BILL ANALYSIS                                                                                                                                                                                                    �



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          SENATE THIRD READING
          SB 1458 (Steinberg)
          As Amended  August 24, 2012
          Majority vote

           SENATE VOTE  :   24-11
            
           EDUCATION           8-0         APPROPRIATIONS      12-5        
           
           ----------------------------------------------------------------- 
          |Ayes:|Brownley, Ammiano,        |Ayes:|Gatto, Blumenfield,       |
          |     |Buchanan, Butler, Carter, |     |Bradford, Charles         |
          |     |Eng, Grove, Williams      |     |Calderon, Campos, Davis,  |
          |     |                          |     |Fuentes, Hall, Hill,      |
          |     |                          |     |Cedillo, Mitchell,        |
          |     |                          |     |Solorio                   |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |     |                          |Nays:|Harkey, Donnelly,         |
          |     |                          |     |Nielsen, Norby, Wagner    |
           ----------------------------------------------------------------- 

           SUMMARY  :  Makes changes to the composition and use of the 
          Academic Performance Index (API).  Specifically,  this bill  :   

          1)Provides that achievement test results shall constitute no 
            more than 60% of the value of the API for secondary schools 
            commencing with the baseline calculation in 2016.

          2)Provides that achievement test results shall constitute at 
            least 40% of the value of the API for primary and middle 
            schools commencing with the 2014-15 school year.

          3)Authorizes the Superintendent of Public Instruction (SPI), 
            with the approval of the State Board of Education (SBE), to:

             a)   Incorporate the rates at which pupils successfully 
               promote from one grade to the next in middle school and 
               high school and successfully matriculate from middle school 
               to high school into the API;

             b)   Incorporate valid, reliable, and stable measures of 
               pupil preparedness for postsecondary education and careers 
               into the secondary school API; and,









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             c)   Develop and implement a program of school quality review 
               that features locally convened panels to visit schools, 
               observe teachers, interview students, and examine student 
               work, if an appropriation for this purpose is made in the 
               annual Budget Act.

          4)Requires that, when additional elements are selected for the 
            API they not be incorporated into the API until at least one 
            full year after the SBE made the decision.

          5)Requires the SPI to annually provide to local education 
            agencies and the public an understandable explanation of the 
            individual components of the API and their relative values 
            within the API.

          6)Repeals the requirement to use the API to select schools for 
            participation in the Immediate Intervention/Underperforming 
            Schools Program (II/USP) and to rank schools pursuant to the 
            High Achieving/Improving Schools Program (HA/ISP).

          7)Requires the SPI, on or before October 1, 2013, and in 
            consultation with the Public School Accountability Act 
            advisory committee, to:

             a)   Report to the Legislature and recommend to the SBE for 
               adoption a method or methods to increase the emphasis on 
               pupil performance in science and social science in the API; 
               and,

             b)   Report to the Legislature an alternative method or 
               methods, in place of decile rank, for determining 
               eligibility, preferences, or priorities for any statutory 
               program that currently uses decile rank as a determining 
               factor.

          8)Expresses the intent of the Legislature that the state's 
            system of public school accountability be more closely aligned 
            with the public's expectations for public education and the 
            workforce needs of the state's economy and that the state's 
            accountability system evolve beyond its narrow focus on pupil 
            test scores to encompass other valuable information about 
            school performance, as specified.

          9)Finds and declares that the overreliance of the API has been 
            limited by an overreliance on the Standardized Testing and 








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            Reporting Program (STAR) test scores, that the API does not 
            indicate the degree to which a school has prepared its pupils 
            for success in postsecondary education and career, and that 
            the transition to new common core academic content standards 
            and related assessments present an opportunity to reexamine 
            the state system of public school accountability.

           EXISTING LAW  establishes the API, which summarizes a school's or 
          a local educational agency's (LEA's) academic performance and 
          progress on statewide assessments.  The API is a single number 
          ranging from 200 to 1,000 and is required to include a variety 
          of indicators, including results of the Standardized Testing and 
          Reporting Program (STAR) tests, attendance rates, and high 
          school graduation rates.  Existing law requires that achievement 
          test scores constitute at least 60% of the API.  However, the 
          only indicators used so far to calculate the API have been test 
          scores, so, in practice, test scores constitute 100% of the API. 
           

          Among other things, the API is used to rank schools into 
          deciles, based on their API scores.  Each school receives two 
          ranks-one relative to all other schools in the state and one 
          relative to 100 other schools with similar pupil demographics.  
          Decile ranks are used for a variety of purposes, including:

          1)Identifying schools for participation in the II/USP and HA/ISP 
            programs.

          2)Compliance with the Williams settlement.

          3)Charter school renewal.

          4)Identifying schools for the Open Enrollment Act.

          5)Identifying eligible schools for the Assumption Program of 
            Loans for Education.

          6)Reporting on the School Accountability Report Card (SARC).
          7)Determining allowable expenditures for the Professional 
            Development Block Grant.

          8)Identifying eligible schools for the Quality Education 
            Investment Act.

           FISCAL EFFECT :  According to the Assembly Appropriations 








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          Committee:

          1)General Fund (GF) administrative costs of approximately 
            $250,000 to the State Department of Education to meet the 
            requirements of this measure, including additional staff to 
            research the appropriate indicators to recommend for inclusion 
            in the API.  

          2)This bill, commencing with the 2014-15 school year, requires 
            no more than 40% of the API at the secondary level to consist 
            of assessment results.  As such, it is unclear if LEAs are 
            currently collecting appropriate data to incorporate 
            additional indicators into the API.  If the state needs to 
            collect additional data beyond what is currently collected, 
            there will be GF/98 costs, likely in the hundreds of thousands 
            to millions, to LEAs.   

          3)GF/98 cost pressure, likely in excess of $4.5 million, to 
            implement a program of school quality review that features 
            locally convened panels to visit schools, observe teachers, 
            interview pupils, and examine pupil work.  This bill requires 
            the enactment of this provision to be contingent upon funding 
            in the budget for this purpose.  

            This measure does not specify parameters or elements of this 
            review; the state, however, currently is required under 
            federal law to assist LEAs that do not meet federal 
            accountability requirements.  The state meets this requirement 
            by funding School District Intervention and Assistance Teams.  
            This cost estimate is based on this process.      

           COMMENTS  :   According to the author, "It is time for the API to 
          evolve into a less punitive, more constructive representation of 
          school performance, and to encompass a more comprehensive set of 
          expectations and aspirations for school performance, such as 
          graduation and/or dropout rates, and, as appropriate, measures 
          of pupil preparedness for college and career."  A recent report 
          from Education Sector, "Ready by Design:  A College and Career 
          Agenda for California" (June 2012) finds that there is no 
          correlation between a school's API score and its graduation or 
          college enrollment rates and concludes that the API is a flawed 
          measure of college and career readiness.  The report suggests 
          that other measures, which are based on data that are already 
          collected and that are better indicators of college and career 
          readiness, could be added to the API at the high school level.  








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          These measures include:

          1)High school graduation and/or dropout rates.

          2)Data on pupils who pass the "a-g" requirements (coursework 
            required for admission to the University of California). 

          3)Passage rates and test-taking rates on Advanced Placement and 
            Early Assessment Program exams.

          4)Data on enrollment in postsecondary institutions.


           Analysis Prepared by  :    Rick Pratt / ED. / (916) 319-2087  FN: 
          0005556