Local Control Funding Formula 101 presentation by the Santa Clara County Office of Education

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Local Control Funding Formula 101 presentation by the Santa Clara County Office of Education. The presentation was provided at the Local Control Funding Formula 101 Community Forum and Discussion held …

Local Control Funding Formula 101 presentation by the Santa Clara County Office of Education. The presentation was provided at the Local Control Funding Formula 101 Community Forum and Discussion held on October 29, 2013, at James Lick High School in San Jose, CA.

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  • 1. Community Presentation Alum Rock, Franklin McKinley and Mt. Pleasant Local Control Funding Formula 101 For School Districts October 29, 2013 5:30 PM
  • 2. Presentation Items 1. Overview of Governor’s 2013-14 Budget 2. Programs Consolidated into Local Control Funding Formula 3. Local Control Funding Formula (LCFF) Calculations 4. Other LCFF Program Requirements 5. LCFF Transition Funding Protection 6. Areas of Concern with LCFF 7. Sample District 8. Questions 2
  • 3. Overview • On Thursday, June 27th, 2013, Governor Jerry Brown signed the 2013-14 State Budget Bill (AB 110) • On July 1, 2013, the K-12 Local Control Funding Formula (LCFF) and AB 97, the corresponding clean-up bill were signed into law • This enacted trailer bill is the biggest change to California’s school finance system since SB 90 more than 40 years ago • LCFF completely changes the way revenue and categorical program funding is distributed to school districts and County Offices of Education (COEs) 3
  • 4. Overview  LCFF replaces the existing revenue limit funding system and more than 40 categorical programs by consolidating them into one revenue stream on a permanent basis  The LCFF time frame for full implementation is eight years  The plan calls for the state to allocate an estimated $25B toward funding the LCFF over the next eight years (through 2020-21)  The 2013-14 Budget provides the following for the first-year implementation:  $2.1B for School Districts and Charter Schools  $32M for County Offices of Education 4
  • 5. Overview  LEAs will receive roughly the same amount of funding they received in 2012-13 plus an additional amount each year to bridge the gap between the current funding levels and the new LCFF target levels  Fiscal year 2013-14 will be an important transition year  Many areas of the LCFF are still being worked out  This update and presentation are based on the information that is currently available. However, there are still many unanswered questions. 5
  • 6. Programs Consolidated Into LCFF Administrator Training Program Adult Education Advance Placement Fee Reimbursement Arts and Music Block Grant Bilingual Teacher Training California Association of Student Councils California High School Exit Exam California School Age Families Education Center for Civic Education Certificated Staff Mentoring Charter School Categorical Block Grant Class-size Reduction (K-3 and 9th Grade) County Office of Education Fiscal Oversight Community Based English Tutoring Community Day School Additional Funding Supplemental Instruction Deferred Maintenance Economic Impact Aid Education Technology Gifted and Talented Education Instructional Materials Fund Realignment Program International Baccalaureate Math and Reading Professional Development Math and Reading Professional Development-EL Middle and High School Counseling National Board Certification New Charter Supplemental Categorical Block Grant Oral Health Peer Assistance and Review Physical Education Teacher Incentive Professional Development Block Grant Pupil Retention Block Grant Reader Services for Blind Teachers Regional Occupational Centers/Programs (ROC/P) School and Library Improvement Block Grant School Safety (and Competitive) Block Grant Small District/COE Bus Replacement Teacher Credentialing Block Grant Valenzuela County Oversight Williams County Oversight 6
  • 7. LCFF-School Districts and Charter Schools • LCFF for school districts and charter schools is calculated in the following order:  Base Grant  Augmentation to the Base Grant  Supplemental Grant  Concentration Grant  Add-ons to the formula • The budget projects the time frame for full implementation of the LCFF to be eight years • On the following slides, we will explain the calculation 7
  • 8. LCFF-School Districts and Charter Schools • Base grant per ADA by grade span Factors Base Grant per ADA K-3 4-6 7-8 9-12 $6,845 $6,947 $7,154 $8,289  Instead of funding based on revenue limits and categorical programs, districts and charter schools are provided Base grants  The are four Base grants per ADA, one fore each of the four grade spans list above  Grade span per-pupil grants are increased annually for a COLA  For 2013-14, the COLA is 1.565% 8
  • 9. LCFF-School Districts and Charter Schools • Augmentation to the Base Grant  K-3 Class Size Reduction (CSR) and 9-12 Career Technical Education (CTE) are additions to the base grant  K-3 CSR funding augments the K-3 grade span base grant - 10.4% or about $712 per ADA  Districts must make progress in reducing its class-size to qualify  Career Technical Education (CTE) funding augments the 9-12 grade span base grant – 2.6% or about $216 per ADA 9
  • 10. LCFF-School Districts and Charter Schools • Supplemental grant  Equal to 20% of the (1) Base Grant for each English Language Learner (ELL), student eligible for free or reduced price meal, and/or foster student (unduplicated count) and (2) Augmentation to Base Grant  Each school district and charter school must report an unduplicated count of eligible pupils annually using the California Longitudinal Pupil Achievement Data System (CALPADS)  The County Office of Education is required to review and validate certified counts of eligible pupils for each school district and charter school to ensure data is reported accurately  The percentage of pupils eligible for Supplemental grants is based on a three-year rolling average 10
  • 11. LCFF-School Districts and Charter Schools •Concentration grant  Equal to 50% of the (1) Base Grant for each ELL, student eligible for free or reduced price meal, and/or foster child above 55% of the total enrollment (unduplicated count) and (2) Augmentation to Base Grant  Reporting and oversight is same as Supplemental grant •Add-ons to formula  Transportation  Targeted Instructional Improvement Block Grant (TIIBG)  Districts and County Offices of Education that receive Transportation and TIIBG funding will continue to have that funding capped at 2012-13 levels, as an addition to their LCFF base grant 11
  • 12. LCFF-School Districts and Charter Schools Revenue Limit vs. LCFF Funding Add-on Concentration Grant Supplemental Grant CSR & CTE Augmentation Tier III & Categorical Revenue Limit Revenue Limit (Pre 2013-14) Base Funding LCFF (2013-14) 12
  • 13. LCFF-School Districts and Charter Schools Revenue Limit vs. LCFF Funding Add-on Concentration Grant Supplemental Grant CSR & CTE Augmentation Tier III & Categorical Revenue Limit Revenue Limit (Pre 2013-14) Base Funding LCFF (2013-14) 13
  • 14. K-3 Class Size Reduction Funding • LCFF provides a 10.4% increase to the K-3 Base Grant or $723 per ADA • To received these additional funds, districts must make progress toward the 24 students per class enrollment target • Districts are expected to reach the maximum average enrollment of no more than 24 students:  At each school site  By the time the LCFF is fully implemented (planned for 2020-21)  Unless an alternative is locally negotiated 14
  • 15. K-3 Class Size Reduction Funding • Annual progress toward the goal of 24:1 is required • Required progress toward the 24 students per class target in proportional to the statewide funding provided to implement the LCFF  For 2013-14, this is 11.78%  For 2014-15, this is projected at 16.49% • Failure to meet the annual enrollment target at any site results in the loss of the K-3 adjustment funding for the entire district • Significant penalty for missing the enrollment target at just one school site 15
  • 16. Deferred Maintenance & RRMA Deferred Maintenance (DM) • DM is now included in the LCFF Base Grant • Districts must continue to make budget planning decisions to include expenditures for DM • Set aside ongoing funds within the LCFF for Deferred Maintenance needs Routine Restricted Maintenance Account (RRMA) • Flexibility to set aside 1% of total General Fund expenditures or less expires in 2014-15 • The 3% set aside will be required after June 30, 2015 • Requirements for the following continues:  Williams requirement  Safe, clean, functional instructional environments for student success 16
  • 17. LCFF Transition Funding Protection Funding model provides several means of protecting LEAs from funding loss during the transition period • Hold Harmless Provision  LCFF provides a hold harmless protection for districts and charter schools based on State Aid received in 2012-13  State aid “hold harmless” test is applied annually, adjusted each year for changes in ADA • Adult Education MOE Requirement  LEAs are required to maintain funding levels for Adult Ed based on the amount expended for these programs in 2012-13 from the funds received for this program  The minimum funding level must be maintained for 2013-14 and 2014-15  LEAs are not required to count any local contribution in establishing the Maintenance Of Effort (MOE) level 17
  • 18. LCFF Transition Funding Protection • Transportation MOE Requirement  Requires Transportation funds to be spent for the purposes of transporting students, with spending to be no less than what districts and COE’s spent in fiscal year 2012-13  The funds are now unrestricted  LEA’s are not required to count any local contribution in establishing the Maintenance Of Effort (MOE) level  COE’s and school districts receiving funds for transportation in 201213 are prohibited from redirecting that funding for another purpose and must continue to provide the same amount to the Joint Powers Agencies (JPAs) to maintain the transportation program 18
  • 19. LCFF Transition Funding Protection • Regional Occupational Center (ROP) MOE Requirement  Of the funds that school districts and County Offices of Education receive for purposes of ROP, they are required to maintain their 2012-13 level of spending for ROPs in 2013-14 and 2014-15 only • Economic Recovery Targets (ERT)  The ERT is designed to provide additional funding under for school districts and charter schools that would not otherwise recover to their pre-recession funding levels under the LCFF 19
  • 20. Areas of Concern with LCFF • Still many unknowns in the new LCFF • No more statutory requirement on education funding  Future state funding is dependent on the economy  Statutory COLA not necessary correspond to the change in funding  State determines how much to put toward LCFF each year • Difficult to evaluate and compare Districts and COEs  Every COE and District funding will be unique • Impact of district ADA on COE base funding  Declining enrollment in some districts • Number of years to reach the targeted funding  New Governor in the future  Changes in the economy  Proposition 30 Expiration Impact 20
  • 21. Sample District Best Case Scenario, But Cautions Remain Funding Per ADA $9,500 $9,000 $8,500 $8,000 $7,500 $7,000 $6,500 $6,000 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 21
  • 22. Sample District Best Case Scenario, But Cautions Remain 2010-11 Alum Rock 2012-13 2013-14 2011-12 1 COLA 1.565% % of Gap Funding2 Gap Funding Increase RL/LCFF State Total Revenue 2.300% $62,851,189 $61,808,500 $60,838,474 $82,672,040 $89,344,262 $ 97,144,406 42,533,224 $ 40,364,200 $ 39,1 ,225 21 $25,214,938 $26,343,291 $26,317,394 $ 9,307,342 $ 7,525,166 $ 7,525,166 $88,066,127 $88,151,791 $87,155,868 $91,979,382 $96,869,428 $104,669,572 P-2 ADA4 Funding Per ADA 1.800% 2015-16 11.78% 16.490% 18.690% $ 3,751,638 $ 5,251,656 $ 5,952,301 $ 3 2014-15 12,222.67 $ 7,205 $ 12,028.66 7,328 $ 11,614.53 11,375.11 7,504 $ 8,086 $ 11,375.11 8,516 $ 11,375.11 9,202 Notes: 1 - per School Services of California Dartboard projection 2 - per Department of Finance estimate 3 - 2013-14 State Revenue includes one-time funding for Common Core 4 - ADA & Socio-Economic factor assumed to remain the same in out years & reflects 2013-14 projection for a $-per-ADA comparison 22
  • 23. Reminder: Areas of Concern with LCFF • Still many unknowns in the new LCFF • No more statutory requirement on education funding  Future state funding is dependent on the economy  Statutory COLA not necessary correspond to the change in funding  State determines how much to put toward LCFF each year • Difficult to evaluate and compare Districts and COEs  Every COE and District funding will be unique • Impact of district ADA on COE base funding  Declining enrollment in some districts • Number of years to reach the targeted funding  New Governor in the future  Changes in the economy  Proposition 30 Expiration Impact 23
  • 24. Questions? 24