LEGISLATIVE SUMMARY 2001

 

I.ÊÊÊÊÊÊÊÊÊÊÊ Legislative Summary for 2001 - Political Realities in Sacramento

II.ÊÊÊÊÊÊÊÊ Major Areas of Concern for the Immediate Future

III.ÊÊÊÊÊÊ Bills During the Last Year That Directly Affect Charter Schools

III.ÊÊÊÊÊÊ Major Education Bills That Also Impact Charter Schools

IV.ÊÊÊÊÊÊ The Impending Budget Crisis

 

IÊÊÊÊÊÊÊÊÊÊÊ LEGISLATIVE SUMMARY FOR 2001

 

Another legislative session has ended. It has been every bit as difficult a session as we predicted. This message will cover some of the events and trends of the session. It will also focus on some of the very important lessons we have learned and shat we need to do between now and the end of 2002. Included at the end is a synopsis of many of the education bills addressed.

 

THE YEAR 2001 AS SEEN BY CALIFORNIA CHARTER SCHOOLS

 

The main thing that came out of 2001 is that California charter schools withstood attacks from many different sources. When the 2001 legislative session ended on September 15, the Governor had 30 days to sign or veto all pending legislation. That deadline has now passed and we have been analyzing everything that occurred during this session. We are proud to share that we defeated numerous attempts to restrict our funding or to reregulate charter schools.

 

We defeated four different attempts to eliminate funding for drop out recovery students over age 18 and other harmful provisions. These proposals were all made by the Department of Finance (ÒDOFÓ). We stopped efforts by the DOF to eliminate summer school funding for many charter school students. We must expect that these issues will return next year.

 

AB 1132 was vetoed. This bill would have extended the revenue limit part of the charter school funding model, which is now set to expire at the end of this fiscal year. We must move quickly in January to gain passage of an urgency bill that extends the charter school funding model.

 

The charter community spoke loudly, and showed a grassroots strength seldom, if ever, seen before in public education. Over five hundred individuals filled the hearing room, gallery and halls during the July 10 Assembly Education Committee hearing on SB 740. Representatives received thousands of letters of opposition from charter schools that stacked up many inches high. Even the most controversial charter school bill of the session, SB 740, does now create a groundbreaking lease aid funding program for charter schools in low performing areas.

 

While we succeeded in defeating multiple attempts at harmful legislative language, this session also saw the passage of new restrictions and requirements on charter schools beginning in January of 2002. One major segment of charter schools, those that offer instruction through independent study, will be subjected to possible funding reductions and other undefined restrictions. Instructional minutes will become a term and condition of apportionment: charter schools that offer less than the minimum minutes required will have their funding reduced. The existing requirement that charter schools participate in the STAR program has also been made a term and condition of apportionment.

 

The state is virtually out of funds for school construction. Despite attempts to do so, no agreement was reached to pass a bill this year to place a school facilities bond on the March 2002 statewide ballot. Legislation may pass next year to place a bond on the November ballot.

 

 

IIÊÊÊÊÊÊÊÊÊÊÊ MAJOR AREAS OF CONCERN FOR THE IMMEDIATE FUTURE

 

The unity of the charter school community itself has been badly strained by SB 740 and other attempts to target selected sections of our schools. SB 740 pitted the very serious needs for facilities faced by our classroom based charter schools against full funding for independent study programs operated by other charter schools. Also problematic has been the dissention among those schools that serve large number of students over the age of 18 who are facing efforts by the Department of Finance's to eliminate these students.

 

Opponents of charter schools are seeking to divide and conquer the charter school movement. CANEC and the charter school community cannot allow this to occur. CANEC remains committed to supporting the needs of all students attending charter schools.

 

As the number of charter schools continues to grow, two things are becoming more apparent. The first is the ongoing subversive efforts to make charter schools like every other school -- to rebury them in the bureaucratic morass that is a critical factor in the ineffectiveness of traditional public school system. This is especially evident any time one or a small number of charter schools engage in some activity or practices that is, or is perceived as, inappropriate or wrong. The bureaucratic response is to pass new laws or regulations that apply to all charter schools.

 

The second issue is related to the re-regulation of charter schools mentioned above. Charter schools need to become more proactive. We, as a community, must address problems, be they real or perceived, before the legislature or any administrative agencies impose their own "solutions". SB 740 is a stark example of this phenomenon. Charter schools are now subject to new restrictions and funding reductions because of concerns raised, in large part, in two newspaper articles about a single school. The challenge faced by the charter school community is to identify and address other known issues, such as educational and fiscal accountability, ourselves - in a unified manner! We need to do this before new press articles or another negative audit or scandalous report results in another rush by legislators to approve additional restrictions on charter schools.

 

An essential protection against further regulations is created when charter schools build personal relationships with their representatives and others in positions of power and influence. Each and every charter school needs to redouble its efforts to earn the support of their legislative representatives. Senators and Assembly members will not support additional regulations and restrictions on charter schools when constituents at charter schools they already know and respect tell them that these new requirements are harmful. We also must tell our story to the media and our local community. Grassroots activities are more important than ever before.

 

Charter schools must also be aware that the fiscal condition of the state next year looks very grim.Ê The state budget may be out of balance by as much as FOURTEEN BILLION dollars. Prudent financial practices and maintaining a healthy reserve are very important.

 

Even with all these challenges, I continue to be very excited about the continued development of charter schools in California. Working together we are creating an ever-increasing number of excellent charter schools.

 

David Patterson, Ed.D.

Director of Governmental Relations

patterson@canec.org

916-448-0995

 

 

III.ÊÊÊÊÊÊ BILLS DURING THE LAST YEAR THAT DIRECTLY AFFECT CHARTER SCHOOLS

 

AB 1132 (Canciamilla) - In a surprising last minute move, the Governor vetoed this bill, which would have made technical changes to the charter school funding model and extended the sunset on the charter school funding model until 2004. We had significant problems with the language in the bill regarding supplemental instruction that would have harmed charter schools that serve predominately low performing students.Ê However, it was also very important that the funding model sunset be extended. We now must aggressively move to have an urgency bill move forward to address this critical issue.

 

AB 1295 (Thomson) Ð Governor Davis signed this bill which makes changes to the Public School Accountability Act, relating to the Academic Performance Indicator (API), the Immediate Intervention/Underperforming Schools Program (II/USP), API growth targets, and performance awards. One of the significant changes for charter schools is that the bill authorizes the calculation of an API for small schools, allowing many charter schools to receive an API that were previously excluded because of their size.

 

SB 675 (Poochigian) - Signed by Governor Davis, this bill requires a charter school to transmit a copy of its annual, independent, financial audit report to the CDE, in addition to the chartering agency, by December 15 of each year.Ê The GovernorÕs signing message with regard to SB 675 stated in part: Ò . . .These reports will enable SDE [State Department of Education] to provide important and independently verified information to the State Board of Education when charter revocation is being considered and when other inquiries on charters are made by the Legislature, other state agencies, and district and county offices. . . . In addition to the entities specifically named in this legislation, I am signing this bill with the intent that subsequent legislation will include the State Controller's Office (SCO) and the county superintendent of schools in the list of recipients to the audit report, in order to more closely conform charter audit reporting requirements to those of school districts. The county superintendent needs to be aware of the fiscal health of all K-12 entities within the county and the SCO is also an appropriate recipient of the report as they are best able to determine that all applicable standards have been met. In the interim, I encourage charter schools to forward copies of their annual reports to all of these agencies.Ó

 

SB 676 (Poochigian) - This CANEC sponsored bill to create a charter schools SELPA Pilot Program is now a two-year bill. CANEC made it a two-year bill in order to allow the development of a more comprehensive bill.

 

SB 740 (O'Connell) - Governor Davis signed this bill which requires charter schools to request a determination of funding from the SBE in order to receive funding for non-classroom based instruction and allows the State Board to reduce funding to these schools it determines are not using enough of their funding in a manner the State Board determines is directly serving students. The bill also creates a lease aid funding program for charter schools in low-income areas of up to $750 per student.

 

CANEC is working on the development of proposed regulations that would implement this bill in a fair and appropriate manner.

 

Additional information about this bill is available on Legislation and Advocacy section of the CANEC web site at www.canec.org. The bill is complicated and will be difficult to implement. CANEC will provide updates as the implementation of the bill moves forward. CANEC members have already received correspondence regarding this legislation and may receive additional information over the next few months.Ê

 

In signing this bill, Governor Davis released a message that states in part:

 

"I have supported charter schools because they effectively engage parents in a child's education and are incubators for innovation in education. However, the charter school funding provisions in current law provides more funding than necessary for non-classroom based instructional methods. This bill will allow the State Board of Education to assign funding rates for non-classroom based charter school programs that are more consistent with cost-based characteristics of the instructional program employed. Furthermore, this bill will lead to greater accountability and better instructional services by encouraging classroom-based instruction among charter schools. Moreover, this bill will provide financial incentives for the development of innovative, classroom-based charter schools in low-income areas through a targeted facilities grant program, thus increasing educational choices for families in these areas.

 

"However, because I have some concern that this bill could be administered in an overly broad fashion, I am requesting that the State Board implement this bill with the following understandings.

 

"I am requesting the State Board of Education to regulate and administer the provisions of this act in a manner to affect only those charter schools which spend excessively on administration and profit. And I am also requesting the Board to:

 

ÊÊÊÊÊ Impose funding reductions only where an excessive amount of funds are not spent on instruction,

ÊÊÊÊÊ Rather than a 10% maximum reduction, impose no greater than a 5% maximum reduction in the first year,

ÊÊÊÊÊ Respect innovative instructional activities when calculating instructional time and create no new requirements regarding charter schools' use of credential teachers,

ÊÊÊÊÊ Ensure that instructional services provided by state and local conservation corps programs may continue, and

ÊÊÊÊÊ Ensure that facilities supported by this bill meet appropriate local health and safety requirements of law." Governor Davis signed the following key education proposals.

 

SB 955 - Signed by the Governor, this trailer bill makes offering the same number of minutes of instruction per year as do noncharter schools, maintaining written attendance records, and certifying that pupils participate in the state testing programs a condition of the apportionment of state funds and requires a reduction in apportionment caused by an exception to these requirements to be proportional to the magnitude of the exception that caused the reduction.

 

 

III.ÊÊÊÊÊÊÊÊÊÊÊ MAJOR EDUCATION BILLS THAT ALSO IMPACT CHARTER SCHOOLS

 

AB 6 (Cardenas) - Revises and renames the After School Learning and Safe Neighborhoods Partnerships Program to include before school programs. The Before and After School Learning and Safe Neighborhoods Partnerships (BASLSNP) program serves students in grades first through nine at participating elementary, middle, junior high schools. Matching funds are required. Priority will be given to schools based on free and reduced meal qualification and waiting lists.

 

Applicants for the after school program may be a local education agency (LEA), charter schools, city, county, or non-profit organizations that are in partnership with a LEA and must meet certain requirements to establish the program in their local school(s).

 

Participating schools are eligible to receive a three-year renewable grant that is to be awarded in three one-year increments.Ê The grant is subject to annual reporting and re-certification required by the California Department of Education (CDE).

 

AB 49 (Washington)(VETOED) - Would have established the Youth Mentoring and Safe Communities Grant Program. Grants would have been made available, by the State Librarian, to public libraries for the purpose of providing youth services such as: academic assistance and enrichment, life skills programs, technology support and training and youth mentoring and educational peer matching. Governor Davis vetoed AB 49, stating in part:

 

"Ébased on the level of funding already available to other programs that provide a wide range of services to California youth, and because the state has experienced a $1.1 billion revenue shortfall in the first three months of this fiscal year, we unfortunately cannot afford to create a new program with $400,000 of additional costs no matter how worthy."

 

AB 50 (Hertzberg)(VETOED) - In a dramatic move, Governor Davis vetoed this bill that would have extended the Schiff-Bustamante Standards Based Instructional Materials Program for another four years. Now scheduled to expire at the end of this school year, this program has provided $250 million per year to school districts to purchase standards-aligned instructional materials in the four core subject areas.

 

In vetoing AB 50, the Governor included the following comment: "Given the rapid decline of our economy and a budget shortfall of $1.1 billion through the first three months of this fiscal year alone, I have no choice but to oppose additional General Fund spending.

 

AB 75 (Steinberg) - Governor Davis signed this bill that provides intensive principal training for 5,000 school principals and vice principals per year. Specifically, the bill requires an LEA to use a "state-qualified provider to offer training that has been approved by the SBE. The bill defines an LEA as a school district, a county office of education, or a charter school. Training programs offered would have a minimum duration of 80 hours and also must provide a minimum of 80 hours of continuing support and professional development. The continuing support and development could be completed over a period of two years, once the initial training commences. This bill provides $3,000 per schoolsite administrator who attends and successfully completes the training program. In addition, the LEA would be required to provide a local match of $1,000 per schoolsite administrator. At the September SBE meeting, the CDE announced that they have received a grant from the Bill and Melinda Gates Foundation that could be used to cover some portion of the $1,000 required district match for training. The charter school community has an opportunity to develop a program that meets the needs of charter school administrators.

 

AB 99 (Zettel) - Governor Davis signed this bill that allows high schools opened after October 6, 2000 to receive a grant of a $45 per pupil for on-going technology support and professional development.

 

AB 148 (Zettel) - Governor Davis signed this bill which requires the Superintendent of Public Instruction (SPI) to conduct a study and regarding the most cost-effective means of providing Internet access in every middle and junior high school classroom in the state. The SPI is also required to report the findings of the study to the Legislature by March 1, 2003.

 

AB 272 (Pavley)(VETOED) - The Governor vetoed this bill which would have made a teacher's clear multiple or single subject teaching credential valid for the life of the holder after two renewal cycles, if the teacher met certain requirements.

 

AB 458 (Rod Pacheco) - Signed by Governor Davis, this bill prohibits school districts from assigning extra grade weighting to a pupil's grade point average for a course that covers a subject required for admission to the University of California or the California State University, unless the University of California approves the extra weighting and includes the course on its list of honors courses.

 

AB 620 (Wayne) - Signed by the Governor, this bill establishes the High-Tech Schools Grant Program to provide grants to eligible school districts or charter schools for the purpose of establishing new high-tech high schools.

 

AB 1302 (Assembly Education Committee) - Governor Davis signed this bill authorizing participating districts and charter schools to move the kindergarten admission eligibility date from December 2 to September 1.

 

AB 1307 (Goldberg) - Governor Davis signed this bill which will allow the Commission on Teacher Credentialing (CTC) to exempt teacher credential candidates from meeting new requirements for a credential that are adopted after they begin their course of professional preparation (if taking a new course would extend their time in the program or require an additional cost). In signing the bill, Governor Davis stated, "...it is my understanding and intent that this exemption is only applicable to the program of professional preparation and does not apply to other requirements of a teaching credentialing, such as those that are intended to protect the health and safety standards

 

AB 1367 (Wiggins) - Signed by Governor Davis, this bill requires school districts and local governments to share more information regarding long-term school facilities planning and local and use plans.

 

AB 1609 (Calderon) - Governor Davis signed this bill which prohibits ninth grade students from taking the High School Exit Exam (HSEE) and requires the CDE to contract for an independent study, which will examine in part whether the test development process and the implementation of standards-based instruction meet the required standards for the HSEE. The study's finding must be compiled into a report to be presented to the Governor, Legislature, State Board of Education (SBE) and Superintendent of Public Instruction no later then May 1, 2003. Additionally, with passage of this bill, the SBE may delay the date when students are required to pass the HSEE as a condition of graduation, past the 2003-04 school year.

 

SB 57 (Scott) - Signed by the Governor, this bill require the CTC to waive some requirements for individuals meeting prescribed criteria regarding private school teaching experience. These changes will offer more flexibility to candidates in obtaining their credentials, thus, effectively reducing the barriers to licensure.

 

SB 231 (Alarcon) - The Governor signed this bill which authorizes the Los Angeles Unified School District to develop, as a pilot project, a 30-day training program for teachers it hires on an emergency basis. However, upon signing, the Governor deleted the funding in the bill with the following explanation, "Unfortunately, given the rapid decline of our economy and a budget shortfall of $1.1 billion through the first three months of this fiscal year alone, I have no choice but to oppose additional General Fund spending. However, I am directing the Office of the Secretary for Education to identify existing funds that can be used to support this pilot program."

 

SB 233 - (Alpert) - Governor Davis signed this bill which extends the sunset date for the STAR test from January 1, 2001, to January 1, 2005 and lays out a roadmap for future test developments, including a goal of reducing norm-referenced items and maximizing coordination between tests to limit testing time.

 

SB 837 (Scott) - Governor Davis signed this bill which codifies the type of documentation a school district must provide the CTC to justify a request for an emergency permit. In signing SB 837, Governor Davis added, in part, "I believe it is important to the continued improvement of schools that local education agencies make a concerted effort to find a credentialed teacher, including using the teacher recruitment centers and other normal hiring practices, before hiring teachers with emergency permits. However, nothing in SB 837 should be interpreted as imposing a mandate beyond that which is currently required for a diligent search. Therefore, I am directing the Commission on Teacher Credentialing to ensure that it is implemented accordingly." signed by the Governor

 

SB 961 (Steinberg) - Governor Davis signed this bill that establishes the High Priority Schools Grant Program, a $200 million program to help low-performing schools improve student achievement. The new program is modeled significantly after II/USP, in that it requires development and implementation of a school action plan.

 

SB 1105 (Margett) - Signed by Governor Davis, this bill conforms state law regarding special education to federal special education law, thereby avoiding federal compliance issues as well as the possibility of creating new state mandated costs.

 

 

IV.ÊÊÊÊÊÊ THE IMPENDING BUDGET CRISIS

 

 

BUDGET WARNINGS FOR 2002 Ð 03

 

The Sacramento Bee reported in October that "State revenues took a dramatic plunge in September, coming in more than a half-billion dollars below what was assumed in the budget approved in July." One quarter of the way into the fiscal year, cumulative state revenues are approximately $1 billion below estimates for the three-month period.

 

In a separate article, the Bee quoted Ted Gibson, chief economist for the Department of Finance as saying "In my 30-odd years of doing this, this is probably the most uncertain period I've experienced."

 

When Governor Davis released his May Revision of the budget in May of 2001, the Legislative Analyst's Office (LAO) projected that the budget would result in a $4 billion deficit for fiscal year 2002-03. The Legislative Analyst's Office is scheduled to release a revenue forecast in November that will likely paint a picture of revenue shortfalls and an uncertain economy with many downside risks.

 

Consequently, during the Legislature's budget deliberations, Senator Steve Peace spearheaded a budget deficit reduction of $2.5 billion. Senator Peace stated on the Senate floor that he had a letter dated September 12, from the LAO that showed that the budget situation was deteriorating, and that letter, did not reflect the impact of the tragic events that took place on September 11. Even without the September 11 tragedies, the picture it describes is cause for concern.

 

 

The LAO letter identified "options" to reduce spending by $2.6 billion. Included in the list for K-12 education were:

 

ÊÊÊÊ Reduce Governor's performance awards to 2000-01 level

ÊÊÊÊ Eliminate education technology staff development

ÊÊÊÊ Reduce certificated staff performance awards by 50%

ÊÊÊÊ Reduce After School Learning and Safe Neighborhood programs funding by 25%

ÊÊÊÊ Eliminate incentive payments for National Board teacher certification

ÊÊÊÊ Combine programs and reduce funding by 10 percent for school and classroom library materials

ÊÊÊÊ Eliminate Governor's Reading Performance Awards

ÊÊÊÊ Defer 2002-03 special education settlement payment

 

But, as we said before, that was all before September 11, 2001.Ê The world after the events of September 11th is entirely different. California's economy, along with the economy of the United States, will be severely impacted. General fund revenues will likely drop below earlier estimates in part because our revenue growth is very heavily dependent on stock options and gains and the current stock market will decrease those.

 

The news is not all grim. Although there will be a budget shortage next year, it is important to recognize that the state economy is in the best shape it has been in for years. It should bounce back fairly quickly, but probably not in time to adjust for the 2002-03 budget.

 

In mid-November, the LAO will release her Fiscal Forecast. That forecast will reflect recent events and will provide more reliable estimates of the budget shortfall California faces in 2002. CANEC will send a listserv message at that time directing you to where you can obtain the LAO Fiscal Forecast.

 

If you have any questions about these bills, please contact Helen Wallquist at wallquist@canec.org or 916-448-0995. For up to date information, please regularly check www.canec.org/pendingleg