Upload
charter-school-capital
View
318
Download
0
Embed Size (px)
DESCRIPTION
Citation preview
Copyright © 2013 Charter School Capital, Inc.
Budget + Sequestration Impacts on CA
Charter Schools
July 24, 2013
2Copyright © 2013 Charter School Capital, Inc.
WELCOME
• Panelists– Chas Cardall, Orrick, Herrington & Sutcliffe– Branche Jones, Legislative Consultant– John Helgeson, Charter School Capital
Who we are
3Copyright © 2013 Charter School Capital, Inc.
WELCOME
• Overview• Budget process and impacts
– Funding - Local Control Federal Funding (LCFF)– Cash flow– Accountability
• Sequester• Looking ahead
Agenda
Copyright © 2013 Charter School Capital, Inc.
Overview
5Copyright © 2013 Charter School Capital, Inc.
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
Overview
Copyright © 2013 Charter School Capital, Inc.
Funding
7Copyright © 2013 Charter School Capital, Inc.
FUNDING
• Phases of the plan– Legislative– Regulatory– Build-up– Full implementation
• Political Landscape– How we got here
oRole of Prop 30oWhat did people get?
– Collective: Accountability– Cap charter school funding
– Why the Governor believes so strongly?
Overview – Local Control Funding Formula
8Copyright © 2013 Charter School Capital, Inc.
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
– Capped at % of your district, not necessarily your authorizer
Overview – Local Control Funding Formula
9Copyright © 2013 Charter School Capital, Inc.
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?
10Copyright © 2013 Charter School Capital, Inc.
FUNDING
Rate Card
K-3 4-6 7-8 9-12
Base F’13 $5,109 $5,187 $5,346 $6,188
Base F’14 $5,109 $5,187 $5,346 $6,188
Target Base $6,845 $6,947 $7,154 $8,289
11Copyright © 2013 Charter School Capital, Inc.
FUNDING - LCFF
TY LY Future
ADA 100 100 100
K-3 100 100 100
School Q# 60 60 60
District % 60% 60% 60%
CG Qual: 5 5 5
K-3 Base $5,109 $5,109 $6,845
Revenue $510,900 $510,900 $684,500
Supplemental Grant / CG
Q Pupils 60 80 60
20% of Rate $1,022 $816 $1369
Revenue $61,308 $65,280 $82,140
12Copyright © 2013 Charter School Capital, Inc.
FUNDING - LCFF
Concentration Grant
Q Pupils 5 - 5
50% of Rate $2,555 $- $3,423
Revenue $12,773 $- $17,113
K-3 Augmentation
K-3 ADA 100 100 100
Rate $531.34 $1,071 $711.88
Revenue $53,134 $107,100 $71,188
Total Revenue
Q: EL/F&RL/FY $638,114 $683,280 $854,941
13Copyright © 2013 Charter School Capital, Inc.
FUNDING
Prop 30 - Effect of the EPA on GPE Calculation
GPBG
In-Lieu
GPBG
In-Lieu
EPA
14Copyright © 2013 Charter School Capital, Inc.
FUNDING
July
2013
Augus
t
Septe
mbe
r
Octob
er
Novem
ber
Decem
ber
Janu
ary
2014
Febru
ary
Mar
chApr
il
April d
ef J
ulM
ay
May
def
Jul
June
June
def
Jul
July
Augus
t0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
Base Line
2012-13
2013-14
Fiscal Year 2013 - 2014
Per
cen
t o
f A
nn
ual
Rev
enu
es R
ecei
ved
Eac
h M
on
th
Copyright © 2013 Charter School Capital, Inc.
15Copyright © 2013 Charter School Capital, Inc.
Budget Impacts
16Copyright © 2013 Charter School Capital, Inc.
• LCFF implementation $2.1B• Common Core funding and implementation $1.25B
– $250M one time competitive grants (SBE)• Deferral Buy-down $4.25B• Proposition 39 implementation Energy Efficiency $381M
– Details not yet known
What are additional impacts?
BUDGET IMPACTS
Copyright © 2013 Charter School Capital, Inc.
Accountability
18Copyright © 2013 Charter School Capital, Inc.
• 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
19Copyright © 2013 Charter School Capital, Inc.
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
20Copyright © 2013 Charter School Capital, Inc.
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
Copyright © 2013 Charter School Capital, Inc.
Understanding Sequestration
22Copyright © 2013 Charter School Capital, Inc.
WHAT IS SEQUESTRATION?
• Budget Control Act of 2011– Creates a mechanism to encourage a “give and take” in budget
negotiations known as sequester– Implementation is sequestration
• Definition– “Sequestration is a mechanism to enforce deficit reduction by motivating
Congress to compromise on budget negotiations or face mandatory cuts of $85B”
– Forces federal budget cuts
Definition
23Copyright © 2013 Charter School Capital, Inc.
• Legislators in DC unable to create a budget with appropriate cuts to reduce the federal budget deficit
• No compromise has been made• $85B of mandatory cuts go in to effect and will impact every federal program
Politics
WHAT IS SEQUESTRATION?
24Copyright © 2013 Charter School Capital, Inc.
WHAT IS SEQUESTRATION?
Federal Deficit – FY 2008 - 2015
2008 2009 2010 2011 2012 2013 2014 20150
200
400
600
800
1000
1200
1400
1600
US Federal Deficit - FY 2008 - 2014
25Copyright © 2013 Charter School Capital, Inc.
SEQUESTRATION IMPACTS
Non-exempt defense discretionary
28%
Non-exempt nonde-fense discretionary
funding18%
Medicare7%
Non-exempt nonde-fense mandatory
programs18%
Non-exempt defense mandatory programs
29%
Overall $85B in Cuts
What is being cut?
26Copyright © 2013 Charter School Capital, Inc.
SEQUESTRATION IMPACTS
• Unknown• If Congress does not agree to a compromise, the sequester will continue• Next year, it would start in September; this means that cuts would be
implemented across 12 months rather than 7 months like this year• Projected cut is not 5%, but 7-8%, well above $100B
Will this happen again?
Copyright © 2013 Charter School Capital, Inc.
What Can You Do?
28Copyright © 2013 Charter School Capital, Inc.
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
– The Administration wants to run legislation to address it this year• Be careful - actual and projected rates are different• If you have questions…ask us – we’re here to help
Plan
Copyright © 2013 Charter School Capital, Inc.
Questions?
Copyright © 2013 Charter School Capital, Inc.
30Copyright © 2013 Charter School Capital, Inc.
Thank You.