Annual usiness Managers’ Meeting · 2016-03-17 · • Second: Make high earner tax increase...
33
Annual Business Managers’ Meeting 2016 Alice Miller Carlyn Obringer
Transcript of Annual usiness Managers’ Meeting · 2016-03-17 · • Second: Make high earner tax increase...
Annual Business Managers’ Meeting
2016
Alice Miller
Carlyn Obringer
Agenda• Budget & Prop 98 Updates
• LCFF rates and calculations
• One Time Funding
• Other Opportunities
• Updates
• Legislative Update
• Deadlines
Information in this presentation is accurate as of the posting date. Updates will be provided as the budget process continues. Be sure to sign up for our Weekly Member Digest and Capitol Updates for up to the minute information.
Overview
• Overall positive state economic situation
• Emphasis on economic volatility and certainty of recession in future
• Almost $5.4B in LCFF implementation funding (schools at 95% implementation)
• COLA .47% (lower than previous estimates)
• $1.2B in one time funding based on per ADA prior year P2 attendance
3
Overview 2
• $20M Charter School Startup Grant
• SB 740 retains $20M from prior budget and eligibility thresholds at 55%
• SPED increase for COLA and increased eligibilities
4
Economic Overview • State economy continues to grow
• Increased job growth (1.1M jobs restored)
• Largest increased revenues due to capital gains, increased real estate prices (taxes and new construction) and improved employment rate
• 69% revenues based on personal income tax with top 1% contributing half
• In year 6 of an upswing – average 5 years
• Increased funding to state rainy day fund (to $8B)
5
Issues
• Near the end of the LCFF implementation. Future increases will drop significantly as Maintenance Factor debt is repaid. Assume a 2%-4% increase in future years + COLA
• The STRS/PERS increased costs will absorb much of the recent increases (25%)
• No state facility bond proposed in budget
• Prop 30 due to expire beginning in 2016 (provides at least 22% of Prop 98 funds)
• Increase reserve levels!
2016-2017 Proposed LCFF Rates
Funding Element Target Amount for 2016-17
Grade K-3 Base Target $7,116
Grade K-3 Grade Span Adjustment $740 (10.4% of K-3 target)
Grade 4-6 Base Target $7,223
Grade 7-8 Base Target $7,438
Grade 9-12 Base Target $8,597
Grade 9-12 Grade Span Adjustment $224 (2.6% of 9-12 target)
Supplement per unduplicated Free or Reduced Priced Meal
Eligible Pupil, English Learner or Foster Youth
20% of average base and add-on funding per eligible ADA
Concentration Supplement per pupil above 55% of the lesser of
total district or charter percent high need
50% of average base and add-on funding per eligible ADA above
55%
Percent of gap between current funding and target funded in 2015-
16
49.08%
Supplemental and Concentration Grants
Grade Span Per ADASupplemental
Grant
Concentration
Grant
K-3 $7,857 $1,571 $3,929
4-6 $7,223 $1,445 $3,612
7-8 $7,438 $1,488 $3,719
9-12 $8,842 $1,768 $4,421
One Time Discretionary Grant• $1.2 billion
• Based on average daily average daily attendance (ADA) reported at the 2015-16 P2.
• New schools not eligible
• $200-214 per ADA (state ADA has declined)
• Flexible, one-time spending with no restrictions
• No forms, no reporting requirements, not subject to Audit
• Could include activities such as standards alignment, instructional materials, technology, teacher training or deferred maintenance
• Offsets mandates reimbursement requirements for districts
• Assume similar disbursement schedule to 2015-16 grants: 3 apportionment payments: 40% December; 40% January; 20% March
Educator Effectiveness Update
• The template can be found at: http://www.cde.ca.gov/fg/aa/ca/educatoreffectiveness.asp
• Will be online submission form
• Due no later than July 1, 2018
• Restricted revenue, subject to audit
• Board approved expenditures
Educator Effectiveness Grant
$20M Startup Grants • $20 million is provided to support operational and
start-up costs for new charter schools in 2016 and 2017
• To help offset the loss of federal PCSGP start-up grants.
• State funded grants. They need not follow the explicit requirements of the federal program.
• We anticipate a much more streamlined allocation process but no details have been released yet
Early Education Block Grant• Consolidating Preschool, Transitional Kindergarten,
and Preschool Quality Rating and Improvement System Grant into one block grant
• Limited details
• Priority to serve most at risk students
• Hold harmless clause
• Continue to use current rules but watch this one!
Facilities • No facility bond proposed. Neither SB 114 nor AB 148
moved forward
• Gov. suggests further reliance on local bonds under Prop 39 – very successful
• Looking at opportunities to provide low cost loans
• $9 billion statewide school bond for the November 2016 ballot has qualified
• $500M set aside for charter schools
• Prior regulations will be in force
SB 740
• Retains the increased funding to $112 to fundAB948 reduced eligibility requirements
• 55% FRL threshold – which matches the Concentration Grant LCFF threshold
• Retains the $750 per ADA or 75% reimbursement• All eligibilities will be considered at once, not a
tiered process• http://www.treasurer.ca.gov/csfa/csfgp/index.asp• No proposed change in non-classroom based
eligibility• Please see our Capitol Alerts and Updates
Others• No change to the mandate block grant for 2016-
17
• Mandate Block Grant provides $14 per ADA in grades K-8, and $42 per ADA in grades 9-12 to charter schools that choose to participate.
• ~100% charter participation
• Lottery $181 ($140 unrestricted, $41 restricted Prop 20)
• No change in SPED, .47% COLA increase. Small Federal increase
Career Technical Education (CTE)• Program undersubscribed • If you applied and were eligible you were funded• No word on second round – appears unlikely• New Federal CTE Makerspace competition. $20,000• April 1st deadline• https://www.federalregister.gov/articles/2016/03/
09/2016-05292/announcement-of-requirements-and-registration-for-the-career-and-technical-education-makeover
EPA Prop 30• Two proposals to extend Prop 30 submitted to AG
• First: Extend taxes on high earners to 2030 but no extension of ¼% sales tax increase. Revenues not subject to Rainy Day Funds
• Second: Make high earner tax increase permanent and add additional taxes for incomes >$1M. Creates new fund (not EPA) with revenues split between K-14 and other early childhood education and health initiatives
• Voters supportive in general
• 22% Prop 98 funding comes from the EPA
• Some economists predict a downturn in economy in 2018 or 2019
• DOF modeled a medium recession beginning in 2017-18 and predicted state shortfall of $55B in 2019-20. Model only but build reserves!
Other Funding Factors SSC
School Services “crystal ball”
Factor 2015-16 2016-17 2017-18 2018-19 2019-20
Statutory COLA 1.02% 0.47% 2.13% 2.65% 2.72%
COLA on state and local share only of Special Education, Child Nutrition, Foster Youth, Preschool, American Indian Education Centers/American Indian Early Childhood Education
1.02% 0.47% 2.13% 2.65% 2.72%
California Consumer Price Index 1.90% 2.22% 2.52% 2.62% 2.52%
CaliforniaLottery
Base $140 $140 $140 $140 $140
Proposition 20 $41 $41 $41 $41 $41
Interest Rate for Ten-Year Treasuries
2.21% 2.40% 2.75% 2.80% 2.70%
CalPERS Employer Rate (projected)
11.847% 13.05% 16.60% 18.20% 19.90%
CalSTRS (Employer Rate (statutory)
10.73% 12.58% 14.43% 16.28% 18.13%
LCAP• Statutory Requirements (E.C. 52064.05) SBE to
develop rubrics
• Adoption of SBE LCAP evaluation rubrics postponed to October 2016
• CCSA workshop on LCAP completed. Several conference sessions on LCAP http://cdefoundation.org/lcap-survey/ March 25th
• New template due in fall/winter
• Current template in use for 2016-17 (due July 1)
Reserve Levels• Does not apply to charter schools. District reserve
limits
• 4 conditions that need to be met
• If Rainy Day Fund is funded at $8B as proposed, 3 of the 4 conditions will be met
• Very unpopular with all education groups
• No statutory requirement for charter reserves (not a good practice!!)
• Be aware of district’s concerns and charter differences
• NCB charters funding determination issues
PERS• IRS Update. PERS now accepting new charter school
employees. Must fill out questionnaire. Working with us to update.
• Service circular number 200-005-14 has useful information on questionnaire and charter schools
• New 1-800-253-4594 for urgent, critical and time sensitive requests. High profile and media requests
• New rapid phone responses and requests
• Updated website with updated search engine
• [email protected] email
Student Confidentiality• Forms on CDE Website
• May print out and complete the “Objection to Disclosure of Student Information and Records Case No. 2:11-CV-03471” form at the CDE’s website www.cde.ca.gov/morganhillcase
• April 1st Deadline to file objection
• Current situation court order reversed but still an open issue
• http://www.cde.ca.gov/re/di/ws/documents/order2016jan26.pdf#search=student%20confidentiality&view=FitH&pagemode=none
Health & Safety Plans• March 1st Deadline for districts
• Not required by charter schools
• Covered under the petition section
• Best Practice
• Now often required in the renewal process
• How to handle intruders? Keep in classroom or safe egress? Notification to families. Communications with staff and classrooms.
• COE’s often have resources
AB 2706, CAHSEE • AB 2706 requires schools to add an item to its enrollment forms or modify
an existing item in order to provide the parent or legal guardian information about health care coverage options and enrollment assistance.
• http://hbex.coveredca.com/toolkit/school-educator/
• SB 172 CAHSEE State contract with publisher ended in May. Governor exempted 2015 graduates without access.
• No CAHSEE requirement through 2018. Retroactive. No specific notification requirements posted. Likely new test in future.
• http://edsource.org/2015/bill-allowing-diplomas-for-students-who-failed-exit-exam-goes-to-governor/86521?utm_source=Erins+daily+email%2C+Sept.+14%2C+2015&utm_campaign=Daily_4-24-15&utm_medium=email
Independent Study• Budget trailer bill AB 104 revised calculation of methodology
for student to teacher ratios for Independent study
• Restores previous calculation for charter school IS programs to use 25:1 student to teacher ratio
• AB 1426 was held in committee.
• 2 year bill, could move again in Spring 2016
• Would allow a NCB charter school to be eligible for facilities programs if they operate between 80% to 60% onsite and operate one facility within its authorizer’s boundaries, and have no more than one resource center outside the district.
Legislative Update
• Annual Compilation of Laws
• http://www.ccsa.org/2010/12/2011-annual-compilation-of-selected-laws-applicable-to-charter-schools.html
• Feb. 19th deadline for new bill submissions –LONG list http://ctweb.capitoltrack.com/public/publish.aspx?session=15&id=54086d24-a575-49c0-b2d8-b87ec7637f34
• Capitol Updates Thursdays!27
CCSA Sponsored LegislationFocus: Facilities & Authorizing
AB 1198 Credit Enhancement Program: Creates the California Credit Enhancement Program within the California School Finance Authority to provide lower cost alternatives for charter school facility financing. Two year bill, can move as late as August 2016
AB 1426 Blended Learning: Would allow a NCB charter school to be eligible for facilities programs if they operate between 60% to 80% onsite and operate one facility within its authorizer, and have no more than one resource center outside the district. Two year which could move before late Spring 2016
Establish complaint process for charters and districts to present grievances
Establish criteria for districts and County Offices to expand chartering opportunities
Establish accountability for authorizers -
Equitable bond funding for charter schools proportional to charter percentages
28
Eliminate Charter School Initiative
https://www.votervoice.net/CCSA/campaigns/45145/respond
• Have parents send letters to their assembly members and state senators.
• Sample letter on CCSA’s website
• Capitol Updates Thursdays
29
March 2016 Deadlines 15 New charter petitions must be approved before this date to
remain eligible for Proposition 39 facilities in the following
year. www.calcharters.org/2010/05/proposition-39.html
15 Second interim financial report due to chartering agency and
County Office of Education. Education Code 47604.33(a)(3)]
25 School Breakfast Program and Summer Food Service
Program Start-up or Expansion applications due to the CDE.
www.cde.ca.gov/fg/fo/profile.asp?id=3860
Late month Second 2015-2016 quarterly lottery apportionment
expected from the state. www.cde.ca.gov/fg/aa/lo/
April 2016 Deadlines 1 E-rate Form 470 due. www.usac.org/sl/tools/forms/
1 Deadline for districts to submit final Proposition 39 facilities
offer. www.calcharters.org/2010/05/proposition-39.html
15 P-2 Tax and Revenue Limit data files due to the CDE.
www.cde.ca.gov/fg/aa/pa/aavataglance1516.asp
15 Deadline for charter schools to submit an appeal to the SBE
to be reviewed at the July SBE meeting.
www.cde.ca.gov/sp/cs/re/sbeappeals.asp
29 E-rate Form 471 due. www.usac.org/sl/tools/forms/
29 Deadline for charter schools whose petitions will be reviewed
at the July SBE meeting to submit their Charter Submission
Packages to the CDE. www.cde.ca.gov/sp/cs/re/chrterpkg.asp
May 2016 Deadlines
1 Deadline to respond to the district’s final Proposition 39
facilities offer.
www.calcharters.org/2010/05/proposition-39.html
2 2015-16 P-2 Attendance Data due to the CDE by this date.
www.cde.ca.gov/fg/aa/pa/aavataglance1516.asp
31 Physical Fitness Test testing window closes.
www.cde.ca.gov/ta/tg/pf/pfttestschedule.asp
Questions?Alice Miller
Carlyn Obringer
Nikole Wilson (workshop support, presentation copies)
http://www.calcharters.org/2010/06/planning-calendar.html
