The New and Improved State Budget for K12 Education for 200910 Presented to the Twin Rivers Board of

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The New and Improved State Budget for K-12
Education for 2009-10Presented to the Twin
Rivers Board of TrusteesSeptember 1,
2009Rob BallAssociate Superintendent
Business Support Services
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Major Changes from the May Revision to the Final
Budget
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• More categorical flexibility is provided
• List of ending fund balance program sweeps is
  broadened to include
• Adult Education
• Deferred Maintenance
• Transportation
• California High School Exit Exam (CAHSEE)
• Targeted Instructional Improvement Grant (TIIG)
• Instructional Materials
• Textbook adoptions are deferred for five years
• Shortened school-year option adopted (175 days)
• Routine restricted maintenance contribution
  reduced to zero

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Major Changes from the May Revision to the Final
Budget
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• Home-to-school transportation funding is restored
  to 80 of prior-year funding level
• Governors May proposal to cut program by 65 is
  rejected
• All education mandates are deferred
• Governors May proposal to fund three education
  mandates was not adopted
• California Work Opportunity and Responsibility to
  Kids (CalWORKs) funding remains intact
• Governors May proposal to eliminate program is
  rejected
• Eliminated non-Proposition 98 QEIA funding is
  tweaked
• Districts revenue limit funds are redirected to
  QEIA and the program is extended one additional
  year
• Maintenance factor is clarified
• Schools are entitled to 11.2 million in out
  years (when there is money)
• Base year for ADA-based or selected Tier III
  categorical programs is changed to 2007-08 from
  2006-07

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Per-ADA Revenue Volatility
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Revenue Limit Deficit Factors
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Proposition 98 and Categorical Sweeps
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• The Governors May Revision indicated that the
  2008-09 minimum guarantee had fallen, creating a
  1.6 billion overappropriation
• The Legislature did not reduce 2008-09 funding
  prior to the close of the 2008-09 fiscal year,
  which appeared to foreclose the opportunity to
  recapture the 1.6 billion overappropriation
• However, the Legislature and the Governor
  ultimately agreed on a scheme that
• Swept 1.6 billion in unallocated categorical
  funds and reverted this sum to the states
  General Fund
• Restored the same amount, less funding for High
  Priority School Grants, to every school district
  in 2009-10, making these funds available to cover
  2008-09 expenses
• Cut 250 (est.) per 2008-09 Second Principal
  Apportionment (P-2) ADA from each local
  educational agencys (LEAs) revenue limit
  entitlement in 2009-10

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Undeficited Revenue Limit Example
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2008-09 Deficit Applied
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• Apply 2008-09 deficit of11.428 to our
  undeficited2008-09 revenue limit (RL)per ADA

Twin Rivers USD
Funded RL 6,949 x (1.0 0.11428) 6,949
x 0.88527 6,152
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2008-09 Deficit Applied
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• Apply 2008-09 deficit of7.844 to our
  undeficited2008-09 revenue limit (RL)per ADA

Twin Rivers USD
Funded RL 6,949 x (1.0 0.07844) 6,949
x 0.92156 6,404 6,404 - 6,152 252
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2009-10 Deficit Applied
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• Apply 2009-10 deficit factorof 17.967 to our
  undeficited2009-10 RL per ADA

Twin Rivers USD
Funded RL 7,210 x (1.0 0.17967) 7,210
x 0.82033 5,915
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Impact of One-Time Revenue Limit Reduction
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• Apply 2009-10 deficit factorof 18.355 to our
  undeficited2009-10 RL per ADA

One-Time Cut
Twin Rivers USD
Funded RL 7,210 x (1.0 0.18355) 7,210
x 0.81645 5,887 5,887 - 250 5,637
5,637 - 5,915 (278)
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Two-Year Impact of Revenue Limit Cuts
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• The 2008-09 and 2009-10 Budget revisions cut
  general purpose revenue limit funding by more
  than 22 from the statutory level for the average
  district!
• Funding will be 983 lower in 2009-10 than in
  2007-08 for the District (6,620 - 5,637)
• The 2009-10 Budget revision does not fund the
  statutory COLAs for both 2008-09 and 2009-10,
  which together total 590 per ADA for unified
  districts
• Twin Rivers will receive 1,573 less per ADA
  (-28) than our 2009-10 entitlement (7,210 -
  5,637)

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Questions?