BILL ANALYSIS                                                                                                                                                                                                    �




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


          SB 1346 (Wyland) - Local Control and Accountability Plans 
          
          Amended: April 21, 2014         Policy Vote: Education 7-0
          Urgency: No                     Mandate: Yes
          Hearing Date: May 23, 2014      Consultant: Jacqueline  
          Wong-Hernandez
          
          SUSPENSE FILE.
          
          
          Bill Summary: SB 1346 adds requirements to the Local Control and  
          Accountability Plans (LCAPs), required under the new Local  
          Control Funding Formula (LCFF), related to serving the academic  
          needs of English Learner (EL) pupils. This bill also makes  
          changes to local accountability in serving EL students.

          Fiscal Impact: 
              LCAP requirements (locals): Significant costs to local  
              educational agencies (LEAs) which, if deemed by the  
              Commission on State Mandates to be reimbursable, would have  
              substantial aggregated costs. The state would likely  
              reimburse millions of dollars annually, for LEAs to make  
              required changes to their LCAPs, and to complete the related  
              plan implementation work. There is also a potentially  
              significant reimbursable mandate on county offices of  
              education (COEs) to review the changes and new criteria  
              required of the LCAPs.  
               LCAP requirements (state): Up to $500,000 in workload costs  
              to the California Department of Education (CDE) to add a 9th  
              state priority to the LCAPs and draft conforming regulations  
              for adoption by the State Board of Education (SBE) and for  
              the SBE to adopt revised LCAP templates. 
              API subgroup: $50,000 in CDE costs to make programming  
              changes needed to create the new subgroup. Minor ongoing  
              state costs to include the subgroup in future accountability  
              reports.   

          Background: 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 LEAs much greater  








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          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. 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  
               exceed 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. To ensure accountability for  
          LCFF funds, the required school districts, charter schools, and  
          COEs must adopt and update an 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  








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          employees.
          
          There are 8 state priorities that must be addressed in the LCAP,  
          for all students and significant student subgroups in a school  
          district and at each school: 1) Williams settlement issues; 2)  
          implementation of academic content standards; 3) parental  
          involvement; 4) pupil achievement; 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  
          their COEs. The Superintendent of Public Instruction (SPI) is  
          authorized to intervene in a struggling district, under certain  
          conditions.

          Proposed Law: This bill changes state and local accountability  
          and reporting requirements related to EL pupils. Specifically,  
          this bill:

          1)   Requires each LEA's fiscal audit to determine whether LCFF  
               expenditures were in compliance with State Board of  
               Education (SBE) adopted regulations regarding supplemental  
               and concentration grants. 

          2)   Requires COEs, as part of their review of an LEA's adopted  
               budget, to determine whether LCFF expenditures were in  
               compliance with SBE adopted regulations.

          3)   Prohibits the SBE adopted regulations concerning LCFF  
               supplemental and concentration grants from being more  
               restrictive than the federal No Child Left Behind (NCLB)  
               Title I requirements governing the use of school-wide  
               funds.

          4)   Adds reclassified ELs as a distinct subgroup of pupils  
               whose 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.








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          5)   Adds, beginning in 2015-16, the following elements to the  
               LCAP that each LEA is required to adopt: a) a listing and  
               description of the expenditures for the fiscal year  
               implementing the specific actions included in the LCAP;  
               and, b) a listing and description of the expenditures that  
               will serve EL pupils, low-income pupils, foster youth, and  
               reclassified ELs.

          6)   Includes the reclassification of ELs in the state priority  
               of "pupil achievement." 

          7)   Adds as a 9th state priority to be addressed in an LCAP:  
               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.

          8)   Requires a school district that enrolls at least 15% ELs or  
               50 EL pupils to establish a districtwide EL parent advisory  
               committee to advise the governing board on: a) establishing  
               school district goals and objectives for programs and  
               services for EL pupils to ensure that the academic and  
               language proficiency needs of ELs are being met; b)  
               administering the home language survey; c) school district  
               reclassification procedures.

          9)   Requires the LCAP templates adopted by the SBE on or before  
               March 31, 2015 to meet the requirements of the NCLB related  
               to the single plan for pupil achievement, and to ensure  
               that LEAs that receive supplemental and concentration funds  
               include in their LCAPs specified information on the  
               instructional programs and services provided to EL,  
               low-income, foster youth and reclassified EL pupils.

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

          Related Legislation: SB 344 (Padilla) 2013 contained similar  
          accountability measures and mechanisms for ELs. That bill was  
          was vetoed by Governor Brown, with the following message: 

               This bill interferes with the work of the State Board of  








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               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.

          Staff Comments: This bill requires LEAs to make numerous changes  
          to their LCAPs, and to complete the related plan implementation  
          work. LCAP creation is supposed to be funded from LCFF funds  
          allocated to LEAs. This bill does, however, expand LCAP  
          requirements without providing additional funding. It is unclear  
          whether these changes will constitute a reimbursable state  
          mandate, or whether these changes will simply put more cost  
          pressure on existing LCFF funds. If it deemed to be a  
          reimbursable mandate, the state would have to reimburse more  
          than 1,000 school districts for the activities required by this  
          bill.

          COEs will also be required to review the changes and new  
          criteria required of the LCAPs. This is likely a new  
          reimbursable mandate, and the additional staff time COEs  
          dedicate to reviewing the changes would become a state cost.

          The CDE anticipates incurring $500,000 in workload costs to meet  
          the bill's requirements to add a 9th state priority to the LCAPs  
          and draft conforming regulations and revised templates for  
          adoption by the SBE. The CDE would also require $50,000 to make  
          programming changes needed to create a new reclassified EL  
          subgroup. The department also has concerns that creating a  
          different subgroup for reclassified ELs will have accountability  
          ramifications for a school's API, because reclassified ELs are  
          currently counted in the EL subgroup until they have scored  
          proficient on the former California Standards Test for 3 years.  
          It may also result in challenges to the integrity of statewide  
          test scores, by enabling non-standardized local reclassification  
          methodologies to affect the scores of a statewide subgroup, or  
          in schools creating stricter criteria for reclassification in  
          order to benefit their API.