EXEGESIS OF THE CHARTER STUDENT INITIATIVE

16 November 1998

The following text in 12 pt. typeface is the wording of the initiative. The text in 11 pt. typeface is the exegesis. Green emphasis added by Jack Hickey

Red text is added by Jack Hickey, author, Hickey-Canfield Performance Voucher Initiative(H/C-PVI)

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SECTION 1. This measure shall be known and may be cited as the Charter Student Act.

SECTION 2. (a) The People of California find and declare the following:

(1) A large number of public school pupils being promoted to higher grade levels do not possess basic skills in reading, writing, and arithmetic.

(2) Many parents do not know that their children lack basic skills in reading, writing, and arithmetic because they wrongly assume that being promoted to higher grade levels and receiving passing marks on report cards guarantees a mastery of basic skills.

(3) Many parents wrongly assume that the public schools are totally responsible for ensuring the proper education of their children.

(4) Therefore, parents need an independent assessment of their children's progress in school, and they need incentives to assume more responsibility for their children's success.

We don't believe that blaming our public schools for students who are not as proficient as Japanese, Korean, Taiwanese, German, French and other nations' students is very useful. Californians always seem to be hoping that the next blueprint, system overhaul, commission recommendation, blue ribbon panel, legislative framework, or special program with a catchy acronym will "rescue" their children. In short, California's citizens, and especially its parents, seem to be waiting for an institution to lead, cajole, and rescue them from continued mediocrity and failure.

We suggest a different approach. Publicly acknowledge that the primary responsibility for a child's success in education depends upon commitment by that child's family. Teachers know this. A large body of education research supports it. How else can we explain the fact that states like Utah and North Dakota spend far less money per pupil and on average produce higher achieving students than states like California, New York, and New Jersey?

We simply propose that parents be given the tools to take on more responsibility for the education of their children. Give parents test results that clearly indicate how well their children have mastered basic academic skills compared to other students. Give parents the financial opportunity to take greater control over their children's education if they are unable to improve their children's achievement in their public school.

We propose taking the concept of the Charter School to the next level. Hold individual students and their parents accountable for results instead of focusing upon the administrators and teachers at a school. Learning cannot depend solely upon the school staff. It is a cooperative effort that also depends upon students.

SECTION 3. Article 8 (commencing with Section 100) is added to Chapter 1 of Part 1 of the Education Code, to read:

Article 8. Parent's Rights and Duties

100. Children are not mere creatures of the State. Parents and guardians have the right, coupled with the duty, to prepare their children for adulthood and additional obligations. Parents and guardians shall be presumed capable of directing the education of children under their control. The Legislature and the public school system, including the State Department of Education, the State Board of Education, school districts, and county offices of education, shall have the legal burden of proving that a parent or guardian is not capable of directing the education of children under their control. This section shall not be construed as providing parents the right to control the operations of public and private schools.

The language paraphrases parts of the landmark 1925 U.S. Supreme Court decision Pierce vs. Society of Sisters that recognized that the Constitution protected the rights of parents to direct the education of their children. This section is the public and legal acknowledgment that parents are primarily responsible for their children's education. However, if the Legislature and the education bureaucracy can impose laws and regulations that undermine the freedom of parents to exercise this responsibility, then this parental responsibility is effectively undermined. This section does not grant parents an absolute right to educate their children in any way they see fit. It simply places the burden on the State to prove parental incompetence wherever it does exist. Proving incompetence in court will require the state to focus on the outputs of a child's education instead of passing regulations that regulate the inputs of the child's school. It establishes a prima-facie assumption of parental competence, which effectively eliminates the compulsory aspect of the current system. However, it is open-ended with regard to establishment of the "appropriate" level of performance of a child at any given age. This would encourage intrusion into the family structure and preferences. Withholding of payments should be sufficient, and acceptable to parents.

We do not intend that this presumption of parental competence gives parents the right to demand that any school provide whatever parents demand for their own children. That is why we included the final sentence in this section.

SECTION 4. Part 28.5 (commencing with Section 53000) is added to the Education Code, to read:

PART 28.5. SCHOOL REFORM LAW

CHAPTER 1. GENERAL PROVISIONS

53001. This part shall be implemented no later than the beginning of the first fiscal year following 12 months after the date it is adopted by voters voting on the measure.

If the voters adopt this measure in November 2000, then the program would start on July 1, 2002. If passed in March or June 2000, then the program would start on July 1, 2001.

CHAPTER 2. GRADE LEVEL TESTING SYSTEM

53008. (a) Tests measuring the achievement in the subjects of grammar, spelling, and reading comprehension of the English language, mathematics, geography, physical sciences, and the history and civic institutions of California and the United States of America shall be administered to every public school pupil to determine whether they can be promoted to the next grade level. Any other examinations for public school students not enrolled in special education program that are supported by state funding shall be terminated if they cannot be incorporated into the grade level testing system created by this measure.

53009. If the State Board of Education cannot select grade level examinations in time for use by the implementation date specified in Section 53001, then whatever statewide test was in use during the 1999-2000 fiscal year will be used until the State Board of Education makes its selection in accordance with Section 53008.

53010. (b) Pupils who fail to pass grade level examinations shall be given the opportunity to retake the grade level examinations at regularly scheduled examination dates.

53011. The State Board of Education shall select grade level examinations and prescribe the manner in which those examinations shall be administered for the purposes of this chapter and Chapter 3. Examination dates shall be offered no fewer than every two months at convenient times and locations within the school districts.

53012. The costs of procuring, administering, and scoring all the required subjects on the grade level examinations and distributing the results of the grade level examinations and reports, described in Section 53018(d), to parents and guardians shall not exceed fifteen dollars ($15) per annual or periodic examination. This maximum amount may be annually adjusted for inflation after the implementation date.

53013. Pupils, or parents or guardians of pupils in public schools shall not be charged fees to recoup the costs of administering and processing grade level examinations.

53014. Excepting the subjects of California civics and history, the grade level examinations shall be nationally normed, and standardized by grade level.

Comparing California students to a national norm provides parents and citizens a more useful yardstick for measuring the quality of our students' achievements than simply norming against a state population.

53015. (a) There shall be two separate types of grade level examinations as follows:

(1) Periodic examinations that assess the incremental progress of pupils within each grade level during the course of the school year, culminating in an annual examination. No fewer than six periodic examinations, inclusive of the final annual examination, shall be offered during a fiscal year. Periodic Grade Level Examinations shall not be offered to students enrolled in public schools.

The periodic exams are necessary for low-income parents participating in the SAG program. These parents will want to receive installment payments throughout the school year to cover their ongoing education expenses. Because the SAG program is a COD system, money cannot be disbursed until students demonstrate their achievement by passing an examination. This requires the administration of examinations at least every two months. In the H/C-PVI, assignable Performance Voucher Certificates were issued on an annual basis. Parents and education providers could negotiate partial or full assignment of future value of these Certificates. Teacher-entrepeneurs could take such Certificates to the bank to secure up-front funding for their enterprise.

The periodic exams provide a means for determining whether a pupil is progressing through his course work at a rate where he is likely to pass the annual examination at the end of the school year. Parents who would like to get an early or ongoing evaluation of a newly selected private school.

(2) Annual examinations that assess the progress of a pupil within a grade level during the entire school year.

(b) (1) Pupils enrolled in public schools who are not enrolled in special education programs subject to the conditions described in section 53017 and who intend to be promoted to a higher grade level shall take annual Grade Level Examinations. School districts shall administer annual examinations to resident pupils.

Precocious pupils far ahead of their peers could be capable of passing 3 or more examinations per year. Because we will not pay out three years worth of scholastic achievement grants in a single fiscal year to one student, we simply require the student to wait to pass his examinations instead of lumping them together.

53017. Pupils participating in special education shall be exempt from taking the grade level examinations required by this chapter, provided that special education pupils enrolled in public schools shall be exempt only to the extent that no more than 12 percent of the total pupil enrollment in a school district shall be exempted from taking the grade level examinations.

Obviously, special education students should not be evaluated on the same basis as non-special education students. However, to prevent school district officials from exploiting this loophole, we placed a 12% cap on the number of students exempted. The statewide special education population today is under 10% of all students.

53018. (a) Grade level examinations shall be scored to measure each pupil's level of achievement and the change in the level of achievement over a period of time.

The level of achievement provides information about a pupil's standing relative to his peers. However, the best measurement for evaluating the performance of an educator is to measure the "added value" or change in the level of achievement over the school year. Parents and school administrators will probably find the second measurement more important for making decisions.

(b) If a pupil participating in the program described in Chapter 3 passed the grade level examinations, then that information shall be reported to the State Controller no later than 30 days after the pupil has completed the examination.

(c) Each pupil's scores shall be reported to the pupil's parent or guardian no later than 30 days after the pupil has completed the examination.

These deadlines are imposed to facilitate rapid payments of SAGs. Payments cannot be disbursed until the SDOE notifies the Controller that the student passed. To prevent the State government from effectively excluding low-income participation in the SAG program through dilatory tactics, this section imposes a performance requirement.

(d) A report prepared by the State Department of Education and distributed to every parent or guardian whose children took grade level examinations shall disclose the following information no later than 90 days after the pupil has completed the examination:

(1) The pupil's percentile ranking in levels of achievement relative to national norms.

(2) The pupil's percentile ranking in levels of achievement in various subjects relative to the performance of other pupils in the district.

(3) When applicable, the pupil's rate of change in levels of achievement compared to the prior grade level examination scores in various subjects.

(4) The number of full-time equivalent certificated classroom teachers and the number of full-time equivalent non-teaching employees employed by the pupil's school district.

(5) The mean annual total compensation for full-time, certificated classroom teachers employed in the public schools of the pupil's school district, including salaries, pension contributions, insurance, vacation, sick leave, and all other benefits.

(6) The average number of classroom instruction days offered by the public schools in the school district to pupils in grades 1 through 12.

(7) The average expenditure per pupil in the public schools in the pupil's school district computed by dividing the i) total annual expenditures by the school district and total annual expenditures for the benefit of the pupil's school district made by the county office of education by the ii) the average daily attendance.

(8) The pupil's scores on the grade level examinations in each subject area measured as a percentage of correctly answered test items or a weighted percentage based on the difficulty of specific questions.

All this information will not only make parents well-educated consumers of education services, it will make them educated voters so that they can get more involved in school board elections and board meetings. This report contains information that gives parents a very good grasp of where their child stands in relationship to other children his age in terms of basic skills in the core subjects.

53019. (a) A public school pupil shall not be promoted to the next grade level until that pupil receives a passing grade on an annual examination for that pupil's grade level.

This virtually guarantees that a pupil will never graduate from a public high school and not know how to read or do basic math because a pupil will have to demonstrate his grasp of the subject matter before he can be promoted. Finally, the schools and teachers will truly be accountable with this independent evaluation of their performance. No longer will students be able to be automatically passed along, nor will grade inflation ensure that low-achieving students be promoted out of a teacher's classroom.

We believe that pupils and their parents will take school more seriously if the promotion decision is not automatic. They will not be able to pester a sympathetic teacher to change an F to a D to allow the pupil to pass. Teachers will be able to give low grades that provide an accurate reflection of a pupil's achievement if they know that the pupil is likely to fail the GLE anyway.

(b) The State Superintendent of Public Instruction shall determine the passing score on grade level examinations based on scores in the various subject areas being tested. These passing scores shall be publicized in a manner that informs the public without jeopardizing the integrity and confidentiality of the Grade Level Examinations.

Setting passing scores will require a lot of discretion and experience. We believe that it is best that the ultimate responsibility for these decisions be placed in the hands of someone who is accountable to the electorate in case she should set unreasonably low passing scores that subvert the intent of the program.

(c) Notwithstanding subdivision (a), the governing board of a school district may, at its discretion, promote pupils, numbering no more than 1 percent of the school district's average daily attendance per year, who failed to receive a passing score on a grade level examination if the governing board believes those pupils have otherwise demonstrated a mastery of the required subject matters and therefore merit a promotion.

We recognize that there will be legitimate cases where a pupil should be passed in spite of their examination score. The recalcitrant who intentionally fails the exam or the test-phobia nervous types who can't keep down their last meal whenever they sit down for a test. Again it is important to set a cap on this loophole so that it cannot be exploited.

53020. (a) The questions on the grade level examinations shall have a corresponding set of answers against which pupils' responses can be compared.

(b) The grade level examinations shall not contain questions that elicit the personal opinions of pupils or ask pupils to reveal private information relating to themselves, family members, or friends.

(c) Evaluation of the answers to questions on the grade level examinations shall be made with respect to information the pupil is expected to master or conclusions reached by the pupil based upon information presented to the pupil in the narrative of examination questions.

This section protects against the abuses of the CLAS and other "outcome based education" exams. This section prohibits arbitrary grading of questions to protect pupils and parents against abuses. We want to engender a higher degree of public confidence in the scoring system and avoid the controversies that have plagued OBE programs.

53021. (a) All grade level examination results shall be confidential and shall only be released to the pupil's parents or guardians by the State Department of Education, unless the parent or guardian, or the pupil who is 18 years or older, authorizes the State Department of Education to release the examination results. If the pupil is enrolled in public school, the State Department of Education shall notify the pupil's school whether that pupil passed or failed to pass the Grade Level Examinations.

Notice that the pupil's school and teachers will not receive the examination results, other than knowing whether or not the student received a passing score. This will prevent teachers and schools from using these test results to stigmatize or track students. The GLE primarily exists for the benefit of parents to allow them to make informed decisions about their own children. Maintaining this privacy will enhance parental support and acceptance of this program.

(b) The State Department of Education, State Controller, and any private parties participating in the distribution, design, and scoring of grade level examinations shall destroy any information linking a pupil's name to that pupil's grade level examination scores after that pupil graduates from grade 12 or reaches the age of 19.

This does not mean that the scores are destroyed. It only means that any record connecting a particular individual to that score is destroyed. That way we protect pupils' privacy without hindering the ability of the SDOE to use the data for long-term research.

(c) Only the State Department of Education may release grade level examination results

This insulates testing companies from the public, and it makes it easier for them to institute security procedures to prevent pupil scores from being improperly disclosed. The SDOE will be responsible for handling public inquiries.

(d) The State Department of Education shall produce reports of aggregate data on public school pupil and non-public school pupil performance on the grade level examinations in the various subjects. The State Department of Education shall also produce reports of public school pupil performance at the school district level and the school level. These reports shall be made available to the public.

Using aggregate data allows test results to be used for evaluating districts, schools, and even teachers without compromising the privacy of pupils.

53022. Any person who disseminates grade level examination questions to unauthorized persons, who aids pupils taking the examinations in violation of testing procedures, or who alters or tampers with examination answers or the processing of test results shall be barred from receiving any money for contracts or employment from state or local government or school districts for a period of no less than 12 months.

There is a lot riding on the GLE so many people will be tempted to cheat. There will have to be significant security measures associated with the development, distribution, and administration of the GLE to preserve its integrity and usefulness. We believe that this severe, non-criminal penalty will be sufficient deterrent to prevent widespread violations.

53023. The State Superintendent of Public Instruction shall solicit organizations representing various businesses and industries to determine the scores on grade level examinations in various subject areas they believe demonstrate the minimum achievement levels necessary for entry level positions with their members. In addition, these organizations may report other skills that are important to obtain that are not covered on the examinations or that are not taught in the public schools. The State Department of Education shall publish and distribute a report of these findings to every public high school and public library.

Pupils and parents should know what potential employers expect. This report should make a pupil's current efforts in school more relevant. This is one venue where businesses can express their expectations from schools in a cogent, objective fashion. Hopefully, educators will be reading this report and make appropriate changes in their curriculum.

CHAPTER 3. SCHOLASTIC ACHIEVEMENT GRANT PROGRAM

Article 1. Establishment of Scholastic Achievement Grant Program

53040. Parents or guardians of a pupil residing in one of the participating school districts who do not choose to send that pupil to a public school may receive a scholastic achievement grant from the state under two conditions: 1) their child receives a passing score on the appropriate grade level examinations; 2) their child's passing scores represent an improvement over their child's scores on prior grade level examinations

Good!

This section establishes a contractual relationship between the state and the parents. The state enforces compulsory education laws and it operates public schools at public expense to provide parents one option to comply with these laws. The SAG program simply provides parents another option for fulfilling this obligation at public expense in conformity with the academic standards of public schools.

Because this measure ends social promotion, if a parent is frustrated with their child's performance at a public school, they should have a safety valve, an alternative to explore. If we shift responsibility to parents and provide no financial capacity for these parents to exercise choice, then their responsibility and freedom is a chimera. Poor parents would essentially be locked into the public schools assigned by their school district, and statements about freedom and responsibility would be a cruel hoax.

Taxpayers have the right to expect accountability for the conditions under which SAGs are awarded. This program establishes the strictest form of accountability. It is a COD, pay for performance system. Performance first, payment later. Pupils have to first demonstrate that they have met or exceeded the standards set by the Superintendent for grade level promotion in the public schools. Only then are parents paid. I suggest that alternative testing methods be made available from which parents may choose. Excerpt from H/C-PVI

Sec.4 TESTING

a. For the purpose of determining performance, the Department, beginning June 30, 1981 and annually thereafter, shall specify from norm-referenced tests in use, those five tests most frequently used nationally in the preceding twelve month period, providing that such usage of any one test shall comprise at least 2% of the total for all five.

b. The Department may additionally provide for local test variations.

c. Provision shall be made on Certificates for selection from the above tests, by the student or their legal guardian, that to be used in testing each student.

In contrast, public school employees receive compensation regardless of the performance of their pupils. In effect, the State Department of Education (SDOE) has more control over the parents and pupils participating in the SAG program than it has over teachers and pupils in public schools. Parents and pupils participating in the SAG program are far more accountable to the taxpayers than teachers and pupils in public schools.

53041. (a) Scholastic achievement grants shall only be paid for the percentage of the scholastic achievement grant reimbursement period during which the pupil was not enrolled in a public school. The scholastic achievement grant reimbursement period is the interval of time for which a pupil's achievement is being measured by a grade level examination.

Suppose a pupil left his public school in December, enrolled in the SAG program in January, and took the annual examination in June. The parents of that pupil would be eligible to receive a grant for half a year's school work because that pupil was enrolled in a public school at public expense during the other half of the year. Instead of a $3,000 grant, the parents would receive a $1,500 grant.

(b) Parents or guardians of pupils taking a grade level examination for the purposes of this chapter shall not be charged fees to recoup the costs of administering and processing the grade level examination, except if the pupil has previously failed that grade level examination on two or more occasions.

53042. Sections 53011, 53012, 53013, 53014, 53016, and 53018, subdivision (b) of Section 53019, and Sections 53020, 53021, and 53022, which pertain to the administration of grade level examinations in the public schools, shall also be applicable to the grade level examinations administered under this chapter.

53043. (a) Special education pupils shall not be required to take a grade level examination in order to receive scholastic achievement grants.

(b) Parents or guardians of pupils participating in special education who have an individual education plan approved by their school district shall be eligible to receive scholastic achievement grants upon certification of satisfactory progress by a panel of experts. Periodic certification shall be offered no less than every two months.

53044. Scholastic achievement grants shall be paid directly to parents or guardians who have custody of the pupil, or a trust established for the benefit of the pupil.

In cases of divorce or separation, SAGs shall be paid to the parent who has custody of the child. If tax or control considerations are important, then a trust could also be utilized.

53045. (a) No pupil may receive scholastic achievement grants for more than 12 years.

Suppose a student was not enrolled in a public school during the 2002-2003 fiscal year, ending June 30, 2003. Suppose he finally passed his GLE in August 2003 and did not receive his $3,000 SAG until October 2003. Now suppose that he passed his next GLE in April 2004, and he received another $3,000 SAG in June 2004. He received $6,000 in one fiscal year; however, $3,000 of that was for payment of academic achievement accomplished during the prior fiscal year. This restriction assures that a student could not "pile up" several years worth of earnings in one fiscal year.

53046. (a) No pupil may receive a scholastic achievement grant for receiving a passing score on a grade level examination of the same or lesser grade level taken and passed by that pupil on a previous occasion.

You cannot leave the fifth grade from a public school where you passed the fourth grade GLE, and then retake the fourth grade GLE to receive an SAG.

(b) The parents or guardians of a pupil may receive a scholastic achievement grant if the pupil receives a passing score on periodic or annual grade level examinations of the same grade level that the pupil attempted and failed to pass while enrolled in a public school no more than 12 months earlier. Otherwise, the State Department of Education may determine which grade level examinations are appropriate for scholastic achievement grant applicants based on the age of similar pupils enrolled in public schools.

If an eleven year old enters the SAG program for the first time, and his parent asks that he take the second grade test, then the SDOE can reply that a sixth grade test is more appropriate, unless that parent can show good cause (like previous dropout record or mental disability) why the second grade GLE is warranted.

53047. (a) Scholastic achievement grants shall be disbursed by the Controller no later than 30 days after a pupil has received grade level examination results that confirm a passing score on the grade level examination.

In conjunction with Section 53018(c), this ensures that a parent receives an SAG no later than 60 days after their child completed an examination with a passing score.

(b) To minimize the costs of disbursement and the potential for fraud and theft, scholastic achievement grant recipients shall be disbursed as electronic funds transfers into accounts at banks capable of receiving these electronic fund transfers. The State Controller may develop guidelines for exceptions to this requirement.

To help the State Controller meet the deadline, we require parents to utilize bank accounts that permit the fullest use of computerized automation of the payment process.

53049. Scholastic achievement grants shall not be treated by the state as taxable income for parents, guardians, or pupils. In the event that the Internal Revenue Service attempts to treat scholastic achievement grants as taxable income, the Attorney General of California shall offer assistance to any plaintiffs attempting to overturn such a ruling.

Parents who enroll their children in public schools do not have to record this publicly provided service as a gift on their tax returns. Parents receiving SAGs should be treated similarly by the Franchise Tax Board.

The IRS might try to collect federal taxes from parents and effectively lower the after-tax value of the SAG. We believe that because parents receive the SAG to fulfill a state-required obligation of compulsory education, a good argument can be made that SAGs should not be treated like ordinary income.

53050. The Legislature shall provide for the distribution of scholastic achievement grants as payments drawn from the General Fund.

53051. Federal funds shall constitute no part of scholastic achievement grants funded under this chapter for pupils who do not meet the conditions of subdivisions (a) and (b) of Section 53043.

SAGs for non-special education students won't be tainted by federal funding. This ensures that additional strings will not be attached. We allow federal funding for special education students because a very large percentage of this funding comes from the federal government and therefore, funding SAGs at 90% of public school expenditures exclusively with state funds would have created an adverse fiscal impact.

53052. (a) Funds appropriated for scholastic achievement grants pursuant to this chapter shall not be counted as moneys to be applied by the state for the support of the public school system and public institutions of higher education as required by Sections 8 and 8.5 of Article XVI of the California Constitution.

This section ensures that per pupil funding for public school students will not be reduced by expenditures for SAGs.

(b) Pupils receiving scholastic achievement grants shall not be counted as enrolled in the public school system and public institutions of higher education for purposes of state apportionments and Sections 8 and 8.5 of Article XVI of the California Constitution.

This section ensures that students who leave the public school system to receive SAGs will generate savings for the taxpayers.

( c) Notwithstanding any provisions contained in Title 2, Division 3, Part 24 (commencing with section 41000) concerned with abatement in the calculation of average daily attendance in the event of a decline in average daily attendance from one fiscal year to the next, the revenue limit for a school district shall be based upon the most current calculations of average daily attendance.

Currently, the Education Code would prevent any savings generated by large transfers out of public schools by students using SAGs from taking immediate effect. School districts are allowed to calculate ADA using various formulas that essentially defer the reductions in state revenue limit allocations to future periods. This section requires that the school districts use current ADA for revenue limit calculations so that any enrollment declines in public schools generate savings for taxpayers that finance the expenditures for scholastic achievement grants.

Article 2. Prevention of Fraud and Unlawful Activities

53055. The State Department of Education shall adopt procedures that minimize the risk of the following:

(a) Awarding scholastic achievement grants to fictitious individuals.

(b) Duplicate awards of scholastic achievement grants.

(c) Persons taking examinations on behalf of other pupils.

53056. The State Department of Education shall only require identification for parents applying for scholastic achievement grants. These parents or guardians of pupils sitting for an examination must present documentation that verifies the identity of the pupil. Documents may include, but are not limited to: a California State identification card, a United States passport, certificate of United States citizenship, certificate of naturalization, foreign passport, alien registration card with a photograph, original social security card, or birth certificate issued by a state, county, or municipal authority in the United States.

This section only applies to pupils participating in the SAG program to lower administration costs. There is less potential for fraud when the GLE is administered in a public school where the identity of pupils is well known by the staff.

Article 3. Awarding of Scholastic achievement grants

53060. (a) The parents or guardians of a pupil who can demonstrate that their child was five years of age or older on the date this measure is enacted and who qualify under state law to receive free meals at public schools may apply to receive a scholastic achievement grant in the amount of three thousand two-hundred dollars ($3,200) for the fiscal year specified in section 53001 and each fiscal year thereafter, pro-rated for the percentage of the school year that the pupil is not enrolled in a California Public School and provided that the pupil is a California resident during the scholastic achievement grant reimbursement period.

If this initiative is adopted November 2000, then low-income children who are at least 5 years old on election day will be qualified to receive a $3,200 SAG starting July 1, 2002 for the 2002-2003 fiscal year, provided that they reside in California during the 2002-2003 fiscal year. A very small percentage of private school enrollment meets this income test.

Every public school pupil exiting public schools to use an SAG will save taxpayers the spread between the state-funded portion of their marginal cost and $3,200. Beginning in 2002, the low-income population of grades 1 -12 school population will be eligible to use $3,200 SAGs. Each succeeding year, the eligible pool shrinks as this 2002-2003 cohort graduates and drops out. This cohort of students will generate substantial taxpayer savings.

53061. (a) This section shall apply to the parents or guardians of pupils who are not qualified to apply for the scholastic achievement grants under the terms of section 53060.

(b) The parents or guardians of a pupil who is eligible to attend grade 1 in California Public Schools in the fiscal year specified in Section 53001 may apply to receive a scholastic achievement grant in the amount of three thousand dollars ($3,000) for the fiscal year specified in Section 53001 and each fiscal year thereafter, pro-rated for the percentage of the school year that the pupil is not enrolled in a California Public School and provided that the pupil is a California resident during the scholastic achievement grant reimbursement period.

Pupils who receive these $3,000 SAGs are ones who could enroll in first grade for the 2002-2003 school year. Some of these SAG pupils would have enrolled in public school in first grade and some would not have enrolled in public schools. We have no way of identifying these pupils individually.

We do know that the ones who would not have enrolled in public schools represent an additional cost burden for taxpayers of $3,000. The ones who would have enrolled in public schools represent savings.

(c) In each succeeding fiscal year, the parents or guardians of pupils in the next grade level shall be eligible to apply to receive a scholastic achievement grant in the amount of three thousand dollars ($3,000), pro-rated for the percentage of the school year that the pupil is not enrolled in a California Public School and provided that the pupil is a California resident during the scholastic achievement grant reimbursement period.

In the 2003-2004 fiscal year pupils are eligible to enroll in grades 1 and 2 are eligible to receive $3,000 SAGs. During the 2004-2005 fiscal year pupils eligible to enroll in grades 1-3 qualify. Each year the ranks of these students expand by one grade until grades 1 through 12 are included. Kindergarten was excluded because a large portion of the private school population is enrolled in kindergarten so we lessen the adverse fiscal impact of this measure.

This phase-in process gradually absorbs the non-public school pupils to minimize the potential for adverse fiscal effects. We are confident that there will be a sufficient decline in the expected baseline public school enrollment to generate savings necessary to pay for the additional costs generated by the non-public school baseline enrollment participating in the program.

53062. Notwithstanding Sections 53060 and 53061, commencing in the fiscal year following the fiscal year specified in Section 53001, the dollar amount of scholastic achievement grants shall be adjusted annually in proportion to the percentage change in state funding per pupil in the state's public schools for grades 1 to 12, inclusive, as compared to the prior fiscal year.

53063. Parents or guardians of a pupil who is eligible to enroll in a special education program may apply to receive scholastic achievement grants in an amount no less than 90 percent of the estimated cost of the pupil's individual education plan at a public school, pro-rated for the percentage of the school year that the pupil is not enrolled in a California Public School and provided that the pupil is a California resident during the scholastic achievement grant reimbursement period.

Nearly every special education pupil is enrolled in a publicly-supported program. Therefore, we assume that all special education SAG recipients represent net taxpayer savings. We believe that parents of special education pupils are the most likely to use SAGs because a large percentage of special education students do not return to non-special education classes. Special education represents the most lucrative market for education entrepreneurs.

Article 4. Payout Procedures and Loan Program

SECTION. 5. Notwithstanding Section 17610 of the Government Code, if the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code. If the statewide cost of the claim for reimbursement does not exceed one million dollars ($1,000,000), reimbursement shall be made from the State Mandates Claims Fund.

SECTION. 6. If any provision of this act or the application thereof to any person or circumstance is held invalid, the remaining provisions or applications shall remain in force. To this end, the provisions of this act are severable.