Concentration Grant - Ventura County Office of Education

Report
2013 Budget Perspectives Workshops
877.954.4357 • www.sia-us.com
2013 Budget Perspectives Workshops
Welcome to the
2013 Budget Perspectives Workshop
Jeff Owen
Vice President – Operations
School Innovations & Achievement
877.954.4357 • www.sia-us.com
2
2013 Budget Perspectives Workshops
SI&A Announcement
Scott Hill
• SI&A, National Policy Advisor
• Bill & Melinda Gates Foundation,
Sr. Program Manager
His focus:
• National Implementation of Common Core State
Standards & Assessments.
• Building support systems for the new standards.
877.954.4357 • www.sia-us.com
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2013 Budget Perspectives Workshops
One critical support system is
Academic Tenacity
1. What is it? Persistence of effort
2. How is it measured? Attendance
(A2A) is the only proven Attendance
Intervention System on the market
– A2A currently supports nearly 1M families and students
– Last year, A2A clients had:
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More than a 25% reduction in daily absences
Over 2,700 school children back in school every day
Nearly 500,000 additional instructional days gained
Average ADA gain of .62% - over $14 million dollars generated
Significant improvement in all sub-groups
877.954.4357 • www.sia-us.com
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2013 Budget Perspectives Workshops
A2A Results
*?
What is your
I1 Save Rate
Combined Save Rate of I1 and I2
Hispanic
Hispanic
African
American
White
African
American
White
Total
Total
*Save Rate is defined as “children that do not continue on a path toward ‘chronic absenteeism’”.
877.954.4357 • www.sia-us.com
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2013 Budget Perspectives Workshops
A2A results are not an accident.
Intervention Student Sample Size
Hispanic
African
American
877.954.4357 • www.sia-us.com
White
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2013 Budget Perspectives Workshops
A2A - Making An Impact
• Excited to know that this work is being recognized
nationally
– as a key component of emerging national strategies,
– in supporting the implementation of the Common Core
State Standards
• We look forward to working with all of you, to
supporting your Common Core implementation
efforts this year and in the future.
• THANKS
877.954.4357 • www.sia-us.com
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2013 Budget Perspectives Workshops
Gerry Shelton
Partner
Susan Stuart
Partner
877.954.4357 • www.sia-us.com
Jack O’Connell
Partner
Kevin Gordon
President and
Partner
Abe Hajela,
Partner
Barrett Snider
Partner
Lee Angela Reid
Chief Legislative
Advocate
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2013 Budget Perspectives Workshops
Adonai Mack
Legislative Advocate
877.954.4357 • www.sia-us.com
David Walrath
President, Murdock
Walrath and Holmes
9
2013 Budget Perspectives Workshops
The Governor’s 2013-14 Budget
“Subsidiarity”:
The idea that a central authority should have a
subsidiary function, performing only those tasks
which cannot be performed effectively at a
more immediate or local level. [Oxford English Dictionary]
877.954.4357 • www.sia-us.com
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2013 Budget Perspectives Workshops
Budget Themes & Thoughts
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Basking in Victory
Erasing the Deficit
Wall of Debt – Work in Progress
Counting on Economic Growth
Investing in Education – Over Time
“Subsidiarity”
Centerpiece of Budget is “Local Control
Funding Formula (LCFF)”
877.954.4357 • www.sia-us.com
11
2013 Budget Perspectives Workshops
Economic Outlook
• Nation – Continued Slow Recovery
– Less than 2% GDP growth through mid-2013, improving to 3% beyond
– Unemployment = 7.8% - down from 10% in 2009; 9% for much of 2011
• California – Still Even Slower Recovery
– Unemployment below 10%, down from 12.4% in 2011; falling to 8.4%
in 2014
– Employment (vs. labor force dropouts) actually growing
– Real Personal Income growth above 3% going into 2014
– Construction/housing sector is recovering
• Challenges
– Washington – deficits, politics, short-term fixes
– Interest rates and the construction/housing sector
877.954.4357 • www.sia-us.com
12
2013 Budget Perspectives Workshops
Political Backdrop
• Decisive win on Prop 30 = political capital for Brown
– Getting voters to do the impossible – raise taxes
– The low budget, late game strategy wins again
• What Prop 30 really does vs. perception
• The changing demographic of a major blue state
– Rise of the Hispanic voters
– Voters between 18 and 29
• Democrat supermajority
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•
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Potential to equalize power between Governor and Legislature
Budget & taxes
Urgency statutes
Veto override
• Influence of organized labor
• Unprecedented number of new lawmakers
877.954.4357 • www.sia-us.com
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2013 Budget Perspectives Workshops
Governor’s Budget
• Governor declares that deficit is erased
• Second budget in a decade without a projected
deficit
• Increases GF spending by 5 Percent - going from $93
billion in 2012-13 to $97 billion in 2013-14
• Increases funding for K-12 schools & higher
education
• Expands Medi-Cal under state implementation of
federal health care reform
• Pays down $4.2 billion in budget-related borrowing
• Establishes a $1 billion reserve
877.954.4357 • www.sia-us.com
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2013 Budget Perspectives Workshops
Governor’s Budget
• Assumptions above LAO’s projections – erases deficit
and creates a $1 billion reserve
– $1.1 billion in higher revenues over three years
(mostly Prop 30)
– $500 million by repaying less of borrowing from
special funds
– $1 billion higher estimate of savings (RDA/Cap and
Trade)
– Extending health care-related taxes and fees
877.954.4357 • www.sia-us.com
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2013 Budget Perspectives Workshops
Voters to the Rescue - Ballot Measures
Budget includes almost $6 billion for 2013-14 in new revenues from voter
approval of Prop 30 and Prop 39
– Prop 30:
• New tax rates on highest-income earners – married taxpayers at
$500,000 or above beginning in 2012 through 2018
• Increases state’s sales tax rate by one-quarter cent beginning this
year through 2016
– Prop 39:
• Requires multistate corporations to use the “single sales factor”
method of apportionment in calculating their taxable income
• The measure ends an advantage signed into law under a previous
budget deal allowing firms choosing the more favorable of two
methods for determining their tax
877.954.4357 • www.sia-us.com
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2013 Budget Perspectives Workshops
New Revenues and Growth
• Increase in GF personal income tax revenues of 1.8 percent
from 2012-13 to 2013-14
• Increase in GF sales and use tax revenues of 12.5 percent
from 2012-13 to 2013-14
• Increase in corporation tax revenues of 20.5 percent from
2012-13 to 2013-14
• Increase in GF revenues of $50 million in 2013-14 as part of
proposal for the state’s Enterprise Zone Program
• Increase in revenues from permanent reauthorization of the
gross premiums tax on Medi-Cal managed care plans and
extension of the Hospital Quality Assurance Fee through 2016
877.954.4357 • www.sia-us.com
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2013 Budget Perspectives Workshops
Key Education Components
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•
•
•
•
•
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K-12 Deferrals — $1.8 billion Prop 98 GF to reduce inter-year budgetary
deferrals
New School Funding Formula — Additional $1.6 billion in Prop 98 GF for
school districts, COEs and charter schools in 2013-14, an increase of 4.5
percent
New County Office of Education Funding Formula — Additional $28.2 million
Prop 98 GF to support a new funding formula for COEs in 2013-14
Energy Efficiency Investments — $400.5 million Prop 98 GF to support energy
efficiency projects per Prop 39
Charter Schools — $48.5 million Prop 98 GF to support projected charter
school ADA growth
Special Education — $3.6 million Prop 98 GF for Special Education ADA growth
K-12 Mandates Funding— Additional $100 million to the K-12 portion of the
mandate block grant to support costs associated with the Graduation
Requirements and Behavioral Intervention Plans mandates
877.954.4357 • www.sia-us.com
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2013 Budget Perspectives Workshops
Key Education Components
• COLA – Select Programs— $62.8 million to support 1.65% COLA for select
categorical programs, including: Special Education, Child Nutrition,
American Indian Education Centers, and the American Indian Early
Childhood Education Program
• Emergency Repair Program — $9.7 million one-time Prop 98 GF Reversion
Account for the Emergency Repair Program
• Average Daily Attendance (ADA) — An adjusted increase of $304.4 million
in 2012-13 and an increase of $2.8 million for 2013-14
• Child Nutrition Program—$77 million in federal local assistance funds to
reflect growth of nutrition programs at schools and other participating
agencies
• Prop 98 Adjustment – Credits over-appropriation of $162.8 million in the
2012-13 Prop 98 guarantee to retire future funding obligations of the CTA
v. Schwarzenegger settlement
877.954.4357 • www.sia-us.com
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2013 Budget Perspectives Workshops
School Finance Reform
• Governor’s criticisms of current system
–
–
–
–
–
State driven
Overly complex
Too much bureaucracy and administrative tasks
Inequitable
Not reflective of student needs
• Goals for new funding system
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–
–
–
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Increase local control – “Subsidiarity”
Reduce state bureaucracy
Reduce inequities
Reflect student needs
Transparency
877.954.4357 • www.sia-us.com
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2013 Budget Perspectives Workshops
Local Control Funding Formula (LCFF)
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•
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Basic Grant
Supplemental (weighted) Grant
Concentration (weighted) Grant
Augmentations to the Base Grant
Add-ons to formula
Separately funded programs
Hold-harmless and transition
877.954.4357 • www.sia-us.com
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2013 Budget Perspectives Workshops
Base Grant
• Base Grant per ADA by grade span (no more
revenue limit)
K-3 = $6,342
4-6 = $6,437
7-8 = $6,628
9-12 = $7,680
• When LCFF fully implemented (estimated in 7years), Base Grant should equal the
undeficited statewide average revenue limit
for the current year ($6,816)
877.954.4357 • www.sia-us.com
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2013 Budget Perspectives Workshops
Supplemental / Concentration Grants
• Supplemental Grant
– Equal to 35% of Base Grant for each English Learner
(EL), Economically Disadvantaged (NSLP eligible),
and/or foster student – unduplicated count
• Concentration Grant
– Equal to 35% of Base Grant For Each EL, Economically
Disadvantaged, and foster student above 50%
concentration threshold
• EL students eligible for Supplemental and
Concentration Grants for no more than 5 years
877.954.4357 • www.sia-us.com
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2013 Budget Perspectives Workshops
Augmentations and Add-ons
• Augmentations to the Base Grant
– K-3 Class Size Reduction funding augments the K-3
Grade Span Base Grant - 11.23% (approx. $712)
– CTE funding augments the 9-12 Grade Span Base
Grant - 2.8% (approx. $215)
• Add-ons
– Home-To-School Transportation and Targeted
Instructional Improvement Grant (TIIG) funding
permanently added to the entitlement for districts
currently receiving those funds
877.954.4357 • www.sia-us.com
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2013 Budget Perspectives Workshops
LCFF Funding
Entitlement Target
TIIG Add-on
Trans. Add-on
CSR Augmentation
Concentration Grant
CTE
Augmentation
Supplemental Grant
Base Grant
877.954.4357 • www.sia-us.com
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2013 Budget Perspectives Workshops
LCFF - Transition
• An “Entitlement Target” will be calculated for each district
– Equal to Base Grant + Supplemental Grant + Concentration Grant +
Augmentations + Add-Ons
– Entitlement Target adjusted each year for COLA, demographic
changes, grade span changes
• 2013-14: each LEA receives at least a hold-harmless amount equal
to 2012-13 funding for revenue limits + included categoricals
• Each FY thereafter: each LEA receives some amount of growth,
added to the hold-harmless amount, that moves the LEA toward its
Entitlement Target
• Administration estimates 7 years to reach Entitlement Targets
– 50% of Prop. 98 growth used to move LEAs toward Entitlement Targets
(other 50% buys down deferrals)
– Growth funding proportionally moves all LEAs toward the Entitlement
Targets
877.954.4357 • www.sia-us.com
26
2013 Budget Perspectives Workshops
LCFF Funding
Entitlement Target
TIIG Add-on
Trans. Add-on
CSR Augmentation
Concentration Grant
Supplemental Grant
Base Grant
877.954.4357 • www.sia-us.com
CTE
Augmentation
Hold Harmless
Funding
2012-13 TIIG
2012-13 Trans.
2012-13
“Included”
Categoricals
2012-13
Revenue Limit
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2013 Budget Perspectives Workshops
LCFF Funding – An Example
Entitlement Target
$46,683,314
Supplemental Grant
$8,295,394
Base Grant
$33,858,750
877.954.4357 • www.sia-us.com
TIIG Add-on
$500,000
District X is a unified school
district with an ADA of
Trans. Add-on
5,000. 25% of its pupils are
$500,000
enrolled in each of the four
CTE
Augmentation grade spans. 70% of the
district’s pupils are EL, NSLP
$268,800
eligible and/or foster youth
CSR
(unduplicated count). The
Augmentation
$890,258
district received $500,000
in Home to School
Concentration Transportation and
Grant
$500,000 in TIIG funding in
$2,370,113
2012-13.
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2013 Budget Perspectives Workshops
Separately Funded Programs
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•
•
•
•
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Federally funded programs
QEIA (for next two fiscal years only)
Special Education
After School Education and Safety
Child Nutrition
Preschool
Various programs not funded in all districts
– e.g., High-Speed Internet Access, Indian Education
Centers, FCMAT
877.954.4357 • www.sia-us.com
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2013 Budget Perspectives Workshops
Expenditure of LCFF Funds
• Base Grant, CTE Augmentation to 9-12 Base
Grant, and Add-ons are unrestricted and
completely discretionary
• Supplemental and Concentration Grants are
“Available for any purpose that benefits the
students generating the funding”, but funding
need not strictly “follow the student”
• Must hold average pupil-teacher ratio in K-3 to
24:1 (or locally bargained ratio) or risk loss of K-3
CSR Augmentation
– 24:1 implemented in stages during transition
877.954.4357 • www.sia-us.com
30
2013 Budget Perspectives Workshops
LCFF – Charter Schools and Basic Aid
• Charter schools are included in the proposal and
treated the same as districts
• Basic aid districts (COEs) are treated the same as
other districts (COEs)
– Basic aid is now defined to be a district (COE) where
local property tax proceeds equal or exceed the
entitlement target
– Districts (COEs) get to keep excess property taxes
– Some basic aid districts (COEs) may start with the
hold-harmless amount greater than their entitlement
target
877.954.4357 • www.sia-us.com
31
2013 Budget Perspectives Workshops
LCFF – County Offices of Education
• County Offices of Education (COE)
– New two-part formula for Base Grant
• Per ADA funding for county community and court schools
• Discretionary general fund based on total ADA within the
county
– COEs eligible for the Supplemental and Concentration
Grants for EL and economically disadvantaged pupils
– Same transition and hold-harmless provisions apply
to COEs
877.954.4357 • www.sia-us.com
32
2013 Budget Perspectives Workshops
New Accountability System
• Governor proposes to redefine fiscal accountability
for LEAs and charter schools
• Eliminates most current programmatic and
compliance requirements
• Makes LEAs and governing boards accountable to the
community with less emphasis on the State
• Requires LEAs to create the District Plan for Student
Achievement – to be concurrently adopted with the
annual budget
877.954.4357 • www.sia-us.com
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2013 Budget Perspectives Workshops
New Accountability System
• The District Plan must address at least the following:
1.
2.
3.
Basic conditions for student achievement (qualified teachers,
sufficient materials, school facilities - Williams type elements)
Programs or instruction for low-income and English language
learners
Implementation of Common Core Standards (progress toward
college and career readiness as measured by the API,
graduation rates, completion of college-prep and CTE courses)
• DOF suggests that no State agency would review the
District Plans
• Instead the K-12 Audit Guide would be revised to require
independent auditors to verify the Plans contain all
mandatory elements and related expenditures
877.954.4357 • www.sia-us.com
34
2013 Budget Perspectives Workshops
Proposition 98
• Prop 98 spending fell from $56.6 to $47.3 billion between 2007-08 and
2011-12 – A decline of 16.4%, not including manipulations
• Most devastating cuts to public education in memory
• 2013-14 Prop 98 funding is proposed to be $56.2 billion or $2.7 billion
higher than the revised 2012-13 guarantee
• Increased GF revenues drive the guarantee upward - Prop 30 and Prop 39
have a positive impact on the guarantee
• Governor dedicates $400.5 million of Prop 39 to meeting the guarantee
• For 2012-13, the Administration estimates that Prop 98 is funded beyond
the guarantee and thus credits those dollars toward future CTA v.
Schwarzenegger settlement obligations
877.954.4357 • www.sia-us.com
35
2013 Budget Perspectives Workshops
2013-14 Revenue Limit Calculations*
Elementary
Unified
H.S.
$6,450
$6,747
$7,748
+ 106
+ 111
+ 128
Revised Revenue Limit
$6,556
$6,858
$7,876
Less Deficit (.22272 x line 3)
- 1,460
- 1,527
- 1,754
Deficited Revenue Limit
$5,096
$5,331
$6,122
Statewide average revenue limit:
COLA (1.65%)
School District Deficit Factor =
County Office Deficit Factor =
22.272%
22.549%
2012-13 K-12 ADA =
2013-14 K-12 ADA =
5,982,430
5,988,397
877.954.4357 • www.sia-us.com
* Assumes: no LCFF implementation,
no def. factor reduction, and full COLA
36
2013 Budget Perspectives Workshops
Deferrals
• Governor stays true to commitment to
eliminate deferrals over time.
• $2.2 billion buy out of inter-year deferrals stays
in place with passage of Prop 30
• Proposes to buy out an additional $1.8 billion in
existing inter-year deferrals
• $5.6 billion in inter-year deferrals would remain,
down from over $10 billion
• $3.5 billion in intra-year deferrals remain, in
addition to 2012-13 “Cash Management Plan”
877.954.4357 • www.sia-us.com
37
2013 Budget Perspectives Workshops
Inter-Year (Cross-Year) Deferrals
Deferral*
Original Amount
Feb 2013 to July 2013
Mar 2013 to Aug 2013
April 2013 to Aug 2013
April 2013 to July 2013
April 2013 to Aug 2013
April 2013 to July 2013
May 2013 to July 2013
May 2013 to Aug 2013
May 2013 to July 2013
$
$
$
$
$
June 2013 to July 2013
Total Inter-Year Deferred
$
$
$
$
2,000.0
1,300.0
763.8
419.0
678.6
2012-13 Budget
Act
$
$
(1,468.0)
(270.5)
$
$
$
$
532.0
1,029.0
763.8
419.0
$
(503.0)
$
$
175.6
800.0
$
177.0
$
1,177.0
$
$
2,500.0
7,396.4
800.0
1,000.0
2,500.0
9,461.4
Current
.
$
.
(2,064.5)
*all amounts shown in millions
2013-14 Budget
$
Proposal
Balance
$
877.954.4357 • www.sia-us.com
1,765.0
5,631.4
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2013 Budget Perspectives Workshops
Intra-Year (Same-Year) Deferrals
Deferral
(in millions)
2011-12 Statutory
(SB 82)
2011-12
Actual
2012-13 Statutory
(AB 103)***
July to September
$
700.0
$
700.0
$
700.0
July to January
$
700.0
$
541.0
$
500.0
August to January
$
1,400.0
$
1,200.0
$
600.0
October to January*
$
2,400.0
$
2,400.0
$
800.0
March to April**
$
1,400.0
$
1,400.0
$
900.0
Total Intra-Year Deferred
$
6,600.0
$
6,241.0
$
3,500.0
* $2,200 from Prin. Apportionment; remainder from categoricals
** $837 from Prin. Apportionment; remainder from categoricals
*** Actual amounts deferred to January will be less than specified in statute
All amounts in millions
877.954.4357 • www.sia-us.com
39
2013 Budget Perspectives Workshops
Mandate Funding
• Remember that THIS February, all districts including those that opted for
MBG, will be filing for costs incurred in the 2011-12 fiscal year
• 2012-13 claims will be the first year impacted by MBG – Decision already
made
• September 30th 2013 districts again have an option for claiming for 201314: continue filing or choose block grant
• Block grant funding proposed to be $300 million for K-14 mandates, or $47
per student for K-12 districts and COEs - $24 per pupil for charter schools
• Folds in ongoing BIP and Grad Requirements
– MBG will not cover prior-year claims for both
– Consistent with the motivation for establishing the MBG, inclusion of
these added mandates creates savings to the State.
877.954.4357 • www.sia-us.com
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2013 Budget Perspectives Workshops
Mandate Funding
• Two mandates approved for claims to be filed in 2013
– Charter Schools IV – Petition review for districts and COEs
– Public Contracts – Requirements imposed on districts
• Five pending mandates approved but pending Ps&Gs
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–
–
–
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Behavioral Intervention Plans
California Public Records Act
Uniform Complaint Procedures
Parental Involvement Programs
Williams Case Implementation I, II, III
• Eight mandate test claims pending
• For prior year claims on Graduation Requirements Mandate and
Behavioral Intervention, districts need to file GR and BIP in Feb 2014 or
lose that prior year funding
– First Time Filing for BIP goes back to 1994/95
877.954.4357 • www.sia-us.com
41
2013 Budget Perspectives Workshops
Politics & Compliance
Under either claiming approach, the statutes requires
districts to comply with all mandates
• The audit guidelines are subject to change each year
• Anticipating the two types of audit requirements under the
options – they are not the same
– Constitutional Funding = Did you claim correctly
– MBG = Did you actually provide the services
No guaranteed funding
• Not allocated to both options deliberately
• How will new mandates get funded now…and in the future?
• What happens when people stop paying attention?
877.954.4357 • www.sia-us.com
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2013 Budget Perspectives Workshops
Mandates - Maintaining Flexibility
You hate mandates – You’re done, you are among those
who opt for MBG
At a minimum you should:
• Ensure the ability of the LEA to accurately assess the best
reimbursement option for the annual decision in September
• Don’t hesitate to get the expertise you need to help you with
the data
• Preserve the district’s flexibility to opt between the MBG &
Constitutional claiming option by maintaining basic processes
• Know Your Risks
– Position the district to maintain a defensible audit position
• Ensure the district’s ability to file any mandates that exist
outside the block grant
877.954.4357 • www.sia-us.com
43
2013 Budget Perspectives Workshops
Governor’s Major Policy
Proposals
877.954.4357 • www.sia-us.com
44
2013 Budget Perspectives Workshops
School Facilities
• Eliminates minimum contribution for routine
restricted maintenance
• Eliminates the required local district set-aside
for deferred maintenance
• Allows districts to use proceeds from the sale
of surplus property for one-time general fund
purposes – after giving Charter Schools first
priority (see Charter Schools section)
877.954.4357 • www.sia-us.com
45
2013 Budget Perspectives Workshops
School Facilities Program
• Governor wants to explore State’s role in school
facilities
– Balance operational needs with funding
– Simplify
– Increase local control
• 2014 bond supported by State Superintendent,
education community
• AB 41 (Buchanan) and SB 45 (Corbett)
• State school bond being discussed at $5-7 billion
877.954.4357 • www.sia-us.com
46
2013 Budget Perspectives Workshops
Parcel Taxes
• Democrats 2/3 control of both houses of the
Legislature
• Democrats have been pushing for years to lower
vote threshold to pass local parcel taxes from
66.7% to 55% - the same as school facilities
bonds
• Public opinion appears to support the lower
threshold
• Fits with Governor’s “subsidiarity”
• SCA 3 (Leno), AB 59 (Bonta), and SCA 7 (Wolk)
877.954.4357 • www.sia-us.com
47
2013 Budget Perspectives Workshops
Capital Appreciation Bonds (CABs)
• Recent press reports make them a hot issue in 2013
• Political imperative fuels an outright ban
– Supported by Legislature and Treasurer, Bill Lockyer
– Assembly Member Hueso will introduce bill
• Discussions of legislative reforms include:
– Limiting school bond financings to 25 years
– Requiring a 4 to 1 repayment ratio – unless a waiver is
granted
– Disclosure (sun-shining)
– Requiring optional redemption after 10 years
– Limit the maximum interest rate from 12 to 8%
– Added oversight by county agencies
877.954.4357 • www.sia-us.com
48
2013 Budget Perspectives Workshops
Prop 39 – Energy Efficiency
• Passed by voters in Nov 2012
– Bond for energy efficiency for K-12, higher ed,
and local governments
– Generates $2.5 billion over 5 years
• Gov. proposes to use $450 million for K-14
with no funds going to higher ed or local
governments
• $550 million in each of next 4 years
• CDE to develop guidelines for K-12 projects
877.954.4357 • www.sia-us.com
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2013 Budget Perspectives Workshops
Prop 39 – Energy Efficiency
• $66 per pupil ADA
• Funds may be used for uses consistent with
the state’s loading order policies, including:
– Construction or modernization of buildings in a
manner that uses less energy
– Purchasing energy efficient equipment
– Undertaking renewable energy projects such as
installation of solar panels and geothermal heat
pumps
877.954.4357 • www.sia-us.com
50
2013 Budget Perspectives Workshops
Adult Ed
• Eliminates existing Adult Ed structure
• Folds $558.9 million in K-12 Adult Ed funding
into the LCFF
• Shifts $15.7 million in K-12 Apprenticeship
funding to Cal. Comm. Colleges (CCC)
• Provides an additional $300 million in Prop 98
funds to CCC for Adult Ed
• New $315.7 million Adult Ed Block Grant
administered by CCC
877.954.4357 • www.sia-us.com
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2013 Budget Perspectives Workshops
Adult Ed
• CCC Adult Ed Block Grant funding allocated
based upon number of adults served
– Only for core program (Elem and secondary ed,
CTE, ESL, citizenship)
• CCC encouraged to “leverage the capacity and
expertise of currently available at K-12 district
adult schools.”
• K-12 districts may continue to operate Adult
Ed programs
877.954.4357 • www.sia-us.com
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2013 Budget Perspectives Workshops
Technology-Based Learning
• Intended to allow schools to more easily offer
asynchronous online courses to students
• Would create a “streamlined and outcomefocused independent study agreement”
• Proposal to rewrite Independent Study law to
fundamentally change how ADA is generated
for all students enrolled in Independent Study
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2013 Budget Perspectives Workshops
Technology-Based Learning
• How it would work:
– Would eliminate all current rules for Independent Study
(including pupil/teacher ratios)
– Parent, teacher and student develop new independent
study agreement that outlines specific learning objectives
– Teacher then determines if student met learning objectives
– If yes = full ADA
– If not = unclear (either no ADA or partial?)
– Would not use testing data – would be teacher’s judgment
– No bill language – details to emerge
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2013 Budget Perspectives Workshops
Charter Schools
Governor reintroduces several proposals from last year:
– Give Charters Priority on Surplus Property for Five Additional Years –
Extends the current one-year requirement that school districts with
surplus property to first offer to sell to charter schools
– Consolidate Charter Financing Authority - Shift the Charter School Facility
Grant Program and the Charter School Revolving Loan Program from the
CDE to the California School Finance Authority
– Simplify Funding for Online Charters - Modify the SB 740 funding
determination process for non-classroom based charter schools by:
1. Limiting it to the first and third years of operation in most instances
2. Requiring charters found out of compliance with minimum
standards and applicable laws to comply with annual funding
determinations
– Allow Online Charters to access Facilities Funding - Expanding the Charter
Schools Facility Grant Program to include eligibility for non-classroom
based charter schools
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2013 Budget Perspectives Workshops
Child Care
• CalWORKS Stage 2 funding decreased $21 million
and State 3 funding increased $24.2 million to
reflect movement between Stage 2 and 3
• Child Care and Development Funds (federal
dollars) decreased $9.8 million due to changes in
carryover funds and in available base grant funds
• Governor calls for stakeholder meetings on
restructuring Child Care
• Funding for Preschool stays flat
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2013 Budget Perspectives Workshops
Nutrition
• Increase of $77.2 million federal funds for
growth
• COLA of 1.65%
• Child Nutrition Breakfast Start-up Program
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2013 Budget Perspectives Workshops
Special Education
•
•
•
•
$3.6 million for Special Ed growth
1.65% COLA
Federal and state funding streams separated
Several Special Education add-on programs
added into the AB 602 base calculation or
consolidated
• AB 3632 funding preserved - not included in
program restructuring
• Increase of $40 million to backfill one-time
support from First 5 Commission in 2012 budget
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2013 Budget Perspectives Workshops
Federal Issues - Sequestration
• Super committee failure to agree on $1.2 trillion in deficit
reductions over 10 years triggered across-the-board spending
cuts - 7.8% ($3.5 billion) Jan 1, 2013
• American Taxpayer Relief Act (fiscal cliff deal) – Jan 2, 2013
– Delayed automatic cuts to March 1, 2013
– Reduced cuts by $24 billion total
– Education cuts reduced to 5.9% (approximately $2.9 billion)
• Three upcoming battles:
– Mid-February, when we reach the debt ceiling
– March 1, the new effective date of sequestration
– March 27, when the current Continuing Resolution expires
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2013 Budget Perspectives Workshops
Federal Issues
• ESEA Reauthorization
– House and Senate continue to be deadlocked
– Action towards reauthorization will be delayed until after
Congress deals with Sequestration, the Debt Ceiling, and
Appropriations – late 2013 or 2014 at the earliest
• NCLB Waiver
– SBE and the SPI pursued a state-defined waiver of the ESEA
mandate to identify schools/LEAs in Program Improvement and
of the specific sanctions imposed by ESEA on those identified
– This waiver was denied in early January 2013
– SBE is considering this issue
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2013 Budget Perspectives Workshops
Other Major Fiscal Issues in
2013
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2013 Budget Perspectives Workshops
Redevelopment
• Effort to pick up $250 million of added 2012-13 savings by elimination of
pass-through agreements defeated
• Budget Act for current year contained language for early termination of
pass-through agreements:
• "(b) When all of the debt of a redevelopment agency has been retired or
paid off, the successor agency must dispose of all remaining assets and
terminate its existence within one year of the final debt payment. When
the successor agency is terminated, all pass-through payment obligations
will cease and no property tax shall be allocated to the Redevelopment
Property Tax Trust Fund for that agency.“
• No current year fiscal impact… should have been done in a policy
committee
• Legislation will be forthcoming to protect pass-through dollars to schools
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2013 Budget Perspectives Workshops
Common Core…and more
• Common Core implementation/relationship
to LCFF
• Next Generation Science Standards
• 2014 adoption of math materials with ELD to
follow
• Reauthorization of assessment system
– CAHSEE – to be or not to be?
– Technology capacity
• API revision
• SARC reform
877.954.4357 • www.sia-us.com
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2013 Budget Perspectives Workshops
School Safety
• With continued National attention on school
shootings and gun violence, expect interest in
school safety
• Renewed attention to School Safety Plan compliance –
Senator Ted Lieu (D – Torrance)
• Renewed Attention to screening for weapons
• Focus on preventing access to school grounds
• Prompts discussion about student mental health
services
877.954.4357 • www.sia-us.com
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2013 Budget Perspectives Workshops
It’s a Proposed Budget
• Huge policy and fiscal decisions that will
indeed be modified
• As economy shifts, proposals are impacted
• The Legislature gets a say
• The May Revision – opportunity to adjust to
political and economic factors
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2013 Budget Perspectives Workshops
Thank You!
We will plan to see you again when we return for a
review of the Governor’s May Revision anticipated to be
released on May 15th 2013
Contact any of the following with questions:
Barrett Snider
Adonai Mack
David Walrath
Jeff Owen
[email protected]
[email protected]
[email protected]
[email protected]
Download this presentation after the last workshop, February 8th, at www.capitoladvisors.org or www.sia-us.com
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