GOVERNOR BROWN’S 2015-2016 BUDGET PROPOSAL

January 20, 2015

RAMONA UNIFIED SCHOOL DISTRICT

Acknowledgment

Many of the numbers and slides contained in this presentation are from the Governor’s Budget Workshop, presented by School Services of California, Inc., attended by Board members and staff on January 14, 2015, in Ontario, California.

Themes for the 2015-2016 Governor’s Budget

Positive economic growth continues, fueling public education spending

Proposition 98 continues to receive much of the new money

However, funding is tight on the non-Proposition side of the State Budget (colleges, state parks, prisons)

Governor stays the course on the Local Control Funding Formula (LCFF) and the Local Control and Accountability Plan (LCAP)

Makes a firm commitment to Adult Education and Career Technical Education

Wall of debt continues to come down

The California Economy

Both national and state economics continue to improve Economic activity is up Stronger job growth Lower oil prices provide short-term stimulus Real estate prices continue to climb The stock market hits new highs

Generates high levels of capital gain potential As a result, state revenues are strong

The Education Budget Proposals Governor Brown is making education THE priority

for the State budget State revenues are up in current year and

moderate growth is projected for 2015-2016 This, in turn, makes the state’s obligation to K-14

increase An increase in current year Proposition 98 funding

of $2.3 billion making a total of $63.2 billion from the adopted levels

$65.7 billion in K-14 Prop. 98 funding for 2015-2016 This is a $2.5 billion increase over 2014-2015 levels

The Education Budget Proposals $1 billion to fully eliminate deferrals

This improves cash flow but gives no additional spending authority to school districts

$4 billion in additional funding for schools to continue the implementation of the LCFF

$1.1 billion for mandated costs reimbursements $320 million to continue to fund Prop. 39 energy

efficiency projects $500 million for an Adult Education Block Grant $250 million for one-time CTE incentive grants $100 million for Internet connectivity and

infrastructure

Local Control Funding Formula Budget proposes an increase of $4 billion for continued

implementation of the LCFF This new funding closes the gap between 2014-2015

funding levels and LCFF full implantation targets by 32.19% Combined with the 29.56% in gap funding for the current

year, the new formula would be 60% of the way towards full implementation

2015-2016 LCFF growth provides an average increase in per-pupil funding of 8.7%

Each school district’s funding will vary due to the amount of dollars a LEA is from the target rate and the percentage of students who qualify for the supplemental and concentration grants in that LEA

LCFF Review

At full implementation, the LCFF will fund every student at the same base rate (this is the target rate)

Two add-ons for K-3 CSR and for 9-12 CTE The difference between the target rate and the

LEAs current rate is the gap between the two The LCFF provides two weighting factors

20% for each eligible student (called the supplemental grant, which RUSD’s percentage is approximately 45%)

An additional 50% for eligible students exceeding 55% of total enrollment (called the concentration grant, which RUSD does not receive)

What Does This Mean for RUSD? The Governor’s budget proposal will provide additional

revenues above the figures which were projected in the multi-year report during the December meeting The Gap increase over the First Interim Report projection is

12% or $1 million for 2015-2016 fiscal year The revenues for 2016-2017 increase by $900,000 due to the

2015-2016 Gap increase One-Time Mandated Cost Reimbursement dollars

Governor is proposing $1.1 billion for education RUSD should receive $900,000 to $1,000,000 Governor is encouraging the dollars to be used for Common

Core Implementation However, the dollars are unrestricted so they could be used for

any purpose or could be reserved for other expenses in the future

What Does This Mean for RUSD?

Adult Education block grant will be given to the local consortia, (which Ramona is part of along with Palomar College), allowing programs serving the highest need populations to have priority of funds

Career Technical Education incentive grant will be given to LEAs working in partnership with other LEAs to offer regional programs This is a matching grant program Intended to accelerate the development of new

and expanded high-quality CTE programs

What Does This Mean for RUSD? The two major implications from the

Governor’s proposal Increased dollars for LCFF One-time dollars for Mandated Reimbursement

Will provide the revenues to turn the qualified First Interim Report into a positive certification at the Second Interim Report

This means Ramona Unified will be able to maintain the State mandated 3% reserve for the current and next two fiscal years

The State’s Road to Adoption

This Budget has a long way to go before it becomes law

We must remember these are Governor Brown’s proposals

Different constituents, legislators, and special interests will have their dialog with the Governor

The non-educational side of the budget receives very little new dollars in this proposal

Could Transitional Kindergarten for all four-year olds become a debate again?

There is plenty of room for negotiationsbefore final adoption

Ramona’s Next Steps

Staff does not have any recommendations for the Governing Board tonight

Other information is needed, San Diego County Office of Education will give options and directions for 2nd Interim and budget adoption