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Governor’s Proposals for the 2013-14 State Budget and K-12 Education. Presented to the TRUSD Board of Trustees January 29, 2013. Rob Ball Kate Ingersoll Associate SuperintendentExecutive Director Business Support ServicesFiscal Services. Education Receives More. - PowerPoint PPT Presentation
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Governor’s Proposals for the 2013-14 State Budget and K-12 Education
Presented to the TRUSD Board of Trustees
January 29, 2013
Presented to the TRUSD Board of Trustees
January 29, 2013
Rob Ball Kate IngersollAssociate Superintendent Executive DirectorBusiness Support Services Fiscal Services
Rob Ball Kate IngersollAssociate Superintendent Executive DirectorBusiness Support Services Fiscal Services
Education Receives More . . . For the first time in five years - an increase in funding
Revenue limit deficit still more than 20%
The Governor continues to deal with the “wall of debt”
Proposition 98 guarantee could grow at 3.4% to 5.3% rate over the next several years
Other forecasts have proven to be overly optimistic
Manipulations of Proposition 98 could strangle education funding
Glory years funded by highly educated workforce
Distribution Method is Different Slightly higher funding – New method of distribution – the LCFF
Revenue limits and categorical programs are replaced by base grants and supplemental grants over a phase-in period
The stated goal is to focus more resources on California’s most needy students
$971
($4,458)
$500
($6,842)
$1,205
($1,976)
$543
($3,601)
$948
$167
$1,018
($7,000)
($6,000)
($5,000)
($4,000)
($3,000)
($2,000)
($1,000)
$0
$1,000
$2,000
2008-09 2009-10 2010-11 2011-12 2012-13 2013-14
General Fund ReserveEnacted Budget vs. Final Reserve
(in millions)
Enacted Budget Final Reserves One Year Later
?
State Budget Reserve
Forecast
Per-ADA Revenue Volatility
Per-ADA Revenue Change
0%
-15%
-10%
-5%
0%
5%
10%
15%
1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14
Average 1.5%
Proposition 98 Major Proposition 98 budget changes for K-12 education include:
$1.8 billion to reduce interyear deferrals to $5.6 billion
$1.6 billion to begin implementation of LCFF for school districts
$400.5 million to support energy efficiency projects in schools from Proposition 39 revenues
$100 million increase for the K-12 Mandate Block Grant to fund the Science Graduation Requirement and Behavioral Intervention Plan mandates
$62.8 million for a 1.65% COLA for selected categorical programs
$48.5 million for charter school ADA growth
Revenue Limits The Governor’s Budget makes no reference to current law and
revenue limit funding
There is no direct reference to the statutory COLA
Provides a 1.65% COLA for selected categorical programs and sufficient funding to increase support for LEAs by 4.5% under the LCFF
There is no reference to the current 22.272% deficit factor
Nevertheless, until state law is changed, revenue limits are the means by which state apportionment aid is distributed to LEAs statewide
2013-14 Revenue Limit Factors
Statutory COLA
District Type2012-13
3.24% (actual)
2013-14
1.65% (estimated)
Elementary $202 $106
High School $243 $128
Unified $212 $111
Revenue Limit Deficit Factors8
.14
0%
11
.01
0%
10
.12
0%
8.8
01
%
8.8
01
%
8.8
01
%
6.9
95
%
0.0
00
%
0.0
00
%
0.0
00
%
3.0
02
%
2.1
43
%
0.8
92
%
0.0
00
%
0.0
00
%
7.8
84
%
18
.35
5%
17
.96
3%
20
.60
2%
22
.27
2%
22
.27
2%
0%
5%
10%
15%
20%
25%
30%
35%
Base Revenue Limit After Deficit Factor at TRUSD
$5,331
Base Revenue Limit History
$6,621
$6,405
$5,948$5,862$5,819$5,896
$5,635
$6,950
$7,212 $7,187
$7,330
$7,542$7,653
$5,000
$5,500
$6,000
$6,500
$7,000
$7,500
$8,000
2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14Year
Funded Base Revenue Limit
Base Revenue Limit
Apportionment Deferrals $1.8 billion in 2013-14 to further reverse the interyear K-12
apportionment deferrals that were implemented before and during the economic downturn beginning in 2008-09
During the peak of the downturn, approximately 45% of state aid payments owed to school districts were deferred to the following year
This deferral buy down is a one-time expenditure and does not impose a similar cost on the state in subsequent years
For 2012-13, the state reduced K-12 deferrals by $2.2 billion
At the end of 2013-14, the Governor’s Budget estimates that $5.6 billion in deferrals will remain
Governor Brown is again proposing a major overhaul of California’s system of school finance
California’s current school finance system is “overly complex, administratively costly, and inequitably distributed”
The Governor proposes a sweeping reform of the state’s school finance system with the Local Control Funding Formula (LCFF)
Sufficient funding to increase support for LEAs by 4.5% under the LCFF
In 2013-14, the deficit factor would remain unchanged at 22.272%
Local Control Funding Formula
Major LCFF Elements The LCFF would replace revenue limits and most categorical
program funding
Funding would generally be flexible
Elements of the proposed formula
A base grant target equal to the undeficited statewide average base revenue limit per ADA – $6,816 (includes the 1.65% COLA)
Added funding for K-3 Class-Size Reduction (CSR) and 9-12 Career Technical Education (CTE)
Major LCFF Elements Additional funding based on the demographics of the schools,
including:
English Learner population
Pupils eligible for free and reduced-price meals
Foster youth
These additional amounts will be calculated as 35% of the base grant times the number of eligible students
Concentration grant for 35% of the grade span base grant multiplied by the districtwide % eligible students that exceed 50% of total enrollment
LCFF Grade Spans
Factors K-3 4-6 7-8 9-12
Grade Span Base Grant per ADA
$6,342 $6,437 $6,628 $7,680
Adjustment factors
11.2% CSR
-- --2.8% CTE
CSR, CTE amounts
$710 -- -- $215
LCFF and Categorical Programs Other elements of the formula:
Special Education, Child Nutrition, QEIA, After School Education and Safety, and other federally mandated programs are not included in the formula
Transportation and Targeted Instructional Improvement Grant (TIIG) funding continue as add-ons to the formula for those school districts that currently receive funding through these programs
And the funds can be used for any educational purpose
Timeline: Phased in over seven years – completed in 2020-21
Federal Fiscal Cliff“Fiscal Cliff” put in a much better perspective
U.S. tax revenue: $2,170,000,000,000
Federal budget: $3,820,000,000,000
New debt: $1,650,000,000,000
National debt: $14,271,000,000,000
Recent budget cuts: $38,500,000,000
Let’s now remove 8 zeros and pretend it’s a household budget:
Annual family income: $21,700
Money the family spent: $38,200
New debt on the credit card: $16,500
Outstanding balance on the credit card: $142,710
Total budget cuts so far: $38.50Source: Anonymous