Shopping Cart
Your Cart is Empty
Quantity:
Subtotal
Taxes
Shipping
Total
There was an error with PayPalClick here to try again
CelebrateThank you for your business!You should be receiving an order confirmation from Paypal shortly.Exit Shopping Cart

California School Fiscal Services

Providing comprehensive business office and consulting services to K-12 traditional schools and charters

Blog

Blog

LCFF: Still Not the Magic Pill That Education was hoping for - Author: Ron Foretenberry

Posted on July 22, 2014 at 1:45 PM

After attending the SSC California School Finance and Management Conference, I walked away with a renewed sense of gratitude for the “new money.” However, I was also reminded by the glaring new regulations and need for continued conservative budgeting, much to the disappointment of unions.

The following highlights will hopefully illustrate the blessings, along with the challenges, given to school finance professionals under this new LCFF funding formula.


1. Expenditures will be more of a concern than ever this year.

CALSTRS contributions go up for employers, employees and the state beginning in 2014-15.

STRS and PERS rates will double in a decade.

The biggest impact is on the employer contribution which will increase each year and represent a total increase of 4.33% by 2016-17-the 3rd year of the MYP.

Employer rates will increase from 8.25% – 19.1% over 7 years.

 

2.  Some districts are struggling with progress toward class-size requirements

Failure to meet the 24:1 average class size requirement will cause an estimated reduction in 2014-15 LCFF funding of an estimated $215.50 per K-3 ADA.

After six years of deficit spending and few salary increases, budget stress is still a major factor.

Salary demands and poor understand of the LCFF create pressure at the bargaining table.

 

3.  Reserves – A Real Game Changer

Unions have long complained about district reserve levels.

New law will cap reserve limits.

Collective bargaining will become more difficult.

 

4. LCAP is now King

For high funded districts, about 2/3 of the new dollar is targeted for improved or increased services to students.

The targeted funding can be used for across-the-board salary increases in only very limited circumstances.

If targeted funds are to be used for compensation, they have to be tied to activities that “increase or improve” services to students.

 

5. Prop 30 reminders for those who believe schools received extra funding

No new funding!

$7B transferred to the General Fund before the passage of Prop 30 was RESTORED to education.

Our “increase” was solely a restoration of funding.

Prop 30 is temporary.

Boosted revenues $7.1B in 2013-14.

Projected increase in revenues $7.4B in 2014-15.

Unless extended by taxpayers, the higher tax revenue expires as follows:

The .25% sales tax expires in the 2016-17 year.

The personal income tax expires in the 2018-19 year.

In the 2019-20 year increased funding based on temporary taxes are 0!

 

6.  Deferrals

 The Governor proposed to buy back all K-14 deferrals at a cost of $6.1B.

The Legislature reduced the deferral buy-back by $1B.

There is “TRIGGER” language in the State Budget that could allow 2013-14 and 2014-15 funds that become available to retire the remaining deferrals.

The current effort to pay down deferrals reduced the total outstanding deferrals by more than 90%.

 

 7.  Local Reserves

SB 858 requires the following in 2015-16.

 If a district adopts a budget with an ending fund balance above the minimum reserve specified by the State Board of Education, the district must:

Identify the minimum reserve level applicable to the district.

Identify the amount in excess of the minimum reserve.

Prepare a statement that substantiates the need for the excess.

 

8.  Prop 44 “Rainy Day Fund Measure”

If Prop 44 passes a new Ed Code is enacted providing that if the state makes a contribution to the Prop 98 reserve, the following year the local districts will be prohibited from having reserves in excess of two to three times the minimum recommended amount.

 

9. School Facilities

SB 854

 Labor Code Sec. 1770 requires the payment of prevailing wage to all workers employed on public works projects.

A new public works contractor registration program was established that will collect fees to fund compliance monitoring and enforcement, determine prevailing wage and public works coverage and hear enforcement appeals.

All contractors and subcontractors intending to bid or perform work on public works projects will be required to meet minimum qualifications and register online ANNUALLY for the program for a non-refundable fee of $300.

The Department of Industrial Relations will post a list of registered contractors and subcontractors on its website.

Beginning April 1, 2015, LEAs must begin using only registered contractors and subcontractors on public works projects awarded.

 

10. AB 44

Existing law specifies that any entity accepting bids for public works projects must require that any person submitting a bid or performing work include in their bid the name and location of the place of business of each subcontractor who will perform work.

Effective July 1, 2014, AB 44 requires the inclusion of the California contractor license number for each subcontractor.

LEAs should ensure that the new requirement is included in their bid documents and that any bids submitted after July 1st include this additional information.

 

CONCLUSION

So as one can see by the new funding paradigm, there comes with it increased scrutiny, accountability, regulations and a renewed call for careful and conservative budgeting moving forward.

 

Categories: California State Budget (2014-15)

Post a Comment

Oops!

Oops, you forgot something.

Oops!

The words you entered did not match the given text. Please try again.

2849 Comments

Reply kd 10
7:39 PM on December 10, 2020 
Thanks a lot for providing individuals with a very splendid chance to discover important secrets from this blog. It can be so great plus full of fun for me personally and my office friends to visit your web site at the least 3 times a week to see the new items you have got. Of course, I am also usually motivated concerning the incredible inspiring ideas served by you. Some two areas in this article are certainly the finest we have ever had.
kd 10 http://www.kd10.us
Reply longchamp outlet
7:37 PM on December 10, 2020 
I must get across my affection for your kind-heartedness in support of visitors who actually need guidance on this study. Your real dedication to passing the message across appears to be unbelievably important and have specifically encouraged ladies like me to reach their desired goals. The valuable publication means so much a person like me and still more to my office colleagues. Warm regards; from all of us.
longchamp outlet http://www.longchampbagsoutlet.us
Reply curry 7 shoes
7:35 PM on December 10, 2020 
I precisely needed to thank you so much all over again. I'm not certain what I might have gone through in the absence of the entire creative ideas provided by you regarding such area of interest. This has been a real intimidating problem for me personally, however , understanding the very well-written strategy you managed the issue made me to weep with gladness. Now i'm grateful for your service and then hope that you are aware of an amazing job you happen to be providing training others through the use of a site. Probably you've never got to know any of us.
curry 7 shoes http://www.curry7.us
Reply jordan shoes
5:56 AM on December 10, 2020 
Thanks a lot for giving everyone such a wonderful chance to read critical reviews from here. It really is so useful plus full of a great time for me personally and my office mates to search your site at a minimum 3 times in a week to study the newest guidance you will have. And indeed, I am always fascinated concerning the fabulous points you serve. Selected 1 points on this page are easily the very best we've had.
jordan shoes http://www.air-jordanshoes.us.org
Reply balenciaga
5:56 AM on December 10, 2020 
I just wanted to write a small comment to say thanks to you for all the amazing facts you are giving at this site. My extended internet research has at the end been rewarded with wonderful insight to exchange with my family and friends. I would state that that we site visitors actually are definitely endowed to exist in a really good network with many wonderful professionals with helpful strategies. I feel pretty lucky to have used your web page and look forward to plenty of more entertaining minutes reading here. Thank you once again for everything.
balenciaga http://www.balenciaga.us.com
Reply jordan shoes
5:56 AM on December 10, 2020 
I would like to convey my respect for your kind-heartedness for persons that have the need for help with this subject. Your real commitment to getting the solution all-around appeared to be exceptionally informative and have specifically permitted professionals much like me to achieve their desired goals. Your interesting information entails much to me and further more to my office colleagues. Many thanks; from each one of us.
jordan shoes http://www.jordan11retro.us.com
Reply kobe basketball shoes
5:56 AM on December 10, 2020 
Thank you so much for giving everyone an extraordinarily remarkable possiblity to read in detail from here. It's usually very excellent plus stuffed with a great time for me personally and my office colleagues to visit your website more than thrice per week to find out the newest issues you have. And lastly, I am also certainly motivated concerning the excellent tips and hints you serve. Certain 2 points in this post are certainly the finest we've had.
kobe basketball shoes http://www.kobebasketballshoes.net
Reply outlet golden goose
5:56 AM on December 10, 2020 
I needed to send you the little note to be able to thank you very much again for your pretty views you've documented in this case. It is certainly extremely generous of you to grant openly precisely what most of us would have distributed as an electronic book to help make some cash for themselves, mostly given that you might have done it in the event you considered necessary. Those secrets in addition acted like a fantastic way to be certain that other individuals have similar dreams like my own to learn way more when considering this matter. I believe there are lots of more fun moments in the future for those who examine your website.
outlet golden goose http://www.goldengoosesneakers.us
Reply russell westbrook shoes
5:55 AM on December 10, 2020 
I'm commenting to let you be aware of of the impressive encounter my child gained reading through your site. She mastered such a lot of things, with the inclusion of how it is like to have a wonderful giving spirit to let the mediocre ones easily understand specific multifaceted subject areas. You really exceeded our own expectations. Thank you for showing the essential, dependable, educational not to mention unique tips about this topic to Ethel.
russell westbrook shoes http://www.russellwestbrookshoes.us
Reply longchamp
5:55 AM on December 10, 2020 
I actually wanted to jot down a small remark to express gratitude to you for some of the stunning instructions you are posting at this website. My rather long internet lookup has at the end been paid with brilliant knowledge to share with my family. I would admit that most of us website visitors actually are really fortunate to be in a useful community with so many special people with insightful suggestions. I feel extremely blessed to have encountered your entire web site and look forward to plenty of more amazing moments reading here. Thank you once again for a lot of things.
longchamp http://www.longchampshandbags.us.org
Reply Kiajeaky
12:56 AM on December 10, 2020 
cialis tablets 20mg for sale
Reply Denjeaky
5:35 PM on December 9, 2020 
nimotop tablet viagra india buy modafinil online no prescription feldene 20 fildena in india
Reply moncler outlet
4:48 PM on December 9, 2020 
I'm commenting to let you be aware of what a beneficial experience our girl gained viewing the blog. She mastered a lot of pieces, which include how it is like to have a great giving character to have other people quite simply fully grasp several problematic subject areas. You undoubtedly did more than readers' desires. Thank you for providing these beneficial, healthy, explanatory and easy tips about that topic to Jane.
moncler outlet http://www.moncler--outlet.us.com
Reply chrome hearts store
4:48 PM on December 9, 2020 
Thank you for all your efforts on this blog. Betty takes pleasure in carrying out investigations and it's simple to grasp why. I hear all about the lively ways you convey useful tips and hints via this website and recommend contribution from some other people on the area of interest plus our princess is in fact becoming educated a lot of things. Take pleasure in the rest of the new year. You have been performing a great job.
chrome hearts store http://www.chromeheartstoreonline.com
Reply golden goose
4:47 PM on December 9, 2020 
I am also writing to make you understand what a magnificent experience my friend's princess found studying the blog. She noticed plenty of issues, which included how it is like to have a marvelous coaching mindset to have men and women effortlessly gain knowledge of various problematic topics. You undoubtedly surpassed readers' expected results. Thanks for churning out these helpful, dependable, informative and as well as unique thoughts on this topic to Lizeth.
golden goose http://www.goldengoose-outlet.us.com
Reply bape outlet
4:46 PM on December 9, 2020 
I must express my appreciation to the writer just for rescuing me from this type of condition. Right after looking throughout the online world and obtaining ideas which are not productive, I was thinking my life was gone. Living minus the solutions to the difficulties you've fixed all through your short post is a critical case, as well as those that could have in a negative way affected my career if I hadn't noticed your blog. Your own expertise and kindness in maneuvering a lot of things was tremendous. I am not sure what I would've done if I had not encountered such a point like this. I can also at this time look forward to my future. Thank you so much for this skilled and results-oriented help. I won't be reluctant to propose your web blog to anyone who needs care about this subject matter.
bape outlet http://www.bapesonline.com
Reply kyrie 4
4:46 PM on December 9, 2020 
A lot of thanks for your entire work on this blog. Debby really likes making time for investigations and it's simple to grasp why. Most of us learn all regarding the powerful manner you offer both useful and interesting tips by means of this blog and as well as inspire response from others on the concept so my princess has been studying a lot. Take pleasure in the rest of the year. Your doing a fantastic job.
kyrie 4 http://www.kyrie4shoes.us
Reply air jordans
4:46 PM on December 9, 2020 
I must express some appreciation to this writer just for bailing me out of such a issue. Because of surfing around through the online world and getting advice that were not powerful, I thought my entire life was gone. Living without the solutions to the problems you've fixed by means of your entire posting is a crucial case, as well as the ones which could have adversely affected my career if I hadn't discovered your website. The ability and kindness in maneuvering a lot of things was useful. I don't know what I would have done if I hadn't come across such a point like this. I can now look forward to my future. Thank you so much for your specialized and effective guide. I won't think twice to recommend the blog to anyone who wants and needs recommendations about this issue.
air jordans http://www.cheap-airjordans.us.com
Reply hermes birkin
4:46 PM on December 9, 2020 
I have to express my passion for your kind-heartedness for persons that actually need assistance with this particular study. Your very own commitment to passing the message all over came to be really valuable and have all the time made professionals like me to get to their ambitions. This warm and helpful information entails a great deal to me and additionally to my mates. Many thanks; from all of us.
hermes birkin http://www.hermesbirkins.com
Reply air jordan
4:45 PM on December 9, 2020 
Needed to send you the little bit of observation just to say thank you the moment again for your personal stunning techniques you've shown on this site. This has been really generous with people like you in giving easily all that many individuals would've marketed for an e-book in making some profit on their own, certainly since you could possibly have tried it if you considered necessary. The points additionally worked to be the great way to be certain that someone else have the same fervor just like mine to learn whole lot more with regard to this condition. I am sure there are millions of more pleasurable opportunities ahead for people who see your blog post.
air jordan http://www.airjordansstore.com