Association of Chief Business Officials Association of Chief Business Officials 2013 Fall Conference — October 28, 2013 2013 Fall Conference — October 28, 2013 The New K-12 Funding System Theresa Tena, Vice President Theresa Tena, Vice President Community College League of California Community College League of California Michelle McKay Underwood, Director of Legislative Services Michelle McKay Underwood, Director of Legislative Services School Services of California, Inc. School Services of California, Inc. Sheila G. Vickers, Vice President Sheila G. Vickers, Vice President School Services of California, Inc. School Services of California, Inc.
A Brief History of California School Finance
2 A Brief History of California School Finance A Brief History of California School Finance Why does history matter? Answer: Because history repeats itself There have been four major factors that have shaped California’s school finance system over the last 40 years: Court decisions Statewide ballot initiatives The economy Major legislation These factors have influenced the perspectives of lawmakers, activists, education policymakers, and the broader community The enactment of Governor Brown’s Local Control Funding Formula (LCFF) in June 2013 marks the next major chapter in California school finance
3 School Finance Timeline School Finance Timeline 1971 Serrano v. Priest Decision 1972 Legislature Enacts SB 90 1978 Voters Enact Proposition 13 1979 Voters Enact Proposition 4 Gann Limit 1988 Voters Enact Proposition 98 1993 Legislature Enacts SB 813 2004 Williams Lawsuit Settled 2013 Legislature Enacts AB 97, The Governor’s LCFF Reform 1970s 1980s 1990s 2000s 2010s Great Recession
4 A Brief History of California School Finance A Brief History of California School Finance The LCFF replaces the 40-year-old revenue limit and 50+ categorical programs Revenue limit entitlement calculations were very complex Add the statutory cost-of-living adjustment (COLA) to the prior year’s base revenue limit per average daily attendance (ADA) whether the COLA is funded or not Multiply the result by current year ADA Then apply the deficit factor Many adjustments and add-ons throughout – pages and pages of calculations The deficit factor reflects the cumulative effect of unfunded COLAs and revenue limit cuts The funding is eventually provided prospectively
10% 15% 20% 25% 30% 0% 5% 5 1993-94 8.140% 1994-95 11.010% Revenue Limit Deficit Factors Revenue Limit Deficit Factors 1995-96 10.120% 1996-97 8.801% 1997-98 8.801% 1998-99 8.801% 1999-00 6.995% 2000-01 0.000% 2001-02 0.000% 2002-03 0.000% 2003-04 3.002% 2004-05 2.143% 2005-06 0.892% 2006-07 0.000% 2007-08 0.000% 2008-09 7.884% 2009-10 18.355% 2010-11 17.963% 2011-12 20.602% 2012-13 22.272%
Basics of the Local Control Funding Formula
7 Assembly Bill 97 – The LCFF Assembly Bill 97 – The LCFF Enacted as a trailer bill to the 2013-14 Budget Act, Assembly Bill (AB) 97 (Chapter 47/2013) is the most sweeping revision to California’s school finance system since SB 90 more than 40 years ago Governor Brown first unveiled his reform proposal in January 2012 as the Weighted Student Formula This proposal, however, was rejected by the Legislature Urging reform of the system as education’s funding cuts are restored, the Governor championed his LCFF proposal as a matter of civil rights “Treating unequals equally is not justice,” explained Governor Brown in his January press conference unveiling the LCFF The final vote on AB 97 was 65 ayes to 12 noes in the Assembly and 38 ayes to 0 noes in the Senate
8 LCFF Target Entitlement Calculation LCFF Target Entitlement Calculation Each year the entitlement upon full implementation (2020-21) is calculated for each K-12 agency And the amount appropriated in the State Budget determines growth toward the target entitlement for that year $2.1 billion translates to 11.78% growth toward target in 2013-14 2013-14 target entitlement calculation: Grade span per-pupil grants plus COLA Factors K-3 4-6 7-8 9-12 Base Grant per ADA $6,845 $6,947 $7,154 $8,289 COLA @ 1.565% $107 $109 $112 $130 Base grants – 2013-14 $6,952 $7,056 $7,266 $8,419
9 LCFF Target Entitlement Calculation LCFF Target Entitlement Calculation 2013-14 target entitlement calculation K-3 Class-Size Reduction (CSR) and grades 9-12 Career-Technical Education (CTE) adjustments are additions to the base grant CTE is unrestricted; CSR requires progress toward maximum site average of 24 students enrolled in each class Factors K-3 4-6 7-8 9-12 Base grants – 2013-14 $6,952 $7,056 $7,266 $8,419 Adjustment percentage 10.4% CSR - - 2.6% CTE Adjustment amount $723 - - $219 Adjusted grant per ADA $7,675 $7,056 $7,266 $8,638
10 LCFF Target Entitlement Calculation LCFF Target Entitlement Calculation 2013-14 target entitlement calculation Supplemental and concentration grant increases are calculated based on the percentage of total enrollment accounted for by English learners, free and reduced-price meal (FRPM) program eligible students, and foster youth Factors K-3 4-6 7-8 9-12 Adjusted grant per ADA $7,675 $7,056 $7,266 $8,638 20% supplemental grant $1,535 $1,411 $1,453 $1,728 50% concentration grant (for eligible students $3,838 $3,528 $3,633 $4,319 exceeding 55% of enrollment)
11 LCFF Target Entitlement Calculation LCFF Target Entitlement Calculation A sample 2013-14 target entitlement calculation: A district with 60% eligible students (about the statewide average) would calculate the following LCFF target grants for 2013-14 Factors K-3 4-6 7-8 9-12 Adjusted grant per ADA $7,675 $7,056 $7,266 $8,638 % Enrollment eligible 60% 60% 60% 60% (example) 60% of Supplemental $921 $847 $872 $1,037 5% of Concentration $192 $176 $182 $216 (percentage above 55%) Total 2013-14 LCFF target grant $8,788 $8,079 $8,320 $9,891 per ADA
12 LCFF – From 2012-13 to 2013-14 LCFF – From 2012-13 to 2013-14 2013-14 target entitlement calculation: Multiply each grade span per-pupil grant amount by the ADA for that grade span, and add the results Add any amounts received in 2012-13 for Home-to-School Transportation and Targeted Instructional Improvement Grant (TIIG) Determine 2012-13 base funding – add together: 1) 2012-13 deficited base revenue limit or charter school base grant 2) 2012-13 funding received for categorical programs included in the LCFF or charter school block grant 3) 2012-13 funding received for Transportation and TIIG Subtract the 2012-13 base funding total from the calculated LCFF entitlement Multiply the difference (if it is positive) by 11.78% for 2013-14 Add the difference to the 2012-13 base funding amount to get 2013-14 funding
13 2013-14 Growth Toward Target 2013-14 Growth Toward Target $11,300 $9,100 $8,000 $576 12% 12% $312 12% $180 $6,500 $6,500 $6,500 $6,500 $6,500 $6,500 LCFF LCFF 2012 LCFF 2012 2012 Target Target Target Base Year Base Year Base Year Low High Medium
Categorical Programs Rolled Into the Local Categorical Programs Rolled Into the Local 14 Control Funding Formula Control Funding Formula Administrator Training Program Community-Based English Tutoring Adult Education Deferred Maintenance Advanced Placement Grant Programs District revenue limits Alternative Credentialing Economic Impact Aid Apprentice Programs Educational Technology Arts and Music Block Grant Gifted and Talented Education California High School Exit Exam Grade 7-12 Counseling California School Age Families Education High School CSR Program Certificated Staff Mentoring Instructional Materials Block Grant Charter Schools Block Grant K-3 CSR Civic Education National Board Certification
Categorical Programs Rolled Into the Local Categorical Programs Rolled Into the Local 15 Control Funding Formula Control Funding Formula School and Library Improvement Block Grant Oral Health Assessments Partnership Academies School Safety Block Grant Physical Education Block Grant School Safety Competitive Grant Principal Training Staff Development Professional Development Block Grant Student Leadership/California Association of Student Councils Professional Development Institutes for Summer school programs Math and English Pupil Retention Block Grant Teacher Credentialing Block Grant Regional Occupational Centers and Teacher Dismissal Apportionments Programs Home-to-School Transportation* TIIG* * Retained as add-ons to the formula
Significant Categorical Programs Remaining Significant Categorical Programs Remaining 16 Outside the Local Control Funding Formula Outside the Local Control Funding Formula Program Rationale Proposition 49 requires a ballot initiative After-School Programs approved by the voters to make any changes to after-school funding American Indian Education* Federal accounting requirements Funding needed to maintain schools in sparsely Necessary Small Schools populated areas Preschool Program Program/funding is not a K-12 program Quality Education Investment Act Part of a legal settlement Federal accounting and maintenance-of-effort Child Nutrition* requirements Federal program requirements and maintenance- Special Education* of-effort issues *Received 1.565% COLA for 2013-14
Recommend
More recommend
