1. Education Budgets and Transparent Funding PTA Council October 15, 2009 LMU Family of Schools

2. 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

3. Overview of State and Local Demographics California Department of Education, http://www.cde.ca.gov/ds/ October 13, 2008.

4. Overview con’t: California Department of Education, http://www.cde.ca.gov/ds/ October 13, 2008.

5. Overview of State and Local Budgets School Finance Facts, California Budget Project, Feburary 2009

6. Types of Funds: State Distribution to School Districts Restricted/Categorical FundsUnrestricted 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

7. 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

8. 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

9. 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.

10. Why is the use of average salaries inequitable? 10 Using average salaries, instead of true costs, masks spending differences between schools. School ASchool B Size1000 students # of teachers24 Level of teacher experienceVeteranNew Average Salary Cost$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.

11. 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

12. 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

13. Example of OWMS PositionNorm AllocationBudgeted by School Principal1.00 Asst. Principal1.00 School Admin Asst1.00 Sr Office Technician1.00 Office Technician.491.00 Clerk01.00 Plant Manger1.00 Asst. Plant Manger1.00 Buildings and Grounds4.003.50 School Facilities2.00 Library AIde0.75 Library Media Teachers1.000 Total13.4914.25

14. How to Calculate Unrestricted Resources Next Year’s Projected Enrollment Per Pupil Allocation Last Year’s Attendence Rate (ADA) Total School Discretionary Fund

15. 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 Allocation

16. 2009-2010 Per Pupil Allocation Net Revenue : $911.00 Deductions: $5293.00 Base Revenue: $6204

18. 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.

21. What We are Working Towards: Principal: Proposes budget Budget Committee : Advises on Categorical Funds (School Side Council ) and Unrestricted Funds Governance Council: Decision-Making Body

22. 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