Fiscal Crisis and Management Assistance TeamFiscal Crisis and Management Assistance Team 11

CCSESA CBOCCSESA CBOCONFERENCECONFERENCE

Fiscal Crisis and Management Assistance TeamFiscal Crisis and Management Assistance TeamInformation and Update Information and Update

““If You Are A COE, It’s All About Oversight”If You Are A COE, It’s All About Oversight”

Presented byPresented by

Joel MonteroJoel MonteroChief Executive OfficerChief Executive Officer

FCMATFCMAT

Fiscal Crisis and Management Assistance TeamFiscal Crisis and Management Assistance Team 22

FCMAT ServicesFCMAT Services

The New and Old of Proposition 98—The New and Old of Proposition 98—

A PrimerA Primer

Declining Enrollment ChallengesDeclining Enrollment Challenges

Charter School OversightCharter School Oversight

Data Management – A Going ConcernData Management – A Going Concern

Questions and AnswersQuestions and Answers

Overview

Fiscal Crisis and Management Assistance TeamFiscal Crisis and Management Assistance Team 33

Independent/ExternalIndependent/External FCMAT is a Service Organization!FCMAT is a Service Organization! Field StaffField Staff

Management/Technical AssistanceManagement/Technical Assistance Web Site Web Site www.fcmat.orgwww.fcmat.org Help DeskHelp Desk Ed DataEd Data

Fiscal Crisis InterventionFiscal Crisis Intervention AB 1200AB 1200

FCMAT Services

Fiscal Crisis and Management Assistance TeamFiscal Crisis and Management Assistance Team 44

Fiscal Crisis and Management Assistance TeamFiscal Crisis and Management Assistance Team 55

Professional/Product DevelopmentProfessional/Product Development CBO/Mentor ProgramCBO/Mentor Program SB 352 CBO Training ProgramSB 352 CBO Training Program Budget Explorer v.2Budget Explorer v.2 Partnerships—CCSESA (BASC), ACSA, SSC, CASBO, CSBAPartnerships—CCSESA (BASC), ACSA, SSC, CASBO, CSBA Free or Low Cost w/High QualityFree or Low Cost w/High Quality

Data ManagementData Management California School Information Services (CSIS)California School Information Services (CSIS)

FCMAT Services

Fiscal Crisis and Management Assistance TeamFiscal Crisis and Management Assistance Team 66

The 2006-07 BudgetThe 2006-07 Budget Being Wary of the Rosy Glow Being Wary of the Rosy Glow The State’s Structural DeficitThe State’s Structural Deficit Lessons From 1999Lessons From 1999 Informing the Collective Bargaining ProcessInforming the Collective Bargaining Process But…..the California Economy is Strong?But…..the California Economy is Strong?

The 2007-08 Budget??The 2007-08 Budget??

Budgets Now and Later

Fiscal Crisis and Management Assistance TeamFiscal Crisis and Management Assistance Team 77

Fiscal Crisis and Management Assistance TeamFiscal Crisis and Management Assistance Team 88

A Better Understanding of 98A Better Understanding of 98

Constitutional Amendment ensuring funding stability for K-14Constitutional Amendment ensuring funding stability for K-14

Guarantees the funding from the prior year adjusted for enrollment Guarantees the funding from the prior year adjusted for enrollment growth and inflationgrowth and inflation

Provides Legislature with “Savings” Options—Test 3Provides Legislature with “Savings” Options—Test 3

Proposition 98—A Primer

Fiscal Crisis and Management Assistance TeamFiscal Crisis and Management Assistance Team 99

A Better Understanding of 98A Better Understanding of 98 Understanding the Tests! Understanding the Tests!

Test 1—(Status Quo) Test 1—(Status Quo) Simply the minimum guaranteeSimply the minimum guarantee

Enrollment growth=slow or none GF/Property Tax=strongEnrollment growth=slow or none GF/Property Tax=strong

Test 2—(The Holy Grail) Growth in per capita income +40%Test 2—(The Holy Grail) Growth in per capita income +40%

Enrollment growth=faster than normal GF/Property Tax=slowEnrollment growth=faster than normal GF/Property Tax=slow

Test 3—(Oops) Growth in General Fund + ½ % +40% but likely unfundedTest 3—(Oops) Growth in General Fund + ½ % +40% but likely unfunded

Enrollment growth = flat GF = in the tankEnrollment growth = flat GF = in the tank

Suspension Suspension

Proposition 98—A Primer

Fiscal Crisis and Management Assistance TeamFiscal Crisis and Management Assistance Team 1010

LAO Suggests Movement Toward Test 1LAO Suggests Movement Toward Test 1 Potential Impacts? Potential Impacts?

Collective Bargaining StrategiesCollective Bargaining Strategies Multi-Year Agreements More ChallengingMulti-Year Agreements More Challenging Giving COLAGiving COLA Healthcare CostsHealthcare Costs Post Employment BenefitsPost Employment Benefits

Things to Monitor re: Prop 98Things to Monitor re: Prop 98 Over/Under AppropriationOver/Under Appropriation Excess FundsExcess Funds

Proposition 98—A Primer

Fiscal Crisis and Management Assistance TeamFiscal Crisis and Management Assistance Team 1111

COLACOLA 4.04%4.04%

Deficit Reduction/EqualizationDeficit Reduction/Equalization .00% .00%

Total IncreaseTotal Increase 4.04%4.04%

Step and ColumnStep and Column ( (1.5%1.5%))

Health Benefit CostsHealth Benefit Costs ( (2.0%2.0%))

Declining Enrollment???Declining Enrollment??? ( ( ? ? ) )

Cost Increases/Inflation?Cost Increases/Inflation? ( ( ?? ) )

Total AvailableTotal Available 0.54% 0.54%

Proposition 98—A Primer

Fiscal Crisis and Management Assistance TeamFiscal Crisis and Management Assistance Team 1212

Education Enters a Zero Growth EnvironmentEducation Enters a Zero Growth Environment California’s PopulationCalifornia’s Population Peaking of the Birthrate in 1990Peaking of the Birthrate in 1990 Statewide enrollment growth is essentially flatStatewide enrollment growth is essentially flat

Focus on Enrollment and StaffingFocus on Enrollment and Staffing Staying ahead of the enrollment curveStaying ahead of the enrollment curve FacilitiesFacilities Most LEAs are late to reactMost LEAs are late to react

The Proposition 98 Connection…againThe Proposition 98 Connection…again

Declining Enrollment

Fiscal Crisis and Management Assistance TeamFiscal Crisis and Management Assistance Team 1313

Where Have All The Where Have All The Kindergartners Gone?Kindergartners Gone?

California Birth Rates

0

5

10

15

20

25

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

Bir

th R

ates

Per

1,0

00

California United States

16.7

20.0

1-12

Source: California Department of Health Services, Birth and Death Records

Fiscal Crisis and Management Assistance TeamFiscal Crisis and Management Assistance Team 1414

Charters Charters

FCMAT RoleFCMAT Role

600 Strong and growing600 Strong and growing

De-regulated public schoolsDe-regulated public schools

Not Independent Government EntitiesNot Independent Government Entities

Must adhere to a variety of Laws and CodesMust adhere to a variety of Laws and Codes

Charter School Oversight

Fiscal Crisis and Management Assistance TeamFiscal Crisis and Management Assistance Team 1515

The Charter Authorizer The Charter Authorizer

The role of the authorizing LEA does not end with the approval of the The role of the authorizing LEA does not end with the approval of the charter petition!!!charter petition!!!

What we are seeing in the fieldWhat we are seeing in the field

Authorizer potential liabilityAuthorizer potential liability

Every LEA contemplating a charter approval should consider their ability to Every LEA contemplating a charter approval should consider their ability to provide oversight and respond accordinglyprovide oversight and respond accordingly

COEs should at least ask the right questionsCOEs should at least ask the right questions

Charter School Oversight

Fiscal Crisis and Management Assistance TeamFiscal Crisis and Management Assistance Team 1616

The Authorizer has the responsibility to monitor: The Authorizer has the responsibility to monitor:

All Federal regulations and statutes including NCLB and HQTAll Federal regulations and statutes including NCLB and HQT Credential requirements for “core” teachersCredential requirements for “core” teachers Rehabilitation Act—Section 504 complianceRehabilitation Act—Section 504 compliance Child abuse reporting—Penal CodeChild abuse reporting—Penal Code CA Building Code Title 24—not Field ActCA Building Code Title 24—not Field Act Open meeting and Public Records Act applicable lawsOpen meeting and Public Records Act applicable laws Government Code, IRS Rules, Public Benefit Corporation RulesGovernment Code, IRS Rules, Public Benefit Corporation Rules

Best defense—Transparent Petition and a Solid MOUBest defense—Transparent Petition and a Solid MOU

Charter School Oversight

Fiscal Crisis and Management Assistance TeamFiscal Crisis and Management Assistance Team 1717

Does California Have a Vision for Data Does California Have a Vision for Data Management? Management?

CSIS—What is it?CSIS—What is it? Data Management UtilityData Management Utility

Student Identifiers (SSID) and Annual MaintenanceStudent Identifiers (SSID) and Annual Maintenance

The Official Enrollment Count (not CBEDS)The Official Enrollment Count (not CBEDS)

ChallengesChallenges

Data Management

Fiscal Crisis and Management Assistance TeamFiscal Crisis and Management Assistance Team 1818

Does California Have a Vision for Data Does California Have a Vision for Data Management? Management?

CALPADS—What is it? (California Longitudinal Pupil Assessment Data CALPADS—What is it? (California Longitudinal Pupil Assessment Data System)System) Longitudinal Data Base for Assessment InformationLongitudinal Data Base for Assessment Information

Reporting base for NCLB data—Grad Rates/DropoutsReporting base for NCLB data—Grad Rates/Dropouts

Depends on accuracy of SSIDsDepends on accuracy of SSIDs

Integrates with CSIS for State ReportingIntegrates with CSIS for State Reporting

ChallengesChallenges

Data Management

Fiscal Crisis and Management Assistance TeamFiscal Crisis and Management Assistance Team 1919

Does California Have a Vision for Data Does California Have a Vision for Data Management? Management?

CSIS + CALPADS does not equal a complete, comprehensive, CSIS + CALPADS does not equal a complete, comprehensive, statewide Data Systemstatewide Data System

What’s Missing? What’s Missing? LEA AccessLEA Access

LEA ToolsLEA Tools

Real Records TransferReal Records Transfer

LEA Funding/SupportLEA Funding/Support

Data Management

Fiscal Crisis and Management Assistance TeamFiscal Crisis and Management Assistance Team 2020

Does California Have a Vision for Data Does California Have a Vision for Data Management? Management?

Governor’s Budget Suggests an Accountability Function for ParentsGovernor’s Budget Suggests an Accountability Function for Parents School Accountability Report Cards (SARCs)School Accountability Report Cards (SARCs)

Educational Data Web SiteEducational Data Web Site

County Offices as the Intermediate AgencyCounty Offices as the Intermediate Agency

Data Management

Fiscal Crisis and Management Assistance TeamFiscal Crisis and Management Assistance Team 2121

Fiscal Crisis and Management Assistance TeamFiscal Crisis and Management Assistance Team 2222