Budget Forum

Transcription

1 FREMONT UNIFIED SCHOOL DISTRICT Educate Challenge Inspire Budget Forum Presented to: Irvington High School PTSA Division of Business Services April 11, 2013

2 Outline About FUSD Funding for Education Funding From the State Budget Cuts Other Funding Sources FUSD Budget Governor s Budget Proposal Areas of Concern Questions, Comments, Input 2

3 About FUSD Serves about 33,000 students 42 Schools 28 Elementary Schools 5 Junior High Schools 5 Comprehensive High Schools and 1 Continuation High School Adult School Preschool Charter School 3,500 employees Governed by five member Board of Education (Elected Officials) 3

4 Demographics 17% English Language Learners 18% Eligible for Free and Reduced Price Meals 4

5 Enrollment 5

6 Academic Performance Index 6

7 Funding for Education Funding for schools in California is a complex subject. Funding comes from many sources primarily from the State, but with significant components from the Federal Government, local sources, and donations. Understanding the revenue sources and the restrictions on each source is the starting point for understanding the District s financing. Most funds may be used for any educational purposes, while others come with restrictions. 7

8 Funding from the State Proposition 98 is a provision in the State Constitution that establishes the minimum funding level for K 12 education and community colleges. It is approximately 40% of the State s General Fund budget. Funds are distributed to school districts in the form of: Unrestricted General Fund primarily Revenue Limit Restricted General Fund Categorical Funds Other State funding includes: Lottery Funds Proposition 49 After School Education and Safety (ASES) Competitive Grants Funding for Facilities 8

9 Funding from the State Revenue Limit Revenue Limit is the main source of the District s unrestricted general fund. Revenue Limit is calculated based on: Average Daily Attendance (ADA) Base Revenue Limit (BRL) per ADA Revenue Limit = ADA x BRL per ADA The calculated Revenue Limit is funded: First, from Local Property Taxes, then The rest are filled with State Aid The combination of Property Taxes and State Aid makes the District s Revenue Limit Funding 9

10 Funding from the State Average Daily Attendance (ADA) Average Daily Attendance (ADA) has been sustained at 97% of enrollment Year Enrollment ADA ,700 30, ,890 30, ,050 31, ,368 31, ,585 31, ,192 32,242* * 33,442 32, * 33,740 32, * 34,120 33,143 *Projected 10

11 Funding from the State Base Revenue Limit (BRL) per ADA What has happened to the Base Revenue Limit per ADA since ? The gap between the statutory funding and actual funding is commonly known as Deficit Factor Deficit Factor Deficit factor is imposed when the State has insufficient funds to pay all claims for State Aid, resulting in a reduced funding for schools Did you know that the State imposed a Deficit Factor for 15 years of the last 20 years? Deficit Factor ranges from 7.8% to 22.3% 11

12 Funding from the State Loss of Revenue Limit Fund Description Statutory BRL per ADA $6,115 $6,377 $6,352 $6,495 $6,707 Funded BRL per ADA $5,635 $4,953 $5,211 $5,157 $5,213 Loss of Funding per ADA ($480) ($1,424) ($1,141) ($1,338) ($1,494) ADA 30,964 31,087 31,396 31,621 32,242 Total Loss of Funding ($14.9 M) ($44.3 M) ($35.8 M) ($42.3 M) ($48.2 M) The total loss of Revenue Limit funding over 5 years is $185.5 million This is a permanent loss of funding the District will never receive this money back The Governor announced that it will take about 7 years before school districts receive full funding 12

13 Funding from the State Categorical Funds Categorical Funds are generally restricted funds and must be used for specific purposes Examples of Categorical Funds are: Textbook Fund Economic Impact Aid (EIA) Targeted Instructional Improvement Block Grant (TIIBG) School and Library Improvement Block Grant (SLIBG) Professional Development Block Grant Teacher Credentialing Block Grant Class Size Reduction (CSR) for K 3 and 9 th Grade Special Education 13

14 Funding from the State Categorical Funds In , the State allowed flexibility to numerous Categorical Funds commonly known as Tier III Categorical Funds, but permanently reduced the funding by 20% Examples of Tier III Categorical Funds are TIIBG, SLIBG, and K 3 CSR The flexibility allows the District to use Categorical Funds as unrestricted funds, with minor compliance requirements The flexibility is temporary and set to expire on June 30, 2015; K 3 CSR flexibility will expire on June 30, 2014 The District lost approximately $29 million over the last 5 years 14

15 Budget Cuts Due to massive reductions in funding, the District was forced to implement very difficult cuts to balance its budget Increased student to teacher ratio at grades K 3 from 20:1 to 30:1 Increased student to teacher ratio at all the other grade levels Reduction and/or elimination of instructional programs Elimination of some resources to school sites Reduction in facility maintenance resources Furlough days for all employees and corresponding reduction in pay Reduction of support staff provided to schools Reduction in various support and administrative staffing at the District Office Reduction in Home to School Transportation 15

16 Funding from Other Sources Federal Government Title I, II, and III Medical Administrative Activities (MAA) Special Education Local Sources Parcel Tax Education Foundation Gifts and Donations Grants and Entitlements Rental of Facilities 16

17 FUSD General Fund Revenue Revenue Category Amount (in millions) Property Taxes $ % State Aid % Federal Revenues % State Revenues % Local Revenues % Lottery % Total Revenue $ % % If fully funded, the total revenue should be $54 million more. 17

18 FUSD General Fund Expenditures Expenditure Category Amount (in millions) Certificated Salaries $ % Classified Salaries % Employee Benefits % Books & Supplies % Services & Capital % Outlay Other % Total Expenditures $ % % About 82% of the District s budget are used for Salaries and Benefits 18

19 Revenues, Expenditures, and Fund Balance (in millions) Description Actual Budget Projected Budget Projected Budget Revenues $251.4 $249.0 $250.5 $261.1 Less: Expenditures = Surplus/(Deficit) ($3.3) ($12.3) ($6.1) ($12.3) + Beginning Fund Balance = Ending Fund Balance $36.1 $23.7 $17.7 $5.4 Less: Designations = Reserve ($) $25.8 $22.2 $16.7 $5.0 Reserve (%) 10.14% 8.52% 6.52% 1.82% It is the State requirement to maintain at least 2% reserve. The Board designated an additional 2% reserve for any unplanned emergency expenditures for a total of 4%. 19

20 Governor s Budget Proposal The Governor released the State budget proposal for on January 10, 2013 This budget proposal reflects improvement due to: Economic recovery (positive changes, but at a slower pace) Prior budgetary restraints/cuts Voters approval of temporary tax increases (Propositions 30 & 39) Proposals to eliminate most of the so called wall of debt over time, totaling approximately $30 billion Contains major proposals to education budget Increase per student funding for the first time in 5 years New formula for distributing funds to schools (K 12) 20

21 Governor s Budget Proposal Local Control Funding Formula The budget proposals for includes the new version of the Weighted Student Formula, which is now called Local Control Funding Formula (LCFF) LCFF is calculated in the following order: Base grant + Supplemental grant + Concentration grant + Augmentation to the base grant + Add ons to formula 21

22 Governor s Budget Proposal Local Control Funding Formula If adopted, LCFF would replace existing Revenue Limit funding and more than 40 categorical programs by consolidating them into one revenue stream LCFF is unrestricted fund and would eliminate most programmatic and compliance requirements The full implementation of LCFF is estimated to take about 7 years The Governor proposed to allocate $1.6 billion to partially implement LCFF in

23 Governor s Budget Proposal LCFF Calculation Base grant per ADA by grade span (no more BRL per ADA) Factors K Base Grant per ADA $6,342 $6,437 $6,628 $7,680 Supplemental grant Equal to 35% of the base grant for each English Language Learner (ELL), student eligible for free or reduced price meal, and/or foster student unduplicated count Concentration grant Equal to 35% of the base grant for each ELL, student eligible for free or reduced price meal, and/or foster child above 50% of the total enrollment 23

24 Governor s Budget Proposal LCFF Calculation Augmentation to the base grant K 3 Class Size Reduction funding augments the K 3 grade span base grant 11.23% or about $712 Career Technology Education (CTE) funding augments the 9 12 grade span base grant 2.8% or about $218 Add ons to formula Transportation Targeted Instructional Improvement Block Grant (TIIBG) Funding will be permanently added to the formula at the same level as There would be no COLA provided for the future Districts will receive these funds in unrestricted form 24

25 Governor s Budget Proposal LCFF Calculation TIIBG & Transportation $3.1 million CSR & CTE Augmentation $9.8 million Supplemental Grant $19.9 million TIIBG & Transportation $3.1 million Included Categoricals $28.9 million Base Grant $220.4 million Revenue Limit $170.8 million

26 Governor s Budget Proposal LCFF Calculation $203 million 26

27 Governor s Budget Proposal Funding Level in under the Current Law versus LCFF Based on what we know today, FUSD will receive about $5 million towards LCFF implementation. However, the interpretation of LCFF calculation continues to change If LCFF is not adopted, FUSD will still receive COLA and funding for growth of about $5 million Therefore, in either case, FUSD will receive the same amount 27

28 Governor s Budget Proposal Energy Efficient Project Proposition 39 is a ballot initiative that was passed by the voters on November 2012 Adult Education The Governor proposed to fund adult education programs through community colleges and eliminate the program in K 12 Mandate Block Grant The Governor proposed to fund an additional $100 million for the mandate block grant. This will bring additional $19 per student 28

29 Areas of Concerns It s a proposed budget not final Budget proposal is highly dependent on the overall economic situation, particularly the projected growth in housing and jobs Dramatic changes to education funding, but there are still many unknowns Federal Fiscal Cliff Sequestration Impact of Affordable Health Care Act Increased cost of Health and Welfare premium Unfunded Mandate for Special Education Program Structural Budget Deficit Aging Facilities and overcrowding Other Post Employment Benefits (OPEB) 29

30 Budget Development Enrollment Projection done Staffing Projection K 3 Class Size K Secondary Staffing Ratio 27.5:1 Student and Employee Safety 10.0 FTE Counselors 3.0 FTE Assistant Principals (Elementary) 30

31 Questions, Comments, Input 31

32 Significant Dates March 2013 Second Interim Report Series of Budget Forums May 2013 Governor s revision to the proposed budget (May Revise) June 2013 Adoption of budget for 2013/14 32