BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 1523
                                                                  Page  1

          Date of Hearing:   May 16, 2012

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                     AB 1523 (Perea) - As Amended:  May 2, 2012 

          Policy Committee:                              Education 
          Vote:6-4

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

           SUMMARY  

          This bill, commencing with the 2013-14 school year, and when 
          funds become available for additional partnership academies 
          (PAs), requires the Superintendent of Public Instruction (SPI) 
          to issue grants for the establishment of PAs and give priority 
          to PAs dedicated to educating pupils in transportation for the 
          21st Century.  Specifically, this bill: 

          1)Requires the SPI to continue giving priority to transportation 
            PAs until no less than one of these academies is established 
            in each geographical area of the California High-Speed Rail 
            Project (High Speed Rail) planned project sections. 

          2)Authorizes the PAs to include, but not be limited to, 
            educating pupils in construction, engineering, operations, 
            maintenance, manufacturing of rolling stock, mechanical 
            functions, equipment operations, and information technology. 

          3)Requires the State Department of Education (SDE), if a school 
            district decides to convert an existing PA into one focused on 
            transportation, to provide the transportation academy with 
            first-year implementation funds, as specified.  

          4)Requires the transportation PA's coursework and 
            internship/pre-apprenticeship programs to focus on the use of 
            environmentally sound technologies and practices, in order to 
            be eligible for funding.  

          5)Authorizes the priority established in this measure to be 
            satisfied when the specified number of transportation PAs are 
            funded by utilizing funds appropriated for PAs.  








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           FISCAL EFFECT  

          1)GF/98 costs, of at least $2.1 million, to establish additional 
            PAs with an emphasis on transportation for the 21st Century.  

          2)The 2011 Budget Act allocated approximately $21.4 million 
            GF/98 and special fund for the PA program.   This amount 
            includes $2.6 million for the Clean Technology and Renewable 
            Energy Academies.  According to SDE, there are over 500 PAs 
            that enroll approximately 50,000 high school students in the 
            state.  SDE also reports 38 PAs either failed or closed within 
            the fiscal year (FY). The closure of these academies equals 
            approximately $2.8 million in unallocated funds for this 
            program.      

           COMMENTS  

           1)Purpose  .  The author states: "According to a report prepared 
            for the �SDE], 95% of PA seniors in 2009-10 graduated at the 
            end of the school year, compared with 85% statewide. 57% of PA 
            graduates reportedly completed the A-G course sequence 
            required for freshman admission to the University of 
            California or the California State University, compared with 
            36% of graduates statewide. With 50% of the students required 
            to be 'at risk' students, PAs have proven to be a vital 
            resource in lowering high school dropout rates in California. 
            "

            The author contends this bill will lead to a better trained 
            workforce able to handle the demands necessary for 21st 
            Century transportation projects, including the High Speed Rail 
            Project.  

           2)Program background  .  A PA is a three-year program, grades 
            10-12, structured as a school-within-a-school. Academies 
            incorporate many features of the high school reform movement, 
            which include creating a family-like atmosphere, integrating 
            academic and career technical education (CTE), and 
            establishing viable business partnerships. Emphasis is also 
            placed on student achievement and positive postsecondary 
            outcomes as well as the integration of a standards-based 
            academic and career technical curriculum. 

            According to an October 2011 report entitled California 








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            Partnership Academies 2009-10 (Dayton, C., Hester, C., Stern, 
            D., UC Berkeley), there were approximately 470 PAs who 
            submitted information to SDE.  These academies operated in 278 
            of California's 1,264 comprehensive high schools. Most high 
            schools with PAs rank below average on the state's Academic 
            Performance Index. The 437 CPAs that provided student-level 
            data enrolled 48,436 students in grades 10-12 - about 3% of 
            the state's 1.6 million students in these grades. CPAs serve 
            36 of California's 58 counties. California's six most populous 
            counties-Los Angeles, Sacramento, Alameda, Riverside, San 
            Diego, and Contra Costa -have a total of 287 CPAs.

           3)Recent legislation creating "themed" PAs  .  

            SB 1X (Steinberg), First Extraordinary Session, Chapter 2, 
            Statutes of 2011 established the Clean Technology and 
            Renewable Energy Job Training, CTE, and Dropout Prevention 
            program for the purpose of creating PAs that focus on clean 
            technology and renewable energy businesses, as specified.  
            According to SDE, 20 school districts received a $15,000 
            planning grant, for a total of $300,000, to begin operating 
            these PAs in 2011-12.  Chapter 2 further requires an annual 
            allocation of $8 million be made to the SPI from the Renewable 
            Resources Trust Fund to fund the clean technology PAs.       

            AB 2855 (Hancock), Chapter 685, Statutes of 2008, established, 
            commencing with the 2009-10 school year, the Green Technology 
            PAs and the Goods Movement PAs as two new categories with the 
            overall PA program.  AB 517 (Committee on Budget), Chapter 
            757, Statutes of 2008 allocated $12.5 million from the Public 
            Interest Research and Development Training Fund (within the 
            Energy Commission) to SDE to establish the Green Technology 
            PAs.  This funding was to be used over a three-year period and 
            $500,000 of the allocation was provided to SDE for 
            administration of this program.  

            According to SDE, the allocation in Chapter 757 funded 40 
            academies over a three year period.  Technically, this money 
            should be expended by now.  SDE, however, reports some of 
            these academies closed, which enabled the department to 
            allocate $1.32 million GF/98 in supplemental grants to 15 of 
            the remaining Green PAs in the 2011-12 FY.  
           
          4)Status of High Speed Rail Project  .  The Safe, Reliable 
            High-Speed Passenger Train Bond Act for the 21st Century, 








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            approved as Proposition 1A in November 2008, provides $9.95 
            billion in general obligation bond authority to fund the 
            planning and construction of a high-speed passenger train 
            system and complementary improvements to other specified rail 
            systems in the state. 

            The California High Speed Rail Authority (HSRA) is responsible 
            for planning and constructing the passenger train that would 
            link the state's major population centers.  According a 
            2012-13 budget analysis by the Legislative Analyst Office 
            (LAO), "In April 2012, the HSRA released its most recent 
            business plan that estimates the cost of constructing the 
            first phase of the high-speed train project at $68 billion. 
            However, the HSRA only has secured about $9 billion in voter 
            approved bond funds and $3.5 billion in federal funds. Thus, 
            the availability of future funding to construct the system is 
            highly uncertain."  

            The LAO further states: "The Governor's budget plan for 
            2012-13 requests $5.9 billion-$2.6 billion in state bond funds 
            matched with $3.3 billion in federal funds to begin 
            construction of the high-speed rail line in the Central 
            Valley. In addition, about $800 million is requested to make 
            improvements to existing passenger rail services and about 
            $250 million to complete preliminary design work and 
            environmental reviews for various sections of the project."  

            According to the LAO: "We find that HSRA has not provided 
            sufficient detail and justification to the Legislature 
            regarding its plan to build a high-speed train system. 
            Specifically, funding for the project remains highly 
            speculative and important details have not been sorted out. We 
            recommend the Legislature not approve the Governor's various 
            budget proposals to provide additional funding for the 
            project."


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