Post on 15-Nov-2014
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Copyright © 2013 Charter School Capital, Inc.
Budget Impacts on CA Charter Schools
September 24, 2013
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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 and legislative update• Budget process and impacts - new and important!
– Funding - Local Control Federal Funding (LCFF)– Cash flow– Accountability
• An updated look ahead
Agenda
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Overview and Legislative Update
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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• New Bills AB913 and AB484 will alter
– Charter school conversions– Standardized testing in the state
• Additional updates
Overview and legislative update
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Funding
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FUNDING
• Phases of the plan– Legislative– Regulatory– Build-up– Full implementation
• Political Landscape– How we got here
oAdditional education fundsoWhat did people get?
– Collective: Accountability– Cap charter school funding
– Why the Governor believes so strongly?
A Brief 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
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: BASE GRANT
What You Received Last Year = LCFF Base Grant
K-3
General Purpose Base Grant $4,500
In Lieu $609
Categorical Block Grant $412
Economic Impact Aid $310
FY ‘14 LCFF Base Grant $5,831
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FUNDING
Base Grant Progression
K-3
Base Grant Fiscal ‘13 – ‘14 $5,831
Fiscal ‘14 – ’15 $5,953
Fiscal ’15 – ‘16 $6,074
Fiscal ‘16 – ‘17 $6,196
Fiscal ‘17 – ’18 $6,318
Fiscal ‘18 – ‘19 $6,439
Fiscal ‘19 – ‘20 $6,561
Fiscal ‘20 – ’21 $6,683
Target Base Grant $6,845
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FUNDING - LCFF
FY ‘13 FY ‘14
ADA 100 100
K-3 100 100
School Q# 60 60
District % 60% 60%
CG Qual: 5 5
K-3 “Base” $5,109 $5,831
Revenue $510,900 $583,100
Supplemental Grant / CG FY ‘13 FY ‘14
Q Pupils 80 60
20% of Rate $816 $1,166
Revenue $65,280 $69,960
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FUNDING - LCFF
Concentration Grant FY ‘13 FY ‘14
Q Pupils - 5
50% of Rate $- $1,458
Revenue $- $7,290
K-3 Augmentation FY ‘13 FY ‘14
K-3 ADA 100 100
Rate $1071 $606
Revenue $107,100 $60,600
Total Revenue FY ‘13 FY ‘14
LCFF $- $137,850
Q: EL/F&RL/FY $683,280 $720,950
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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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FUNDINGP
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Fiscal Year 2013 - 2014
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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• Additional education funding
What are additional impacts?
BUDGET IMPACTS
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Accountability
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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?
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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 • Be careful - actual and projected rates are different• If you have questions…ask us – we’re here to help!
Plan
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Questions?
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Thank You.
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877-272-1001
John Helgeson
jhelgeson@charterschoolcapital.org