BILL ANALYSIS                                                                                                                                                                                                    






                         SENATE COMMITTEE ON EDUCATION
                               Dede Alpert, Chair
                           1999-2000 Regular Session
                                        

          BILL NO:       SB 1505
          AUTHOR:        Alarcon
          AS INTRODUCED: February 15, 2000
          FISCAL COMM:   Yes            HEARING DATE:  April 5, 2000
          URGENCY:       Yes            CONSULTANTS:Nancy Anton, 
                                                       Lisa R.  
                                                       Horwitch,  
                                                       Diane Kirkham,  
                                                       and Scott P.  
                                                       Plotkin

           GENERAL SUMMARY

           This bill, an urgency measure, makes numerous changes in  
          current law and creates new programs relative to the  
          recruitment of and incentives for teachers.

          Because of the extensive nature of this measure, this  
          Analysis has been divided into nine parts, with a separate  
          analysis for each part of the nine distinct components of  
          the bill.


               Part 1:  State Teachers' Retirement System (STRS)
                      (Section 2 of the bill; pages 8-10)

           SUMMARY - Part 1:  STRS  

          This section of the bill eliminates the cap on the amount  
          that a retired teacher can earn as long as the retired  
          teacher (1) provides direct instruction in grades K-12 or  
          support services in training new teachers, and (2) retired  
          before January 1, 2000.

           BACKGROUND - Part 1:  STRS  

          Current law imposes a cap on the earnings of a retired  
          teacher (currently $19,050).  Once a retired teacher earns  
          more than the cap, the teacher retirement allowance under  
          the State Teachers' Retirement System is reduced on a  
          dollar for dollar basis for all earnings in excess of the  




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          cap.  

          Beginning in 1997, the law allowed an exemption to the  
          earnings cap for teachers who return to a classroom  
          teaching as a result of programs to reduce class size.  The  
          current law exemption is limited to those teachers who  
          retired before July 1, 1998.





           ANALYSIS - Part 1:  STRS 

           This section of the bill  :

          1)   Eliminates the cap on the amount that a retired  
               teacher can earn as long as the retired teacher  
               provides direct instruction in grades K-12 or support  
               services in training new teachers, and retired before  
               January 1, 2000.

          2)   Sunsets this provision on July 1, 2005.

           STAFF COMMENTS - Part 1: STRS
           
           1)   Rationale  .  Because this proposal may entice more  
               retired teachers back into the classroom, it can be  
               viewed as one more way to help fill California's need  
               for experienced teachers.  The elimination of the  
               earnings cap is limited to those teachers that have  
               already retired and are returning to K-12 teaching or  
               specified teacher training. 

           2)   LAO Recommendation  .  The Office of the Legislative  
               Analyst states:  "We recommend that the Legislature  
               enact legislation adopting the Governor's proposal to  
               remove the statutory earnings limitations for current  
               retirees of the State Teachers' Retirement System in  
               order to induce retirees to reenter the teaching  
               workforce.  We further recommend that the Legislature  
               expand coverage of this proposal to include retirees  
               returning to employment as principals and vice  
               principals."  
           
           3)   Review by the Public Employment and Retirement (P, E &  




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               R) Committee?   This proposal is an extension of the  
               recently enacted elimination of the earnings cap for  
               those retired teachers that returned to work as a  
               result of Class Size Reduction programs.  Because the  
               basic policy issues were thoroughly reviewed in the  
               bills enacting those provisions, the P, E & R  
               Committee staff indicates that their Committee may not  
               need to hear this bill.

           4)   Applies only to teachers that have already retired  .   
               Because this bill would lift the earnings limit only  
               for teachers that have already retired, it will not  
               create an enticement for teachers to retire and  
               "double dip".  Could it nevertheless be a more  
               effective mechanism to entice teachers to stay longer  
               in the teaching profession than they otherwise would  
               if it were offered in some fashion to prospective  
               retirees?  There are at least two bills pending that  
               would address this issue is different ways:

          AB 1733 (Wildman):  Increases the earnings limit to $36,000  
               for any STRS retirees returning to work in the  
               schools.

          SB 2456 (Wright):  Establishes the Deferred Option  
               Retirement Program within the State Teachers'  
               Retirement System.

          If the Committee is interested in significantly expanding  
               this section in the bill, then the bill and/or issue  
               should be sent to the P E & R Committee.


                   Part 2:  Teacher Intern Expansion (Intern)
                        (Section 3 of the bill; page 10)

           SUMMARY - Part 2:  Intern  

          This section of the bill increases from $1,500 to $2,500  
          per intern per year, the maximum amount of state funding  
          local school districts and county offices of education  
          (COE) may receive for operating a teacher intern program.

           BACKGROUND - Part 2: Intern 

          Existing law establishes the alternative certification  




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          program, commonly known as the intern program.  Under this  
          program, the Commission on Teacher Credentialing (CTC)  
          provides incentive grants to qualifying school districts or  
          COE's that operate intern programs.

          Each school district or COE that receives a grant is  
          required to provide  matching funds  equal to 50% of the cost  
          of operating its' local intern program. 

           What are intern programs?   Under current law, there are  
          essentially 3 ways to earn a teaching credential.  These  
          are:

           1)   Traditional program  .  This type of program is offered  
               through an accredited university (public or private)  
               and is approved by the CTC.  On a full-time basis this  
               program usually takes a year.  This track is often  
               known as the "fifth-year."  Approximately 15,000  
               individuals used this route in 1997.

           2)   Alternatives (2 Types):  

                a)        University Intern Program (established in  
                    1967).   This "alternative" program, also approved  
                    by the CTC, takes between one and two years to  
                    complete.  Participants are paid during this  
                    time.  Although established by a university it is  
                    a collaborative effort between a university and a  
                    school district(s).  According to the CTC,  
                    approximately 3,700 individuals used this route  
                    in 1997.  

                b)        District Intern Program (established in  
                    1983).   This "alternative" program, which does  
                     not  require CTC approval, also takes  
                    approximately two years to complete and is  
                    established and administered by a school  
                    district.  Participants are paid as they  
                    participate in and complete a teacher preparation  
                    program including support and assessment  
                    throughout the two-year period.  According to the  
                    CTC, approximately 1,500 individuals used this  
                    route in 1997.  

          In addition to completing one of these programs, candidates  
          for a credential must also:




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          3)   Have a BA degree from an accredited institution of  
               higher education.
          4)   Pass the California Basic Education Skills Test  
               (CBEST).
          5)   Demonstrate subject-matter knowledge.

           ANALYSIS - Part 2: Intern  

          This section of the bill  increases from $1,500 to $2,500  
          per intern per year, the maximum amount of state funding  
          local school districts and COE's may receive for operating  
          a teacher intern program.

           STAFF COMMENTS - Part 2: Intern  

           1)   Cost  .  The CTC estimates that the current cost of the  
               alternative program is $11 million annually.  It is  
               further estimated that this bill would cost an  
               additional $20.8 million annually.

           2)   Quality vs. Quantity?   Tremendous focus has been given  
               to the issue of "quality" as it concerns the current  
               teaching force in California.  A recent study  
               conducted by SRI International and published by The  
               Center for The Future of Teaching and Learning states  
               that "more than 1 in every 10 classrooms in the state  
               are staffed by teachers who have not met the state's  
               minimum requirements."  This translates into 20% of  
               California schools having more than 20% underqualified  
               teachers.  

          This statistic refers not only to the number of "teachers"  
               that serve on emergency permit but  also  those that  
               serve on waiver or intern certificates. 

          There is no current evidence to support the notion that  
               alternative certification routes are a "high quality"  
               approach to producing quality teachers.  The SRI study  
               indicates that, "although internship programs might  
               train emergency teachers quite ably within a year or  
               two, for the duration of the internship, the students  
               in their classrooms are taught by someone who is  
               learning the craft as he or she goes."  The  
               alternative route provides a means by which a person  
               interested in teaching can get into the classroom  




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               quicker.  It does not, necessarily address the issue  
               of "quality."
              
          Thus, is this an effective and efficient use of resources  
               to achieve and truly impact the issue of preparing  
               "quality" teachers?  Would the
          resources be better spent providing professional  
               development or increasing strategies for the  
                traditional  certification route?  

           3)   Evaluation?   According to the study conducted by SRI  
               International, until 1997, state funding for all  
               internship programs was $2 million per year.  In 1997  
               this was increased to $4.5 million (to help facilitate  
               class size reduction), and in 1999 annual funding was  
               increased to $11 million.  In a review of California's  
               current policies, Dr. Linda Darling-Hammond, national  
               expert on teacher education, has found that "current  
               policies have also encouraged the proliferation of  
               programs and pathways that create a revolving door of  
               under-prepared teachers who enter and leave at rapid  
               rates."  Current law does not provide for an  
               evaluation of the Alternative Certification program.   
               Before the state pursues an avenue to expand an  
               alternative certification route, would it not be  
               appropriate to evaluate the impact, quality, and  
               retention of this program prior to expanding it?

           4)   Similar bill  .  This Committee heard and passed AB 309  
               (Mazzoni) on June 23, 1999.  AB 309 is similar to this  
               section of SB 1505 in that it also increases the cap  
               on state funding for the alternative certification  
               program from $1,500 to $2,500.


           Part 3: National Board for Professional Teaching Standards  
                                 Certification
                      Incentive Program (National Board) 
                  (Sections 4 - 7 of the bill; Pages 10 - 14)
           
          SUMMARY - Part 3: National Board  

          This section of the bill expands and makes technical  
          changes to the National Board for Professional Teaching  
          Standards (NBPTS) Certification Incentive Program.





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           BACKGROUND - Part 3: National Board
           
          Current law establishes the National Board for Professional  
          Teaching Standards Certification Incentive Program (AB 858,  
          Davis; Chapter 331, 1998) administered by the State  
          Department of Education (SDE) in consultation with the  
          Commission on Teacher Credentialing (CTC).  Under this  
          program, one-time $10,000 merit awards are provided to  
          teachers who (a) are employed by school districts or  
          charter schools, (b) are assigned to teach in the public  
          schools, and (c) have attained certification from the  
          NBPTS.

          The National Board for Professional Teaching Standards  
          (NBPTS) is an independent, nonprofit organization founded  
          in 1987, governed by a 63-member board of directors, the  
          majority of whom are classroom teachers.  Their mission is  
          to (a) establish high and rigorous standards for what  
          accomplished teachers should know and be able to do, (b)  
          develop and operate a national voluntary system to assess  
          and certify teachers who meet these standards, and (c)  
          advance related education reforms for the purpose of  
          improving student learning in American schools.

          Currently there are approximately 5,000 teachers,  
          nationally, who have attained NBPTS certification, of which  
          approximately 440 are California teachers.  

           ANALYSIS - Part 3: National Board  

           This section of the bill  expands and makes technical  
          changes to the National Board for Professional Teaching  
          Standards (NBPTS) Certification Incentive Program.   
          Specifically, this bill:

          1)   Requires that in addition to the existing one-time  
               award of $10,000, any
               teacher who has attained certification from NBPTS is  
          eligible to
               receive an award of up to $20,000 if he or she agrees  
          to teach at a
               low-performing school for at least four years.   
               Teaching service before July 1, 2000 may  not  be  
               counted towards satisfaction of this four-year  
               commitment.  The bill provides for both the $10,000  
               award and the $20,000 award to be made available, only  




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               to the extent funds have been appropriated in the  
               annual Budget Act.

          2)   Requires the SDE to approve applications for the above  
               mentioned awards and apportion funds to the  
               appropriate school districts pursuant to each award  
               described in #1 above.  

          3)   Requires that $20,000 award be disbursed in a single  
               lump sum, after a school district has certified the  
               applicant is employed by the district or a charter  
               school operating under a charter granted in that  
               school district. 

          4)   Amends current law from  requiring districts to make  
               every effort  to "strongly encouraging" school  
               districts to ensure that teachers are informed about  
               this program. 

          5)   Defines  Low-Performing School  to mean a school in the  
               bottom half of all schools based on the Academic  
               Performance Index rankings. 

          6)   Requires that the designation of low-performing school  
               be determined as of the date of the agreement with the  
               teacher, certified by the school district under #3  
               above.

          7)   Requires the CTC to adopt any rules and regulations it  
               deems necessary for (a) the enforcement of the  
               agreement made by the teacher to teach in a  
               low-performing school and (b) the recovery of any  
               funds it determines are owed to the state.

          8)   Authorizes the CTC to impose a civil penalty, not to  
               exceed $5,000 per year, on the recipient who is  
               determined by the CTC to have failed to fulfill his or  
               her commitment to teach in a low-performing school.







           STAFF COMMENTS - Part 3: National Board




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          1)   Costly enforcement.   As pointed out in the LAO report,  
               this program would require a recipient of a $20,000  
               award to repay the award if they fail to honor their  
               four-year teaching commitment.  The program requires  
               CTC to recover these funds, a costly and extensive  
               undertaking.  That puts CTC in the position of being  
               both a tracking agency and a collections agency.   
               Accordingly, staff recommends that any funds provided  
               be distributed  after  the service has been rendered.

           2)   Prosecutor and Judge  ? This program (page 14, lines  
               2-11) authorizes the Commission on Teacher  
               Credentialing (CTC) to impose civil penalties on  
               participants who fail to fulfill their teaching  
               obligation.   This authority, however, appears to  
               substantially depart from established legal due  
               process protections. Typically, when there is an  
               alleged breech of contract, an entity may bring an  
               action to seek civil penalties, but it is the  
               responsibility of a judge or court to determine if the  
               breech occurred and to levy penalties, if any.   
               Accordingly, staff recommends that the bill be amended  
               to authorize the CTC to  seek  civil penalties, rather  
               than to impose them.

           3)   Teacher Seniority-Is this a true incentive?   Currently  
               a teacher working in a school district advances on the  
               salary schedule through years of experience and  
               degrees earned (academic degrees).  A teacher with 7+  
               years on the salary schedule has seniority over those  
               teachers who are just beginning on the schedule.   
               Seniority typically provides for an increased salary  
               and allows a teacher to remain in a particular  
               assignment.  An NBPTS certified teacher would  
               typically be a "veteran" teachers who has seniority in  
               their district.  When a teacher transfers to a new  
               district, typically they lose "seniority."  Thus, Is  
               $20,000 truly an incentive for a veteran NBPTS  
               certified teacher to change to a low-performing school  
               where he/she may lose?  Will the $20,000 only serve to  
               keep a teacher, who changes districts, at the same  
               salary level they were at in their prior school?   
               Staff recommends that the bill be amended to provide  
               an incentive to those NBPTS teachers who transfer to a  
               low-performing school within their current district.




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           4)   Solution?   As a strategy to avoid the pitfalls  
               mentioned in #1, 2 & 3 above, it may be beneficial to  
               provide the $20,00 incentive as a block grant to the  
               district.  As a condition for the district receiving  
               such funds, it could be required that the district  
               ensure that the NBPTS certified teachers remain in  
               their district and at the low-performing school  
               assigned.  Additionally, rather than disburse the  
               funds in one-lump sum to the NBPTS teacher, the  
               district could provide $5,000 on an annual basis for  
               each of the four years the teacher remains at that  
               school.  This strategy shifts the responsibility of  
               tracking from CTC to the district and eliminates the  
               need for any agency to act as a collections agent.   
               Staff recommends the bill be amended to provide for  
               such a block grant incentive.

           5)   Why change a current "requirement?"   Current law  
               requires school districts to make every effort to  
               ensure that teachers employed by the district are  
               informed about the program and can acquire the  
               necessary application and information materials. [E.C.  
               44395 (c)]

          If the purpose of this incentive program is to truly pursue  
               NBPTS certification, it is unclear as to why the bill  
               would change this "requirement" to "strongly  
               encourage."  Staff recommends clarification.

           6)   Is this the right target and strategy?  Current law  
               provides for a $10,000 one-time bonus for teachers who  
               earn NBPTS certification.  In addition, many districts  
               across the state offer incentives for their teachers  
               to pursue and earn NBPTS certification.  For example,  
               LAUSD offers a 15% salary increase for those teachers  
               earning NBPTS certification.  Nationally, the decision  
               on how to reward NBPTS teachers has been left to the  
               local level.   Given this, it would seem appropriate  
               to allow the local level to decide how best to  
               motivate its' teachers. 


             Part 4: Teacher Recruitment Incentive Program (TRIP) 
                     (Section 8 of the bill; Pages 14 - 17)
          




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           SUMMARY - Part 4: TRIP 

          This section of the bill establishes the Teacher  
          Recruitment Incentive Program (TRIP) to be administered by  
          the Sacramento County Office of Education.

           BACKGROUND - Part 4: TRIP  

           Teacher Recruitment  .  Current law provides several avenues  
          and programs to assist in the recruitment of teachers.  The  
          most recent enactment's include:

           1)   The Teacher Recruitment Resource Centers  (AB 1303,  
               Lempert: Chapter 1142, 1992) which collect and  
               maintain information regarding programs that encourage  
               or assist military personnel, upon retirement, to  
               enter the teaching profession.

           2)   The California School Paraprofessional Teacher  
               Training Program  , initiated in 1990 (SB 1636, Roberti)  
               and most recently modified in 1997 (SB 353, Wildman),  
               is intended to encourage and recruit paraprofessional  
               employees to enroll in teacher training programs.   
               This program is administered by the Commission on  
               Teacher Credentialing (CTC).

           3)   The Science, Mathematics, and Technology Teacher  
               Pipeline Program  (AB 266, Archie-Hudson: Chapter 1271,  
               1993) a program administered by the California  
               Postsecondary Education Commission (CPEC) and modeled  
               after "Project Pipeline," a successful model that has  
               been funded since 1989 under the federal Dwight D.  
               Eisenhower Professional Development State Grant  
                 Program.  These pipeline centers have served nearly  
               6,000 students since 1995.  There are currently 4  
               centers that have received approximately  
               $30,000-40,000 in grants. These four pipeline centers  
               should not be confused with the two programs operated  
               by SCOE for Sacramento and Alameda counties.

           4)   The California Center on Teaching Careers  (SB 824,  
               Greene: Chapter 864, 1997) to recruit qualified and  
               capable individuals into the teaching profession and  
               provides an allocation through the federal Goals 2000  
               funds to the California State University (CSU) to  
               support the specified activities of the center.  This  




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               program is also known as CalTeach, currently operating  
               out of two CSU campuses, CSU Sacramento and CSU Long  
               Beach.  Note:  An evaluation of this program is  
               currently pending and due to be delivered to the  
               Legislature by March 1, 2002

           Preliminary Credential and "Clear" Credential.   In order to  
          get into the classroom more quickly, credential candidates  
          who have completed (a) approximately 90% of the course work  
          required in a traditional credential program, and (b) the  
          other basic requirements (BA, CBEST), have two choices.    
          They can either:

          1)   Receive a one-time "preliminary credential", which is  
               valid for five years. This allows the candidate (a) to  
               be hired and begin teaching even though all their  
               course work is not complete, and (b) five years to  
               finish any outstanding course work and, then, qualify  
               for a "clear" credential. 

          2)   Complete all course requirements and field experience  
               and receive a professional "clear" credential.  The  
               "clear" credential must be renewed 
          every five years, subject to 150 hours of professional  
               development to be completed prior to the renewal date.

           Teacher Retention.   Current law provides for the Beginning  
          Teacher Support and Assessment (BTSA) Program, administered  
          by the State Department of Education (SDE).  This is an  
          optional program that provides professional support for  
          first and second-year teachers who are in need of  
          assistance in preparing for the realities of classroom  
          teaching.  The Governor's Budget proposed $34.8 million for  
          BTSA in 1998-99, an increase of $16.9 million or 90%.  In  
          the current year, BTSA served 5,420 first- and second-year  
          teachers.  The Governor's 2000-01 Budget proposes an  
          additional $15.4 million for BTSA to (a) fully fund the  
          existing participants, (b) provide grants for an additional  
          3,500 first-  and second-year beginning teachers, and (c)  
          to provide a COLA.

           Thirty-Day Substitute Permit.  Current law (Education Code  
          Section 44225), provides for the powers and duties of the  
          Commission on Teacher Credentialing (CTC).  Pursuant to  
          this statutory authority, the CTC has adopted regulations  
          (Section 80025 of the California Code of Regulations) that  




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          provide for an Emergency 30-day Substitute Teaching Permit.  
           This permit allows a candidate who meets certain minimum  
          requirements to serve as a substitute in any classroom  
          (preschool through grade 12) although the individual may  
          not serve for more than 30 days for any one teacher during  
          the school year.

          The requirements for a 30-day Substitute Teaching Permit  
          include (1) have a BA from an accredited college or  
          university, (2) pass the California Basic Educational  
          Skills Test (CBEST), and (3) pass specified fingerprint  
          clearance requirements.
          Note: Current law (regulations) allows a district to  
          request a "waiver" for the requirement to have a BA, to  
          pass CBEST, or both.  In 1997-98 CTC reports that  
          approximately 1,800 30-Day Substitute credential  waivers   
          were requested.  

          The CTC issued approximately 43,000 Emergency 30-day  
          Substitute Teaching Permits in 1997-98.

           ANALYSIS - Part 4: TRIP  

           This section of the bill  establishes the Teacher  
          Recruitment Incentive Program (TRIP) to be administered by  
          the Sacramento County Office of Education.  Specifically,  
          this bill:

          1)   Requires the Superintendent of Public Instruction to  
               allocate funds appropriated for the purposes of this  
               program to the Sacramento County Office of Education  
               (SCOE).

          2)   Requires the SCOE to allocate funds for this program  
               as follows:

               a)        Award 5 competitive grants by January 1,  
                    2001 to establish regional teacher recruitment  
                    centers in the following manner:

                    i)             1 to serve Northern California
                    ii)            2 to serve Los Angeles
                    iii)           1 to serve the Central Valley
                    iv)            1 to include Inland Empire

          3)   Provides that the SCOE may do one of the following:




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               a)        Serve as the regional recruitment center for  
                    Northern California; or,
               b)        Choose to award "its grant" to another  
                    Northern California grant applicant through the  
                    competitive process. 

          4)   Defines the following terms to mean:

                a)        Low-Performing School  - a school in the  
                    bottom half of the Academic Performance Index  
                    (API) rankings.

                b)        Recruitment Center  - an entity operated by a  
                    consortium that may include school districts,  
                    county offices of education, colleges,  
                    universities, or other public education entities  
                    in the region to be served.

          5)   Requires that the SCOE establish criteria by which the  
               grants will be awarded.

          6)   Requires that the criteria include, at minimum, all of  
               the following:

               a)        A plan for collaboration among consortium  
                    members
               b)        A recruitment plan of highly effective  
                    recruitment strategies
               c)        A focus on recruiting teachers to  
                    low-performing schools, especially those with a  
                    teaching staff that has more than 20 percent  
                    emergency permit teachers.

          7)   Requires that the amount of the awards be:

               a)        Based on the number of teachers a regional  
                    center commits to recruit.
               b)        No more than $700 per recruited teacher.

          8)   Requires that the SCOE determine:

               a)        The allocation of grants awards, and
               b)        Whether funds should be provided with:

                    i)             a start-up grant and then a  




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                         reimbursement, or
                    ii)            some other manner

          9)   Provides that in the event that the number of teachers  
               needed to be recruited would result in allocation of  
               funds exceeding the available funding, requires funds  
               to be allocated to the regional centers based on a  
               proration of the number of teachers needed so as not  
               to exceed available funding.

          10)  Requires SCOE to provide oversight and technical  
               assistance for the regional centers and perform the  
               following responsibilities:

               a)        Provide advice to the CalTeach program  
                    regarding the regional media campaign for  
                    recruiting teachers.

               b)        Consult with the Commission on Teacher  
                    Credentialing (CTC) on delivering technical  
                    assistance in credentials counseling through the  
                    regional teacher recruitment centers.

               c)        Develop, publish, and distribute a guide of  
                    all available state-level incentives to attract  
                    and retain teachers.

               d)        Report teacher placement data to the  
                    following:

                    i)             Appropriate fiscal and policy  
                         committees of the Legislature
                    ii)            Office of the Secretary for  
                         Education
                    iii)           Department of Finance
                    iv)            Legislative Analyst's Office, and 
                    v)             Commission on Teacher  
                         Credentialing

          11)  Requires the regional teacher recruitment centers to  
               perform the following duties:

               a)        Employ full-time recruiters to recruit  
                    teachers and provide credential and career  
                    counseling to prospective teachers.





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               b)        Make available information on available  
                    state-funded incentives to potential teachers.

               c)        Conduct college campus and community-based  
                    information sessions on job opportunities in  
                    teaching.

               d)        Provide outreach to potential teachers using  
                    electronic, print, radio, and other forms of  
                    advertising.

               e)        Screen and distribute applications of  
                    prospective teachers to participating schools.

               f)        Schedule interviews between prospective  
                    teachers and school administrators.

               g)        Refer candidates to teacher preparation and  
                    alternative certification programs.

               h)        Coordinate with the County Office of Fiscal  
                    Crisis and Management Assistance Team (FCMAT) on  
                    the provision of technical assistance to school  
                    districts in methods to streamline the hiring  
                    process.

               i)        Report regional recruitment data to the SCOE  
                    as specified in the grant award.

          12)  Encourages the following entities participating in  
               TRIP to include in their submitted plans a financial  
               commitment to teacher recruitment:

               a)        School districts
               b)        County offices of education
               c)        Colleges
               d)        Universities
               e)        Other public education entities

           STAFF COMMENTS - Part 4: TRIP  

           1)   Is SCOE the correct administering entity?   It is  
               unclear why the Sacramento County Office of Education  
               is named as the administering entity.  It would seem  
               that to avoid any conflict of interest issues, this  
               program would be better administered by a different  




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               entity. Staff recommends clarification.  

           2)   Conflict of Interest.   In appointing the SCOE as the  
               administering entity, there appear to be several areas  
               in this section of the bill that provide for possible  
               unintended conflicts of interest:

               a)        This program provides that the SCOE be the  
                    administering agency. As part of their  
                    administering responsibilities, SCOE is charged  
                    with  "statewide oversight and technical  
                    assistance for all regional centers." The bill  
                    further provides that SCOE may serve as the  
                    Northern California regional center.  If in fact,  
                    SCOE were to decide to "self-select" and become  
                    the Northern regional center, it would then be  
                    providing "oversight" to itself?  

               b)        This program charges the administering  
                    agency, SCOE, with the task of awarding  five  
                    grants on a "  competitive  " basis.  In other words,  
                    SCOE will be the entity to make the selection  
                    from the pool of applicants for the 5 regional  
                    centers (applicants that may include SCOE).  If  
                    in fact, SCOE is one of the applicants, it would  
                    be reviewing its' own application as part of this  
                    "competitive process."  More important, if SCOE  
                    decides to "self select," is this truly a  
                    competitive process?  

               c)        This program charges the administering  
                    agency, SCOE, with the fiduciary responsibility  
                    of "determining the allocation of grant awards  
                    and whether funds should be provided with a  
                    start-up grant and then a reimbursement for  
                    teachers recruited, or some other manner."

               Again, if SCOE chooses to "self-select" (as described  
                    in #b above)  and  , SCOE is also making the  
                    determination on the allocation method, could  
                    this be seen as providing preferential treatment  
                    to this entity?  According to the language of  
                    this bill, SCOE could serve as both regional  
                    center  and administering agency.  As such it  
                    would have the fiduciary authority as well as  
                    being a benefactor/recipient of its' decision  




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                    authority.  This language does not provide for  
                    that same opportunity for the other regional  
                    centers.  Why would it not be best to allow all  
                    regional centers to decide which allocation  
                    strategy would work best for them as well?  

               Staff recommends that careful consideration be given  
               to the role that the Sacramento County Office of  
               Education will play within this program.  It does not  
               seem to make sense to allow any one entity to both  
               administer and participate in this program.  
                
          3)   Transfer authority to Superintendent of Public  
               Instruction.   The bill provides that the  
               Superintendent of Public Instruction (SPI) allocate  
               the funds appropriated for this program to SCOE.   
               Since the program already appropriates the funding  
               through the California Department of Education (CDE),  
               why not leave the administering responsibilities  
               there?  The CDE could then establish criteria, review  
               applicants and award these grants in a similar fashion  
               that they do with all requests for proposals (RFP's).   
               At minimum this would allow for an unbiased review of  
               applications and selection of five regional centers  
               truly based on a "competitive" process.  Additionally,  
               it would provide for oversight by an independent  
               entity.  Staff so recommends.

           4)   Unintended "Double Dipping?"  The bill does not  
               provide funding to administer this program.  It is  
               unclear how SCOE (as administering agency) will be  
               funded in order to achieve the numerous  
               responsibilities to which this program charges.   
               Further, if SCOE acts as  both  the "administering  
               agency"  and  the Northern California regional center,  
               will SCOE need to double dip on the funding issue?  Or  
               is it the intent of this bill that SCOE, as a regional  
               center, utilize its "regional center funds" to provide  
               the additional services as the administering agency?  
               And if they do so, will the balance of the funds-after  
               providing for administration costs-be sufficient to  
               fulfill its goals as a regional center? Staff  
               recommends clarification of the funding mechanism for  
               administering this program.

           5)   Defining "Recruitment."   In several places within this  




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               section of the bill it is not clear as to the meaning  
               of "recruit" or "recruitment."  For example, as part  
               of the regional recruitment centers duties, they are  
               required to "refer candidates to teacher preparation  
               and alternative certification programs."  Further, the  
               centers are to "screen and distribute applications of  
               prospective teachers to participating schools."  Is  
               the focus of "recruitment" to be on simply referring  
               and screening, or actual placement into programs and  
               schools?  Staff recommends defining recruitment.
           
           6)   Defining "Teachers" and Consequences for Unmet  
               Commitments?   The bill provides that:

          ?the amount of an award shall be based on the number of  
               teachers a regional teacher recruitment center commits  
               to recruit. (pg. 15, line 19)

          Nowhere in the bill does it provide for consequences if  
               this "commitment" is not met.  If funds are provided  
               to a regional center that "commits" to recruit 50  
               teachers, and it only recruits 20, will the regional  
               center be required to pay back the funds to the state  
               for the missing 30?  If so, who will be responsible  
               for collecting these funds?

          Further, this places focus back on the issue of defining  
               the term "recruitment" and also the term "teacher."   
               In this case, this portion of the bill clearly is  
               referring to the recruitment of "teachers."  Not,  
               prospective candidates for teacher programs.  Thus, is  
               this "commitment" for the actual placement of those  
               "teachers," or is there a different intent?  

          Additionally, this portion of the bill uses the term  
               "recruit teachers." Are these to be fully credentialed  
               teachers or does this program intend to include  
               interns (district and university) and other  
               alternative certification holders as part of this pool  
               of recruits? 

          Staff recommends that the language of the bill be amended  
               to provide clarification for terms mentioned and  
               consequences for unmet commitments.

           7)   Where is San Diego?   The bill provides that five  




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               regional teacher recruitment centers be established.   
               Four of these centers are to "serve" Northern  
               California, Los Angeles, and the Central Valley.   
               While one must  "include" the Inland Empire.  It is  
               unclear as to why the language would shift from  
               requiring all centers "serve" specified regions.   
               Further, it is unclear as to where San Diego would fit  
               within the regional centers listed?   Staff recommends  
               clarification on the use of terms "serve" and  
               "include" and that the bill be amended to include a  
               regional center serving San Diego County.  

           8)   Unintended burden?   The bill provides that the SCOE  
               determine the allocation of the grant award.  It also  
               stipulates that, in the event there are more teachers  
               recruited than funds available, the grant award must  
               be prorated to ensure money for each center.  The bill  
               limits funding to no more than $700 per recruited  
               teacher.  If this number is reduced by a proration,  
               will it be sufficient to conduct the business of the  
               center?  Does this put an added, unintended burden on  
               the SCOE to determine what the funding should be?   
               Would it not be better to begin with a fixed number of  
               recruits and revisit this issue on an annual basis to  
               determine whether to raise or lower that allocation?   
               Staff recommends this issue be clarified.

           9)   "Other Public Education Entities?  "  Under the  
               definition for a Regional Teacher Recruitment Center,  
               this section of the bill stipulates, "an entity  
               operated by a consortium that may include:

               a)        school districts
               b)        county offices of education
               c)        colleges 
               d)        universities
               e)        or other public education entities in the  
                    region to be served

               It is unclear as to the meaning intended for "other  
               public education entities."  Staff recommends  
               clarification.

           10)  "Encouraging Financial Commitment"-- Matching Funds?    
               The language of this bill provides that those  
               "entities participating in the Teacher Recruitment  




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               Incentive Program are encouraged to include in their  
               submitted plans a financial commitment to teacher  
               recruitment."  Currently, under The California Center  
               on Teaching Careers (SB 824, Greene: Chapter 864,  
               1997) a/k/a CalTeach, there is a requirement for  
               matching funds.  It is unclear as to whether or not  
               the intent of this


          language is to provide a similar funding model.  Staff  
               recommends clarification.

           11)  What is the intent?   It is unclear as to whether these  
               efforts are intended to
               replace activities that currently exist at the  
          district level for recruitment, or
               are they intended to supplement?  If the intent is to  
               supplement the district activities, would the  
               resources not be better spent providing districts,  
               directly, with those funds?  Or at minimum, providing  
               districts with the resources to obtain an evaluation  
               of their recruitment efforts, and strategies for being  
               more effective.  Does this just add another layer of  
               bureaucracy?  Are county offices better equipped to  
               handle the problems that currently exist at those  
               districts having recruitment issues?  Does this  
               address the real need and provide a solution to the  
               problem?

           12)  Evaluation and Sunset.   This section of the bill does  
               not provide for an
          evaluation or sunset of this program.  As noted in the  
               background section of this analysis, there are  
               currently several programs that conduct recruitment  
               strategies statewide and it is still unclear as to  
               their effectiveness and impact.  As an example,  
               current law provides for an evaluation of the CalTeach  
               program.  This evaluation, to be conducted by the CTC  
               and LAO, is due to be reported to the Legislature on  
               or before March 1, 2002.  At minimum, this evaluation  
               will begin to address some of the questions on  
               effectiveness of funds spent in the direction of  
               teacher recruitment campaigns.  It is important to  
               note that CalTeach operates on two CSU campuses, where  
               the proposed regional recruitment centers will operate  
                                                                                   statewide.  Thus a more extensive and expansive  




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               evaluation may be called for.  Staff recommends that  
               an evaluation to determine the impact and  
               effectiveness of these regional centers be added and  
               the report due to the Legislature no later than  
               January 1, 2004.  Further, staff recommends that a  
               sunset date of January 2005 be added.    


                 Part 5:  TEACHING AS A PRIORITY PROGRAM (TAP)
                     (Section 9 of the bill; Pages 17 - 19)

           SUMMARY -- Part 5:  TAP  

          This section of the bill creates the Teacher As a Priority  
          Program (TAP), administered by the Commission on Teacher  
          Credentialing (CTC), to provide incentive grants to  
          low-performing schools which replace emergency permit  
          teachers with credentialed teachers, as specified. 

           BACKGROUND -- Part 5:  TAP  

          Under current law, there are no programs which provide  
          direct incentive grants for schools, low-performing or  
          otherwise, to hire credentialed teachers in lieu of  
          emergency permit teachers. 



           ANALYSIS -- Part 5:  TAP  

           This section of the bill  :

          1)   Creates the Teacher as a Priority Program (TAP), to be  
               administered by the Commission on Teacher  
               Credentialing (CTC).

          2)   Provides that school districts and county offices of  
               education (COEs) may apply to participate in TAP on a  
               voluntary basis. 

          3)   Requires participating school districts/COEs to  
               "attain a cumulative districtwide reduction in the  
               percentage of emergency permit teachers employed"  
               during the first two years of program participation;  
               further reductions would be required over the  
               remaining three years.




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          4)   Establishes penalties for school districts/COEs which  
               fail to meet their target reduction in percentage of  
               emergency permit teachers employed.  Specifically,  
               those failing to meet their targets would have their  
               revenue limit reduced on a one-time basis by $4,000  
               for every emergency permit teacher in excess of the  
               target, not to exceed the amount of incentive received  
               for that period. 

          5)   Requires the CTC to assess a school district's  
               progress towards meeting their targets and further  
               requires the State Controller, upon certification of  
               the CTC, to reduce the first principal apportionment  
               for those district's reported by CTC as having failed  
               to meet their targets. 

          6)   Provides for a total of $4,000 in grant incentives for  
               low-performing schools within participating  
               districts/COEs, as follows: 

               a)        $2,000 for each credentialed and  
                    appropriately assigned teacher who is hired to  
                    teach in a low-performing school.  The bill  
                    requires that these funds be used by the teacher  
                    for one-time classroom expenditures.

               b)        $2,000 for each credentialed and  
                    appropriately assigned teacher
               who is hired to teach in a low-performing school who  
                    replaces an emergency permit teacher.  These  
                    funds would be provided to the school-site for a  
                    "one-time purpose to increase the school's  
                    ability to attract and retain teachers".

          7)   Provides that the grant incentives: 

               a)        May not be used for teacher compensation.

               b)        Are available to emergency permit teachers  
                    employed at an eligible site who earn a teaching  
                    credential.

               c)        Are available to a credentialed teacher who  
                    transfers from a non-low performing school to a  
                    low-performing school.




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               d)        Are not available to a credentialed teacher  
                    who transfers from one low-performing school to  
                    another low-performing school.


           STAFF COMMENTS -- Part 5:  TAP
           
           1)   Potential Inequities.  The TAP program provides $2,000  
               towards classroom materials for  new  teachers coming to  
               a site but, in so doing, overlooks those appropriately  
               credentialed teachers who are already at the site. It  
               rewards teachers who are willing to transfer to a  
               low-performing school, but ignores those teachers who  
               had already made this commitment to the local site.  A  
               classroom with a new teacher will have $2,000 in new  
               materials, but the class next door, with a second-year  
               teacher will remain unendowed.  Does this make sense?   
               Why would a veteran teacher want to remain at a  
               low-performing site and not, at a minimum, transfer  
               out to a high performing site - possibly even to later  
               return and receive the $2,000 incentive?

          Wouldn't it make more sense to provide the incentives to  
               any and all "appropriately credentialed teachers" who  
               are willing to commit to teach at a low-performing  
               school - whether or not they are new to the site?  It  
               seems the incentives should be provided not only to  
               new teachers who agree to come, but also to teachers  
               who agree to remain at the site -- somewhat like a  
               program the military provides in the form of  "Re-Up  
               Bonuses" where experienced members of the military are  
               given "signing bonuses" or other incentives if they  
               agree to re-enlist.  Staff recommends that these  
               potential inequities or options for avoiding them be  
               discussed.  

           2)   Who's Materials Are They?   Teacher's receiving the  
               $2,000 individual incentive are required to spend it  
               on their classroom.  Should the teacher transfer to  
               another site in the future, do the materials remain at  
               the site or are they the property of the teacher and  
               follow the teacher?  Staff recommends that this be  
               clarified.

           3)   Limited to Emergency Permit Teachers.   The bill  




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               provides a $2,000 schoolsite incentive for every  
               credentialed teacher who replaces an "emergency  
               permit" teacher.  The bill also allows "emergency  
               permit" teachers who become credentialed to earn the  
               $2,000 teacher grant.  However, there are other  
               non-credentialed teachers besides "emergency permit"  
               teachers who are authorized to be employed as  
               classroom teachers but have as little or even less  
               preparation than emergency permit teachers, such as  
               waiver teachers, interns, and 30-day substitutes.  It  
               does not appear to make sense to focus solely on  
               emergency permit teachers when there are other  
               non-credentialed personnel standing in for  
               credentialed teachers.   Staff recommends  that this be  
               addressed.  
           
           4)   Incentive or Consolation Prize  ?  Why $2,000?  It is  
               unclear if a one-time grant of $2,000 is a sufficient  
               amount to induce a new teacher to select or an  
               existing teacher to transfer to a low-performing  
               school.  Further, because the individual teacher  
               generating the grant has no obligation to remain at  
               the site, it is unclear if this program will simply  
               promote a revolving door whereby individuals accept a  
               grant for a one-year assignment and subsequently  
               transfer to a higher performing school.  To the extent  
               that local collective bargaining agreements promote an  
               individual teacher's right, with increasing seniority,  
               to select their work site, it is unclear what the  
               effect of this program will be or how much control a  
               district will have to retain teachers at the site.

           5)   Pilot Basis and Evaluation  .  If it is unclear what, if  
               any, the effect of this newly created and untried  
               program might be.  Given this, does it make sense to  
               establish it on a permanent basis across the state?   
               It may make more sense to test it on a "pilot basis",  
               evaluate it and then determine if it should operate on  
               a statewide basis.  At a minimum, staff recommends  
               that the program be established on a limited-term  
               basis, with a sunset date and an evaluation component  
               prior to the program becoming permanent. Also,  
               consideration should be given to pilot testing the  
               program first.

           6)   Teacher Compensation  .  The bill provides that the  




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               grant incentives may not be used for teacher  
               compensation.  It is unclear if the incentives may be  
               used for compensation of other non-teaching personnel  
               (e.g. tutors, hall monitors, classroom aides, etc.)   
                Staff recommends  that this be clarified.

           7)   Five-Year Program?   The bill requires participating  
               districts to achieve a "cumulative reduction in the  
               percentage of emergency permit teachers employed over  
               an initial two-year period" and a subsequent  
               three-year period. This implies that TAP is a  
               five-year program, but there is no further detail  
               regarding this.   Staff recommends  that this be  
               clarified.


                          Part 6: DELETE CAL GRANT T 
             (Sections 10, 11, 12 & 13 of the bill; Pages 19 - 22)

           SUMMARY -- Part 6: Cal Grant T 

          These sections of the bill eliminate the Cal Grant T  
          program.  These sections also repeal the authority for Cal  
          Grant A and Cal Grant B recipients who attend an approved  
          teacher preparation program to renew their Cal Grant award  
          for a 5th year. 

          BACKGROUND -- Part 6: Cal Grant T
           
           Cal Grant T  .  Chapter 336, Statutes of 1998 (SB 2064,  
          O'Connell) created the Cal Grant T program, which is  
          administered by the Student Aid Commission (SAC).  This  
          program provides a one-year grant to cover the costs of  
          tuition and fees for financially needy students attending a  
          state-approved teacher preparation program.  The  
          eligibility requirements for the Cal Grant T program are  
          the same as those for the Cal Grant A program.  Recipients  
          must meet specified income limitations and, so doing, are  
          then ranked by "merit" - according to their GPA.  Current  
          law provides that a minimum of 3,000 Cal Grants be awarded  
          each year.

          In 1998-99, 99% of the 2,044 Cal Grant T recipients were  
          independent students with an average age of 30 and an  
          average income of $14,565. 





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           5th-Year Cal Grant A & B  .  

          Cal Grant A and B awards are provided to financially needy  
          college students.  Under current law, these awards are  
          generally limited to a maximum of 4 years of full-time  
          equivalent undergraduate attendance.  Since 1989, however,  
          students attending an institutionally prescribed 5-year  
          undergraduate program (e.g. architecture, engineering) are  
          eligible for an additional year, or a total equivalent of 5  
          years of awards.  Similarly, recipients choosing to attend  
          an approved teacher preparation program are also eligible  
          an additional year, or a total of 5 years of awards. 

           ANALYSIS -- Part 6: Cal Grant T  

           These sections of the bill  :

          1)   Eliminate the Cal Grant T program.

          2)   Delete the authorization to extend Cal Grant A and B  
               awards for one additional year for recipients who  
               enroll in an approved teacher preparation program.

           STAFF COMMENTS -- Part 6: Cal Grant T  

           1)   Legislative Analyst's Office Findings: Retain Cal  
               Grant T  .  The Legislative Analyst has recommended in  
               their 2000-01 Budget Analysis that the Cal Grant T  
               program be continued.  Specifically, they recommend  
               that the $10 million to provide 3,000 new Cal Grant T  
               awards be restored because the program provides  
               incentives for financially needy students to pursue  
               teaching careers.  Staff Concurs.  

           2)   Related Senate Action  .  The Senate Budget Subcommittee  
               #1 has put the $10 million for the Cal Grant T program  
               on their "checklist."

           3)   Restricts Options for Financially Needy Students  .  If  
               the Cal Grant T program is eliminated, financially  
               needy students will have to exclusively rely on the  
               APLE loan assumption program, a program for which a  
               student does not directly apply but, rather, is  
               nominated by their college.  Further, because APLE  
               requires that participants work in low-income schools,  
               financially needy students seeking aid would now be  




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               restricted in choosing where they want to teach simply  
               because they are needy.  

           4)   Reducing Supply of Potential Teachers  .  When demand  
               for credentialed teachers is so great, does it make  
               sense to eliminate an incentive program for potential  
               teachers? 

           5)   Overlap  .  For the Cal Grant T recipients who are also  
               APLE participants - there is an estimated 25% overlap  
               - there is a legal commitment that the individual  
               will, in fact, teach.  Should Cal Grant T be  
               eliminated for these individuals?

           6)   Relatively New Program  .  The Cal Grant T program is  
               relatively new - it is only in its second year of  
               operation.  Participation statistics indicate that it  
               is being successful.  However, if there is concern  
               that the program is not being cost effective, wouldn't  
               it make more sense to collect data, evaluate the  
               program and, pending the results, then determine  
               whether to revise or repeal the program?  Accordingly,  
               staff recommends that the program be continued until  
               such an evaluation is conducted. 

           7)   Technical Error  .  Staff is informed that it is not the  
               intent of the bill to delete the existing  
               authorization for Cal Grant A & B recipients to extend  
               their award for a 5th year if they enroll in an  
               approved teacher preparation program.  Accordingly,  
               staff recommends that the bill be amended to restore  
               Section 69535.1(c), (page 22, line 28).


           Part 7:  Assumption Program of Loans for Education (APLE)
                  (Sections 14 - 24 of the bill, pages 23-33)

           SUMMARY - Part 7:  APLE  

          These sections of the bill increase from 5,500 to 6,500 the  
          number of APLE warrants awarded annually and otherwise make  
          a variety of changes to generally streamline and facilitate  
          the administration of the APLE program, as specified. 

           BACKGROUND - Part 7:  APLE  





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          The APLE program, established in 1983 and modified in 1985,  
          assumes loans of up to $11,000 for student who become  
          credentialed teachers and agree to teach for four years in  
          subject shortage areas, schools serving low-income pupils,  
          rural schools or schools with a high percentage of teachers  
          holding emergency permits.  The $11,000 in loan assumption  
          benefits is earned as follows:  $2,000 for the first year  
          of teaching; $3,000 for the second year; $3,000 the third  
          year and $3,000 for the fourth year.  The APLE program is  
          administered by the Student Aid Commission (SAC).

          The APLE program has expanded rapidly over the past 3  
          years, as indicated in the following chart:
                     Year             Number of APLE Warrants

                    1997-98 (and prior years)   500
                    1998-99                  4,500
                    1999-00                  5,500
                    2000-01 (proposed)       6,500

           ANALYSIS - Part 7:  APLE  

           These sections of the bill  make a variety of changes to the  
          APLE program.  Specifically, these sections of the bill:

          1)   Increase from 5,550 to 6,500 the number of $11,000  
               loan assumption warrants to be awarded annually by the  
               SAC.

          2)   Provide that students attending teacher preparation  
               programs on a half-time basis or more are eligible to  
               participate.  Current law specifies that participants  
               must be enrolled in at least "10 semester units".   
               However, because "units" is not a standardized  
               measure, "10 semester units" may equate to half-time  
               enrollment at some colleges but at other colleges, it  
               equates to a higher level of enrollment up to  
               three-quarters time.  Specifically stating "half-time"  
               would eliminate this unintended discrepancy between  
               colleges and is consistent with requirements of other  
               financial aid programs.

          3)   Delete a variety of statutory administrative  
               "set-asides" that the SAC is required to allocate in  
               distributing APLE warrants.  Those eliminated include:





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               a)        The requirement that (1) 60 percent of APLE  
                    warrants be provided to participants who agree to  
                    teach in subject shortage areas and  (2) 40  
                    percent be provided to participants who agree to  
                    teach in low-income schools.

               b)        The requirement that within the 60/40 split,  
                    a minimum of 2,000 awards be provided to  
                    applicants who agree to obtain a credential in  
                    math or science.

               c)        The requirement that within the 60/40 split  
                    cited above, beginning in 2000-01 and annually  
                    thereafter, a "proportional number of warrants"  
                    be provided to applicants who agree to teach in a  
                    rural school.

               d)        The requirement that 100 warrants be  
                    provided to applicants who agree to teach to  
                    teach in rural school districts.  Instead, the  
                    bill simply authorizes the SAC to provide up to  
                    100 of these awards.

               e)        The requirement that notwithstanding the  
                    60/40 split, beginning in 2000-01 and annually  
                    thereafter, a number of warrants as determined  
                    and funded in the annual Budget Act be provided  
                    to applicants who agree to teach in schools with  
                    a high percentage of emergency permit teachers.

               f)        The requirement that 500 warrants annually  
                    be awarded to out-of-state teachers, as  
                    specified.  Instead, the SAC would be authorized  
                    to provide awards to eligible out-of-state  
                    teachers.

               g)        The authorization for the SAC to provide 50  
                    warrants annually to the "Pipeline Project".   
                    Instead, the Pipeline Project would be allocated  
                    warrants consistent with the participating higher  
                    education institutions.

               h)        Other duplicate, conflicting and/or obsolete  
                    allocation requirements.  

          4)   Requires the SAC to expand its outreach and marketing  




                                                               SB 1505
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               strategies to inform potential candidates about APLE.   
               This portion of the bill also requires the SAC to  
               enlist the advice and support of the California Center  
               for Teaching Profession, the University of California,  
               the California State University, the Association of  
               Independent California Colleges and Universities and  
               private employers and their associations throughout  
               the state.

          5)   Revises the information the SAC is required to report  
               annually to the Legislature to include the number of  
               warrants awarded to applicants who (a) pursue a  
               credential in a subject matter shortage area and (b)  
               agree to teach in schools with a high ratio of pupils  
               from low-income families and low-performing schools.

          6)   Requires the Superintendent of Public Instruction  
               (SPI), commencing January 31, 2000 and every January  
               1, thereafter, to furnish the SAC with a list of  
               low-performing schools.  For purposes of the APLE  
               program, the bill defines low-performing schools to be  
               a school in the bottom half of the Academic  
               Performance Index (API).
           
          STAFF COMMENTS - Part 7:  APLE  

           1)   Legislative Analyst's Findings  .  In the Analysis of  
               the 2000-01 Budget Proposal, the Analyst recommends  
               that the Legislature narrow the eligibility criteria  
               so that APLE participants serve in the schools with  
               the greatest need.  Under current law, and as proposed  
               in this bill, more that 70 percent of all public  
               elementary schools qualify for an APLE recipient.

           2)   Effect  .  Overall, the changes proposed by this portion  
               of the bill generally have the positive effect of  
               simplifying and making more rational the  
               administrative process of awarding APLE warrants.

           3)   Emergency Permits  .  Several parts of the APLE statute  
               reference "emergency permit" teachers, including the  
               requirement in current law for the SPI to annually  
               provide the SAC with a list of schools with a high  
               percentage of teachers holding emergency permits.   
               Staff recommends that this term be specifically  
               defined and that the responsibility for providing this  




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               list be transferred from the SPI to the Commission on  
               Teacher Credentialing.

           4)   Retroactive Date  .  Page 29, line 9 adds a new  
               requirement for the SPI to provide an annual list of  
               low-performing schools to the SAC commencing January  
               31, 2000.  Since January 31, 2000 is already past,  
               should this date be revised?

           5)   Obsolete References  .  This portion of the bill  
               modifies an existing requirement for the SAC to  
               annually report on the number of warrants "awarded to  
               applicants" by certain types of categories.  Since the  
               bill shifts the emphasis of the program from the  
               applicant to the participant, it appears that these  
                                                                   reporting requirements should be revised to show this  
               information by the number of warrants "redeemed by  
               participants" rather than "awarded to applicants".   
               Staff recommends that this be addressed.


                    Part 8: GOVERNOR'S TEACHING FELLOWSHIPS
                     (Section 25 of the bill; Pages 33-36)
                                         
          SUMMARY - Part 8: Fellowships  

          This section of the bill creates the Governor's Teaching  
          Fellowships program.  This program would provide 1,000  
          merit-based grants of $20,000 each to graduate students  
          who, upon becoming credentialed teachers, agree to teach at  
          a low-performing school for four years.  The program would  
          be administered by the Chancellor's Office of the  
          California State University (CSU).

           BACKGROUND - Part 8: Fellowships  

          Under current state statute, there is no specific  
          merit-based award for graduate students who agree to teach  
          in a low-performing school for four years.

          However, under current law there are two different state  
          programs which provide financial assistance to needy pupils  
          who agree to become teachers.  These are:

               APLE.  Under the APLE program, 5,000 loan assumption  
               warrants of $11,000 each are provided annually to  




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               students agreeing to become credentialed teachers; 500  
               warrants are provided to out-of-state teachers.  APLE  
               recipients are required to teach for four years in  
               either a subject shortage area or a low-income school.  
                

               Cal Grants.  Under the Cal Grant T program,  
               financially needy students enrolled in a 5th year  
               approved teacher preparation program are eligible to  
               receive grant awards sufficient to cover the costs of  
               fees and tuition. Relatedly, Cal Grant A and Cal Grant  
               B undergraduate recipients are eligible to have their  
               Cal Grant award extended for a 5th year if they enroll  
               in an approved teacher preparation program. These Cal  
               Grant programs have no requirement to teach

           ANALYSIS  - Part 8: Fellowships  

           This section of the bill  establishes the Governor's  
          Teaching Fellowships program.  Specifically, this section:

          1)   Provides that (a) in January 2001, 250 awards of  
               $20,000 each and (b) annually thereafter 1,000 awards  
               of $20,000 each be provided on a merit-only basis to  
               graduate students who upon becoming credentialed,  
               agree to teach at a low-performing school, as defined,  
               for four years.

          2)   Requires the Chancellor's Office of the CSU to  
               administer the program, including:

               a)        Develop the application process and conduct  
                    the selection process, including determining the  
                    criteria, as specified, for selecting  
                    participants.  At a minimum, these selection  
                    criteria would include:

               (i) Previous academic and employment record.

               (ii) Demonstrated commitment to serve in a  
                    low-performing school.

               (iii) Faculty and employer evaluations.

               (iv) Interviews.





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               (v) Letters of recommendation.

               b)        Establish broad and effective outreach.

               c)        Collaborate with the Commission on Teacher  
                    Credentialing (CTC) to develop and implement a  
                    participant monitoring system to ensure that  
                    participants complete their four-year teaching  
                    obligation.  Participants that complete less than  
                    four-years of teaching would be required to repay  
                    $5,000 per year for each year not-taught and  
                    would be subject to specified civil penalties. 

          3)   Requires participants who complete less than  
               four-years of teaching to repay $5,000 per year for  
               each year-not-taught.  In addition, this section of  
               the bill also authorizes the CSU Chancellor to impose  
               civil penalties up to $5,000 per year-not-taught upon  
               participants who fail to teach for four years.   
               Proceeds from any penalties imposed would be deposited  
               in the General Fund.

          4)   Establishes a 12-member intersegmental review  
               committee, as specified, to recommend Fellowship  
               candidates to the CSU Chancellor's Office for  
               selection.  Members of the review committee would  
               serve four-year terms and be individually appointed,  
               as specified by UC (3 members), CSU (6 members), and  
               the Association of Independent Colleges (3 members).

          5)   Provides that the CTC determine annually if  
               participants have fulfilled their obligation to teach  
               in a low-performing school and certify such  
               information to the CSU Chancellor's office.

           STAFF COMMENTS - Part 8: Fellowships  

           1)   Legislative Analyst's Findings  .  In their Analysis of  
               the 2000-01 Budget Proposal, the Analyst recommends  
               for a variety of reasons that the Legislature convert  
               the Teaching Fellowships Program into an "augmented  
               APLE"-type program and transfer the administrative  
               responsibilities from the CSU and the CTC to the  
               Student Aid Commission.  Staff concurs. 

           2)   Up Front Money: Been There, Done That  .  Although  




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               providing a merit-based grant may be worthwhile in and  
               of itself, creating a program that provides the money  
               up-front and requires tracking participants, taking  
               collection actions and imposing civil penalties  
               results in an enormous administrative structure and  
               cost inefficiencies that challenge the very validity  
               of the basic program.  In fact, it is estimated that  
               as much as 30 percent of the funds proposed for this  
               program in the Governor's Budget will be needed to  
               cover administrative costs (typically, administrative  
               costs are limited to not more than 5 percent of a  
               program's costs.) 

          As initially established, the APLE program provided grants  
               up-front in exchange for a multi-year teaching  
               requirement.  Experience there showed the folly of  
               such a system; consequently the program was revamped  
               many years ago to its present form where participants  
               receive their funds after each year of successful  
               participation - not before. 

          Even among existing federal and state financial aid loan  
               programs, significant costs and legal expertise are  
               required to track and ultimately undertake collection  
               activities from individuals who default on their  
               commitments.  For these reasons, staff recommends that  
               the Teaching Fellowship program be restructured so  
               that the funds are not provided until the commitment  
               has been fulfilled.  In so doing, it would probably  
               make sense both administratively, and from a cost  
               effectiveness perspective, to have the Student Aid  
               Commission administer this program; the CSU  
               Chancellor's Office could still select the  
               participants.

          (Note: if the bill is amended to provide participants the  
               funds on an as-they-fulfill-their-service basis, staff  
               comments #3, 4, 5 are no longer relevant.)

           3)   CTC Tracks Participants  .  This program establishes the  
               CTC as the agency responsible for tracking  
               participants to ensure that they meet their four-year  
               teaching commitment.  Does this make sense?   CTC is  
               not set-up nor does it have data to identify and track  
               where individual credential holders are employed.   
               Giving them the ability to so do would duplicate the  




                                                               SB 1505
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               existing capabilities of other state agencies (e.g.  
               STRS and FTB.)  Perhaps it would make more sense to  
               have the State Teachers Retirement System or the  
               Franchise Tax Board provide this service, agencies  
               which are already able to track a teacher's employment  
               status.  Staff recommends that this be discussed.

           4)   Repayment?with Interest?   The program requires  
               participants who do not fulfill their teaching  
               commitment to repay $5,000 per year for each  
               year-not-taught.  It is not clear if such individuals  
               would also be required to pay interest.  Seeing as an  
               individual could have these funds for a good number of  
               years before repayment is undertaken, it may be  
               appropriate to include interest.

           5)   Prosecutor and Judge  ? This program (page 36, line 27)  
               authorizes the CSU Chancellor's office to impose civil  
               penalties on participants who fail to fulfill their  
               teaching obligation.   This authority, however,  
               appears to substantially depart from established legal  
               due process protections. Typically, when there is an  
               alleged breech of contract, an entity may bring an  
               action to seek civil penalties, but it is the  
               responsibility of a judge or court to determine if the  
               breech occurred and to levy penalties, if any.   
               Accordingly, staff recommends that the bill be amended  
               to authorize the CSU to seek civil penalties, rather  
               than to impose them.

           6)   Intersegmental Review Committee  .  This program  
               establishes a rather elaborate and, consequently  
               cumbersome committee to recommend candidates from  
               which the CSU Chancellor will ultimately select the  
               participants.  Wouldn't it make more sense to have the  
               segments which are designated to be on this review  
               committee simply send their nominations directly to  
               the CSU Chancellor?

           7)   Stacked Deck  .  The CSU Chancellor is charged with  
               selecting the participants from a pool of candidates  
               provided by the Intersegmental Review Committee.  The  
               CSU Chancellor, however, appoints half - 6 of the 12 -  
                members of this review committee.  Again, wouldn't it  
               make more sense to have each segment select its own  
               participants?




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           8)   Four-Year Terms  .  The 12 members of the Intersegmental  
               Review Committee serve for four-year terms.  Should  
               these terms be set-up on a staggered basis so that  
               there is not complete turn-over every four years?  The  
               bill provides for the members of this committee to be  
               selected from specified constituencies - e.g. k-12  
               teacher and or school administrators. Is it intended  
               that these representatives be from public schools, or  
               either public or private?

           9)   Full-time Teaching Commitment  ?  The program requires  
               participants to teach for four-years.  It is unclear  
               if this commitment can be fulfilled by teaching on a  
               less-than full-time basis.  Similarly, it is unclear  
               if students enrolled in a teacher-preparation program  
               on a less-than full-time basis are eligible to  
               participate. Staff recommends that this be clarified. 


               Part 9:  Housing Downpayment Assistance (Housing)
                     (Section 26 of the bill; pages 36-40)

           SUMMARY - Part 9:  Housing  

          This section of the bill creates the Neighborhood Teachers  
          Program, providing homebuyer housing down payment  
          assistance of up to $10,000 for teachers working in  
          low-performing schools.

           BACKGROUND - Part 9:  Housing 

          Under current law, numerous programs exist to recruit and  
          retain teachers in the public schools.  These programs  
          include grants, loans, forgivable loans, and other  
          incentives that are available both before and after  
          teachers have been trained and credentialed.

          In addition, the mission of the Department of Housing and  
          Community Development (HCD) is to help promote and expand  
          housing opportunities for all Californians.  As part of  
          this mission, the department is responsible for  
          implementing and enforcing building standards.  The  
          department also administers a variety of housing finance,  
          economic development, and rehabilitation programs.  In  
          addition, the department provides policy advice and  




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          statewide guidance on housing issues.

           ANALYSIS - Part 9:  Housing  

           This section of the bill  creates the Neighborhood Teachers  
          Program, providing homebuyer housing down payment  
          assistance of up to $10,000 for teachers working in  
          low-performing schools.  

          The Governor's Budget proposes $50 million in one-time  
          spending for the creation of the California Teachers  
          Homebuyers Assistance Program, which is presumably the same  
          program as the Neighborhood Teachers Program proposed in  
          this bill.  



          Specifically:

          1)   The bill implements the Neighborhood Teachers Program  
               to provide affordable homebuyer housing down payment  
               assistance.  The Department of Housing and Community  
               Development is to contract with the California Housing  
               Finance Agency for the administration of the program.   
               Numerous administrative details are delineated in the  
               bill.

          2)   The program is designed to address problems with the  
               recruitment and retention of teachers in  
               low-performing schools.

          3)   Teachers working in low-performing schools would be  
               eligible for a maximum $10,000 loan towards the  
               purchase of a home.

               a)        "Low-performing school" is defined as a  
                    public school in the bottom half of the Academic  
                    Performance Index (API) rankings.

               b)        Down payment assistance is in the form of a  
                    deferred-payment, low-interest subordinate  
                    mortgage loan in the second lien position in a  
                    term not to exceed the term of the first mortgage  
                    loan.

          4)   A teacher may qualify for forgiveness of the loan,  




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               provided certain conditions are met on a continuous  
               basis for  five  years:

               a)        The borrower shall continuously occupy the  
                    residence being purchased as their principal  
                    residence.

               b)        The borrower has been continuously employed  
                    as a teacher, as specified.

          5)   According to the Legislative Analyst, the California  
               Housing Finance Agency intends to spend $2.5 million  
               of the $50 million appropriation in the proposed  
               Budget Act to cover administrative costs over the  
               course of the five-year loan period.

           STAFF COMMENTS - Part 9:  Housing  

           1)   Similar program proposed by State Treasurer  .  A  
               similar program of loan forgiveness/subsidy has been  
               proposed by State Treasurer Phil Angelides and  
               approved by the California Debt Limit Allocation  
               Committee (CDLAC), effective in June 2000.  The CDLAC  
               proposal, which is now in the regulation-writing  
               phase, uses federal funds that are available for such  
               targeted home loan subsidies.  Some of the features of  
               the two approaches are the same, with some  
               differences.

                a)        Administration  .  The administration of the  
                    CDLAC program is tentatively planned for a more  
                    local focus, either through school districts or  
                    county offices of education.  This bill proposes  
                    that the 

               program proposed by the Governor be administered by  
                    the California Housing Finance Agency.

                b)        Different Definition of low performing  
                    school  .  The CDLAC proposal tentatively defines  
                    low performing school as the bottom 30% of all  
                    schools based on the most recent Academic  
                    Performance Index (API).  This bill focuses on  
                    schools scoring below the 50th percentile on the  
                    API.  Thus, by definition, half of the schools  
                    would be eligible sites for the housing  




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                    incentives in the program proposed by this bill.   
                    Both proposals may be overly broad in their  
                    definitions of low performing schools, and  
                    therefore may not be properly targeted towards  
                    the schools with the greatest demonstrated need

                c)        Eligibility beyond teachers  ?  The CDLAC  
                    proposal includes teachers, principals, and  
                    assistant principals as eligible for the housing  
                    subsidy program.  This bill restricts the program  
                    to teachers.

           2)   No local discretion in selecting participants  .  There  
               is no differentiation accounted for in the  
               participants in the program in this bill.  Any teacher  
               would be eligible for the program on a first come,  
               first serve basis.  As written, the program would not  
               distinguish between recently hired teachers purchasing  
               their first home and established veteran teachers at a  
               low performing school moving from an existing home  
               into a more expensive one.  Because local schools  
               would have no input into the selection of recipients,  
               the program would fail to target those teachers who  
               are (a) most likely to require incentives to teach for  
               a low performing school or (b) most likely to help the  
               schools meet the educational needs of their pupils.

           3)   What about renters  ?  The Legislative Analyst notes  
               that the program makes no effort to retain and recruit  
               teachers who desire to rent their home.  Since many  
               newer teachers may not be ready to make a home  
               purchase (and certainly may not have the resources or  
               eligibility to qualify for the first mortgage, anyway,  
               due to limited work experience, etc.) the program's  
               focus could miss an important segment of the  
               population.

           4)   What about recruitment of teachers in high cost areas  ?  
                There is growing evidence that many schools in  
               high-cost regions of the state also have difficulty in  
               recruiting and retaining qualified teachers because  
               they cannot afford to live in those communities.  It  
               would appear that the issue of recruitment and  
               retention, therefore, is not solely a low performing  
               school problem, and that a block grant approach to  
               granting resources to school districts to do what is  




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               best for their circumstances (within certain  
               guidelines or parameters) would be a better approach,  
               rather than a "one size fits all" methodology.

           5)   Should the bill be referred to the Senate Housing and  
               Community Development Committee  ?  It may very well be  
               that the provisions of this bill relative to the  
               homebuyer's housing down payment assistance program  
               should be further reviewed by the appropriate standing  
               committee with jurisdiction in this area.  The  
               Committee may wish to re-refer the bill to the Senate  
               Rules Committee for consideration of that possibility.

           6)   Funding  .  The Governor's Budget includes $50 million  
               to fund this program.  The Senate Budget Subcommittee  
               has heard and approved it.


           GENERAL STAFF COMMENTS ON TOTAL BILL
           
           1)   Five New Programs  .  This bill creates on a permanent  
               basis five new programs, or components of programs,  
               targeted to "low-performing schools", as defined.   
               These are:  

               a)        NBPTS.  $20,000 bonus for National Board  
                    Certified teachers who teach for four years in a  
                    low-performing school.

               b)        TRIP.  Five regional teacher recruitment  
                    centers to recruit teachers for placement in  
                    low-performing schools.

               c)        TAP.  One-time incentive grants for teachers  
                    and school sites where emergency permit teachers  
                    at a low-performing school are replaced with a  
                    credentialed teacher.

               d)        Fellowships.  One-time $20,000 fellowship  
                    grants to students who, once credentialed, commit  
                    to teach for four years in a low-performing  
                    school.

               e)        Housing Incentives.  One-time $10,000  
                    maximum housing assistance grant to purchase a  
                    home for teachers who are teaching in a  




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                    low-performing school and do so for five  
                    additional years.

           2)   Narrow the Target  ?  Current law establishes the Public  
               Schools Accountability Act-PSAA-(SB 1X, Alpert:  
               Chapter 3, 1999) providing several mechanisms and  
               programs by which California public schools are held  
               accountable for improved student achievement. The  
               Academic Performance Index (API), as part of the PSAA,  
               was designed to provide a ranking of all California  
               public schools. Approximately 6700 California public  
               schools have been ranked and divided into deciles (10  
               groupings).  There are approximately 3350 public  
               schools that fall below the 50th percentile (the 5  
               lowest groupings) on the API.  Additionally, the API  
               is utilized as a tool for identifying schools that may  
               be eligible for the Immediate Intervention/  
               Underperforming Schools Program (II/USP)-a program  
               consisting of 430 public schools who rank in the  
               lowest 5 deciles of the API.

          Each of the five programs identified in #1 above offer  
               benefits aimed at teachers in low-performing schools  
               and defines a low-performing school as "a school in  
               the bottom half of the Academic Performance Index  
               (API) rankings established pursuant to subdivision (a)  
               of Section 52056."  In short, this bill focuses on  
               schools scoring below the 50th percentile on the API.   
               Thus, by definition, half of the schools in California  
                                                   would be eligible sites for these programs.

          Is this target overly broad?  Are these programs targeted  
               towards the schools with the greatest demonstrated  
               need?  One of the best studies of teacher recruitment  
               and retention problems in low performing schools -  
               issued by the Center for the Future of Teaching and  
               Learning - concluded that serious teacher recruitment  
               problems are concentrated in approximately 20% of the  
               state's schools. Staff recommends that consideration  
               be given either to (a) targeting these programs to  
               those schools scoring in the lowest 20th percentile or  
               (b) providing differential benefits with a  
               significantly larger, or enhanced benefit going to  
               schools scoring in the 20th percentile and a lessor  
               benefit going to schools scoring in the 30th - 50th  
               percentile.




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           3)   Sunset Date/Evaluation Component  .   Each of the five  
               programs identified in #1 above, are established both  
               on a permanent basis and without any type of future  
               evaluation as to the program's effectiveness.  Staff  
               recommends that these programs be established on a  
               limited-term basis, and then sunsetted pending the  
               results of a report on their effectiveness.
           
          4)   Retention vs. Recruitment?    At a presentation for the  
               Teacher Education Summit of the California College and  
               University Presidents, Dr. Linda Darling-Hammond,  
               national expert on teacher education, provided  
               evidence that the problems in staffing California  
               schools are not the result of labor market shortages,  
               but rather an inability to attract and retain the  
               teachers it prepares to the schools and districts  
               where they are most needed.  In fact, Dr.  
               Darling-Hammond states "California actually has a  
               greater number of fully qualified teachers available  
               to teach than there are positions to be filled."  If  
               this evidence is accurate, this would dictate that a  
               focus should be on efforts to retain and not  
               necessarily to recruit teachers.  More specific,  
               should the state be looking for new strategies to  
               retain those teachers who currently are credentialed  
               (have a preliminary or professional clear credential)  
               but not, in fact, teaching? 

          In general, the proposals in this bill are targeted to  
               recruiting new teachers to low-performing school  
               sites, thereby overlooking credentialed teachers who  
               are already working at low-performing schools.  Staff  
               recommends that, where feasible, the proposals  
               contained in this bill should be revised and broadened  
               to include teachers who are already at a  
               low-performing school and are willing to commit to  
               remain for the same period as a newly recruited  
               teacher (typically four years.) 

           5)   Fully Credentialed  .  The bill interchangably uses both  
               the terms "credentialed" and  "fully credentialed".   
               It is staff's understanding that, practically  
               speaking, there is no difference between the two and  
               use of the term "fully" simply confuses practitioners  
               as they wonder what a non-fully credentialed is.   




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               Accordingly, staff recommends that the bill be amended  
               to delete the term "fully".

           6)   Funding .  Funding for the proposals contained in SB  
               1505 are provided in various parts of the Governor's  
               Budget.  Overall, the proposals in SB 1505 are  
               estimated to cost about $150 million annually. 


           SUPPORT  

          County Superintendents of Schools
          Intel Corporation

           OPPOSITION  

          None received