BILL ANALYSIS                                                                                                                                                                                                    �




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


          SB 596 (Yee) - Pilot Program: Pupil Mental Health
          
          Amended: January 17, 2014       Policy Vote: Education 8-0,  
          Health 7-0
          Urgency: No                     Mandate: No
          Hearing Date: January 23, 2014                               
          Consultant: Jacqueline Wong-Hernandez                       
          
          SUSPENSE FILE.

          
          Bill Summary: SB 596 requires the California Department of  
          Education (CDE) to establish a three-year pilot program, as  
          specified, to encourage model practices of interventions that  
          meet the behavioral, emotional and academic needs of students.  

          Fiscal Impact: 
              Start-up and Evaluation: State start-up costs in the tens  
              of thousands of dollars, for the CDE to create an  
              application process, select schools, and establish the  
              program. Potentially significant costs for the Department of  
              Health Care Services (DHCS) and the CDE to collaboratively  
              develop a comprehensive evaluation plan and disseminate best  
              practices. Additionally, this bill would allocate $1 million  
              in the first year, $800,000 in the second year, and $600,000  
              in the third year (General Fund), to participating schools  
              for start-up and evaluation/reporting costs. 
              Program Administration: Annual staffing costs of  
              approximately $125,000, for the CDE to administer this pilot  
              program for three years and complete the required report.
              Program Expansion: Potentially substantial future costs to  
              expand the program statewide. To the extent that state  
              funding of tiered intervention programs results in  
              decreasing more intensive special education  
              placements/services, there may be offsetting savings.    

          Background: Tiered intervention is an approach to early  
          identification and support of students with learning and  
          behavior needs. Models of tiered intervention vary but,  
          characteristically, the approach provides struggling students  
          with interventions at increasing levels of intensity to  
          accelerate their learning. Students may receive intervention  








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          support from teachers, other personnel, or from specialists  
          partnering with the school. Many schools voluntarily follow  
          models of tiered interventions to address student needs prior to  
          imposing discipline or making referrals to special education.

          Proposed Law: This bill requires the CDE to establish a  
          voluntary three-year pilot program in four schools to encourage  
          model practices of interventions that meet the behavioral,  
          emotional, and academic needs of students. Specifically, this  
          bill:

          1)   Requires the pilot program to be established in four  
               schools that volunteer to participate, which propose model  
               approaches that provide preventive, targeted and intensive  
               interventions that target the behavioral, emotional and  
               academic needs of students.

          2)   Establishes numerous requirements for participating  
               schools, including formalized collaboration with local  
               mental health agencies to provide school-based mental  
               health services, and targeted interventions for students  
               with identified social-emotional, behavioral and academic  
               needs. Limits participation to two northern California and  
               two southern California schools, and to schools in which  
               60% or more of students are eligible for free or  
               reduced-price meals or free milk in child nutrition  
               programs.

          3)   Requires the CDE to provide start-up and evaluation funding  
               to each participating school, as follows: a) $250,000 in  
               the first year; b) $200,000 in the second year; and,  
               $150,000 in the third year.

          4)   Requires the DHCS and CDE to create a comprehensive  
               evaluation and progress indicators, and to disseminate best  
               practices.

          5)   Requires the CDE to submit a report to the Legislature at  
               the end of the three-year period evaluating the success of  
               the program and making further recommendations.  

          6)   Codifies legislative intent that the models used by  
               participating schools and evaluated by CDE can be adopted  
               by additional schools upon demonstrated success of the  








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               pilot program.

          7)   Codifies legislative findings and declarations that all  
               students deserve adequate behavioral and academic support,  
               students face many challenges such as poverty, current  
               funding practices do not incentivize preventative measures,  
               and collaboration is needed between schools and county  
               mental health agencies.

          Related Legislation: AB 1178 (Bocanegra) establishes the  
          California Promise Neighborhood Initiative to provide funding to  
          schools that have formalized partnerships with local agencies  
          and community organizations to provide a network of services to  
          improve the health, safety, education, and economic development  
          of a defined area.  That bill awaits hearing by the Assembly  
          Appropriations Committee.

          AB 174 (Bonta) would have required the Department of Public  
          Health to establish a pilot program in Alameda County, to the  
          extent that funding is made available, to provide grants to  
          eligible applicants for activities and services that directly  
          address the mental health and related needs of students impacted  
          by trauma. That bill was vetoed by Governor Brown, with the  
          following message:

          I support the efforts of the bill but am returning it without my  
          signature, as Alameda County can establish such a program  
          without state intervention and may even be able to use Mental  
          Health Services Act funding to do so.

          Waiting for the state to act may cause unnecessary delays in  
          delivering valuable mental health services to students. All  
          counties -not just Alameda- should explore all potential funding  
          options, including Mental Health Services Act funds, to tailor  
          programs that best meet local needs.

          Staff Comments: This bill will result in upfront state costs to  
          establish and administer the pilot program, as well as to  
          provide funding for participating schools. The CDE must create  
          the program, and collaborate with the DHCS to develop a  
          "comprehensive evaluation plan" to assess the pilot program. The  
          CDE must also develop a "detailed  application" and implement an  
          application process to select four schools which meet the  
          eligibility criteria. 








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          Amendments adopted in Senate Health Committee limit program  
          eligibility to schools in which 60% or more of students are  
          eligible for free or reduced-price meals "or free milk in child  
          nutrition programs." Staff notes that including the reference to  
          students eligible for free milk in child nutrition programs may  
          cause confusion in evaluating applications, and is unnecessary  
          if the intent is merely to limit the pilot to schools with 60%  
          or more low-income students. It is unclear whether this  
          additional measure of family income will have other  
          ramifications for the pilot.

          This bill specifies that each participating school will receive  
          General Fund start-up and evaluation/reporting funding as  
          follows: $250,000 the first year, $200,000 in the second year,  
          and $150,000 in the third year. Schools would be expected to use  
          the funding to set up tiered intervention programs, and to  
          collect and annually report all of the required information. The  
          cost of actually providing the services to students would be  
          borne by the local schools (and districts).

          The CDE would be responsible for providing ongoing technical  
          assistance, analyzing annual reports, and preparing a final  
          report on the pilot program for the Legislature and the  
          Governor. Annual staffing costs will likely be approximately  
          $125,000, for the CDE to administer this pilot program for three  
          years and complete the required report. DHCS costs are unknown.   
          The total state cost for the three year pilot will likely be at  
          least $2.8 - $2.9 million.

          This bill codifies legislative intent to expand the program to  
          "a large number of schools" upon demonstrated success of the  
          pilot. Expanding the program at a state level will likely  
          require substantial additional state funding.  To the extent  
          that state funding of tiered intervention programs results in  
          decreasing more intensive special education placements/services,  
          there may be offsetting savings.