Ventura Unified School District 45-Day Budget Update Presentation. July 28, 2015 Board of Education Meeting

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1 Ventura Unified School District 45-Day Budget Update Presentation July 28, 2015 Board of Education Meeting

2 The Legislature Weighs In In January and May, we focus on the Governor s State Budget proposals, but the Legislature plays an important role in shaping the state s spending plan and developed its own proposal through the Conference Committee process On June 15th, the Legislature met its constitutional requirement to approve the Budget Bill Assembly Bill (AB) 93 (Chapter 10/2015) which had some significant differences compared to Governor Jerry Brown s proposals: Increased: Proposition 98 Level Local Control Funding Formula (LCFF) Gap Closure Transportation and After School Education and Safety (ASES) Programs Preschool/Child Care Decreased: Discretionary Dollars Charter Facility Grant Program Internet Infrastructure Grants

3 General Fund Revenues Despite the Legislature s attempt to build the state spending plan based on the higher revenue forecast of the Legislative Analyst s Office (LAO), the Governor s Department of Finance (DOF) forecast prevailed : $111.3 billion, up 8.9% from : $115.0 billion, up 3.3% from The LAO had forecast $3.1 billion more than the DOF for The biggest difference was in the outlook for the personal income tax DOF forecasts a 3.1% or $2.3 billion increase LAO forecasts a 7.9% or $6 billion increase Which forecast will ultimately be more accurate?

4 Unchanged from May Revision Item May Revision State Budget Proposition 98: Proposition 98: Cost-of-Living Adjustment (COLA) $66.3 billion $68.4 billion $66.3 billion $68.4 billion 1.02% 1.02% Deferrals Paid Back $897 million $897 million

5 Changes from May Revision Item May Revision State Budget LCFF Gap Funding One-time Discretionary Funds for Educator Support Career Technical Education Preschool 53.08% or $6.176 billion $3.645 billion or $601 per average daily attendance (ADA) No specific proposal $400 million competitive grant 2,500 part-day slots 51.52% or $5.994 billion $3.205 billion or $530 per ADA $490 million or $1,450 (est.) per certificated staff Unchanged, but allocated in three ADA categories 7,030 full-day slots, $145 million Proposition 98

6 Items not Included in the State Budget The Legislature built its State Budget AB 93 on the LAO s higher revenue forecast, appropriating more than the agreement ultimately reached by the legislative leadership and Governor Brown In order to bring the spending levels down to match the administration s revenue forecast, the Home- to- School Transportation funding increase was eliminated from AB 93 $25 million increase towards a Home-to-School (HTS) Transportation COLA and equalization Result: HTS Transportation add-on to the LCFF is unchanged

7 Proposition 98 and Legislative Priorities While the Legislature had sought to use a higher Proposition 98 level based on the LAO s higher revenue forecast, ultimately the Governor s May Revision estimates were adopted for both the current year and for The Legislature, however, did prevail with regard to funding for full-day State Preschool Shifted $145 million in General Child Care funding from outside of Proposition 98 to State Preschool funding within the guarantee so that local educational agencies (LEAs) can access a single funding stream (Proposition 98) in their full-day State Preschool contracts The Legislature, however, did not re-bench the Proposition 98 guarantee for these former non-proposition 98 costs In order to pay for this, the Legislature lowered the amount provided for LCFF gap closure in by $182 million, or about $30 per ADA

8 Programs Funded Within Proposition 98 $68.4 Billion $68.4 Billion California Community Colleges Special Education Child Nutrition Other Programs California Community Colleges Special Education Child Nutrition Other Programs Full-Day Preschool $145 million LCFF LCFF May Revision Final State Budget

9 Discretionary Funds The enacted State Budget provides an increase of $3.2 billion in discretionary one-time Proposition 98 funding Equal to about $530 per ADA Of these funds, $40 million is for county offices of education to assist in meeting new responsibilities associated with the Local Control and Accountability Plan Legislative intent suggests that LEAs prioritize these funds for professional development, teacher induction, instructional materials and technology, and investments to support state standards This is not a mandate and the funds can be used for any one-time purpose, as determined by the governing board However, any funds received will offset state obligations for any LEA with outstanding mandate reimbursements, consistent with the approach used in the 2014 Budget Act

10 Educator Effectiveness The State Budget provides $500 million for Educator Effectiveness, most of which will be allocated in an equal amount per certificated staff as of the fiscal year $490 million Professional Development Beginning support Professional improvement Development aligned to content standards $10 million K-12 HSN Development and technical assistance for network management Best practices and guidance

11 Are There Restrictions on the Use of These Funds? Support and mentoring, including, but not limited to, programs to meet teacher induction requirements Professional development, coaching, and support for teachers identified as needing improvement Professional development for teachers and administrators aligned to stateadopted content standards Beginning Teacher Support Professional Improvement Content Standards Educator Effectiveness

12 Educator Effectiveness What are the Conditions for Receiving These Funds? Adopt a Plan Explain how funds will be used at a public meeting before adoption at a subsequent meeting 1 Report Expenditures On or before July 1, 2018, report expenditures to the CDE: Purchases Number of educators receiving professional development 2

13 Educator Effectiveness Do I Have to Spend the Money by a Certain Time? Based upon certificated staff counts, funding is estimated at $1,450 per staff member LEAs may expend the funds over three fiscal years:

14 Educator Effectiveness Can the Money Be Used for Technology Training? $10 million of the $500 million is set aside for K12 HSN for professional development and technical assistance related to network management: Development and distribution of best practices, guidance, and other supports to implement network infrastructure K-12 HSN can partner with other LEAs to provide statewide access to training and resources

15 Adult Education The State Budget establishes the Adult Education Block Grant Program Provides $525 million ongoing dedicated funding for Adult Education Funding is provided to school district programs based on the MOE certification levels capped at $375 million $125 million and any remaining funds not needed to meet the MOE levels is allocated to AB 86 (Chapter 48/2013) consortia or consortia members $25 million is for the development and collection of outcome data

16 Adult Education The Chancellor and SSPI are required to approve one adult education consortium in each region of the state Members of a consortium are required to have an adult education program and evaluation plan No later than July 31, 2015, the Chancellor and SSPI will certify for each school district and COE the amount of state funds that were required to be expended from the and under the adult education MOE Funds will be apportioned no later than August 30, 2015, in an amount equal to the amount certified or prorated if the total certified exceeds the allocated $375 million Of the funds remaining (at least $125 million), the Chancellor and the SSPI, with the concurrence of the SBE, will approve a schedule of allocations to each consortium no later than October 30, 2015, based on the share of need for adult education in each region

17 How Do We Plan Future Years? For and Beyond... The amounts allocated to each consortium will be based on: Adult Education The amount apportioned to members in the preceding year The region s share of the statewide need for adult education The consortium s effectiveness in meeting the needs of adults

18 Adult Education What Does the State Report to the Legislature?

19 What Constitutes the Effectiveness of a Consortium? By January 1, 2016, the Chancellor and SSPI will identify the measures for assessing effectiveness of consortium to be included in the report due September 30, 2016 The measures shall include, but not be limited to: How many adults are served by members of the consortium How many of the above have demonstrated: Improve literacy Completion of high school diploma or equivalent Completion of postsecondary certificates, degrees, or training programs Placement into jobs Improved wages Adult Education

20 Career Technical Education The State Budget establishes the California Career Technical Education Incentive Grant Provides three years of bridge funding to establish or maintain existing Career Technical Education (CTE) programs until LCFF and the 9-12 grade span adjustment (GSA) is fully funded Year Total Funding Local:State Match Requirement $400 million 1: $300 million 1.5: $200 million 2:1 The California Department of Education (CDE) will administer the California Career Technical Education Incentive Grant Program as a competitive grant program

21 Career Technical Education The CDE shall also consider programs that: Successfully leverage existing state and federal CTE funding and contributions from industry, labor, and philanthropic sources Engage in regional collaboration with postsecondary education or other LEAs Make significant investment in CTE infrastructure and equipment Operate within rural school districts

22 How Do We Apply for the Funds? Timing The Grant application process has not been finalized Who s Involved CDE will consult with other organizations in the development and review of grant applications Renewals Successful firstand second-year applicants may be eligible for a renewal grant CTE

23 CTE What are the Compliance Issues?

24 Impact of the Adopted State Budget to the VUSD Budget Ventura Unified School District Budget Changes Based on State Adopted Budget VUSD Budget Adoption State Budget Adoption Difference 1. Local Control Funding Formula (LCFF) Gap Funding % Gap Funding % Estimated Impact of Funding Change $ 136,577,000 $ 136,254,000 $ (323,000) 2. One Time Discretionary Funds $601 per ADA $530 per ADA Estimated Impact of Funding Change $ 10,103,000 $ 8,912,000 $ (1,191,000) 3. Educator Effectiveness Funds Not Budgeted $1,450/Cert Staff Estimated Impact of Funding Change $ - $ 1,431,000 $ 1,431, Lottery $128/ADA W/Adult Ed $140 /ADA W/O Adult Ed Unresrtricted $ 2,229,000 $ 2,437,000 $ 208,000 $34/ADA W/Adult Ed $40 /ADA W/O Adult Ed Restricted $ 498,000 $ 619,000 $ 121,000 Total General Fund Change $ 246,000 Adult Ed Adult Education Block Grant $ - $ 3,362,000 $ 3,362,000

25 Next Steps The Budget Adjustments will be made with the 1 st Interim Report Close the books Complete the Unaudited Actuals Financial Report