1. 1 Mr. Mack: Keep’n You on Track ACSA Governmental Relations

2. Presentation LInk www.acsa.org/ECC/MackPresentation

3. Today's Discussion Governor’s plan The Politics A Cautionary Tail Taskforce My Crystal Ball

4. Themes Governor celebrations Debt eliminated & Ballot Measures passed “Channeling inner Republican” Frames debate – “Precariously balanced” vs. “rolling in dough” Education gets most of general fund revenue growth Anticipates strong revenues – could be bigger in May 4

5. The Politics New Legislators, new leaders, longer terms in office Tax Policy and Proposition 30 extension Vergara politics Education vs Non Education Not an election year 5

6. State Budget

7. Governor’s Overall Plan $133 Billion GF budget $1.22 billion to Rainy Day Reserve Fund (balance - $2.8 billion) State General Fund Expenditures: –K-12 41.6% –Health 21.3% –Higher Ed 12.4% –Corrections9.0% –Human Services 6.9% –Natural Resources 2.3% –Other 6.5% 7

8. State Revenues Governor assumes about 4.9% growth in GF Revenues –Personal Income Tax 4.9% –Sales and Use tax 7.4% –Corporation Tax 5.8% Prop 30 Revenues Helping but will taper off –Quarter-cent sales tax increase expires end of 2016 –Personal Income tax increase (high-earners) expires end of 2018 Capital Gains revenue will remain volatile

9. K-12 Education Budget

10. Proposition 98 The last two years have been great Prop 98 increase over 3 years equal $7.8 billion Increased funding necessary to meet minimum guarantee –2015-16: $65 billion –2014-15: $63.2 billion ($2.3 billion increase) –2013-14: $58.7 billion ($400 million increase) All funding deferrals are paid off – remaining $990 million

11. Local Control Funding Formula $4 billion towards implementation (8.7% increase from last year) Closes 32% of remaining gap $6.8 billion provided over 2 years COE LCFF: Increase of $109,000 to support COLA

12. Adult Education

13. Builds on Consortia implemented in 2013 Budget Act 2013 Budget Act provided $25 million 2015 Budget: $500 million Adult Education Block Grant Linked to the California Workforce Chapter Funds key Adult Ed programs: –Elementary & secondary basic skills –Classes & courses in citizenship and ELS –Education for adults with disabilities –Short-term CTE and apprenticeship 13

14. Adult Education Align programs with economic needs in each region Promote ongoing collaboration amongst different providers (workforce investment boards, social services departments, correctional rehabilitation agencies)

15. Adult Education Consortia Designate an allocation board to allocate block grant funds Form 7 member allocation committee consisting Represented by: –CCC –K-12 districts –Local workforce investment boards –County DSS –Correctional rehab programs –Public member

16. Allocation Committee Role Coordinate to ensure the funding streams are integrated – block grant funds, federal funds, WIA funds, CCC and K-12 funds Determine allocation of funds Annually report Chancellor and SPI on adult education plan and use of resources Report will inform future distribution of block grant funds

17. Career Technical Education Based on 2013 Budget Act – MOE was established Last year, $250 million in one-time funds for Career Pathways Trust Program This year $250 million for CTE Incentive Grant

18. Career Technical Education LEAs required to provide a dollar-for-dollar match Priority given to LEAs applying in partnership with other LEAs Must demonstrate positive results on specific outcome measures, including: –H.S graduation rates, –CTE course completion rates, –Pupils obtaining industry recognized credentials & certificates, –Number of pupils achieving gainful employment in relevant occupations, –Number of pupils progressing to postsecondary education

19. Common Core

20. Mandates and Common Core $1.1 billion one time for Common Core Help with adoption of English Language Development standards & new science standards However……. Funds will OFFSET mandate reimbursement claims Similar to the 2014 budget act ($400.5 million) Using the same dollar 2x

21. Teacher Preparation $5 million in non-P98 GF (over 2 years): Convene an CTC Accreditation Advisory Panel to provide streamlining preparation standards Improve data systems Develop candidate and employer surveys to determine quality of preparation Increase transparency & access to info about the quality & effectiveness of educator prep programs

22. Teacher Preparation and BTSA $5 million to update the Teacher Performance Assessment and Administrator Performance Assessment Method to verify educator quality Address BTSA programs through stakeholder process Evaluate financial burden on school districts & new teachers Look for options to streamline & reform induction

23. TechnologyTechnology $100 million to support in internet connectivity & infrastructure Acknowledge those LEAs in most need to implement the new computer adaptive tests Builds on $26.7 million from last year

24. Special Education Increase of $15.3 million for increase in special education ADA COLA of 1.58% provided EPSDT funding –$190 million for 2014-15 –$320 million for 2015-16 Where’s the Taskforce?

25. Special Education Taskforce Report Release Delayed to February Remember Purpose – “to examine California's complex systems for serving students with disabilities“ –Provide recommendations to CTC, CDE and SBE

26. Recommendation Themes Reform educator preparation Revision of roles and responsibilities for implementing best practices Realignment of CDE oversight Assessment and accountability reforms including access to assessment, alignment of mental health services and early childhood initiatives Increased access and equity of services prior to Transitional Kindergarten (TK) and Kindergarten A set of clear fiscal policy recommendations and reforms that support reforms. the transformative changes described in the rest of the report

27. The Future Where are the Social Service increases? Taxes? Ballot Measures On time

28. Questions?Questions? amack@acsa.org 916-444-3216