BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 1854
                                                                  Page  1

          Date of Hearing:   April 9, 2014

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                    AB 1854 (Linder) - As Amended:  April 3, 2014 

          Policy Committee:                              EducationVote:6-0

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

           SUMMARY  

          This bill re-establishes, subject to an appropriation in the  
          annual Budget Act for this purpose, a grant program to cover the  
          costs of Advanced Placement (AP) examination fees or  
          International Baccalaureate (IB) examination fees, or both, for  
          eligible economically disadvantaged high school pupils or foster  
          youth. Specifically, this bill:

          1)Defines "eligible economically disadvantaged high school  
            pupil" to mean a pupil who is eligible for a federal free or  
            reduced-price meal program.

          2)Authorizes school districts, county offices of education and  
            charter schools to apply to the CDE for grant funding based on  
            the number of economically disadvantaged pupils or foster  
            youth enrolled in AP or IB courses who will take the next  
            offered AP or IB exams.

          3)Requires participating school districts to designate school  
            district staff to whom pupils may submit applications for  
            grants and to institute a plan to notify pupils of the  
            availability of the grants.

          4)Authorizes eligible economically disadvantaged high school  
            pupils or foster youth to apply to the designated school  
            district staff for a grant; provides that the grant shall be  
            used only to pay the AP or IB exam fees, and requires a pupil  
            who receives a grant to pay $5 of the exam fee.

          5)Provides that if the applications exceed the total funds  
            available for this purpose, the CDE shall prorate the grants  
            based upon the ratio of the total amount requested to the  








                                                                  AB 1854
                                                                  Page  2

            total amount appropriated for this purpose.

          6)Authorizes school districts and county superintendents of  
            schools to form collaboratives or consortia in order to  
            participate in the grant program.

          7)Authorizes the CDE to enter into a contract with the providers  
            of the AP and IB exams to facilitate program administration,  
            and exempts the CDE from specified Public Contract Code and  
            Military and Veterans Code provisions. 

           



          FISCAL EFFECT  

          Annual GF/P98 costs of at least $3 million assuming the program  
          is reauthorized at the prior funding level.  Prior to  
          implementation of the Local Control Funding Formula (LCFF), the  
          state provided $3 million in categorical funding for this  
          program. 

          The bill establishes the AP/IB exam fee grant program, subject  
          to an appropriation in the annual Budget Act.  The Governor's  
          proposed budget does not include an appropriation for this  
          purpose.
          
           COMMENTS  

           1)Purpose.   This bill re-establishes a program that was repealed  
            by its own terms January 1, 2013.  The AP/IB test  
            reimbursement program, administered by CDE, removed the  
            financial barriers that prevent many low-income students in  
            comprehensive high schools from taking the AP and IB course  
            test. 

           2)Background  .  AB 2216 (Escutia), Chapter 793, Statutes of 1998,  
            established two grant programs to assist economically  
            disadvantaged students with fees for AP exams and to train  
            teachers to offer AP courses. Subsequent bills extended the  
            sunset through 2008.  The state began to include IB test fee  
            reimbursements in 2003-04. SB 1442 (Escutia), Chapter 436,  
            Statutes of 2006 codified this practice and extended the  
            sunset date for the AP/IB test reimbursement program through  








                                                                  AB 1854
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            2013. The program was not reauthorized.

            In prior years, both state and federal funds were provided for  
            AP/IB test fee reimbursement. In 2009, state categorical  
            funding for this program was made flexible, allowing LEAs to  
            use the funds for any educational purpose.  In 2013, LEAs  
            continued receive this flexible funding through the Local  
            Control Funding Formula. 

            The federal government has steadily increased its commitment  
            to this program over the years.  In 2009, the federal  
            government provided $4.3 million to CDE to reimburse LEAs for  
            AP/IB test fees for students whose family income does not  
            exceed 185 percent of the federal poverty level.  In 2013, CDE  
            received a federal grant of $10.8 million. CDE does not yet  
            know how much federal funding will be available for this  
            purpose in 2014-15.  

            According to CDE, the cost to administer each AP exam is $89  
            and the cost for each IB exam is $108. In 2013, CDE was able  
            to reimburse LEAs that applied for funding at a rate of $45  
            per AP exam and $94 per IB exam. This bill would require  
            income eligible students to pay $5 per exam making the value  
            of the grant for each AP exam $84 and the value of the grant  
            for each IB exam $103.


           Analysis Prepared by  :    Misty Feusahrens / APPR. / (916)  
          319-2081