performance Index (API).   
          Specifically,  this bill  :

          1)Requires the report to utilize data from the California  
            Longitudinal Pupil Achievement Data System (CALPADS) and other  
            available data.

          2)Requires that the report include, but not be limited to:

             a)   Specified drop out rates for each of grades 7 through  
               12, grades 9 through 12 and middle schools, and promotion  
               rates from grade 9 to grade 10.

             b)   The percentage of high school students at each grade  
               level on track to graduate in four years and the average  
               number of non-promotional school moves made by pupils  
               between grades 6 and 12, inclusive.

             c)   "Full year" dropout rates for alternative schools.

             d)   California High School Exit Exam passage rates, as  
               well as other data relating to dropout or graduation  
               rates, or progress toward graduation.

          3)Requires the report to include, when data is available:

             a)   Four, five, and six year graduation rates.

             b)   The percentage of high school graduates and dropouts  
               who completed courses that are certified by the  








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               University of California as meeting admission requirement  
               criteria for the University of California and California  
               State University systems.

             c)   The percentage of high school graduates and dropouts  
               who completed two or more classes in career technical  
               education.

             d)   The percentage of high school graduates and dropouts  
               who completed both course sequences described in (b) and  
               (c) above.

             e)   Behavioral data including suspension and expulsions,  
               truancy rates, and GED earning rates.

          4)Requires, if possible, that dropout data be presented in the  
            report organized by state, county, district and school.

          5)Authorizes the report to include relevant data on school  
            climate and pupil engagement from the California Health Kids  
            Survey.

          6)Requires the report to include data from alternative middle  
            and high schools, as specified.

          7)Requires, if possible, the data to be presented for  
            subgroups, grade level, ethnicity, gender, socioeconomic  
            status, limited English proficiency and disability if a  
            subgroup has at least 50 pupils and constitutes at least 15  
            percent of the total population of pupils at a school.

          8)Requires the first annual report to include data from the  
            most recent year, and subsequent reports to include data  
            from the most recent year and, at minimum, data from two  
            prior years.

          9)Requires the SPI to comply with additional requirements,  
            including making an oral presentation of the report to the SBE  
            at a regularly scheduled meeting, and making the contents of  
            the report available on the California Department of Education  
            (CDE) website as specified.

          10)Authorizes the omission of school-level data from the  
            written report, if this data renders the written report  
            unwieldy and if the data is posted on the CDE website.








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          11)States Legislative intent that the report be useable by  
            schools, districts, policymakers, researchers, parents, and  
            the public, for purposes of identifying and understanding  
            trends, causal relations, early warning indicators, and  
            potential points of intervention to address the high rate of  
            dropouts in California. 

          12)Deletes a conditional operative date in existing law related  
            to changes in the API, required by SB 219 (Steinberg), Chapter  
            731, Statutes of 2007, regarding the addition of grade 8 and 9  
            dropout rates and the linking of accountability data for  
            alternative school students back to their high school of  
            origin.  

           EXISTING LAW  :

          1)Requires the SPI, with the approval of the SBE, to develop and  
            implement the API to measure the performance of schools, and  
            to include a variety of indicators, including achievement test  
            results, attendance rates, and graduation rates in that  
            measure.

          2)Requires the SPI to establish an advisory committee to provide  
            advice on all appropriate matters relative to the creation of  
            the API.

          3)Defines a four-year, five-year, and six-year high school  
            graduation rate, and adds partial credit for pupils who  
            graduate from high school in five or six years to the  
            calculation of the API for each high school.

          4)Requires in the calculation of the API that the test scores of  
            pupils referred to alternative programs be attributed to their  
            school and district of residence.

          5)Requires school districts to provide specific intensive  
            instruction and services for up to two additional years to  
            pupils who have not met the high school exit examination  
            requirement for graduation and have failed one of both parts  
            of that examination by the end of 12th grade.

          6)Requires the SPI to provide an annual report to the  
            Legislature on the graduation and dropout rates in California  
            and to make the same report available to the public.








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           FISCAL EFFECT  : According to the Senate Appropriations Committee,  
          in order to compile appropriate data and complete an annual  
          report, the Department of Education (CDE) would need two  
          positions and assorted other costs for printing and posting.  
          These costs are estimated at between $300,000 and $400,000 per  
          year.

           COMMENTS  : In February of 2008, the California Dropout Research  
          Project (CDRP) at the University of California, Santa Barbara  
          issued a Policy Committee Report entitled, Solving California's  
          Dropout Crisis.  CDRP reported that the estimated average  
          graduation rate in a school district in California in 2003-04  
          was 71 percent, and that nearly 80,000 students had dropped out  
          of the graduating class of 2006.  The report also estimated that  
          the economic loss to the state from the dropouts in one grade  
          cohort of students over their lifetime is greater than $46  
          billion.

          In its report CDRP made a number of recommendations aimed at  
          moving the state, local school districts, and schools to focus  
          and implement change with respect to school dropouts; these  
          recommendations included:

          1)Fix the accountability system in order to maintain pressure  
            and to allow sufficient time to address the problem.

          2)Collect and report more useful data on dropouts and the  
            state's progress in improving graduation rates.

          3)Use the data to issue an annual California High School  
            Graduation Report that documents trends in dropout, promotion,  
            and graduation rates and statewide efforts to address the  
            problem and the effectiveness of those efforts.

          This bill can be viewed as the third in a series of bills that  
          move to implement these recommendations.  SB 219 (Steinberg),  
          Chapter 731, Statutes of 2007, makes changes in the calculation  
          of and in the process for revising the API, especially with  
          respect to dropout and graduation rates, and the treatment of  
          data for pupils in alternative schools; effectively this bill  
          was designed to make changes in the accountability system and to  
          curtail the ability of school districts to mask dropout problems  
          by moving pupils to alternative programs.  SB 1251 (Steinberg),  
          Chapter 710, Statutes of 2008, defines a four-year, five-year,  








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          and six-year high school graduation rate, adds partial credit  
          for pupils who graduate from high school in five or six years to  
          the calculation of the API for each high school, and otherwise  
          leads to more useful data on dropouts and graduation rates.   
          This bill requires the production of the Annual Report on  
          Dropouts in California, and specifies the content of that  
          report.

          According to the author, "SB 651 would make smarter use of  
          existing student data to shine a spotlight on one of our most  
          pressing education and economic challenges [the high school  
          dropout crisis]. The bill requires the Superintendent of Public  
          Instruction to provide an annual written report on dropouts";  
          the author also points out that, "the report would include:  
          early warning indicators of students at high risk of dropping  
          out, such as ninth-grade promotion rates, middle school dropout  
          rates, course credit earning rates, and CAHSEE passage rates;  
          more accurate dropout rates for alternative schools with highly  
          mobile populations; and, when the data is available, the report  
          would also include behavioral data about students, such as  
          suspension and expulsions, truancy rates; and relevant data  
          about student engagement and school climate from the Healthy  
          Kids Survey and the California School Climate Survey."

          This bill also deletes a conditional operative date in existing  
          law related to changes in the API required by SB 219  
          (Steinberg).  SB 219 addresses issues related to tracking the  
          progress of at-risk students and holding schools and districts  
          accountable for that progress; the bill makes changes in three  
          areas: 1) adding grade 8 and 9 dropout rates as factors in the  
          API; 2) asking the API advisory committee to examine issues  
          related to the bill's revisions in the API; and 3) assigning  
          data of each student enrolled in an alternative program to the  
          API of that student's school and district of residence.  The CDE  
          was working to make these changes and was planning to take this  
          item to the SBE for approval in December of this year.  However,  
          CDE was advised by its counsel that these changes to the API  
          could not be made until conditional language included in SB 219  
          was satisfied, making the statute operative.  That language  
          reads that, "This section shall become operative only if local  
          educational agencies receive a per pupil allocation prior to the  
          2010-11 fiscal year for implementation of the California  
          Longitudinal Pupil Achievement Data System established pursuant  
          to Section 609000."  The local agency funding for the  
          implementation of CALPADS was never made available.  The data in  








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          CALPADS, however, is now available and the author's office  
          believes it is time to use that data to move forward with the  
          implementation of the changes to the API enacted by SB 219.  The  
          deletion (of the conditional operative date) proposed by this  
          bill will allow this implementation to move forward.

          Committee amendments:

          1)A "Full-year" dropout rate for alternative schools is not a  
            term of art nor is it a calculation that is defined in code.   
            Committee staff recommends that the SPI be directed to develop  
            a methodology or methodologies to calculate "full-year"  
            dropout rates in alternative schools, including dropout  
            recovery high schools, and to provide an explanation of this  
            methodology or methodologies in the annual report.

          2)Current practice is to calculate school district dropout rates  
            that include the results in all charter schools located in a  
            given district.  Since all charter schools in a district are  
            not operated by or even authorized by that district, this  
            practice may assign a district pupil results over which the  
            district has no control.  In the interest of full information,  
            Committee staff recommends that dropout rates be calculated  
            for a district both including (per current practice) and  
            excluding charter schools in the district.

          3)Committee staff recommends that the bill be amended to correct  
            a drafting error resulting in a misspelling.

          Previous legislation: SB 1251 (Steinberg), Chapter 710, Statutes  
          of 2008, defines a four-year, five-year, and six-year high  
          school graduation rate, adds partial credit for pupils who  
          graduate from high school in five or six years to the  
          calculation of the API for each high school.  SB 219  
          (Steinberg), Chapter 731, Statutes of 2007, makes changes in the  
          calculation of and in the process for revising the API,  
          especially with respect to dropout and graduation rates, and the  
          treatment of data for pupils in alternative schools.  AB 2167  
          (Arambula), Chapter 743, Statutes of 2006, establishes a  
          specific methodology for including graduation rates, as  
          previously required, in the API; also requires the  
          Superintendent of Public Instruction (SPI) to report annually to  
          the Legislature on graduation and dropout rates in the state.   
          SB 1 X1 (Alpert), Chapter 3, Statutes of 1999-2000 First  
          Extraordinary Session, known as the Public Schools  








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          Accountability Act (PSAA), authorizes the state's current  
          accountability program, including establishment of the PSAA  
          Advisory Committee and development of the API.

           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          Aspiranet
          Association of California School Administrators (if amended)
          California ACORN
          Fight Crime: Invest in Kids California
          PICO California
          Public Advocates
          School for Integrated Academics & Technologies (with amendments)

           
            Opposition 
           
          None on file

           Analysis Prepared by  :    Gerald Shelton / ED. / (916) 319-2087