Budget advisory:

1

• Budget advisory
• 2006-07 program implementation

Brett McFadden ACSA Legislative Advocate Sept.
29, 2006
2
Background

• The 2006-07 budget included a significant amount
  of new K-12 funding and programs
• Much of this new funding is encompassed within
  new categorical programs
• These categorical programs have their own funding
  criteria and requirements
• In order to speed up funding rollouts, many
  programs based on CBEDS enrollment data for per
  student funding as opposed to ADA

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Intent of this advisory

• Provide K-12 leaders with up-to-date info
  regarding program funding rollout when to
  expect program funding
• This advisory will cover rollout only
• Info re program requirements provided in past
  and future ACSA budget advisories
• Info based on briefings from CDE fiscal services
  staff

4
Part one

• The big picture

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Prop. 98 settlement

• Settlement of CTA, OConnell, ACSA, CSBA vs.
  Schwarzenegger et al. lawsuit
• 5 billion owed to Prop. 98
• 2 billion down-payment in 06-07
• 300 million in 07-08
• 450 million annually until 2012-13
• 2.1 billion goes to Prop. 98 base as ongoing
• Remainder allocated as one time over 7yrs

6
2006-07 K-12 spending7 billion in new K-12
revenue

• One-time 2.52 Billion (408 per student)
• Prior-year mandates - 927m (150 per student)
• One-time block grants - 1.03B (167 per student)
• Categorical increases - 377m (61 per student)
• Ongoing 4.476 Billion (720 per student)
• Unrestricted base increase - 3B (490 per
  student)
• Categorical expansion - 943m (152 per student)
• New categoricals - 305m (49 per student)
• NOTE Per student amounts will vary between LEAs

7
2006-07 (cont.)2.9 billion in future one-time
payments

• Part of Prop. 98 settlement agreement
• Funding committed entirely to low performing
  schools in deciles 1 and 2.
• Program details based on SB 1133 Quality
  Education Investment Act of 2006
• Payment schedule
• - 300m in 07-08
• - 400m per year thereafter for six years
• Note Analysis of SB 1133 available at
  www.acsa.org

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Spending the new money2006-07 ongoing
unrestricted

• LEAs are getting a lot of unrestricted money!
• Category Amount()
• K-12 COLA 5.92
• Deficit factor reduction 0.92
• Equalization and/or EIA 0.5 1.5
• Total 7 8.5
• Equalization and EIA amounts vary per district

9
2006-07Program implementation

• New program and funding rollout in the hands of
  CDE
• Programs funded per enrollment should see initial
  allocations (75) in Oct./Nov.
• Remaining amounts allocated in Spring 07
• In many cases, per student funding based on last
  years CBEDs enrollment data as opposed to ADA
• Keep your eyes and ears open watch for CDE and
  other advisories

10
06-07 implementationProp. 49 before/after school

• 426m for after school programs per Prop. 49
  (approved 2002)
• Significant program changes per SB 638
  (Torlakson)
• Application deadlines existing 21st CCLC
  programs must apply by Nov 3, new ASES grants due
  Nov 6
• Priority for funding based on of students
  eligible for free/reduced lunch and then program
  need.
• Note See Part two for additional info

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Summary chartOngoing new revenues/programs

• Ongoing K-12 Proposition 98 Changes(in millions)
  
• Program or Activity Amount
• COLA, growth, and misc adjustments 2,383
• Proposition 49 after school programs 426
• Revenue limit equalization 350
• Economic Impact Aid 350
• Deficit-factor reduction 309
• Counselors (grades 7 through 12) 200
• Arts and music block grant 105
• Child care eligibility limits 67
• Preschool expansion 50
• Increased support for high school exit
  examination 50
• Physical education teacher incentive grants 40
• Professional development for teachers of English
  learners 25
• Certificated staff mentoring 11
• Other miscellaneous 110   
• Total changes 4,47
• Source CDE 2006 budget letter

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Summary chartOne-time new revenues/programs

• One-time K12 Proposition 98 Changes(in
  millions)
• Program or Activity Amount
• Payment of K12 Mandate Claims from prior years
  927
• Discretionary Block Grant 534
• Arts, Music, and Physical Education Equipment
  Grant 500
• School Facilities Emergency Repairs (Williams)
  137
• Instructional Materials 100
• Preschool Facilities 50
• Teacher Recruitment 50
• Career Technical Education Equipment 40
• Mandate Claimscurrent year 30
• English Learners Supplemental Instructional
  Materials 30
• English Learner Best Practices 20
• Parent Involvement Grants 15
• School Gardens 15
• California School Information Services 11
• Other miscellaneous 74 
• Total changes 2,533

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Part two

• Program funding rollout
• Expected timelines

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Ongoing fundsRevenue limit funding

• Revenue limit, COLA and Growth
• Funding increases worked into current
  apportionment system
• Includes def. factor and equalization
• Per district equalization funding amounts
  available on School Services Inc. website
• CDE post budget letter available at
  www.cde.ca.gov (see fiscal)

15
Ongoing fundsEconomic Impact Aid

• 350m increase for 06-07
• Almost 1 billion total appropriation
• All districts that receive funding will see
  sizeable increases
• New criteria included in budget trailer bill
• Target funding level at 600 per eligible pupil
• EIA no longer eligible for Mega-item transfer out
  flexibility can transfer in however
• Allocation to LEAs per current process

16
Ongoing fundsInstructional materials

• Provided 5.92 COLA
• Instructional Materials Realignment Funding is
  55.92 per prior-year CBEDS
• Prop. 20 lottery is 27.90 per ADA
• Allocated to LEAs per current process

17
Ongoing fundsInstructional materials ELL
supplemental

• ELL supplemental materials 30m statewide - 19
  per EL student per language census
• ELL supp funding per similar structure in
  2004-05
• CDE estimates it will take longer to roll out
• No firm estimate at this point

18
Ongoing fundsArts and music block grant

• 105m appropriation for 06-07
• 75 of out in Oct/Nov 06
• Per 05 CBEDs enrollment
• 25 out in the spring via current year enrollment
• Approx. 15 student
• Min. grants of 2,500 per site with 10 or fewer
  students, 4,000 for sites with 20 or more

19
Ongoing funds7-12 supplemental counseling

• 200m appropriation for 06-07
• Will take until end of year for first portion of
  
• Must be used to hire credentialed PPS counselors
• Can supplement not supplant existing counseling
  resources
• Approx. 80 per student with min. amounts of
  5,000 to 30,000
• LEAs can pool the money district-wide

20
Ongoing fundsCAHSEE intervention

• 70m appropriated in 06-07
• CDE to post per LEA amount in Oct. 06
• CDE program division has sent out RFAs
• For intervention support to HS seniors who have
  not passed the exam (includes students with
  disabilities)
• 500 per student with priority for seniors
  excess fund prorated for 11th graders

21
Ongoing fundsProf. dev. for ELL teachers

• 25m appropriated
• Allocated per SB 472 (Alquist)
• Look for advisory from CDE later this fall

22
Ongoing fundsSchool meal reimbursement

• Governor recently vetoed enabling legislation
  SB 1674 (Murray).
• Allocation of funding increase now in question
• School meals will likely still get 2 cent COLA
  increase but not the additional 5 cent increase
  per SB 1674.
• Funding for the program increase will likely be
  set aside for new round of legislative
  discussions in 2007 and then reallocated.
• More to follow on this matter

23
Ongoing fundsPE teacher recruit and preschool

• PE teacher recruitment grant (40m)
• CDE still working on funding allocation
• Will be an application process with min. criteria
  for applicants
• Eligible LEAs could see some by Nov 06
• Can be used for salaries
• Preschool expansion (50m)
• Per AB 172 (Chan)

24
Ongoing fundsProposition 49 before/after school

• 426m augmentation to Prop. 98
• CDE informing field of quick implementation
• CDE will release an RFA with projected 6 week
  application deadline early Nov.
• Existing programs could see increased funding
  later this fall
• New programs subject to application process and
  CDE review
• See
• CDE website www.cde.ca.gov
• ACSA advisory available after Oct. 2 06
  (www.acsa.org)

25
One-time fundsMandates

• 927m to fund mandate deferrals from 2002-03
  including interest
• 30m to fund claims submitted in 06-07
• 06-07 not fully funded expect it to be a budget
  issue for 07-08
• No audit language included in trailer bill
• Should eliminate most of LEA mandate debt
• NOTE cost of claim prep not reimbursable after
  06-07
• First payments have already gone out

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One-time fundsDiscretionary block grant

• 533.5m appropriated one-time
• Based on current year (CBEDs) enrollment
• 75 rollout in November, with 25 in March/April
  07 for reconciliation
• Adult Ed/ROCP based on ADA and will get their
  funding in the 25 allocation in Spring 07
• NOTE Sites do not have to spend it all in 06-07,
  just need plan approved by LEA board no later
  than May 1, 2007

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One-time fundsInstructional materials, library,
tech

• Instructional materials, library, tech block
  grant
• Similar allocation methodology and timeline as
  discretionary block grant
• 100m statewide appropriation
• Approximately 15 per student based on prior-year
  CBEDs

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One-time fundsArts, music, PE equipment block
grant

• 500m one-time appropriation in 06-07
• 82 per ADA
• CDE expect roll out in January 07
• Funding based on ADA not enrollment
• CDE figuring if methodology will be prior-yr or
  current-yr ADA
• Use for professional development has been
  clarified and is allowed.