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Budget PresentationBudget Presentation
PROCESSPROCESS
BOARD ROLE IN THE BUDGET PROCESS:Establish philosophy and set budget development and adoption policyReview , adopt and revised budget
BOARD ROLE IN THE BUDGET PROCESS:Establish philosophy and set budget development and adoption policyReview , adopt and revised budget
Initiate Goal setting ProcessReview Status of Prior Year GoalsDevelop Goals for the Coming YearDevelop Strategies For the GoalsIdentify Funding SourcesSet PrioritiesAllocate FundsDistribute Guidelines/AllocationsReview, Discuss, Build BudgetCollect data detailValidate/Confirm BalanceHearing and Public ReviewRevisionFinal Budget Adoption
Initiate Goal setting ProcessReview Status of Prior Year GoalsDevelop Goals for the Coming YearDevelop Strategies For the GoalsIdentify Funding SourcesSet PrioritiesAllocate FundsDistribute Guidelines/AllocationsReview, Discuss, Build BudgetCollect data detailValidate/Confirm BalanceHearing and Public ReviewRevisionFinal Budget Adoption
Budget MechanicsBudget Mechanics
Proposed budget policyProposed budget policy
The budget shall support the action plans contained in the Strategic Plan
Budget assumption shall be developed, reviewed and updated on a regular basis throughout the planning cycle
Funds shall be made available in the budget prioritization to provide total compensation to employees consistent with collective bargaining commitments
A minimum General Fund Reserve for Economic Uncertainty of 5% shall be maintained in accordance with state guidelines
Categorical and Grant Programs, with exceptions of Special Education shall be self-supporting
Categorical and grant program year-end balances shall be carried forward in accordance with the terms and conditions of the program regulations
The budget shall support the action plans contained in the Strategic Plan
Budget assumption shall be developed, reviewed and updated on a regular basis throughout the planning cycle
Funds shall be made available in the budget prioritization to provide total compensation to employees consistent with collective bargaining commitments
A minimum General Fund Reserve for Economic Uncertainty of 5% shall be maintained in accordance with state guidelines
Categorical and Grant Programs, with exceptions of Special Education shall be self-supporting
Categorical and grant program year-end balances shall be carried forward in accordance with the terms and conditions of the program regulations
KEY BUDGET TERMsKEY BUDGET TERMs
EnrollmentADABeginning BalanceRevenueExpendituresEnding BalanceReserve(s)
EnrollmentADABeginning BalanceRevenueExpendituresEnding BalanceReserve(s)
Enrollment / ADAEnrollment / ADA
Enrollment is based on California Basic Education Data System (CBEDS)reporting – number of student actually enrolled schoolADA ( Average Daily Attendance) is measurement of attendance- seat time. Actual attendance without regard to excused or unexcused absences.ADA is measured at three points: December 30- 1st Period P1 report, March 30- 2nd Period P2 report and annual reportADA projections are based on CBEDS enrollment, P1,P2 and annual ADA based on historical trends.
Enrollment is based on California Basic Education Data System (CBEDS)reporting – number of student actually enrolled schoolADA ( Average Daily Attendance) is measurement of attendance- seat time. Actual attendance without regard to excused or unexcused absences.ADA is measured at three points: December 30- 1st Period P1 report, March 30- 2nd Period P2 report and annual reportADA projections are based on CBEDS enrollment, P1,P2 and annual ADA based on historical trends.
Beginning BalanceBeginning Balance
Beginning Balance for the budget year represents the ending balance for the current year (it is an estimate until the audited actuals are available)
Components of the beginning balance include:
Revolving Cash ( Cash on Bank Accounts – County Treasury Account, General Fund Account and Community Relation Account )
Restricted Balances
Reserves
Beginning Balance for the budget year represents the ending balance for the current year (it is an estimate until the audited actuals are available)
Components of the beginning balance include:
Revolving Cash ( Cash on Bank Accounts – County Treasury Account, General Fund Account and Community Relation Account )
Restricted Balances
Reserves
REVENUEREVENUERevenue limits: Object codes 8000-8099
Base revenue limit – fixed amount per ADA LCFFProperty TAX – fixed amount per ADA reflects school area (ADA * $)- part of LCFFSupplemental and concentration Grant - unduplicated Pupil Population English leaners and Free and reduce lunch eligible, but not lager than district one
FEDERAL REVENUE ( Restricted):Object codes 8100-8299NCLB ( no child behind) Categotical Program s such as Title I, II, IIISpecial Education IDEA (ADA*$)Special Grants
STATE REVENUE : Object codes 8300-8599Special Education AB 602 (ADA *$) Lottery
Revenue limits: Object codes 8000-8099
Base revenue limit – fixed amount per ADA LCFFProperty TAX – fixed amount per ADA reflects school area (ADA * $)- part of LCFFSupplemental and concentration Grant - unduplicated Pupil Population English leaners and Free and reduce lunch eligible, but not lager than district one
FEDERAL REVENUE ( Restricted):Object codes 8100-8299NCLB ( no child behind) Categotical Program s such as Title I, II, IIISpecial Education IDEA (ADA*$)Special Grants
STATE REVENUE : Object codes 8300-8599Special Education AB 602 (ADA *$) Lottery
REVENUE REVENUE All Categorical Funds are restricted. Lottery has restricted and unrestricted component. Class size reduction (CSR), mandated cost reimbursements (class size should be
in ratio 1:24) Special Education apportionment calculated per ADA and should be spend only
for student with special needs.
LOCAL REVENUE
Object codes 8600-8699 Interest Earning Fundraising Local Grants
All Categorical Funds are restricted. Lottery has restricted and unrestricted component. Class size reduction (CSR), mandated cost reimbursements (class size should be
in ratio 1:24) Special Education apportionment calculated per ADA and should be spend only
for student with special needs.
LOCAL REVENUE
Object codes 8600-8699 Interest Earning Fundraising Local Grants
Personnel Cost
Object code 1000,2000 & 3000
Administration salary – object 1000Certificated Employee Salary – object 1000Classified Employee Salary – object 2000Employees benefits (Social Security, Medicare, Unemployment Insurance, Workers’ Compensation, Retirement, Health and Welfare, Creditable compensation-stipend – object 3000
Personnel Expenditures t are roughly 80-85% of the budget
Personnel Cost
Object code 1000,2000 & 3000
Administration salary – object 1000Certificated Employee Salary – object 1000Classified Employee Salary – object 2000Employees benefits (Social Security, Medicare, Unemployment Insurance, Workers’ Compensation, Retirement, Health and Welfare, Creditable compensation-stipend – object 3000
Personnel Expenditures t are roughly 80-85% of the budget
ExpendituresExpenditures
Books and Supplies
Object code 4000Textbooks and WorkbooksInstructional MaterialsNon- Instructional supplies ( classroom supplies, office supplies)Student Activities( Field trips, visual and performing arts activities, etc.)Janitorial and Maintenance SupplyNon Capitalized Equipment ( Computers, furniture, printers, etc.)Food
Books and Supplies
Object code 4000Textbooks and WorkbooksInstructional MaterialsNon- Instructional supplies ( classroom supplies, office supplies)Student Activities( Field trips, visual and performing arts activities, etc.)Janitorial and Maintenance SupplyNon Capitalized Equipment ( Computers, furniture, printers, etc.)Food
ExpendituresExpenditures
Services and Other Operating Expenses
Object code 5000Special Education Personnel ServicesProfessional DevelopmentDues/ Membership Fee- professional organizationLiability InsuranceOperation and Housekeeping ( LAUSD)Rent/Lease (LAUSD, Bungalows-75% cost reimbursed by SB 740 program)Non instructional contracting services ( nurse, E-Rate, Gate testing, etc.)CommunicationsObject code 5000 items discreet estimates based on an activity
Services and Other Operating Expenses
Object code 5000Special Education Personnel ServicesProfessional DevelopmentDues/ Membership Fee- professional organizationLiability InsuranceOperation and Housekeeping ( LAUSD)Rent/Lease (LAUSD, Bungalows-75% cost reimbursed by SB 740 program)Non instructional contracting services ( nurse, E-Rate, Gate testing, etc.)CommunicationsObject code 5000 items discreet estimates based on an activity
ExpendituresExpenditures
Capital Outlay
Object code 6000
Sites and Sites ImprovementCapitalized Equipment ( all equipment cost > $5,000 per unit)Building and Building ImprovementEquipment Replacement
•Object code 6000 items are direct estimates based on activity
Capital Outlay
Object code 6000
Sites and Sites ImprovementCapitalized Equipment ( all equipment cost > $5,000 per unit)Building and Building ImprovementEquipment Replacement
•Object code 6000 items are direct estimates based on activity
ExpendituresExpenditures
Other outgoing
Object code 7000
District oversight feeDebt ServicesInterfund transfers
Other outgoing
Object code 7000
District oversight feeDebt ServicesInterfund transfers
ExpendituresExpenditures
Ending balance basic formula:
Beginning Balance
plus
Revenues
less
Expenditures
equals
Ending Fund Formula
As a prudent practice, current year expenditures should not exceed current year revenue
Components of the ending fund balance include Cash available for operation and Reserves.
Reserves are components of the fund balance. Reserves may be establish as a legally required 5% of total outgo.
Ending balance basic formula:
Beginning Balance
plus
Revenues
less
Expenditures
equals
Ending Fund Formula
As a prudent practice, current year expenditures should not exceed current year revenue
Components of the ending fund balance include Cash available for operation and Reserves.
Reserves are components of the fund balance. Reserves may be establish as a legally required 5% of total outgo.
Ending BalanceEnding Balance
IMPORTANT FACTORSIMPORTANT FACTORS
LOCAL CONTROL FUNDING FORMULA (LCFF) The goal of the LCFF is to significantly simplify how to state funding is provided to local educational agency (LEAs). Under new funding system, revenue limits and most state categorical programs are eliminated. LEAs will receive funding based on the demographic profile of the students they serve and gain greater flexibility to use this funds to improve outcomes of students.Implementation of LCFF begins in 2013-2014 fiscal year. The state Department of Finance estimates that achieving full funding levels under LCFF will take eight years based on its current Prop.98 growth projections.Funding targets under LCFF consist of:Grade span-specific base grants that reflect adjustment for grade K-3 class size reductionsSupplemental grants equal 20%of the adjusted base grant multiplied by LEAs unduplicated percentage of English Leaners, free and reduced-price meal eligible, and foster youth studentsConcentration grants equal 50% of adjusted base grants multiplied by an LEAs percentage of unduplicated pupils above 55%Two add-ons equal to the amount s LEAs received in 2012-2013 for the Targeted instructional Improvement Block Grant
LOCAL CONTROL FUNDING FORMULA (LCFF) The goal of the LCFF is to significantly simplify how to state funding is provided to local educational agency (LEAs). Under new funding system, revenue limits and most state categorical programs are eliminated. LEAs will receive funding based on the demographic profile of the students they serve and gain greater flexibility to use this funds to improve outcomes of students.Implementation of LCFF begins in 2013-2014 fiscal year. The state Department of Finance estimates that achieving full funding levels under LCFF will take eight years based on its current Prop.98 growth projections.Funding targets under LCFF consist of:Grade span-specific base grants that reflect adjustment for grade K-3 class size reductionsSupplemental grants equal 20%of the adjusted base grant multiplied by LEAs unduplicated percentage of English Leaners, free and reduced-price meal eligible, and foster youth studentsConcentration grants equal 50% of adjusted base grants multiplied by an LEAs percentage of unduplicated pupils above 55%Two add-ons equal to the amount s LEAs received in 2012-2013 for the Targeted instructional Improvement Block Grant
LCFF UpdateLCFF Update
LCFF Funding ClassificationsEnglish Learners (EL)Eligible for Free and Reduced-Price Meals ( low income –LI)Foster YouthsStudent eligibility is based on the “unduplicated “ count which means they only count once if the qualify under multiple categories listed above.Accountability & Funding RequirementsThe estimated timeline to fully fund 8 yearsThe cost to fully implement LCFF exceeds the amount available in the current year; therefore, the state is expected to fund 11.78% of the total cost of the “gap” in 2013-2014LCFF HighlightsDistrict and Charters are funded equallyAdditional funding is provided for the EL/LI studentsCharter Schools are capped for the concentration funding based on the local school district’s percentage, the highest percentage not to exceed the charter’s own rate
LCFF Funding ClassificationsEnglish Learners (EL)Eligible for Free and Reduced-Price Meals ( low income –LI)Foster YouthsStudent eligibility is based on the “unduplicated “ count which means they only count once if the qualify under multiple categories listed above.Accountability & Funding RequirementsThe estimated timeline to fully fund 8 yearsThe cost to fully implement LCFF exceeds the amount available in the current year; therefore, the state is expected to fund 11.78% of the total cost of the “gap” in 2013-2014LCFF HighlightsDistrict and Charters are funded equallyAdditional funding is provided for the EL/LI studentsCharter Schools are capped for the concentration funding based on the local school district’s percentage, the highest percentage not to exceed the charter’s own rate
LCAPLCAP
Local Control and Accountability Plan (LCAP)What is the Local Control and Accountability Plan (LCAP)?The LCAP is a critical part of the new Local Control Funding Formula ((LCFF)Each school district must engage parents, educators, employees and the community to establish these plans. The plans will describe the school district’s overall vision for students, annual goals and specific actions the district will take to achieve the vision and goals. The LCAPs must focus on eight areas identified as state priorities. The plans will also demonstrate how the district’s budget will help achieve the goals, and assess each year how well the strategies in the plan were able to improve outcomes.
Local Control and Accountability Plan (LCAP)What is the Local Control and Accountability Plan (LCAP)?The LCAP is a critical part of the new Local Control Funding Formula ((LCFF)Each school district must engage parents, educators, employees and the community to establish these plans. The plans will describe the school district’s overall vision for students, annual goals and specific actions the district will take to achieve the vision and goals. The LCAPs must focus on eight areas identified as state priorities. The plans will also demonstrate how the district’s budget will help achieve the goals, and assess each year how well the strategies in the plan were able to improve outcomes.
LCAPLCAP
What are the eight state priority areas that must be addressed in the plans? There are eight areas for which school districts, with parent and community input, must establish goals
and actions. This must be done both district-wide and for each school. The areas are: 1.Providing all students access to fully credentialed teachers, instructional materials that align with state standards, and safe facilities. 2.Implementation of California’s academic standards, including the Common Core State Standards in English language arts and math, Next Generation Science Standards, English language development, history
social science, visual and performing arts, health education and physical education standards. 3.Parent involvement and participation, so the local community is engaged in the decision-making process
and the educational programs of students. 4.Improving student achievement and outcomes along multiple measures, including test scores, English
proficiency and college and career preparedness. 5.Supporting student engagement, including whether students attend school or are chronically absent. 6.Highlighting school climate and connectedness through a variety of factors, such as suspension and expulsion rates and other locally identified means. 7.Ensuring all students have access to classes that prepare them for college and careers, regardless of what school they attend or where they live. 8.Measuring other important student outcomes related to required areas of study, including physical education and the arts . In addition to these eight areas, a district may also identify and incorporate in its plan goals related to its own
goals and priorities
What are the eight state priority areas that must be addressed in the plans? There are eight areas for which school districts, with parent and community input, must establish goals
and actions. This must be done both district-wide and for each school. The areas are: 1.Providing all students access to fully credentialed teachers, instructional materials that align with state standards, and safe facilities. 2.Implementation of California’s academic standards, including the Common Core State Standards in English language arts and math, Next Generation Science Standards, English language development, history
social science, visual and performing arts, health education and physical education standards. 3.Parent involvement and participation, so the local community is engaged in the decision-making process
and the educational programs of students. 4.Improving student achievement and outcomes along multiple measures, including test scores, English
proficiency and college and career preparedness. 5.Supporting student engagement, including whether students attend school or are chronically absent. 6.Highlighting school climate and connectedness through a variety of factors, such as suspension and expulsion rates and other locally identified means. 7.Ensuring all students have access to classes that prepare them for college and careers, regardless of what school they attend or where they live. 8.Measuring other important student outcomes related to required areas of study, including physical education and the arts . In addition to these eight areas, a district may also identify and incorporate in its plan goals related to its own
goals and priorities
IMPORTANT FACTORSIMPORTANT FACTORS
COMMON CORE IMPLEMENTATION FUNDS
Charter Schools receiving these funds may receive the apportionment any time during 2013-2014 and 2014-2015 fiscal years.
As stated in AB 86 LEAs shall expend funds for any of following purposes:Professional development for teachers, administrators, and paraprofessional educators or other classified employees involved in the direct instruction of students that is aligned to the academic content standardsInstructional materials aligned to the academic content standardsIntegration of these academic content standards through technology-based instruction for purposes of improving the academic performance of students, including, but not necessary limited to, expenditures necessary to support the administration of computer-based assessments and provide high-speed Internet connectivity for the purpose of administration of computer-based assessmentsAs of condition of receiving these funds , LEAs must develop and adopt a plan delineating how funs shall be spend. Detailed expenditures information is due to the CDE at end of fiscal year 2014-2015
COMMON CORE IMPLEMENTATION FUNDS
Charter Schools receiving these funds may receive the apportionment any time during 2013-2014 and 2014-2015 fiscal years.
As stated in AB 86 LEAs shall expend funds for any of following purposes:Professional development for teachers, administrators, and paraprofessional educators or other classified employees involved in the direct instruction of students that is aligned to the academic content standardsInstructional materials aligned to the academic content standardsIntegration of these academic content standards through technology-based instruction for purposes of improving the academic performance of students, including, but not necessary limited to, expenditures necessary to support the administration of computer-based assessments and provide high-speed Internet connectivity for the purpose of administration of computer-based assessmentsAs of condition of receiving these funds , LEAs must develop and adopt a plan delineating how funs shall be spend. Detailed expenditures information is due to the CDE at end of fiscal year 2014-2015
Funding ScheduleFunding Schedule
Funding Schedule:LAUSD payment usually last week of the month include :Special EducationProperty TAX State Funding :General Funding ( LCFF) – usually first week of the month Federal Funding - Schedule are various date quarterlyChild Nutrition Program - usually by the end of the following month
Funding Schedule:LAUSD payment usually last week of the month include :Special EducationProperty TAX State Funding :General Funding ( LCFF) – usually first week of the month Federal Funding - Schedule are various date quarterlyChild Nutrition Program - usually by the end of the following month
