BILL ANALYSIS                                                                                                                                                                                                    �




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

          SB 1239 (Wolk) - School Nurses
          
          Amended: April 21, 2014         Policy Vote: Education 6-1,  
          Health 6-1
          Urgency: No                     Mandate: Yes
          Hearing Date: May 12, 2014      Consultant: Jacqueline  
          Wong-Hernandez
          
          This bill meets the criteria for referral to the Suspense File. 
          
          Bill Summary: SB 1239 requires school districts that are  
          eligible to receive concentration funding under the Local  
          Control Funding Formula (LCFF) to employ at least one school  
          nurse as a supervisor of health, as specified. 

          Fiscal Impact: 
              School nurses: Substantial reimbursable mandate, likely in  
              the high tens of millions of dollars, to require all school  
              districts eligible to receive LCFF concentration funding to  
              hire school nurses as supervisors of health, as specified.
              Medi-Cal and insurance reimbursement: Likely minor local  
              cost savings, to the extent that this bill results in  
              additional billing to students' health insurance and/or  
              Medi-Cal, and that those insurance providers reimburse  
              school districts for eligible services actually rendered by  
              a school nurse. 

          Background: Existing law defines a school nurse as a registered  
          nurse (RN) currently licensed under the Nursing Practices Act,  
          and who has completed the additional educational requirements  
          for, and possesses a current credential in school nursing.   
          School nurses may perform, if authorized by a local governing  
          board, a number of services including, but not limited to,  
          conducting immunization programs, assessing and evaluating the  
          health and developmental status of pupils, and consulting with,  
          conducting in-service training for, and serving as a resource  
          person to teachers and administrators. (Education Code � 49426)

          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 local educational agencies  








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          (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  
               exceeds 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  
          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. 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. 

          Proposed Law: This bill requires school districts that are  








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          eligible to receive concentration funding under the LCFF to  
          employ at least one school nurse as a supervisor of health. This  
          bill provides that the supervisor of health shall supervise  
          other school nurses, RNs, or licensed vocational nurses employed  
          by the school district and, if applicable, a school nurse of a  
          county office of education, as specified. It also requires that  
          nurses hired supplement, and not supplant, existing employees of  
          the school district. This bill further provides that the  
          governing board of a school district may bill a pupil's health  
          insurer, or the Medi-Cal program for the cost of health care  
          services provided to the pupil, as specified.

          Staff Comments: Approximately 510 school districts statewide are  
          eligible to receive LCFF concentration funding, based on 2012-13  
          enrollment data. This bill would require those 510 school  
          districts to employ at least one nurse as a supervisor of  
          health, to supervise other school nurses, RNs, etc. that might  
          be employed or contracted by the school district to provide  
          student health services; this bill requires the school district  
          governing board to consider specific factors in determining how  
          many additional nurses should be hired, to be supervised by the  
          supervisor of health. This bill also provides that the school  
          nurses hired pursuant to its provisions must supplement, and not  
          supplant existing district employees. 

          In other words, this bill mandates the hiring of a minimum of  
          510 new school nurses to serve in supervisory capacities. It  
          also creates substantial cost pressure to hire additional  
          nurses, based on the consideration criteria it requires, and the  
          implication that there would be other school nurses to  
          supervise. If it cost a school district $100,000 per supervisor  
          of health (this cost is likely low, when including health  
          benefits), the statewide cost would be at least $51 million per  
          year. The requirement for schools districts that are eligible to  
          receive concentration funding (which is determined by their  
          enrollment demographics) to hire additional nurses as health  
          supervisors would certainly be deemed to be a reimbursable state  
          mandate by the Commission on State Mandates. 

          This bill provides that the governing board of a school district  
          may bill a pupil's health insurer, or the Medi-Cal program, or  
          both, for the cost of health care services provided to the  
          pupil. This permissive provision is declaratory of existing law,  
          with regard to Medi-Cal, and nothing in state law prohibits  








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          school districts from billing private insurers. School districts  
          often bill Medi-Cal for medical services required in the  
          individual education plan (IEP) of a student receiving special  
          education-related medical services at school. The extent to  
          which this bill would result in school nurses providing  
          additional services to pupils that result in actual  
          reimbursement is unclear.

          To the extent that additional services are provided and paid for  
          by Medi-Cal and private insurance companies, through  
          reimbursements, additional revenue may flow to local school  
          districts. This revenue will not, however, mitigate the costs of  
          the reimbursable state mandate because the action of billing is  
          permissive, is already allowed, and would occur outside of the  
          state mandate to hire health supervisors.