1. Tehama County Office of Education Special Appreciation Dinner Leadership In The Era Of The Local Control Funding Formula October 2, 2013 Corning, CA Presented by: Joel Montero, CEO FCMAT

2. Trustee Roles In The New Era You are elected to do fulfill many functions several of them fiduciary in nature The role of school boards and individual trustees is never more important than now The Local Control Funding Formula (LCFF) is based on local control and flexibility in the use of resources The fiscal basics are not difficult to understand and you should be able to perform some critical analysis on your own. There are some basic tools provided for you to assess your budget 2

3. Putting the LCFF in Context It’s a funding model We are in transition There are more issues than there are answers Fair Share & Basic Aids Necessary Small Schools Provision 2/3 Schools Declining Enrollment Adjustment Transportation Annual Audit Guide Revenue Projections

4. Putting the LCFF in Context The Local Control Funding Formula Calculator Data Management/Quality and CALPADS Local Control Accountability Plans (LCAP) Budget and LCAP approval time lines State Task Force Regulations CCEE Development and Governance FCMAT Role SBE and the CDE

5. Managing the LCFF Maintain reserves—how much is enough? Preserve cash and avoid the need to get a TRAN. If you don’t have to borrow, don’t Understand how you are impacted by the LCFF Communicate accurately and regularly to your constituents Work closely with your county office of education staff. They have the most up to date information related to changes in the implementation for LCFF

6. Managing the LCFF Define a bargaining strategy. The game has changed! Use the tools—BASC Calculator, SSC Simulator, FCMAT Budget Explorer and Smart Charter Invest in data management—accuracy is key! Understand that 2013-14 is a massive transition year and that the LCFF is a paradigm shift both on a policy and financial level Create your own district Profile!!!

7. Some Realities Setting Parameters Old School Education Will Get Adequate Funding Solutions Will Come From Sacramento You Can Do More With Less Reacting to Budget Reductions Suggested by Someone Else Averages Apply to Most Districts It’s Revenue Limit funding forever Cash is an afterthought

8. Some Realities Setting Parameters New School Local Control Funding Formula is a game changer and most districts will get more Every District Is Different and the impact of LCFF is unique for all Budget planning is more difficult and MYP is a challenge The state has redistributed but not dramatically increased funding for education Conservation of Staff Budget Solutions Are Still Generated Locally An 8 year implementation cycle is long! Cash is a Continuing Challenge

9. What Works Honesty and Integrity Focusing on the Big Picture First Having Good Materials and Information Tailored to the Specific Audience A Common Message and Purpose With Many Voices Trusting Your Public Doing your homework

10. The Good News California has a growth economy Proposition 30 passed Cash deferrals are less in 2012-13 and 2013-14 The Governor’s budget is balanced Proposition 98 increases LCFF will help most districts and hold others harmless The public still strongly supports education

11. Red Hot Topics LCFF—Implementation and Accountability State Revenues and growth Collective Bargaining Pension Changes Capital Appreciation Bonds (Debt) Career Tech (ROP MOU) Sequestration Proposition 39

12. Questions Proposition 30—Are we saved? LCFF—Are we saved? As a board member, what is the most significant fiscal issue of which I should be aware today?