state budget impacts on ca charter schools
DESCRIPTION
Overview Budget process and impacts Charter School Capital hosts a webinar focusing on the State Budget Impacts on CA Charter Schools. Topics discussed include funding - Local Control Federal Funding (LCFF), cash flow, accountability, and taking a look ahead.TRANSCRIPT
2Copyright © 2013 Charter School Capital, Inc.
WELCOME
• Panelists– Chas Cardall, Orrick, Herrington & Sutcliffe– Branche Jones, Legislative Consultant– John Helgeson, Charter School Capital
Who we are
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WELCOME
• Overview• Budget process and impacts
– Funding - Local Control Federal Funding (LCFF)– Cash flow– Accountability
• Looking ahead
Agenda
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STATE OF THE STATE
• FY 2013-2014 Budget uses conservative revenue estimates• Payoff of “hidden debt” is an important goal• Education Protection Account and overall education funding• SB740 and CDE Revolving Loan Program shifting to CSFA
Overview
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FUNDING
• Phases of the plan– Legislative– Regulatory– Build-up– Full implementation
• Political Landscape– How we got here
oRole of Prop 30oWhat did people get?
– Collective: Accountability– Cap charter school funding
– Why the Governor believes so strongly?
Overview – Local Control Funding Formula
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FUNDING
• Base grant funding – Certified rate card per pupil– Everyone gets this– This year
• Supplemental grant– 20% of Base Grant (counts only once)
oEnglish learneroF&RLoFoster care
– Capped at % of your district, not necessarily your authorizer
Overview – Local Control Funding Formula
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FUNDING
• Concentration grant– 50% of Base Grant for each pupil over 55% of the student categories that
qualify for Supplemental Grant– Capped at % of the district your in, and not necessarily your authorizer
• Augmentation– Class size reduction for K-3
oMust be 24:1 or less by full implementationoGradual reduction during phase In (10.4% of Base in K-3/ADA)
– Grades 9-12oMust be spent on 9-12oCollege and career readiness as described in your LC Accountability Plan
What does it mean?
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FUNDING
Rate Card
K-3 4-6 7-8 9-12
Base F’13 $5,109 $5,187 $5,346 $6,188
Base F’14 $5,109 $5,187 $5,346 $6,188
Target Base $6,845 $6,947 $7,154 $8,289
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FUNDING - LCFF
LY TY Future
ADA 100 100 100
K-3 100 100 100
School Q# 60 60 60
District % 60% 60% 60%
CG Qual: 5 5 5
K-3 Base $5,109 $5,109 $6,845
Revenue $510,900 $510,900 $684,500
Supplemental Grant / CG LY TY Future
Q Pupils 80 60 60
20% of Rate $816 $1,022 $1369
Revenue $65,280 $61,308 $82,140
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FUNDING - LCFF
Concentration Grant LY TY Future
Q Pupils - 5 5
50% of Rate $- $2,555 $3,423
Revenue $- $12,773 $17,113
K-3 Augmentation LY TY Future
K-3 ADA 100 100 100
Rate $1071 $531.34 $711.88
Revenue $107,100 $53,134 $71,188
Total Revenue LY TY Future
Q: EL/F&RL/FY $683,280 $638,114 $854,941
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FUNDING
Prop 30 - Effect of the EPA on GPE Calculation
GPBG
In-Lieu
GPBG
In-Lieu
EPA
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FUNDING
July
2013
Augus
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Octob
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Base Line
2012-13
2013-14
Fiscal Year 2013 - 2014
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Rev
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Budget Impacts
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• LCFF implementation $2.1B• Common Core funding and implementation $1.25B
– $250M one time competitive grants (SBE)• Deferral Buy-down $4.25B• Proposition 39 implementation Energy Efficiency $381M
– Details not yet known
What are additional impacts?
BUDGET IMPACTS
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• Collaborative– What is it? How does it work?
• Petition requirements– Due July 1, 2014– Academic achievement goals for all students and each subgroup of
students– Annual update by July 1 beginning in 2015– Includes identification of specific actions to meet these goals using a
SBE template• Consulting requirements
– Consult with teachers, principals, other staff, parents, and students in the annual update
CA Collaborative for Educational Excellence
ACCOUNTABILITY
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ACCOUNTABILITY
• Revocation– SBE may revoke any charter if the school failed to improve pupil
outcomes across state and local priorities• Interventions if a charter fails to improve outcomes
– Chartering authority shall provide technical assistance to the school, using the rubric created by the SBE
– SPI may assign, at the request of the chartering authority and approval of the State Board, the Collaborative to provide technical assistance
CA Collaborative for Educational Excellence
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ACCOUNTABILITY
• Authorizer is required to consider revocation if the Collaborative has provided advice/assistance and has made either of following findings:
– The charter school has failed/is unable to implement recommendations– Performance of the school is persistently or acutely inadequate
• A charter school is not allowed to appeal a revocation under new law
CA Collaborative for Educational Excellence
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WHAT CAN YOU DO?
• We will continue to track the impact of LCFF • Get involved - SBE takes up the regulatory step for the accountability rules
– The Administration wants to run legislation to address it this year• Be careful - actual and projected rates are different• If you have questions…ask us – we’re here to help
Plan
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Thank You.