BILL ANALYSIS                                                                                                                                                                                                    �




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair

                                          SB 740 (Hancock)
          
          Hearing Date: 05/26/2011        Amended: 05/10/2011
          Consultant: Jacqueline Wong-HernandezPolicy Vote: Education 6-3
          _________________________________________________________________
          ____
          BILL SUMMARY: SB 740 excludes pupils in grade 2 from the 
          standards-based achievement test requirement, beginning July 1, 
          2012. This bill would require the Department of Education (CDE) 
          by July 1, 2014, to develop at least 3 assessments in language 
          arts and mathematics for pupils in grade 2 for diagnostic use by 
          classroom teachers. The bill would authorize the CDE to select 
          those assessments instead of developing them if it determines 
          that suitable diagnostic assessments exist. The bill would 
          require these provisions to be implemented from the savings 
          realized from the elimination of the grade 2 standards-based 
          achievement testing. 
          _________________________________________________________________
          ____
                            Fiscal Impact (in thousands)

           Major Provisions                  2011-12               2012-13   
           2013-14                         Fund
           
          Eliminate 2nd grade test                         <$1,700-$2,000> 
             <$1,700 - $2,000>    General

          Diagnostic assessments     Potentially significant costs 
          beginning in 2013-14      General
          _________________________________________________________________
          ____

          STAFF COMMENTS: SUSPENSE FILE. AS PROPOSED TO BE AMENDED.
          
          Federal law requires standards based testing of pupils, as 
          specified, beginning in the 3rd grade. States may test students 
          at earlier grade levels, and California opts to begin 
          standardized testing in the 2nd grade. The existing 2nd  grade 
          English Language Arts California Standards Test (CST) includes 
          71 multiple choice questions, as does Mathematics CST also 
          includes 71 multiple choice questions. 2nd grade tests are 
          available in English and in Spanish. Students who are instructed 
          in Spanish or who have been in the United States for fewer than 








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          12 months may take a standards based test in Spanish in addition 
          to the CST. Special Education students in 2nd grade with serious 
          disabilities take the California Alternative Performance 
          Assessment. 

          This bill would exclude all pupils in 2nd grade from 
          standardized testing, and eliminate 2nd grade CSTs and other 
          achievement tests. The Department of Education (CDE) estimates 
          that the cost savings from eliminating 2nd grade testing would 
          be approximately $5.3 million for each 36-month testing cycle; 
          some of these costs are related to annual apportionments, and 
          others are test contract costs. The costs reflected above have 
          been annualized for display. 

          This bill also requires CDE develop at least three assessments 
          in language arts and mathematics that are appropriate for pupils 
          in the 2nd grade for diagnostic use by classroom teachers, by 
          July 1, 2014, and to make those assessments available to school 
          districts. This bill provides that if the CDE determines that 
          suitable diagnostic assessments exist, it may select those 
          assessments instead of developing its own assessments. 


          The CDE will incur significant costs to develop or select 
          diagnostic tests, and make them available to all districts that 
          provide 2nd grade instruction. The costs are unknown, and will 
          be affected by whether the tests are developed or selected from 
          existing assessments, and the form in which the tests are made 
          available to school districts. 

          This bill specifies that funding for diagnostic tests will be 
          from the savings realized by eliminating 2nd grade 
          standards-based achievement testing. While the savings 
          identified is likely to exceed the cost of diagnostic tests, the 
          savings will happen independent of the requirement to spend 
          money in another area. Developing and making available 
          diagnostic tests will be a new cost to the state in 2013-14 (and 
          ongoing), independent of savings achieved in 2012-13 by 
          eliminating 2nd grade standards based testing.



          Staff notes that it is common practice in California schools to 
          use CST scores, in conjunction with the California English 








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          Language Development Test (CELDT) as tools for determining the 
          reclassification of pupils who are English learners. While 
          schools may use other evaluations of performance in basic 
          skills, determined at the local level, there may be transition 
          costs for schools to determine a new process for English learner 
          reclassification at the 2nd grade level. 

            

          Amend per author to require the CDE to select existing tests to 
          use as 2nd grade diagnostic tests, rather than developing tests 
          for this purpose.