STATE OF THE STATE BUDGET 2014-15 Governor’s January Proposal - PowerPoint PPT Presentation

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STATE OF THE STATE BUDGET 2014-15 Governor’s January Proposal PowerPoint Presentation
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STATE OF THE STATE BUDGET 2014-15 Governor’s January Proposal

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STATE OF THE STATE BUDGET 2014-15 Governor’s January Proposal
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STATE OF THE STATE BUDGET 2014-15 Governor’s January Proposal

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  1. STATE OF THE STATE BUDGET 2014-15Governor’s January Proposal January 2014 Presented by Kerry Moriarty, CTA NODD School Finance

  2. 2013-14 BudgetIn Review • Local Control Funding Formula implemented • K-12 Districts 1.565% COLA, but imbedded in the LCFF Target • 11.78% of LCFF Gap was funded • 32 of the 58 COEs already have funding at their target or above due to hold harmless clause COLA $/ADA K-3$107 4-6$109 7-8$112 9-12 $130

  3. 3 Proposition 98 Forecast Governor’s 2014-15 January Budget Proposal Summary

  4. LCAP Timeline DONE DONE DONE 10/1/15 1/31/14 1/1/14 3/31/14 7/1/14

  5. Local Control & Accountability Plan (LCAP) • Annual goals and specific actions based on state priority areas for the district and each school in the district • Description of expenditures implementing specific actions • Adopted every three years and updated annually • LEA shall consult with teachers, principals, administrators, other school personnel, parents, & pupils in developing the plan • Public hearing including opportunities for written input with written response from district superintendent • Adopted with the LEA’s budget & submitted to COE for approval • SBE adopted regulations (January 16, 2014) that govern the expenditure of funds apportioned on the basis of the number and concentration of unduplicated pupils

  6. LCFF – Base Grant Entitlement Calculation • 2014-15 target entitlement calculation • Grade span per-pupil base grants, based on 2014-15 statewide average initial target of $7,829 per ADA • Increased annually for a COLA

  7. Deferral Repayment • Governor proposes to repay all outstanding deferrals in 2014-15 • Improves cash flow • No program budget impact • 2014-15, the 5-5-9* apportionment schedule should be implemented * 5% paid in July, 5% paid in August & 9% paid in each of the following months except EPA funds which are distributed quarterly

  8. Prop 39 – Energy Efficient Funding • $316 million in 2014-15 to K-12 education to be allocated on a per-ADA basis • 85% of funding based on the average daily attendance (ADA) reported as of P-2 for the prior year & 15% based on the students eligible for free and reduced-price meals in the prior year • LEAs must encumber the Proposition 39 funds by June 30, 2018 • Receipt of funds is dependent on submission and approval of an expenditure plan by the California Energy Commission • More information at

  9. Common Core • No new funding proposed in 2014-15, however, $200 per 2012-13 enrollment received in 2013-14 for Common Core implementation ($1.25 B statewide) • Must be spent by end of 2014-15 • Must hold a public hearing on expenditure plan • LEAs can spend the funds for the following allowed purposes: • Professional Development • Instructional materials and supplemental instructional materials aligned to the CCSS academic content standards • Technology

  10. 10 State Categorical Programs Still Standing • COLA = 0.86% for: • State Spec Ed • Child Nutrition • American Indian Ed Centers/American Indian Early Childhood Ed

  11. Transportation • Funded at 2012-13 level • Permanent add-on to LCFF • No COLA • Funds must be spent on pupil transportation • Direct-funded Home-to-School Transportation JPAs will continue to receive direct funding in 2013-14 and 2014-15

  12. Lottery • $126 per ADA – unrestricted • $31 per ADA – instructional materials (Prop 20)

  13. Special Education • 0.86% COLA on state/local share ($4.39 per ADA) • Growth (state) • $514.50 per unit of growth ADA • FYI – not in budget, but important Special Education Task Force • Appointed 32 members • Identify the state’s vision and mission for students with disabilities

  14. Mandated Cost Reimbursement • $216.6 million for Mandate Block Grant (K-12) • Annual choice between existing mandate claim reimbursement process or block grant (little funding for reimbursement, however) • Higher rate for the 9-12 grade span is due to the inclusion of the Graduation Requirements in MBG 2013-14 • LAO indicates Gov proposes adding 3 programs to MBG, but no additional funding Proposed programs to be added: Uniform Complaint Procedures, Public Contracts, & Charter Schools IV

  15. Federal Funding • Congress is working on a bill to fund K-12 education (and other programs) through October 2014 back to nearly pre-sequestration levels • No additional cuts for federal program funds will occur in the current fiscal year • New $250 million Race to the Top competitive grant fund was proposed to "develop or expand high-quality preschool programs for four-year-olds under 200% of the Federal Poverty Level"

  16. Adult Education • Existing K-12 & community college Adult Ed programs will maintain the status quo for 2 years (including funding) • 2013-14 & 2014-15 • LEAs must maintain the same level of Adult Education expenditures in 2013-14 & 2014-15 as were expended in 2012-13 • LEAs will retain authority to independently continue existing Adult Ed programs, but it is expected that they will join a regional adult education consortium to gain access to future funding • Gov intends to make an investment in Adult Ed through a categorical program in 2015-16

  17. ROC/P • The LCFF compromise maintains the status quo for ROC/Ps • Of funds received for that purpose, districts are required to expend the same level on ROC/Ps in 2013-14 and 2014-15 as in 2012-13 • Since 2007-08, ROC/Ps have been funded at local discretion because of Tier III flexibility • Member districts of ROC/Ps operating as a joint powers agency (JPA) must also maintain allocations to the JPA at 2012-13 levels

  18. Reforms • Non-classroom based independent study – streamline and expand instructional flexibility • Rigor and educational quality like classroom-based • Same educational minutes as classroom-based • Adequate teacher and student interaction • Maintain classroom-based equivalent pupil-to-teacher ratio unless a new alternative ratio is collectively bargained • 1 unit of ADA per year for each student enrolled • School Facilities – continue a dialogue about the future of school facilities funding, including consideration of what role, if any, the state should play. • Rainy Day Fund – constitutional amendment for the 2014 ballot to strengthen the existing state budget Rainy Day Fund • Prop 98 Reserve where spikes in funding would be saved for future years of decline.

  19. COE LCFF • The two-part formula includes: • Per-ADA funding to support students attending community schools and juvenile court schools • Unrestricted funding for general county office operations, distributed based on the total number of school districts in the county and the total ADA of all students in the county • Counties will receive a base grant per ADA for students served in alternative schools and community schools • Targeted supplemental grants for English learners and low income students, comparable to the LCFF for school districts • In 2014-15, all 58 COEs will have funding at their target or above

  20. 20 Community Colleges • Cost-of-living adjustment (COLA) - $48.5 million (0.86%) • Apportionment funding – Increase $155.2 million (3% increase in enrollment) • Board of Governors must adopt a growth formula (first priority to districts identified as having the greatest unmet need in adequately serving their community’s higher educational needs) • All districts will get some growth funding, and over time will be fully restored to pre-recession apportionment levels • Financial Stability for Apportionments • Increase of $38.4 million in 2013-14 and $35.6 million in 2014-15 • Shift a portion of the redevelopment agency revenues to the following fiscal year • Deferral repayment - $592.4 million (all deferrals eliminated) • Energy Efficiency Investments (Prop 39) - $39 million • Investing in Student Success • $100 million to increase orientation, assessment, placement, counseling, and other education planning services for all matriculated students • $100 million to close achievement gaps in access and achievement in underrepresented student groups as identified in local Student Equity Plans • Deferred Maintenance and Instructional Equipment • $175 million one-time split equally between deferred maintenance and instructional equipment purchases

  21. UC & CSU • $142 million each for UC & CSU • 2nd installment in 4-year funding plan proposed by Gov in 2013-14 • 5% increase in 2013-14 & 2014-15, then 4% increase in 2015-16 & 2016-17 • No enrollment targets or growth funding • No tuition increases (to receive increase tuition must remain flat through 2016-17) • Must adopt 3-year sustainability plans by 11/30/14 • New Innovation Awards (One-time $50 million for UC, CSU & CCC)

  22. 22 LCFF Emergency Proportionality Regulations

  23. 23 LCFF Emergency Proportionality Regulations • Shall provide evidence in LCAP to demonstrate how funding apportioned on the basis of the number and concentration of unduplicated pupils (UP generated funding) • UP generated funding shall be used to increase or improve services for UPs as compared to the services provided to all pupils in proportion to the increase in funds • LCAP shall include an explanation of how expenditures of such funding meet the LEA’s goals for its UPs in the state priority areas • COE shall review descriptions in an LEA’s LCAP when determining whether the LEA has fully demonstrated that it will increase or improve services for UPs • If LCAP is not approved by COE for failing to meet proportionality requirement, COE shall provide technical assistance to the LEA in meeting this requirement

  24. 24 LCFF Emergency Proportionality Regulations • Conditions under which an LEA may use UP generated funds for districtwide, schoolwide, countywide, and/or charterwide: • >55% UP in CY or PY, may expend Supp & Conc funds districtwide &/or >40% UP in CY or PY @ site, may expend Supp & Conc fund schoolwide • LCAP must describe how services are directed toward UPs in state priority areas • If <55% UP, may expend Supp funds districtwide &/or >40% UP in CY or PY @ site, may expend Supp & Conc fund schoolwide, but shall: • LCAP must identify services provided districtwide/schoolwide • LCAP must describe how services are directed toward UPs in state priority areas • LCAP must describe how services are the most effective use of the funds to meeting district goals for UP in state priority areas

  25. 25 Issues to Consider for Bargaining/Organizing • Additional funding for many districts • More than double the new LCFF $ in 2013-14 • Funding flexibility (local control) • Common Core requirements • Common Core funding • Past or potential litigation regarding student test score related to teacher evaluation • LCFF proportionality requirements • LCAP requirements & student outcome objectives

  26. Bargaining Implications • SSCal is advising districts that REU requirement is not enough – instead districts should reserve 1 year’s increment of planned revenue growth • SSCal is advising districts to use conservative LCFF estimates for out years in MYPs • Large variances in per pupil and total funding between districts will create challenges when advocating for comparability • Labor market is the labor market, still have to compete for talent

  27. Bargaining Advice • Determine estimate of district new $ for 2014-15 • Get necessary financial documents (2013-14 1st Interim, 2013-14 Budget – with ADA by grade span, 2012-13 Unaudited Actuals, 2013-14 UP% [CALPADS]) • FCMAT LCFF Calculator • Prepare bargaining teams with training & paradigm shift to bargaining on offense • Push back on district bargaining delays Evaluate local readiness for CCSS & expanded bargaining possibilities (and the responsibilities that go with these things) • Prioritize local bargaining needs/goals • Consider QEIA best practices to inform local educational program decisions • Prepare Organizing teams & work LPAE process to support improved organizational capacity & bargaining plan • Time is now to assert right to consult on LCAP and as LCAP is developed, prepare a timely demand to bargain on any impacts and effects of the LCAP on the bargaining unit