The 2022-23 Budget: Expanded Learning Programs

The 2022-23 Budget: Expanded Learning Programs FEBRUARY 2022 Summary. In his January budget, the Governor State Has System of Support for Expanded proposes an additional $3.6 billion for the Expanded Learning. The state uses a portion of ASES and Learning Opportunities Program (ELOP) and 21st Century program allocations ($16 million in $149 million for the state’s longstanding expanded 2020-21) to fund a regional system of support for learning programs. In this post, we provide expanded learning programs. This system of support background on the state’s expanded learning includes the California Department of Education, programs, describe and assess the Governor’s 16 county offices of education across 11 regions, proposal, and provide our recommendations to and contracted technical assistance providers. the Legislature. The technical assistance provides schools with ongoing support to help them create effective Background programs. The specific technical assistance State Has Two Longstanding Expanded activities can include coaching, training, resource Learning Programs. Expanded learning programs brokering, and mentoring. offer students academic and enrichment activities State Created New Expanded Learning outside of the normal school hours. The state has Program in 2021-22. The state provided $1.8 billion two longstanding expanded learning programs— Proposition 98 funding in 2021-22 to establish ELOP. the After School Education and Safety (ASES) The Legislature and Governor agreed to increase program and 21st Century Community Learning funding for the program in future years, with the Centers (21st Century). Much of the funding goal of reaching $5 billion by 2025-26. This new and programmatic requirements of ASES were program provides grants to school districts and established by Proposition 49, which was approved charter schools to provide in-person expanded by voters in 2002. Most notably, the state is required learning opportunities to students in Transitional to provide at least $550 million annually for ASES. Kindergarten (TK) through grade 6. (Throughout this The 21st Century program was established by the post, we use the term “districts” to refer to school federal Elementary and Secondary Education Act in districts and charter schools.) Under ELOP, funded 1994, and reauthorized in the federal Every Student programs are required to provide at least nine hours Succeeds Act in 2015. The key components of ASES per day of combined in-person instructional time and and the 21st Century program, including funding expanded learning opportunities during the school levels for 2020-21, are shown in Figure 1 on the next year and for 30 days during the summer. Similar to page. (As we discuss below, both programs received ASES, an ELOP program must offer programs that a temporary funding increase in 2021-22.) include educational and enrichment components, 2021-22 Budget Included $300 Million with maximum staffing ratios of 20:1. ELOP’s funding One-Time Increase for ASES and 21st Century structure is different from the state’s longstanding Program. In addition to the funding specified expanded learning programs in three key ways: in Figure 1, ASES and the 21st Century program • Funding goes to districts, who have flexibility received a combined $301 million in one-time federal over how programs are allocated across relief funding for temporary rate increases and slots. school sites. The federal funds will temporarily increase ASES per • Funding is apportioned by formula rather than student daily rates from $8.88 to $10.18 in 2021-22 through a competitive grant process. and 2022-23 and 21st Century program rates from $7.50 to $10.18 in 2021-22. 2022-23 Budget Series 1 • Funding amounts are based on a district’s 80 percent EL/LI (Tier 2 rates) would vary based number of English learner and low-income on the amount appropriated in the budget for (EL/LI) students in grades TK through grade 6, the program. The amount of funding provided in not student participation in the program. 2021-22 was sufficient to provide these districts with $672 per EL/LI student enrolled in TK through ELOP Has a Two-Tiered Funding Structure… grade 6. In 2021-22, one-third of eligible districts, The ELOP implementing legislation established enrolling 47 percent of the state’s EL/LI students two funding rates, depending on the proportion of in grades TK through 6, were funded based on the EL/LI students in a district’s student population. Tier 1 rates. The implementing statute specifies that In 2021-22, districts with a student body that is the intent is for the rates to increase to a uniform 80 percent or more EL/LI received $1,170 per $2,500 per EL/LI student at full implementation. EL/LI student enrolled in TK through grade 6. The minimum grant amount in either tier is $50,000. (In this post, we refer to these as the “Tier 1” rates.) Statute specifies that the rate for districts below Figure 1 Key Components of California’s Longstanding Expanded Learning Programs ASES 21st Century Program Total Funding in 2020-21 • $650 million state funds. • $146 million federal funds. Eligible Grantees • Public schools or community-based organizations • Local education agencies, community-based that partner with a local education agency. organizations, other public and private entities, • Priority given to schools with more than 50 percent and institutions of higher education. low-income students. • Must provide services to students who attend schools with at least 40 percent low-income students. • Grantees may provide services to more than one school site. Funding Allocation • Competitive grant process that prioritizes • Competitive grant process that prioritizes high-poverty schools. high-poverty schools. • Funded using a daily per-student rate ($8.88 in • Funded using a daily per-student rate ($7.50 in 2020-21). 2020-21). • Must operate an after school program. Grantees • Must operate an after school program. can apply for additional funding for before school Grantees can apply for additional funding for or summer programs. before school or summer programs. • Minimum grant of $50,000 per school site. • Minimum grant of $50,000 per school site. • Maximum school site grant that varies by size of school. Programmatic • For grades TK through 8. • For grades TK through 12. Requirements • Must include an educational and literacy element • Must include comprehensive support and an educational enrichment element. and improvement activities, as well as an • Must begin immediately after school day ends and educational enrichment component across all operate until at least 6 pm every school day. grades. • Maintain a student-to-staff ratio of no more than • Additional requirements for high school 20 to 1. programs in academic assistance and enrichment activities to prepare for college or career. Parent Fees • Optional. Programs that charge fees must waive • Same as ASES. them for low-income students, homeless youth, or foster youth. • Fees must be based on a sliding scale that considers family income and ability to pay. Local Match • Local match of $1 (cash or in-kind services) for • Not required. every $3 of state funding. ASES = After School Education and Safety and TK = Transitional Kindergarten. 2022-23 Budget Series 2 …With Different Programmatic Additionally, schools received $21.1 billion in Requirements. For 2021-22, statute specifies one-time federal relief funding to cover a broad that all participating districts are required to offer range of activities, including expanded learning expanded learning opportunity programs to all of programs. Most of these funds are available their EL/LI students attending classroom-based through September 30, 2024. Districts can use programs, and must provide access (meaning to their one-time funding from these sources to ensure that space in the program is available) to supplement ELOP funding. at least 50 percent of these students. However, Governor’s Proposals 2021-22 is treated as a transitional year, and districts will not be subject to the annual audit Increases ELOP Funding to $4.4 Billion process or penalties for noncompliance. Beginning in 2022-23. The Governor’s budget provides in 2022-23, Tier 1 districts would be subject to $4.4 billion Proposition 98 funding for ELOP in higher requirements. Specifically, these programs 2022-23—an increase of $2.6 billion from the must offer the program to all TK through grade amount provided in 2021-22. This would bring the 6 students in classroom-based settings and provide funding for ELOP to 88 percent of the intended access to all students whose parent or guardian goal of $5 billion. As Figure 2 shows, the Governor requests their placement in a program. Districts that also proposes to make several modifications to are found to be out of compliance through the audit the tiered structure, rates, and programmatic process would lose their ELOP apportionment. requirements of ELOP in 2022-23. Districts can opt to serve non-EL/LI students and Modifies Tiered Structure and Increases have the option of covering additional costs above Rates. The Governor proposes to lower the their apportionment by either using local general threshold for Tier 1 funding from 80 percent purpose funding or assessing parent family fees. EL/LI students to 75 percent. The Governor Other One-Time Funding for Expanded proposes to increase the Tier 1 rate from $1,170 in Learning. In 2020-21 and 2021-22, schools 2021-22 to $2,500 in 2022-23, with the remaining received almost $25.7 billion in combined state and funding being split among all EL/LI students in federal funding, most of which can be used for the Tier 2. The administration has indicated they same purposes as ELOP. In March 2021, the state estimate the rate for Tier 2 would increase from enacted Chapter 10 of 2021 (AB 86, Committee on $672 in 2021-22 to roughly $2,000 in 2022-23. Budget), which included $4.6 billion for schools to provide expanded learning and academic support programs in response to the COVID-19 pandemic. Figure 2 Rate Structure and Programmatic Requirements for ELOP Governor’s 2022-23 Budget Proposal Tier 1 Tier 2 EL/LI Threshold • 80 percent or more in 2021-22. • Less than 80 percent in 2021-22. • 75 percent or more in 2022-23. • Less than 75 percent in 2022-23. Funding per EL/LI Student • $1,170 in 2021-22. • $672 in 2021-22. • $2,500 in 2022-23 • Roughly $2,000 in 2022-23 (estimate). Long-Term Programmatic • Offer program to all students. • Offer program to all EL/LI students. Requirements • Provide access to every student whose parent or • Provide access to half of EL/LI students. guardian requests enrollment in program. Audit Requirements • Beginning in 2023-24. • Same as Tier 1. ELOP = Expanded Learning Opportunities Program and EL/LI = English learner/low-income. 2022-23 Budget Series 3 Delays Implementation of Requirements Assessment Until 2023-24. The Governor proposes to delay In this section, we provide our assessment the higher requirements for Tier 1 districts, as on key aspects of the Governor’s expanded well as the associated auditing requirements learning proposals. for all districts, from 2022-23 to 2023-24. The Expanded Learning Programs Can Have administration has indicated that this delay is Several Benefits for Students and Families. intended to give districts more time to build out their Increasing access to expanded learning programs programs, given the challenges they have faced can be beneficial to students and communities expanding programs during the pandemic and the for a variety of reasons. Research suggests that significant increase in funding proposed. expanded learning programs with academic Modifies Penalties for Noncompliance. enrichment opportunities can increase student The Governor proposes to modify the penalty engagement and attendance. These programs for noncompliance so that, rather than losing also provide opportunities for students to receive all of their ELOP apportionment, districts would additional academic support and engage in receive proportional reductions based on the other enriching activities outside of the traditional reason for noncompliance. Specifically, if a district classroom setting. Expanded learning programs fails to meet the requirement to offer or provide also can make it easier for schools to provide access to expanded learning programs, its ELOP non-academic supports and other wraparound apportionment would be reduced on a per-pupil services, such as health services and behavioral basis. Additionally, failure to maintain the required health counseling, as is common with the number of days or hours will result in a prorated community schools model. Expanded learning reduction based on the number of days the district programs can also offer a safe and enriching place failed to meet the requirement. for students while parents or guardians are at work Provides $937 Million in One-Time Funding or otherwise unable to provide care. for Arts and Music Infrastructure. The Governor Staffing Shortages Could Make Scaling Up proposes to allocate the $937 million evenly Programs Difficult. Given that ELOP is still in the over four years (from 2022-23 through 2025-26). first year of implementation, the extent to which The funds would be distributed proportional to districts have built out their expanded learning a district’s ongoing ELOP allocation. At least programs is unclear. In our conversations with 75 percent of each districts’ allocation must be districts and other experts, many indicated that used to supplement art education programs. districts have faced challenges with expanding This portion of funding could be used for training, their ELOP programs. Most commonly, districts art supplies and materials, and partnerships with have had difficulties hiring staff given the workforce outside organizations. The remaining 25 percent shortages caused by the pandemic. Potential of allocations can be used for any equipment or ELOP staff also have the opportunity to take other support infrastructure upgrades for expanded school-based positions, such as instructional aides, learning programs. which typically offer more hours of work. (The Makes ASES and 21st Century Program minimum qualifications for ASES and ELOP staff Rate Increases Permanent. The Governor’s are the same as that of district instructional aides.) budget provides a total of $149 million ongoing To the extent that staffing shortages continue to Proposition 98—$95 million to ASES, and be a constraint, ramping up expanded learning $54 million to the 21st Century program—to provide programs will be difficult. The administration’s ongoing funding for the temporary rate increases proposal to delay the auditing requirements would provided in the 2021-22 budget. (The Governor give districts an additional year to build out their does not propose funding to make permanent the programs before they could potentially have their temporary slots added in 2021-22.) funding reduced. 2022-23 Budget Series 4 Long-Term Expectations of Program Are Funding Per Participating Student Would Be Unclear. The implementing statute for ELOP More Generous for Lower-Poverty Districts. specifies an intent to ultimately provide all districts Given that ELOP is not funded based on student with a uniform rate of $2,500 per EL/LI student. participation, the effective funding rate per student However, the way these rates will be phased in will depend on the number of students that receive and the long-term programmatic expectations for access to the program. To assess what the rate per ELOP remain unclear. This lack of clarity makes participating student would be at the $2,500 funding long-term planning difficult for districts. One key rate, we used projections of funding for districts programmatic expectation in flux is the minimum in Tier 1 and Tier 2 and made assumptions about requirement for which students must be provided student participation. The results are shown in access to the program. The Governor’s proposal Figures 3 and 4. As Figure 3 shows, the effective rate maintains the same programmatic requirements per participating student for districts in Tier 1 is above that currently exist for each funding tier. (For the ASES rate ($2,800) in five of the six scenarios, Tier 1, providing access to all students. For Tier 2, with effective rates ranging from $2,500 to $4,750. providing access to all EL/LI students.) However, As Figure 4 shows, the effective funding rates would by modifying the cutoff between the two tiers be even more generous for Tier 2 when considering (from 80 percent EL/LI students to 75 percent), their lower programmatic requirements. Districts in the Governor’s proposal shifts some districts from Tier 2 that met the minimum program requirements Tier 2 to Tier 1. Shifting to a different tier results in by providing access to half of their EL/LI students a higher rate in 2022-23, but the higher rate may would receive $5,000 per participating student— not be proportional to the higher programmatic about 80 percent higher than the ASES rates. expectations of providing access to all students over the long term. We estimate that, under the Figure 3 Governor’s proposal, 109 school districts and Effective Funding Rate for charter schools would shift from Tier 2 to Tier 1 Tier 1 Districts funding. The administration does not specify Annual Rate Per Participating Student whether they intend to continue to reduce the threshold for the higher tier in future years, or if they District EL/LI Share will revisit programmatic requirements. Program Participation 75% 85% 95% Long-Term ELOP Rate Likely Sufficient to Run Three-quarters of all students $2,500 $2,833 $3,167 Program. Assessing the adequacy of funding for Half of all students 3,750 4,250 4,750 ELOP is difficult because, unlike the ASES and the Note: Assumes districts receive $2,500 per each EL/LI student in 21st Century program, ELOP is funded on the overall Transitional Kindergarten through grade 6. attendance of EL/LI students rather than on actual EL/LI = English learner/low-income. program attendance. Furthermore, districts are not required to report program participation data to the state. One way to assess ELOP funding is to Figure 4 compare it with the funding rate provided through Effective Funding Rate for ASES. We estimate that the ASES rate ($10.18 per Tier 2 Districts student for a three-hour day in 2021-22), adjusted Annual Rate Per Participating Student for the school year and summer requirements of ELOP, translates to about $2,800 per student Program participating in the program. Using this $2,800 rate, Participation we estimate the $5 billion committed to ELOP in Three-quarters of EL/LI students $3,333 the long term would be enough to fund almost Half of EL/LI students 5,000 60 percent of all students in grades TK through 6— Note: Assumes districts receive $2,500 per each EL/LI student in sufficient to provide access to virtually all of the Transitional Kindergarten through grade 6. state’s EL/LI students. EL/LI = English learner/low-income. 2022-23 Budget Series 5 $50,000 Minimum May Not Be Sufficient high-poverty schools, these programs are more for a Baseline Program. Given the Governor’s likely to already exist in school districts with higher proposed funding rates for 2022-23, we estimate shares of EL/LI students. To the extent that districts roughly 120 school districts and charter schools already have ASES or 21st Century programs in their would receive a minimum grant of $50,000. In our higher-poverty schools, ELOP funding may end up conversations with experts, districts that received being used disproportionally at school sites with minimum grants in 2021-22 found it difficult to lower rates of EL/LI students. implement a new program, particularly if they did Key Legislative Decisions not have any preexisting after school programs. The $50,000 minimum reflects the same minimum Given the significant increase in funding for as ASES and the 21st Century program. Those ELOP, the Governor’s proposal raises several programs, however, are only expected to operate important issues regarding how the program would during the school year. Under ELOP, districts are operate in the long term. The Legislature could take required to also offer a program for 30 days in a variety of approaches to improve implementation the summer, for nine hours per day. We estimate of ELOP. Below, we highlight several key areas that operating a summer program as required by ELOP the Legislature will want to weigh in on to ensure translates to roughly 50 percent more hours per ELOP is effectively implemented. This includes year compared with only providing a program the following: during the school year. • Long-Term Expectations. To help districts No Clear Rationale for Such a Large Amount plan for increasing the capacity of their of One-Time Funding. Since districts will not be expanded learning programs, it will be required to comply with program requirements in important for the Legislature set clear 2022-23, we think it is highly unlikely they would expectations of how ELOP is intended to spend all of their ongoing funding in 2022-23. work in the long term. In particular, by setting Given the challenges with hiring staff, many clear requirements regarding (1) which districts are also not likely to have spent all of their students must have access to the program, 2021-22 funding. (Under current law, districts can (2) how funding rates will be phased in, use unspent 2021-22 ELOP funding in 2022-23. (3) whether districts are expected to provide The Governor proposes to allow similar flexibility for local matching funds or assess parent fees, 2022-23 funds.) To the extent that districts would and (4) the days and hours that programs like to make one-time purchases to build their must operate. programs, they can do so with these existing funds. • Alignment of Funding Rates and Program We also see no clear justification for requiring Requirements. Given the ELOP rates are 75 percent of one-time funds to be set aside solely more generous for lower-poverty districts, for arts and music. Based on our conversations with the Legislature may want to revisit rates and experts, we think districts should have flexibility to program requirements. The Legislature could spend one-time funding on a variety of activities take a variety of approaches to addressing that would help them develop a quality program, this issue. It could, for example, maintain such as for staff training, facility modifications, and the existing tiered rate structure but create science equipment. a larger gap in rates between the Tier 1 At Full Implementation, ELOP Funding and Tier 2 rates. This would ensure that Could Be Duplicative of ASES and 21st the difference in rates is proportional to the Century Program Funding. When ELOP is fully difference in programmatic requirements for implemented, the state will be providing funding districts. Alternatively, the Legislature could for districts with high shares of EL/LI students and create one funding rate based on student requiring districts to make the program available participation, with an associated set of to all students who request access. Given that the program requirements. By better connecting ASES and 21st Century programs both prioritize funding rates to the associated programmatic 2022-23 Budget Series 6 requirements, either of these approaches provide a uniform rate per EL/LI student and would be an improvement over the Governor’s require districts to provide access to all EL/LI proposal. In aligning funding and program students interested in the program. This approach requirements, the Legislature may also want would allow districts to better plan and build out to consider setting expectations for whether their programs. By focusing the requirements districts should contribute a local match or and funding around EL/LI students, we think charge parent fees. Requiring a local match or our recommendations will ensure the students parent fees could affect decisions regarding with the greatest need for expanded learning the appropriate level of state funding and opportunities have guaranteed access to these minimum program requirements. programs, regardless of which district they attend. • Data Collection. Tracking program In the long run, we recommend the state shift to a participation will allow the Legislature to funding model based on student participation in the assess whether the funding provided is program. This will ensure state funding is targeted sufficient to run an expanded learning to districts whose students have the greatest need program. The Legislature could use this for the program. We also recommend increasing information to reevaluate the program minimum grant amounts from $50,000 to $75,000 and consider programmatic and funding to reflect the higher number of hours ELOP is modifications in the future. Additionally, the required to operate compared with ASES. Legislature could require participation data Reject One-Time Arts and Music Funding. be incorporated into the state’s longitudinal As mentioned previously, districts are likely to data system, which would allow the state have substantial unspent funds from 2021-22 and to evaluate the effects of the program on 2022-23 that could be used for one-time expenses. student outcomes. If the Legislature were to adopt the proposal, we would recommend removing the restrictions that Recommendations 75 percent of funds be specifically used for arts Enact Uniform Rate Structure Focused on and music. Providing Access to EL/LI Students. Figure 5 Consider Providing Funding for Technical describes our long-term recommendations Assistance. Given the number of schools that to improve ELOP based on the key decisions will be creating or expanding programs over the discussed above. We recommend the Legislature next few years, increasing access to technical Figure 5 LAO Recommendations for Expanded Learning Opportunities Program Issue Recommendation Rates • Phase in rates consistently for all districts. Assuming Governor’s proposed funding for Expanded Learning Opportunities Program, the rate would be about $2,300 in 2022-23. • Set short-term target of $2,500 per English learner/low-income (EL/LI) student for all districts. • In the long term, adjust grant amounts based on actual student participation. Program • Require programs offer and provide access to all EL/LI students in Transitional Kindergarten through grade 6 that Requirements are interested in the program. • Allow districts to provide access to other students on an optional basis. Other Revenue • Do not require a local match or parent fees. Districts can choose to do so to increase access or improve program. • As required under the After School Education and Safety program, fees must be waived for low-income students, foster youth, and homeless youth. Any fees charged to families must be on a sliding scale that considers family income and ability to pay. Data Collection • Require reporting on number of students participating and number of staff employed. Use this information in future years to consider changes to rate structure or staffing requirements. Minimum Grant • Provide minimum grant amount of $75,000. 2022-23 Budget Series 7 assistance could help districts implement quality craft these changes given its limited control of expanded learning programs and meet program these programs. (The Legislature could modify requirements by 2023-24. We recommend setting programmatic aspects of ASES with a two-thirds aside a portion of ELOP funding to expand the vote, but could not shift funding into ELOP without Statewide System of Support for Expanded approval of the voters. The 21st Century program Learning. One option would be to set aside is governed by federal rules.) Even with these $15 million—effectively doubling the existing restrictions, the Legislature has several options for system of support. Scaling up the level of technical improving alignment of its programs. Given that assistance may be difficult to do in a short amount ELOP is primarily intended to serve elementary of time. The Legislature could provide funding schools, one option would be to shift ASES and 21st initially and revisit the amount next year depending Century program funding to be used exclusively for on the level of demand for assistance. middle and high schools. Another option would be Consider Ways to Align Other Expanded to direct ASES and 21st Century program funding Learning Programs With ELOP. Given ELOP may, to provide a higher level of funding per student in some cases, be duplicative of ASES and the in schools with the highest need. This approach 21st Century program, the Legislature may want to could be used to provide higher levels of service consider modifying these programs in light of ELOP or other wraparound supports for students in expansion. The Legislature would need to carefully higher-poverty schools. LAO PUBLICATIONS This post was prepared by Michael Alferes, 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