2016-17 MAY REVISION BUDGET BRIEF

On May 13, 2016, Governor Jerry Brown released the May Revision to the budget proposal for the 2016-2017 fiscal year. This budget revision serves as the final update for some of the revenue estimates and the economic outlook originally proposed earlier in the year. Some of the key elements affecting education are outlined below.

  • Local Control Funding Formula (LCFF): The May Revision proposes nearly $2.9 billion for continued implementation of the LCFF which is $154 million above the amount proposed in January. This new funding is estimated to close the gap between 2015-2016 funding levels and bring schools closer to full implementation.
  • Cost of Living Adjustment (COLA): In 2016-2017 the COLA is down to 0.00% vs. January’s budget of 0.47%. Programs such as Special Education and Child Nutrition will be affected as schools will need to further dip into their unrestricted dollars in order to support these programs.
  • Prop 98 One Time Discretionary Funds: Per pupil amounts have increased from $214 per ADA from the January budget to $237 per ADA.  These funds will be allocated by 2015-16 ADA and will not be available to charter schools beginning operation in 2016-17.
  • Teacher Workforce Actions: The May Revision proposes one-time investments to accelerate the process to obtain a teaching credential and strengthen statewide recruitment of qualified and capable individuals into the teaching profession. These competitive grants of up to $250,000 dollars would be administered by the Commission on Teacher Credentialing (CTC).
  • Emergency Repair Revolving Loan Program: The May Revision proposes the creation of $100 million revolving loan program for school districts and charter schools with emergency facilities needs. This revolving loan would assist schools with critical health and safety facilities needs that would cause the displacement of students from educational settings. Repayment of the loan in full within one year without interest would be required or a structured low interest repayment plan can be facilitated over a 20 year period.
  • Proposition 39 California Clean Energy Funds: There is an increase in funds available to K-12 schools to support energy efficient projects in 2016-17 by $33.3 million.
  • Expiration of Proposition 30 Taxes: The sales tax and high-bracket income tax hike approved by state voters in 2012 generates about $1.5 billion and $6 billion respectively in revenue annually. The sales tax increase is set to expire at the end of 2016. On May 11, 2016, a coalition of labor, education, and health organizations announced they were submitting more than one million signatures to local elections officials to qualify their initiative of extending the high-bracket income tax rate for the November 2016 ballot.

CALIFORNIA STATE AUDIT GUIDE UPDATE

Did you know that Educator Effectiveness funds are subject to your annual independent audit? If your school has expended any of these funds or is planning to expend these funds in the future make sure that the expenditures are being tracked separately, as a final expenditure report is due to the California Department of Education by July 2018. If you are unsure what your auditors will be asking you for, we have provided you with this quick reference guide!

  • Similar to the requirements for the previous Common Core State Standards Funds, a plan delineating how the Educator Effectiveness funds will be spent must be explained in a public meeting of the governing board of the charter school before its adoption in a subsequent meeting. Your auditors will want to see evidence of this by requesting the board minutes for these two meetings.
  • If expenditures have been made in the current year, your auditor will select a sample of expenditures in order to verify funds are being tracked and expended on allowable items. Allowable items as outlined in Senate Bill 103, Section 8(b)(1) include the following:
    • Beginning teacher and administrator support and mentoring, including, but not limited to, programs that support new teacher and administrator ability to teach or lead effectively and to meet induction requirements adopted by the Commission on Teacher Credentialing and pursuant to Section 44259 of the Education Code.
    • Professional development, coaching, and support services for teachers who have been identified as needing improvement or additional support by local educational agencies.
    • To promote educator quality and effectiveness, including, but not limited to, training on mentoring and coaching certificated staff and training certificated staff to support effective teaching and learning.
    • Professional development for teachers and administrators that is aligned to the state content standards.
  • Make sure the funds are being tracked separately for each of the four purposes contained in Senate Bill 103, Section 8(b)(1) and be able to furnish the following information:
    • The number of teachers, administrators, and paraprofessionals that received professional development.
    • Expenditures for each of the four purposes.
    • For purposes of professional development for teachers and administrators that are aligned to the state content standards as provide by in (b)(1)(C) of Senate Bill 103, Section 8, the number of teachers and administrators for each of the content standards.


UPCOMING CRITICAL DEADLINES

Don’t miss these important upcoming deadlines!

  • June 15, 2016: Deadline for charter schools to submit an appeal to the SBE to be reviewed at the September SBE meeting.
  • June 24, 2016: Deadline for charter schools whose petitions will be reviewed at the September SBE meeting to submit their Charter Submission Packages to the CDE.
  • June 30, 2016: Child Care Facilities Revolving Loan Program application due to the CDE.
  • June 30, 2016: Fiscal Year 2015-16 California Revolving Loan Program applications due to the CDE.
  • June 30, 2016: Charter schools interested in exploring LEA status or negotiating alternative special education arrangements for the 2017-18 school year must submit a letter notifying their existing SELPA of their intent to exit the SELPA.
  • June 30, 2016: Child and Adult Food Care applications due to the CDE.
  • June 30, 2016: School Nutrition Program applications due to the CDE.
  • June 30, 2016: Summer Food Service Programs applications due to the CDE.

MAY REVISE + JUNE UPDATES 06.01.2016