BILL ANALYSIS                                                                                                                                                                                                    




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair

                                           742 (Romero)
          
          Hearing Date:  05/28/2009           Amended: 05/06/2009
          Consultant:  Dan Troy           Policy Vote: ED 8-0
          _________________________________________________________________ 
          ____
          BILL SUMMARY:   SB 742 would require the Superintendent of  
          Public Instruction (SPI) and the State Board of Education (SBE)  
          to annually, commencing in November of 2010, identify the 10  
          lowest performing schools in the state and require the district  
          of those schools to notify parents and employees of the specific  
          facts and options.  The bill would create an advisory committee  
          to the SPI for the purpose of making recommendations to the SBE  
          on how to identify the lowest performing schools.  The local  
          education agency of an identified school would be required to  
          initiate at least one of the following "renewal" efforts:

                 Restructure the internal operations of the school,  
               including but not limited to, school leadership,  
               certificated and classified staff, and curriculum.

                 Operate the school under the oversight of a nonprofit  
               management organization with which the SPI and SBE have  
               jointly entered into a contract.

                 Reopen the school as charter school jointly approved by  
               the local education agency, the SPI, and the SBE.

          If a charter school is one of the listed schools, the bill  
          specifies alternate options, including reopening the school  
          under the management of a statewide benefit charter organization  
          under direction of the SBE.  

          The bill would require an independent evaluation be completed by  
          March 1, 2015.  
          _________________________________________________________________ 
          ____
                            Fiscal Impact (in thousands)

           Major Provisions         2009-10      2010-11       2011-12     Fund
                                                                  
          Interventions                         $1,000  $1,000       
          Federal*











          Administration                    $200              $400 $200    
          General

          Evaluation                         Likely several hundred  
          thousand dollars            General

          *May result in General Fund pressure to the extent federal funds  
          are unavailable                    
          _________________________________________________________________ 
          ____

          STAFF COMMENTS: SUSPENSE FILE.  AS PROPOSED TO BE AMENDED.
          
          Current state and federal law establishes several accountability  
          and intervention programs.  Under the federal No Child Left  
          Behind Act (NCLB), schools and local 
          Page 2
          SB 742 (Romero)

          education agencies may subject to certain interventions for  
          failing to make adequate yearly progress, as specified.  The  
          state has also enacted a number of measures aimed at supporting  
          districts struggling academically and/or subjecting them to  
          sanctions for failing to make specified progress, such as the  
          II/USP program authorized by Chapter 3/1999 (SB 1x, Alpert), the  
          High Priority Schools Grant Program authorized by Chapter  
          749/2001 (AB 961, Steinberg), and the Quality Education  
          Investment Act (QEIA) authorized by Chapter 751/2006 (SB 1133,  
          Torlakson). 

          This bill would add another layer of intervention to the system.  
           The bill would create an advisory committee for the purpose of  
          making recommendations to the SBE on how to identify the 10  
          historically lowest performing public schools in the state.  The  
          committee would be required to consider results from the  
          California Standards Test, the Academic Performance Index,  
          adequate yearly progress pursuant to NCLB, rates of dropout and  
          graduation, and other objective measures. The committee would  
          also recommend criteria for removal from the list.  Once a  
          district school is identified on the list, the district would be  
          required to notify parents and employees of the school of the  
          reasons why the school was identified.  The notification would  
          include specified schoolwide assessment results and information  
          on intradistrict and interdistrict transfer options. 











          The bill specifies that the Director of Finance will notify the  
          SPI and SBE if sufficient federal funds are not available for  
          these renewal efforts. The SPI and SBE would then be required to  
          submit a budget request to fund the renewal efforts, and notify  
          the schools that the renewal efforts are optional but not  
          mandatory unless funding is the budget request is approved.  

          This bill would drive new costs at the Department of Education  
          for staffing the advisory committee and providing guidance and  
          technical assistance to the identified schools.  As the  
          identified schools grow over time, so would the costs.  SDE  
          indicates initial costs in the range of $400,000, with ongoing  
          costs depending on the number of schools in need of monitoring  
          and assistance.  Further, costs for the evaluation would likely  
          be in the hundreds of thousands of dollars.  

          There would also be local costs.  These costs would include the  
          analysis of the reasons for the school's poor performance,  
          specified notification of parents and employees, and the costs  
          of the interventions.  Considering the costs of other  
          intervention programs, it would be reasonable to assume that the  
          cost per school would be at least $100,000, for a total annual  
          cost of $1 million. To the extent federal funding is  
          insufficient to fund the interventions, there would be general  
          fund pressure to cover the costs, as made explicit in the bill  
          by requiring the SBE and SPI to request funding from in the  
          budget in that instance.  

          Author's amendments would limit total number of schools to 10  
          and identify schools already subject to intervention through  
          federal law, and make other technical changes.