Local Control Funding Formula (LCFF)

& Career Technical Education (CTE)

Funding Transition

Sonoma Valley Unified School District January 14, 2014

LCFF Changes

Ü  Community Funded “Basic aid” school districts do not receive additional funding with LCFF because the basic aid funding rate is higher than what the state would provide.

Ü  Basic aid school districts are impacted by LCFF.

Ü  The LCFF shifts funding, flexibility and accountability for fund allocations to school districts.

LCFF Impacts

Ü  Sonoma County Office of Education (SCOE) has been funded to provide CTE/ROP sections to Districts. The state is essentially reducing this funding to zero over the next eight years (or less).

Ü  Non-basic aid school districts will receive funding that is intended to be equivalent to annual reductions.

Ü  As a basic aid District we have a reduction in what SCOE provides for us without additional funding.

What does this mean?

Ü  For 2014/15, the District will have approximately a 25% reduction in the funding for existing CTE/ROP sections and program costs.

Ü  Our plan is to cover the 25% reduction.

What is funded now? What would the District need to

fund? Ü  SVUSD has 17 sections funded by SCOE

Ü  SCOE is providing these sections at a cost of $313,292

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Ü  To maintain the current program, the district would need to fund $78,323 in 2014/15 and more in future years.

Old Funding Model

CDE

SCOE

Districts for staff, equipment & supplies

New Basic Aid LCFF Funding Model

District provides funds for equipment, supplies & staff

SCOE can provide contracted staff as requested by the District

What does this fund transition look like in theory?

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

100%

District

SCOE

What are the unknowns?

Ü  The rate at which the state will transfer funds from SCOE to Districts is unknown.

Ü  SCOE will have less funding for CTE/ROP each year as more funding obligations are added. While SCOE supports a smooth transition, the level of funding that SCOE has available is unknown.

What are the knowns?

Ü  If the District does not allocate funds to cover the cost of the CTE/ROP program now funded by SCOE, the District will need to cut the program/sections by 25% next year and more deeply in future years.

Ü  If the District allocates 25% to fund CTE/ROP next year then SCOE will provide a 75% match. SCOE will have a lower match each year until there is no match.

Ü  SCOE’s budget is being impacted in 2013/14 as funds are shifted to Districts. SCOE is using one-time reserve funds this year to continue the existing program. Districts are already picking up more of the cost this year in some counties.

Ü  SCOE can’t fund the full program next year or in future years.

How is the transition being addressed?

Ü  Superintendents have been meeting with SCOE since October to understand and plan the transition.

Ü  SCOE will continue to employ CTE teachers. Districts may contract for these teacher’s services.

Ü  Agreements will be developed collaboratively.

Ü  As requested by Districts, SCOE will provide base level funding to: Ü  provide leadership and collaboration with the business

community Ü  support program development Ü  provide professional development Ü  seek business partners & collaborative grant opportunities

In Summary … Ü  The state is redirecting the funding for CTE/ROP

sections. SCOE will have increasing less funding to match with districts for CTE/ROP sections and program costs. Within eight years there will be no matching funding from SCOE.

Ü  To continue to provide the existing CTE/ROP program, the district will need to provide 25% of the funding next year and increasingly more each year until the program is fully funded by the District.

Ü  The district is accountable for providing CTE through its Local Control Accountability Plan (LCAP).