ACT25 Linking Your LCAP to the Local Agency Budget Presented by: Debbie Fry, Director, Management Consulting Services Brianna García, Director, Management Consulting Services Suzanne Speck, Associate Vice President

LCAP Life Cycle Accountability Under the LCFF Role of the Chief Business Official Working with Stakeholders Aligning LCAP Development with State and Local Budget Adoption LCAP Requirements Local Needs Assessment Demonstrating Increased and/or Improved Services The Annual Update LCAP and the Local Agency Budget Determining Funding Aligning Goals and Resource Allocation © 2015 School Services of California, Inc. 1

2 Accountability Under the LCFF Our school finance system is going through the most dramatic change since the creation of revenue limits and categorical programs The Local Control Funding Formula (LCFF) shifts the state away from a system of rule compliance to a system of local accountability The Local Control and Accountability Plan (LCAP) is the cornerstone of the state’s accountability system © 2015 School Services of California, Inc.

3 Accountability Under the LCFF Local decision making must be transparent and be based on significant levels of engagement Opportunities and challenges are many, expectations for improved student outcomes are great, and guidance has been in short supply Adoption of your first LCAP is in the rear-view mirror and undoubtedly lessons have been plentiful – still, there is much to learn © 2015 School Services of California, Inc.

County and State Superintendent Oversight Technical assistance Approval and disapproval of local plans Review data on eligible student counts Stay and rescind actions of a local governing board LCAP Local goals focused on improved student outcomes Goals aligned with annual spending plan State Requirements Performance expectations Expenditure requirements Proportionality rule Annual audit The LCFF Accountability System © 2015 School Services of California, Inc. 4

5 LCAP Guiding Principles The LCAP is built upon the following guiding principles: Subsidiarity: Decision making is most effectively accomplished at the local level The LCFF provides local educational agencies (LEAs) flexibility in the use of LCFF funding to improve student outcomes The LCAP will be highly contextual and support the sharing of the LEA’s local story © 2015 School Services of California, Inc.

6 LCAP Guiding Principles Transparency The LCAP will include information necessary to demonstrate that the LEA is using LCFF funding to increase and improve services to the neediest students The LCAP and the LEA’s spending plan will be accessible to stakeholders Student Focused The LCAP will be based upon an assessment of local needs The goals and actions of the plan will focus on improved outcomes for students and the closing of the achievement gap © 2015 School Services of California, Inc.

Ensures that the obligation to consult with employee organizations and to facilitate a response to comments by advisory groups is met Recommends specific strategies to the Board and implementing those that are adopted Leads the cabinet in conducting the local needs assessment that will drive plan development © 2015 School Services of California, Inc. 7

Be an integral part of the LCAP Leadership Team and participate in the local needs assessment Participates in the engagement process and facilitates discussions related to proportionality and the dollars available to support core program and supplemental programs Ensures that the LCAP expenditures align with the LEAs budget © 2015 School Services of California, Inc. 8

The Board sets the direction for the development of the LCAP Board hears and evaluates input from the administration, the community, and all stakeholders plus conducts public hearings in accordance with the law Ultimately, the Board gives final approval to both the LCAP and the district budget, and ensures that they are consistent and represent the community’s interest © 2015 School Services of California, Inc. 9

10 Levels of Engagement as Required by Statute Consultation with: Teachers Principals School personnel Pupils Local bargaining units Present for review and comment to: Parent advisory committee English learner parent advisory committee The Superintendent must respond in writing to comments received Opportunity for public input: Notice of the opportunity to submit written comment Public hearing Adoption of the plan: Adopted concurrent with the LEA’s budget Submitted to county office of education (COE) for approval Posted on district website COE posts LCAP for each district/ charter school or a link to the LCAP © 2015 School Services of California, Inc.

11 The life cycle of the LCAP is one of continuous reflection, adaptation, and growth The Life Cycle of the LCAP July – October Evaluate progress Conduct needs assessment Consult stakeholders November – January Identify goals, actions, and services With Governor’s January Budget, align resources Consult stakeholders February – March Draft Plan Present to advisory groups Respond to comments Adjust to reflect input April – June Review progress and consult stakeholder in completing annual update and making needed revisions Finalize following May Revision Hold public hearing Adopt and implement © 2015 School Services of California, Inc.

LCAP Requirements

13 Needs Assessment A robust needs assessment is the foundation of an effective LCAP... is the first critical step in the LCAP process... will provide student performance data... will identify the actual needs of the students and any deficiencies... should be used to develop strategies to address identified deficiencies... should determine priorities, as all strategies cannot be implemented at once... should be completed prior to starting the engagement process... should be used to solicit input from stakeholders © 2015 School Services of California, Inc.

14 Qualitative and Quantitative Data Address eight state priorities Address metrics required by statute Look to existing district programs and metrics Look both by school site and district- wide Needs Assessment © 2015 School Services of California, Inc.

A single year of data does not establish a trend Making program and service decisions based on a single year of data could result in unnecessary redirection of resources Having trend data will help identify areas of need and facilitate effective resource allocation Present data for multiple years by school site and by subgroup Holding stakeholder meetings without data or a well-crafted plan can lead to unfocused and unproductive discussions Be strategic in selecting what and how information is shared with stakeholders to avoid stakeholder exhaustion and disappointment that can lead to a difficult adoption process Use the needs assessment to identify areas with significant gaps If the data shows a significant gap in achievement for any subgroup in any area, ensure that these areas are priorities and identify goals and actions to address these deficiencies Trends Accessibility Achievement Needs Assessment © 2015 School Services of California, Inc. 15

16 Federal Funds – “Supplement” Not “Supplant” The LCFF does not recognize supplemental and concentration grants as restricted dollars As LEAs create expenditure plans, it will be important to follow the federal guidelines and ensure LEAs can clearly demonstrate that Title I and Title III funds are used to provide services and support that meet the following criteria: Are above and beyond the “core” program Were not previously funded with a state or local resource © 2015 School Services of California, Inc.

17 Federal Funds – “Supplement” Not “Supplant” There’s uncertainty on the approach the federal government will take as it relates to the uses of supplemental and concentration funds as well as ways to demonstrate supplemental services to their satisfaction LEAs with varying student demographics amongst school sites should consider the way staff and other expenditures are funded across the LEA so they do not risk penalties Our advice: Establish and document the “core” program and add supplements to the “core” program © 2015 School Services of California, Inc.

18 Base Grant Expenditures It is very clear that the LCAP must describe how the supplemental and concentration grant dollars are being used to support increased/improved services to the eligible students But the LCAP must also describe goals and actions related to all students and statistically significant subgroups Nowhere does the statute or the spending regulations say that the LCAP must include a description of how the LEA will expend all base grant dollars But it should include a description of any base grant expenditures that support the goals and actions articulated in the LCAP © 2015 School Services of California, Inc.

19 Base Grant Expenditures The LCAP is goal and student focused, and addresses resources that support activities designed to achieve the identified goals for all students and for significant subgroups The LCAP includes any resources that meet these criteria, but not all resources in a budget We recommend a district first identify its base or core program offerings Once core programs have been clearly documented, you can move on to supplemental and concentration grant expenditures © 2015 School Services of California, Inc.

20 Supplemental and Concentration Grant Expenditures California Code of Regulations details the requirements for LEAs to demonstrate increased or improved services for unduplicated pupils in proportion to the increase in the funds apportioned for supplemental and concentration grants To increase services means to grow services in quantity To improve services means to grow services in quality The Education Code now gives the local governing board broad authority as to what services to offer But the student population to be served with targeted funds is still well defined © 2015 School Services of California, Inc.

21 Proportionality Section 3 of the LCAP requires an LEA to demonstrate proportionality LEAs need to describe how they are meeting the proportionality requirement Answer the question, “Do these services meet the minimum proportionality percentage when compared to what is being offered to all students?” © 2015 School Services of California, Inc.

22 Proportionality Describe services provided to students that generate the supplemental and concentration grant funds The description should include details on the increased or improved services above and beyond what is provided to all students The description can be qualitative and/or quantitative so long as the LEA can demonstrate improved and/or increased services to unduplicated students © 2015 School Services of California, Inc.

Annual Update LEAs must continuously measure progress in order to make effective program and service decisions The template approved by the State Board of Education (SBE) in November 2014 requires LEAs to measure progress on actions and services implemented in the current fiscal year However, LEAs should review trend data prior to revising goals, actions, and services Update needs assessment to include data Complete Annual Update measuring progress on actions and goals Update needs assessment to include data Complete Annual Update measuring progress on actions and goals Update needs assessment to include data Complete Annual Update measuring progress on actions and goals © 2015 School Services of California, Inc. 23

Annual Update The Annual Update template requires LEAs to compare expected outcomes and budgeted expenditures to actual outcomes and estimated actual annual expenditures in order to measure progress Source: California Department of Education § Local Control and Accountability Plan and Annual Update Template ( BE/ag/ag/yr14/docume nts/sep14item18a3.doc) © 2015 School Services of California, Inc. 24

25 Annual Update In addition, the Annual Update template requires LEAs to explain the changes in actions, services, and expenditures that will be made as a result of the progress review While the Annual Update provides LEAs with an opportunity to measure progress, the state will also be measuring progress through the use of evaluation rubrics – and intervening under certain circumstances © 2015 School Services of California, Inc.

26 Evaluation Rubrics Assist LEAs in evaluating its strengths, weaknesses, and areas that require improvement Assist county superintendents in identifying school districts and charter schools in need of technical assistance and the specific priorities upon which the technical assistance should be focused Assist the State Superintendent of Public Instruction (SSPI) in identifying school districts for which intervention is warranted © 2015 School Services of California, Inc.

Measuring Progress Improved Outcomes The school district or COE does not improve outcomes in regard to more than one state or local priority in three out of four consecutive school years for three or more identified subgroups (if less than three subgroups all must show improvement) California Collaborative for Educational Excellence (CCEE) Assistance CCEE provided advice and assistance and: The school district or COE has failed or is unable to implement the recommendations The school district or COE has failed or is unable to implement the recommendations Inadequate performance of the school district or COE, based on the SBE-adopted evaluation rubrics, is so persistent or acute as to require intervention Inadequate performance of the school district or COE, based on the SBE-adopted evaluation rubrics, is so persistent or acute as to require intervention SSPI Intervention With SBE approval, if both of the following occur © 2015 School Services of California, Inc. 27

Make changes to the district or COE LCAP Possible Intervention Develop and impose budget and LCAP revisions to improve student outcomes Possible Intervention Stay or rescind an action, if not required by a local collective bargaining agreement, that would prevent the improvement of student outcomes Possible Intervention Measuring Progress © 2015 School Services of California, Inc. 28

29 Michael Watkins County Superintendent appointed by the Senate Rules Committee Tim Sbranti Teacher appointed by the Speaker of the Assembly Sandra Thorstenson Superintendent of a school district appointed by the Governor Tom Torlakson SSPI or designee Sue Burr President of the SBE or designee California Collaborative for Educational Excellence The CCEE was developed to advise and assist school districts, county superintendents of schools, and charter schools in achieving LCAP goals The Riverside COE is the fiscal agent for the CCEE © 2015 School Services of California, Inc.

30 SSPI can direct CCEE to advise and assist a school district, county superintendent of schools, or charter school under the above circumstances 1 If the governing board of a school district, county board of education, or governing board of a charter school requests advice and assistance 2 If the county superintendent determines advice and assistance is necessary to help the school district or charter school accomplish its LCAP goals 3 If the SSPI determines advice and assistance is necessary to help the school district, county superintendent of schools, or charter school accomplish its LCAP goals California Collaborative for Educational Excellence © 2015 School Services of California, Inc.

31 Notes:

LCAP and the Local Agency Budget

33 Expenditure Requirements First, in order to determine how much is allocated to the base, supplemental, and concentration grants, a calculation must be performed Using the School Services of California, Inc., LCFF Simulator, average daily attendance (ADA) factors are inputted, and the calculation is completed with current and out year projections that provide a breakdown of base, supplemental, and concentration grant funds Go to: © 2015 School Services of California, Inc.

Frequently Asked Expenditure Questions Must all LCFF funds (base, supplemental, and concentration grants) be identified in the LCAP, or are we only required to document the use of supplemental and concentration grant funds? How do we demonstrate proportionality in the LCAP? © 2015 School Services of California, Inc. 34

35 Supplemental and Concentration Grant Expenditures We expect services included in the LCAP to vary widely from district to district based on the number of eligible students Students generating targeted funds vary from nearly 0% to nearly 100% Section 3 of the LCAP requires LEAs to: List the goals and activities related to increased and improved services Assign a dollar value to the services The dollar values are included in the agency’s budget beginning in and each year thereafter © 2015 School Services of California, Inc.

36 Supplemental and Concentration Grant Expenditures Although LCFF resources are unrestricted and the CDE will not provide Resource Codes to track the increased or improved services to students, we think it makes good sense to define Resource Codes or Goals locally in order to report and track these expenditures Here are some reasons we recommend tracking the expenditures in this manner: LEAs can track and report activities and expenditures used to increase and improve services © 2015 School Services of California, Inc.

37 Supplemental and Concentration Grant Expenditures A separate Resource Code or Goal allows LEAs to demonstrate expenditures associated with proportionality funding Tracking expenditures related to improved or increased services as they occur is much easier than trying to reconcile expenditures after the fiscal year is complete © 2015 School Services of California, Inc.

38 Supplemental and Concentration Grant Expenditures It is easier to assign and track expenditures related to increased services Increasing staffing for “(fill in the blank)” Adding instructional minutes to the school day Extending work calendar for professional development Expenditures included in the LCAP should be described in sufficient detail to determine where they can be found in a district budget The COE will need to know where the expenses are in the budget © 2015 School Services of California, Inc.

39 Supplemental and Concentration Grant Expenditures And, although there are no requirements currently to track expenditures, rules can change! So, how should we think about tracking expenditures related to improved or enhanced services? Example 1 – Existing counselors provide specialized services to the students with the highest needs Counselors track student contacts to demonstrate improved services © 2015 School Services of California, Inc.

40 Supplemental and Concentration Grant Expenditures Example 2 – Classroom teachers use strategies from professional development opportunities that are designed to improve student learning Based on the two examples, a portion of the time dedicated to these activities that improve services to students could be attributed to supplemental and concentration grant funds © 2015 School Services of California, Inc.

41 Best Practices – Budget and LCAP Once the LCAP template is complete, consider preparing a combined LCAP and Budget document, to include: Executive summary Overview of the LCAP Overview of Funds Appendices A comprehensive document with an executive summary demonstrates the full effort towards stakeholder engagement and transparency throughout the lengthy process © 2015 School Services of California, Inc.

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43 Notes: