BILL ANALYSIS                                                                                                                                                                                                    




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair

                                           1354 (Hancock)
          
          Hearing Date:  05/27/2010           Amended: 04/21/2010
          Consultant:  Dan Troy           Policy Vote: ED 7-1
          _________________________________________________________________ 
          ____
          BILL SUMMARY:   SB 1354 would entitle California Partnership  
          Academies (CPAs) that have been operational for three or more or  
          more years to an annual cost of living adjustment (COLA)  
          commencing in the 2011-12 fiscal year; would update the criteria  
          for student participation in a CPA; and would require career  
          technical education courses offered at a partnership academy to  
          be part of an occupational course sequence.    
          _________________________________________________________________ 
          ____
                            Fiscal Impact (in thousands)

           Major Provisions         2010-11      2011-12       2012-13     Fund
           
          CPA                    No/minor costs                   General*

           *Counts toward meeting the Proposition 98 minimum funding  
          guarantee                       
          _________________________________________________________________ 
          ____

          STAFF COMMENTS: SUSPENSE FILE.  AS PROPOSED TO BE AMENDED.
          
          Under current law, school districts are authorized to operate  
          California Partnership Academies (CPAs) that serve as a school  
          within a school for pupils in grades 10 through 12 for the  
          purposes of integrating academic and career technical education  
          for pupils deemed at risk of dropping out of school.  CPAs  
          provide occupational training in areas such as electronics,  
          computer technology, finance, agribusiness, graphic arts and  
          printing, international business, and space.  Programs partner  
          with a business and students typically will work as an intern in  
          their occupational field of concentration after their junior  
          year. 

          The bill would make various changes relating to CPAs. Current  
          law defines pupils "at risk" for purposes of enrollment in a CPA  
          and allows for the enrollment of non at-risk pupils, as defined.  










           Non at-risk pupils are prohibited from constituting more than  
          half of a CPA's enrollment.  This bill would alter the criteria  
          for identifying participants by deleting provisions for the  
          identification of non at-risk pupils and by modifying and adding  
          to the criteria by which at-risk pupils may be identified, as  
          follows:

                 Being absent from school for 20 percent or more of the  
               school year, whereas current law specifies "irregular  
               attendance."
                 Scoring below basic in mathematics or English language  
               arts pursuant to the STAR test. 
                 Maintaining a grade point average of 2.2 or below.

          Non at-risk pupils, though now undefined in statute, still could  
          not make up more than half of a CPA's enrollment.
          Page 2
          SB 1354 (Hancock)

          The bill would also provide that CPAs provide assurance that  
          career technical education (CTE) courses offered as part of an  
          occupational course sequence are tied to local regional and  
          economic need, are focused on skills leading to high entry-level  
          wages or the possibility of significant wage increases over  
          time, offer certification wherever possible, and offer CTE  
          course that meet A-G requirements, where appropriate.  

          Further, the bill would apply a statutory COLA to CPAs beginning  
          in the 2011-12 fiscal year.  Under current law, CPAs do not  
          receive a statutory COLA.  Applying a COLA would increase state  
          costs, depending on the size of the COLA for a given fiscal  
          year.  Due to the state's fiscal condition, CPA funding has been  
          reduced in recent budget agreements.  Undeficited, annual  
          program costs are $23.5 million, but the Governor's Budget  
          proposes $18.8 million in funding for the 2010-11 fiscal year.   
          Each one percent of COLA applied to CPAs, then, would range in  
          annual cost from $188,000 to $235,000, depending on the base  
          level of funding to which the COLA is applied.  

          It is unlikely that other provisions of the bill would result in  
          new state costs, though some of the requirements related to  
          course offerings may increase local costs of program operation  
          to the extent that local CPAs are not meeting the new  
          requirements.  To this end, the Department of Education  
          indicates that these requirements are already current practice.   












          Staff notes that there are multiple pots from which CPAs are  
          funded.  In addition to the annual Budget Act, CPAs have been  
          funded through other statutes.  AB 519 (2007) provided $12.5  
          million for the operation of CPAs focusing on green technologies  
          and industries over three years.  $52 million was provided for  
          the purposes of SB 70 (Scott, 2007), which focuses on preparing  
          students for advanced vocational coursework at a 2-year or  
          4-year institution.  Further SB 1133 (Torlakson, 2006)  
          appropriates $38 million annually through the 2013-14 fiscal  
          year for CPAs.  

          Author's amendments would delete the provision of a statutory  
          COLA to CPA programs.