BILL ANALYSIS                                                                                                                                                                                                    �




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair

                                          AB 790 (Furutani)
          
          Hearing Date: 08/25/2011        Amended: 07/06/2011
          Consultant: Jacqueline Wong-HernandezPolicy Vote: Education 7-1
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          ____
          BILL SUMMARY: AB 790 establishes, commencing with the 2012-13 
          school year, the Linked Learning Pilot Program to be 
          administered by the Department of Education (CDE) according to 
          specified requirements for the purpose of implementing 
          district-wide linked learning programs in all participating 
          school districts. This bill requires the Superintendent of 
          Public Instruction (SPI) to report on the program to the 
          Legislature and the Governor, as specified. This bill requires 
          the SPI to use existing state and federal resources to implement 
          the pilot.
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          ____
                            Fiscal Impact (in thousands)

           Major Provisions         2011-12      2012-13       2013-14        Fund
           
          Pilot Program                           ---Substantial on-going 
          cost  pressure---          General*                            

          CDE administration     Cost pressure:             $71            
                $71              General 

          *Counts toward meeting the Proposition 98 minimum funding 
          guarantee              
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          ____

          STAFF COMMENTS: SUSPENSE FILE.

          This bill creates in statute a new pilot program of up to 20 
          school districts, which would apply to participate, administered 
          by the CDE. The Linked Learning Pilot Program is intended to 
          expand district-wide linked learning career technical education 
          (CTE) programs, and specifies various requirements to which 
          participating districts must adhere in their Linked Learning 
          programs. This bill requires the CDE to review and approve 
          applications on a competitive basis (based upon criteria 








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          specified in the bill), and requires applicant districts to 
          demonstrate a plan to implement the components of a linked 
          learning program, as specified.

          This bill does not provide additional funding; it specifies that 
          school districts would operate pilots within their respective 
          existing resources. Thus, this bill creates a new pilot program 
          intended to encourage school districts to take on activities 
          they can already do under their existing authority, but now 
          subject to CDE rules and oversight and an application process 
          for participation with no additional resources. It is unclear 
          why schools would elect to participate in the absence of 
          additional funding, particularly at a time when much of a school 
          district's CTE funding is subject to categorical flexibility and 
          can be used for any educational purpose; participation would 
          further restrict funding decisions as well as programmatic 
          decisions.  

          Recent amendments to this bill have added a funding component, 
          which states that "if funds become available for the pilot 
          program" they will be distributed by the CDE on a competitive 
          basis. This language implies an intention to pursue funding for 
          Linked Learning activities, and creates substantial cost 
          pressure to fund this program. The CDE's September 2010 report 
          Multiple Pathways to Student Success indicates that the median 
          annual additional cost to operate Linked Learning programs is 
          $1,138 per pupil, above the cost of other CTE programs. Thus, 
          for every 1,000 pupils participating in the pilot, local costs 
          (and state cost pressure) would be more than $1 million.  

          This bill requires that by September 30, 2016, the SPI must 
          transmit a program evaluation report to the Legislature and the 
          Governor that includes: the costs and merits of the pilot 
          program, pupil outcome data, the number and percentages of 
          participating pupils who meet the requirements for admission to 
          California public postsecondary institutions, and workforce 
          outcome data. The report must also contain recommendations 
          regarding the need for additional statutory changes to 
          facilitate the statewide expansion of the pilot program. To the 
          extent that the SPI recommends further expansion of this pilot 
          program, there will be additional cost pressure for both initial 
          and expanded funding. 

          The bill specifies that this report and the program 








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          administration must be done by the CDE within its existing 
          resources, and the CDE has indicated that it has staff who can 
          administer the pilot program without an additional funding 
          appropriation. The CDE estimates that staff time would include a 
          .5 PY consultant and .25 analyst level position, which total 
          $71,000. Staff notes that the CDE budget has been reduced by 30% 
          in the past three years and, in the absence of this bill, those 
          staff resources would be used for other department activities.