BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 1346
                                                                  Page  1

          Date of Hearing:   June 25, 2014

                           ASSEMBLY COMMITTEE ON EDUCATION
                                Joan Buchanan, Chair
                    SB 1346 (Wyland) - As Amended:  April 21, 2014

           SENATE VOTE  :   31-0
           
          SUBJECT  :   Schools:  accountability:  local control and  
          accountability plans

           SUMMARY  :   Adds new requirements to Local Control Accountability  
          Plans (LCAPs) related to serving the academic needs of English  
          learner (EL) pupils.  Specifically,  this bill  :   

             1)   Requires each local educational agency's (LEA) fiscal  
               audit to determine whether Local Control Funding Formula  
               (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 LEA's  
               adopted budget, to determine whether LCFF expenditures were  
               in compliance with SBE adopted regulations.

             2)   Deletes the authorization that, under specified  
               circumstances, charter schools may use supplemental grant  
               and concentration factor funds for charter-wide purposes.

             3)   Adds reclassified ELs to the subgroups of pupils whose  
               academic achievement must be measured by the 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.

             4)   Adds, beginning in 2015-16, the following elements to  
               the LCAPs 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; and
                  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.








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             5)   Specifies that "pupil achievement" (which is one of  
               eight state priorities that the LCAP must address) includes  
               the achievement for each pupil subgroup that the LCAP must  
               address.

             6)   Adds 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, to the list of  
               priorities that the LCAP must address. 

             7)   Clarifies that the EL parent advisory committee shall be  
               a district EL parent advisory committee and makes its  
               establishment a condition of receipt of LCFF supplemental  
               grant funds.

             8)   Requires the districtwide EL parent advisory committee  
               to advise the governing board on at least the following:

                  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, including long-term ELs and ELs at-risk  
                    of becoming long-term ELs are being met; 
                  b.        Administering the home language survey; and
                  c.        School district reclassification procedures.

             9)   Requires the SBE, by March 31, 2015, to adopt LCAP  
               templates that do the following:

                  a.        Ensure that each school district, county  
                    superintendent of schools, or charter school that  
                    receives supplemental and concentration funds for  
                    unduplicated pupils include information on the  
                    instructional programs and services provided to  
                    unduplicated pupils for the purpose of increasing  
                    their academic achievement in its LCAP; and
                  b.        Ensure that school districts, county  
                    superintendents of schools, or charter schools 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  








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                    pupils and the professional development provided to  
                    schoolsite staff.

             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.

           EXISTING LAW  requires school districts to adopt a Local Control  
          and Accountability Plan (LCAP) on or before July 1, 2014, using  
          a template adopted by the State Board of Education.  The LCAPs  
          must:

          1)Be updated every year and renewed every three years.

          2)Be developed in consultation with teachers, principals,  
            administrators, other school personnel, parents, and pupils. 

          3)Include annual achievement goals for all pupils, including  
            specified pupil subgroups, and a description of actions that  
            will be taken to achieve those goals.

          4)Address the following eight state priorities:

             a)   Requirements related to the Williams v. State of  
               California settlement agreement related to fully  
               credentialed teachers, instructional materials, and school  
               facilities;
             b)   Implementation of academic and performance standards,  
               including English language development standards;
             c)   Parental involvement;
             d)   Pupil achievement, as measured by statewide assessments;
             e)   Pupil engagement, as measured by attendance, dropout and  
               graduation rates, and expulsions/suspensions;
             f)   School climate, as measured by suspension rates,  
               expulsion rates, and other local measures, such as surveys;
             g)   The extent to which pupils have access to and are  
               enrolled in a broad course of study; and
             h)   Pupil outcomes, if available, for non-state-assessed  
               courses of study.

          5)Be aligned with the district's budget and describe how the  
            district will "increase or improve services for unduplicated  
            pupils in proportion to its increase in funds apportioned on  
            the basis of the number and concentration of unduplicated  
            pupils in the district."








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           FISCAL EFFECT :   According to the Senate Appropriations  
          Committee:

             1)   Significant costs to LEAs which, if deemed by the  
               Commission on State Mandates to be reimbursable, will have  
               substantial aggregated costs.  The state will 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 COEs to review the  
               changes and new criteria required of the LCAPs.

             2)   Up to $500,000 in workload costs to the California  
               Department of Education (CDE) to add a ninth state priority  
               to the LCAPs and draft conforming regulations for adoption  
               by the SBE and for the SBE to adopt revised LCAP templates.

             3)   $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.

           COMMENTS  :   The LCAP requirement was established to provide for  
          accountability within the framework of the LCFF.  On January 16,  
          2014 the SBE adopted LCFF emergency regulations that include the  
          spending regulations and a template. 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 for adopting permanent regulations, which is expected to  
          be completed by the fall of 2014.  

          The emergency regulations require LEAs to describe in their LCAP  
          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 flexibility to spend  








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          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 under specified conditions.  


          According to the author's office, the regulations fall short of  
          the Legislature's intent that supplemental grant and  
          concentration factor funds be targeted to programs and services  
          for the pupils who generate them.  Therefore,  this bill  does the  
          following:


             1)   Adds reclassified EL pupils to the list of subgroups  
               whose performance must be measured by the Academic  
               Performance Index (API).

             2)   Adds compliance with regulations governing the  
               expenditure of supplemental grant and concentration factor  
               funds to the criteria used in the school district budget  
               review and approval process.

             3)   Requires, beginning with the 2015-16 fiscal year, the  
               LCAP to include a description of the expenditures for  
               implementing its specific actions and for serving specified  
               pupil subgroups, including reclassified EL pupils (existing  
               law requires a description only of the specific actions).

             4)   Requires LCAPs to address 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.

             5)   Requires the districtwide English learner parent  
               advisory committees to advise the governing board of school  
               district on (at a minimum) the establishment of goals and  
               objectives for EL pupils, the administration of the home  
               language survey, and district reclassification procedures.

             6)   Requires the SBE to adopt, by March 31, 2015, an LCAP  
               template that includes information on the instructional  
               programs and services provided to unduplicated pupils and  
               the types of English language development programs provided  
               to EL pupils and how those programs support the core  
               instructional program.








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             7)   Requires LEAs to spend unexpended Economic Impact Aid  
               (EIA) program funds only for the purposes of the EIA  
               program as authorized in statute and regulation on June 30,  
               2013.

           Arguments in support.   Supporters argue that there is a need for  
          greater visibility in order to realize the LCFF's "vision around  
          accountability and transparency" and that the ultimate success  
          of the LCFF depends on effectively balancing district  
          flexibility with accountability and transparency.

           Arguments in opposition.   Opponents argue that this bill is  
          premature and that the recently-enacted LCFF and LCAP  
          requirements should be given adequate transitional time to be  
          implemented before any changes occur, unless those changes are  
          technical.

           Related legislation.   This bill is nearly identical to SB 344  
          (Padilla), which was heard by this committee shortly after the  
          enactment of AB 97 (Committee on the Budget, Chapter 47,  
          Statutes of 2013), which implemented the LCFF and LCAP.   At the  
          time SB 344 was before this committee, it was presented as a  
          "follow up" measure to AB 97 to ensure stronger accountability  
          for EL students.  At that time, the SBE had not yet adopted the  
          implementing regulations.  SB 344 passed the Legislature, but  
          was vetoed by the governor with the following message:

               "I am returning Senate Bill 344 without my signature.   
               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."

           Regulations adopted.   The SBE held a hearing on proposed LCAP  
          regulations on November 7, 2014 during which testimony was  
          presented from a large number of stakeholders.  Both before and  
          after the November hearing, the CDE, through a contract with  
          WestED, held a number of regional meetings to obtain input on  
          the proposed regulations.  After receiving extensive input from  
          the field, and after another lengthy hearing, the SBE adopted  
          regulations on January 16, 2014.  The initial LCAPs are  








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          currently being adopted pursuant to those regulations. 

          Accordingly, while this bill is similar to last year's SB 344,  
          the context is very different.  Since the Governor's veto of SB  
          344, the CDE convened several regional meetings and the SBE held  
          two lengthy hearings to receive comments from stakeholders prior  
          to adopting regulations.  LEAs are now preparing their LCAPs  
          pursuant to those regulations.  At this time, there is no  
          evidence to support the argument that current statutory and  
          regulatory provisions fail to adequately address the needs of EL  
          pupils, because they are only now being implemented.  

           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          Bay Area Council
          Children Now
          Ed Voice
          Public Advocates
           
            Opposition 
           
          California Teachers Association

           Analysis Prepared by  :    Rick Pratt / ED. / (916) 319-2087