Understanding the CA                    State Budget Impact on                    Charter SchoolsCopyright © 2012 Charter ...
TODAY’S SPEAKERS     Chas Cardall          Branche Jones      ORRICK, HERRINGTON      CA LEGISLATIVE         & SUTCLIFFE  ...
AGENDAWhat We Will Cover Today  •    The Issue  •    The Impact  •    The Solution  •    Questions                        ...
THE ISSUE California State Budget •  What is the real issue?    -  One of the biggest problems has been glossed over    - ...
THE ISSUE California State Budget •  What is the delay in funding?    -  This is not a cut – it’s a delay in payment    - ...
THE ISSUE California State Budget •  Who does this impact?    -  Impacts all public schools – including charter schools   ...
THE ISSUE California State Budget •  When will this occur?    -  Already has - began in July    -  Schools with deferral w...
THE IMPACT November Ballot Initiatives •  Overview on Prop 30 + Prop 38                                    Copyright © 201...
THE IMPACT November Ballot Initiatives •  Only Prop 30 passes     -  Existing 21.2% delay in payment assumes Prop 30 passe...
THE IMPACT November Ballot Initiatives •  Prop 30 + Prop 38 Fail     -  Substantial cut in general purpose entitlement fun...
THE IMPACT November Ballot Initiatives •  Only Prop 38 passes     -  Not clear what may happen with funding timing and amo...
THE IMPACT November Ballot Initiatives •  Both Prop 30 and Prop 38 Pass     -  Initiative that receives the most votes wil...
THE IMPACT                                                       30%#                                                     ...
THE IMPACT                                                   120%#                                                   100%#...
THE IMPACT Deferral Comparison •  How does this compare to others?    -  Expect monthly deferrals that result in 21.2% of ...
THE IMPACT      An exercise to put this deferral in context…                                           Copyright © 2012 Ch...
THE SOLUTION What Should You Do? •  Educate yourself     -  Understand the impacts to your school     -  Ask questions    ...
THE SOLUTION Help Spread The Word •  Every charter school in CA should know     -  This 21.2% deferral will affect every c...
THE SOLUTION We’re Here To Help You •  Just ask     -  Reach out with any questions you have     -  We want you to succeed...
QUESTIONS?             Copyright © 2012 Charter School Capital                                                 20
Contact Information:John Helgeson: jhelgeson@charterschoolcapital.orgStuart Ellis: sellis@charterschoolcapital.orgToll Fre...
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Charter School Capital California Budget Impact On Charter Schools 3

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Charter School Capital and a panel of experts provide timely and actionable information regarding the impacts of this funding reduction, an overview of current legislation and insights on how to plan for the cash flow shortfall.

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Charter School Capital California Budget Impact On Charter Schools 3

  1. 1. Understanding the CA State Budget Impact on Charter SchoolsCopyright © 2012 Charter School Capital, Inc.
  2. 2. TODAY’S SPEAKERS Chas Cardall Branche Jones ORRICK, HERRINGTON CA LEGISLATIVE & SUTCLIFFE CONSULTANT John Helgeson Stuart Ellis CHARTER SCHOOL CHARTER SCHOOL CAPITAL CAPITAL Copyright © 2012 Charter School Capital 2
  3. 3. AGENDAWhat We Will Cover Today •  The Issue •  The Impact •  The Solution •  Questions Copyright © 2012 Charter School Capital 3
  4. 4. THE ISSUE California State Budget •  What is the real issue? -  One of the biggest problems has been glossed over -  Focus has been on tax increase initiatives -  But, immediate impact is from 21.2% reduction in general purpose entitlement funds Copyright © 2012 Charter School Capital 4
  5. 5. THE ISSUE California State Budget •  What is the delay in funding? -  This is not a cut – it’s a delay in payment -  It’s in addition to existing deferrals already in place -  21.2% is not taken all at once, but through monthly installments Copyright © 2012 Charter School Capital 5
  6. 6. THE ISSUE California State Budget •  Who does this impact? -  Impacts all public schools – including charter schools -  Most charters don’t have the savings to absorb this state payment delay Copyright © 2012 Charter School Capital 6
  7. 7. THE ISSUE California State Budget •  When will this occur? -  Already has - began in July -  Schools with deferral waivers may not have noticed this yet Copyright © 2012 Charter School Capital 7
  8. 8. THE IMPACT November Ballot Initiatives •  Overview on Prop 30 + Prop 38 Copyright © 2012 Charter School Capital 8
  9. 9. THE IMPACT November Ballot Initiatives •  Only Prop 30 passes -  Existing 21.2% delay in payment assumes Prop 30 passes -  Should be no additional reductions or deferrals -  New tax revenues go into “Education Protection Account” of the State’s General Fund -  Funds in this account to be paid out next June Copyright © 2012 Charter School Capital 9
  10. 10. THE IMPACT November Ballot Initiatives •  Prop 30 + Prop 38 Fail -  Substantial cut in general purpose entitlement funding (trigger cuts) -  More deferrals during the P-1 payment period -  Legislature may enact mid-year budget amendments Copyright © 2012 Charter School Capital 10
  11. 11. THE IMPACT November Ballot Initiatives •  Only Prop 38 passes -  Not clear what may happen with funding timing and amounts -  Some implementing legislation seems likely Copyright © 2012 Charter School Capital 11
  12. 12. THE IMPACT November Ballot Initiatives •  Both Prop 30 and Prop 38 Pass -  Initiative that receives the most votes will be implemented and the other will not be effective Copyright © 2012 Charter School Capital 12
  13. 13. THE IMPACT 30%# 25%# PercentofAnnualRevenuesReceivedEachMonth 20%# 15%# Base#Line# 2011/2012# Pass# 10%# Not#Pass# 5%# 0%# FiscalYear2012;2013 Copyright © 2012 Charter School Capital 13
  14. 14. THE IMPACT 120%# 100%# Cummula&ve)Percent)of)State)Aid)Por&on)GPE) 80%# 60%# Base#Line# 201102012# Pass# 40%# Not#Pass# 20%# 0%# Fiscal)Year)2012=2013) Copyright © 2012 Charter School Capital 14
  15. 15. THE IMPACT Deferral Comparison •  How does this compare to others? -  Expect monthly deferrals that result in 21.2% of your general purpose entitlement -  Delayed until June -  Each monthly payment will be less than originally projected Copyright © 2012 Charter School Capital 15
  16. 16. THE IMPACT An exercise to put this deferral in context… Copyright © 2012 Charter School Capital 16
  17. 17. THE SOLUTION What Should You Do? •  Educate yourself -  Understand the impacts to your school -  Ask questions -  Carefully analyze month-by-month payments to know what your cash flow will look like -  Visit CDE site http://www.cde.ca.gov/fg/aa/pa/iassf12adv.asp -  Plan, plan, plan Copyright © 2012 Charter School Capital 17
  18. 18. THE SOLUTION Help Spread The Word •  Every charter school in CA should know -  This 21.2% deferral will affect every charter school -  If not planned for, it could be significant enough to really hurt some charter school budgets Copyright © 2012 Charter School Capital 18
  19. 19. THE SOLUTION We’re Here To Help You •  Just ask -  Reach out with any questions you have -  We want you to succeed in bringing high quality education to your students -  Sign up for our blog to follow timely information at http://charterschoolcapital.org and click on the blog link •  Charter School Capital provides cash flow assistance to cover the 21% or other delays Copyright © 2012 Charter School Capital 19
  20. 20. QUESTIONS? Copyright © 2012 Charter School Capital 20
  21. 21. Contact Information:John Helgeson: jhelgeson@charterschoolcapital.orgStuart Ellis: sellis@charterschoolcapital.orgToll Free: 877.272.1001http://charterschoolcapital.org Copyright © 2012 Charter School Capital, Inc.
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