FINANCE COMPS PREPARATION STUDY GUIDE

  • 386 views
Uploaded on

 

More in: Business , Technology
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Be the first to comment
    Be the first to like this
No Downloads

Views

Total Views
386
On Slideshare
0
From Embeds
0
Number of Embeds
0

Actions

Shares
Downloads
0
Comments
0
Likes
0

Embeds 0

No embeds

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
    No notes for slide

Transcript

  • 1. FINANCE COMPS PREPARATION STUDY GUIDE
  • 2. California Statistics
    • student demographics, enrollment growth, expenditures comp. with nation
  • 3. Budget Estimation
    • Expenditures – enrollment projections factors – births, in-migration, new programs, salaries, & student-teacher ratio (class size, most important)
    • Revenues – enrollment, ADA, COLA, Categorical monies, lottery
  • 4. Categorical Funds
    • Categorical Funds are restricted funds for specific purposes only, from both the state and Fed. gov’t. (Title I and Child Nutrition largest from Fed. gov’t),
    • require greater restrictions.
    • Block Grants & Mega Item concept.
    • Some encroachment for Spec. Ed., Class Size Reduction (also student transportation and food services).
  • 5. Budget Process
    • ongoing
    • public hearing required
    • most districts use line item budget for general fund
    • historical/incremental process means using the prior year as the starting point
    • Program budgeting – PPBS complex process used in past, categorical funds use program budgets more often
  • 6. Source of Income
    • 2/3 or more of district’s money comes from the state (counting redistributed property taxes is 85%+)
    • 9-13% from the Fed. Gov’t
    • The rest is local
  • 7. School Year length
    • at least 180 days for pupils, Fiscal Year = July 1-June 30
  • 8. Types of Districts in CA
    • most are elementary
    • unified
    • Secondary
    • About 1000 Districts
  • 9. CBO
    • credential not required in CA., qualifications:
    • business operations,
    • collective bargaining,
    • accounting, economics
  • 10. Funds
    • General fund is largest and most active – required for all districts includes both restricted and unrestricted revenues and expenditures (e.g. special education)
    • there are others such as cafeteria, (also bond interest and redemption, building fund, deferred maintenance, adult education, child development etc.)
  • 11. Taxation
    • consumption tax (sales tax, tobacco, gasoline, etc.)
    • Ad Valorem- “According to Value” Examples: Sales Tax- according to price/cost; Property Tax according to property/market value
  • 12. Student charges by the District
    • Student transportation to and from school (except for indigent, SPED),
    • not for textbooks and supplies or fees for extra-curricular activities.
  • 13. AB1200
    • Why passed: imposes greater fiscal accountability and control on districts and county offices of education – based on bankruptcy of some districts
    • County school superintendent reviews interim reports to check fiscal solvency
  • 14. Legislation
    • SERRANO V. PRIEST - Calif. Supreme Court Case (1976 – orig. filed in 1968) that held the CA system of funding schools unconstitutional - because its reliance on property taxes made per pupil expenditures unequal. Court ordered that property taxes and per pupil expenditures should be equalized (within a $100 band)
    • PROPOSITION 13 - An initiative proposition (1978) creating a constitutional amendment to limit property tax increases to 1% a year and limited increases on assessed value to 2% a year. Effect was to shift funding schools from local property taxes to state funding of schools (also cities/counties) Impact on schools - more dependent on the state economy
    • PROPOSITION 98 - and its amendment “Proposition 111” A constitutional amendment to establish base minimum funding for K-14. It had four provisions and 3 tests modified by Prop. 111. . Prop. 98 also modified the Gann limit. Impact on schools - guaranteed funding, also tied in to the state economy
  • 15. Audits
    • annual external audits required (also for student body funds),
    • reports financial condition, accounting methods, compliance laws
  • 16. Gann Spending Limit
    • Approved by voters, 1979, CA Constitutional Amendment
    • Limits all state agencies, including school districts, to its max level Gann limit
    • Adjusted annually for changes in population and U.S. CPI (lesser) or CA per capita personal income
    • Index was changed by Prop 111, (1990)
  • 17. Revenue Limit
    • Money (income) received by a District for general education from the state (general purpose money)
    • Is distributed on a per pupil basis (ADA)
    • Made up of state funds and local property taxes
    • Categorical Aid is in addition to the revenue limit funding
  • 18. Student Body Funds
    • frequent problems in audits
    • fund raisers to be approved by principal and student council
    • value/purpose
    • to function properly must have: minutes of meetings, constitution (purpose of organization), policies/procedures for officers, fund-raisers, expenditure approval
    • school boards have legal responsibility for regulations
    • what are legitimate fund raisers – not recommended are rummage sales, can’t raise funds for what school district should buy (e.g. textbooks), raffles are illegal
    • Food in Elem Schools – to be sold only after the noon meal
  • 19. Maintenance and Operations
    • Maintenance – repairs/replacement (grounds, buildings, equipment)
    • Operations – housekeeping/custodial to keep plants functional; work order system – advantages to keep track of hours and costs
  • 20. Facilities
    • Age of CA school buildings – over half over 30 years old
    • General Obligation Bonds- most often used method to raise funds
    • Bonds : State (requires simple majority, also for other state facilities such as prisons) and District bonds (require 55% majority), have been inadequate to meet the needs
    • state building fund - year-round schools get incentives for construction funds
  • 21. Food Services
    • contracting out not necessarily better, is a separate fund, free/reduced lunch require record keeping, (again, encroachment an issue in some SDs)
  • 22. Reserve for economic uncertainties
    • 3% for majority of districts in CA
    • Range 1-5%
    • 1% for LAUSD, 5% for small districts
  • 23. Lottery funds
    • Not major part of revenues (1-2% of district’s budget)
  • 24. Vouchers
    • recent trend – provide parents options
    • related to choice, political issue,
    • critiqued as not being in accord with democratic (not party definition) tradition of public education in America
  • 25. Budget Accounts
    • Account codes are prescribed by the state and found in the California School Accounting Manual. Account codes have 6 elements: fund/group, resource, project year, goal, function, and object/services.
    • Expenditures are shown in the series 1000-7000 – 1000’s are certified personnel, 2000’s are classified personnel, 3000’s benefits, 4000’s books and supplies, 5000’s are services and other operating expenditures, 6000’s capital outlay, 7000’s other outgo.
    • Salaries and Benefits are the largest expenditures (85 + %).
    • Revenues are placed in 8000 series.
  • 26. Budget forms and areas
    • are prescribed by the CA Dept of Educ. and are uniform across the state
  • 27. Food Sales
    • are restricted and regulated – e.g. in elementary schools may be sold after the noon meal- authorized by School Board
  • 28. Special Education costs
    • 3-7 times higher than regular education
    • student encroachment currently 20-25%
  • 29. Glossary
    • Review terms in text, FCQ #4, For example:
    • Employee Benefits
    • Revenue Limit
    • Second Period
    • Attendance / P-2