1 / 41

Mr. Mack Keep'N You on Track

Mr. Mack Keep'N You on Track . Every Child Counts Symposium January 17, 2013. PowerPoint available at: . www.acsa.org/advocacy. Budget Themes & Thoughts. Basking in Victory Erasing the Deficit Wall of Debt – Work in Progress Counting on Economic Growth

epifanio
Download Presentation

Mr. Mack Keep'N You on Track

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Mr. Mack Keep'N You on Track Every Child Counts Symposium January 17, 2013

  2. PowerPoint available at: www.acsa.org/advocacy

  3. Budget Themes & Thoughts Basking in Victory Erasing the Deficit Wall of Debt – Work in Progress Counting on Economic Growth Investing in Education – Over Time Centerpiece of Budget is “Local Control Funding Formula (LCFF)” 3

  4. 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 • 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 4

  5. 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 5

  6. Governor’s Budget • Erases the LAO’s Projected deficit of $1.9 billion • $1 billion by repaying less of borrowing from special funds ($4.2 billion instead of $5.2 billion) • $300 million from a better economic forecast • Prop 39 Revenue accounting • Increased estimates of property taxes which offset general fund obligations • Extending health care-related taxes and fees • Use of State Highway Account Revenue to pay debt service 877.954.4357 • www.sia-us.com 6

  7. 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 7

  8. 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 8

  9. 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 • Increase local control • Reduce state bureaucracy • Reduce inequities • Reflect student needs • Transparency 877.954.4357 • www.sia-us.com 9

  10. Local Control Funding Formula (LCFF) 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 10

  11. Base Grant • Base Grant per ADA by grade span (no more revenue limit) K-3 = $6,342 7-8 = $6,628 4-6 = $6,437 9-12 = $7,680 • When LCFF fully implemented (estimated in 7 years), Base Grant should equal the undeficited statewide average revenue limit for the current year ($6,816) 877.954.4357 • www.sia-us.com 11

  12. 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 12

  13. 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 13

  14. LCFF Funding Entitlement Target TIIG Add-on Trans. Add-on CSR Augmentation CTE Augmentation Concentration Grant Supplemental Grant Base Grant 877.954.4357 • www.sia-us.com 14

  15. 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 15 877.954.4357 • www.sia-us.com

  16. LCFF Funding Hold Harmless Funding Entitlement Target TIIG Add-on Trans. Add-on 2012-13 TIIG CSR Augmentation CTE Augmentation 2012-13 Trans. Concentration Grant 2012-13 “Included” Categoricals Supplemental Grant Base Grant 2012-13 Revenue Limit 877.954.4357 • www.sia-us.com 16

  17. Separately Funded Programs • 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 17

  18. 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 18

  19. 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 19

  20. 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 20

  21. New Accountability System • The District Plan must address at least the following: • 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 21

  22. 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 877.954.4357 • www.sia-us.com 22

  23. AB 602 Funding • Consolidates funding for several special education program add‑ons into the base AB 602 formula • Budget mentions collapsing 15 funding streams • Only 9 have been identified so far • Approximately $94 million • Two appropriations ($88.7 million and $2.7 million) for regionalized services and program specialist services • $2.5 million for personnel development

  24. AB 602 Funding • The funding for these programs will be collapsed to reduce the number of add-ons • The two Workability funding streams • $13.2 million in low-incidence disability for specialized books, materials, and equipment with $1.7 million for specialized services • $1.1 million and $200k both used for personnel development

  25. Mental Health – AB 3632 • Maintains funding of shift of AB 3632 to education • Preserved - not included in program restructuring • $426 million to SELPAs • $69 million from federal special education funds • Increase of $40 million to backfill one-time support from First 5 Commission in 2012 budget

  26. 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 26

  27. 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 27

  28. State Mandates • Increase the education mandate block grant by $100 million • Intends to add both the Behavior Intervention Plan mandate and the High School Science Graduation mandate into the block grant • 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.

  29. Mandate Funding • 2012-13 claims will be the first year impacted by MBG – Decision already made • September 30, 2013 districts again have an option for claiming for 2013-14: continue filing or choose block grant • 77 percent of school districts and charter schools applied for 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 877.954.4357 • www.sia-us.com 29

  30. 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 • 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 30

  31. Technology-Based Learning • Intended to allow schools to more easily offer asynchronous online courses to students • Would create a “streamlined and outcome-focused independent study agreement” • Proposal to rewrite Independent Study law to fundamentally change how ADA is generated for all students enrolled in Independent Study 877.954.4357 • www.sia-us.com 31

  32. 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 877.954.4357 • www.sia-us.com 32

  33. 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 33

  34. 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 34

  35. Key Education Components • 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 35

  36. 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 36

  37. 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 877.954.4357 • www.sia-us.com 37

  38. 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 877.954.4357 • www.sia-us.com 38

  39. 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 39

  40. 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 877.954.4357 • www.sia-us.com 40

  41. Thank You! Adonai Mack Legislative Advocate amack@acsa.org (916) 444-3216

More Related