BILL ANALYSIS SENATE COMMITTEE ON EDUCATION Gloria Romero, Chair 2009-2010 Regular Session BILL NO: SB 155 AUTHOR: Wright INTRODUCED: February 12, 2009 FISCAL COMM: Yes HEARING DATE: March 18, 2009 URGENCY: No CONSULTANT:Beth Graybill SUBJECT : Assumption Program of Loans for Education: School Nurses SUMMARY: This bill expands eligibility for the Assumption Program of Loans for Education (APLE) program to individuals completing training to be a school nurse and who agree to work as a school nurse in a qualifying school or school district. BACKGROUND Current law requires a school nurse to have a valid Registered Nurse (RN) license and complete additional requirements for and possesses a School Nurse Services Credential issued by the Commission on Teacher Credentialing (CTC). The Assumption Program of Loans for Education (APLE), administered by the California Student Aid Commission (CSAC), was established in 1983 to provide loan assumption benefits to credentialed teachers. The program is designed to increase the number of teachers in disadvantaged schools or high-priority subject areas. The program "forgives" up to $11,000 of college loan debt for a person who teaches for four consecutive years in a qualifying school or subject area (paying $2,000 for the first year of teaching service and $3,000 for each of the next three years of teaching). Qualifying schools include those in the lowest two deciles of the Academic Performance Index, schools with high proportions of students from low-income families, a high percentage of emergency permit type teachers, and those located in rural areas. The subject area shortages are determined annually by the Superintendent of Public Instruction and may vary from year to year; math, science and special education have been listed consistently for many years. SB 155 Page 2 Current law (SB 63, Budget and Fiscal Review Committee, Chapter 73, Statutes of 2005) establishes the State Nurse Assumption Program for Education Loans (SNAPLE), administered by the CSAC, that provides up to $25,000 in loan assumption warrants to encourage RNs to complete graduate education and serve as nursing faculty in a nursing program at a California college or university. An additional program, the State Facilities Assumption Program for Education Loans (SF-APLE) expands the SNAPLE program to RNs who agree to work full-time in a 24-hour state facility (e.g. prison, state veteran's home, state hospital) that has an RN vacancy rate of greater than ten percent. ANALYSIS This bill : 1) Expands the APLE program to provide for the assumption of student loans for students completing training or coursework necessary to be employed as a school nurse and seek employment as a school nurse in schools serving a large population of pupils from low-income families, schools with a large percentage of teachers holding emergency-type permits, or schools ranked in the lowest two deciles on the Academic Performance Index. 2) Requires program applicants to meet the following eligibility criteria and continue to meet the criteria, as appropriate, during the payment periods. Specifically, the bill requires applicants to: a. Enroll in a program to complete training or coursework in order to be employed as a school nurse and agree to work as a school nurse in an eligible school. b. Be currently enrolled in or have been admitted to a program in which he or she will be enrolled on at least a half-time basis, and agree to maintain satisfactory academic progress as defined by the institution. c. Be judged by his or her postsecondary institution to have outstanding ability based on SB 155 Page 3 specified criteria. d. Have received or be approved to receive a loan through the Federal Family Education Loan Program or any loan program approved by CSAC. 3) Requires applicants to agree to be employed full-time for at least four consecutive academic years after obtaining the appropriate nursing credential in 1) a public elementary or secondary school or school district that at the time the school nurse is hired, is an eligible school, or 2) a public elementary or secondary school district that has at least one school in the nurse's service territory that, at the time the nurse is hired, is an eligible school. 4) Requires CSAC to commence loan assumption payments upon verification that an applicant has met requirements of the agreement and all other pertinent conditions and completed all of the following: a. The applicant has received a California preliminary or professional clear credential or an equivalent credential from another state authorizing service for kindergarten or any grades 1 to 12 inclusive. SB 155 Page 4 b. The applicant has provided full-time classroom instruction or employment as a school nurse, or the equivalent on a part-time basis, in a public elementary or secondary school for the equivalent of one school year. 5) Provides for loan assumption payments up to $11,000 to be paid as follows: a. $2,000 after the completion of one school year of employment as a school nurse. b. $3,000 after the completion of two school years of employment as a school nurse. c. $3,000 after the completion of three school years of employment as a school nurse. d. $3,000 after the completion of four school years of employment as a school nurse. 6) Specifies that participants who do not fulfill the minimum service requirement assume liability for all remaining student loan obligations and provides for the deferral of loan liability for participants who due to serious illness, pregnancy, or other natural causes are unable to complete school nurse education. STAFF COMMENTS 1) School Nurse Services Credentials . In addition to the direct medical services authorized by the Registered Nurse license, holders of School Nurse Services Credentials are authorized to provide specialized health services including conducting immunization programs, assessing and evaluating the health and developmental status of pupils, designing and implementing individual student health maintenance plans, developing and implementing health education curriculum, and interpreting medical and nursing findings appropriate to a student's individualized education program. CTC issued 274 preliminary and 47 clear school nurse services credentials in 2007-08. a. The Preliminary School Nurse Services Credential requires a valid California RN license, SB 155 Page 5 a bachelor's degree or higher, and a clear criminal history background check. Candidates do not need to complete training to be a school nurse prior to earning this credential. This credential is valid for five years and is non-renewable. b. The Clear School Nurse Services Credential requires a valid Preliminary School Nurse Services Credential, a valid California RN license, the completion of two years of successful work experience as a school nurse, and completion of a CTC-approved school nurse credential program. The Clear School Nurse Services Credential is valid for five years and is renewable. School nurse credential programs are typically one year long. Candidates admitted to these programs have an RN license and a bachelor's degree, typically a Bachelor of Science in Nursing (BSN), and hold a preliminary school nurse services credential. 2) Need for the bill . According to the California Department of Education, there were 2,829 credentialed school nurses working in public schools in 2007-08. The statewide school nurse - student ratio that year was 1:2,218, slightly under the average statewide ratio of 1:2,255 that has existed over the past decade. The sponsor of the bill contends that this ratio indicates a shortage of school nurses and notes that the ratio exceeds the American School Nurses Association recommendations of one nurse for every 750 students. Although school districts also employ Licensed Vocational Nurses (LVNs) to provide some medical services to students, these nurses are not authorized to provide the specialized services a credentialed school nurse provides. Moreover, the sponsor argues that schools need more credentialed school nurses because of the number of students who have special needs and/or chronic and acute health problems, and the growing number of students who take prescription medication during the school day. By enabling registered nurses to qualify for a loan assumption award through the APLE program, the author hopes SB 155 will encourage more nurses to complete requirements for the Clear School Nurse Services Credential and commit to serving in a qualifying public school for at least four years. SB 155 Page 6 3) School nurse shortage . There may be several reasons why there are relatively few credentialed nurses in public schools, including the overall nursing shortage, compensation disparities, district staffing priorities and employment uncertainty. Salaries for school nurses tend to be lower than salaries for nurses who work in clinical settings. For example, San Rafael City Schools recently posted an opening for an experienced school nurse with an annual salary range from $43,823 to $66,846, while nursing jobs at nearby Marin General Hospital have a salary range of $95,000 to $120,000. While this wage disparity makes it difficult for some districts to hire and retain credentialed nurses, other districts, especially those with budget constraints, may choose to hire LVNs to provide basic medical services. In addition, many veteran nurses are discouraged from making a mid-career change to become a school nurse due to current federal law which reduces Social Security benefits of workers who also have pension benefits from employment not covered by Social Security (i.e. the State's retirement system for schools, the State Teachers Retirement System). Finally, recent evidence suggests that school nurses are generally more vulnerable to layoffs than classroom teachers when districts face budget reductions. More than 100 school nurses received layoff notices in March 2008. Given these factors, it is unclear whether this bill will address the need for more school nurses. 4) Is APLE the right strategy ? Assuming some of the unmet need could be addressed through recruitment strategies, there may be non-general fund alternatives to the APLE. The Health Professions Education Foundation, funded through a $10 surcharge on each RN license renewal, provides direct scholarships or loan repayment to nurses who work in medically underserved or rural areas. Could this program be expanded to address the need for more school nurses? The APLE is a competitive teacher incentive program designed to address certain teacher shortages by encouraging students, district interns, and out-of-state teachers to teach in subject areas where a critical SB 155 Page 7 teacher shortage has been identified or in designated schools meeting specific criteria. By expanding the eligibility pool for APLE, could this bill have the effect of reducing the number of APLE awards available for teacher candidates? The SNAPLE program addresses the critical shortage of nurses who serve as faculty in nursing programs or serve in an eligible position as a registered nurse in a state-operated facility. Since SNAPLE is designed to address the nursing shortage, would it be more appropriate to expand eligibility for SNAPLE to include school nurses? As an added benefit, loan assumption awards could be shifted from the undersubscribed SNAPLE state facilities program to the school nurse program without reducing the number of APLE awards available for teacher candidates. If the Committee chooses to so amend the bill, staff recommends the following amendments: a. Move the content of the bill to Chapter 3 of Part 42 of the Education Code. b. Specify the repayment schedule utilized in APLE in order to maintain consistency with loan assumptions for teachers. c. Add an evaluation requirement and sunset date to enable the Legislature to determine the efficacy of the program as a tool for increasing the number of school nurses. 5) Prior legislation . SB 155 is similar to SB 1521 (Cedillo, 2008), which was heard by this committee and would have created a specific APLE program for school nurses. SB 1521 failed passage in committee on a 3-4 vote with reconsideration granted. 6) Technical amendments . The author's office indicates the bill is intended to assist registered nurses who are enrolling in or have enrolled in a Clear School Nurse Credential program. Staff recommends amending the bill to so clarify. In addition, staff recommends amendments that would change "assume" to "retain" on page 6, line 32 and change the word "teaching" to "service" on page 7 line 4. SB 155 Page 8 SUPPORT American Federation of State, County and Municipal Employees, AFL-CIO California School Nurses Organization (Sponsor) Union of Health Care Professionals United Nurses Associations of California OPPOSITION None received.