BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 1955
                                                                  Page  1

          Date of Hearing:   May 14, 2014

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                      AB 1955 (Pan) - As Amended:  May 1, 2014 

          Policy Committee:                              EducationVote:6-1
                        Health                                  16-2
                                                             
          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              No

           SUMMARY  

          This bill requires the State Superintendent of Public  
          Instruction (SPI), starting July 1, 2014, to establish the  
          Healthy Kids, Healthy Minds Demonstration, to provide grants  
          over a three year period to local educational agencies (LEA) to  
          employ one full-time school nurse and one full-time mental  
          health professional, and ensure the schoolsite library is open  
          one hour before and three hours after the regular school day.  
          Authorizes the State Board of Education (SBE) to adopt emergency  
          regulations to implement the program. Specifically, this bill:

          1)Allows an LEA or schoolsite to participate if it has a  
            percentage of pupils who are either classified as an English  
            learner, eligible for a free or reduced-price meal, or are a  
            foster youth, in excess of 55% of the LEAs total school  
            enrollment. 

          2)Requires LEAs, at a minimum, to demonstrate employment of a  
            nurse, mental health professional and library staff can be met  
            with a combination of local funds and grant funding and can  
            show the proposed use of funds is consistent with its local  
            control and accountability plan (LCAP).

          3)Requires, upon appropriation by the Legislature, the SPI to  
            reserve funds each year necessary to operate the demonstration  
            as a grant program.

          4)Requires participating LEAs, with assistance from the  
            California Department of Education (CDE) to collect and  
            aggregate data from schoolsites under the jurisdiction of the  
            LEA, including, among other things, measuring changes in pupil  








                                                                  AB 1955
                                                                  Page  2

            absenteeism, school climate, reductions in the incidence of  
            violence, changes in health status among high-needs pupils,   
            and other relevant benchmarks as defined and determined by the  
            State Board of Education (SBE), and requires a participating  
            LEA to transmit this data to the CDE annually.

          5)Encourages participating LEAs to offer library programs that  
            may include, but are not limited to, reading circles, tutoring  
            programs, online research, and parent outreach for homework  
            assistance, and requires, to the extent feasible, schoolsites  
            to make efforts to offer library programming with the  
            participation of certified bilingual staff.

          6)Requires CDE to compile, analyze, and present the data on the  
            results of the demonstration project to the Legislature and  
            SBE no later than December 31, 2018. Sunsets the provisions of  
            this bill on January 1, 2019.

           FISCAL EFFECT  

          1)Unknown state costs, likely in the tens to hundreds of  
            millions of dollars. This bill does not specify total grant  
            funding, does not identify a funding source and does not limit  
            the number of grants awarded.  There are approximately 10,000  
            school sites in California. Roughly 4,890 school sites have  
            EL, FRPM or FY student populations with in excess of 55%.   
            Annual costs to support staffing required under the grant  
            program are approximately $200,000.  For illustration,  
            assuming each grantee provided 50% matching funds, and the  
            grant provided $100,000 to half of all eligible sites, total  
            grant costs would be $232 million. 

          2)General Fund administrative costs to CDE of approximately  
            $130,000 to provide assistance to school sites to collect and  
            aggregate data.  CDE would also need to analyze and present  
            data on the results of the demonstration project to the  
            Legislature.  Additional, unknown administrative costs to CDE  
            to recalculate and augment each LEAs base grant provided under  
            the Local Control Funding Formula. 

           COMMENTS  

           1)Purpose  . According to the author, school-based health services  
            can lead to academic improvements, improved attendance,  
            reduced suspension and expulsion rates and lower dropout  








                                                                  AB 1955
                                                                  Page  3

            rates. The California Federation of Teachers, is sponsoring  
            this bill and asserts school library programs and the presence  
            of school librarians can make differences in student success,  
            literacy, information technology skills and overall academic  
            achievement. 
           
          2)Interaction with LCFF base grant  .  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 Governor estimates the state will need to  
            invest $15.5 billion (plus cost of living increases) to fully  
            implement the LCFF over the next six years.  As Proposition 98  
            funding increases, the state provides funding to move LEAs  
            closer to their full implementation target. For example, the  
            2013-14 Budget Act provided $2.1 billion towards  
            implementation of the LCFF.  The Governor's January budget  
            proposes to provide an additional $4.5 billion in 2014-15 to  
            school districts for the LCFF.  The Governor estimates this  
            funding closes approximately 28% of the remaining gap to full  
            implementation. 

            This bill requires grant funding to be added to a LEAs base  
            grant under LCFF for three years. This would have the effect  
            of moving the LEA closer to full implementation sooner but for  
            a limited amount of time.  The committee may wish to consider  
            providing these funds outside of the LCFF formula given the  
            temporary nature of the funding. 


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