BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 1892
                                                                  Page  1

          Date of Hearing:   May 14, 2014

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                  AB 1892 (Bocanegra) - As Amended:  March 17, 2014 

          Policy Committee:                              EducationVote:7-0

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

           SUMMARY  

          This bill adds pupils redesignated as fluent English proficient  
          to the list of "unduplicated pupils" for purposes of the Local  
          Control Funding Formula (LCFF) and makes related changes.   
          Specifically, this bill:

          1)Adds redesignated English learners (ELs) to English learners,  
            low income pupils, and foster youth for purposes of generating  
            supplemental grant and concentration factor funding under LCFF  
            for school districts, county offices of education, and charter  
            schools.

          2)Provides that redesignated ELs shall generate supplemental  
            grant and concentration factor funding for two consecutive  
            years after the pupil has been redesignated as a fluent  
            English learner.

          3)Provides that redesignated ELs who fall into more than one  
            unduplicated pupil category shall count only once for funding  
            purposes.

          4)Requires that, as a condition of receiving supplemental and  
            concentration grant funds, school districts and county offices  
            of education shall identify any specialized programs or  
            services provided to pupils redesignated as fluent English  
            proficient in order for them to maintain proficiency in  
            English and access the common core academic content standards  
            and a broad course of study, as specified.

           FISCAL EFFECT    

          Ongoing General Fund/Proposition 98 costs of approximately $70  








                                                                  AB 1892
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          million to $100 million.  According to 2012-13 data, there are  
          1.35 million English learners in California.  Many of these  
          students are also low income and would continue to qualify for  
          supplemental and concentration grant funding regardless of  
          redesignation.  It is estimated about three-fourths of ELs are  
          low income.  Therefore, 337,500 students are not low income and  
          would potentially qualify for additional funding under this  
          bill.  Applying the most recent percentage of redesignation  
          (12.2%), just over 40,000 students could potentially qualify for  
          additional funding.   

           COMMENTS  :   

           1)Purpose  . This bill allows local education agencies (LEAs) to  
            continue receiving supplemental and concentration grant  
            funding under the Local Control Funding Formula (LCFF) for two  
            additional fiscal years after an English learner (EL) has been  
            reclassified as Fluent English proficient (RFEP). According to  
            the author, the bill highlights the importance of  
            reclassifying EL pupils into mainstream academic programs  
            while, at the same time, ensuring they have continued  
            resources to maintain proficiency.

           2)Local Control Funding Formula  . In 2013, the state implemented  
            a new funding formula for schools known as the Local Control  
            Funding Formula.  The new law replaces most previously  
            existing K-12 funding streams (revenue limit and categorical  
            programs) with per pupil grade span funding and targeted  
            funding for low income, English learner and foster youth  
            students. The formula uses an "unduplicated count," which  
            means that pupils who fall into more than one category are  
            counted only once. The formula consists of: 

             a)   A base grant.  This provides the same amount of funding  
               per pupil for all districts, varied by grade span;

             b)   A supplemental grant. A student who is identified as low  
               income (LI), an English learner (EL), or in foster care  
               generates an additional 20 percent of the base rate in  
               supplemental funding. 

             c)   A concentration factor. Districts whose EL/LI  
               populations exceed 55 percent of their enrollment receive  
               an additional 50 percent of their base rate for students  
               above this threshold. 








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           3)Redesignation issues.   Currently, there is no statewide  
            standard for redesignating EL pupils, and as a result  
            districts apply different criteria.  The State Board of  
            Education (SBE) has adopted minimum guidelines, but ultimately  
            each district sets its own cut scores and redesignation  
            requirements, including local criteria.
             
             Districts may face disincentives to redesignate ELs as it  
            could result in loss of instructional services and supports.   
            Additionally, holding ELs back from redesignation longer than  
            necessary, may result in reduced access to courses needed for  
            postsecondary education.  Some have suggested that the LCFF  
            may provide a disincentive redesignate when appropriate and  
            beneficial, because it would reduce the number of pupils who  
            qualify the LEA for supplemental grant and concentration  
            factor funding.  This bill seeks to reduce that disincentive.

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