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Parent Academy Topic: Public Schools Funding

Parent Academy Topic: Public Schools Funding. -Our Mission- The mission of the Palmdale School District is to provide each child with a rigorous and relevant academic education, a safe learning environment and the knowledge, skills and attitudes necessary for success in the 21 st Century.

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Parent Academy Topic: Public Schools Funding

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  1. Parent AcademyTopic: Public Schools Funding

  2. -Our Mission- The mission of the Palmdale School District is to provide each child with a rigorous and relevant academic education, a safe learning environment and the knowledge, skills and attitudes necessary for success in the 21st Century.

  3. Outcomes • Basics of California School Finance • Financial Reporting Periods • Building The District Budget • Our Focus On Students • How We Get Our Money • Purchasing/Warehouse • How We Spend Our Money • Historical Financial Data • Behind the Scenes

  4. Basics of California School Finance California School Districts use a system called “fund accounting.” All Revenues and Expenditures are placed in one of several funds. The one that is used to record most of the district’s day-to-day operations is the General Fund (Fund 01), which all districts are required to have. Most of the district’s financial transactions flow through the General Fund. The largest part of the money is for general purposes and is categorized as unrestricted. Some of the revenues that go into the General Fund, however, are restricted to specific uses, usually in compliance with state or federal regulations.

  5. Basics of California School Finance • Our budget covers the essential costs of educating more than 20,000 students. The total Palmdale School District Budget is actually a combination of several funds. • The General Fund is the largest part, at over $140 million, and is the primary operational budget for the district. • When the other funds are added to the District Budget, such as Nutritional Services or Head Start, the entire budget is over $214 million for 2012-13. Our Budget includes the Antelope Valley Special Education Local Plan Area (SELPA) office and the Guidance Charter School.

  6. Basics of California School Finance Other Funds are used to separate revenues from the General Fund and are most often used for purposes other than providing K-12 instruction. The other fund categories can consist of: • Special Revenue Funds • Cafeteria • Child Development • Deferred Maintenance • Special Reserve for Postemployment Benefits • Capital Project Funds • Building Fund • Capital Facilities • Special Reserve for Capital Outlay Projects • Debt Service Funds • Tax Override • Debt Service • Bond Interest and Redemption Each Fund is self-balancing and has its own financial statement with a beginning balance, list of revenues and expenditures, and ending balance. The balances for all funds are shown on the district’s financial report.

  7. Financial Reporting Periods The Budget process occurs all year long through constant review and analysis of financial data. Interim Reports help ensure solvency during the course of the year. Inevitably the estimates used to create the original budget will change somewhat as the year progresses. There are too many unknowns at the time of budget adoption and the Interim Reports allow for adjustments to the original budget. Even the most skillfully prepared budget is just a snapshot in time. Districts are required to certify their financial condition twice during the school year. There are three financial certification that a district issue: • Positive – The district will meet its financial obligations • Qualified – The district may not be able to meet its obligations • Negative – The district will not be able to meet its obligations

  8. Building The District Budget

  9. Our Focus on Students Students are Critical to Revenue • The budget process begins with a careful projection of the number of students who will enroll in the district. • The student count is not just a matter of how many children enroll each year. • For most funding purposes, districts receive income based on the number of students who actually attend class, referred to as Average Daily Attendance (ADA). • Projecting the number of students comes first • The primary focus of budget development is related to General Fund revenues which represent the bulk of the operating money for K-12 instruction • Revenue is largely determined by the state funding through formulas and mandatory programs in which districts must participate • The number of students who attend school is critical to district revenue because most of this funding is provided on a per-pupil basis, adjusted for actual attendance.

  10. Our Focus on Students Enrollment vs. Average Daily Attendance (ADA) Some Factors that affect Enrollment involve: -Birth Rates -Residential Construction -Private Schools -Charter Schools -The Economy Some Factors that affect Average Daily Attendance (ADA): -Illness -Travel -Family Situations/Relocation -The Economy Enrollment is based on the California Basic Education Data System (CBEDS) reporting at the end of the first school month (October) Enrollment represents the number of students actually enrolled in the district Average Daily Attendance (ADA) is the measurement of attendance, or seat time. Actual attendance without regard to excused or unexcused absences ADA is measured at three points in the year: • P1 – Daily Attendance counts first 4 months (Sept-Dec) • P2 - Daily Attendance counts first 8 months (Sept-Apr) • Annual – Daily Attendance counts for fiscal year ADA projections are based on CBEDS enrollment, converted to P1, P2 and Annual ADA based on historical trend data

  11. Our Focus on Students Enrollment History/Projections

  12. Our Focus on Students Enrollment versus Average Daily Attendance (ADA) California schools receive revenue based on Average Daily Attendance (ADA), not on total enrollment When students are absent for any reason, schools lose money. Schools must prepare for student enrollment with teachers, rooms, desks, chairs and support staff, but only receive funds for days students attend. For one school day = $34 = $0 A district’s ADA is calculated by dividing the total number of days of student attendance by the total number of days in the regular school year. A student attending every day would equal one unit of ADA. In simple terms, a district multiplies its revenue limit by its projected ADA to determine its total general purpose funding (1 ADA x $34 = $6,154).

  13. Combined General Fund 01 Historical Financial Data • Trend reports confirm and improve the validity of budget assumptions • The Budget development process leans heavily on assumptions about a district’s students, revenues, and expenditures. Examining trend reports can help improve the validity of these assumptions. • By looking over district budgets for several years, it is possible to identify patterns and past errors in predictions. • The majority of district funds are received through the Revenue Limit (taxes and state aid). The amount is determined through complicated calculations based on the district Average Daily Attendance (ADA). • Staffing and purchasing determinations for the district are based on enrollment numbers and actual revenues is based on ADA.

  14. How We Get Our Money When it comes to money, Palmdale School District shares a school finance system with every other California Public School. The money comes from: • Income and sales taxes • Local property taxes • Miscellaneous local income, fees, interest, donations • California State Lottery Some of our revenue is restricted and can only be spent in certain ways. Most of our money is used to pay staff.

  15. How We Get Our Money California School Funding in More Detail

  16. How We Get Our Money • Revenue Limit Districts are dependent on the average daily attendance (ADA) of students. • Each new student brings more funding to a district. • Declining enrollment districts lose funding. • Changes in local property tax is offset by state aid funds

  17. How We Get Our Money

  18. How We Get Our Money

  19. How We Get Our Money • Revenue Limit Districts are dependent on the average daily attendance (ADA) of students. • Each new student brings more funding to a district. • Declining enrollment districts lose funding. • Changes in local property tax is offset by state aid funds.

  20. How We Spend Our Money The Key to our school district is the people who work here. Palmdale School District values its employees. Typically between 73% and 75% of every General Fund dollar is used for salary and benefits. Since we cannot control our revenue, sacrifices are often required in reducing staff and programs.

  21. How We Spend Our Money Teachers, classroom supplies, support staff, maintenance, utilities, insurance For particular programs or groups of students Expenditure Report 3% These are programs designed to provide extra funding for specific efforts, including those that target different categories of students, such as students with disabilities The state requires that districts maintain a 3% in the unrestricted fund

  22. Combined General Fund 01Historical Financial Data

  23. General Fund 01

  24. Behind the Scenes Other District Funds Child Development Dollars cannot be used for any other purpose Child Nutrition Child Development, preschool, and extended school programs National school lunch program Capital Facilities GO Bond Funds Developer Fees and Redevelopment Funds. For Capital Facilities only Facilities Construction, Renovations

  25. Purchasing/Warehouse • Purchasing • The Requisition • The Purchase Order • The Receiving Document • Responsible for purchasing materials and services for the District Warehouse • Responsible for inventory control, deliveries, shipping and receiving for the District

  26. Purchasing/Warehouse • Methods of Purchasing • Under $15,000 for Public Works, Under $81,500 for equipment, supplies, materials and services and must go out to bid or be able to ride on a piggyback bid • The acquisition of material and/or services totaling less than $6,500 (including sales tax - IST) • Written quotations for more than $6,500 (IST) for materials and /or services shall be solicited to obtain at least three quotes

  27. How To Find Out More • For more detailed information and tools for understanding and explaining California School Finance, go to: www.edsource.org/iss_fin_tools.html • For detailed financial data on districts, counties, and the state, go to the Ed-Data Partnership website: www.ed-data.k12.ca.us • For information and publications about California’s education issues, go to EdSource’s website: www.edsource.org • Also visit the Palmdale School District website: www.palmdalesd.org • Linda Miller, Director of Accounting, Palmdale School District at: lmmiller@palmdalesd.org or 661-266-7228

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