1. 1 Governor’s 2013-14 Budget Proposal

2. 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.com2

3. 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.com3

4. 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.com4

5. 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.com5

6. 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.com6

7. 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.com7

8. 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 8 877.954.4357 www.sia-us.com

9. LCFF Funding 9877.954.4357 www.sia-us.com 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

10. 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.com10

11. 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.com11

12. 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.com12

13. 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.com13

14. Thank You! 14 Adonai Mack Legislative Advocate amack@acsa.org (916) 444-3216