Education Budgets and Transparent Funding

PTA CouncilOctober 15, 2009

LMU Family of Schools

Agenda

• Mission of iDesign• Overview of State and Local Demographics• Overview of State and Local Budgets• Types of Funding• Traditional Funding Model• Transparent Funding Model

Overview of State and Local Demographics

California Department of Education, http://www.cde.ca.gov/ds/ October 13, 2008.

Overview con’t:

California Department of Education, http://www.cde.ca.gov/ds/ October 13, 2008.

Overview of State and Local Budgets

School Finance Facts, California Budget Project, Feburary 2009

Types of Funds:State Distribution to School Districts

Restricted/Categorical Funds Unrestricted Funds

-earmarked for certain purposes: Special Education, Title 1, Federal and State policies (Class size reductions, No Child Left Behind)

-35% of total budget

-available to be spent: salaries and benefits, services and operating expenditures, books and supplies

-65% of total budget

Traditional Funding Model

• Schools receive most resources in the form of positions based on District determined staffing formulas

• Traditionally, schools had control of 1% of discretionary funds available

2009-2010 Funding Model

• Schools receive resources in the form of dollars and budget these dollars according to the needs of the school

• For this school year, schools have control over 15% of discretionary funds

• In 2010-11, the goal is for schools have control over 80% of discretionary funds

Purpose of New Model • Transparency– how much revenue the District receives and where it

all goes• Flexibility– Revenue goes directly to schools so that school

communities can make spending decisions that meet the unique needs of their student population.

• Equity– program costs are clear – not masked by the use of

averages, which can create numerous inequities in our system.

Why is the use of average salaries inequitable?

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• Using average salaries, instead of true costs, masks spending differences between schools.

School A School B

Size 1000 students 1000 students

# of teachers 24 24

Level of teacher experience Veteran New

Average Salary Cost $1.7 million $1.7 million

Actual Salary Cost $1.9 million $1.4 million

Per Pupil Cost $1,900 $1,400

School B is actually receiving $500 less per pupil.

Who is Participating?

2009 – 2010:– 33 schools

• 19 iDesign• 7 Volunteer• 7 Belmont• All types of schools ( 9

elementary, 6 middle, 17 high, 1 span)

2010 – 2011:– All LAUSD will have

transparency around revenue and expenditure

2009-2010 Funding Model

• Schools receive resources in the form of dollars and budget these dollars according to the needs of the school

• Enrollment-generated teaching and counseling positions are an exception to the resources

• Discretionary Allocation includes: Principal’s, AP’s, Clerical Staff, Librarians and Aides, Custodial Staff, Elementary Arts Teachers, Supervisions

Example of OWMSPosition Norm Allocation Budgeted by School

Principal 1.00 1.00

Asst. Principal 1.00 1.00

School Admin Asst 1.00 1.00

Sr Office Technician 1.00 1.00

Office Technician .49 1.00

Clerk 0 1.00

Plant Manger 1.00 1.00

Asst. Plant Manger 1.00 1.00

Buildings and Grounds 4.00 3.50

School Facilities 2.00 2.00

Library AIde 0 .75

Library Media Teachers 1.00 0

Total 13.49 14.25

How to Calculate Unrestricted Resources

Next Year’s Projected Enrollment

Next Year’s Projected Enrollment

Per Pupil AllocationPer Pupil

Allocation

Last Year’s Attendence Rate (ADA)

Last Year’s Attendence Rate (ADA)

Total School Discretionary

Fund

Total School Discretionary

Fund

How to Calculate the Per Pupil Allocation

• Base Revenue– The District receives money from the State based on

Average Daily Attendance– Additionally, money is added from the lottery, reserves,

flexibility transfers, and other local/federal allocations• Deductions– The District than deducts from this base to cover costs and

programs• Net Unrestricted Revenue– Remaining amount distributed to schools on a per pupil

basis

Per Pupil AllocationPer Pupil

Allocation

2009-2010 Per Pupil Allocation

Equity in Funding • Requires comparing revenue to the actual cost of what schools would have received under District

staffing formulas:– In the traditional model of funding, schools with the same number of students get the same number

and types of positions– The result is a system that doesn’t let schools decide what mix of positions would best serve their

unique needs.– Additionally, the current system relies on the use of average salaries, which may be creating

inequities for our schools

• Allocation of funds/resources in the new model– Whether a school is under or over allocated really depends on several factors:

School size, the attendance rate, and the actual cost of their staffing– Over allocation: They are receiving more staffing than the revenue generated by their student

population. • 22 schools have been historically over-allocated – of these, 20 have below average enrollment,

highlighting the role school size plays.– Under allocation: Their student population actually generates more revenue than they get in

staffing. • 11 of the 33 schools have been historically under-allocated.

• Over-allocated schools were held harmless for 90% of that overage, while under-allocated schools retain 10% of their difference between revenue and actual expenses. The under-allocated schools are actually supporting the over-allocated schools.

•

What We are Working Towards:

Resources

• California Department of Education, http://www.cde.ca.gov/ds October 13, 2008.

• School Finance Facts, California Budget Project, February 2009

• “Achieving a Transparent Budgeting Process for LAUSD Schools” Powerpoint, LAUSD, September 22, 2009