BILL ANALYSIS                                                                                                                                                                                                    �






                         SENATE COMMITTEE ON EDUCATION
                             Alan Lowenthal, Chair
                           2011-2012 Regular Session
                                        

          BILL NO:       SB 634
          AUTHOR:        Runner
          AMENDED:       April 7, 2011
          FISCAL COMM:   Yes            HEARING DATE:  April 27, 2011
          URGENCY:       No             CONSULTANT: Beth Graybill

           SUBJECT  :  Kindergarten:  Transitional kindergarten.
          
           SUMMARY  

          This bill prohibits a school district from initiating a 
          transitional kindergarten program unless the Department of 
          Finance has certified that sufficient funds exist to 
          initiate transitional kindergarten programs in all school 
          districts that can enroll eligible children and requires a 
          district to have a positive financial certification prior 
          to initiating a transitional kindergarten program.

           BACKGROUND  

          Existing law, the Kindergarten Readiness Act of 2010, 
          requires a child to be admitted to kindergarten at the 
          beginning of a school year, or at a later time in the same 
          year, if the child will have his or her fifth birthday on 
          or before one of the following dates:  

                  (1)       December 2, of the 2011-12 school year.  
                  (2)       November 1, of the 2012-13 school year.  
                  (3)       October 1, of the 2013-14 school year.  
                  (4)       September 1, of the 2014-15 school year.  


          To serve pupils displaced by the change in kindergarten 
          admission cutoff dates, existing law provides a 
          transitional kindergarten program as the first year of a 
          two-year kindergarten program that uses a modified 
          kindergarten curriculum that is age and developmentally 
          appropriate and requires school districts and charter 
          schools, as a condition of receipt of apportionment for the 
          program, to admit a child to the program:  





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                  (1)       In the 2012-13 school year, if the child 
                    will have his or her fifth birthday between 
                    November 2 and December 2.  

                  (2)       In the 2013-14 school year, if the child 
                    will have his or her fifth birthday between 
                    October 2 and December 2.  

                  (3)       In the 2014-15 school year, and each 
                    school year thereafter, a child who will have his 
                    or fifth birthday between September 2 and 
                    December 2.  (EC � 48000)  

          Existing law does not require a pupil to enroll in 
          kindergarten but does subject each person between the ages 
          of 6 and 18 years of age to compulsory full-time education, 
          unless exempted pursuant to prescribed provisions of law. 
          (EC � 48200)  

          Existing law establishes the State Preschool Program for 
          purposes of providing part-day and full-day programs of 
          educational development for three-and four-year old 
          children.  (EC � 8235)  

          Existing law requires the governing board of a school 
          district to certify on a biannual basis, whether or not, 
          based on current projections, the district will be able to 
          meet its financial obligation for the remainder of the 
          fiscal year.  The certification must be in one of the 
          following categories:  

                  a)        Positive - assigned to a school district 
                    that, based on current projections, will meet its 
                    financial obligations for the current fiscal year 
                    and subsequent two fiscal years.  

                  b)        Qualified - assigned to a school district 
                    that, based on current projections, may not meet 
                    its financial obligations for the current year or 
                    two subsequent fiscal years.  

                  c)        Negative - assigned to a school district 
                    that, based on current projections, will be 
                    unable to meet its financial obligations for the 
                    current year or the subsequent fiscal year.  (EC 
                    � 42131)  




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           ANALYSIS
           
           This bill  :

             1)   Prohibits a school district from initiating a 
               Transitional Kindergarten (TK) program, unless the 
               Department of Finance (DOF) certifies that sufficient 
               funds exist to initiate transitional kindergarten 
               programs in all school districts that can enroll 
               eligible children, including children of all 
               socioeconomic statuses, English learners, and 
               individuals with exceptional needs, as specified, 
               without removing funds from existing state programs or 
               services.  

             2)   Prohibits a school district that has a qualified or 
               negative financial certification from initiating a 
               transitional kindergarten.  

           STAFF COMMENTS  

           1)   Background  .  In the 2012-13 school year, children will 
               need to be 5 years old by November 1 in order to be 
               eligible to enroll in kindergarten.  The Kindergarten 
               Readiness Act of 2010 (SB 1381, Simitian, Chapter 705, 
               2010), phases in the admission cutoff date in each of 
               the two subsequent school years and will remain at 
               September 1 beginning in the 2014-15 school year.  The 
               purpose of this legislation was to ensure that 
               children are developmentally ready to handle the 
               academic demands of today's kindergarten when they 
               begin school.  The bill also created a Transitional 
               Kindergarten (TK) program to enable children displaced 
               by the new admission dates (children with birthdays 
               between the admission date and December 2) to enroll 
               in a two-year kindergarten, where they would receive a 
               modified kindergarten curriculum in the first year and 
               the regular kindergarten curriculum in the second 
               year.  As enacted, SB 1381 allows school districts to 
               claim apportionment for pupils in a TK program.  

          The Legislative Analyst has provided a list of alternative 
               actions to balance the 2011-12 state budget if the 
               Legislature needs to address an estimated $4.8 billion 
               in Proposition 98 reductions for the coming year.  In 




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               presenting options that could be coupled with policy 
               changes, the Legislative Analyst noted that the state 
               could modify recent statute to require children to be 
               five years of age prior to enrolling in kindergarten 
               beginning in 2011-12.  The Legislative Analyst Office 
               (LAO) estimates that moving the kindergarten cutoff 
               date to September 1 beginning in the 2011-12 school 
               year would reduce average daily attendance by 
               approximately 135,000 students and would reduce costs 
               statewide by $700 million.  

           2)   Reasonable trigger  ?  This bill would essentially 
               suspend the transitional kindergarten program.  SB 634 
               establishes a statewide "trigger" for implementation 
               of transitional kindergarten programs by requiring the 
               Department of Finance (DOF) to certify that sufficient 
               funds exist to initiate TK programs in all school 
               districts that can enroll eligible children, and 
               establishes a local trigger by prohibiting individual 
               school districts from initiating a TK program unless 
               they have a positive financial certification.  

          While suspension of the TK program would be consistent with 
               the option presented by the LAO, the bill does not 
               specify how "sufficient funds" would be defined.  When 
               Proposition 98 is under Test 1 or Test 2 conditions?  
               When the Proposition 98 maintenance factor has been 
               met and deferrals restored?  When the state determines 
               it can pay K-12 mandate claims?  What happens if there 
               are sufficient funds one year but not the next?  Staff 
               recommends that this be clarified.  

          There are currently 110 school districts with a negative or 
               qualified status, including Oakland, Los Angeles, Elk 
               Grove, and Sacramento City unified school districts.  
               In the last two years, the number of districts with 
               these designations has increased as the state's budget 
               crisis has deepened.  However, since the 
               certifications are based on projections and 
               assumptions that can change depending on what is 
               included in the Governor's Budget, May Revision, and 
               the Budget Act, it is not unusual for a district to go 
               in and out of "qualified" status within the same year 
               or across years.  Could this fluidity make it 
               difficult for districts to identify precisely when a 
               TK program could be implemented and maintained at the 




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               local level?  

           3)   Impact on families and children  .  One of the major 
               issues identified in the policy debate about changing 
               the kindergarten admission dates was the developmental 
               and fiscal impact new cutoff dates could have on 
               families and children.  Some studies suggest that 
               children who are older when they start school enjoy 
               more school success.  A 2004 study by the RAND 
               Corporation noted that entering kindergarten later can 
               significantly boost test scores at entry, especially 
               for children from low socioeconomic backgrounds.  A 
               study by the Society for Research in Child Development 
               (Stipek, 2002) also suggests that the quality of a 
               child's school experience makes a greater contribution 
               to academic achievement than does delaying 
               kindergarten start dates.  Stipek further notes that 
               children from low-income families, who may already be 
               at risk of starting school behind their middle-class 
               peers may be further disadvantaged by delaying the 
               start date if they are developmentally ready to learn 
               and are not in an instructional environment prior to 
               kindergarten.  Finally, the RAND study noted that for 
               families with children with later birthdays, delaying 
               the kindergarten start date can result in extra child 
               care or preschool costs.  Because these costs can be 
               significant and may disproportionately impact 
               low-income families, the RAND study encouraged 
               policymakers to view entrance age policies and 
               childcare policies as a package.  

          In response to these concerns, SB 1381 was amended in the 
               Assembly Education Committee to establish the 
               transitional kindergarten program.  By suspending the 
               TK program, families of children who would have 
               otherwise been eligible to enroll in a TK program 
               could incur another year of childcare costs while 
               their children become old enough to be admitted to 
               kindergarten.  Given the long waiting lists, age 
               restrictions and income caps, the State Preschool 
               Program will not be an option for most displaced 
               children.  However, to minimize the hardship on very 
               low-income families, the state could enable children 
               currently enrolled in a state preschool program who 
               are displaced by the new cutoff dates to remain in the 
               program until they are enrolled in kindergarten.  




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               While this would require changing eligibility 
               requirements in the State Preschool statute, it could 
               help minimize the impact on the neediest families.  
               Another option would be to propose a constitutional 
               amendment that would modify the After School Education 
               and Safety Program Act of 2002, enacted by Proposition 
               49, to enable before and after school programs to 
               provide a transitional kindergarten program.  

           4)   Impact on schools  .  Some school districts already 
               offer kindergarten readiness programs for "young 
               fives" and many districts have begun planning for the 
               implementation of TK programs in their schools.  While 
               there are sound policy arguments for minimizing the 
               impact the new kindergarten admission dates would have 
               on families and children by providing a 
               pre-kindergarten experience, SB 634 raises the 
               question of whether it is sound fiscal policy to 
               implement a new program, however worthy, at a time 
               when the state and schools are facing significant 
               budget constraints.  

          At the same time, delaying the implementation of the TK 
               program could have a negative impact schools.  While 
               the state would realize Proposition 98 savings, 
               individual school districts would lose the revenue 
               limit some special needs children.  Federal law 
               requires school districts to serve three and four-year 
               old children with special needs who have an 
               Individualized Education Program (IEP).  Suspending 
               the TK program could result in schools losing revenue 
               limit and special education funding for those special 
               needs children who must be served and could have been 
               enrolled in a TK program.  While this would presumably 
               be only a few children in a district, this loss of 
               revenue could add to the considerable uncertainty 
               districts may face in 2012.  Should this bill move 
               forward, an option the Legislature could consider 
               would be to hold districts harmless for this small 
               cohort of pupils.  

           5)   Impact on state resources  .  The Legislature debated 
               the costs and merits of the transitional kindergarten 
               program when it passed SB 1381 in 2010.  Although 
               suspending the implementation of TK programs would 
               reduce statewide costs associated with Average Daily 




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               Attendance (ADA) for students enrolled in a TK 
               program, one could argue that the suspension would 
               shift costs to families and already impacted social 
               service programs for child care or preschool services. 
                Given that it is yet unclear whether the Legislature 
               will need to address additional Proposition 98 
               reductions for the 2011-12 fiscal year, does SB 634 
               propose a solution that may not be necessary or should 
               at least be considered in light of other budget 
               solutions that may need to be adopted if the 
               Legislature or the voters reject the Governor's tax 
               extension proposals?  

           6)   Related and prior legislation  .  

          SB 30 (Simitian) makes technical, non-substantive changes 
               to provisions of law relating to a longitudinal 
               evaluation regarding the effects of the change in the 
               entry age for kindergarten and first grade.  This bill 
               is pending before this Committee.

          AB 1967 (Mendoza, 2009) would have changed the kindergarten 
               start date and provided a revenue limit for 
               transitional kindergarten programs.  This measure was 
               held by the Assembly Appropriations Committee.  

          AB 2759 (Jones, Chapter 308, Statutes of 2008) consolidated 
               the State Preschool program and the portion of general 
               child care and development programs that serve three 
               and four-year olds into one preschool program, 
               establishing the California State Preschool Program.  

          AB 1236 (Mullin, 2008) would have established a two-year 
               kindergarten pilot program.  This bill was held by the 
               Assembly Appropriations Committee.  



          AB 683 (Sharon Runner, 2008) proposed to move up the date 
               by three months by which a child must be five years 
               old to enroll in kindergarten and six years old to 
               enroll in first grade.  This bill was held by the 
               Assembly Appropriations Committee.  

          AB 2596 (George Runner, 2006) would have phased in new 
               admission cutoff dates for kindergarten and first 




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               grade.  This bill would have also required savings 
               associated with the delayed start to be allocated to 
               the California Department of Education (CDE) to 
               provide reimbursements for child care and development 
               services for low-income families.  This bill was held 
               by the Assembly Appropriations Committee.  

          AB 1764 (George Runner, 2006) would have changed the age of 
               admission to kindergarten, but required any savings 
               realized by these changes to be appropriated to 
               increase access to preschool programs for at-risk four 
               year olds.  This bill was held by the Assembly 
               Appropriations Committee.  

           SUPPORT 

          None received.

           OPPOSITION

           California Association of School Psychologists
          California Association of Suburban School Districts 
          California Federation of Teachers
          California Preschool
          California Teachers Association
          Preschool California
          Santa Clara County Office of Education
          Washington School