BILL ANALYSIS                                                                                                                                                                                                    



                                                          SB 1 X1
                                                          Page  1

Date of Hearing:   March 17, 1999

              ASSEMBLY COMMITTEE ON APPROPRIATIONS 
                    Carole Migden, Chairwoman

         SB 1 X1 (Alpert) - As Amended: March 15, 1999 

Policy Committee:                               
EducationVote:17-2

Urgency:     Yes                  State Mandated Local  
Program:YesReimbursable:          Yes

  SUMMARY  :


  This bill  establishes the Public School Performance  
Accountability Act of 1999 through three major components: 1)  
creation of an Academic Performance Index (API) to rank all  
schools, 2) establishment of a intervention program to assist  
low-performing schools, and 3) establishment of a reward program  
for high-performing schools.  Specifically,  this bill  : 

1)Creates the API to rank all schools and measure progress, as  
  follows:

   a)   Requires the State Superintendent of Public Instruction  
     (SPI), with approval from the State Board  of Education  
     (SBE), to develop (API) by July 1, 1999. 

   b)   Specifies that test scores on statewide exams make up at  
     least 60 percent of the value of the API.

   c)   Uses the API to rank all schools.   The API includes  
     other indicators like student and teacher attendance rates  
     and graduation rates for high schools.

   d)   Establishes a minimum annual improvement rate of five  
     percent in the API from school base scores.  The SBE may  
     establish higher improvement rates when it adopts rules and  
     regulations for this legislation.

   e)   Requires the API to be disaggregated by gender,  
     ethnicity, special education status, and english language  
     proficiency.








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   f)   Requires the SPI (Beginning June 2000) to use the API to  
     measure the progress of schools and to select schools for  
     participation in the Intermediate  
     Intervention/Underperforming School Program (IIUS) or in  
     the High Achieving/Improving Schools Program (HAIS).

   g)   Specifies that the ranking applies only to districts  
     with more than 100 Average Daily Attendance (ADA).

2)   Establishes the IIUS Program to assist low-achieving  
schools, as follows:

   a)   Requires the SPI to invite schools that score below the  
     50th percentile on the Standardized Testing and Reporting  
     (STAR) test to participate in the IIUS program.

   b)   Limits participation to 430 schools, with no more than  
     86 schools from each decile (each tenth percentile) below  
     the 50th percentile.  If fewer than 430 schools volunteer,  
     the SPI may randomly select schools to fill the remaining  
     slots in each decile.  The SPI must notify schools of their  
     participation by September of each year.

   c)   Provides planning grants ranging from $25,000 to $50,000  
     to participating schools beneath the 50th percentile.

   d)   Requires the SPI, with SBE approval, to develop a list  
     of qualified external evaluators to help low-performing  
     schools develop an action plan as part of the planning  
     grant process.

   e)   Requires underperforming schools to complete an action  
     plan by April 15th in the year following their selection  
     for participation.

   f)   Authorizes participating schools to submit a request for  
     funding of up to $150 per pupil with a minimum grant of  
     $25,000 per school site to implement the school action plan  
     by June 15th.

   g)   Requires school districts to hold a public hearing if  
     its underperforming school fails to meet the minimum  
     improvement rate  after one year  of implementing the action  
     plan.








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   h)   Requires that school to continue to participate in the  
     IIUS program, if an underperforming school shows  
     significant improvement  after one year  of implementing the  
     action plan.

   i)   Requires the SPI and the SBE, along with the local  
     school board to reassign the principal, if an  
     underperforming school fails to make any improvement  after  
     two years  .  The SPI may reassign the school to a college or  
     other educational institution with approval from the SBE.   
     The SPI may not assume the management of the school.

3)Establishes the HAIS Program  to reward high-performing  
  schools with monetary and non-monetary awards for success, as  
  follows:

   a)    Requires the SPI, starting June 2000, to rank all  
     schools based on the API by grade level and type of school.  
     Starting June 2001, the rankings must also include the  
     target annual improvement for each school compared to its  
     actual improvement rate for the past year with a comparison  
     to schools with similar characteristics.

   b)   Requires the SPI, starting June 2001, to list the annual  
     improvement targets for each school.

   c)   Requires local school boards to hold annual public  
     hearings to discuss the results of the rankings.

   d)   Requires the SPI to identify all schools eligible to  
     receive monetary or non-monetary rewards.  Schools may  
     receive an award of up to $150 per pupil, subject to  
     funding in the annual budget act, or receive additional  
     flexibility from the Education Codes.

  


FISCAL EFFECT :

1)GF (Prop 98) costs of $160 million annually, beginning in FY  
  1999-00, by appropriating $63.85 million  for the IIUS  
  program, and $96.15 million for the HAIS program.









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  While funds for the HAIS program are appropriated in FY  
  1999-00 they likely will not be expended until FY 2000-01,  
  because the ranking will not be available until June 2000.

2)Federal fund costs of $32.3 million annually for the IIUS  
  program.  These funds are proposed in the governor's budget.

3)GF (non-Prop 98) costs of $3 million annually beginning in FY  
  1999-00 to the California Department of Education to collect,  
  analyze, and report data for the API, and to implement the  
  IIUS program and the HAIS program.  The bill does not specify  
  funding to cover these costs.
  
COMMENTS  :

1)    Purpose  .  This bill, along with three others, represents  
  the governor's effort in the special session to     reform the  
  public schools.  The other three bills are:

   a)   SB 2x (O'Connell), which establishes a high school exit  
     exam. This bill is before the committee today.

   b)   AB 1x (Villaraigosa), which creates the Teacher Peer  
     Review and Assistance Program.  This bill is currently in  
     the Senate.

   c)   AB 2x (Mazzoni), which establishes new reading programs  
     and staff training programs.  This bill is also currently  
     in the Senate.
  
  2)    Brief History  .  There have been several past efforts aimed  
  at initiating or creating an accountability            system  
  statewide, as follows:

    a)   Focus Schools  . SB 171 (Watson, 1992) required the SPI to  
     identify low-performing schools (or Focus Schools) and  
     appoint an external consultant to intervene in the  
     management of the school.  This statute was never  
     implemented because no funding was ever appropriated. The  
     Focus Schools statute became inoperative on July 1, 1998.

    b)   Standards  .  The SBE is in the process of setting  
     academic standards, clearly defined statements of what  
     students should be able to know and do at various grade  
     levels.  Thus far, the SBE has approved content standards  








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     for language arts, mathematics, science and social  
     science/history.  However, the SBE has not adopted  
     performance standards in any subject, which has delayed the  
     development of the curriculum frameworks necessary to set  
     guidelines for the preparation of textbooks and other  
     instructional materials, as well as direction for the  
     training of teachers to use them.

    c)   Testing  . The SBE is in the process of developing a  
     testing system that is aligned with the standards.  The  
     recent enactment and first-time administration last spring  
     of the STAR test, a nationally normed exam for determining  
     individual student performance in grades 2-11, and the soon  
     to be developed statewide matrix testing program aligned  
     with the state's new standards in grades 4, 5, 8, and 10,  
     are part of the emerging accountability program.

    d)   School Accountability Report Card  .  Under the Classroom  
     Instructional Improvement and Accountability Act  
     (Proposition 98), the governing board of each school  
     district is required to implement a school accountability  
     report card for each school in the district, to issue the  
     card annually, and to provide a copy to parents upon  
     request.  Existing law requires the school accountability  
     report card must provide data to parents to help them  
     decide at which school to enroll their children.

    e)   The 1998 Conference Committee on Public School  
     Accountability.  During the 1998 Regular Session, a number  
     of bills with varying approaches to public school  
     accountability were introduced, leading to the creation of  
     the Conference Committee on Public School Accountability.   
     Beginning in April 1998, a process began wherein workgroups  
     were created to examine the various elements of a public  
     school accountability system, drawing on the perspectives  
     of the various parties of interest and studying the  
     activities of school districts and other states that were  
     either developing or implementing their own accountability  
     systems.  Particular attention was paid to the efforts  
     underway at the time in Kentucky, Tennessee, and Texas, as  
     well as in San Diego, which was developing a system based  
     on the model utilized in Texas. What resulted was the  
     development of a two-stage process, an Immediate Short Term  
     Voluntary Program, and the Long Term Public Schools  
     Accountability System.  These proposals were amended into  








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     SB 1561 (Leslie), which became the vehicle for the work of  
     the conference committee.  SB 1561 was vetoed.

3)    Concerns

   a)   Minimum Growth Rate May Be Too High  .  The Association of  
     California School Administrators (ACSA) is concerned with  
     the ability of school districts to maintain an annual  
     growth rate of 5 percent.  ACSA performed a statistical  
     estimate based on a local school district and found that  
     more than half of the schools in that district could not  
     sustain the five percent improvement rate.  ACSA is  
     concerned that "preliminary estimates are that 66% to 100%  
     of the schools may fail to meet the standard."  ACSA and  
     the California Teachers Association (CTA) suggest deleting  
     the five-percent figure, and leaving it up to the SPI and  
     the SBE to adopt the appropriate improvement rate.
   
    b)   Additionally, CTA indicates that it opposes any  
     legislation that ranks every school in the state, because  
     such ranking may have an unintended consequence of hurting  
     morale at a school site, resulting in teachers and students  
     leaving those sites.
        
      The governor's office contends the SBE has the ability to  
     adjust the improvement rate for low-performing schools.   
     For high-achieving schools, the administration indicates  
     that the bill allows schools to choose between meeting the  
     target improvement rate or meeting the yet-to-be-adopted  
     performance standards.

    c)   Existing Data Imperfect or Nonexistent for the API.    
     Current data for the proposed API either are not precise or  
     do not exist.  The development and the requirement that  
     local school districts report such data may present a  
     logistical problem in implementing this legislation.  The  
     API is based on test scores and student and teacher  
     attendance.  Currently student attendance information is  
     based on estimates of average attendance.  Moreover, the  
     state does not currently collect data for teacher  
     attendance.  

The governor's office is aware of the lack of data, and plans to  
develop the appropriate data and the method to collect the data  
through the SPI and the SBE.  In the meantime, the API ranking  








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will likely be based solely on the results of the STAR test.






  Analysis Prepared by  :    Jai Sookprasert / APPR. / (916)  
319-2081