1. San Diego Convention Center CBO20 LCFF Budgeting and Planning
March 30 – April 2, 2015
San Diego Convention Center
CBO20 LCFF Budgeting and Planning
Presented by: Robert Miyashiro, Vice President
Sheila Vickers, Vice President
Michael Ricketts, Associate Vice President

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How much of the purchasing power lost during the recession has been restored through the Local Control Funding Formula (LCFF)?

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Must all LCFF funds (base, supplemental, and concentration grants) be identified in the Local Control and Accountability Plan (LCAP), or --- are we only required to document the use of supplemental and concentration grant funds?

6. Supplemental/Concentration Grant Funds
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Supplemental/Concentration Grant Funds
Regulations make it clear that the LCAP must describe how supplemental and concentration grant funds are being used to support increased and/or improved services to eligible students
Also, the LCAP must describe actions and services for all students, so base grant expenditures should be specified as necessary in support of these actions and services
But there is no requirement to account for all base grant funds – in fact, base grant funds are required to support other operational purposes

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What are the long-term implications of the Proposition 98 minimum funding guarantee for achieving the LCFF target by and reaching funding “adequacy?”

8. Long-Term Proposition 98 and LCFF
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Long-Term Proposition 98 and LCFF
Over the long term, Proposition 98 is funded based on Test 2 – per capita personal income change
Over the last two decades, per capita personal income has averaged about 3.8% annually; inflation outlook is about 2.3%
While the early years of LCFF have seen huge increases in gap funding ($2.1 billion in ; $4.7 billion in ; $4 billion proposed for ), these increases will taper off
“Adequate” funding for K-12 education will be ever elusive under Proposition 98

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The LCFF is a distributional, rather than adequacy-based, formula. How is it changing funding statewide?

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Can supplemental and concentration grant revenues be used to fund increased expenses in our special education program?

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Special Education
Yes, to the extent that the supplemental/concentration grant funds are generated by special education students
Those that are also in the unduplicated count
Remember – the funds must be used to increase or improve services, so they must be used in a supplemental way

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How do LCFF cost-of-living adjustments (COLAs) compare with the cost increases districts will likely face?

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LCFF and COLAs
During the implementation phase, the LCFF does not provide COLAs in the same manner as under revenue limits
Base grants, which support general district operations, account for about half of the proposed $4 billion increase in , or about $330 per ADA
Statutory COLAs are forecast to average 2.3% through
By , the Department of Finance (DOF) projects that LCFF gap funding will be $976 million, which equates to a base grant increase of about $80 per ADA

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If the memorandum of understanding with our teachers’ union for an alternate class-size maximum for grades Transitional Kindergarten (TK) through 3 expires, what is our requirement for class size under the progression to 24:1?

19. Requirement for Class Size
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Requirement for Class Size
In the absence of a precedent, to minimize the risk of your districts losing the grade span adjustment (GSA) funds
We recommend this conservative approach:
Plan for making progress to the point that you would have been required to all along without a collectively bargained agreement
Start with actual average class sizes in
Calculate the progress toward 24:1 required each year since
Reduce class sizes to that level

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What happens if Proposition 30 taxes expire and a recession hits? What should we be prepared for?

21. Proposition 30 Expiration and LCFF
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Proposition 30 Expiration and LCFF
Proposition 30 provides about $8 billion in additional General Fund revenue, but the sales tax rate expires in 2016 and the high bracket income tax rate expires in 2018
The revenue loss will squeeze Proposition 98 funding
The DOF projects declining increases in LCFF gap funding from $4.7 billion in to under $1 billion in , but no recession
ITR Economics forecasts a recession in 2019
With a recession, gap funding could be zero

22. Thank you for attending!