Title: Board of Trustees:
1Auburn Union School District
2009-10 Proposed Budget
Board of Trustees Lynn Hargrove - President
Clark Gehlbach - Clerk Linda Beasley - Member
Ken Nittler - Member Steve Weaver - Member
Michele Schuetz - Superintendent
2Table of Contents
- A. Introduction to the District Budget
- A1 - Message from the Superintendent 4
- A2 - District History 5
- A3 - Mission Statement and Strategies 6
- A4 - Budget Advisory Committee 7
- A5 - California State Budget 8
- A6 - Budget Development 9
- A7 - Organization of the Budget 10
- A8 - Timeline for Developing the Districts
2009-10 Budget 11 - B. The General Fund/Enrollment/Revenue/Expenses/En
ding Balances - B1 - CBEDS Enrollment History and Projection 13
- B2 - Enrollment History and Projection 14
- B3 - District Revenues, 2009-10 15
- B4 - Unrestricted General Fund Contributions 16
- B5 - State Revenues Subject to Categorical
Flexibility 17 - B6 - General Fund Expenditures, 2009-10 18
- B7 - Certificated Salary Growth, 2005-06 to
2009-10 19 - B8 - Special Education 20
3Table of Contents
- C. Other Funds
- C1 - Cafeteria Fund 35
- C2 - Deferred Maintenance Fund 36
- C3 - Special Reserve for Post-Employment HW
Benefits Fund 37 - C4 - Building Fund 38
- C5 - Capital Facilities Fund 39
- C6 - State School Building Fund 40
- C7 - Special Reserve Fund for Capital Outlay 41
- C8 - Mello Roos Capital Projects Fund 42
- C9 - Mello Roos Debt Service Fund 43
- C10 - Debt Service Fund 44
-
-
- D. Appendices
- D1 - Glossary of Common School Finance Terms 45
4A1 - Message from the Superintendent
- June 2009
- Dear School Community Stakeholders,
- Thank you for your interest in the Auburn Union
School Districts budget. We hope that our
budget format provides you with an understandable
overview of the Districts budget. If you would
like more detailed information on any aspect of
the budget, you may contact Douglas Crancer,
Assistant Superintendent of Business and
Facilities at (530) 885-7242 or
dcrancer_at_auburn.k12.ca.us. The budget is also
posted on the Districts website at
http//www.auburn.k12.ca.us/business/ - It is always the goal of the Auburn Union School
District to provide a challenging and enriched
learning environment and we are committed to a
quality education. A core value of our Board of
Trustees is to maintain the integrity of our
financial future to ensure our capacity to
support a high quality of education. - For the past several years significant declines
in revenue have made it especially difficult to
develop a budget that allocates the resources
necessary to deliver on the hope and promise of
those core values. Over the past 13 years
enrollment has declined in excess of 26. The
District has seen revenue streams commensurate
with that decline. The Auburn Union School
District is faced with the challenging task of
developing a long-term spending plan that is
financially sound. - This budget document presents a scenario for
2009-10 that - Preserves a 3 General Fund reserve for economic
uncertainties (except for the 201 version) - Minimizes annual deficits and create a balanced
budget trend which incorporates all programs as
well as employee compensation - Proactively works at reducing the rate at which
Special Education costs require unrestricted
general fund support - Meet AB1200 requirements
- It is crucial that the District continue to
examine priorities and what future changes will
be made to maintain a fiscally sound budget.
Based on current projections, without an increase
in enrollment or reduction in expenditures, the
District faces deficit spending for 2009-10 and
subsequent years. Based on the current general
purpose fund deficits, the District must reduce
its expenditures by approximately 1.3 to 1.5
million dollars by 2010-11 in order to remain
solvent. - The budget development process encourages input
from all Stakeholders, program coordinators and
the District Budget Advisory Committee, which is
comprised of community members, parents,
certificated and classified staff and
administration. One of the three proposed budget
versions must be adopted by June 30, 2009. The
Board will continue to review budget updates
throughout the year. - As you work with this Budget document, please let
us know if you have suggestions to make this a
more user-friendly format which provides you with
information on the Districts finances. - Sincerely,
- Michele Schuetz, Superintendent
5A2 District History
- In 1848, gold was discovered in Auburn Ravine.
The area quickly developed into a robust mining
and supply camp and became officially known as
Auburn in 1849. The Auburn Union School District
is one of the oldest, continuously operating
school systems in the State of California.
Organized in 1852, it provides education to
students in Kindergarten through eighth grade.
The District serves approximately 64 square miles
located in southeastern Placer County, including
the City of Auburn and the adjacent
unincorporated areas of the County. The District
is located 40 miles northeast of Sacramento on
the western slope of the California High Sierra.
The District educates approximately 2,100
students at three K-5 elementary schools (Auburn
Elementary, Rock Creek and Skyridge), and one
middle school (EV Cain).
6A3 - Mission Statement and Strategies
Core Values
- We believe that
- All students can learn in a challenging, academic
environment where they are inspired to reach
their highest potential. - A safe learning environment is the foundation
from which education grows. - The active participation of families is critical
to the success of students. - The district and the Auburn community are
partners in providing a quality education. As
partners, the relationship requires open
communication and transparency of process, so
that each partner feels a sense of ownership in
the outcome. - We must maintain the integrity of the districts
financial future to ensure capacity to support a
high quality education.
Mission Statement
We provide our students with a rigorous and
well-rounded curriculum that challenges students
to become self-reliant individuals, critical
thinkers and responsible citizens.
7A4 - Budget Advisory Committee
- Board Liaisons Clark Gehlbach
- Ken Nittler
- Superintendent Michele Schuetz
- Staff to the Committee Douglas Crancer
- Parents Kay Bryant, EV Cain
- Tris DeMauri, Rock Creek
- (Chair)
- Marion McKay, Auburn Elementary
- Shannon Breckenridge Anne Brown, Skyridge
-
- AUTA Mark Maxwell Karen Enghusen
- CSEA Roy Price
- Administration Susan Flint, EV Cain
- The District performs multiple tasks which ensure
that its financial resources are responsibly
allocated and managed and that all groups within
the District have the opportunity to be involved
in determining how money is allocated. Toward
this purpose, the District has established a
standing Budget Advisory Committee (BAC). - The BAC is represented by
- Parents
- Employee Groups
- Administrators
- Community Members
- The Committee functions to develop an
understanding of the Districts financial
position as well as to serve as an advisory
resource to the Board of Trustees and a liaison
between the District and its stakeholders.
Committee meetings are open to all interested
parties. - The Board of Trustees directed the Budget
Advisory Committee to develop options for
addressing projected budget shortfalls in 2009-10
and future years. The BAC was able to present its
findings to the Board in a timely fashion, which
enabled the District to include its findings in
the Districts Second Interim report and proposed
budgets. - The Board members, Superintendent and Staff to
the Committee are non-voting members.
Non-voting
8A5 California State Budget
- During this past year, local educational agencies
(LEAs) across the state have felt the impact of
the decline of Californias economy as
illustrated by below - Californias Unemployment Rate is 11.2
- Home building fell for the 4th consecutive year
- Expected to be down 24 in 2009
- Personal income is projected to decline 1
- First time declined since 1938
- This collapse of the state economy has driven
state tax revenues down. Following the latest
state budget adoption in Californias history
last September, the February enactment of the
2009-10 budget was by far the earliest. - However, since the enactment of the 2009-10
Budget Act on February 20th, baseline revenues
have further decreased. It was clear that the
budget was immediately in need of substantial
amendment.
- In response to Californias further decline, the
already reduced 17 month budget, needs to be
reduced by an additional 24.3 billion. In
response to the projected 24.3 billion
shortfall, the major budget-balancing proposals
are as follows - 16 billion in cuts and savings
- 7.2 billion from Proposition 98
- 2.8 billion from revenue accelerations fees
- 2 billion from local government borrowing
- 3.5 billion from program consolidations and
fund shifts - As a result, K-12 has experienced 3.9 billion of
additional cuts from the February budget to the
Governors May Revision.
9Introduction to the District Budget
A-6 Budget Development
A school district budget is the document that
authorizes the district to accept revenues and
incur expenditures to deliver its educational
program. The budget is a statement made by a
district board of trustees regarding what it
holds as important to the education of its
students. It is, therefore, also an effective
planning document, enabling both the board and
staff to identify expenditure programs and the
revenues that support them, and to plan the most
effective delivery system to implement programs.
The General Fund
- It is in the General Fund that the educational
program of the District is revealed. Revenues
are made clear and educational priorities are
reflected in the programs the District provides
from those revenues. The information required to
build the Districts General Fund budget consists
primarily of enrollment and attendance data,
staffing requirements per formula, and historical
and prospective assessment of revenues and
expenditures. This information is compiled on
the following pages, and is reflected in the
budget assumptions for the coming fiscal and
school year.
10Introduction to the District Budget (cont.)
A-7 Organization of the Budget
For ease of administration, school district
budgets are divided into funds. The Auburn Union
School District uses the following funds
11Organization of the Budget (cont.)
A-8 Timeline for Developing the Districts Budget
Because of the many revenue sources and the
complex pattern of making expenditures in public
school districts, the planning required for an
annual budget normally must begin early in the
preceding year. In the Auburn Union School
District, preparations for planning the 2009-10
school year began in February 2009. Each year
the preliminary budget is built from zero by
calculating revenues and expenditures based on
assumptions. Revenues and expenditures are not
rolled forward each category of income and
expense is reviewed for inclusion or exclusion
from the budget. The preliminary budget is
generally created in February and revised as new
information becomes known. Normally, the final
revision is made after the Governor makes known
his May revision of the California State Budget
for the upcoming year and prior to being proposed
for adoption by the Board in June. However, with
the early state budget adoption, a preliminary
budget was not necessary. School districts must
adopt a budget by June 30 whether or not the
State has adopted their spending plan. If
material changes are required, revisions to the
District budget must be made within 45 days of
the adoption of a State budget.
12A8 - Timeline for Developing the Districts
2009-10 Budget
The following calendar represents an approximate
timeline for the 2008-09 and 2009-10 budget that
is used in the District
13B1 - CBEDS Enrollment History and Projections
Summary of CBEDS Data from 1996-97 through 2009-10
P Projected
14B2 Enrollment History and Projection
P Projected
15B3 - District Revenues 2009-10
- The largest portion of Auburn Union School
Districts income is called unrestricted because
it can be expended as determined by the local
agency for general educational purposes. On
average, California school districts received
more than two-thirds of their income as
unrestricted. The remainder of the income is
restricted, categorical state and federal income,
and as such can be expended only for selected
purposes as determined by the granting agency. - The largest restricted programs in California are
Special Education and Home to School
Transportation. For each of these programs, local
agencies are obligated to expend the income for
these program purposes and, in some cases for
very specific expenditures as determined by
California or federal law. - For special education, including the home to
school transportation of those students, Auburn
Union School District expends more than
3,000,000 to meet the obligations of the program
as well as state and federal law. The
combination of state and federal special
education income is significantly less than the
cost of the program causing the use of
unrestricted, or general-purpose income, to
address the full obligations of the program. The
difference between revenues and expenses is
anticipated to be (1.9 million) or 56 of the
total cost. - While revenues to the district for Home to School
Transportation do not equal the costs of the
program, the District does charge fees to offset
this difference.
More than 75 of the Districts income can be
expended as determined by the local agency
Transportation 3
Other Categoricals, Restricted 8
Special Education 10
Unrestricted 79
Unrestricted and Restricted Revenues, 2009-10
16B4 Unrestricted General Fund Contributions
- The budget includes the following transfers of
unrestricted resources to restricted programs to
cover restricted program expenditures in excess
of revenues (encroachment)
Description 2008-09
2009-10 Auburn Youth Soccer Club
5,000 5,000 Restricted Maintenance
475,156 450,000 Special Education
Federal 262,117 0 Special Education
Preschool 150,980 0 Special Education
State 1,041,605 1,678,800 Sports
11,000 11,000 Theater
3,000 3,000 Transportation SD/OI
283,775 250,000 Total Contributions
2,232,633 2,397,800 Amount required is only
1 of General Fund Expenditures that amount to
161,000.
17B5 State Revenues Subject to Categorical
Flexibility
- The Illustrated below are the estimated amounts
that the District expects to receive for the
following programs, which will be accounted for
as unrestricted programs beginning in 2009-10.
Description 2008-09
2009-10 Art Music Block Grant (B/G)
34,000 26,000 Community Based English
Tutoring 10,000 9,000 Gifted
Talented Education (GATE) 18,000
16,000 IMFRP (Textbook Funds) 155,000
116,000 Peer Assistance Review (PAR)
16,000 10,000 Professional Development
B/G 150,000 128,000 School Library
Improvement B/G 289,000
246,000 School Safety B/G 12,000
6,000 Supplemental School Counseling
35,000 30,000 Targeted Instructional
Improvement B/G 30,000
22,000 Revenues Subject to Flexibility
Provision 749,000 609,000 Less
Appropriations 729,000 430,000 Net
Contribution 20,000 179,000
18B6 - General Fund Expenditures 2009-10
- As a a service industry, most of the expenditures
of the district are salaries and benefits. In
the Auburn Union School District, over 80 of the
Districts budgeted expenditures are for the
services of District employees. - Employee salaries are divided into four
categories certificated, classified,
confidential and management. The certificated
employees include teachers, nurses,
psychologists, or others who provide services
that require credentials from the State of
California. Management employees include
principals, assistant principals, supervisors and
the Superintendent. - Classified employee salaries include all of the
support personnel in the District, including
salaries for positions such as secretaries,
account clerks, instructional aides, maintenance
and custodial personnel. - Confidential employees include positions such as
administrative assistant to the Superintendent,
payroll technician and accountant. - The health and welfare benefits of the District
represent nearly 18 of the budget and include
expenses for retirement, health and welfare and
workers compensation expenses.
Over 80 of the Districts total expenditures are
committed to salary and benefits
Books Supplies2
Other Outgo 4
Operating 13
Benefits18
Certificated45
Administration 7
Classified11
General Fund Expenditures (In Million )
General Fund Expenditures, 2009-10
Certificated 7.2 Classified 1.8 Management and
Confidential 1.1 Employee Benefits 3.0 Books and
Supplies .3 Operating 2.0 Other .7 Total
Expenditures 16.1
19B7 - Certificated Salary Growth, 2005-06 to
2009-10
Currently, the District is expected to sustain
2009-10 salary levels from deficited general
purpose funds that are comparable to the general
purpose funding that the District received during
2005-06.
20B8 - Special Education
- School districts throughout the state struggle
with funding the costs of serving students with
special needs. The enactment of the Individuals
with Disabilities Education Act (IDEA) codified
the constitutions guarantee of a free
appropriate public education that meets a
students education and related service needs in
the least restrictive environment. Special
Education is an integral part of the total public
education system, providing an education that
promotes maximum interaction between children
with disabilities and children who are not
disabled that is appropriate to the needs of
both. - In 1997, California legislators passed Assembly
Bill 602 which completely changed the funding
structure for Special Education from one based on
a personnel service unit to a population-based
method. Special Education funds are allocated
according to the total student population in a
Special Education Local Planning Area (SELPA)
rather than on the number of identified special
education students. SELPAs are responsible for
allocating funds for the services provided to the
individual eligible students. Expenditures for
special education programs remain subject to
state audit under this law. - In addition to the standard Revenue Limit income
per ADA, the Auburn Union School District is
expected to receive approximately 1,483,000 in a
combination of state and federal sources. While
anticipated expenses are expected to decrease,
there is still a gap between expected revenue and
expense of more than 1.9 million. - The following chart gives a history of special
education revenues and expenditures for the
Auburn Union School District from 2003-04 to
2009-10
21Special Education (cont.)
22Special Education Budget Projections
- REVENUE 2009-10 Funding sources for the
Districts special education program, including
transportation, are as follows - State aid under AB602 including base, COLA,
growth, equity, special disabilities adjustment,
regionalized services/program specialists,
high-cost Non-Public School funds and low
incidence funds - Federal local assistance (PL 94-142)
- Federal Preschool/PPPIP
- AARA Stimulus Funds
- Home to School Transportation revenue for
students with transportation in their IEP - Projected revenues for school year
2009-101,483,223.
23Special Education
- EXPENDITURES
- The Auburn Union School District serves
approximately 286 students with special needs.
Our staff provides support to students with a
variety of disabilities. All students have an
assigned case manager to oversee their daily
support, interface with mainstream teachers,
provide an annual review of progress/present
levels, the development of goals and objectives
for the IEP and make recommendations for
placement and appropriate service provisions. -
- We continue to meet the changing needs of our
students with learning center models and
classroom support for students who learn using
multiple modalities and benefit from
individualized instruction opportunities. Our
changing population of students includes many
students who are on the Autism Spectrum and we
are looking at unique ways to better support
their social cognitive development. - Finally, our students who have the highest
support needs are served in a variety of programs
throughout the county or in non-public schools. - Projected expense for school year 2009-10
3,412,023 -
Expenditures
24Special Education Restricted General Fund
(cont.)
The cost of providing services to our students
with special needs has increased dramatically
over the years. It is unfortunate that the
Federal Government has not funded the Individuals
with Disabilities Act (IDEA) as promised at
40. This shortfall in dedicated funding as well
as the rapidly rising costs of providing services
has drastically increased the shortfall between
revenue and expense
P Projected
25B9 - Assumptions for the 2009-10 Budget
- During the months of May and June of each year,
the school district finalizes its budget for the
coming year. In order to project the budget, a
series of assumptions about district conditions
must be determined. These assumptions are then
inserted into state and district formulas in
order to determine next years budget. - The accuracy of a districts budget projection is
only as good as the assumptions that are used in
developing next years budget numbers. As a
consequence, the assumptions--at least the
primary ones--have to be carefully considered in
evaluating the accuracy of next years income and
expense. - Since it is impossible to accurately predict all
of the assumptions that are needed in budget
development, the Auburn Union District updates
its budget--and the assumptions--three times
after the original budget is adopted. The
assumptions are updated with a revision that
occurs within 45 days after the adoption of the
state budget and with two interim reports that
are delivered to the Board of Trustees in
December and March of each fiscal year.
26B9 - Assumptions for the 2009-10 Budget (cont.)
- General Assumptions
- Average daily attendance (ADA) for the District
(excluding COE programs that amount to 64 ADA) is
estimated to be 1,982. However, the District will
receive funding based on 2008-09 regular ADA,
which is estimated to be funded at 2,032 ADA. - The class size reduction program revenue for
ongoing operations reflects the Districts
intention to implement a K-3 class size reduction
program at the following ratios - At a maximum ratio of 241, the District will be
funded between 856 and 1,071 (depending on
class size). The District will only get funded
for the first 20 pupils. - At a maximum ratio of 281, the District will be
funded between 750 and 1,071 (depending on
class size). The District will only get funded
for the first 20 pupils. - At a maximum ratio of 201, the District will be
funded at 1,071. - Routine Restricted Maintenance contribution at
2.85, and no Deferred Maintenance Match. - Expect to transfer 312,000 from the Districts
HW Post-Employment Benefit Fund (20). - Revenue
- Statutory COLA for general purpose funds is
4.25 however total funds will be deficited by
approximately 18 - Funded at the general purpose
level of 2005-06 - Lottery revenue is estimated to be 109.50 per
ADA for unrestricted funds and 11.50 per ADA for
restricted funds - Expected to receive 960,000 of federal stimulus
however after taking into account additional
general purpose and SELPA revenue loss, the
District will only receive an additional
167,000. - As illustrated on page 17 (B5), various state
categorical funds will receive a 20 cut from
2007-08 and will be considered unrestricted funds
through 2012-13.
The Districts budget projections are only as
good as the assumptions that are used in
developing the Districts revenues and expenses
27B9 - Assumptions for the 2009-10 Budget (cont.)
- Expenses at 241 ratio
- Step and column costs (salary benefits) are
budgeted for 2009-10 and subsequent years. - Certificated - 158,000 (2.0)
- Classified - 61,500 (3.0) 69,000
for all Funds - Management Conf. - 6,500 (0.5)
7,000 for all Funds - Illustrated below are the salary benefit costs
(savings) of a 1 salary increase (decrease) - Certificated - 79,000
- Classified - 20,500 23,000 for all
Funds - Management Conf. - 12,500 13,000 for
all Funds - Payroll taxes are estimated to remain constant
for 2009-10 - Unrestricted supplies and other operating costs
reflect 2008-09 adopted budget (as a whole) - One-time expenses from 2008-09 have been removed
from 2009-10 budget - Developer Fees will continue to be dedicated to
the repayment of Districts Certificates of
Participation (COPs) - As result of the work performed by the Budget
Advisory Committee, the following expenditure
cuts have been proposed and adopted by the Board
of Trustees - Net Categorical Fund Transfers into the
unrestricted portion of the general fund -
179,000 Release certificated staff as a result
of operating class size reduction at 241 -
330,000 - Discontinue grades six through eight at
Skyridge School - 153,000 - Eliminate one period of Spanish - 17,000
- Eliminate / Reduce Clerk time through-out the
District - 65,000 - Reduce Noon Duty Supervisor and Custodial Time
- 47,000
The Districts budget projections are only as
good as the assumptions that are used in
developing the districts revenues and expenses
28B9 - Assumptions for the 2009-10 Budget and
Multi-Year Projections
Average Daily Attendance Revenues
29B9 - Assumptions for Multi-Year Projections
Staffing Other Expenditures
- Step column costs for salary and benefits are
included for subsequent years - Assumes a 2.0 FTE decrease in certificated
positions for each subsequent year - Expect a decline of restricted salaries for
2011-12 as a result of fully expending stimulus
funds in prior years - Unrestricted supplies and other operating
expenditures are estimated to reflect no changes
from the 2009-10 proposed budget - Restricted other operating expenditures are
estimated to decrease by approximately 5 each
year - Negotiations with employee groups have not been
settled for 2008-09 and beyond - Although District is taking back some special
education services, the District is budgeting no
change in the bill-back for PCOE special
education program - Other than federal stimulus funds, no restricted
deferred revenues and planned expenditure
carryovers are included in the budget
30B10 - Multi-Year Projection Report at 241
31B10 - Multi-Year Projection Report at 281
32B10 - Multi-Year Projection Report at 201
33B11 Summary of Estimated Deficits Fund
Balances
- Estimated Deficits
- Fiscal Year 2009-10
- 241 717,616
- 281 634,183
- 201 816,772
- Fiscal Year 2010-11
- 241 1,430,332
- 281 1,277,071 1,343,371
- 201 1,467,056 1,533,356
- Fiscal Year 2011-12
- 241 1,434,543
- 281 1,279,332 1,347,532
- 201 1,470,217 1,538,417
- Estimated Ending Fund Balances
- Fiscal Year 2009-10
- 241 515,963 (3 Economic Uncertainty Met)
- 281 599,396 (3 Economic Uncertainty Met)
- 201 416,807 (3 Economic Uncertainty Not Met)
- Fiscal Year 2010-11
- 241 (914,369)
- 281 (677,675) ( 743,975)
- 201 (1,050,249) (1,116,549)
- Fiscal Year 2011-12
- 241 (2,348,912)
- 281 (1,957,007) (2,091,507)
- 201 (2,520,466) (2,654,966)
34B12 Subsequent Budget Factors
- Recently, the Joint Budget Conference
Committee made the final votes to close the
hearing on the state budget. This sets the stage
for the state budget bills to be presented to the
entire Senate and Assembly for a floor vote. For
the most part, the Conference Committee adopted a
majority of the reductions from the Governors
May Revision, which all three proposed budgets
take into account. Illustrated below are various
components not in the proposed budgets that would
effect Auburn Union School District - Authority for school districts to reduce the
number of instructional days to 175 - Any corresponding salary adjustments must be
approved by AUTA CSEA - Allow school districts to sell surplus property
and use the proceeds for General Fund purposes - Reduce Home-to-School Funds by 20 (not 65 as
previously reported), and be included with the
revenues that are subject to categorical
flexibility - Suspend requirements that school districts
purchase newly adopted instructional materials
for an additional three years, and prohibits the
State Board from initiating new adoptions during
this period - Change the minimum state requirement for reserves
for economic uncertainty to one-third of the
currently required level for 2009-10 -
- In addition, this past week a proposal to change
the class size reduction program has begun to
gain steam. The proposal in essence, would
increase the cap of fully implementing class size
reduction to a ratio of 251 with harsher
deductions after the 25th student. - Today, Legislative Democrats failed in their
attempt to pass a Budget-balancing package that
included 11 billion in spending cuts. The
pressure to plug the gaping 24 billion gap
increased as State Controller John Chiang issued
a press release stating that, without immediate
action on the Budget, his office would begin
issuing IOUs on July 2. Luckily, payment
categories protected by the State Constitution,
federal law, and court decisions will receive
regular payments in July, including K-12 revenue
limits, categorical programs, and the State
Teachers' Retirement System. All other General
Fund payments will receive IOUs.
35C1 Cafeteria Fund (13)
36C2 Deferred Maintenance Fund (14)
37C3 Special Reserve for Post-Employment HW
Benefits (20)
38C4 Building Fund (21)
39C5 Capital Facilities Fund / Developer Fees (25)
40C6 State School Building Program (Proposition
1A) (35)
41C7 Special Reserve Fund for Capital Outlay (40)
42C8 Mello Roos Capital Projects Fund (49)
43C9 Mello Roos Debt Service Fund (52)
44C10 Debt Service Fund (56)
45D1 - Appendix
- Glossary of Common School Finance Terms
-
- ADA Average daily attendance. There are several
kinds of attendance, each counted in different
ways. For regular attendance, ADA is equal to
the average number of pupils actually attending
classes who are enrolled for at least the minimum
school day. In summer school attendance is
counted by hours and is funded based on the
actual hours attended. Attendance is counted
every day of the school year and is reported to
the California Department of Education three
times a year (see Attendance Reports). -
- AB 1200 Reference to AB 1200 (Chapter 1213/1991)
that imposed major fiscal accountability controls
on school districts and county offices of
education, by establishing significant
administrative hurdles and obligations for agency
budgets and fiscal practices. See especially
Education Code Section 1240 et sec. and 42131 et
sec. -
- Accrual Basis Accounting Transactions are
recorded when they have been reduced to a legal
or contractual right or obligation to receive or
pay out cash or other resources. School
districts in California use a modified accrual
basis of accounting where revenues are recognized
when they become measurable and available to
finance expenditures. -
Apportionment State aid given to a school
district or county office of education.
Apportionments are calculated three times for
each school year. The First Principal
Apportionment (P-1) is calculated in February of
the school year corresponding to the P-1 ADA (see
Attendance Reports) the Second Principal
Apportionment (P-2) is calculated in June
corresponding to the P-2 ADA and, the annual
recalculation of the apportionment is made in
February following the school year and is based
on P-2 ADA, except for programs where the annual
count of ADA is used. Appropriation Bill A bill
before the Legislature authorizing the
expenditure of public money and stipulating the
amount, manner and purpose for the expenditure
items. Appropriation For Contingencies That
portion of the current fiscal year's budget that
is not appropriated for any specific purpose but
is held subject to intrabudget transfer i.e.
transfer to other specific appropriation accounts
as needed during the fiscal year.
46D1 - Appendix
- Attendance Reports Each school district reports
its attendance three times during a school year.
The First Principal Apportionment ADA, called the
P-1 ADA or the P-1 count, is counted from July 1
through the last school month ending on or before
December 31 of a school year. The Second
Principal Apportionment ADA, called the P-2 ADA,
is counted from July 1 through the last school
month ending on or before April 15 of a school
year. Fiscal or annual ADA is based on the count
from July 1 through June 30. The final
recalculation of the apportionment is based on
the P-2 ADA except for adult education programs,
regional occupational centers and programs and
nonpublic school funding, all of which use the
annual count of ADA. Also, under certain
circumstances when a district has a very large
influx of migrant students in the spring, a
district may request the use of annual ADA in
lieu of P-2 ADA. - Base Revenue Limit See Revenue Limit.
- Categorical Aid Funds from the state or federal
government granted to qualifying school districts
for specialized programs regulated and controlled
by federal or state law or regulation. Examples
include programs for children with special
needs, such as special education special
programs, such as the School Improvement Program
or, special purposes, such as transportation.
Expenditure of most categorical aid is restricted
to its particular purpose. The funds are granted
to districts in addition to their revenue limits. - CBEDS California Basic Education Data System --
the statewide system of collecting enrollment,
staffing, and salary data from all school
districts on an "Information Day" each October. - Certificated Personnel School employees who hold
positions for which a credential is required by
the state -- teachers, librarians, counselors,
and most administrators. - Classified Personnel School employees who hold
positions that do not require a credential, like
aides, custodians, etc. -
- Class Size Penalties The penalties imposed on
school districts that have classes in excess of
certain maximum sizes. Class size penalties
result in a reduction in ADA which, in turn,
results in a loss in revenue limit income. (See
Education Code Section 41376). -
47D1 - Appendix
- Consumer Price Index (CPI) A measure of the cost
of living compiled by the United States Bureau of
Labor Statistics. Separate indices of inflation
are calculated regularly for the United States,
California, some regions within California, and
selected cities. The CPI is one of several
measures of economic change. - Cost-of-Living Adjustment (COLA) An increase in
funding for government programs, including
revenue limits or categorical programs. Current
law ties the COLA for most education programs to
the annual percentage change in the "Implicit
Price Deflator" for State and Local Governments
-- a government price index. (See Education Code
Section 42238.1.) -
- Criteria and Standards Local district budgets
must meet state-adopted provisions of "criteria
and standards." These provisions establish
minimum fiscal standards that school districts,
county offices of education and the State use to
monitor district fiscal solvency and
accountability. (See Education Code Sections
33127 et sec.)
Declining Enrollment Adjustment A formula that
cushions the drop in income in a district with a
shrinking student population. Under current law,
districts can count the higher of either last or
current year ADA. Deficit Factor When an
appropriation to the State School Fund for
revenue limits -- or for any specific categorical
program -- is insufficient to pay all claims for
state aid, a deficit factor is applied to reduce
the allocation of state aid to the amount
appropriated. Encroachment The expenditure of
school districts' general purpose funds in
support of a categorical program, i.e. the
categorical expense encroaches into the
district's general fund for support.
Encroachment occurs in most districts and county
offices that provide special education and
transportation. Other encroachment is caused by
deficit factors or local decisions to allocate
general-purpose funds to special purpose
programs.
48D1 - Appendix
- Encumbrances Obligations in the form of purchase
orders, contracts, salaries, and other
commitments chargeable to an appropriations for
which a part of the appropriation is reserved. -
- Ending Balance Generally a reference to a school
districts net ending balance of their general
fund. The ending balance is divided into
restricted and unrestricted funds that a school
district has remaining at the end of a fiscal
year. A school district must have a Reserve for
Economic Uncertainties within their ending
balance which meet the criteria and standards
minimums as established by the State Board of
Education. - Equalization Aid The extra state aid provided in
some years -- such as 2006-07 -- to a low revenue
district to increase its base revenue limit
toward the statewide average. -
- ERAF Education Revenue Augmentation Fund -- the
fund used to collect the property taxes shifted
from cities, the county and special districts
within each county prior to their distribution to
K-14 school agencies. -
Full-Time Equivalent (FTE) The ratio of time
expended in a part-time position to that of a
full-time position. The ratio is derived by
dividing the amount of employed time required in
the part-time position by the amount of employed
time required in a corresponding full-time
position. Gann Spending Limit A ceiling, or
limit, on each year's appropriations of tax
dollars by the state, cities, counties, school
districts, and special districts. Proposition 4,
an initiative passed in November 1979, added
appropriations limits in Article XIIIB of the
California Constitution. Using 1978-79 as a base
year, subsequent years' limits have been adjusted
for (1) an inflation increase equal to the
change in the Consumer Price Index or per capita
personal income, whichever is smaller and, (2)
the change in population or, for school agencies,
change in ADA. Proposition 111, adopted in June
1990, amended the Gann limit inflation factor to
be based only on the change in per capita
personal income.
49D1 - Appendix
- Implicit Price Deflator See Cost-of-Living
Adjustment. - Indirect Expense and Overhead Those elements of
indirect cost necessary in the operation of the
district or in the performance of a service that
are of such nature that the amount applicable to
each accounting unit cannot be separately
identified. Examples of indirect costs include
expenses for the Board of Education,
superintendent and the business office. - Individualized Education Program (IEP) A written
agreement between a school district and parents
or guardians of a handicapped child specifying an
educational program tailored to the needs of the
child, in accordance with PL 94-142 regulations.
The program is comprised of a placement team
consisting of a certified district employee who
is qualified to supervise special education, the
child's teacher, one or both parents, the child,
if appropriate, and other individuals at the
discretion of the parent or school. The program
must include a statement of the child's present
levels of educational performance, a statement of
annual goals and short term instructional
objectives, a statement of the specific special
education and related services to be provided to
the child, the extent to which the child will
participate in regular education programs, the
projected dates for starting services,
appropriate objective criteria, evaluation
procedures, and schedules for determining, on at
least an annual basis, whether the short term
instructional objectives are being achieved.
- Least Restrictive Environment Federal law
requires handicapped students be placed so that
they can, to the extent appropriate to their
individual needs and abilities, be educated with
non-handicapped students. - Mandated Costs School district expenses that
occur because of federal or state laws, decisions
of state or federal courts, federal or state
administrative regulations. See California
Constitution, Article XIIIB, Section 6. - Maintenance Factor See Proposition 98.
-
- Miscellaneous Funds Local revenues received from
royalties, bonuses, and other payments in lieu of
taxes. Fifty percent of such revenues are used
as an offset to state aid in the revenue limit
formulas. -
- PERB Public Employment Relations Board. Five
persons appointed by the Governor to regulate
collective bargaining between site and school
employers and employee organizations. (See
Government Code Sections 3541, et al.) - PERS Public Employees' Retirement System. State
law requires that classified employees, their
employer, and the state contribute to this
retirement fund. The fund is the largest public
pension fund in the world with over 150 billion
in investments.
50D1 - Appendix
- Proposition 13 An initiative amendment passed in
June 1978 adding Article XIII A to the California
Constitution. Tax rates on secured property are
restricted to no more than 1 of full cash value.
Proposition 13 also defined assessed value and
required a two-thirds vote to change existing or
levy other non property or special taxes. -
- Proposition 98 An initiative adopted in 1988 and
then amended by Proposition 111 in 1990
Proposition 98 contains three major provisions
(1) a minimum level of state funding for K-14
school agencies (unless suspended by the
Legislature) (2) a formula for allocating any
state tax revenues in excess of the state's Gann
Limit and, (3) the requirement that a School
Accountability Report Card be prepared for every
school. The minimum funding base is set equal to
the greater of the amount of state aid determined
by two formulas, commonly called "Test 1" and
"Test 2" -- unless an alternative formula, known
as "Test 3," applies. -
- Test 1 originally provided that K-14 school
agencies shall receive at least 40.319 of state
general fund tax revenues in each year, the same
percentage as was appropriated for K-14 school
agencies in 1986-87. Due to the shift in
property taxes from local governments to K-14
agencies, the "Test 1" percentage has been reset
at 34.0.
- "Test 2provides that K-14 school agencies shall
receive at least the same amount of combined
state aid and local tax dollars as was received
in the prior year, adjusted for the statewide
growth in K-12 ADA and an inflation factor equal
to the annual change n per capita personal
income. - "Test 3" only applies in years in which the
annual percentage change in per capita state
general fund tax revenues plus 1/2 is lower than
the "Test 2" inflation factor (i.e. change in per
capita personal income), and in this case the
"Test 2" inflation factor is reduced to the
annual percentage change in per capita state
general fund tax revenues plus 1/2. - One of the provisions of Proposition 98/111 is
that if the minimum funding level is reduced due
either to "Test 3" or the suspension of the
minimum funding level by the Legislature and
Governor, a "maintenance factor" is calculated as
the amount of the funding reduction. In
subsequent years when state taxes grow quickly,
this "maintenance factor" is added to the minimum
funding level until the funding base is fully
restored.
51D1 - Appendix
Purchase Order An encumbrance document that
shows the vendor from whom a purchase is being
made, what is being purchased by the school
district, the amount of the purchase, the fund
from which the purchase is being made (general,
building or bond fund), an accounting code to
which the purchase shall be applied, the
signature or initial approval of the designed
central office personnel responsible for
approving the ordering of goods. Reduction-in-Fo
rce (RIF) The process whereby employment is
terminated because of a need to reduce the staff
rather than because of any performance
inadequacies of the employee. Reserves Funds
set aside in a school district budget to provide
for estimated future expenditures or to offset
future losses, for working capital, or for other
purposes. Revenue Limit The amount of revenue
that a district can collect annually for general
purposes from local property taxes and state aid.
The revenue limit is composed of a base revenue
limit -- a basic education amount per unit of ADA
computed by formula each year from the previous
year's base revenue limit -- and any of the
number of revenue limit adjustments that are
computed anew each year. The total revenue
limit of a school district is generally
determined by multiplying the district's P-2 ADA
times the base revenue limit, adding the
applicable revenue limit adjustments and applying
a deficit factor.
- Revolving Cash Fund A stated amount of money
used primarily for emergency or small or sundry
disbursements and reimbursed periodically through
properly documented expenditures, which are
summarized and charged to proper accounting
classifications. -
- SB 90 Reference to Senate Bill 90/1972 that
established the revenue limit system for funding
school districts. The first revenue limit amount
was determined by dividing the district's 1972-73
state and local income by that year's ADA. This
per-ADA amount is the historical base for all
subsequent revenue limit calculations. -
- SB 813 Reference to Senate Bill 813/1983 that
provided a series of education "reforms" in
funding calculations. Longer day, longer year,
mentor teachers, and beginning teacher salary
adjustments are a few of the programs implemented
by this 1983 legislation.
52D1 - Appendix
- at that time was in compliance with the earlier
Court order. The case was subsequently appealed
to the Appellate Court that upheld the Superior
Court ruling. In March 1989, all of the
plaintiffs in the case agreed to dismiss their
appeals, thereby settling Serrano as a legal
issue. - State Allocation Board (SAB) The regulatory
agency that controls most state-aided capital
outlay and deferred maintenance projects and
distributes funds for them. -
- State School Fund Each year the state
appropriates money to this fund, which is then
used to make state aid payments to school
districts. Section A of the State School Fund is
for K-12 education and Section B is for community
college education. - STRS The State Teachers' Retirement System,
funded by certificated employees, their employer
and the state. -
- Test 1/Test 2/Test 3 See Proposition 98.
SACS Standardized Account Code Structure is the
method for school agencies to account for their
revenue and expenditures. Districts will use a
22-digit accounting record that will allow
agencies to track costs by resource, program goal
and function as well as by object code. Scope
of Bargaining The range of subjects that are
negotiated between school districts and employee
organizations during the collective bargaining
process. Scope includes matters relating to
wages, hours, and working conditions as defined
in the government code. PERB and the courts are
responsible for interpreting disputes about
scope. Serrano Decision In 1974, the California
Superior Court in Los Angeles County ruled in the
Serrano v. Priest case that school district
revenues in California depended so heavily on
local property taxes that students in districts
with a low assessed value per pupil were denied
an equal educational opportunity in violation of
the "Equal Protection" clause of the California
Constitution. This ruling established certain
standards under which the school finance system
would be constitutional and was upheld by the
California Supreme Court in 1976. In 1983, the
California Superior Court in Los Angeles County
ruled that the system of school finance in effect
53D1 - Appendix
- Unduplicated Count The number of pupils
receiving special education or special services
under the Master Plan for Special Education on
the census dates of December 1 and April 1. Even
though a pupil may receive multiple services,
each pupil is counted only once in the
unduplicated count. -
- Unencumbered Balance That portion of an
appropriation or allotment not yet expended or
obligated. -
- Unsecured Roll That portion of assessed property
that is movable, such as boats, planes, etc. -
- Waivers Permission from the State Board of
Education -- or, in some cases, from the
Superintendent of Public Instruction -- to set
aside the requirements of an Education Code
provision upon the request of a school district.
(See Education Code Section 33050.)