Funding and Budgetswith contributions by

John Emerson

Warning: This assignment can cause gray hair and male pattern baldness

Funding SourcesVocational Education Act (VEA) Carl Perkins Act

Originally for disadvantaged and handicapped Allocated funds Unlike discretionary grants is no competition Federal money

No known as 131 & 132 funds Still for handicapped and disadvantaged 131 Secondary levels 132 Adults Allocated funds for Career & Technical Education

Funding Sources cont’

Adult Education Funds Based on attendance

Reported on J152A form Includes:

ABE: Adult basic education - can not perform at 6th grade level

GED: General education development test - have reached 6th grade level

High School Diploma classes ESL: English as a second language - can be combined with

citizenship classes

ROP Regional Occupation Programs Categorical Based on ADA – average daily attendance Double dipping – school receives ADA then

ROP gets ADA credit Consolidated with district general fund for

district operating expense

Funding Sources cont’

Competitive Grants – soft money Competing with all districts for same money Readers assign points – districts with highest

points get the funds Expenditure of award must comply with grant

proposal Grants written for salary – once money is gone

you have teachers with no program to teach Try to write grants for equipment, labs, etc. Strict accountability – be careful you don’t get in

over you head

Funding Sources cont’

Funding Sources cont’

CalWORKS – California Work Opportunity and Responsibility to Kids

Formerly GAIN (Greater Avenues for Independence) and JTPA (Job Training Partnership Act)

High in bureaucracy Highly competitive Rules continually changing Write ROP/Adult Ed into SIP (School

Improvement program) to count attendance on census date

ADA – Average Daily Attendance

Paid based on revenue limit State determines unit per district Varies by LEA (Local education agency)

Examples District X may get ~ $1900 per student District Y may get ~ $2600 per student District Z may get ~ $5000 per student

ADA – Average Daily Attendancecont’ 1 unit ADA = 525 hours of attendance 1 unit ADA earns 1 revenue limit i.e. $2600 1 unit ADA = 6 hours of student in-class

attendance for a comprehensive high school 240 minutes (4 hours) is the maximum a school

district can claim in 1 day for 1 student Additional 120 minutes (2 hours) for ROP

attendance (also reduces class size) 180 minutes (3 hours) for continuation HS

ADA – Average Daily Attendancecont’ Passing periods between regular classes count

toward ADA Passing periods between regular classes and

ROP classes do not count toward ADA 15 hours per week per student maximum for

adult students ROP has no limit Excused vs. unexcused attendance tracking is

not allowed

ADA – Average Daily Attendancecont’ K-12 employs negative attendance – mark when

students are not present ROP and adult education uses positive

attendance – mark when students are present Audit exceptions

Pull registration records Select arbitrary time period Compare all factors

CAP/Growth/COLA & DeficitDefinitions CAP – Maximum student ADA hours which will

be reimbursed by the CDE Growth – Allowable percentage increase in CAP COLA – Cost of living adjustment added to base

salary to account for increased cost of providing services to the community

Deficit [funding] – State has insufficient money to pay capped ADA so it only pays 80%

CAP/Growth/COLA & Deficit When state money is tight CAP ADA maximum

revenue limit is based on a prior year Growth allows percentage (i.e. 2%) to be added

to base (CAP) to compensate for growth COLA can be added to base It takes 18 months to find out what your actual

revenue limit – therefore Districts operate on an estimated budget which

may not be their actual budget determine 18 months following beginning of fiscal year

Estimated ADA & IncomeExampleDistrict X located in San Bernardino County District X ADA unit revenue limit = $2600 SB County retains computational unit (comp unit) for

operating expenses District X receives actual revenue limit of $2000 1 ADA unit = 525 hours

1 student attending 525 hours Group of students attending 525 hours jointly

Class approved for 180 requires 3 student attending every day to generate 1 unit of ADA

Build in attendance factor of 0.75 into budget to compensate for absences

Budget Strategy

Compute costs first Fixed costs = mandatory costs Discretionary costs = money you can play with

1. Compute fixed costs

2. Add discretionary costs

3. Calculate backwards to determine # students necessary to run class

Budget Strategy cont’

Lottery money not capped; paid per ADA unit Where you can “hide” money to provide cushion

4000 accounts: Books and Supplies 5000 accounts: Contracted services and other

operating expenses 6000 accounts: New equipment You didn’t hear it from me

Indirect costs – Local, State, Federal

Program Budgets

Object codes are buried in 23 digit budget account number

01 – 304 – 40 – 4310 – 000 – 000

Federal $ or district matchFunding source object code from budget01 = general funds08 = adult ed (cannot be mingled with general funds)

Print example budget for reference before continuing

Program BudgetsEstimated ADA & Income

Formula

# sections X # slots X 180 hrs X 0.75 ÷ 525 hrs = 20.57 X $1900 = $41142

2 classes 20 kids (1 ADA)

(total ADA) (gross income)

(attendance factor) (revenue unit/computational unit)

(2 sections @ 180 hrs ea = total hrs)

Program BudgetSalaries

Calculate salaries with 4-5% COLA Contract teachers = full-time Hourly teachers = part-time Contract is part of bargaining unit Salary schedule example

$40,000/yr prorated @ $25/hr/day + prep time = ROP cost

Prep time ~ 40% of salary = ~ $16000 Part-time @ $25/hr @ 2 hrs/day for 180 days = $9000 Full-time @ $25/hr @ 6 hrs/day for 180 days = $27,000 Full-time Prep time @ 40% = $27,000 X 40% = $10,800 Total Full-time salary + prep = $27,000 + $10,800 = $37,800

Program Budgets1000 Certificated Salaries (fixed) 1110 Certificated employees = credentialed faculty

1 teacher X 8 hrs/day X 180 days @ $18/hr = $25,920 of

includes 1 hr prep/day annual budget 1140 Substitute salaries

10 days @ $75/day = $750 annually

Total 1000 Certificated Salaries annually $26,670

Program Budgets2000 Classified Salaries (fixed)

Classified Staff – non-credentialed support staff 2100 Vocational Technical Assistant 2300 Clerical staff

Program Budgets3000 Employee Benefits (fixed) 3100 State Teachers’ Retirement System

8.25 % X $26,670 (1000 total) = $2201 3200 Public Employees’ Retirement Fund 3300 Medicare

1.45 % X $26,670 (1000 total) = $387 3350 Alternative Retirement System 3400 Health and Welfare Benefits

$5500 X 1 (# FTE - full-time equivalent FTE) = $5500 3500 State Unemployment Insurance

0.05 % X $26,670 (1000 total) = $14 3600 Workers’ Compensation Insurance

1.5 % X $26,670 (1000 total) = $401

Program Budgets4000 Books and Supplies (discretionary)

4100 Textbooks 4200 Other Books 4300 Instructional Supplies

Program Budgets5000 Contracted Services andOther Operating Expenses (discretionary) 5100 Consultant Services

5110 Approved In-service Activities (see program description form)

1 teacher X $60 X 3 days (3 max, 1 county, 2 district) = $180 5200 Travel/Conference 5400 Insurance 5500 Utilities and Housekeeping Services 5600 Contracts, Rents, and Leases 5630 Rents and Leases * 5690 Student Transportation

Program Budgets6000 New Equipment (discretionary) * 6490 Equipment (Attach list of equipment cost and vendor)

* 6590 Equipment Replacement

Program BudgetsNon-Coded Support Services (fixed) District operating expense decentralized programs

Subtotal all items $35,353 X 15% = $5303

without asterisks (*) (not to exceed 15%)

Program BudgetsEnrollment Management Minimum Target

12 students X 180 days X 6 hrs/day = 12,960 hrs12,960 hrs X 90% attendance = 11,644 hours

11,644 hours ÷ 525 (1 ADA) = 22.21 total ADA

22.21 total ADA ÷ 5 hrs/day = 3.7 ADA/hr Target

15 students X 180 days X 6 hrs/day = 16,200 hrs16,200 hrs X 90% attendance = 14,580 hrs

14,580 hours ÷ 525 (1 ADA) = 27.77 total ADA

27.77 total ADA ÷ 5 hrs/day = 4.63 ADA/hr

Fee-based Classes

Locally designed and operated classes Demand driven curriculum content Most common in adult education programs Fee charged per student Fee paid by student Start-up costs more expensive than

maintenance costs

Estimated costs ÷ # expected students = charge for class

Budgetary Record Keeping Perkins = Federal funding

Mandatory inventory control Requires Vocational Education Act (VEA) tag

VEA 131 – 98 – 4671

Secondary funds budget year inventory # Second tag to identify ROP ownership Must notify Federal government if

Taken out of service Becomes obsolete

PO’s, Requisitions, Bid Limits,& Quote Limits

Requests require requisition PO issued to authorize order Quote limit = expenditures over $25,000

requires 3 quotes Bid limit = public notice with sealed bids

Time Sense

Time sense refers to the time students are in classroom for ADA

Business department and instructors have different time senses

Business department doesn’t care students are sitting in front of computers that don’t work as long as they are in class

Instructor are concerned with productive classroom hours

You need an instructor time sense for TQM

Annual Reports and Documentation

Annual Reports include: ADA - Annual Daily Attendance PBA – Performance Based Accountability

Follow-up Data CCR – Coordinated Compliance Review OCR – Office Civil Rights review

Documentation Use of transferred funds Transfer funds & amend budgets by end of fiscal year

Other Considerations

Track open POs and how much is owed

Applications concerns Format must be precise Due dates must be met Deadline cutoffs are absolute

Estimated Budget Overview

SalariesAnd

Benefits

Facilities

Instructional Materials &

Supplies

Capital Outlay

UtilitiesOther

Staff Development (discretionary)

Ready – Set - Go

To your Funding & Budgetary Procedures Assignment

Good Luck!