The 2022-23 Budget: K-12 Early Literacy Proposals

The 2022-23 Budget: K-12 Early Literacy Proposals FEBRUARY 2022 Summary. The Governor’s early literacy plus additional funding based on the proportion of proposals for schools include one-time students who are English learners or low income. Proposition 98 funding of $475 million for very For each student who is an English learner or low-income schools to hire literacy coaches, low income, a district receives a supplemental $25 million for statewide training for literacy grant equal to 20 percent of the base grant. coaches, and $200 million for culturally relevant Districts serving a student population with more and multilingual books in school libraries. than 55 percent low-income and English learner This post provides background on school students receive additional funding through a funding and literacy, describes the Governor’s concentration grant for each low-income and early literacy proposals for schools, and offers English learner student above the 55 percent associated assessments and recommendations threshold. This additional funding largely is intended to the Legislature. to address the broader challenges schools serving high shares of English learners and higher-poverty Background communities face—for example, providing Prior to Pandemic, State Reading additional supports and instructional materials for Assessments Showed Improvements in Early struggling readers or students learning English. Grades. In 2019, 49 percent of California students Schools pay for most of their general operating in the third and fourth grade met or exceeded expenses (including employee salaries and benefits, state standards in English language arts. This supplies, instructional materials, and student rate reflected notable improvements compared to services) using these funds. results from 2015—when around 40 percent of third 2021-22 Budget Increased LCFF and fourth graders met or exceeded standards. Concentration Grant Rate. The 2021-22 budget Since the COVID-19 pandemic, a limited set of provided a $1.1 billion ongoing augmentation to state assessment results from 2020-21 showed increase the LCFF concentration grant rate from the share of students in third and fourth grade 50 percent of the base grant to 65 percent. Trailer who met or exceeded state English language arts legislation specifies that the additional funding be standards dropping to around 40 percent. (Due to used towards increasing the number of staff that pandemic-related factors, including state-level provide direct services to students in schools where flexibilities for districts to offer local assessments more than 55 percent of students are low-income for 2020-21, less than 25 percent of students and English learners. completed the statewide assessments in all subject State’s Accountability System Directs areas, compared to over 95 percent of eligible Technical Assistance to Low-Performing students in previous years.) Districts and Schools. In conjunction with Local Control Funding Formula (LCFF) Covers establishing LCFF in 2013-14, the state adopted a Core Instructional and Other Educational Costs. new system of accountability for school districts. The LCFF is the primary source of funding for Under the current system, each district is required school districts and charter schools. The formula to adopt an annual strategic plan known as a provides a base grant amount for each student, Local Control and Accountability Plan (LCAP). 2022-23 Budget Series 1 In the LCAP, districts must establish performance to students in poverty. Most notably, the federal targets in state priority areas and identify actions government supports supplemental educational to achieve these targets for all students and services for low-income students through the student subgroups, including English learners federal Every Student Succeeds Act. In response and low-income students. In developing their to the pandemic, the federal government also LCAP, districts must seek feedback from school provided California schools more than $21 billion employees, students, and parents. The state also one time across three emergency relief packages. has a school dashboard that reports school and These federal relief funds can be used on a variety district performance based on measures aligned of activities including providing supplemental with the state priority areas. One state priority reading instruction and purchasing books and area focuses on student academic achievement instructional materials. as measured by test scores on state reading, Pandemic Is Driving Widespread School math, and (for English learners) English language Staffing Shortages. Districts report challenges proficiency assessments. A district that is identified stemming from the pandemic with hiring a range as low performing based on the school dashboard of school staff, including qualified teachers, is to receive targeted support from its county office reading specialists, substitute teachers, school of education (COE). In providing technical support, nutrition staff, and bus drivers. A national survey COEs sometimes consult with other regional and of teachers from January 2021 found that state partners known as lead agencies. In fall 2019, 23 percent of teachers were likely to leave their 201 school districts (out of approximately current job due to pandemic-related stress by the 1,000) were identified as having poor academic end of 2020-21, compared to an annual average of achievement for one or more student subgroup. 16 percent before the pandemic. Data in California Various Other Funding Sources to Support is consistent with this finding. According to the Improvements in Literacy and Purchase California State Teachers’ Retirement System, Instructional Materials. In addition to LCFF, the which manages the state’s pension system for state funded various one-time initiatives focused teachers, 3,202 California teachers retired in on improving academic outcomes in recent the second half of 2020—a 26 percent increase years. For instance, the 2020-21 budget included relative to 2019. Although the pandemic appears to $50 million to establish block grants to improve have accelerated teachers leaving the workforce, early literacy. These block grants were targeted data on teachers entering the workforce—such to the 75 schools with the lowest performance on as district hiring of new teachers and enrollment third grade state reading assessments. Additionally, in teacher preparation programs in 2021-22— $3 million was provided for a lead COE to provide have not yet been released. In addition to statewide professional development and technical teacher supply challenges, recent state efforts assistance focused on effective literacy instruction to expand Transitional Kindergarten to include all in early grades. The 2021-22 budget also included four-year-old children will increase demand for $1.5 billion for educator professional development classroom teachers. grants, available over five years, in addition to Governor’s Proposals $10 million for statewide professional development on reading instruction and intervention. Schools Provides $475 Million One Time for Very also received and are required to use a portion of Low-Income Schools to Hire and Train Literacy funding from state lottery revenues for books and Coaches. Funding would be for eligible schools instructional materials under Proposition 20 (2000), to hire and train literacy coaches and reading typically several hundred million dollars annually. specialists that, in turn, would implement school In addition to state funding, the federal government literacy programs, mentor teachers, and provide funds many education programs on an ongoing targeted reading interventions to students. The basis (around $2.5 billion) that are focused on funding would be provided to local education addressing poor student performance and targeted agencies (LEAs)—school districts, charter schools, 2022-23 Budget Series 2 and COEs—for each school site where at least Assessment 95 percent of students in Transitional Kindergarten Districts Are Expected to Fund Instructional through grade 6 are English learners or low income. Support and Libraries Through LCFF. Although The administration estimates about 1,000 schools efforts to improve early literacy could be warranted, would be eligible (out of about 10,000 statewide). dedicated school funding specifically for early Each eligible school would generate a base grant literacy might not be necessary. Under the state’s of $300,000, with remaining funding distributed current school funding system, LEAs are expected based on enrollment in Transitional Kindergarten use LCFF funding—and a variety of other state through grade six. The LEAs for schools receiving and federal funding, as previously discussed—to funding would be required to provide a 50-cent cover core academic instruction, instructional match for each $1 received in state grant funding. materials, and other educational costs. This The noncompetitive grants would be available over includes expenditures that would be required under three years. By June 30, 2026, LEAs would have the Governor’s proposals, such as hiring staff to to report to the California Department of Education provide reading interventions and purchasing books (CDE) how funding was used to prepare and employ for school libraries. Many of the state’s largest literacy coaches, the impact these coaches had school districts already fund early literacy initiatives on student literacy, the plans to continue funding with existing funding. (For instance, Los Angeles for these coaches after the grant period, and other Unified, San Diego Unified, Alameda Unified, metrics as determined by CDE. Elk Grove Unified, among others, each operate their Provides $25 Million One Time to Provide own early literacy programs that provide targeted Statewide Training for Literacy Coaches. reading support and instruction.) Furthermore, the In addition to funding proposed for LEAs to train state’s recent increase to the LCFF concentration their literacy coaches, the Governor’s budget grant is intended to fund additional staff, such as includes $25 million (available over three years) literacy coaches, in the highest-poverty schools, for a designated LEA to provide statewide training including those targeted by the Governor’s for all literacy coaches and reading specialists. proposals. Based on our analysis, more than CDE would be required to select the LEA based on 90 percent of the LEAs that would receive funding criteria established by the department, with priority under one of the Governor’s literacy proposals also for LEAs with demonstrated success of improving receive concentration grant funding. These LEAs student literacy. also disproportionally benefited from the more than Provides $200 Million One Time for $20 billion in one-time federal funding provided Multilingual Books for School and Classroom over the last two years. This funding can be used Libraries. Funding would be for eligible schools for similar purposes, with most funding available to expand their school and classroom libraries to through September 30, 2024. include more culturally relevant books in English or Research Suggests Literacy Coaches Could other languages used in students’ homes. To be Improve Student Reading… Various studies eligible for funding, schools must: (1) have at least suggest that literacy coaches can improve student 80 percent low-income students; (2) have at least reading test scores if experienced coaches are 15 percent English learners; and (3) serve students placed in the lowest performing schools. A 2010 in State Preschool, Transitional Kindergarten, study from the RAND Corporation examined the or first through third grade. The administration impact of state-funded literacy coaches placed estimates there are about 2,000 eligible schools. in Florida middle schools on student reading LEAs would receive a minimum grant of $100,000 test scores between 2002 and 2006. The study for each eligible school. Funding would be available found positive impacts for two student cohorts through 2022-23. By September 30, 2023, LEAs analyzed, whereas the other two cohorts showed receiving funding would have to report to CDE how essentially no impact on student reading. The funds were used to establish or expand student findings suggest that the greatest impacts were access to multilingual texts. among the lowest performing schools where coaching was implemented for a number of years. 2022-23 Budget Series 3 The researchers also noted, however, that the • Staffing Shortages Could Make Hiring rapid expansion of Florida’s reading program Qualified Staff Difficult. Effective potentially led to challenges recruiting effective literacy coaches are highly specialized— coaches, resulting in coaching having less impact ideally, they have successful experiences for some cohorts. Likewise, a 2018 meta-analysis teaching reading, in-depth knowledge of of teacher coaching studies found a stronger effect evidence-based literacy instruction, and for smaller scale demonstration projects compared experience working with teachers. Given to larger scale programs, likely due to challenges the current school staffing shortages, LEAs effectively scaling up interventions, getting teacher may not be able to find fully qualified literacy support for coaching interventions, and accessing coaches and specialists. The Governor’s experienced coaches. proposal intends to make hiring literacy …But Several Issues Could Limit Benefits of coaches somewhat easier by not requiring Literacy Coach Proposal. Although funding for any specific qualifications for reading staff literacy coaches could improve student outcomes, hired using grant funds. Newly hired literacy several issues could limit the proposal’s impact. coaches with limited experience, however, would need additional training. Although • Proposal Not Aligned With State literacy coaches could receive training from Accountability System. The proposal the entity designated to provide statewide is not targeted specifically to districts or training, it remains unclear whether such schools that have been identified as needing training can effectively replace the extensive support for academic performance. Of the knowledge and experience that fully qualified 201 districts identified for poor academic literacy coaches typically have. performance in 2018-19 (most recent data available), only about 60 districts would be Impact of Multilingual Library Books eligible to receive the proposed funding for Remains Unclear. Culturally relevant and literacy coaches. multilingual books could promote a sense of • Temporary Funding Could Limit belonging and encourage reading for bilingual Proposal’s Impact. Since research suggests students and students of color. To date, however, that literacy coaching must be in place for there is limited research on the impacts of several years to improve student reading, multilingual and culturally relevant books on the impact of the Governor’s proposal will student reading proficiency, as well as how much likely be constrained by the three-year access California students currently have to such grant period. Given time required for hiring, materials. Students also could access multilingual training, and planning, coaches may just be and culturally relevant books at the local public starting to provide effective reading support library. Providing additional books in school and when funding would be expiring. Although classroom libraries would not directly improve or participating schools are required to develop result in effective instruction, which would benefit a long-term funding plan for these new students most. Other state initiatives could better positions, there is no guarantee that positions support English learners, such as increasing would be funded in the future. Moreover, the number of bilingual teachers or providing the administration intends for funding to more professional development for teachers to supplement existing resources, but the better support English learners. LEAs also have proposed trailer legislation does not prohibit a variety of other funding sources they can use using funds for existing staff. Some schools to expand access to such books, including state could, therefore, use the proposed funding to lottery funding, one-time federal relief funding, and cover costs for existing literacy coaches, thus private donations. limiting the proposal’s impact. 2022-23 Budget Series 4 Proposals Would Award Significant Funding determine and fund priorities under LCFF. For these to Very Small Schools. Since both proposals reasons, we recommend the Legislature reject the would include minimum grant amounts and base Governor’s proposals to fund additional literacy eligibility solely on shares of students falling under coaches and multilingual books, thereby freeing certain categories (such as low income or English up $700 million in one-time Proposition 98 funding learners), some schools would receive a significant to support other legislative priorities. Should the amount of funding for a very small student Legislature be interested in funding the literacy population. In our analysis, we found a total of proposals, we suggest several modifications. about 20 schools that enroll ten or fewer students For the literacy coach proposal, the Legislature and would qualify for funding from one of the could consider extending the time line of the grant proposals. Given the eligibility for both proposals funding from three to five years to allow districts to are overlapping, a very small school meeting both address likely staffing shortages and increase the criteria could receive a very significant amount of time frame for coaching interventions. To encourage literacy funding—$400,000 in base funding from the additional coaching, the Legislature could adopt two proposals alone. trailer legislation clarifying that funds are intended to supplement rather than supplant existing Recommendations spending on literacy coaches. We also suggest Reject Proposals Since Districts Can Fund targeting funding to schools identified as low These Activities Using LCFF. As previously performing for student achievement as identified mentioned, districts can already fund literacy under the state’s accountability system. To address coaches and multilingual books using LCFF the issue of very small schools receiving a funding, one-time federal relief funding, and significant amount of funding from either proposal, various other funding sources. The administration’s we suggest limiting funding to schools enrolling at approach of providing restricted funding for least 11 students in the targeted early grades, as is certain early literacy activities is not consistent consistent with how the state implemented the early with the original legislative intent that LEAs locally literacy block grants in 2020-21. 2022-23 Budget Series 5 2022-23 Budget Series 6 2022-23 Budget Series 7 LAO PUBLICATIONS This post was prepared by Amy Li, and reviewed by Edgar Cabral and Anthony Simbol. The Legislative Analyst’s Office (LAO) is a nonpartisan office that provides fiscal and policy information and advice to the Legislature. 2022-23 Budget Series 8