BILL ANALYSIS �
SB 779
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Date of Hearing: July 13, 2011
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Felipe Fuentes, Chair
SB 779 (Lieu) - As Amended: June 30, 2011
Policy Committee: Education Vote:7-3
Urgency: No State Mandated Local Program:
No Reimbursable: No
SUMMARY
This bill authorizes a school district, as part of providing
economics instruction in grades 7-12, to include instruction
related to the understanding of personal finances, including,
but not limited to, budget savings, credit, and identify theft.
Specifically, this bill:
Requires the State Department of Education (SDE) to consider
developing a personal finances curriculum in the next cycle in
which the history/social science curriculum framework is
adopted.
FISCAL EFFECT
1)In order for this bill to be implemented curriculum framework
adoptions must resume, which requires at least $150,000 for
SDE to conduct framework development, as specified.
2)GF administrative cost pressure to SDE, likely between $75,000
and $150,000 to develop a personal finances curriculum in the
next cycle of the history/social science curriculum framework.
Actual costs will depend on the depth and breadth of the
curriculum and the number of grades to which it will apply.
COMMENTS
1)Purpose . Current law requires pupils in grades 7-12 to
receive social science instruction, including economics. The
author cites studies that demonstrate the need for financial
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literacy education. For example, The United States National
Financial Literacy Education Commission states: "The recent
economic crisis has highlighted how essential it is that
individuals and families have the information, education, and
tools that they need to make good financial decisions in an
increasingly complex U.S. and global financial system. Indeed,
as we have learned, the financial difficulties of individuals
and families can dramatically affect the financial health of
local communities and regional markets."
The author also states: "A lack of financial knowledge is
especially problematic for the most vulnerable members of our
society. The poor, the elderly, and minority groups can be
victims of fraud and deception, predatory lending, and other
such abuses. Financial education is a crucial weapon in our
arsenal to protect our citizens from these types of attack."
This bill authorizes a school district, as part of providing
economics instruction in grades 7-12, to include instruction
related to the understanding of personal finances, including,
but not limited to, budget savings, credit, and identify
theft. It also requires SDE to consider developing a personal
finances curriculum, as specified.
2)Existing law requires the State Board of Education (SBE) to
adopt statewide academically rigorous content standards in the
core curriculum areas. These content standards are implemented
through the curriculum frameworks, as adopted by SBE. The
adopted instructional materials (IM) must be consistent with
the criteria and standards of quality prescribed in the
adopted curriculum frameworks. The development of curriculum
frameworks is a multi-year process.
3)AB 2 X4 (Evans), Chapter 2, Statutes of 2009 , specified that
local education agencies are not required to purchase IM
through the 2012-13 FY. Consistent with the non-purchasing
requirement, Chapter 2 also suspended the requirement for SBE
to adopt IM or conduct other procedures associated with
adoption (i.e., adopting curriculum frameworks) until the
2013-14 school year. SB 70 (Committee on Budget and Fiscal
Review), Chapter 7, Statutes of 2011, extended this suspension
until the 2014-15 FY.
Due to the implementation of Chapter 2, Governor
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Schwarzenegger vetoed $700,000 (GF) funding in 2009 for the
Curriculum Development and Supplemental Materials Commission,
which develops the frameworks.
4)Related legislation . SB 300 (Hancock), pending in this
committee, requires the SBE to adopt a history/social science
curriculum framework before June 30, 2012, as specified.
Analysis Prepared by : Kimberly Rodriguez / APPR. / (916)
319-2081