Joel Montero, CEOFiscal Crisis and Management Assistance Team

California County Superintendents Educational Services Association

Business and Administration Steering Committee

Fall Conference

San Bernardino and Yolo Counties

AB 1200 Art and Science

• Is AB 1200 still relevant in the LCFF era?

• Is the same application mode for AB 1200 still applicable?

• How shall you assess: (science)

• Budget development• Interim reports• Oversight support

• Think concept and impact! (art)

AB 1200 the COE and Evolution

• How the funding formula impacts the COE reality

• COE positioning and market share in the new reality

• Finding and adding value opportunities

• The challenges of a lack of common ground

• Individualism and Situational Guidance

Putting the LCFF in Context

• It’s a funding model and it’s confusing• COLA and Gap Funding

• We are in transition• There are more issues than there are answers

• Fair Share & Basic Aids• Necessary Small Schools• Provision 2/3 Schools• County office ADA transfer• Transportation• Annual Audit Guide• Revenue Projections

Oversight—So What Really Changes?

• Budget approval

• AB 1200 disclosure and collective bargaining

• Budget/LCAP coordination

• Transition planning

Some Potential Pitfalls for Oversight

• Not recognizing that change has occurred and attempting to put the square peg of LCFF in the round hole of Revenue Limit

• What the hell is a “paradigm shift” anyway?

• Not understanding the new definitions for old terms—it’s a language issue

• Understanding that averages now seldom apply

Some Potential Pitfalls for Oversight

• Getting caught up in the revenue rhetoric and the use of multiple tools

• Multi-year projections

• Not understanding the significance of data management

• SACS and putting too much trust in the software

• TRC disabling• Potential of revenue overstatements, etc.

CASH

• It’s still an issue!

• It’s why districts go insolvent

• Superintendents and boards still don’t get it

• Labor wants to ignore it

What Can Districts Do Now in Anticipation of an Uncertain Cash Environment

• Have a system in place to analyze and monitor cash flow—all funds• Report cash flow status and projection to the board on a regular basis• Conserve cash when possible—all funds• Build Reserves/Fund Balance—all funds• Consider creating spending plans to manage available cash• Consider options for dry period financing (borrowing)• Borrow like a booger!• Don’t run out!

Insolvency

• Regardless districts still fail for the same old reasons

• Most failures occur after a period of perceived fiscal health

• Fiscal emergency workload

• Changes in emergency appropriations

FCMAT/CSIS Puts the “D” in Data

• Data Management

• What’s important here and why

• Data quality is essential

• Understanding CALPADS

• How do you get help if you need it?

• Viewing district reports

LCFF CALCULATOR

• Help is on the way…….

• It’s a budget development tool• It’s an analysis tool• It’s a training tool• It’s an MYP utility

• It’s Cool!