Transcript Slide 1
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
Associate Superintendent
Business Support Services
Kate Ingersoll
Executive Director
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
State Budget Reserve
General Fund Reserve
Enacted Budget vs. Final Reserve
(in millions)
$2,000
$1,000
$971
$500
$1,205
$543
$1,018
$948
$167
$0
?
($1,000)
($2,000)
($1,976)
($3,000)
($4,000)
($5,000)
($3,601)
($4,458)
($6,000)
($7,000)
2008-09
($6,842)
2009-10
2010-11
2011-12
2012-13
2013-14
Forecast
Enacted Budget
Final Reserves One Year Later
Per-ADA Revenue Volatility
Per-ADA Revenue Change
15%
10%
Average 1.5%
5%
0%
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
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
District Type
Elementary
High School
Unified
Statutory COLA
2013-14
2012-13
1.65%
3.24% (actual)
(estimated)
$202
$106
$243
$128
$212
$111
3-9
199 4
4-9
199 5
5-9
199 6
6-9
199 7
7-9
199 8
8-9
199 9
9-0
200 0
0-0
200 1
1-0
200 2
2-0
200 3
3-0
200 4
4-0
200 5
5-0
200 6
6-0
200 7
7-0
200 8
8-0
200 9
9-1
201 0
0-1
201 1
1-1
201 2
2-1
201 3
3-1
4
199
5%
0.000%
7.884%
2.143%
0.892%
0.000%
8.801%
8.801%
8.801%
6.995%
3.002%
0.000%
0.000%
10%
11.010%
10.120%
25%
30%
22.272%
22.272%
17.963%
20.602%
18.355%
20%
0.000%
15%
8.140%
Revenue Limit Deficit Factors
35%
0%
Base Revenue Limit After Deficit
Factor at TRUSD
Base Revenue Limit History
$8,000
$7,653
$7,542
$7,500
Base Revenue Limit
$7,212
$7,187
$7,330
$6,950
$7,000
$6,621
$5,331
$6,405
$6,500
$6,000
$5,635
$5,896
Funded Base Revenue Limit
$5,819
$5,862
$5,948
$5,500
$5,000
2007-08
2008-09
2009-10
2010-11
Year
2011-12
2012-13
2013-14
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
Local Control Funding Formula
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%
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:
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
Special Education, Child Nutrition, QEIA, After School
Education and Safety, and other federally mandated programs
are not included in the formula
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: $38.50
Source: Anonymous