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1 2013 Budget Perspectives Workshops 877.954.4357

2 2013 Budget Perspectives Workshops Welcome to the 2013 Budget Perspectives Workshop Jeff Owen Vice President – Operations School Innovations & Achievement 877.954.4357 www.sia-us.com2

3 2013 Budget Perspectives Workshops SI&A Announcement Scott Hill SI&A, National Policy Advisor Bill & Melinda Gates Foundation, Sr. Program Manager His focus: National Implementation of Common Core State Standards & Assessments. Building support systems for the new standards. 877.954.4357 www.sia-us.com3

4 2013 Budget Perspectives Workshops One critical support system is Academic Tenacity 1.What is it? Persistence of effort 2.How is it measured? Attendance (A2A) is the only proven Attendance Intervention System on the market – A2A currently supports nearly 1M families and students – Last year, A2A clients had: More than a 25% reduction in daily absences Over 2,700 school children back in school every day Nearly 500,000 additional instructional days gained Average ADA gain of.62% - over $14 million dollars generated Significant improvement in all sub-groups 877.954.4357 www.sia-us.com4

5 2013 Budget Perspectives Workshops A2A Results *Save Rate is defined as “children that do not continue on a path toward ‘chronic absenteeism’”. Combined Save Rate of I 1 and I 2 877.954.4357 www.sia-us.com5 Hispanic African White Total American I 1 Save Rate Hispanic African White Total American What is your ? *

6 2013 Budget Perspectives Workshops A2A results are not an accident. Intervention Student Sample Size 877.954.4357 www.sia-us.com6 Hispanic White African American

7 2013 Budget Perspectives Workshops A2A - Making An Impact Excited to know that this work is being recognized nationally – as a key component of emerging national strategies, – in supporting the implementation of the Common Core State Standards We look forward to working with all of you, to supporting your Common Core implementation efforts this year and in the future. THANKS 877.954.4357 www.sia-us.com7

8 2013 Budget Perspectives Workshops Kevin Gordon President and Partner Gerry Shelton Partner Barrett Snider Partner Susan Stuart Partner Abe Hajela, Partner Jack O’Connell Partner Lee Angela Reid Chief Legislative Advocate 877.954.4357 www.sia-us.com8

9 2013 Budget Perspectives Workshops Adonai Mack Legislative Advocate David Walrath President, Murdock Walrath and Holmes 877.954.4357 www.sia-us.com9

10 2013 Budget Perspectives Workshops The Governor’s 2013-14 Budget “Subsidiarity”: The idea that a central authority should have a subsidiary function, performing only those tasks which cannot be performed effectively at a more immediate or local level. [Oxford English Dictionary] 877.954.4357 www.sia-us.com10

11 2013 Budget Perspectives Workshops Budget Themes & Thoughts Basking in Victory Erasing the Deficit Wall of Debt – Work in Progress Counting on Economic Growth Investing in Education – Over Time “Subsidiarity” Centerpiece of Budget is “Local Control Funding Formula (LCFF)” 877.954.4357 www.sia-us.com11

12 2013 Budget Perspectives Workshops Economic Outlook Nation – Continued Slow Recovery – Less than 2% GDP growth through mid-2013, improving to 3% beyond – Unemployment = 7.8% - down from 10% in 2009; 9% for much of 2011 California – Still Even Slower Recovery – Unemployment below 10%, down from 12.4% in 2011; falling to 8.4% in 2014 – Employment (vs. labor force dropouts) actually growing – Real Personal Income growth above 3% going into 2014 – Construction/housing sector is recovering Challenges – Washington – deficits, politics, short-term fixes – Interest rates and the construction/housing sector 877.954.4357 www.sia-us.com12

13 2013 Budget Perspectives Workshops Political Backdrop Decisive win on Prop 30 = political capital for Brown – Getting voters to do the impossible – raise taxes – The low budget, late game strategy wins again What Prop 30 really does vs. perception The changing demographic of a major blue state – Rise of the Hispanic voters – Voters between 18 and 29 Democrat supermajority Potential to equalize power between Governor and Legislature Budget & taxes Urgency statutes Veto override Influence of organized labor Unprecedented number of new lawmakers 877.954.4357 www.sia-us.com13

14 2013 Budget Perspectives Workshops Governor’s Budget Governor declares that deficit is erased Second budget in a decade without a projected deficit Increases GF spending by 5 Percent - going from $93 billion in 2012-13 to $97 billion in 2013-14 Increases funding for K-12 schools & higher education Expands Medi-Cal under state implementation of federal health care reform Pays down $4.2 billion in budget-related borrowing Establishes a $1 billion reserve 877.954.4357 www.sia-us.com14

15 2013 Budget Perspectives Workshops Governor’s Budget Assumptions above LAO’s projections – erases deficit and creates a $1 billion reserve – $1.1 billion in higher revenues over three years (mostly Prop 30) – $500 million by repaying less of borrowing from special funds – $1 billion higher estimate of savings (RDA/Cap and Trade) – Extending health care-related taxes and fees 877.954.4357 www.sia-us.com15

16 2013 Budget Perspectives Workshops Voters to the Rescue - Ballot Measures Budget includes almost $6 billion for 2013-14 in new revenues from voter approval of Prop 30 and Prop 39 – Prop 30: New tax rates on highest-income earners – married taxpayers at $500,000 or above beginning in 2012 through 2018 Increases state’s sales tax rate by one-quarter cent beginning this year through 2016 – Prop 39: Requires multistate corporations to use the “single sales factor” method of apportionment in calculating their taxable income The measure ends an advantage signed into law under a previous budget deal allowing firms choosing the more favorable of two methods for determining their tax 877.954.4357 www.sia-us.com16

17 2013 Budget Perspectives Workshops New Revenues and Growth Increase in GF personal income tax revenues of 1.8 percent from 2012-13 to 2013-14 Increase in GF sales and use tax revenues of 12.5 percent from 2012-13 to 2013-14 Increase in corporation tax revenues of 20.5 percent from 2012-13 to 2013-14 Increase in GF revenues of $50 million in 2013-14 as part of proposal for the state’s Enterprise Zone Program Increase in revenues from permanent reauthorization of the gross premiums tax on Medi-Cal managed care plans and extension of the Hospital Quality Assurance Fee through 2016 877.954.4357 www.sia-us.com17

18 2013 Budget Perspectives Workshops Key Education Components K-12 Deferrals — $1.8 billion Prop 98 GF to reduce inter-year budgetary deferrals New School Funding Formula — Additional $1.6 billion in Prop 98 GF for school districts, COEs and charter schools in 2013-14, an increase of 4.5 percent New County Office of Education Funding Formula — Additional $28.2 million Prop 98 GF to support a new funding formula for COEs in 2013-14 Energy Efficiency Investments — $400.5 million Prop 98 GF to support energy efficiency projects per Prop 39 Charter Schools — $48.5 million Prop 98 GF to support projected charter school ADA growth Special Education — $3.6 million Prop 98 GF for Special Education ADA growth K-12 Mandates Funding— Additional $100 million to the K-12 portion of the mandate block grant to support costs associated with the Graduation Requirements and Behavioral Intervention Plans mandates 877.954.4357 www.sia-us.com18

19 2013 Budget Perspectives Workshops Key Education Components COLA – Select Programs— $62.8 million to support 1.65% COLA for select categorical programs, including: Special Education, Child Nutrition, American Indian Education Centers, and the American Indian Early Childhood Education Program Emergency Repair Program — $9.7 million one-time Prop 98 GF Reversion Account for the Emergency Repair Program Average Daily Attendance (ADA) — An adjusted increase of $304.4 million in 2012-13 and an increase of $2.8 million for 2013-14 Child Nutrition Program—$77 million in federal local assistance funds to reflect growth of nutrition programs at schools and other participating agencies Prop 98 Adjustment – Credits over-appropriation of $162.8 million in the 2012-13 Prop 98 guarantee to retire future funding obligations of the CTA v. Schwarzenegger settlement 877.954.4357 www.sia-us.com19

20 2013 Budget Perspectives Workshops School Finance Reform Governor’s criticisms of current system – State driven – Overly complex – Too much bureaucracy and administrative tasks – Inequitable – Not reflective of student needs Goals for new funding system – Increase local control – “Subsidiarity” – Reduce state bureaucracy – Reduce inequities – Reflect student needs – Transparency 877.954.4357 www.sia-us.com20

21 2013 Budget Perspectives Workshops Local Control Funding Formula (LCFF) Basic Grant Supplemental (weighted) Grant Concentration (weighted) Grant Augmentations to the Base Grant Add-ons to formula Separately funded programs Hold-harmless and transition 877.954.4357 www.sia-us.com21

22 2013 Budget Perspectives Workshops Base Grant Base Grant per ADA by grade span (no more revenue limit) K-3 = $6,342 7-8 = $6,628 4-6 = $6,437 9-12 = $7,680 When LCFF fully implemented (estimated in 7- years), Base Grant should equal the undeficited statewide average revenue limit for the current year ($6,816) 877.954.4357 www.sia-us.com22

23 2013 Budget Perspectives Workshops Supplemental / Concentration Grants Supplemental Grant – Equal to 35% of Base Grant for each English Learner (EL), Economically Disadvantaged (NSLP eligible), and/or foster student – unduplicated count Concentration Grant – Equal to 35% of Base Grant For Each EL, Economically Disadvantaged, and foster student above 50% concentration threshold EL students eligible for Supplemental and Concentration Grants for no more than 5 years 877.954.4357 www.sia-us.com23

24 2013 Budget Perspectives Workshops Augmentations and Add-ons Augmentations to the Base Grant – K-3 Class Size Reduction funding augments the K-3 Grade Span Base Grant - 11.23% (approx. $712) – CTE funding augments the 9-12 Grade Span Base Grant - 2.8% (approx. $215) Add-ons – Home-To-School Transportation and Targeted Instructional Improvement Grant (TIIG) funding permanently added to the entitlement for districts currently receiving those funds 877.954.4357 www.sia-us.com24

25 2013 Budget Perspectives Workshops LCFF Funding Base Grant Supplemental Grant Concentration Grant CSR Augmentation CTE Augmentation Trans. Add-on Entitlement Target TIIG Add-on 877.954.4357 www.sia-us.com25

26 2013 Budget Perspectives Workshops LCFF - Transition An “Entitlement Target” will be calculated for each district – Equal to Base Grant + Supplemental Grant + Concentration Grant + Augmentations + Add-Ons – Entitlement Target adjusted each year for COLA, demographic changes, grade span changes 2013-14: each LEA receives at least a hold-harmless amount equal to 2012-13 funding for revenue limits + included categoricals Each FY thereafter: each LEA receives some amount of growth, added to the hold-harmless amount, that moves the LEA toward its Entitlement Target Administration estimates 7 years to reach Entitlement Targets – 50% of Prop. 98 growth used to move LEAs toward Entitlement Targets (other 50% buys down deferrals) – Growth funding proportionally moves all LEAs toward the Entitlement Targets 26 877.954.4357

27 2013 Budget Perspectives Workshops LCFF Funding 27877.954.4357 Base Grant Supplemental Grant Concentration Grant CSR Augmentation CTE Augmentation Trans. Add-on Entitlement Target TIIG Add-on Hold Harmless Funding 2012-13 Revenue Limit 2012-13 “Included” Categoricals 2012-13 Trans. 2012-13 TIIG

28 2013 Budget Perspectives Workshops LCFF Funding – An Example 28 877.954.4357 Base Grant $33,858,750 Supplemental Grant $8,295,394 Concentration Grant $2,370,113 CSR Augmentation $890,258 CTE Augmentation $268,800 Trans. Add-on $500,000 Entitlement Target $46,683,314 TIIG Add-on $500,000 District X is a unified school district with an ADA of 5,000. 25% of its pupils are enrolled in each of the four grade spans. 70% of the district’s pupils are EL, NSLP eligible and/or foster youth (unduplicated count). The district received $500,000 in Home to School Transportation and $500,000 in TIIG funding in 2012-13.

29 2013 Budget Perspectives Workshops Separately Funded Programs Federally funded programs QEIA (for next two fiscal years only) Special Education After School Education and Safety Child Nutrition Preschool Various programs not funded in all districts – e.g., High-Speed Internet Access, Indian Education Centers, FCMAT 877.954.4357 www.sia-us.com29

30 2013 Budget Perspectives Workshops Expenditure of LCFF Funds Base Grant, CTE Augmentation to 9-12 Base Grant, and Add-ons are unrestricted and completely discretionary Supplemental and Concentration Grants are “Available for any purpose that benefits the students generating the funding”, but funding need not strictly “follow the student” Must hold average pupil-teacher ratio in K-3 to 24:1 (or locally bargained ratio) or risk loss of K-3 CSR Augmentation – 24:1 implemented in stages during transition 877.954.4357 www.sia-us.com30

31 2013 Budget Perspectives Workshops LCFF – Charter Schools and Basic Aid Charter schools are included in the proposal and treated the same as districts Basic aid districts (COEs) are treated the same as other districts (COEs) – Basic aid is now defined to be a district (COE) where local property tax proceeds equal or exceed the entitlement target – Districts (COEs) get to keep excess property taxes – Some basic aid districts (COEs) may start with the hold-harmless amount greater than their entitlement target 877.954.4357 www.sia-us.com31

32 2013 Budget Perspectives Workshops LCFF – County Offices of Education County Offices of Education (COE) – New two-part formula for Base Grant Per ADA funding for county community and court schools Discretionary general fund based on total ADA within the county – COEs eligible for the Supplemental and Concentration Grants for EL and economically disadvantaged pupils – Same transition and hold-harmless provisions apply to COEs 877.954.4357 www.sia-us.com32

33 2013 Budget Perspectives Workshops New Accountability System Governor proposes to redefine fiscal accountability for LEAs and charter schools Eliminates most current programmatic and compliance requirements Makes LEAs and governing boards accountable to the community with less emphasis on the State Requires LEAs to create the District Plan for Student Achievement – to be concurrently adopted with the annual budget 877.954.4357 www.sia-us.com33

34 2013 Budget Perspectives Workshops New Accountability System The District Plan must address at least the following: 1.Basic conditions for student achievement (qualified teachers, sufficient materials, school facilities - Williams type elements) 2.Programs or instruction for low-income and English language learners 3.Implementation of Common Core Standards (progress toward college and career readiness as measured by the API, graduation rates, completion of college-prep and CTE courses) DOF suggests that no State agency would review the District Plans Instead the K-12 Audit Guide would be revised to require independent auditors to verify the Plans contain all mandatory elements and related expenditures 877.954.4357 www.sia-us.com34

35 2013 Budget Perspectives Workshops Proposition 98 Prop 98 spending fell from $56.6 to $47.3 billion between 2007-08 and 2011-12 – A decline of 16.4%, not including manipulations Most devastating cuts to public education in memory 2013-14 Prop 98 funding is proposed to be $56.2 billion or $2.7 billion higher than the revised 2012-13 guarantee Increased GF revenues drive the guarantee upward - Prop 30 and Prop 39 have a positive impact on the guarantee Governor dedicates $400.5 million of Prop 39 to meeting the guarantee For 2012-13, the Administration estimates that Prop 98 is funded beyond the guarantee and thus credits those dollars toward future CTA v. Schwarzenegger settlement obligations 877.954.4357 www.sia-us.com35

36 2013 Budget Perspectives Workshops 2013-14 Revenue Limit Calculations* ElementaryUnifiedH.S. Statewide average revenue limit:$6,450$6,747$7,748 COLA (1.65%) + 106 + 111 + 128 Revised Revenue Limit$6,556$6,858$7,876 Less Deficit (.22272 x line 3)- 1,460- 1,527- 1,754 Deficited Revenue Limit School District Deficit Factor = County Office Deficit Factor = 2012-13 K-12 ADA = 2013-14 K-12 ADA = $5,096 22.272% 22.549% 5,982,430 5,988,397 $5,331$6,122 * Assumes: no LCFF implementation, no def. factor reduction, and full COLA 877.954.4357 www.sia-us.com36

37 2013 Budget Perspectives Workshops Deferrals Governor stays true to commitment to eliminate deferrals over time. $2.2 billion buy out of inter-year deferrals stays in place with passage of Prop 30 Proposes to buy out an additional $1.8 billion in existing inter-year deferrals $5.6 billion in inter-year deferrals would remain, down from over $10 billion $3.5 billion in intra-year deferrals remain, in addition to 2012-13 “Cash Management Plan” 877.954.4357 www.sia-us.com37

38 2013 Budget Perspectives Workshops Inter-Year (Cross-Year) Deferrals Deferral*Original Amount 2012-13 Budget Act Current Feb 2013 to July 2013 $ 2,000.0 $ (1,468.0) $ 532.0 Mar 2013 to Aug 2013 $ 1,300.0 $ (270.5) $ 1,029.0 April 2013 to Aug 2013 $ 763.8 April 2013 to July 2013 $ 419.0 April 2013 to Aug 2013 $ 678.6 April 2013 to July 2013 $ (503.0) $ 175.6 May 2013 to July 2013 $ 800.0 May 2013 to Aug 2013 $ 1,000.0 May 2013 to July 2013 $ 177.0 $ 1,177.0 June 2013 to July 2013 $ 2,500.0.. $ 2,500.0 Total Inter-Year Deferred $ 9,461.4 $ (2,064.5) $ 7,396.4 *all amounts shown in millions 2013-14 Budget Proposal $ 1,765.0 Balance $ 5,631.4 877.954.4357 www.sia-us.com38

39 2013 Budget Perspectives Workshops Intra-Year (Same-Year) Deferrals Deferral (in millions) 2011-12 Statutory (SB 82) 2011-12 Actual 2012-13 Statutory (AB 103)*** July to September $ 700.0 July to January $ 700.0 $ 541.0 $ 500.0 August to January $ 1,400.0 $ 1,200.0 $ 600.0 October to January* $ 2,400.0 $ 800.0 March to April** $ 1,400.0 $ 900.0 Total Intra-Year Deferred $ 6,600.0 $ 6,241.0 $ 3,500.0 * $2,200 from Prin. Apportionment; remainder from categoricals ** $837 from Prin. Apportionment; remainder from categoricals *** Actual amounts deferred to January will be less than specified in statute All amounts in millions 877.954.4357 www.sia-us.com39

40 2013 Budget Perspectives Workshops Mandate Funding Remember that THIS February, all districts including those that opted for MBG, will be filing for costs incurred in the 2011-12 fiscal year 2012-13 claims will be the first year impacted by MBG – Decision already made September 30 th 2013 districts again have an option for claiming for 2013- 14: continue filing or choose block grant Block grant funding proposed to be $300 million for K-14 mandates, or $47 per student for K-12 districts and COEs - $24 per pupil for charter schools Folds in ongoing BIP and Grad Requirements – MBG will not cover prior-year claims for both – Consistent with the motivation for establishing the MBG, inclusion of these added mandates creates savings to the State. 877.954.4357 www.sia-us.com40

41 2013 Budget Perspectives Workshops Mandate Funding Two mandates approved for claims to be filed in 2013 – Charter Schools IV – Petition review for districts and COEs – Public Contracts – Requirements imposed on districts Five pending mandates approved but pending Ps&Gs – Behavioral Intervention Plans – California Public Records Act – Uniform Complaint Procedures – Parental Involvement Programs – Williams Case Implementation I, II, III Eight mandate test claims pending For prior year claims on Graduation Requirements Mandate and Behavioral Intervention, districts need to file GR and BIP in Feb 2014 or lose that prior year funding – First Time Filing for BIP goes back to 1994/95 877.954.4357 www.sia-us.com41

42 2013 Budget Perspectives Workshops Politics & Compliance Under either claiming approach, the statutes requires districts to comply with all mandates The audit guidelines are subject to change each year Anticipating the two types of audit requirements under the options – they are not the same – Constitutional Funding = Did you claim correctly – MBG = Did you actually provide the services No guaranteed funding Not allocated to both options deliberately How will new mandates get funded now…and in the future? What happens when people stop paying attention? 877.954.4357 www.sia-us.com42

43 2013 Budget Perspectives Workshops Mandates - Maintaining Flexibility You hate mandates – You’re done, you are among those who opt for MBG At a minimum you should : Ensure the ability of the LEA to accurately assess the best reimbursement option for the annual decision in September Don’t hesitate to get the expertise you need to help you with the data Preserve the district’s flexibility to opt between the MBG & Constitutional claiming option by maintaining basic processes Know Your Risks – Position the district to maintain a defensible audit position Ensure the district’s ability to file any mandates that exist outside the block grant 877.954.4357 www.sia-us.com43

44 2013 Budget Perspectives Workshops Governor’s Major Policy Proposals 877.954.4357 www.sia-us.com44

45 2013 Budget Perspectives Workshops School Facilities Eliminates minimum contribution for routine restricted maintenance Eliminates the required local district set-aside for deferred maintenance Allows districts to use proceeds from the sale of surplus property for one-time general fund purposes – after giving Charter Schools first priority (see Charter Schools section) 877.954.4357 www.sia-us.com45

46 2013 Budget Perspectives Workshops School Facilities Program Governor wants to explore State’s role in school facilities – Balance operational needs with funding – Simplify – Increase local control 2014 bond supported by State Superintendent, education community AB 41 (Buchanan) and SB 45 (Corbett) State school bond being discussed at $5-7 billion 877.954.4357 www.sia-us.com46

47 2013 Budget Perspectives Workshops Parcel Taxes Democrats 2/3 control of both houses of the Legislature Democrats have been pushing for years to lower vote threshold to pass local parcel taxes from 66.7% to 55% - the same as school facilities bonds Public opinion appears to support the lower threshold Fits with Governor’s “subsidiarity” SCA 3 (Leno), AB 59 (Bonta), and SCA 7 (Wolk) 877.954.4357 www.sia-us.com47

48 2013 Budget Perspectives Workshops Capital Appreciation Bonds (CABs) Recent press reports make them a hot issue in 2013 Political imperative fuels an outright ban – Supported by Legislature and Treasurer, Bill Lockyer – Assembly Member Hueso will introduce bill Discussions of legislative reforms include: – Limiting school bond financings to 25 years – Requiring a 4 to 1 repayment ratio – unless a waiver is granted – Disclosure (sun-shining) – Requiring optional redemption after 10 years – Limit the maximum interest rate from 12 to 8% – Added oversight by county agencies 877.954.4357 www.sia-us.com48

49 2013 Budget Perspectives Workshops Prop 39 – Energy Efficiency Passed by voters in Nov 2012 – Bond for energy efficiency for K-12, higher ed, and local governments – Generates $2.5 billion over 5 years Gov. proposes to use $450 million for K-14 with no funds going to higher ed or local governments $550 million in each of next 4 years CDE to develop guidelines for K-12 projects 877.954.4357 www.sia-us.com49

50 2013 Budget Perspectives Workshops Prop 39 – Energy Efficiency $66 per pupil ADA Funds may be used for uses consistent with the state’s loading order policies, including: – Construction or modernization of buildings in a manner that uses less energy – Purchasing energy efficient equipment – Undertaking renewable energy projects such as installation of solar panels and geothermal heat pumps 877.954.4357 www.sia-us.com50

51 2013 Budget Perspectives Workshops Adult Ed Eliminates existing Adult Ed structure Folds $558.9 million in K-12 Adult Ed funding into the LCFF Shifts $15.7 million in K-12 Apprenticeship funding to Cal. Comm. Colleges (CCC) Provides an additional $300 million in Prop 98 funds to CCC for Adult Ed New $315.7 million Adult Ed Block Grant administered by CCC 877.954.4357 www.sia-us.com51

52 2013 Budget Perspectives Workshops Adult Ed CCC Adult Ed Block Grant funding allocated based upon number of adults served – Only for core program (Elem and secondary ed, CTE, ESL, citizenship) CCC encouraged to “leverage the capacity and expertise of currently available at K-12 district adult schools.” K-12 districts may continue to operate Adult Ed programs 877.954.4357 www.sia-us.com52

53 2013 Budget Perspectives Workshops Technology-Based Learning Intended to allow schools to more easily offer asynchronous online courses to students Would create a “streamlined and outcome- focused independent study agreement” Proposal to rewrite Independent Study law to fundamentally change how ADA is generated for all students enrolled in Independent Study 877.954.4357 www.sia-us.com53

54 2013 Budget Perspectives Workshops Technology-Based Learning How it would work: – Would eliminate all current rules for Independent Study (including pupil/teacher ratios) – Parent, teacher and student develop new independent study agreement that outlines specific learning objectives – Teacher then determines if student met learning objectives – If yes = full ADA – If not = unclear (either no ADA or partial?) – Would not use testing data – would be teacher’s judgment – No bill language – details to emerge 877.954.4357 www.sia-us.com54

55 2013 Budget Perspectives Workshops Charter Schools Governor reintroduces several proposals from last year: – Give Charters Priority on Surplus Property for Five Additional Years – Extends the current one-year requirement that school districts with surplus property to first offer to sell to charter schools – Consolidate Charter Financing Authority - Shift the Charter School Facility Grant Program and the Charter School Revolving Loan Program from the CDE to the California School Finance Authority – Simplify Funding for Online Charters - Modify the SB 740 funding determination process for non-classroom based charter schools by: 1.Limiting it to the first and third years of operation in most instances 2.Requiring charters found out of compliance with minimum standards and applicable laws to comply with annual funding determinations – Allow Online Charters to access Facilities Funding - Expanding the Charter Schools Facility Grant Program to include eligibility for non-classroom based charter schools 877.954.4357 www.sia-us.com55

56 2013 Budget Perspectives Workshops Child Care CalWORKS Stage 2 funding decreased $21 million and State 3 funding increased $24.2 million to reflect movement between Stage 2 and 3 Child Care and Development Funds (federal dollars) decreased $9.8 million due to changes in carryover funds and in available base grant funds Governor calls for stakeholder meetings on restructuring Child Care Funding for Preschool stays flat 877.954.4357 www.sia-us.com56

57 2013 Budget Perspectives Workshops Nutrition Increase of $77.2 million federal funds for growth COLA of 1.65% Child Nutrition Breakfast Start-up Program 877.954.4357 www.sia-us.com57

58 2013 Budget Perspectives Workshops Special Education $3.6 million for Special Ed growth 1.65% COLA Federal and state funding streams separated Several Special Education add-on programs added into the AB 602 base calculation or consolidated AB 3632 funding preserved - not included in program restructuring Increase of $40 million to backfill one-time support from First 5 Commission in 2012 budget 877.954.4357 www.sia-us.com58

59 2013 Budget Perspectives Workshops Federal Issues - Sequestration Super committee failure to agree on $1.2 trillion in deficit reductions over 10 years triggered across-the-board spending cuts - 7.8% ($3.5 billion) Jan 1, 2013 American Taxpayer Relief Act (fiscal cliff deal) – Jan 2, 2013 – Delayed automatic cuts to March 1, 2013 – Reduced cuts by $24 billion total – Education cuts reduced to 5.9% (approximately $2.9 billion) Three upcoming battles: – Mid-February, when we reach the debt ceiling – March 1, the new effective date of sequestration – March 27, when the current Continuing Resolution expires 877.954.4357 www.sia-us.com59

60 2013 Budget Perspectives Workshops Federal Issues ESEA Reauthorization – House and Senate continue to be deadlocked – Action towards reauthorization will be delayed until after Congress deals with Sequestration, the Debt Ceiling, and Appropriations – late 2013 or 2014 at the earliest NCLB Waiver – SBE and the SPI pursued a state-defined waiver of the ESEA mandate to identify schools/LEAs in Program Improvement and of the specific sanctions imposed by ESEA on those identified – This waiver was denied in early January 2013 – SBE is considering this issue 877.954.4357 www.sia-us.com60

61 2013 Budget Perspectives Workshops Other Major Fiscal Issues in 2013 877.954.4357 www.sia-us.com61

62 2013 Budget Perspectives Workshops Redevelopment Effort to pick up $250 million of added 2012-13 savings by elimination of pass-through agreements defeated Budget Act for current year contained language for early termination of pass-through agreements: "(b) When all of the debt of a redevelopment agency has been retired or paid off, the successor agency must dispose of all remaining assets and terminate its existence within one year of the final debt payment. When the successor agency is terminated, all pass-through payment obligations will cease and no property tax shall be allocated to the Redevelopment Property Tax Trust Fund for that agency.“ No current year fiscal impact… should have been done in a policy committee Legislation will be forthcoming to protect pass-through dollars to schools 877.954.4357 www.sia-us.com62

63 2013 Budget Perspectives Workshops Common Core…and more Common Core implementation/relationship to LCFF Next Generation Science Standards 2014 adoption of math materials with ELD to follow Reauthorization of assessment system – CAHSEE – to be or not to be? – Technology capacity API revision SARC reform 877.954.4357 www.sia-us.com63

64 2013 Budget Perspectives Workshops School Safety With continued National attention on school shootings and gun violence, expect interest in school safety Renewed attention to School Safety Plan compliance – Senator Ted Lieu (D – Torrance) Renewed Attention to screening for weapons Focus on preventing access to school grounds Prompts discussion about student mental health services 877.954.4357 www.sia-us.com64

65 2013 Budget Perspectives Workshops It’s a Proposed Budget Huge policy and fiscal decisions that will indeed be modified As economy shifts, proposals are impacted The Legislature gets a say The May Revision – opportunity to adjust to political and economic factors 877.954.4357 www.sia-us.com65

66 2013 Budget Perspectives Workshops Thank You! We will plan to see you again when we return for a review of the Governor’s May Revision anticipated to be released on May 15 th 2013 Contact any of the following with questions: 877.954.4357 www.sia-us.com66 Barrett Snider Adonai Mack David Walrath Jeff Owen Download this presentation after the last workshop, February 8 th, at or

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