BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 547
                                                                  Page  1

          Date of Hearing:   August 17, 2011

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                  SB 547 (Steinberg) - As Amended:  August 15, 2011 

          Policy Committee:                             Education Vote:7-3

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

           SUMMARY  

          This bill sunsets the Academic Performance Index (API), the 
          state's accountability system for schools and districts, on July 
          1, 2014 and replaces it with the Education Quality Index (EQI), 
          which is comprised of multiple newly established indices to 
          reflect the overall performance of the state's public schools, 
          districts, and pupils.  Further requires the State Board of 
          Education (SBE) to adopt the EQI not later than August 1, 2014.  


           FISCAL EFFECT  

          1)Annual, GF administrative costs to SDE of at least $470,000 to 
            implement the requirements of this bill.  These costs are 
            associated with staff for the development and implementation 
            of the EQI.  A portion of this funding, approximately $250,000 
            GF, will likely only be required for a limited time period 
            because much of the work is associated with the development of 
            the indices.  

          2)GF/98 costs, likely between $750,000 and $1 million, to SDE to 
            hire an independent contractor to complete the reporting 
            requirements of this bill.  

          3)Potential GF/98 cost pressure, of approximately $19 million, 
            to school districts to collect data required by the EQI.  The 
            bill requires the SPI, in consultation with the PSAA, to 
            recommend any additional data elements that need to be 
            collected from districts to implement the EQI.  This measure 
            provides discretion to the SPI, with approval by the SBE, to 
            include any new data elements.  









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           SUMMARY CONTINUED

           Specifically, this bill:

          1)Requires the Superintendent of Public Instruction (SPI), in 
            consultation with the Public Schools Accountability Act (PSAA) 
            advisory committee, to develop the EQI for schools and 
            districts.  Further requires all schools and districts, 
            commencing with the 2014-15 school year and each school year 
            thereafter, to be evaluated using the EQI value. 

          2)Requires the EQI, for school districts maintaining any of 
            grades 9-12 to include, at a minimum, the following 
            components: (a) The State Assessment Index (SAI), (b) the 
            Graduation Rate Index (GRI), (c) The College Preparedness 
            Index (CPI), and the Career Readiness Index (CRI).  Defines 
            each component within the EQI as follows: 

             a)   The SAI is required to be comprised of pupil scores from 
               the standards-based achievement tests, or any successor 
               assessments adopted by the SBE, and the high school exit 
               examination.  Further requires the SAI to include test 
               scores of pupils enrolled in alternative education 
               programs, as specified.  
             b)   The GRI is required to include one or both of the 
               following: (i) Four, five, and six year graduation rates 
               and rates at which pupils successfully promote from one 
               grade to the next in middle and high school, as specified.  
               Further requires pupils enrolled in alternative education 
               programs to be included in this data under specified 
               parameters.  
             c)   The CPI is required to consist of multiple, and stable 
               measures of pupil preparedness for postsecondary education. 
                Authorizes the SPI to include local and state assessments, 
               course enrollment and completion; academic and 
               extracurricular programs; and advanced or additional 
               learning opportunities as indicators for pupils in grades 
               9-12.  
             d)   The CRI is required to consist of multiple, and stable 
               measures of pupil readiness for career.  Authorizes the SPI 
               to include course enrollment and completion career 
               technical education (CTE) programs; industry validated 
               courses and certifications; intersegmental articulation 
               with institutions of higher education; and local and state 
               assessments as indicators for pupils in grades 9-12.   








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          3)Requires the EQI, for school districts maintaining grade 8 to 
            include, at a minimum, the SAI and the GRI, as specified.  
            Further requires the EQI, for school districts maintaining any 
            of grades K-7 to include, at a minimum, the SAI and requires 
            the SAI to comprise 40% of the total value of the EQI for 
            grades K-12.  

          4)Requires the SPI, in consultation with the PSAA advisory 
            committee, to develop and recommend to the SBE the following: 

             a)   Adoption of an alternative accountability system for 
               juvenile court, community day, and nonpublic schools, as 
               specified.
             b)   Weight of the component indices that comprise a school 
               and district EQI.  
             c)   Annual improvement or growth targets for the SAI, the 
               GRI, including targets for subgroups (i.e., English 
               language learners (ELLs), disadvantaged pupils, and pupils 
               with disabilities).
             d)   Whether an additional weight is necessary to provide 
               recognition to schools and districts that can demonstrate 
               that ELLs are making progress in learning English, as 
               specified.  

          5)Requires the SPI, when additional data elements are available, 
            to develop and recommend additional indices to reflect the 
            important elements of school quality, including, but not 
            limited to, creativity and innovation; pupil engagement in 
            school and group or individual growth in academic performance. 
             

          6)Requires the SPI, no later than July 1, 2015 and annually 
            thereafter, to report to the governor and the Legislature on 
            specified information, including the timeline for development 
            and implementation of additional indices; data elements 
            planned for inclusion in each additional indices; and timeline 
            for development/implementation of these indices, as specified. 
             

          7)Requires the SPI, in consultation with the PSAA advisory 
            committee, no later than July 1, 2018, to report to the 
            governor and the Legislature on the effectiveness and 
            reliability of the EQI and any statutory changes necessary for 
            implementation.  Authorizes the SPI to develop regulations to 








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            implement the EQI.    

           COMMENTS  

           1)Background  .  SB 1X (Alpert), Chapter 3, Statutes of 1999, 
            established the PSAA, which required the development of the 
            API. The API is used to measure performance of schools and 
            districts over time. An API score is calculated based on 
            students' performance on the following standardized tests: the 
            California Standards Tests (i.e., standards-based assessments) 
            in English language arts, mathematics, and history-social 
            science, and science (where applicable) and the California 
            High School Exit Exam. 

            Statute also requires the SPI to establish the PSAA advisory 
            committee to advise the SPI and the SBE on all appropriate 
            matters related to the creation of the API.  Members of this 
            committee are required to serve terms not to exceed two years 
            and without compensation.  

            SB 1 X5 (Steinberg), Statutes of 2010, required the SPI and 
            the SBE, in consultation with the PSAA and by January 1, 2011, 
            to make recommendations to the governor and Legislature on 
            methods to incorporate a measure of the degree to which pupils 
            graduate from high school with the skills and knowledge 
            necessary to attain entry-level employment in business and 
            industry and/or postsecondary education into the API, as 
            specified.  It is unclear whether this information has been 
            provided to the governor and Legislature.  

            This bill requires the PSAA advisory committee to have a 
            significant role in the development and implementation of the 
            EQI, including the components of each index within the EQI, as 
            specified.  

           2)Purpose  .  In May 2010, Superintendent of Public Instruction 
            Jack O'Connell released The Multiple Pathways to Student 
            Success: Envisioning the New California High School report, 
            which details the need for high schools to offer an 
            instructional "approach that effectively integrate both 
            academic and career technical content, problem-based 
            instructional strategies, work-based learning opportunities, 
            and support services �that] effectively prepare all students 
            to pursue multiple options beyond high school graduation." In 
            order to promote this transformation of high school 








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            curriculum, the report recommends "expanding the number of 
            measures within the API to include rates of completion of 
            college entrance requirements, career technical education 
            program completion and certification, school graduation rates, 
            and dropout recovery rates." 

            According to the author, "The API has performed an important 
            role, but has been limited by its sole reliance on 
            standardized test scores as indicators of school performance. 
            Dropout and graduation rates are required by statute to be 
            included, but are not yet part of the API.  It is time for the 
            API to evolve to what it was originally intended to be: an 
            index that encompasses other valuable indicators in addition 
            to student test scores."

            This bill, sponsored by the SPI, sunsets the API, the state's 
            accountability system for schools and districts, on July 1, 
            2014 and replaces it with EQI, which is comprised of multiple 
            newly established indices to reflect the overall performance 
            of the state's public schools, districts, and pupils.

           3)California becomes a governing state in national assessment 
            consortium  .  In June 2011, California joined the SMARTER 
            Balanced Assessment Consortium as a governing state.  A total 
            of 30 states have signed up to become members of this 
            consortium. Of those, California is one of 18 governing 
            states, which allows decision-making participation. The 
            remaining 12 are advisory states.

            As part of the federal Race to the Top grant program, the 
            federal government set-aside funding to establish assessment 
            consortiums to design national assessments aligned to the 
            Common Core ELA and mathematic standards.  The SMARTER 
            Balanced Consortium received $176 million in federal funds to 
            design assessments in ELA and mathematics in grades 3 through 
            8 and grade 11. The new assessments are expected to be 
            available for the 2014-15 school years.


            The goal of the consortium is to prepare students for college 
            and career by improving teaching and learning in schools 
            through the development of assessments of the Common Core 
            State Standards in ELA and mathematics that are valid and 
            reliable.  It is expected that the assessments developed by 
            SMARTER Balanced will replace the existing STAR program.  








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            Since the STAR program is the current basis for the API, it is 
            likely that the tests developed pursuant to this consortium 
            will be part of any successor accountability system.  The 
            exact role the consortium assessments will have in any 
            accountability system is unclear and subject to review by the 
            Legislature, the governor, and other interested parties.  


           4)Similar legislation  .  AB 224 (Bonilla), pending in the Senate 
            Appropriations Committee, modifies the indicators that 
            contribute to the API and requires the SPI, beginning in the 
            2012-13 FY, to create a new API for grades 8-12. 


           5)Previous legislation  . AB 400 (Nunez), similar to this 
            measure, was vetoed by Governor Schwarzenegger in October 2007 
            with the following message: 


            "While I agree with the author that what the state measures in 
            its accountability system sends a powerful message to schools 
            and to the public about the outcomes we value, this bill still 
            needs refinement. I respect the intention to provide schools 
            the incentive to expand access to A-G college admission 
            required courses, and expand course offering in Career 
            Technical Education program. I am open to opportunities to 
            accomplish that goal. However, I must maintain that the API 
            should continue to be based on objective, reliable, valid and 
            consistent statistical measurements." 



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