February 4, 2014

Outcomes for Today Better understanding of the Local Control Funding Formula (LCFF) Review the process for developing the Local Control Accountability Plan (LCAP) in IUSD with input from stakeholders 2

Local Control Funding Formula (LCFF) The LCFF is a new funding mechanism intended to: Be simple and transparent Provide maximum flexibility Based on specific considerations: Create additional resources for students with greater needs Provide for local decision making and stakeholder involvement Increase accountability Align budget with accountability plans 3

CA School Finance Before and with LCFF Before LCFFWith LCFF Revenue Limits vary from district to district. Categorical Programs required districts to establish specific programs and services with numerous and sometimes inconsistent or duplicate requirements. At one point, there were over 100 separate programs. Base Funding - The same for all districts and charters – differentiated by grade span. Supplemental Funding - Equal to 20% of the base for the unduplicated count of English Learners (EL), low-income students and foster youth. Concentration Funding - Additional funding of 50% of the base provided to districts and charters with 55% or more of their students who are EL, low-income or foster youth. 4

How LCFF Funding Looks: Revenue Limit Funding LCFF Categorical Funding (60 Programs) Categorical Funding (60 Programs) Remaining Categorical Funding (13 Programs) Remaining Categorical Funding (13 Programs) Former Funding Model New Funding Model 5

How does the LCFF work? Under the Local Control Funding Formula, funding is appropriated for education in four ways. In future years, all grants will be adjusted by a COLA 1. Base grant – per pupil 2. Supplemental grants for English-Learner, low income, and foster students 3. Concentration grants for districts with high-needs pupils at 55 percent or more of enrollment 4. Other funds outside of LCFF, such as special education 6

LCFF Base Grant - Target Base Grant – Per ADA Base grant funding is awarded based on ADA by grade span These amounts are only partially funded each year until full implementation K-3$ 6,952 + $723 with CSR 4-6$ 7, $ 7, $ 8,419 + $219 with CTE 7

Supplemental Grant - Target Supplement al Grant Supplemental grant awarded on district unduplicated count of: o English Learner o Low Income o Foster Youth Grant represents 20% of the base grant K-3$ $ $ $ 443 IUSD Unduplicated percentage is 25.65% (unofficial) 8

Concentration Grant - Target Concentration Grant Concentration grant amounts are equal to 50 percent of the base grant and allocated only if unduplicated count exceeds 55% of enrollment. Not applicable to IUSD 9 K-3$ 0 4-6$ 0 7-8$ $ 0

IUSD LCFF Funding In the governor’s plan, school district will be fully funded by This is the amount referred to as the LCFF Target IUSD’s 12/13 actual funding is referred to as the LCFF Floor The difference between the Target & Floor is referred to as the LCFF Gap Each year, a portion of the LCFF Gap will be funded. The % will be set by the governor. For 13/14, the rate is projected to be 11.78% For IUSD, this means an additional $9,068,157 in funds 10

IUSD LCFF Funding IUSD LCFF Projection Projection LCFF Target (Actual target to be reached in ) $242,107,068$255,985,042 LCFF Floor ( Actual Funding adjusted for ADA growth & any LCFF funding rec’d) $165,127,806$184,662,252 LCFF Gap = (Difference between target & floor) $76,979,262$71,322,789 Gap Funding Rate = (% of gap to be funded; set by governor) 11.78%28.05% Gap Funding Amount = (Anticipated additional funds) $9,068,157$20,006,042 Total LCFF Funding =$174,195,963$204,668,294 Includes supplemental funding 11

What does LCFF Mean for the Irvine Community? Focused funding for students with the greatest needs o English Learners, foster youth and low-income students A broader definition of school success – school district won’t be evaluated by test scores alone o LCFF requires schools to develop plans to improve student engagement, increase parent involvement, and create more positive learning environments on campus More local control – School leaders and parents will have greater influence over spending and will have flexibility at the local level to create academic programs, services and budgets to meet the unique needs of students o District budgets are required to be aligned with academic plans (Local Control Accountability Plans- LCAP) starting in July

The Plan - Local Control Accountability Plan – will Align Planning and Budgeting Past: Plans Followed Budgets (Reactive) Future: Plans Drive Budget (Proactive) The governor proposed a budget in January; districts calculated what schools would receive The planning cycle for the next school year begins in the Fall before the budget is fixed Schools and districts developed and adopted a budget quickly, in a reactive mode Planning begins with a review of the data There was not sufficient time to build community buy-in or input for the budget The longer planning cycle allows time for community engagement Schools then completed the Single Plan for Student Achievement for compliance reasons after budget was finalized Goals and priorities are in place and shape how resources are allocated when details become available 13

Implement Begin implementation of school and district plans Training and PD calendar for staff Continue to engage community on implementation Aligning Budgets and Academic Programs Finalize School Plans Implement staffing adjustments Review budget and school site plan with stakeholders Submit school plan for final School Board approval 14 Develop Goals and Priorities Review data, assess community needs Revisit district, school goals, revise and adopt Identify and prioritize strategies and activities Budget Developed Identify resources Fund high priority strategies Submit LCAP budgets to COE Gain consensus with stakeholders on school budget Plan staffing adjustments Ongoing stakeholder engagement and data analyzing

1. Credentials Materials 2. Academic Standards 3. Parental Involvement 4. Pupil Achievement 5. Pupil Engagement 6. School Climate 7. Access and Enrollment 8. Pupil Outcomes 8 State Goals 15

No. 1 Credentials and Instructional Materials Appropriate teaching assignments and corresponding credentials Sufficient standards-aligned instructional materials School facilities maintained and in good repair 16

No. 2 Academic Standards Implementation of academic content performance standards 17

No. 3 Parental Involvement Actively seek parental input Promote parental participation 18

No. 4 Pupil Achievement Percentage of English Learners proficient in English Percentage of students “3” or higher on AP exams Percentage of students college and career ready Percentage of students prepared for college (EAP) Score on API (Until replaced) Performance on Standardized Tests 19

No. 5 Pupil Engagement No. 6 School Climate No. 5 School Attendance rates Absenteeism rates Middle/High school dropout rates High School graduation rates No. 6 Student expulsion-rates Discipline data Other local measures PBIS participation IUSD Parent-Teacher-Student surveys 20

No. 7 Access and Enrollment No. 8 Pupil Outcomes No. 7 Student access and enrollment in abroad course of study, including students with exceptional needs No. 8 Other indicators of student performance which might include: o Benchmark assessments o Grades o CAHSEE pass rates o Physical fitness test o California Healthy Kids Survey Results 21

Adopting and Updating the LCAP 1. Consult with: Bargaining Units Community District Personnel Parents Pupils School Personnel Teachers 2. Present for review and comment to: Parent advisory committee (SCAC) English learner parent advisory committee (ELAC) PTA Superintendent must respond in writing to comments received 3. Opportunity for Public Input Notice of the opportunity to submit written comment Public hearing Superintendent must respond in writing to comments received Superintendent must ensure LCAP strategies are consistent with school plans and categorical programs Adoption of the Plan: Adopt the plan concurrent with the district’s budget Submit to OCDE for approval Post on the district website OCDE will post LCFF for each district/school 22

How is IUSD Preparing for LCAP? In preparation for developing IUSD’s LCAP, district stakeholders are currently identifying: IUSD Strategic Initiatives that correlate to 8 state goals Core services provided to students Needs by sub-groups Supplemental services provided to sub-groups Actions to meet the identified goals Expenditures related to state goals Indicators of success 23

LCAP Draft Development Timeline NovemberMarchAprilMayJune November 2013 Established LCAP Core Committee November 2013 Established LCAP Core Committee Dec.– March 2014 Core LCAP Committee compiles data and gathers stakeholder input March 2014 SBE releases LCAP template March 2014 SBE releases LCAP template April 2014 Board Reviews IUSD LCAP draft report June 3, 2014 LCAP Public Hearing June 24, 2014 Adopt LCAP concurrent with Budget May 2014 LCAP final report presented to Board and stakeholders May 2014 LCAP final report presented to Board and stakeholders 24