BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 754
                                                                  Page  1

          Date of Hearing:   August 8, 2012

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                   SB 754 (Padilla) - As Amended:  August 6, 2012 

          Policy Committee:                             Education Vote:9-0

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

           SUMMARY  

          This bill requires a school district, as a condition of 
          receiving Economic Impact Aid (EIA) funding, to post online and 
          in an easily accessible location, the following data related to 
          EIA funding: 

          1)The amount of EIA allocated to the school district in that 
            fiscal year (FY). 
          2)The amount of EIA used by the district for administrative 
            costs in that FY.  
          3)The amount of EIA expended for limited English proficient 
            pupils (EL pupils) and state compensatory education 
            (educationally disadvantaged pupils) in that FY and the prior 
            FY by the school district and each school within the district. 

          4)The amount of unexpended EIA and an explanation for why these 
            funds have not been expended.  

           FISCAL EFFECT  

          1)Annual GF/98 costs, likely between $200,000 and $400,000, to 
            local education agencies (LEAs) to meet the requirements of 
            this bill.  There were 1,015 LEAs that received EIA funding in 
            the 2011-12 FY.  Actual costs will depend on the number of 
            schools within each district that receive EIA funding.  

          2)The 2012 Budget Act allocates $944.45 million GF/98 for the 
            EIA program.  Charter schools also receive EIA funding, 
            totaling $105.8 million GF/98.  The EIA program is one of only 
            six categorical programs that are currently not provided with 
            flexibility or incur the 19.8% reduction imposed on the 
            majority of categorical programs.     








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           COMMENTS  

           1)Rationale  .  According to the author, "English Learners have 
            the lowest graduation rate of any student demographic. 31% 
            percent of English Learners who make it to ninth grade drop 
            out before graduation. While some English Learners receive 
            their high school diploma, only 13% of English Learners will 
            earn a bachelor's degree.  Currently, districts do not report 
            school-level funding figures, instead they use district 
            averages. While many districts do post their budgets online, 
            they only list funds in broad categories. The public does not 
            have access to specific, school level expenditures. Parents 
            and communities are largely unaware of how schools spend 
            English Learner funds because school districts are not 
            required to report or post them."      

           2)The EIA program  provides supplemental funding to school 
            districts to provide additional services to English language 
            learner (ELL) pupils and for educationally disadvantaged 
            pupils (as identified by federal Title I counts - poor, needy 
            pupils).  Specifically, this funding is required to be used to 
            help ELL pupils achieve English proficiency and educationally 
            disadvantaged students to achieve academic proficiency.  For 
            example, districts may purchase supplemental instructional 
            materials or hire paraprofessionals or supplemental resource 
            teachers.  This funding is required to supplement an eligible 
            pupil's education, not supplant existing funding at a 
            schoolsite.  

            School districts receive EIA funding based on the number of 
            ELL and economically disadvantaged pupils.  Likewise, 
            districts that have a high concentration of these pupils (more 
            than 50%) receive additional funding.  According to the State 
            Department of Education (SDE) data, 1,015 school districts and 
            county offices of education (COEs) received a total of $944.45 
            million GF/98 in EIA funding in the 2011-12 FY.  SDE data 
            reports districts and COEs received an average of $337.54 per 
            EIA eligible pupil for a total of 2.8 million pupils.  Of the 
            $944.45 million, approximately 48% of funding is allocated 
            based on the number of ELL pupils, 44% of funding is allocated 
            based on the number of economically disadvantaged pupils, and 
            approximately 8% of funding is allocated based on the 
            concentration factor (districts with more than 50% of EIA 
            eligible pupils).  








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