BILL ANALYSIS                                                                                                                                                                                                    




                    Appropriations Committee Fiscal Summary
          
                                          SB 1505  (Alarcon)
          
          Hearing Date:5/22/00            Amended:5/16/00        
          Consultant: Kathleen Chavira        Policy Vote:Education  
          8-1                      
          ____________________________________________________________ 
          ___
          BILL SUMMARY: 
          SB 1505, an urgency measure, makes numerous changes in  
          current law and creates new programs designed to recruit or  
          provide incentives to teachers.
           Eliminates the cap on earnings for teachers who retired  
            before January 1, 2000 if the teacher provides direct  
            instruction in grades K-12 or support services in  
            training new teachers.  The provision sunsets on July 1,  
            2005.
           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. 
           Increases the award available through the National Board  
            for Professional Teaching Standards (NBPTS) Certification  
            Incentive Program from $10,000 to $20,000 for teachers  
            agreeing to teach at a low-performing school for at least  
            four years.  Funding is contingent upon Annual Budget Act  
            appropriation.
           Establishes the Teacher Recruitment Incentive Program  
            (TRIP) to be administered by the Sacramento County Office  
            of Education. The program would award grants for the  
            operation of regional recruitment centers.  
           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.
           Adds a teaching requirement, as specified, for recipients  
            of a Cal Grant T award and requires the Student Aid  
            Commission to report, annually, as specified. 
           Increases from 5,500 to 6,500 the number of APLE warrants  
            awarded annually and makes a variety of changes to  
            generally streamline and facilitate the administration of  
            the APLE program
           Creates the Governor's Teaching Fellowships program which  
            would provide 250 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). 
           Creates the Neighborhood Teachers Program, which would  
            provide homebuyer housing down payment assistance of up  
            to $10,000 for teachers working in low-performing  
            schools.              
                              Fiscal Impact (in thousands)
           
          Major Provisions            2000-01            2001-02               
           2002-03              Fund
           
           STRS Admin  .                  --minor, absorbable administrative  
          costs--      General
           Alt. Cert. Program             20,800                    20,800        
                20,800           General
           NBPTS                              15,000                15,000        
                15,000                            General*
           TRIP Program               9,400              9,400                
          9,400             General*
           CTC TAP Grants           52,000             52,000             52,000  
                            General
          CSAC Cal Grant Report         -----------unknown----------     
          General
           APLE warrants             ----increased costs in subsequent years---   
            General
           CSU Fellowships
           Fellowship Awards             2,500            22,500              
          20,000            General
          CSU Admin                        1,000                    1,000       
                   1,000                          General
           Housing Assistance           50,000             50,000              
          50,000            General

          *Count toward Prop 98 minimum guarantee
          
          STAFF COMMENTS: This bill meets the criteria for the  
          SUSPENSE FILE
          
          SB1505 is the vehicle for the teacher  
          recruitment/incentives portion of the Governor's education  
          initiatives. This committee recently passed SB1330(Alpert)  
          which is similar to portions of SB1505 which amend the APLE  
          program.   APLE warrants can only be redeemed after  










          completion of school and at least one year of teaching.   
          Although the bill proposes an increased number of warrants  
          be issued in this budget year, increased costs will not be  
          realized until subsequent years.

          There is no cost impact to STRS since valuation of the  
          defined benefit program assumes that members do no work  
          beyond the earnings limit.  In addition, the established  
          retirement cut-off date of 1-1-2000 eliminates any  
          incentive for current employees to retire to take advantage  
          of the cap removal. 

          The fiscal impact for the CSU Teaching Fellowships reflects  
          the 250 to be awarded in this year, with half the funds to  
          be disbursed in 2000-2001, half in 2001-2002.  In addition,  
          beginning in 2001-2002, the number of fellowships to be  
          awarded increases to 1,000 annually.  

          STAFF NOTES: Although the Governor's proposed budget  
          provided for funding of the various provisions in the  
          bills, funding for several of the proposed programs was  
          originally deleted by the Senate Education Budget  
          Subcommittee.  These included the TRIP ($9.4 million),TAP  
          ($52 million), NBPTS ($15 million) and CSU Teaching  
          Fellowships ($3.5 million) programs.  Proposed funding has  
          since been restored in the form of a block grant without  
          programmatic assignment.