BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 1357
                                                                  Page  1

          Date of Hearing:   August 4, 2010

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                  SB 1357 (Steinberg) - As Amended:  June 23, 2010 

          Policy Committee:                             Education Vote:8-0

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

           SUMMARY  

          This bill requires the Annual Report on Dropouts to include  
          chronic absentee rates and requires the State Department of  
          Education (SDE) to modify the California Longitudinal Pupil  
          Achievement Data System (CALPADS) to include pupil attendance  
          data for use by local education agencies (LEAs), as specified.   
          Specifically, this bill:  

          1)Defines "chronic absentee rates" as missing more than 10% of  
            the schooldays in the school year, as specified.   

          2)Requires SDE, contingent upon the receipt of federal funds for  
            this purpose, to prepare CALPADS to include pupil attendance  
            data by developing processes for the transfer of data between  
            LEAS, as specified. 

          3)Requires CALPADS to support LEAs in their efforts to identify  
            and support pupils at risk of dropping out and be capable of  
            issuing periodic reports on the rates of absences and chronic  
            absentees to LEAs, as specified.  

          4)Expresses legislative intent to support the development of  
            early warning systems (EWS) to enable the identification and  
            support of individual pupils who are at risk of academic  
            failure or dropping out of school, as specified.  

          5)Requires the EWS to have the following characteristics: (a)  
            the utilization of highly predictive indicators, including  
            attendance, course grades/completion, performance on state  
            assessments, suspensions, and expulsions; (b) a thorough  
            validation process to ensure the predictive reliability of the  
            systems; and (c) periodic reports that inform schoolsite staff  








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            and parents in a manner that enables timely identification and  
            support of individual pupils who are at risk of academic  
            failure or dropping out.    

           FISCAL EFFECT  

          1)GF administrative costs, of approximately $300,000, to the SDE  
            to complete the requirements of this measure, including  
            modifying CALPADS to collect pupil attendance data.  This  
            measure requires SDE to modify CALPADS, contingent upon the  
            receipt of federal funding for this purpose.  In May 2010, the  
            federal government rejected California's application for a  
            grant to upgrade and expand the state's data systems,  
            including CALPADS.  The author argues other federal funds are  
            available to implement this measure.  

          2)GF/98 cost pressure, of at least $3.1 million, to LEAs to  
            submit pupil attendance data via CALPADS to SDE.  This bill  
            specifies the submission of this data is voluntary.  The  
            intent of the bill, however, is for school districts to have  
            the capability to establish EWS programs and they cannot do  
            this without collecting pupil attendance data.  

           SUMMARY CONTINUED  : 

          6)Authorizes an LEA, when CALPADS is prepared to accept pupil  
            attendance data, to submit data to SDE on a quarterly rate of  
            pupil attendance and other indicators identified by SDE.  This  
            measure further requires SDE to provide EWS reports to LEAs  
            upon request.  

          7)Requires SDE to notify LEAs that reporting pupil attendance  
            and chronic absentee data is voluntary.  This bill also  
            requires the notice to include a description of the benefits  
            of reporting pupil attendance and chronic absentee data in  
            fostering the development of effective supports and  
            interventions for at-risk pupils.  

           COMMENTS  

           1)Purpose  .  According to the California Dropout Research Project  
            August 2009 statistics, "Over the last 10 years, the annual  
            [dropout] rate has increased from 2.9% to 3.9%, while the  
            four-year rate has increased from 11.7% to 15.3%."  The report  
            also documents that over the last 10 years, "the number of  








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            high school dropouts in California increased twice as fast as  
            the number of graduates. And the number of high school seniors  
            who neither graduated nor dropped out increased by more than  
            100%."

            According to the author, "Chronic absence from school, even in  
            the primary grades, is one of the most accurate predictors of  
            later high school dropout. Our education data system, however,  
            is not equipped to collect data on absenteeism. California  
            must do more to support districts and make sure that  
            individual students, and schools, are identified when they  
            show clear signs of distress. Once identified, districts,  
            parents, schools and communities can do a better job of  
            providing the supports needed to address the problem."

           2)Status of federal Enhancing Education through Technology (ETT)  
            funds  .  The EETT program was established under the federal No  
            Child Left Behind Act of 2002 (NCLB) to provide funding to  
            Title I schools or schools that could demonstrate "a  
            substantial need for assistance in acquiring or using  
            technology."  According to the US Department of Education, the  
            primary goal of the program is to "improve student achievement  
            through the use of technology in elementary and secondary  
            schools." Local activities include the use of technology to  
            collect, manage, and analyze data to enhance teaching and  
            school improvement.


            The federal American Recovery and Reinvestment Act of 2009  
            (ARRA) allocated $72 million one-time to the state for the  
            EETT program.  This allocation was in addition to the $29  
            million in on-going federal EETT program funds received by the  
            state in 2009 pursuant to NCLB.  To date, the $29 million in  
            on-going funding has been allocated pursuant to current law.   
            Likewise, the governor's May 2010 budget proposal includes  
            $9.4 million in on-going EETT funding.  The reduced funding  
            level indicates the federal government is phasing-out the  
            program.  



            Pursuant to federal law, at least 95% of the $72 million in  
            one-time ARRA EETT funds must be allocated as grants to LEAs.   
            Up to five percent of the funds may be used for state  
            administration and state level activities.  The EETT program  








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            requires up to 50% of LEA funding be provided via formula  
            grants (based on the number of poor/needy pupils) and a  
            minimum of 50% in LEA funding be provided via competitive  
            grants.  



            In the fall of 2009, the Department of Finance (DOF) requested  
            expenditure authority for the federal EETT funds from the  
            Legislature via the Section 28 budget process.  This authority  
            would have authorized funds to be allocated according to the  
            following: (a) $34 million for formula grants and (b) $38  
            million for competitive grants to school districts serving  
            pupils in grades 4-8.  This authority was denied based on the  
            Legislature's concern that the state has made several data and  
            technology commitments (i.e., CALPADS) and that the state  
            should use EETT funds that would maximize the effect on  
            statewide educational technology projects.



            During the legislative review process of DOF's expenditure  
            request, SDE conducted a request for proposal (RFP) process  
            for the competitive EETT funding.  School districts applied  
            and those that with successful applications received  
            notifications of their grant award.  SDE conducted this  
            process without explicit expenditure authority for EETT  
            funding.  Therefore, school districts did not receive their  
            grant awards.  By conducting the RFP process, SDE created an  
            expectation by school districts that they would receive this  
            funding.  


            The Assembly and Senate Budget Subcommittees debated the EETT  
            funding issue throughout the spring.  Even though SDE chose to  
            conduct the RFP process without explicit legislative  
            expenditure authority, the Assembly Budget Subcommittee voted  
            to allocate the funding based on DOF's initial expenditure  
            request for two reasons: (a) school districts had completed  
            the RFP process in good faith and (b) in many instances,  
            districts spent this money and are waiting for reimbursement.   



            The Senate Budget Subcommittee voted to allocate $34 million  








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            for formula grants and $48 million in competitive grants  
            (extra funding due to non-approval of state-level activities)  
            to allow school districts "to use technology and data to  
            improve college and career readiness and high school  
            graduation."  The funding provided for competitive grants is  
            not consistent with the grants submitted by school districts  
            and approved by SDE.  Instead, the Senate proposal repurposes  
            the competitive funds and requires school districts to undergo  
            a new RFP process.  The Senate proposal for the use of these  
            funds would allow school districts to apply for EETT funds to  
            establish EWS, as proposed in this measure.  



            Due to the different actions by the Assembly and Senate Budget  
            Subcommittees, the status of the federal EETT competitive  
            funds is a budget conference issue and is expected to be  
            resolved at the same time as the budget.  As of July 2010, the  
            Legislature provided expenditure authority for $34 million in  
            EETT formula grants to be allocated to school districts  
            according to federal law.  


           3)The CALPADS  , established by SB 1453 (Alpert), Chapter 1002,  
            Statutes of 2002, required the SDE to track student  
            achievement in order to comply with NCLB. A longitudinal  
            database requires individual student identifiers be given to  
            each student enrolled in the public K-12 system. In the  
            2004-05 fiscal year, school districts were provided incentive  
            funding to create these identifiers and establish systems to  
            maintain them. SDE reports that CALPADS is expected to be  
            fully functioning in all districts in the fall of 2009. 



            In November 2009, IBM was awarded the contract to develop  
            software for CALPADS. Between August and October 2009, IBM  
            released software to LEAs to perform the administrative and  
            practical function associated with collecting and reporting  
            student level data.  CALPADS, however, is not required to  
            collect pupil attendance data.   



           4)CALPDAS system issues  . In January 2010, SABOT Technologies  








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            issued a report on the status of the CALPADS system. The  
            report recommended the CALPADS project be stopped until the  
            following four major areas are addressed: (a) technical  
            architecture, (b) personnel, (c) engineering processes, and  
            (d) project management. According to SABOT, the stop  
            recommendation is "based on the overall status of the system,  
            our root cause analysis of the systems issues, and the  
            project's overall performance. This rating further means that  
            there are critical risks to the project's success that without  
            immediate and decisive action will increase in likelihood.  
            There is a high probability of project and system failure  
            should the project continue on the present path." 



            In response to this report, the Superintendent of Public  
            Instruction ordered LEAs to discontinue the majority of data  
            collections via the CALPADS system. The SPI indicated SDE and  
            IBM will develop a stabilization plan and perform a  
            comprehensive system review that will test process on all  
            CALPADS functions and components. This review occurred between  
            February and late March of this year.  Currently, LEAs are  
            submitting pupil data via CALPADS.  The timeline, however, for  
            submitting data has been significantly delayed due to the  
            system's problems.  



            The committee may wish to consider whether or not it is  
            appropriate to require CALPADS to collect additional data when  
            the system is not fully reporting the data required to be  
            collected under current law.  





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