BILL ANALYSIS                                                                                                                                                                                                    



                                                                       


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                              UNFINISHED BUSINESS
                                        

          Bill No:  SB 1666
          Author:   Alarcon (D)
          Amended:  6/14/00
          Vote:     27 - Urgency

           
           SENATE FLOOR  :  Not relevant

           ASSEMBLY FLOOR  :  Not available
           

           SUBJECT  :    Teachers:  recruitment and incentives

           SOURCE  :     Author

           
           DIGEST  :    This bill makes numerous changes in current law  
          and creates new programs relative to the recruitment of and  
          incentives for teachers.

           Assembly Amendments  insert the provisions of SB 1505  
          (Alarcon), which passed the Senate Floor 36-1 on June 1,  
          2000.

           ANALYSIS  :    

           OVERVIEW OF MAJOR POINTS

           1.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.

                                                           CONTINUED





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          2.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. 

          3.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.

          4.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.  

          5.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. 

          6.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

          7.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). 

          8.Creates a block grant program to consolidate funding.

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

           PART 1:  STATE TEACHERS' RETIREMENT SYSTEM (STRS)

          Summary 







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          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  

          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  
          STRS is reduced on a dollar for dollar basis for all  
          earnings in excess of the 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  
           
           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.

           Comments

          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.

           LAO Recommendation  .  The Office of the Legislative Analyst  
          states:  "We recommend that the Legislature enact  







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          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."

           PART 2:  TEACHER INTERN EXPANSION (INTERN)

          Summary

           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

           Existing law establishes the alternative certification  
          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 percent of  
          the cost of operating its' local intern program.

           What Are Intern Programs  ?  Under current law, there are  
          essentially three 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,  







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                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:

          1.Have a BA degree from an accredited institution of higher  
            education.

          2.Pass the California Basic Education Skills Test (CBEST).

          3.Demonstrate subject-matter knowledge.

           Analysis

           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.

          The bill provides that funds appropriated in the Budget Act  
          for the alternative certification program may be made  
          available for the Pre-Internship Teaching Program.

           Comments

          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  







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          million annually.

           PART 3:  NATIONAL BOARD FOR PROFESSIONAL TEACHING STANDARDS  
                  CERTIFICATION INCENTIVE PROGRAM (NATIONAL BOARD)

          Summary

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

           Background

           Current law establishes NBPTS Certification Incentive  
          Program (AB 858, Davis; Chapter 331, 1998) administered by  
          the State Department of Education (SDE) in consultation  
          with 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.

          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 (1) establish high and rigorous standards for what  
          accomplished teachers should know and be able to do, (2)  
          develop and operate a national voluntary system to assess  
          and certify teachers who meet these standards, and (3)  
          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

           This section of the bill expands and makes technical  
          changes to the 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  







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             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 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 the $20,000 award be disbursed as annual  
             payments of $5,000 over a four-year period.

           4.Requires the annual payments to be made per the  
             following:

          A. Upon completion of the school year.

          B. After a school district has certified the SDE that the  
             applicant is employed by the district or a charter  
             school operating under a charter granted by that school  
             district.

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

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

           7.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.

           8.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  







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             to the state.

           9.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.

          10.Authorizes SDE to provide fee assistance from funds  
             appropriated in the Budget for the NBPTS to defray the  
             fees of teachers seeking certification.  SDE may provide  
             fee assistance of up to $1,000 for each teacher, not to  
             exceed $2 million.

           PART 4:  TEACHER RECRUITMENT AND RETENTION BLOCK GRANT

           This bill creates the Teacher Recruitment and Retention  
          Block Grant to award block grants to school districts on a  
          competitive basis to provide incentives to attract  
          credentialed teachers to be employed and retained in low  
          performing schools.

          Block grant funds may be used for teacher recruitment and  
          retention incentives with the target to reduce the number  
          of teachers on emergency permits.  Incentives may include  
          (1) signing bonuses, (2) improved work conditions. (3)  
          teacher compensation, (4) housing subsidies, and (5) a  
          longer school year.

          Funding is to be allocated to school districts on a per  
          pupil basis for pupils enrolled in schools ranked in the  
          bottom half of the API.

          School districts shall apply on behalf of their schools and  
          the application shall contain information specific to each  
          school, as specified.

          The bill requires SBE to submit an evaluation of the  
          program by January 1, 2004.

           PART 5:  TEACHER RECRUITMENT INCENTIVE PROGRAM

          Summary

           This section of the bill establishes the Teacher  







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          Recruitment Incentive Program (TRIP) to be administered by  
          the Sacramento County Office of Education (SCOE).

           Background

          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 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 four 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 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  







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            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 (1) approximately 90% of the course work  
          required in a traditional credential program, and (2) 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 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 (1) fully  
          fund the existing participants, (2) provide grants for an  
          additional 3,500 first-  and second-year beginning  
          teachers, and (3) to provide a COLA.

           Thirty-Day Substitute Permit  .  Current law provides for the  
          powers and duties of the CTC.  Pursuant to this statutory  
          authority, the CTC has adopted regulations that 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  







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          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 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

           This section of the bill establishes the TRIP to be  
          administered by the SCOE.  Specifically, this bill:

           1.Requires the Superintendent of Public Instruction (SPI)  
             to allocate funds appropriated for the purposes of this  
             program to SCOE.  The SPI may allocate up to six percent  
             of program funds to the SCOE to administer the program.

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

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

              A.     one to serve Northern California
              B.     two to serve Los Angeles
              C.     one to serve the Central Valley
              D.     one to serve Inland Empire
              E.     one to serve San Diego and Imperial

           3.Defines the following terms to mean:

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







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             B.     Recruitment Center  - an entity operated by a  
                consortium of school districts that may also include  
                county offices of education, colleges, universities,  
                or other community based organizations.

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

           5.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.

             D.    Active participation in planning and  
                implementation by school district administrators  
                responsible for certificated personnel.

           6.Requires (a) that the amount of the awards be based on  
             the number of teachers a regional center commits to  
             recruit, and (b) no more than $700 per recruited  
             teacher.

           7.Requires that the SCOE determine:

             A.    The allocation of grant awards.

             B.    Whether funds should be provided with a start-up  
                grant and then a reimbursement, or some other manner.

           8.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.








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           9.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 CTC n 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:

                 (1)       Appropriate fiscal and policy committees  
                    of the Legislature.
                 (2)       Office of the Secretary for Education
                 (3)       State Department of Finance
                 (4)       Legislative Analyst's Office
                 (5)       Commission on Teacher Credentialing

          10.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.

             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.







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             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.

          11.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.    Community based organizations

          The SCOE shall contract for an evaluation of the Teacher  
          Recruitment Incentive Program and report to the Legislature  
          by January 1, 2004.

           PART 6:  DELETE CAL GRANT T

          Summary

           These sections of the bill add a teaching requirement, as  
          specified, for recipients of a Cal Grant T award.  The bill  
          also requires the Student Aid Commission (SAC) to report,  
          annually, as specified.

           Background

          Cal Grant T  .  Chapter 336, Statutes of 1998 (SB 2064,  
          O'Connell) created the Cal Grant T program, which is  
          administered by the SAC.  This program provides a one-year  
          grant to cover the costs of tuition and fees for  







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          financially needy students attending a state-approved  
          teacher preparation program.  Because the cost of fees and  
          tuition varies among different teacher preparation  
          programs, a Cal Grant T has three different values:

          1.It's worth $1,428 to a student at CSU.
          2.It's worth  $3,429 to a student at UC.
          3.It's worth up to $9,420 to an independent college  
            student.

          The eligibility requirements for the Cal Grant T programs  
          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 percent of the 2,044 Cal Grant T recipients  
          were independent students with an average age of 30 and an  
          average income of $14,565.

           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 four years of full-time equivalent undergraduate  
          attendance.  Since 1989, however, students attending an  
          institutionally prescribed five-year undergraduate program  
          (e.g., architecture, engineering) are eligible for an  
          additional year, or a total equivalent of five years of  
          awards.  Similarly, recipients choosing to attend an  
          approved teacher preparation program are also eligible an  
          additional year, or a total of five years of awards.

           Analysis

           These sections of the bill impose a "teaching requirement"  
          on recipients of a Cal Grant T award.  Specifically, the  
          bill requires that Cal Grant T recipients teach for one  
          year in a low-performing school for each $2,000 of grant  
          award received, not to exceed a total of four years of  
          teaching.  Cal Grant T recipients who fail to meet this  
          teaching obligation would be required to repay the Cal  
          Grant T awards.








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          The bill also requires the SAC to evaluate the Cal Grant T  
          program from its inception, and to annually report  
          specified information to the Governor and the Legislature  
          beginning July 1, 2001.

           PART 7:  ASSUMPTION PROGRAMS OF LOANS FOR EDUCATION

          Summary

           These sections of the bill increase from 5,500 to 6,500 the  
          number of Assumption Program of Loans for Education (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

           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 SAC.

          The APLE program has expanded rapidly over the past three  
          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








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           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:

             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  







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                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  
            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 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).








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           Comments

          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.

           PART 8:  GOVERNOR'S TEACHING FELLOWSHIPS

          Summary

           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

           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:

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

          2.  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  







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            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

           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:

                (1)      Previous academic and employment record.

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

                (3)      Faculty and employer evaluations.

                (4)      Interviews.

                (5)      Letters of recommendation.

             B.    Establish broad and effective outreach.

             C.    Collaborate with the 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.







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          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 (three  
            members), CSU (six members), and the Association of  
            Independent Colleges (three 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.

           Comments

          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 SAC.

           Comments on Total Bill

          Five New Programs  .  This bill creates, on a permanent  
          basis, new programs, or components of programs, targeted to  
          "low-performing schools", as defined.  These are:

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

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







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

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  No

                          Fiscal Impact (in thousands)

           Major Provisions                2000-01          2001-02          
           2002-03            Fund

           Teachers:  recruitment         $0            $170,700        
          $170,000         General
          and incentives

          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  
          in 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.


          DLW:cm  6/15/00   Senate Floor Analyses 

                       SUPPORT/OPPOSITION:  NONE RECEIVED

                                ****  END  ****