Budgeting for Equity School Board Meeting January 15, 2014

1. Budgeting for Equity School Board Meeting January 15, 2014 Presenter: Dr. Gary Yee, Superintendent v.10

2. Roadmap • District Overview • Unrestricted Revenues • Distributing Resources & Addressing Student Needs • Board Policy & New Budget Proposal Alignment • Implementation & Planning • Budget Engagement Timeline

3. District Overview I.

4. A. District Fast Facts- Who are we serving? • 2013-14 day 20 Count Enrollment 35,297 (includes non-SDC). • 2014-15 Projected Enrollment 35,087 (includes non-SDC). • Number of schools- 86 schools • Approximately 74% LCFF percentage (unduplicated) • Approximately 11,457 English Language Learners (ELLs) • Approximately 267 Foster Youth in OUSD

5. B. What are we trying to accomplish? All students, in EVERY school have access to a well-resourced quality school program with additional resources designated to support students with the highest needs aligned with District-wide and school site strategies. Vision • Maximizing the amount of OUSD resources allocated to school sites • Distributing OUSD financial resources to schools that considers the varying student needs and neighborhood conditions • Empowering school leaders to budget and expend OUSD financial Resources • Aligning the allocation & expenditure of OUSD financial resources to the achievement of continuous improvement of school quality & student outcomes • Providing the public accurate, timely, and easily comprehensible OUSD financial management information at school, department, and district-wide levels. Values

6. Unrestricted Revenues II.

7. A. Budgeting 101- Definitions • Base- The State provides each school district a per pupil base grant, used to support the basic costs of instruction and operations. Base grant amounts will vary between the grade spans of K-3, 4-6, 7-8, and 9-12 to reflect the differential costs of educating pupils in different grade spans. • Supplemental- State allocates to school districts additional funds on top of the base for students in the categories of Low Income, ELLs and Foster Youth • Concentration- State allocates funds to school districts who have more than 55% of their populations designated as high need

8. B. How much money do we project we will receive from the State LCFF? *Note: LCFF projection based on a 74% LCFF (unduplicated) calculation & estimated COLA *Note: Governor Budget Proposal is projected to increase LCFF allocation and will be revised

9. C. What are our total unrestricted revenues?

10. D. General Fund Unrestricted Expenditure Categories • Legally Required District-Wide Obligations- Required cost and obligations (e.g. State Emergency Loan, Charter Pass Through Payment, Audit Findings etc.) • School Site Budget- The allocation provided to school sites for school-based decision making to meet the needs of students • Direct Services at School Sites- Services funded by central office yet services are directly at school sites (e.g. Special Education, custodians, School Security Officers, school, counselors, accounting & auditing support etc.) • Central Office Infrastructure- Services to school sites managed at the central office (e.g. Finance, Human Resources, performance management, instructional services, legal services, central administration, etc.) • *Note: Facilities funds are restricted bonds.

11. Maximizing Allocation to School Sites E. 2014-15 Allocation Percentage at a glance • State Loan • Charter Pass Through • Audit Findings *** Funding that is taken off the top – before it reaches us (percentage varies) 5.8% 87% Proposed School Site Allocation & Program Services (e.g. Special Education, counselors, nurses, SSOs etc.) TOTAL AMOUNT GOING TO OUSD after the “Taken Off the Top” Proposed Central Office Infrastructure & District-Wide Cost (administration, license fees, parcel tax collection fees etc.) 13% 88% GOAL: To increase allocation percentage to school sites by 2015-16

12. F. Expenditures & Percentages 2014-15

13. Distributing Resources & Addressing Student Needs III.

14. A. Methodology- LCFF Budgeting Approach • Use LCFF funds in the following manner 2014-15 - To secure the base (Fully funded staff and provide dependable discretionary funds) - To provide additional dollars for Supplemental and Concentration (targeted to students in the following categories low income, Foster Youth, and ELLs & neighborhood conditions) • Use LCFF funds in the following manner by 2020-2021: -80% of the funds allocated to Base -12% of the funds allocated to Supplemental -8% of the funds allocated Concentration

15. III. School Budgets: The 5-Layer Cake (at-a-glance) LAYER 5: TITLE I/Restricted Funds to address specific student needs beyond the base requirements- School Based Decisions Continuing, Remains the Same EQUITY Students LAYER 4: LCFF Concentration Funds to address environmental factors & aligned to LCAP- through school based decisions EIA/SCE and EIA/LEP to follow students EQUITY Environment New $$$. State Rules forthcoming in January 2014 LAYER 3: LCFF Supplemental Funds to address ELLs, Poverty, Foster Follows the student & aligned to LCAP School Based Decisions EQUITY Students Continuing, Remains the Same 2014-15 LAYER 2: EIA- SCE & LEP- Flex Funds to address student achievement School Based Decisions LAYER 1: BASE- Unrestricted Fully Funded & Fully Staffed Requirements FTE +Guaranteed Discretionary Funds (requirements & fixed) * Proposed Changes & Reforms DRAFT Document

16. B. LCFF projected funds growth over 8 years GOAL!!! 2020-21 LCFF $60M 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 $11.4M $15M $15.4M Base $255,525,597

17. New Budget Proposal &Board Policy Alignment IV.

18. 1 New Proposal Maximizes Funding to School sites Superintendent’s Proposal Includes Maximizing Funding to School Sites by… 1) Fully Funding Schools at 100% by removing ADA % from allocation formula Maximize Resources to School Sites 2) Increasing discretionary funding to sites with regards to Special Education students to 100% instead of 20% 3) Increase school site revenue and services from 85% to 87% of the revenues for staffing and school services 2014-15; Goal 88% 2015-16

19. 2 New Budgeting Proposal Greater Equity, Data-Driven, Simple and Transparent 1) LCFF Supplemental Funds provided to school sites with students who are low income, foster youth and English Language Learners 2) LCFF Concentration funds provided to schools with high environmental factors (accounts for neighborhood conditions) Greater Equity, Data-Driven, Simple & Transparent 5) Maintains school-based decision-making by the people who are closest to the students 3) Removes balancing pool so that ALL schools are fully funded and fully staffed for required positions and programs 4) Removes the complexity in budgeting & is data-driven

20. New Proposal is Student-Centered, Focused on Quality & Student Outcomes 3 Focused on students and empowers school communities to work together to make data-driven decisions for improved student outcomes… Accountability Tools CSSSP SQR LCAP Balanced Scorecard Core Waiver Student Centered services that addresses student social emotional needs; Community Engagement Includes and requires accountability for improving academic outcomes for students Posted on Public Website; Aligned to student and school data as well as results! http://www.ousd.k12.ca.us/domain/3220

21. Implementation & Planning IV.

22. 1 Q: Will School Site Leaders and Communities Maintain Site Based Decision Making? A: Yes, school sites maintain site based decision making. Practitioners & Community closest to students will: • Have flexibility to choose services & design program for increased student achievement • Use data to increase student achievement • Work with communities to ensure quality decisions for improved outcomes for children • Develop school plans to document and monitor progress

23. 2 Q: What accountability structures will be in place to ensure greater equity and improved outcomes for students? • Budgeting priorities • Increase H.S. Graduation Rates • Common Core State Standards • Eliminate Disproportionality • Addressing the needs of • Low income • Foster youth • English Language Learners • School Quality Standards • Site Governance Policy • School-Based Budgeting • Community Schools Strategic Site Plan (CSSSP) • Balanced Scorecard • Accountability Plan for increased student outcomes • Requires community participation • Established accountability team

24. 3 Q: Is there an implementation plan & timeline for the new budgeting proposal? A: Yes. The Superintendent & Staff will lead a coordinated effort to ensure all deliverables are met.

25. C. Board Framework Alignment with to New Budgeting System Proposal Board Framework New Budget System Proposal • Empowering schools to budget and expend OUSD financial resources. • Maximizing the allocation of OUSD financial resources to schools. • Distributing OUSD financial resources to schools that account for varying student needs and neighborhood conditions. • Providing the general public with accurate, timely, and easily comprehensible OUSD financial management information at all OUSD organizational levels. • Removes ADA%, schools will receive 100% of their budget allocation • Provides base FTE and discretionary funding for site-based management of funds and FTE • 88 % of funds allocated to school site budgets and central services at school sites • Includes supplemental funds for equitable distribution for poverty, ELL and Foster Youth • Includes Concentration funds for Environmental Factors as criteria for addressing neighborhood conditions in budgeting • Includes integration of CSSSP, Core Waiver, and LCAP in budget development process • School sites flexibility and decision-making control over spending choices

26. Budget Engagement Timeline V.

27. January & February Budgeting Engagement Opportunities To Be Continued…All Year January January • Superintendent attends All City Council budget discussion • Principal Advisory Committee Retreat on Budgeting and Priorities • School site principals engage with SSC, parent and staff community about new budget proposal elements (open to the public) • School Board vote on School Based Budgeting Policy January 15th (Open to the Public) • Superintendent appoints accountability teams with regular updates to Board on implementation Progress • School Site Leaders & Community Receives Allocations • School Site Budget Development and CSSSP Development Process begins with central supports • School Site Councils review student and school data, set budgeting priorities (open to the public) • PAC (Principal Advisory Committee) working with staff on budget development implementation

28. January & February Budgeting Engagement Opportunities To Be Continued…All Year February February • Schools receive budget profiles and allocation worksheets (for public view) • School Site Councils review student and school data, set budgeting priorities (open to the public) • SSC approves restricted budget priorities • School sites attend budget development training and sessions • Regular updates on implementation progress from Implementation Team • School sites complete budgets development sessions on labor & staffing • School sites continue to document budget priorities, strategies and plans in the school site planning process (CSSSP)- (Open to the public) • Superintendent continues to meet with community stakeholders, organizations, partners and bargaining units • PAC (Principal Advisory Committee) working with staff on budget development implementation

29. Thank You!!!!