How to read a school distrcit budget

1. Budget 101 Everything you wanted to know about budgets, but were afraid to ask Jake Anderson UACT Executive Director September 22, 2009

2. How did we get here? 1968 Serrano v. PriestLawsuit challenging the fairness of California's system for funding K-12 education. 1972 SB 90Established revenue limits, a ceiling on the amount of general purpose money each school district may receive. 1976 Serrano v. PriestThe California Supreme Court ruling that the school finance system was inequitable.

3. How did we get here? 1977 AB 65Long term funding bill in response to the Serrano court decision. 1978 Proposition 13Constitutional amendment limiting property tax rates and increases. 1979 AB 8The funding method for schools after Proposition 13, with a new formula for dividing property taxes. Granted larger inflation increases to low spending districts, the "Serrano squeeze."

4. How did we get here? 1979 Gann LimitConstitutional limit on governmental spending at all levels, including school districts. 1983 SB 813Major school improvement law, including mentor teachers, longer school day/year, higher beginning teachers’ salaries, more rigorous graduation requirements, and statewide curriculum standards. 1984 LotteryConstitutional amendment creating the California State Lottery, with a designated percentage of earnings for education.

5. How did we get here? 1988 Proposition 98Constitutional amendment that guarantees a minimum level of funding for K-14 education (amended by Proposition 111 in 1990). 1996 SB 1777Created incentives to reduce K-3 class sizes.

6. How did we get here? 2000 Proposition 20Constitutional amendment requiring half of growth in lottery money be used for instructional materials. 2000 Proposition 39Constitutional amendment permitting a 55% yes vote for approval of local General Obligation bonds. 2000 Williams v. CaliforniaA lawsuit charging that California is not providing basic educational necessities for all students. Settled in 2004.

7. The Lottery saved us, right? Not so much In November 1984 voters approved minimum of 34% of annual lottery sales revenues must be distributed to public schools, colleges, and universities. The money is to supplement, not supplant, regular support for public education. In March 2000 Proposition 20. half of any growth in lottery money above the 1997-98 base must be spent on instructional materials or textbooks. Provides about 1.5% of the funding to schools (about 125 bucks a head). The most it ever was- 4.5%

8. Prop 98 Payback

9. More pain

10. How much has been cut from CVUSD FBRL? On-Going Cuts: First Cut 2008/09 $151.19 ADA Second Cut 2009/10 $430.36 ADA One-Time Cut: One Time Cut 2009/10 $252.83 ADA 2007/08 FBRL $5792.71 2008/09 FBRL $5641.52 2009/10 FBRL $4958.33

11. Sooo, what’s it all mean? 2009/10 FUNDED Base Revenue Limit $4958.33 2009/10 STATUTORY Base Revenue Limit$6382.71 Difference?$1424.38 ADA

12. Deferrals 2008-09 to 2009-10 $335 M Add’l deferral proposed from 2009-10 to 2010-11 $1.7 B from Apr/May 2010 to July/Aug 2010 $2 B $570 M $1 B $1.5 B

13. What are the main rules for money? Restricted vs Unrestricted 3% DEU AB1200 Commingling of funds

14. Where does the money come from? CVUSD- State $142,158,256 (81.9%) Fed $11,813,994 (6.8%) Other $8,843,887 (5.1%) Incoming transfers $10,737,337 (6.2%) Total Income $173,553,474

15. Total Revenue Total Revenue + Transfers In + Uses 162,816,137 + 10,737,337 + 0 $173,553,474

16. Expenditures Certificated Salaries 85,996,031 Classified Salaries 25,343,499 Benefits 33,284,862 Books and Supplies 7,391,110 Contracted Services 14,154,071 Capital Outlay 32,261 Other Outgo 859,920

17. Total expenditure Total Expenditure + Transfers Out + Uses $166,201,834 + $859,920 + 0 $167,061,754 Did they just count putting money into other funds as an expenditure? Yup.

18. Figure out statutory DEU 3% x Total Expenditure Why? State mandated Latest budget deal allows district to reduce to 1% reserve, but must be back at 2011/12.

19. The reserve Restricted “State Fiscal Stabilization Fund” 5,727,319 Reserve for Program Carryovers 1,331,212 7,058,529 Unrestricted Stores 283,912 Revolving Cash 33,000 Reserve for Program Carryovers 1,279,478 School Carryover 704,650 Secondary Unused PSU 211,568 Audit Reserve 200,000 3% Contingency 5,138,263 Reserve for 08-09 Budget Development 3,589,871 11,411,042 Plus Last Year’s Remaining Ending Balance3,862,401 Total Unrestricted Reserve 15,273,443 TOTAL RESERVE $22,331,972

20. Cost of 1% Line Item 1100 x 1.13 x .01= 73,431,168 x 1.13 x .01= $829,772 Why 13%? Statutory benefits- STRS, Workers Comp, Unemployment, etc

21. How do we know if something isn’t right? Look at the history Large jumps in funding can mean many things New grant Carry-over Budget software Shenanigans

22. UACT Contacts Colleen Briner-Schmidt uact@verizon.net 805-497-8220 Jerry Morris jmorris@conejo.k12.ca.us Jake Anderson janderson@cta.org 805-497-8220 818-889-4377