LOCAL CONTROL FUNDING FORMULA (LCFF)JANUARY 24, 2014

PRESENTED BY:

RAUL A. PARUNGAO

ASSISTANT SUPERINTENDENT

FREMONT UNIFIED SCHOOL DISTRICT

2The Fremont Unified School District

Serves about 34,000 students

42 Schools 28 Elementary Schools

5 Junior High Schools

5 Comprehensive High Schools and 1 Continuation High School

Adult School

Preschool

Charter School

3,600 employees, largest employer in Fremont

Governed by five-member Board of Education (Elected Officials)

3The Fremont Unified School District

African American; 4.3%

American Indian Or Alaska Native; 0.5%

Asian ; 51.1%

Filipino; 5.9%

Hispanic Or Latino; 14.8%

Other; 3.4%

Pacific Islander; 0.8%

White not Hispanic; 19.2%

Student Population Ethnicity

4Enrollment

07-08 08-09 09-10 10-11 11-12 12-13 13-14 14-15 15-1630,000

30,500

31,000

31,500

32,000

32,500

33,000

33,500

34,000

34,500

31,700 31,890

32,020

32,368 32,585

33,153

33,635 33,872

34,260

5Funding For Education

Proposition 98 is a provision in the State Constitution that establishes the minimum funding level for K-14 education. It is approximately 40% of the State’s General Fund budget. Funds are distributed to school districts in the form of: Unrestricted General Fund

Revenue Limit

Restricted General Fund – Categorical Funds

Economic Impact Aid

Schools & Libraries Improvement Block Grant - SLIBG

Special Education Funding

Instructional Material Fund Realignment Program - IMFRP

6Proposition 98 Revenues

2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18$0.0

$10.0

$20.0

$30.0

$40.0

$50.0

$60.0

$70.0

$80.0

$56.6

$49.2 $51.7

$49.7 $47.2

$58.3 $56.8 $61.6

$64.5 $67.0

$69.6

(in billions)

7Proposition 98 Revenues & Spending

Constitutional Guarantee Statutory Programs

Prop 98 Revenues

Revenue Limit(Unrestricted)

Categorical Funds

Child Nutrition

QEIA/ASES

Deferrals

Special Education

Community Colleges

Proposition 98 sets the minimum funding level for K-14 education, but the legislature and the Governor decide how to spend it

8Other Funding For Education

Federal Revenues Title I, II, III

Medical Administrative Activities (MAA)

Special Education Funding

Local Revenues Parcel Tax

Local Grants and Donations

9Revenue Limit

2007/08 2008/09 2009/10 2010/11 2011/12 2012/13$4,000

$4,500

$5,000

$5,500

$6,000

$6,500

$7,000

$5,786

$6,115

$6,377 $6,352 $6,495

$6,707

$5,635

$4,953

$5,211 $5,157 $5,213

4772

Statutory funding Baseline Funding Actual Funding If Prop 30 Failed

10Local Control Funding Formula (LCFF)

Enacted as part of the Budget Act for 2013-14 under Assembly Bill (AB) 97

Eliminates the Revenue Limit funding and most of the State categorical funds

Establishes new funding formula that provides same base grant for all school districts

Supplemental funding based on fixed percentages of the base grant amounts per pupil

Funding should be no less than 2012-13 level

Full implementation over 8 years, starting in 2013-14

K-3 class size reduction to 24:1 over 8 years

Requires Local Control Accountability Plan (LCAP)

11Proposition 98 Revenues & Spending

Constitutional Guarantee Statutory Programs-Old Statutory Programs-New

Prop 98 Revenues

LCFF(Unrestricted)

Categorical Funds

Child Nutrition

QEIA/ASES

Deferrals

Special Education

Community Colleges

Revenue Limit(Unrestricted)

Categorical Funds

Child Nutrition

QEIA/ASES

Deferrals

Special Education

Community Colleges

Proposition 98 sets the minimum funding level for K-14 education, but the legislature and the Governor decide how to spend it

12Key Precepts of LCFF

Equity, additional resources for students with greater needs Low-income students

English learners

Foster youth

Local decision-making and stakeholder involvement

Accountability

Transparency

Alignment of budgeting with accountability plans

13School Funding Before & Now

Before Now

Revenue LimitsLCFF base funding with grade span difference

State categorical programs with some flexibility Pupil weight based on needs

K-3 class size reduction (CSR) with unlimited class sizes (originally at 20:1)

K-3 CSR target at 24:1

Accountability and performance process unique for each funding source

Local Control Accountability Plans required for the entire fund

How is LCFF Calculated?

Target funding for LCFF is calculated in the following order: Base grant

Plus: Add-ons to formula

Transportation funding

Targeted Instructional Improvement Block Grant (TIIBG)

Plus: Augmentation to the base grant

K-3 Class Size Reduction (CSR) – 10.4% of the base grant

9-12 Career Technical Education (CTE) – 2.6% of the base grant

Plus: Supplemental grant (up to 55% of eligible students)

20% of the base grant for each eligible student

Plus: Concentration grant (applies only if more than 55% of the students are eligible)

50% of the base grant for each eligible student

14

Eligible students – unduplicated count of low-income students, English Language Learners (ELL), or foster children

Factors K-3 4-6 7-8 9-12

Base Grant per ADA $6,952 $7,056

$7,266 $8,419

Augmentation Grant (K-3 CSR) $723

(CTE) $219

Adjusted Base Grant per ADA*

$7,675 $7,056

$7,266

$8,638* Approximately 70% of FUSD students will be funded using the Adjusted Base Grant

Factors K-3 4-6 7-8 9-12

Supplemental Grant $1,535 $1,411 $1,453 $1,728

Total Base and Supplemental Grant** $9,210

$8,467

$8,719 $10,366

** Approximately 30% of FUSD students will be funded using the Base and Supplemental Grant. Supplemental grant applies to students who are low-income, English Language Learners (ELL), or foster children.

CTE-Career Technical Education ADA – Average Daily Attendance

How is LCFF Calculated?

16How LCFF Works?

2012-13 2020-21 (Target)

2012-13 Revenue

Limit

Base Grant

2012-13 In-cluded Categor-

icals

Augmentation Grant

Supplemental Grant

Add-on to the Formula

17How LCFF Works?

2012-13 2020-21 (Target)

2012-13 Revenue

Limit

Base Grant

2012-13 In-cluded Categor-

icals

Augmentation Grant

Supplemental Grant

Add-on to the Formula

8 years

18LCFF Progress

12-13 13-14 14-15 20-21 (Target)

6 More years

2012-13 Revenue

Limit

2012-13 In-cluded Categor-

ical Funds

11.78%

28.0%

K-3 Class Size Reduction Example

GradeClass Size

Number of Teachers Capacity Enrollment

(Available Seats)/ No

Seats

(a) (b) (c=a x b) (d) (e=d-c)

K 28 4 112 104 (8)

1 30 4 120 112 (8)

2 30 4 120 114 (6)

3 30 4 120 110 (10)

Total K-3 16 472 440 (32)

19

Old Method

New Law

Average Class Size 27.50 440 students / 16 teachers

Average Class Size Target

27.59

Met or Not Met? Met

Capacity 441 27.59 x 16 teachers

(Available Seats) / No Seats

(1) Enrollment vs. Capacity

Failure to meet the target will result in a loss of $1 million funding

20Other Budget Information

The economy is improving – falling unemployment rates, improving housing market, Gross Domestic Product trends upward stimulates purchases of durable goods

CA unemployment rate is improving but still 1.5% higher than nation

The Governor’s proposal includes strong investment in education

Proposal for “Rainy Day Fund” for education

Grades K-3 CSR is expected to reduce by the same rate in 2014-15