1. Russell Frank, Ph.D. Director II Assessment and Accountability Services Mike Barney Director II Instructional Services LCFF and LCAP Reshapes School Funding and Accountability Part I: LCFF Russ Frank RCOE

2. Resources School Services of California Legislative Analyst’s Report WestEd Special Thanks to: Nancy Sheets: Director II, RCOE Paul Jessup: Deputy Superintendent, RCOE Bill Spires: Director II, RCOE Art Davis: RSDSS Director, Madera County Office of Education Janelle Kubinec: Director, National and State Special Projects, WestED

3. Outcomes 1.Understand how the components of LCFF return districts to 07-08 funding over time 2.Discuss the implications for districts 3. Pose questions for follow up.

7. Local Control Funding Formula Components 1.Target Base Rates Per 4 Grade Spans 2.Adjusted Base Rates for CSR and CTE 3.Supplemental Funding for any EL or LI 4.Concentration Funding for ELs and LIs above 55% of total enrollment 5.TIIG Add-On 6.HTS Transportation Add-On 7.Economic Recovery Target Add-On 8.“Commitment” to close the gap and COLA

8. Formula Components of the LCFF: 1 Target Base Rates Per ADA in CALPADS K-3:$6,845 4-6$6,947 7-8$7,154 9-12$8,289 It’s like the revenue limits of old. Basic Rate for All Kids

9. Per ADA in CALPADS K-3:$6,845 4-6$6,947 7-8$7,154 9-12$8,289 * Basic Rate for All Kids * Like a the Old Revenue Limit Formula Components of the LCFF: 1

10. Formula Components of the LCFF: 2 Adjusted Base Rates (ABR) Let’s keep class sizes low in K-3 -- 24-1 or negotiated level: Add 10.4 percent of the base rate. It costs more to educate 9-12 -- Targets CTE Add 2.6 percent of the base rate. CSR K-3 and CTE 9-12

11. Provisions for K-3 CSR Adjustment K-3 CSR at 24-1 by 20-21 Unless CSR is collectively bargained otherwise If negotiated at a different rate, LEA not subject to provision. If class size larger than 24 LEA must make progress toward reducing the gap by 10 % annually during transition.

12. Formula Components of the LCFF: 3 Supplemental Funding The following subgroups offer more challenges to educators: Low Income (LI) or what we used to call SED. Foster Youth as LI English Learners Add 20% of the ABR per eligible student SED or Low Income (LI) & English Learners ELs

13. Calculating Supplemental Funding Foster Youth are LI EL/LI calculated on 3 year rolling average from CALPADS taken from CBEDS. 2013 CBEDS for 13-14 LCFF Unduplicated count. An EL who is low income = 1 student.

15. Dilemma of Reclassification Student Reclassified as FEP who is NOT also LI no longer generates extra $$$. LCAP Connection.

16. Supplemental Follow up Challenge: districts need to find out what their unduplicated 13-14 counts are.

17. Think About It What are the implications for your district? What questions arise for you? Share these thoughts with your partners

18. Formula Components of the LCFF: 4 Concentration Funding High concentrations of ELs and LI present an even greater challenge for LEAs. Each unduplicated LI or EL above 55% of enrollment generates 50% of the ABR For Districts with many ELs & LI

20. Will You Get Concentration Funding?

23. LEA Ensures “Proportionality” “Increase or improve services for ELs/LIs in proportion to the increase in funds apportioned on the basis of the number and concentration of unduplicated pupils” ?

24. LCFF and LCAP Templates WestEd and CDE role Fiscal Guidance by January 30, 2014 Preview of Fiscal and LCAP by November 6-7 2013? RCOE Preview Nov. 21, 2013 LCAP Template by March 30, 2013

25. Think About It What are the implications for your district? What questions arise for you? Share these thoughts with your partners

26. Formula Components of the LCFF: 5 Targeted Instr. Improve. Grant If received in 12-13 will receive again through 20-21. Can be used for any educational purpose. See list of RC districts First of Three Add-Ons

28. Formula Components of the LCFF: 6 Home/School Transportation (HTST) If LEA received HTST in 12-13 it will receive again through 2020- 21. Restricted to transporting eligible students. See list of RC districts. Second of Three Add-Ons

30. Formula Components of the LCFF: 7 Economic Recovery Target (ERT) In the transition from 2007-08 formula to LCFF, some LEAs (230) lose funding due to their former concentrations of categorical funds. ERT is like a hold harmless for these LEAs. = increase each year for 8 years Likely no ERTs in RC Third of Three Add-Ons

32. 2013-14 Categorical Survivors

33. Formula Components of the LCFF: 8 Gap Funding 1. Fully funding LCFF in one year would cost $18 billion. 2. Target: Let’s get back to 2007-08 Levels 3. Gap funding “Commit- ment”: Aimed at closing each LEA’s difference between the 20-21 target funding and 13-14 funding by 12% annually. 8 Years to Close Funding Gap TARGET LCFF Funding

34. Getting to the Targets Leverage for Closing the Gap “Commitment” to funding gap closing COLA increases to the Base Rate P1 in December: LEAs paint the first fuzzy picture of the increases. P2 in April: LEAs should generate a clearer idea of increase.

35. LCFF/LCAP Summary Reforms state’s much criticized funding mechanism. Far greater LEA flexibility on meeting student need. More meaningful stakeholder input during development.

36. Major Shifts Made by the Local Control Funding Formula Before LCFF Revenue Limits State categoricals w/temporary tiered flex K-3 CSR: Limited funding with unlimited class sizes Accountability and performance separate from funding After LCFF LCFF base funding dif- ferentiated by grade span. Unduplicated pupil weights, concentration funding K-3 CSR targeting 24-1 Local Control Accountability Plans required. (July 1, 2014)

37. What Stays the Same? Financial Audits Compliance with Williams School Accountability Report Cards Federal funding, planning and accountability LEA as subgrantee of the state

38. Downside? Economic downturn. Low income districts vulnerable. Prop 30 phase outs: 2016, 18 In 20-21 gets us to where we were in 07-08.

39. Think About It What are the implications for your district? What questions arise for you? Share these thoughts with your partners