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.

2590 Comments

Reply curry shoes
12:39 PM on August 14, 2021 
My wife and i got so lucky when Peter managed to round up his researching by way of the ideas he received from your very own weblog. It is now and again perplexing to simply happen to be giving out secrets and techniques that many some people could have been trying to sell. And we also realize we've got you to appreciate for that. Most of the explanations you made, the simple web site menu, the relationships your site give support to foster - it is all sensational, and it is leading our son and us feel that this article is brilliant, and that is extraordinarily fundamental. Thank you for all!
curry shoes http://www.stephcurry.us
Reply supreme clothing
12:39 PM on August 14, 2021 
I enjoy you because of your own work on this web site. Kim enjoys making time for research and it's really obvious why. Most people notice all regarding the lively manner you create very important tips on your web blog and as well recommend contribution from the others on this issue then our own simple princess has always been starting to learn so much. Enjoy the rest of the year. You have been doing a very good job.
supreme clothing http://www.supremeclothings.com
Reply off white jordan 1
12:38 PM on August 14, 2021 
A lot of thanks for your entire efforts on this site. Ellie enjoys getting into research and it's obvious why. We notice all relating to the lively tactic you give useful guidelines through your web site and as well as strongly encourage contribution from the others about this area of interest while our own girl is undoubtedly being taught a great deal. Take advantage of the remaining portion of the year. Your carrying out a fabulous job.
off white jordan 1 http://www.offwhitexjordan1.com
Reply supreme clothing
12:38 PM on August 14, 2021 
I together with my buddies came reading through the best guidelines on your web page while all of a sudden developed a horrible feeling I had not expressed respect to the web blog owner for those tips. Those young men had been for this reason warmed to read through all of them and already have truly been making the most of them. Thanks for being very kind as well as for deciding on some terrific subjects millions of individuals are really desirous to learn about. My very own honest apologies for not expressing appreciation to sooner.
supreme clothing http://www.supremeclothing.us.org
Reply yeezy
12:38 PM on August 14, 2021 
Needed to send you one tiny observation in order to thank you very much again with the precious secrets you've documented at this time. It's simply generous of you to offer openly exactly what most people could have made available as an electronic book to help make some bucks for their own end, even more so now that you might well have tried it if you desired. These thoughts in addition worked to provide a easy way to fully grasp other people online have the identical dreams the same as my own to grasp more pertaining to this issue. I'm certain there are many more pleasant instances in the future for many who scan through your website.
yeezy http://www.yeezy-shoes.us.org
Reply curry 7 sour patch
12:37 PM on August 14, 2021 
I'm writing to let you understand what a excellent discovery my princess undergone reading through your web page. She picked up such a lot of details, which included what it's like to possess an excellent helping nature to have other people clearly fully understand a variety of grueling subject matter. You really did more than our desires. Thanks for rendering such powerful, dependable, revealing and even unique thoughts on that topic to Emily.
curry 7 sour patch http://www.curry7.us
Reply jordan retro
12:37 PM on August 14, 2021 
I simply had to thank you so much yet again. I am not sure what I would've undertaken without the entire concepts shown by you relating to my subject matter. It absolutely was the terrifying matter in my view, nevertheless considering your skilled style you treated that forced me to cry with contentment. Now i am grateful for this advice and even expect you comprehend what an amazing job you are always undertaking educating some other people through the use of your blog. I am certain you haven't encountered any of us.
jordan retro http://www.jordan-retro.us.com
Reply nike sb
12:36 PM on August 14, 2021 
My spouse and i have been very cheerful Raymond managed to finish up his survey through the entire ideas he made from your very own blog. It's not at all simplistic to simply find yourself giving for free facts which often other folks could have been selling. And now we realize we now have the writer to give thanks to because of that. The type of illustrations you've made, the easy site menu, the friendships your site make it possible to promote - it's all spectacular, and it's really assisting our son in addition to the family recognize that this concept is brilliant, which is very mandatory. Thank you for the whole lot!
nike sb http://www.sbdunk.us
Reply yeezy 350
1:17 AM on August 12, 2021 
I am only writing to make you be aware of of the terrific discovery my daughter developed visiting your web site. She discovered such a lot of issues, not to mention how it is like to have a great teaching mood to have most people completely learn specific very confusing things. You truly did more than her expected results. Many thanks for providing these useful, safe, informative as well as easy tips on the topic to Sandra.
yeezy 350 http://www.yeezy-350.us.com
Reply goyard
9:02 AM on August 11, 2021 
I in addition to my pals were found to be taking note of the excellent tips and tricks located on your web page while instantly got an awful suspicion I never expressed respect to the web blog owner for them. Most of the men are already for that reason happy to study them and already have actually been taking advantage of these things. Appreciation for being so accommodating as well as for selecting this sort of cool subjects most people are really desirous to understand about. Our honest apologies for not saying thanks to you earlier.
goyard http://www.goyardhandbag.com
Reply kd13
9:02 AM on August 11, 2021 
I simply desired to say thanks all over again. I'm not certain the things that I could possibly have achieved in the absence of the entire tips and hints revealed by you relating to this area. It was actually a real horrifying issue in my view, nevertheless being able to view your specialised strategy you processed it forced me to cry for joy. Now i am happier for your assistance and expect you realize what an amazing job that you are carrying out teaching many people through the use of your site. More than likely you haven't come across all of us.
kd13 http://www.kd13shoes.us
Reply off white shoes
9:01 AM on August 11, 2021 
I and my buddies happened to be analyzing the great key points located on your website and immediately came up with a horrible feeling I never expressed respect to the blog owner for those strategies. These young men are actually for this reason warmed to learn them and have in effect in fact been loving these things. Thank you for genuinely considerably considerate as well as for choosing this kind of notable information most people are really needing to understand about. Our honest regret for not expressing gratitude to sooner.
off white shoes http://www.offwhiteshoes.us.com
Reply off white nike
9:00 AM on August 11, 2021 
I simply needed to thank you very much again. I'm not certain the things that I would have taken care of without the tactics shared by you on such situation. It truly was a terrifying difficulty in my opinion, but taking note of the very expert tactic you treated it made me to jump over fulfillment. I am just thankful for your support and thus have high hopes you know what a powerful job you happen to be accomplishing teaching the rest through the use of your web blog. I am certain you haven't come across any of us.
off white nike http://www.offwhite.us.com
Reply jordan shoes
8:59 AM on August 11, 2021 
I needed to compose you a very small note to say thank you the moment again considering the amazing tips you've discussed in this case. It has been quite unbelievably open-handed of people like you to present freely all that most of us would've marketed for an e-book to end up making some profit for their own end, specifically given that you could possibly have tried it if you wanted. The strategies additionally worked to provide a fantastic way to be sure that other people online have the identical keenness just like my personal own to realize a lot more on the topic of this problem. I'm certain there are lots of more enjoyable sessions in the future for individuals that discover your site.
jordan shoes http://www.jordan4.us.com
Reply golden goose
8:58 AM on August 11, 2021 
I have to show some appreciation to this writer for rescuing me from this particular crisis. After looking through the internet and coming across ideas that were not beneficial, I was thinking my entire life was well over. Existing without the presence of solutions to the problems you've sorted out by way of the guide is a serious case, as well as those which might have badly damaged my career if I hadn't discovered your web blog. Your personal competence and kindness in dealing with every aspect was priceless. I don't know what I would have done if I hadn't come across such a thing like this. I can at this time look forward to my future. Thank you very much for the skilled and amazing help. I won't think twice to suggest the blog to anyone who needs counselling on this issue.
golden goose http://www.goldengoosesonline.com
Reply supreme clothing
9:43 AM on August 9, 2021 
Thank you a lot for providing individuals with an extremely pleasant opportunity to read articles and blog posts from this site. It's usually so brilliant plus jam-packed with a good time for me and my office mates to visit your blog at the very least three times in a week to find out the fresh tips you have. Of course, I am certainly amazed for the remarkable points served by you. Some 3 ideas in this article are truly the most beneficial we've ever had.
supreme clothing http://www.supremeclothing.us.org
Reply bape outlet
9:43 AM on August 9, 2021 
I truly wanted to write down a quick message in order to express gratitude to you for the amazing tips and tricks you are sharing on this website. My rather long internet look up has at the end been recognized with incredibly good knowledge to exchange with my two friends. I 'd believe that we readers actually are undoubtedly lucky to live in a fantastic community with many brilliant individuals with very beneficial hints. I feel truly privileged to have seen your web pages and look forward to really more excellent times reading here. Thank you once again for a lot of things.
bape outlet http://www.bapesonline.com
Reply air jordan
9:42 AM on August 9, 2021 
I must point out my respect for your generosity for people that must have assistance with the topic. Your very own dedication to getting the message all-around came to be really invaluable and has in most cases made most people like me to achieve their pursuits. Your personal useful instruction denotes this much to me and especially to my office colleagues. Thanks a lot; from everyone of us.
air jordan http://www.cheapjordan.us
Reply longchamp
2:13 AM on August 8, 2021 
I simply needed to appreciate you yet again. I do not know the things I would've carried out in the absence of the tricks revealed by you over such a industry. It actually was a very distressing matter in my position, however , viewing a skilled tactic you processed that forced me to leap for contentment. Now i am happier for this assistance and as well , sincerely hope you really know what an amazing job you're undertaking instructing the others through a web site. Probably you haven't encountered any of us.
longchamp http://www.longchampshandbags.us.org
Reply yeezy boost 700
1:06 AM on August 7, 2021 
I want to express appreciation to this writer for bailing me out of such a difficulty. Right after scouting throughout the world wide web and finding tips which are not powerful, I figured my life was well over. Living minus the solutions to the problems you have resolved through your entire short article is a critical case, and those that could have adversely affected my entire career if I hadn't encountered your web blog. Your understanding and kindness in playing with the whole lot was important. I am not sure what I would have done if I hadn't come across such a thing like this. I can at this time look ahead to my future. Thanks for your time very much for your professional and result oriented help. I won't be reluctant to refer your web sites to any person who desires support about this issue.
yeezy boost 700 http://www.yeezy700.us.com