Transcript The Budget and Transparent Funding

Education Budgets and
Transparent Funding
PTA Council
October 15, 2009
LMU Family of Schools
Agenda
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Mission of iDesign
Overview of State and Local Demographics
Overview of State and Local Budgets
Types of Funding
Traditional Funding Model
Transparent Funding Model
Overview of State and Local
Demographics
California Department of Education,
http://www.cde.ca.gov/ds/ October 13, 2008.
Overview con’t:
California Department of Education,
http://www.cde.ca.gov/ds/ October 13, 2008.
Overview of State and Local Budgets
School Finance Facts, California Budget
Project, Feburary 2009
Types of Funds:
State Distribution to School Districts
Restricted/Categorical Funds
Unrestricted Funds
-earmarked for certain purposes: Special
Education, Title 1, Federal and State
policies (Class size reductions, No Child
Left Behind)
-available to be spent: salaries and
benefits, services and operating
expenditures, books and supplies
-35% of total budget
-65% of total budget
Traditional Funding Model
• Schools receive most resources in the form of
positions based on District determined
staffing formulas
• Traditionally, schools had control of 1% of
discretionary funds available
2009-2010 Funding Model
• Schools receive resources in the form of
dollars and budget these dollars according to
the needs of the school
• For this school year, schools have control over
15% of discretionary funds
• In 2010-11, the goal is for schools have control
over 80% of discretionary funds
Purpose of New Model
• Transparency
– how much revenue the District receives and where it
all goes
• Flexibility
– Revenue goes directly to schools so that school
communities can make spending decisions that meet
the unique needs of their student population.
• Equity
– program costs are clear – not masked by the use of
averages, which can create numerous inequities in our
system.
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Why is the use of average salaries
inequitable?
Using average salaries, instead of true costs, masks
spending differences between schools.
School A
School B
Size
1000 students
1000 students
# of teachers
24
24
Level of teacher experience
Veteran
New
Average Salary Cost
$1.7 million
$1.7 million
Actual Salary Cost
$1.9 million
$1.4 million
Per Pupil Cost
$1,900
$1,400
School B is actually receiving $500 less per pupil.
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Who is Participating?
2009 – 2010:
– 33 schools
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19 iDesign
7 Volunteer
7 Belmont
All types of schools ( 9
elementary, 6 middle, 17
high, 1 span)
2010 – 2011:
– All LAUSD will have
transparency around
revenue and
expenditure
2009-2010 Funding Model
• Schools receive resources in the form of
dollars and budget these dollars according to
the needs of the school
• Enrollment-generated teaching and counseling
positions are an exception to the resources
• Discretionary Allocation includes: Principal’s,
AP’s, Clerical Staff, Librarians and Aides,
Custodial Staff, Elementary Arts Teachers,
Supervisions
Example of OWMS
Position
Norm Allocation
Budgeted by School
Principal
1.00
1.00
Asst. Principal
1.00
1.00
School Admin Asst
1.00
1.00
Sr Office Technician
1.00
1.00
Office Technician
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1.00
0
1.00
Plant Manger
1.00
1.00
Asst. Plant Manger
1.00
1.00
Buildings and Grounds
4.00
3.50
School Facilities
2.00
2.00
0
.75
Library Media Teachers
1.00
0
Total
13.49
14.25
Clerk
Library AIde
How to Calculate Unrestricted
Resources
Next Year’s
Projected
Enrollment
Last Year’s
Attendence
Rate (ADA)
Per Pupil
Allocation
Total School
Discretionary
Fund
Per Pupil
Allocation
How to Calculate the Per Pupil
Allocation
• Base Revenue
– The District receives money from the State based on
Average Daily Attendance
– Additionally, money is added from the lottery, reserves,
flexibility transfers, and other local/federal allocations
• Deductions
– The District than deducts from this base to cover costs and
programs
• Net Unrestricted Revenue
– Remaining amount distributed to schools on a per pupil
basis
2009-2010 Per Pupil Allocation
Base
Revenue:
$6204
Deductions:
$5293.00
Net Revenue
: $911.00
Equity in Funding
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Requires comparing revenue to the actual cost of what schools would have received under
District staffing formulas:
– In the traditional model of funding, schools with the same number of students get the
same number and types of positions
– The result is a system that doesn’t let schools decide what mix of positions would best
serve their unique needs.
– Additionally, the current system relies on the use of average salaries, which may be
creating inequities for our schools
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Allocation of funds/resources in the new model
– Whether a school is under or over allocated really depends on several factors:
School size, the attendance rate, and the actual cost of their staffing
– Over allocation: They are receiving more staffing than the revenue generated by their
student population.
• 22 schools have been historically over-allocated – of these, 20 have below average
enrollment, highlighting the role school size plays.
– Under allocation: Their student population actually generates more revenue than they
get in staffing.
• 11 of the 33 schools have been historically under-allocated.
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Over-allocated schools were held harmless for 90% of that overage, while under-allocated
schools retain 10% of their difference between revenue and actual expenses. The underallocated schools are actually supporting the over-allocated schools.
What We are Working Towards:
Principal:
Proposes budget
Budget
Committee :
Advises on Categorical
Funds (School Side
Council ) and
Unrestricted Funds
Governance
Council:
Decision-Making Body
Resources
• California Department of Education,
http://www.cde.ca.gov/ds October 13, 2008.
• School Finance Facts, California Budget
Project, February 2009
• “Achieving a Transparent Budgeting Process
for LAUSD Schools” Powerpoint, LAUSD,
September 22, 2009