BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 2617
                                                                  Page  1

          Date of Hearing:   April 11, 2012

                           ASSEMBLY COMMITTEE ON EDUCATION
                                Julia Brownley, Chair
              AB 2617 (Blumenfield) - As Introduced:  February 24, 2012
           
          SUBJECT  :   Pupil retention: dropout recovery programs: funding 
          report

           SUMMARY  :   Requires the Superintendent of Public Instruction 
          (SPI), in cooperation with the State Board of Education (SBE) 
          and the Legislative Analyst's Office (LAO), to publish a report 
          and recommendations addressing the adequacy of funding for 
          dropout recovery programs in California, as specified.  
          Specifically,  this bill  :  

          1)Requires the report be submitted on or before May 31, 2013.

          2)Specifies that in preparing the report, the SPI shall review 
            dropout recovery programs in other states, including, but not 
            limited to, the Texas Dropout Recovery Pilot Program, the 
            Texas Optional Flexible School Day Program, and the Arizona 
            dropout recovery programs authorized by a specified section of 
            the Arizona Revised Statutes.

          3)Makes findings and declarations relative to a study by the 
            National Governor's Association Center for Best Practices 
            which concludes that quality alternatives to traditional 
            comprehensive high schools are lacking and that there are too 
            few financial incentives for dropout recovery.

          4)Finds and declares that research demonstrates that dropout 
            recovery high schools face added costs and a number of 
            challenges in reengaging pupils, as specified; and that 
            successful dropout recovery high schools utilize multiple 
            strategies to reach the variety of learning modalities of the 
            population that they serve.

          5)Declares that incentives for dropout recovery programs would 
            increase the number of pupils served and could result in a 
            significant return on the state's investment.

           EXISTING LAW  :

          1)Defines a dropout recovery high school to be a high school in 








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            which 50% or more of its pupils have been designated as 
            dropouts pursuant to the exit/withdrawal codes developed by 
            the California Department of Education (CDE).  (Education Code 
            Section (EC) 48070.6)

          2)Requires the SPI and the SBE to allow dropout recovery high 
            schools (DRHS), numbering no more than 10, to report the 
            results of an individual pupil growth model, that the SPI 
            certifies as meeting specified criteria, in lieu of other 
            indicators under the state's alternative accountability 
            system.  Defines a "dropout recovery high school" for this 
            purpose, as a school offering instruction in any of grades 
            9-12 in which 50% or more of its pupils are designated as 
            dropouts pursuant to the exit and withdrawal codes developed 
            by the CDE and the school provides instruction in partnership 
            with any of the following: 

             a)   The federal Workforce Investment Act;
             b)   Federally affiliated Youthbuild programs;
             c)   Federal job corps training or instruction provided 
               pursuant to a memorandum of understanding with the federal 
               provider; or,
             d)   The California Conservation Corp (CCC) or local 
               conservation corps certified by the CCC.  (EC 52052.3)

          3)Requires the SPI to provide an annual report to the 
            Legislature on the graduation and dropout rates in California 
            and to make the same report available to the public.  (EC 
            48070.6)

           FISCAL EFFECT  :   Unknown 

           COMMENTS  :  "Dropout recovery programs" are not defined in the 
          Education Code and are not defined in this bill; however, 
          current law defines "dropout recovery high school" (DRHS) in two 
          different sections of the Code and both sections provide a 
          different definition.  One section defines DRHS as high schools 
          where 50% or more of its pupils have been designated as dropouts 
          pursuant to the exit/withdrawal codes developed by the CDE and 
          are also defined as schools where at least 50% of the enrollees 
          are dropouts pursuant to CDE designations, and where the school 
          provides instruction under the federal Workforce Investment Act, 
          federal Youthbuild programs, federal job corps, or the 
          California Conservation Corps.  









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          This bill requires a study to examine the adequacy of funding of 
          dropout recovery programs in California and to publish a report 
          with recommendations.  The bill does not stipulate what the 
          purpose of the report is, and the language lacks specificity on 
          what the recommendations should focus on.  It is widely known 
          that levels of funding for California schools and specific 
          programs are inadequate.  Moreover, in recent years, state 
          policies have been shifting away from creating dedicated sources 
          of funds for specific programs.  Instead, there has been a move 
          to consolidating categorical programs into block grants, and 
          -due to fiscal constraints- to temporarily giving districts 
          broad flexibility in the use of categorical funds.  

          According to the author's staff, the desired outcome of the 
          report is to obtain a better understanding of the landscape of 
          dropout recovery in California and the author intends for this 
          report to include an inventory of existing dropout recovery 
          programs, the effectiveness of these programs, the funding 
          streams used for purposes of dropout recovery programs, and the 
          types of services that are provided in dropout recovery 
          programs.   Staff recommends  an amendment to specify the 
          aforementioned elements to be included in the report.   

          The bill further requires the report to review dropout recovery 
          programs in other states including Texas and Arizona, but does 
          not stipulate the objective in reviewing these specific 
          programs.  If the intended purpose is to identify successful 
          models for California to follow, no evidence has been provided 
          to demonstrate that the programs in the aforementioned states 
          have had a level of success, and thus it is questionable whether 
          this bill should create the perception of endorsing these 
          programs.   Staff recommends  an amendment to eliminate the 
          reference to the specific programs in the specified states and 
          instead require the SPI to review dropout recovery programs in 
          other states, including but not limited to, successful models in 
          other states.  

           Previous dropout prevention and recovery efforts  :  The Dropout 
          Prevention and Recovery Act, enacted through SB 65 in 1985, 
          provided funding for dropout prevention programs that include 
          the Pupil Motivation and Maintenance Program, Alternative 
          Education Outreach Consultant Program, and the Education Clinic 
          Program.  According to the CDE, the Educational Clinic Program 
          was designed to return students who had been out of school 45 or 
          more consecutive days or had been expelled from school to an 








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          educational setting.  The Educational Clinic Program was 
          intended to be a type of "dropout recovery" program and 
          according to CDE, Educational Clinic programs were highly 
          effective in recovering and retaining students who had not been 
          attending school.  Additional outcomes included successful 
          transitions to traditional school or to another educational 
          program, increased reading scores, increased numbers of credits 
          for graduation.  In 2004, SB 65 funds were incorporated into the 
          Pupil Retention Block Grant.  In 2009, as part of budget 
          actions, the Pupil Retention Block Grant was incorporated into 
          the categorical flexibility provisions, pursuant to SBX3 4 
          (Ducheny), Chapter 12, Statutes of the 2009-10 Third 
          Extraordinary Session, giving school districts the authority to 
          use funds from 39 categorical funds for any educational purpose 
          from fiscal year (FY) 2008-09 through 2012-13.  Recent budget 
          actions have extended the flexibility provisions to FY 2014-15.  
            

           Relevant study  :  A study conducted by the Regional Educational 
          Laboratory at WestEd titled, "Reenrollment of High School 
          Dropouts in a Large, Urban School District" followed a cohort of 
          first-time 9th graders in San Bernardino City Unified School 
          District (SBCUSD) from 2001/02 to 2005/06 and documented their 
          dropout, reenrollment, and graduation rates.  By 2005/06, 45% of 
          standard graduates had earned regular high school diplomas, 35% 
          had dropped out at least once during the five years, and 20% had 
          transferred to other schools and their outcomes were unknown.  
          Among the dropouts, 31% eventually reenrolled in a SBCUSD high 
          school during the five years of the study, and 18.4% of these 
          re-enrollees graduated from a district high school by 2005/06.  
          The report notes that SBCUSD leaders and school principals 
          expressed concern about how the district's average daily 
          attendance (ADA) is affected by dropouts, re-enrollees and by 
          other transitory students.  A district's ADA decreases with 
          declining enrollments and irregular attendance, both of which 
          are adversely affected by dropouts and re-enrollees.  This study 
          includes suggestions for changes in policies and practices from 
          the SBCUSD staff, for example, targeting additional financial 
          resources for academic, behavioral, and social interventions to 
          support re-enrollees when they return to school.

          The author states, "Students who drop out of high school do so 
          at great cost to themselves and to the community.  A number of 
          states have developed funding models to encourage schools to 
          recover students who have dropped out.  California has worked to 








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          prevent dropouts, but has not made significant efforts to 
          reengage actual dropouts in high school.  By incentivizing 
          dropout recovery, California can provide schools and districts 
          the resources to recover out-of-school youth and bring 
          substantial growth to the state's economy and the students' 
          communities. AB 2617 would take an important first step to 
          measure the effective of California's dropout recovery programs, 
          and bring focus to this underserved community." 

           Additional suggested amendment  :  The findings and declarations 
          in the bill suggest that incentives for dropout recovery 
          programs would increase the number of pupils served.  Whereas 
          the recovery of high school dropouts is indeed a valuable goal 
          to pursue, equally important is to retain and prevent dropouts.  
          The language in the findings and declarations should be 
          redrafted to avoid the misinterpretation of wanting to create 
          incentives for programs to increase the number of dropouts and 
          thus increase the number of pupils served by these programs.  
           Staff suggests  the following amendment:  On page 2, lines 29-30, 
          strike out "dropout recovery programs would increase the number 
          of pupils served and" and insert, "the recovery of high school 
          dropouts" 

           Arguments in support  :  School for Integrated Academics & 
          Technologies writes, "By incentivizing dropout recovery, 
          California can provide schools and districts the resources to 
          recover out-of-school youth and bring substantial growth to the 
          state's economy and the students' communities.  AB 2617 would 
          take an important first step to develop the underpinnings of 
          California's dropout recovery programs and bring focus to this 
          underserved community."    

           Related legislation  :  AB 1668 (Carter) requires a pupil who 
          passes the general educational development (GED) test be counted 
          as a transfer for purposes of calculating graduation and dropout 
          rates if the pupil is enrolled in a dropout recovery high 
          school.  AB 1668 is pending in this Committee. 

          ACR 134 (Hueso) declares the week of June 4 to June 10, 
          inclusive, 2012, to be Dropout Recovery Week, and would state 
          the Legislature's intent to encourage the support of dropout 
          recovery high schools with creative teaching strategies, 
          alternative assessments, and adequate resources.  ACR 134 is 
          pending in the Rules Committee.  









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           Previous legislation  :  AB 180 (Carter), Chapter 669, Statutes of 
          2011 requires the SPI and the SBE to allow DRHS, numbering no 
          more than 10, to report the results of an individual pupil 
          growth model, that the SPI certifies as meeting specified 
          criteria, in lieu of other indicators under the state's 
          alternative accountability system.

          ACR 57 (Carter), Resolution Chapter 32, Statutes of 2011, 
          declares the week of June 6 through June 12, 2011, to be Dropout 
          Recovery Week and would state the Legislature's intent to 
          encourage the support of dropout recovery high schools with 
          creative teaching strategies, alternative assessments, and 
          adequate resources.

          SB 473 (Price) of 2011 requires the Annual Report on Dropouts in 
          California to include information on the number of schools in 
          the state that offer dropout prevention or dropout recovery 
          programs, as specified.  SB 473 was held in the Assembly 
          Appropriations Committee.  

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          San Francisco Unified School District 
          School for Integrated Academics & Technologies 
          United Teachers Los Angeles 
          YouthBuild Charter School of California 

           Opposition 
           
          None on file. 
           
          Analysis Prepared by  :    Marisol Avi�a / ED. / (916) 319-2087