Transcript Document

Budget advisory:
2006-07 program implementation
Brett McFadden
ACSA Legislative Advocate
Sept. 29, 2006
Background
The 2006-07 budget included a significant
amount of new K-12 funding and programs
Much of this new funding is encompassed
within new categorical programs
These categorical programs have their own
funding criteria and requirements
In order to speed up funding rollouts, many
programs based on CBEDS enrollment data for
per student funding as opposed to ADA
Intent of this advisory
Provide K-12 leaders with up-to-date info
regarding program funding rollout – when to
expect program funding
This advisory will cover $ rollout only
Info re: program requirements provided in past
and future ACSA budget advisories
Info based on briefings from CDE fiscal
services staff
Part one
The big picture
Prop. 98 settlement
Settlement of CTA, O’Connell, ACSA,
CSBA vs. Schwarzenegger et al. lawsuit
•$5 billion owed to Prop. 98
•$2 billion down-payment in 06-07
•$300 million in 07-08
•$450 million annually until 2012-13
$2.1 billion goes to Prop. 98 base as ongoing
Remainder allocated as one time over 7yrs
2006-07 K-12 spending:
$7 billion in new K-12 revenue
One-time $2.52 Billion ($408 per student)
•Prior-year mandates - $927m ($150 per student)
•One-time block grants - $1.03B ($167 per student)
•Categorical increases - $377m ($61 per student)
Ongoing $4.476 Billion ($720 per student)
•Unrestricted base increase - $3B ($490 per student)
•Categorical expansion - $943m ($152 per student)
•New categoricals - $305m ($49 per student)
NOTE: Per student amounts will vary between LEAs
2006-07 (cont.):
$2.9 billion in future one-time payments
•Part of Prop. 98 settlement agreement
•Funding committed entirely to low performing
schools in deciles 1 and 2.
•Program details based on SB 1133 – Quality
Education Investment Act of 2006
•Payment schedule:
- $300m in 07-08
- $400m per year thereafter for six years
Note: Analysis of SB 1133 available at www.acsa.org
Spending the new money:
2006-07 ongoing unrestricted
LEAs are getting a lot of unrestricted money!
Category
K-12 COLA
Deficit factor reduction
Equalization and/or EIA
Total
Amount(%)
5.92
0.92
0.5 – 1.5*
7 – 8.5%
Equalization and EIA amounts vary per district
2006-07:
Program implementation
•New program and funding rollout in the hands
of CDE
•Programs funded per enrollment should see
initial allocations (75%) in Oct./Nov.
•Remaining amounts allocated in Spring 07
•In many cases, per student funding based on
last year’s CBEDs enrollment data as opposed
to ADA
•Keep your eyes and ears open – watch for
CDE and other advisories
06-07 implementation:
Prop. 49 before/after school
•$426m for after school programs per Prop. 49
(approved 2002)
•Significant program changes per SB 638 (Torlakson)
•Application deadlines – existing 21st CCLC programs
must apply by Nov 3, new ASES grants due Nov 6
•Priority for funding based on % of students eligible for
free/reduced lunch and then program need.
Note: See Part two for additional info
Summary chart:
Ongoing new revenues/programs
Ongoing K-12 Proposition 98 Changes
(in millions)
Program or Activity
Amount
COLA, growth, and misc adjustments
Proposition 49 after school programs
Revenue limit equalization
Economic Impact Aid
Deficit-factor reduction
Counselors (grades 7 through 12)
Arts and music block grant
Child care eligibility limits
Preschool expansion
Increased support for high school exit examination
Physical education teacher incentive grants
Professional development for teachers of English learners
Certificated staff mentoring
Other miscellaneous
Total changes
$2,383
$426
$350
$350
$309
$200
$105
$67
$50
$50
$40
$25
$11
$110
$4,47
Source: CDE 2006 budget letter
Summary chart:
One-time new revenues/programs
One-time K–12 Proposition 98 Changes
(in millions)
Program or Activity
Payment of K–12 Mandate Claims from prior years
Discretionary Block Grant
Arts, Music, and Physical Education Equipment Grant
School Facilities Emergency Repairs (Williams)
Instructional Materials
Preschool Facilities
Teacher Recruitment
Career Technical Education Equipment
Mandate Claims—current year
English Learners Supplemental Instructional Materials
English Learner Best Practices
Parent Involvement Grants
School Gardens
California School Information Services
Other miscellaneous
Total changes
Amount
$927
$534
$500
$137
$100
$50
$50
$40
$30
$30
$20
$15
$15
$11
$74
$2,533
Source: CDE 2006 budget letter
Part two
Program funding rollout:
Expected timelines
Ongoing funds:
Revenue limit funding
Revenue limit, COLA and Growth
•Funding increases worked into current
apportionment system
•Includes def. factor and equalization
•Per district equalization funding amounts
available on School Services Inc. website
•CDE post budget letter available at
www.cde.ca.gov (see fiscal)
Ongoing funds:
Economic Impact Aid
•$350m increase for 06-07
•Almost $1 billion total appropriation
•All districts that receive funding will see
sizeable increases
•New criteria included in budget trailer bill
•Target funding level at $600 per eligible pupil
•EIA no longer eligible for Mega-item transfer
out flexibility – can transfer in however
•Allocation to LEAs per current process
Ongoing funds:
Instructional materials
•Provided 5.92% COLA
•Instructional Materials Realignment Funding is
$55.92 per prior-year CBEDS
•Prop. 20 lottery is $27.90 per ADA
•Allocated to LEAs per current process
Ongoing funds:
Instructional materials – ELL supplemental
•ELL supplemental materials $30m statewide $19 per EL student per language census
•ELL supp funding – per similar structure in
2004-05
•CDE estimates it will take longer to roll out $
•No firm estimate at this point
Ongoing funds:
Arts and music block grant
•$105m appropriation for 06-07
•75% of $ out in Oct/Nov ‘06
•Per ’05 CBEDs enrollment
•25% out in the spring via current year
enrollment
•Approx. $15 student
•Min. grants of $2,500 per site with 10 or fewer
students, $4,000 for sites with 20 or more
Ongoing funds:
7-12 supplemental counseling
•$200m appropriation for 06-07
•Will take until end of year for first portion of $
•Must be used to hire credentialed PPS
counselors
•Can supplement not supplant existing
counseling resources
•Approx. $80 per student with min. amounts of
$5,000 to $30,000
•LEAs can pool the money district-wide
Ongoing funds:
CAHSEE intervention
•$70m appropriated in 06-07
•CDE to post per LEA amount in Oct. ’06
•CDE program division has sent out RFAs
•For intervention support to HS seniors who
have not passed the exam (includes students
with disabilities)
•$500 per student with priority for seniors –
excess fund prorated for 11th graders
Ongoing funds:
Prof. dev. for ELL teachers
•$25m appropriated
•Allocated per SB 472 (Alquist)
•Look for advisory from CDE later this fall
Ongoing funds:
School meal reimbursement
•Governor recently vetoed enabling legislation –
SB 1674 (Murray).
•Allocation of funding increase now in question
•School meals will likely still get 2 cent COLA
increase but not the additional 5 cent increase
per SB 1674.
•Funding for the program increase will likely be
set aside for new round of legislative
discussions in 2007 and then reallocated.
•More to follow on this matter
Ongoing funds:
PE teacher recruit and preschool
PE teacher recruitment grant ($40m)
•CDE still working on funding allocation
•Will be an application process with min. criteria
for applicants
•Eligible LEAs could see some $ by Nov ’06
•Can be used for salaries
Preschool expansion ($50m)
•Per AB 172 (Chan)
Ongoing funds:
Proposition 49 before/after school
•$426m augmentation to Prop. 98
•CDE informing field of quick implementation
•CDE will release an RFA with projected 6 week
application deadline – early Nov.
•Existing programs could see increased funding later
this fall
•New programs subject to application process and CDE
review
•See:
CDE website – www.cde.ca.gov
ACSA advisory – available after Oct. 2 ’06
(www.acsa.org)
One-time funds:
Mandates
•$927m to fund mandate deferrals from 200203 – including interest
•$30m to fund claims submitted in 06-07
•06-07 not fully funded – expect it to be a
budget issue for 07-08
•No audit language included in trailer bill
•Should eliminate most of LEA mandate debt
•NOTE – cost of claim prep not reimbursable
after 06-07
•First payments have already gone out
One-time funds:
Discretionary block grant
•$533.5m appropriated one-time
•Based on current year (CBEDs) enrollment
•75% rollout in November, with 25% in
March/April ‘07 for reconciliation
•Adult Ed/ROC’P – based on ADA and will get
their funding in the 25% allocation in Spring ’07
•NOTE: Sites do not have to spend it all in 0607, just need plan approved by LEA board no
later than May 1, 2007
One-time funds:
Instructional materials, library, tech
•Instructional materials, library, tech block grant
•Similar allocation methodology and timeline as
discretionary block grant
•$100m statewide appropriation
•Approximately $15 per student based on prioryear CBEDs
One-time funds:
Arts, music, PE equipment block grant
•$500m one-time appropriation in 06-07
•$82 per ADA
•CDE expect $ roll out in January 07
•Funding based on ADA – not enrollment
•CDE figuring if methodology will be prior-yr or
current-yr ADA
•Use for professional development has been
clarified and is allowed.