What Are Alternative Schools and How Does the State Fund Them?

LAO July 2016 70 YEARS OF SERVICE E B D ASICS What Are Alternative Schools and How Does the State Fund Them?  Some Schools Serve as Alternatives to Traditional Schools  Alternative s chools provide education to students who (1) could benefi t from a different environment, (2) cannot stay at their traditional school because of behavioral issues, or (3) are incarcerated.  As shown in Figure 1, school districts, county offi ces of education (COEs), and the Department of Juvenile Justice (DJJ) operate alternative schools.  District-run continuation schools are the most common type of alternative school.  District-run alternative schools typically serve students with less severe challenges.  COE-run alternative schools typically serve students with more severe challenges, including students who are on probation or incarcerated.  DJJ runs three alternative school facilities and one camp. Compared to students who attend COE-run juvenile court schools, DJJ serves students incarcerated for crimes that are more serious and generally serving longer sentences.  Almost all students enrolled in alternative schools are in grades 9 through 12. E B : F C ’ E S D ASICS UNDING ALIFORNIA S DUCATION YSTEMS What Are Alternative Schools and How Does the State Fund Them? (Continued) Figure 1 Overview of Alternative Schools District or District-Run COE-Run COE-Run State (DJJ)-Run County California Continuation Community Opportunity Community Juvenile Education High School Day Schoola Schoolb Schoolc Court School Authority Grades servedd 10-12 K-12 K-12 K-12 K-12 7-12 Enrollment 60,027 4,225 2,045 14,953 5,430 424 (2014-15) Placement criteria • Voluntarye • Nonmandatory • Voluntarye • Mandatory • Awaiting trial • Incarcerated expulsion expulsion • Incarcerated • Probation • Probation referred referred • SARB referred • On • Habitually probation truant a A small number of COEs also operate community day schools. b State has not authorized local education agencies to establish new opportunity schools since 2004. c Counties may make local arrangements with districts to serve other types of students. These students are included in enrollment count. d Refl ects the grade span authorized in state law. Most enrollment is in grades 9-12. e Common reasons include nonmandatory expulsion, truancy, suspension, or credit defi ciency. COE = county offi ce of education; DJJ = Department of Juvenile Justice; and SARB = school attendance review board.  In addition to the alternative schools shown in Figure 1, certain other district-run schools may apply to the California Department of Education to be classifi ed as alternative schools. Specifi cally, schools may apply if at least 70 percent of their students meet certain criteria for being “high risk,” including being under disciplinary sanction or a former dropout.  Traditionally, the state has had different ways of holding alternative schools and traditional schools accountable for student outcomes. (For more information about how the state holds alternative schools accountable, see our report: Next Steps for Improving State Accountability for Alternative Schools.) What Are Alternative Schools and How Does the State Fund Them? (Continued)  Funding Rates Vary by Type of Alternative School  The state funds district-run alternative schools in the same way it funds traditional district schools under the Local Control Funding Formula (LCFF). (For more information about the LCFF, see our brief: An Overview of the Local Control Funding Formula.) – As shown in Figure 2, LCFF provides school districts with a base funding rate for each student. – School districts also receive supplemental funding for English learner, low-income, and foster youth students. A student who has one or more of these characteristics generates supplemental funding equal to 20 percent of the base rate. – Districts with concentrations of these students exceeding 55 percent of their enrollment receive an additional 50 percent of their base rate for students above the threshold.  The LCFF rates for COE-run alternative schools are different from the rates for district-run schools. – As shown in Figure 2, LCFF provides COE-run county community schools with a higher base funding rate for each student. – County community schools receive supplemental funds for English learner, low-income, and foster youth students equal to 35 percent of the base rate. – County community schools with concentrations of these students exceeding 50 percent of their enrollment receive an additional 35 percent of their base rate for students above the threshold.  COE juvenile court schools have special LCFF funding rules. – LCFF provides COE-run juvenile court schools with the same higher grade-based funding rate for each student as it does for county community schools, but all students generate supplemental and concentration funding, effectively providing juvenile court schools with a per-pupil funding rate. What Are Alternative Schools and How Does the State Fund Them? (Continued)  The state-run DJJ schools have their own special funding rules. – As shown in Figure 2, the DJJ has higher per-pupil funding than all other alternative schools. – The DJJ’s per-pupil funding changes from year to year based on the state’s annual appropriation. Figure 2 Funding for Alternative Schools 2014-15 District or State (DJJ) District Programs COE Programs County Programs Programs County Juvenile California Continuation Community Opportunity Community Court Education High School Day School School School School Authority Base Granta $8,712 $8,712 $8,712 $11,313 $11,313b $35,500c Supplemental Grant Rated 20% 20% 20% 35% 35% — Amount $1,742 $1,742 $1,742 $3,960 $3,960 — Concentration Grant Concentration threshold 55% 55% 55% 50% — — Rated 50% 50% 50% 35% 17.5% — Amount $4,356 $4,356 $4,356 $1,980 $1,980 — a Based on average daily attendance. Refl ects base funding rates for students in grades 9-12. b Effective per-pupil funding rate is $17,253, as every student generates a base, supplemental, and concentration grant. c Refl ects derived rate based on annual state appropriation. d Refl ected as a percent of base grant. LCFF = Local Control Funding Formula; COE = county offi ce of education; and DJJ = Department of Juvenile Justice. This is one of a series of issue briefs examining important questions about education funding in Califor- nia. For more information on this topic, or to request other briefs from this series, contact the Legislative Analyst’s Offi ce Education section at (916) 445-4656 or visit our website at www.lao.ca.gov.