BILL ANALYSIS                                                                                                                                                                                                    �






                           SENATE COMMITTEE ON EDUCATION
                                  Carol Liu, Chair
                             2013-2014 Regular Session
          

          BILL NO:       SB 1346
          AUTHOR:        Wyland
          INTRODUCED:    February 21, 2014
          FISCAL COMM:   Yes            HEARING DATE:  April 2, 2014
          URGENCY:       No             CONSULTANT:Daniel Alvarez

           SUBJECT  :  Schools: accountability: local control and  
          accountability plans. 
          
           SUMMARY  

          This bill adds several requirements to the Local Control  
          Funding Formula / Local Control and Accountability Plans  
          related to parental involvement and programmatic and fiscal  
          accountability for the purpose of insuring the academic needs  
          of English learner (EL) pupils are being met.

           BACKGROUND  

           Local Control Funding Formula.   The new Local Control Funding  
          Formula (LCFF) combines the prior funding from revenue limits  
          and more than 35 categorical programs that were eliminated, and  
          uses new methods to allocate these resources and future  
          allocations to school districts, charter schools, and county  
          offices of education, allowing local educational agency's  
          (LEAs) much greater flexibility to spend the funds than under  
          the prior system. There is a single funding formula for school  
          districts and charter schools, and a separate funding formula  
          for county offices of education that has some similarities to  
          the district formula, but also some differences.  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, English learners, and foster  
          youth), provided for increasing or improving services to these  
          high-needs students. 

             1    Base Grants 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  




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               that increase the base rates for grades K-3 (10.4 percent  
               of base rate) and grades 9-12 (2.6 percent of base rate). 

          2 Supplemental Grants provide an additional 20 percent in base  
            grant funding for 
               low-income students, English learners, and foster youth  
          (unduplicated pupil 
               count).

          3 Concentration Grants provide an additional 50 percent above  
            base grant 
              funding for low-income students, English learners, and  
            foster youth that exceed 
              55 percent of total enrollment.

          The LCFF includes new requirements for local planning and  
          accountability that 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.  In addition, the LCFF features a new  
          system of support and intervention for underperforming school  
          districts that do not meet their goals for improving student  
          outcomes.
          
           Local Control and Accountability Plan  .  To ensure  
          accountability for LCFF funds, the state mandated that school  
          districts, charter schools, and county offices of education  
          adopt and update a local control and accountability plan  
          (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.
          
          The eight state priorities that must be addressed in the LCAP,  
          for all students and significant student subgroups in a school  
          district and at each school, are:
           
             1)   Williams settlement issues (adequacy of credentialed  
               teachers, instructional materials, and school facilities).

             2)   Implementation of academic content standards.

             3)   Parental involvement.





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             4)   Pupil achievement (in part measured by statewide  
               assessments, Academic Performance Index, and progress of  
               English-language learners toward English proficiency).

             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.

          School district LCAPs are subject to review and approval by  
          county offices of education.  Statute established a process for  
          districts to receive technical assistance related to their  
          LCAPs.  The Superintendent of Public Instruction (SPI) is  
          authorized to intervene in a struggling district, under certain  
          conditions.

           ANALYSIS
           
          1)   Requires each local educational agency's (LEAs) fiscal  
               audit to determine whether LCFF expenditures were in  
               compliance with State Board of Education (SBE) adopted  
               regulations regarding supplemental and concentration  
               funds.  Further requires county offices of education  
               (COEs), as part of their review of an LEAs adopted budget,  
               to determine whether LCFF expenditures were in compliance  
               with SBE adopted regulations.

          2)   Prohibits the SBE adopted regulations concerning  
               schoolwide LCFF supplemental and concentration grant funds  
               from being more restrictive than the federal No Child Left  
               Behind (NCLB) Title I (poor/needy pupil) requirements  
               governing the use of schoolwide funds.

          3)   Authorize a school district or county office of education  
               to use the funds apportioned on the basis of the number  
               and concentration of unduplicated pupils, for school  
               districts, for districtwide purposes, or, for county  
               offices of education, for countywide purposes.

          4)   Adds reclassified ELs to the subgroups of pupils whose  




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               academic achievement must be measured by the Academic  
               Performance Index (API) for accountability purposes and  
               provides that the inclusion of reclassified ELs in the API  
               shall, at a minimum, be consistent with the manner in  
               which reclassified ELs are included in the determination  
               of adequate yearly progress, as required by federal law.

          5)   Adds the following elements to the Local Control and  
               Accountability Plans (LCAP) that each LEA is required to  
               adopt:

               a      A listing and description of the expenditures for  
                 the initial fiscal year 
                   implementing the specific actions included in the  
                 LCAP.

               b      A listing and description of the expenditures for  
                 the initial fiscal that 
                    will serve EL pupils, low-income pupils, foster  
                    youth, and reclassified ELs.

          1)   Includes within the state priority of "pupil achievement"  
               (which is one of eight state priorities) the  
               reclassification of EL pupils.

          2)   Adds a ninth state priority that must be addressed in an  
               LCAP, for all students and significant student subgroups: 

               a      The extent to which teachers, administrators, and  
                 staff receive 
                    professional development or participate in induction  
                    programs, including the type and subject areas of the  
                    professional development provided.

          1)   Requires as a condition of receiving LCFF funding that a  
               district must establish a districtwide EL parent advisory  
               committee if the district enrolls at least 15 percent EL  
               pupils or 50 EL pupils. 

          2)   Requires the districtwide EL parent advisory committee to  
               advise the governing board on the following:



               a      Establishing school district goals and objectives  
                 for programs and 




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                    services for EL pupils to ensure that the academic  
                    and language proficiency needs of ELs, including  
                    long-term ELs and ELs at-risk of becoming long-term  
                    ELs are being met.

               b      Administering the home language survey.

               c      School district reclassification procedures.

          1)   Requires the LCAP template adopted by the State Board of  
               Education meet the requirements of the federal No Child  
               Left Behind Act related to the single plan for pupil  
               achievement and to ensure that LEAs that receive  
               supplemental an concentration funds include in their LCAPs  
               information on the instructional programs and services  
               provided to English learner, low-income, foster youth and  
               reclassified EL pupils to increase their academic  
               achievement.  And include information on the types of  
               English language development instructional programs  
               provided to English learners, and how those programs  
               support the core instructional program, including, but not  
               limited to, the types of instructional materials provided  
               to pupils and the professional development provided to  
               schoolsite staff.

          2)   Requires LEAs to expend Economic Impact Aid program funds  
               only for purposes authorized in statute and regulations as  
               read on June 30, 2013.

           STAFF COMMENTS  

           1)   Need for bill  .  According to the author's office, this  
               measure will increase accountability for English language  
               learner (ELL) programs by requiring LEAs to demonstrate  
               how they are spending money on ELL programs and by  
               incorporating parent involvement with school district  
               goals for ELL programs.  Nearly 1.4 million of  
               California's 6.2 million students are classified as  
               English Learners (ELs), making California the state with  
               the largest EL population - with about one-third of the  
               country's total ELs. Sadly, 40 percent of ELs do not  
               graduate from high school. 


           2)   Clarity on EL pupil expenditures and parent advisory  
               committees  expounded in this measure, are consistent with  




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               the premise underlying LCFF that includes:

               a      Increase local funding and programmatic control and  
                 reduce state 
                   bureaucracy.

               b      Ensure that student needs drive the allocation of  
                 resources.

               c      Increase transparency in school funding, empowering  
                 parents and 
                    local communities to access information in a more  
                    user-friendly manner and enhance their ability to  
                    engage in local school matters.

               d      Ensure sufficient flexibility and accountability at  
                 the local level so 
                   those closest to the students can make the decisions.


           1)   Restrictions on LCFF Supplemental Funding  .  Statute that  
               governs the expenditure of the supplemental funding  
               (supplemental and concentration grant funds) requires LEAs  
               to increase or improve services for educationally  
               disadvantaged students (low-income students, English  
               learners, and foster youth) in proportion to the  
               supplemental funding LEAs receive for the enrollment of  
               these students.  The statute also allows the supplemental  
               funding to be used for school-wide, district-wide,  
               county-wide, and charter-wide purposes, for the benefit of  
               a broader student population rather than restricted only  
               for educationally disadvantaged students, in a manner that  
               is no more restrictive than the provisions for spending  
               federal funds under Title I of the No Child Left Behind  
               Act of 2001 (NCLB). 


               On January 16, 2014, after receiving significant  
               stakeholder input and public comment on its proposed  
               regulations, the State Board of Education (SBE) adopted  
               LCFF emergency regulations that include the spending  
               regulations and a template for the new mandated local  
               control and accountability plan (described below). The  
               emergency regulations became effective on February 6,  
               2014, when they were approved by the Office of  
               Administration Law. The board also initiated the process  




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               for adopting permanent regulations, which is expected to  
               be completed by the fall 2014.  


               The emergency regulations require LEAs to describe in  
               their local control and accountability plan the increased  
               or improved services provided to disadvantaged students  
               beyond the services provided to all students, in  
               proportion to the LEA's increase in supplemental funding.  
               The regulations include a specified standard methodology  
               for LEAs to calculate their annual LCFF funding attributed  
               to the supplemental funds versus base grant funds and also  
               to calculate the "proportionality percentage" (i.e.,  
               amount of supplemental funds divided by amount of base  
               funds) by which services to disadvantaged students must be  
               increased or improved beyond services provided to all  
               pupils.


               At the same time, the regulations give LEAs broad  
               flexibility to spend the supplemental funding for  
               school-wide, district-wide, county-wide, and charter-wide  
               purposes.  The LCFF regulations allow the supplemental  
               funding to be used for district-wide or school-wide  
               purposes even when disadvantaged students make up a small  
               percentage of the student enrollment.  However, the  
               regulations include certain thresholds to distinguish the  
               level of justification for district-wide or school-wide  
               services that must be in a local control and  
               accountability plan. 


               This measure is consistent with actions advocated by  
               several legislators and a coalition of civil rights and  
               other organizations who had previously urged the board to  
               adopt a policy on school-wide services that is more  
               consistent with Title I in order to ensure that the  
               supplemental funding is only used on a school-wide basis  
               at schools where disadvantaged students make up a  
               significant percentage of the student enrollment.

           2)   The LCFF is a massive cultural change from compliance  
               driven to outcome driven accountability  in return for  
               funding and programmatic flexibility.  Most entities  
               affected by the LCFF have indicated that everyone involved  
               are working in good faith toward its successful  




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               implementation.  With this in mind, the implementing  
               legislation envisioned providing schools time to acclimate  
               to the new funding formula, but continue with improving  
               modifications, both in terms of connecting budgets with  
               instructional programs offered, development of robust and  
               detailed accountability plans with required input from a  
               number entities, and allowing for annual review and  
               fine-tuning of plans to insure pupil academic success.   
               Consistent with the intent of this measure, staff  
               recommends the following amendments:

               a      On page 13, line 3, strike "2014-15" and insert:  
                 2015-16.  This 
                   amendment would harmonize the enactment timing of this  

                   measure, January 2015, with the fiscal year in which  
                 it becomes 
                   effective.

               b      On page 18, maintain current statute per Education  
                 Code section 
                   42238.07, but create a new section 42238.08 that  
                 provides for the 
                   development of SBE regulations on or before January  
                 31, 2015, as 
                   written in Section 3.  

               c      On page 25, lines 21 and 24, should read?  
                 "Beginning with the 
                   2015-16 fiscal year and each year a local control and  
                 accountability 
                   plan is updated a listing?" 

               d      On page 25, lines 21 and 24, strike "initial"

               e      On page 30, lines 29 and 37, each line should read  
                 "On or before 
                    March 31, 2015, the state board shall adopt templates  
               and that 
                    beginning in the 2015-16 fiscal year and annually  
               thereafter shall 
                    ensure?."

           1)   Previous legislation  .  SB 344 (Padilla, 2013) was nearly  
               identical to this measure.  SB 344 was vetoed by the  
               Governor, whose veto message read: 




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               This bill interferes with the work of the State Board of  
               Education as it implements, through an open and  
               transparent process, the Local Control Funding Formula.   
               Moreover, it contains provisions contrary to the July  
               budget agreement.  For these reasons, I am unable to sign  
               this bill.
           
          SUPPORT
           
          None on file.

           OPPOSITION

           None on file.