BILL NUMBER: SB 1396 INTRODUCED
BILL TEXT
INTRODUCED BY Senator Lowenthal
(Coauthor: Assembly Member Bonnie Lowenthal)
FEBRUARY 19, 2010
An act to add and repeal Chapter 3 (commencing with Section 63060)
of Part 35 of Division 4 of Title 2 of the Education Code, relating
to education funding.
LEGISLATIVE COUNSEL'S DIGEST
SB 1396, as introduced, Lowenthal. Education funding: maximum
categorical education flexibility pilot program.
Existing law establishes various categorical education programs
and appropriates the funding for those programs in the annual Budget
Act. Existing law requires the Superintendent of Public Instruction,
for the 2008-09 to 2012-13 fiscal years, inclusive, to apportion from
the amount provided in the annual Budget Act for specified
categorical education programs an amount based on the same relative
proportion that the local educational agency received in the 2008-09
fiscal year for those programs and authorizes school districts, for
those fiscal years, to use these funds, with specified exceptions,
for any educational purpose, to the extent permitted by federal law.
Existing law, for those fiscal years, deems local educational
agencies that use these categorical education program funds for any
educational purpose to be in compliance with the program and funding
requirements of those categorical education programs.
Existing law, as a condition of receiving the categorical
education program funds that may be used for any educational purpose,
requires school districts and county offices of education, at a
regularly scheduled, open, public hearing, to take testimony from the
public, discuss, and approve or disapprove the proposed use of
funding. Existing law requires a local educational agency to report
expenditures, as specified, to indicate the activities for which
these funds were expended and requires the department annually to
collect and provide this information to the appropriate legislative
policy and budget committees and the Department of Finance.
This bill would establish the 3-year Maximum Categorical Education
Flexibility Pilot Program in which 3 school districts would be
selected to participate. To be eligible for selection, a school
district would be required to meet certain preconditions, including
developing a plan or initiative to accelerate pupils' progress to
proficiency that includes measurable metrics to improve pupil
performance, closing the achievement gap, increasing college entrance
rates, and increasing career readiness. A school district selected
to participate would be required to agree to demonstrate significant
progress toward accelerating pupils' progress toward proficiency on
California's academic standards over the 3-year pilot project period,
a narrowing of the achievement gap in its federally recognized
subgroups, fiscal solvency, positive growth on the district API,
improvement in its college entrance rate, and an increase in its
graduation rate.
The bill would require the Superintendent to apportion to the
participating school districts a categorical education block grant
based on the funding those school districts received in the 2009-10
fiscal year for specified programs, including the Economic Impact Aid
Program, the Class Size Reduction Program, Child Nutrition Programs,
and Transportation Programs.
A participating school district would be allowed to use the block
grant funds for any purpose related to improving pupil achievement
and academic instruction and would be required to implement an open
and transparent process that allows public input when discussing and
deciding on the expenditure of categorical education block grant
funds. A participating school district would be deemed to be in
compliance with the program and funding requirements associated with
the categorical education programs included in the block grant.
A participating school district would be required to submit an
evaluative annual report to the department, the state board, the
Governor, and the Legislature and to submit to the department an
annual expenditure report.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. The Legislature finds and declares all of the
following:
(a) California school districts are facing immeasurable challenges
managing reductions in state funding and need maximum flexibility in
the ways they can utilize restricted funding from the state.
(b) The pilot project enacted by this act would give three school
districts maximum flexibility by creating a new categorical program
block grant that would include all the funding for categorical
education programs received by the district and allow that funding to
be used for any purpose related to improving pupil achievement and
academic instruction.
(c) The pilot project will demonstrate to state policymakers that
state money for categorical education programs can be managed more
efficiently and effectively by school districts to meet the academic
needs of all pupils and result in progress in closing the achievement
gap.
(d) Maximum categorical program flexibility will enhance a school
district's ability to support academic and career goals for all
pupils and provide systematic, differentiated instruction and
interventions to accelerate pupils' progress to proficiency.
(e) The pilot program will allow the state to evaluate the
benefits of maximum categorical program flexibility and ensure that
flexibility, when used correctly, will result in gains in pupil
achievement.
SEC. 2. Chapter 3 (commencing with Section 63060) is added to Part
35 of Division 4 of Title 2 of the Education Code, to read:
CHAPTER 3. MAXIMUM CATEGORICAL EDUCATION FLEXIBILITY PILOT
PROGRAM
63060. The Maximum Categorical Education Flexibility Pilot
Program is hereby established. The pilot project shall be implemented
during the 2011-12, 2012-13, and 2013-14 fiscal years. The
Superintendent shall select three school districts to participate in
the pilot project.
63061. In order to be eligible to apply for selection, a school
district shall meet the following preconditions:
(a) The school district has a plan or initiative to accelerate
pupils' progress to proficiency. The plan shall include measurable
metrics to improve pupil performance, close the achievement gap,
increase college entrance rates, and increase career readiness.
(b) The governing board of the school district has approved the
plan and developed corresponding policies in support of the plan.
(c) The evaluation of the performance of the superintendent of the
school district is linked to pupil performance goals.
(d) The school district can demonstrate a pattern of stability
between management and the bargaining units.
(e) There is community support for the plan.
63062. A school district selected to participate in the pilot
project shall agree to demonstrate all of the following:
(a) Significant progress toward accelerating pupils' progress
toward proficiency on California's academic standards over a
three-year period.
(b) A narrowing of the achievement gap in the district's federally
recognized subgroups.
(c) Fiscal solvency.
(d) Positive growth, as measured by the district's API score.
(e) An increase in the district's graduation rate.
(f) Improvement in the district's college entrance rate.
63063. The Superintendent shall apportion to the school districts
selected for participation in the pilot project a categorical
education block grant that is based on the funding those school
districts received in the 2009-10 fiscal year for the budget items
listed in paragraph (2) of subdivision (a) of Section 42605 and
budget items 6110-111-0001, 6110-119-0001, 6110-128-0001,
6110-130-0001, 6110-158-0001, 6110-166-0001, 6110-196-0001,
6110-201-0001, 6110-202-0001, 6110-203-0001, 6110-220-0001,
6110-224-0001, and 6110-234-0001. The amount of the categorical
education block grant shall be adjusted for cost of living and growth
in fiscal years that state funding is appropriated for those
purposes.
63064. (a) Notwithstanding any other law, a participating school
district may use the categorical education block grant funds that it
receives pursuant to subdivision (c) for any purpose related to
improving pupil achievement and academic instruction.
(b) A participating school district shall implement an open and
transparent process that allows public input when discussing and
deciding on the expenditure of categorical education block grant
funds.
63065. Notwithstanding any other law, for the 2011-12, 2012-13,
and 2013-14 fiscal years, a participating school district shall be
deemed to be in compliance with the program and funding requirements
contained in statutory, regulatory, and provisional language
associated with the items listed in subdivision (c) of this section
and paragraph (2) of subdivision (a) of Section 42605.
63066. (a) A participating school district shall submit an
evaluative annual report to the department, the state board, the
Governor, and the Legislature that details the progress made during
the immediately prior school year towards the goals set forth in
subdivision (c).
(b) A participating school district also shall submit to the
department an annual expenditure report.
64067. This section shall become inoperative on July 1, 2014,
and, as of January 1, 2015, is repealed, unless a later enacted
statute, that becomes operative on or before January 1, 2015, deletes
or extends the dates on which it becomes inoperative and is
repealed.