BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 2437
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          Date of Hearing:   May 14, 2014

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                     AB 2437 (Hagman) - As Amended:  May 1, 2014 

          Policy Committee:                              EducationVote:7-0

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

           SUMMARY  

          This bill requires the California Department of Education (CDE)  
          to establish a competitive grant program to provide grants to  
          local education agencies (LEAs) for the construction of network  
          infrastructure necessary to administer computer-based  
          assessments.  The bill appropriates $500 million General Fund  
          for the 2014-15 fiscal year for this program. Specifically this  
          bill:

          1)Sets forth specific uses, including networking hardware,  
            software and provider services, and establishes priority for  
            LEAs that have little or no network connectivity.

          2)Requires the CDE to develop guidelines with public input for  
            the implementation of the program. Requires the guidelines to  
            include: a maximum grant amount; a matching funds requirement,  
            based on a sliding scale and; the process for submitting  
            applications and determining awards.

           FISCAL EFFECT   

          1)General Fund costs of $500 million pursuant to an  
            appropriation in this bill.   Recent estimates to update  
            Broadband connectivity statewide are in the range of $360  
            million to $700 million.  Additional cost pressures beyond the  
            appropriation in the bill could occur to the extent grant  
            funding does not meet network infrastructure and connectivity  
            needs or districts have difficulty meeting the matching  
            requirements. 

          2)General Fund administrative costs to CDE of approximately  
            $300,000 to $350,000 to administer the grant program.  The  








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            bill authorizes an unspecified amount from the grant funding  
            to support CDE costs.  

           COMMENTS  :  

           1)Purpose  . According to the author, full implementation of these  
            tests will begin next year, however many schools throughout  
            California do not have the adequate levels of internet access  
            and infrastructure to administer these tests.  Aside from the  
            new testing, technology has become an increasingly central  
            component of classroom instruction and will continue to  
            increase with the new standards.  It is essential that we  
            bring our schools up to date with their network  
            infrastructure, bandwidth and internet accessibility.

           2)Existing funding  .  The state provides $8 million to fund the  
            K-12 High Speed Network (K-12 HSN).  The primary focus of the  
            K-12 high speed network is to connect schools, districts and  
            county offices of education with adequate high-speed bandwidth  
            through the California Research and Education Network  
            (CalREN).  Approximately 793 schools connect to the CalREN.   
            However, the bandwidth available to schools through the CalREN  
            is significantly lower than the 100 Mbps necessary for the  
            Smarter Balance assessments.  

            The 2013-14 Budget Act provided $1.25 billion to LEAs for the  
            purpose of implementing Common Core Standards.  The funds can  
            be used for professional development, instructional material  
            and expenditures to support technology-based instruction,  
            including expenditures necessary to support the administration  
            of computer-based assessments and provide high-speed,  
            high-bandwidth Internet connectivity for the purpose of  
            administration of computer-based assessments.  
           
          3)Related legislation  .  AB 2319 (Bonilla), pending in this  
            committee, establishes the Broadband Infrastructure Fund  
            Program to provide adequate Internet capacity to support new  
            content standards and assessments, and establishes the  
            Innovation, Training, and Common Core Implementation Fund to  
            support the integration of common core academic content  
            standards in instruction for grades K-12, inclusive, for  
            purposes of establishing quality instructional programs for  
            all pupils.

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








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          319-2081