BILL ANALYSIS                                                                                                                                                                                                    �



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          SENATE THIRD READING
          SB 547 (Steinberg)
          As Amended  August 26, 2011
          Majority vote 

           SENATE VOTE  :25-14  
           
           EDUCATION           7-3         APPROPRIATIONS      12-5        
           
           ----------------------------------------------------------------- 
          |Ayes:|Brownley, Ammiano,        |Ayes:|Fuentes, Blumenfield,     |
          |     |Buchanan, Butler, Carter, |     |Bradford, Charles         |
          |     |Eng, Williams             |     |Calderon, Campos, Davis,  |
          |     |                          |     |Gatto, Hall, Hill, Lara,  |
          |     |                          |     |Mitchell, Solorio         |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |Nays:|Norby, Beth Gaines,       |Nays:|Harkey, Donnelly,         |
          |     |Wagner                    |     |Nielsen, Norby, Wagner    |
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           SUMMARY  :   Replaces the state's current measure of school and 
          school district academic performance, the Academic Performance 
          Index (API), with the Education Quality Index (EQI), an index of 
          school and school district quality that is comprised of multiple 
          indices, each reflecting a different dimension of school or 
          district performance.  Specifically,  this bill  :   

          1)Makes findings and declarations as to the challenges faced by 
            and the needs of California's pupils, and regarding the 
            state's current accountability system and the opportunity 
            presented to transition to a new approach; also, states 
            Legislative intent that the API evolve to encompass other 
            valuable metrics in addition to test scores, graduation rates 
            and dropout rates, and that a more comprehensive set of 
            expectations and aspirations for California's public schools 
            be reflected in the state's school accountability system.

          2)Makes current law implementing the API inoperative on July 1, 
            2014, and repealed as of January 1, 2015.

          3)Requires the Superintendent of Public Instruction (SPI), in 
            consultation with the Public School Accountability Act (PSAA) 
            advisory committee, to develop the EQI system for schools and 








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            school districts, and requires the State Board of Education 
            (SBE) to adopt the EQI no later than August 1, 2014, after 
            providing for public input; also, requires, commencing with 
            the 2014-15 school year, all schools and school districts to 
            be evaluated using the EQI.

          4)Requires the PSAA advisory committee to: 

             a)   Seek input on its work on the EQI through subcommittees 
               or other methods from persons with expertise in various 
               specified educational issues and programs; and,

             b)   Hold public meetings subject to the Bagley-Keene Open 
               Meeting Act at least once per quarter from January 1, 2012, 
               through July 1, 2016.

          5)States legislative intent that the EQI provide a comprehensive 
            and transparent measurement of pupil performance and school 
            quality to better inform parents, pupils, teachers, school 
            administrators, policymakers, and the public about public 
            school performance using multiple indicators of pupil, school, 
            and school district quality and performance.

          6)Requires the EQI to be to be developed for each school type 
            and school district, and to include, but not be limited to, 
            the following:

             a)   For schools and districts maintaining any of grades 9 
               through 12, the State Assessment Index (SAI), Graduation 
               Rate Index (GRI), College Preparedness Index (CPI), and 
               Career Readiness Index (CRI);

             b)   For schools and districts maintaining grade 8, the SAI 
               and GRI, and a valid and reliable measure or measures of 
               pupil access to and performance in college and career 
               preparatory and exploratory experiences is to be 
               considered, if maintained in that school; and, 

             c)   For schools and districts maintaining kindergarten or 
               grades 1 to 7, inclusive, the SAI.

          7)Requires the SPI, in consultation with the PSAA advisory 
            committee, to develop and recommend to the SBE for adoption:









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             a)   The component indices listed in 6) a) above for school 
               districts and for each school type, including alternative 
               schools, as specified;

             b)   An alternative accountability system;

             c)   The relative weights of the component indices, and a 
               total value for the EQI, consistent with the following 
               requirements:

               i)     For schools and school districts maintaining 
                 kindergarten and any of grades 1 through 8, the SAI is 
                 required to comprise no less than 40% of the value of the 
                 EQI.

               ii)    For schools and school districts maintaining any of 
                 grades 9 through 12, the SAI is required to comprise no 
                 more than 40% of the value of the EQI.

               iii)   Within the EQI, the weights assigned to the CPI and 
                 CRI are required to be equal.

             d)   No less than one additional component index for schools 
               maintaining kindergarten or any of grades 1 through 7;

             e)   An annual school and district score or other evaluation 
               system for the EQI;

             f)   An annual growth target for the SAI and the GRI, 
               including targets for numerically significant pupil 
               subgroups, as defined;

             g)   A method for measuring English learner progress;

             h)   Whether a growth target or an annual measurement of the 
               narrowing of the achievement gap should be established for 
               each additional component index, including targets for 
               numerically significant pupil subgroups;
             i)   The relevant indices and indicators necessary to meet 
               and comply with federal law; and, 

             j)   Any additional data elements, and connections between 
               existing data systems, that are identified as needed, after 
               consulting with the state's three higher education 








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               segments, the Employment Development Department, and other 
               appropriate entities.

          8)Requires the SPI to annually release results and supporting 
            information on the EQI and its component indices, and 
            authorizes the SPI to develop and recommend to the SBE for 
            adoption, any regulations necessary to implement these 
            provisions.

          9)Requires the SPI, in consultation with the PSAA advisory 
            committee and when additional valid and reliable data become 
            available, to develop and recommend to the SBE additional 
            indices, as specified, and to take into account the 
            appropriateness of particular indices and indicators to grade 
            spans and school types; also, prohibits any additional 
            component index from being included in the EQI until one full 
            school year after its adoption by the SBE.

          10)Requires the SPI, commencing no later than July 1, 2013, to 
            annually report to the Governor and the Legislature on the 
            development, implementation and impacts of the EQI and its 
            component indices; also, requires the SPI, in consultation 
            with the PSAA advisory committee and subject to an 
            appropriation for this purpose, to contract for an independent 
            evaluation of the EQI, and to submit the evaluation and any 
            recommendations no later than July 1, 2018, to the Governor 
            and the Legislature.

          11)Specifies that the SPI not be limited in the development of 
            the EQI by the scope of the California Longitudinal Pupil 
            Achievement Data System (CALPADS) or any other relevant data 
            system; also, requires the SPI to report to the Governor and 
            Legislature by July 1, 2013, on any additional data required 
            to be reported by local educational agencies for purposes of 
            the EQI.

          12)Requires the SAI to be comprised of pupil scores from the 
            state's current standards-based achievement tests or any valid 
            and reliable successor assessments adopted by the SBE, and the 
            high school exit examination; also, specifies inclusion and 
            exclusion rules, disaggregation requirements, and reporting 
            requirements and authorities.

          13)Requires the GRI to be comprised, as appropriate to the grade 








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            configuration of the school or school district, of:

             a)   Four-year, five-year, and six-year graduation rates, 
               that are appropriate to school types and where schools and 
               districts are required to be granted full value for 
               graduating, in five or more years, pupils with 
               disabilities; and,

             b)   Appropriate rates at which pupils successfully promote 
               from one grade to the next.

          14)Requires the CPI to:

             a)   Be comprised of multiple valid, reliable, and stable 
               measures of pupil preparedness for postsecondary education 
               that may include, but is not limited to district, school 
               and subgroup rates reflecting completion of local and state 
               assessments, course enrollment and completion, academic and 
               extracurricular programs, and advanced or additional 
               learning opportunities, for pupils in any of grades 9 to 
               12; and, 

             b)   Include an adopted method for providing additional 
               weight in the index for schools and school districts that 
               demonstrate that pupil subgroups, including economically 
               disadvantaged pupils, pupils with disabilities, and English 
               learners, are proportionately represented among pupils who 
               are prepared and eligible for enrollment in four-year 
               colleges and universities.

          15)Requires the CRI to be comprised of multiple valid, reliable, 
            and stable measures of pupil readiness for career, including, 
            but not limited to course enrollment and completion of career 
            pathway and standards-aligned career technical education 
            programs, industry-validated courses and certifications, 
            intersegmental articulation with institutions of higher 
            education, and local and state assessments, and portfolio 
            assessments for pupils in any of grades 9 to 12.

           EXISTING LAW  requires:

          1)The SPI to develop the API to measure the performance of 
            schools, and to include a variety of indicators in that 
            measure, including, but not limited to, achievement test 








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            results, attendance rates, and graduation rates.  

          2)School districts to offer to all otherwise qualified pupils in 
            7th through 12th grades a course of study fulfilling the 
            requirements and prerequisites for admission to California's 
            public institutions of postsecondary education, and that 
            provides an opportunity to attain entry-level employment 
            skills in business or industry upon graduation from high 
            school.

           FISCAL EFFECT  :   According to the Assembly Appropriations 
          Committee, annual General Fund (GF) administrative costs to the 
          California Department of Education (CDE) 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.  Also GF/Proposition 98 (98) costs, likely between 
          $750,000 and $1 million, to CDE to hire an independent 
          contractor to complete the reporting requirements of this bill.  
          The evaluation is contingent upon an appropriation for this 
          purpose.  In addition, potential GF/98 cost pressure, in the low 
          millions, to school districts to collect data required for the 
          EQI.  The bill requires the SPI, to report to the Legislature 
          any additional data elements added to the EQI.

           COMMENTS  :   The SPI established, pursuant to SB 1 X1 (Alpert), 
          Chapter 3, Statutes of 1999-2000 First Extraordinary Session, 
          the PSAA advisory committee to advise the SPI and the SBE on all 
          appropriate matters relative to the creation of the API.  SB 1 
          X1 also requires the SPI, with the approval of the SBE, to 
          develop the API to measure the performance of schools for 
          reporting and accountability purposes, and to include a variety 
          of indicators in that measure, including, but not limited to, 
          achievement test results, attendance rates, and graduation 
          rates.  Currently only achievement test results are incorporated 
          into the API, and the API is configured to produce scores 
          measuring a school's static performance at each grade level, in 
          each content area, in each year, at one point in time.

          Currently, California's public school accountability system has 
          no mechanism for measuring success in terms of outcomes or 
          opportunities beyond performance on core academic assessments, 








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          including civic and community responsibility, career or college 
          readiness and acquisition of life skills; the current 
          accountability system also has no way of identifying or 
          rewarding those schools that educate the whole pupil in any way 
          other than is measured by testing skills and knowledge in 
          mathematics, language arts, history and science.  The indices 
          proposed in this bill are intended to replace and augment the 
          information composited in the current API, thus including 
          information on student opportunities and student success so as 
          to provide broader and more comprehensive information on school 
          performance than is available from the API focus on achievement 
          test scores alone.  The proposed EQI would aggregate information 
          from at least four sub-indices, related to different dimensions 
          of student performance and opportunity, including academic 
          performance, advancement and graduation rates, preparation for 
          career or post-secondary education, and enhanced student 
          learning opportunities.  

          This comprehensive expansion of the accountability measures that 
          are used to provide public information on and make state-level 
          accountability judgments about the state's K-12 public schools, 
          provides the clear benefit of basing that information and 
          judgments about schools on a broader base of multiple measures 
          of the characteristics that define school success or failure.  
          However, this proposal is not without its problems, including 
          lack of data, technical issues with the creation and 
          interpretation of multi-dimensional indices, lack of 
          comparability and continuity from the API to the EQI, 
          uncertainty concerning the design of the indices, and the 
          extensive code clean-up that would necessarily follow.


           Analysis Prepared by  :    Gerald Shelton / ED. / (916) 319-2087 


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