1. LOCAL CONTROL FUNDING FORMULA (LCFF) JANUARY 24, 2014 PRESENTED BY: RAUL A. PARUNGAO ASSISTANT SUPERINTENDENT FREMONT UNIFIED SCHOOL DISTRICT

2. The Fremont Unified School District  Serves about 34,000 students  42 Schools  28 Elementary Schools  5 Junior High Schools  5 Comprehensive High Schools and 1 Continuation High School  Adult School  Preschool  Charter School  3,600 employees, largest employer in Fremont  Governed by five-member Board of Education (Elected Officials) 2

3. The Fremont Unified School District 3

4. Enrollment 4

5. Funding For Education  Proposition 98 is a provision in the State Constitution that establishes the minimum funding level for K-14 education. It is approximately 40% of the State’s General Fund budget. Funds are distributed to school districts in the form of:  Unrestricted General Fund  Revenue Limit  Restricted General Fund – Categorical Funds  Economic Impact Aid  Schools & Libraries Improvement Block Grant - SLIBG  Special Education Funding  Instructional Material Fund Realignment Program - IMFRP 5

6. Proposition 98 Revenues 6

7. Proposition 98 Revenues & Spending 7 Proposition 98 sets the minimum funding level for K-14 education, but the legislature and the Governor decide how to spend it

8. Other Funding For Education  Federal Revenues  Title I, II, III  Medical Administrative Activities (MAA)  Special Education Funding  Local Revenues  Parcel Tax  Local Grants and Donations 8

9. Revenue Limit 9

10. Local Control Funding Formula (LCFF)  Enacted as part of the Budget Act for 2013-14 under Assembly Bill (AB) 97  Eliminates the Revenue Limit funding and most of the State categorical funds  Establishes new funding formula that provides same base grant for all school districts  Supplemental funding based on fixed percentages of the base grant amounts per pupil  Funding should be no less than 2012-13 level  Full implementation over 8 years, starting in 2013-14  K-3 class size reduction to 24:1 over 8 years  Requires Local Control Accountability Plan (LCAP) 10

11. Proposition 98 Revenues & Spending 11 Proposition 98 sets the minimum funding level for K-14 education, but the legislature and the Governor decide how to spend it

12. Key Precepts of LCFF  Equity, additional resources for students with greater needs  Low-income students  English learners  Foster youth  Local decision-making and stakeholder involvement  Accountability  Transparency  Alignment of budgeting with accountability plans 12

13. School Funding Before & Now BeforeNow Revenue Limits LCFF base funding with grade span difference State categorical programs with some flexibility Pupil weight based on needs K-3 class size reduction (CSR) with unlimited class sizes (originally at 20:1) K-3 CSR target at 24:1 Accountability and performance process unique for each funding source Local Control Accountability Plans required for the entire fund 13

14. How is LCFF Calculated?  Target funding for LCFF is calculated in the following order:  Base grant  Plus: Add-ons to formula  Transportation funding  Targeted Instructional Improvement Block Grant (TIIBG)  Plus: Augmentation to the base grant  K-3 Class Size Reduction (CSR) – 10.4% of the base grant  9-12 Career Technical Education (CTE) – 2.6% of the base grant  Plus: Supplemental grant (up to 55% of eligible students)  20% of the base grant for each eligible student  Plus: Concentration grant (applies only if more than 55% of the students are eligible)  50% of the base grant for each eligible student 14 Eligible students – unduplicated count of low-income students, English Language Learners (ELL), or foster children

15. FactorsK-34-67-89-12 Base Grant per ADA$6,952$7,056$7,266$8,419 Augmentation Grant(K-3 CSR) $723 (CTE) $219 Adjusted Base Grant per ADA*$7,675$7,056$7,266$8,638 * Approximately 70% of FUSD students will be funded using the Adjusted Base Grant FactorsK-34-67-89-12 Supplemental Grant$1,535$1,411$1,453$1,728 Total Base and Supplemental Grant**$9,210$8,467$8,719$10,366 ** Approximately 30% of FUSD students will be funded using the Base and Supplemental Grant. Supplemental grant applies to students who are low-income, English Language Learners (ELL), or foster children. CTE-Career Technical Education ADA – Average Daily Attendance How is LCFF Calculated?

16. How LCFF Works? 16

17. How LCFF Works? 17

18. LCFF Progress 18

19. K-3 Class Size Reduction Example GradeClass Size Number of TeachersCapacityEnrollment (Available Seats)/ No Seats (a)(b)(c=a x b)(d)(e=d-c) K284112104(8) 1304120112(8) 2304120114(6) 3304120110(10) Total K-316472440(32) 19 Old Method New Law Average Class Size27.50440 students / 16 teachers Average Class Size Target27.59 Met or Not Met?Met Capacity44127.59 x 16 teachers (Available Seats) / No Seats (1)Enrollment vs. Capacity Failure to meet the target will result in a loss of $1 million funding

20. Other Budget Information  The economy is improving – falling unemployment rates, improving housing market, Gross Domestic Product trends upward stimulates purchases of durable goods  CA unemployment rate is improving but still 1.5% higher than nation  The Governor’s proposal includes strong investment in education  Proposal for “Rainy Day Fund” for education  Grades K-3 CSR is expected to reduce by the same rate in 2014-15 20