BILL ANALYSIS                                                                                                                                                                                                    �




                   Senate Appropriations Committee Fiscal Summary
                            Senator Kevin de Le�n, Chair


          AB 1892 (Bocanegra) - Redesignated Fluent English Proficient  
          students
          
          Amended: June 26, 2014          Policy Vote: Education 7-0
          Urgency: No                     Mandate: Yes
          Hearing Date: August 4, 2014                                 
          Consultant: Jacqueline Wong-Hernandez                       
          
          This bill meets the criteria for referral to the Suspense File. 
          
          Bill Summary: This bill, until July 1, 2018, or the adoption of  
          statewide English learner (EL) reclassification criteria,  
          whichever comes first, requires that local educational agencies  
          (LEAs) continue to receive a percentage of supplemental and  
          concentration grant funding under the Local Control Funding  
          Formula (LCFF) for two additional years after an EL student has  
          been reclassified as Fluent English Proficient (RFEP), and  
          requires that the LEAs provide specified information regarding  
          these pupils in their Local Control Accountability Plans  
          (LCAPs). 

          Fiscal Impact: The costs of this bill will vary each year, based  
          on the number of RFEP pupils that are in their first two years  
          after reclassification that are not low-income, and what schools  
          they attend.
              Approximately $80 million - $95 million in additional (Prop  
              98 General Fund) costs, annually through the 2017-18 school  
              year, or the adoption of statewide reclassification  
              criteria, whichever occurs first. 

          Background: Both federal and state law require that each school  
          district with EL students annually assess these students'  
          English language development until they are redesignated as  
          English proficient. The assessment, the California English  
          Language Development Test (CELDT), must be administered to all  
          students whose primary language is not English within 30  
          calendar days after they are enrolled in a California public  
          school for the first time, and annually thereafter during a  
          period of time determined by the Superintendent of Public  
          Instruction and the State Board of Education (SBE) until they  
          are RFEP.  









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          Current law requires the CDE, with the approval of the SBE, to  
          establish procedures for conducting the CELDT and for the  
          reclassification of a pupil from EL to English proficient, as  
          specified. (Education Code � 313)
          
          In 2013, the LCFF was enacted. The LCFF replaces almost all  
          sources of state funding, including most categorical programs,  
          and uses new methods to allocate these resources and future  
          allocations to school districts, charter schools, and county  
          offices of education. The LCFF allows LEAs much greater  
          flexibility to spend the funds than under the prior system. This  
          formula is designed to provide districts and charter schools  
          with the bulk of their resources in unrestricted funding to  
          support the basic educational program for all students, plus  
          supplemental funding, based on the enrollment of educationally  
          disadvantaged students (low-income students, ELs, and foster  
          youth), provided to increase or improve services to these  
          high-needs students. County offices of education (COEs) receive  
          different funding levels within the LCFF, based upon the same  
          allocation principles.

          The LCFF allocates resources to LEAs as follows:

             1    Base Grants are provided to all school districts and  
               charter schools. They are calculated on a per-pupil basis  
               (measured by student average daily attendance) according to  
               grade span (K-3, 4-6, 7-8, and 9-12) with adjustments that  
               increase the base rates for grades K-3 (10.4% of base rate)  
               and grades 9-12 (2.6% of base rate). 

             2    Supplemental Grants provide an additional 20% in base  
               grant funding to school districts and charter schools for  
               each low-income student, EL, and foster youth (unduplicated  
               pupil count).

             3    Concentration Grants provide an additional 50% above  
               base grant funding to school districts and charter schools  
               for each low-income student, EL, and foster youth that  
               exceed 55% of total enrollment. (Charter schools are capped  
               at the concentration rate of the school district in which  
               they are located). 

          The LCFF includes new requirements for local planning and  
          accountability, including the creation of an LCAP for each  








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          school district and charter school, which focus on improving  
          student outcomes in state educational priorities and ensuring  
          engagement of parents, students, teachers, school employees, and  
          the public in the local process. To ensure accountability for  
          LCFF funds, the required school districts, charter schools, and  
          COEs adopt and update a LCAP. The LCAP must include locally  
          determined goals, actions, services, and expenditures of LCFF  
          funds for each school year in support of the state educational  
          priorities that are specified in statute, as well as any  
          additional local priorities. In adopting the LCAP, LEAs must  
          consult with parents, students, teachers, and other school  
          employees.
          
          There are 8 state priorities that must be addressed in the LCAP,  
          for all students and significant student subgroups in a school  
          district and at each school: 1) Williams settlement issues; 2)  
          implementation of academic content standards; 3) parental  
          involvement; 4) pupil achievement; 5) pupil engagement (as  
          measured by attendance, graduation, and dropout data); 6) school  
          climate (in part measured by suspension and expulsion rates); 7)  
          the extent to which students have access to a broad course of  
          study; 8) pupil outcomes for non-state-assessed courses of  
          study.

          Proposed Law: This bill, until July 1, 2018, or until statewide  
          pupil redesignation standards are adopted, whichever comes  
          first:

          1)   Expands the definition of "unduplicated pupil" to include a  
               pupil who is RFEP and provides that the pupil shall count  
               only once for funding purposes.

          2)   Requires that a COE, a school district, or a charter school  
               receive 50% and 25% of the supplemental grant and the  
               concentration grant add on calculated for a pupil who is  
               redesignated as RFEP for the first and second fiscal years,  
               respectively, after the redesignation.

          3)   Enacts implementing provisions to determine LEA funding  
               calculations for each fiscal year.

          4)   Expands LCAP state priority reporting requirements  
               regarding ELs to include identification of any specialized  
               programs or services provided to RFEPs in order for them to  








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               maintain proficiency in English and access the Common Core  
               standards in the specified areas of study in grades 1-12. 

          Staff Comments: This bill would provide LEAs with additional  
          funding for students that have recently (within two years)  
          designated RFEPs, by adding them (as a category) to the LCFF.  
          When RFEPs are not low-income (a status that would generate full  
          supplemental funding, and concentration funding as applicable)  
          they would generate reduced supplemental and concentration  
          grants for two years. The costs each year would depend on the  
          number of RFEP pupils that are in their first and second years  
          after reclassification (generating 50% and 25% of supplemental  
          grant funding, respectively) that are not low-income, what  
          schools they attend (as to whether or not they are eligible for  
          reduced concentration grant funding), and what grades they are  
          in (because different grades have different base grant amounts).

          In 2013-14 there were 65,298 pupils statewide that were in the  
          first two years of RFEP, and were not low-income; if this bill  
          were in effect, those students would have generated the  
          additional funding it provides. If the pupils had been evenly  
          split between first and second year RFEP they would have  
          generated additional supplemental grant funding of $34.1 million  
          - $41.1 million depending on their grade span distribution. In  
          addition, if 50% of those students were eligible to receive  
          concentration grant funding, they would have generated  
          additional funding of approximately $50 million.