California SELPA Administrators Meeting

California SELPA Administrators’ Meeting Finance Report – July 2016

1. State Budget  On June 15th the Legislature approved SB 826 the main 2016-2017 State Budget Bill. They also approved SB 828, the early childhood and K-12 education trailer bill.  On June 27th, Governor Brown signed SB 826 including all of the budget trailer bills. There was agreement on the budget items between the legislature leaders and the Governor. Therefore, it is not expected that there will be any line item vetoes.  Proposition 98 goes from 69 billion to almost 72 billion.  There were four one-time budget items included. . College Readiness Block Grant – 200 million to high schools and charter schools to provide additional services to high school students that support access and successful transition to higher education. It is estimated to be about $140 per ADA, with no agency receiving less than $75,000. The school must be WASC accredited. Budget language recommends eligible activities. . Classified School Employee Credentialing Program. 20 million, available for 5 years to K-12 LEAs to support recruitment of classified employees to earn certification and become classroom teachers in California public schools. . California Collaboration for Educational Excellence. Increase of 24 million for the CCEE to support statewide professional development on the use of evaluation rubrics and to build local and state capacity to implement a system of continuous improvement in the eight state priorities. . The CTC will receive 5 million to establish the California Center on Teaching Careers. These funds are to aid in addressing the teacher shortage.  Also in the budget . Alternate Dispute Resolution (ADR) continued funding. . Mental Health Funding – continued. . Multi-Tiered System of Support – an additional 20 million. 1 million for Orange County Office of Education (Lead agency) and the rest to be grants to LEAs. We do not know specifics at this time. . Transitional Kindergarten remains intact since the Early Education Block Grant was not included in the budget. . Since AB 403 is totally revamping the Child Welfare foster/group home system and there are no final plans yet, there is a hold harmless provision for SELPAs’ Out of Home Care Bed rates for the 2016-2017 school year.

2. Other State News Page 2 California SELPA Administrators’ Meeting Finance Report – July 2016  May revenues in the State were on target with estimates coming in 7 million above forecast. Personal income tax, sales and use tax were above estimate.  Job growth is continuing and the median prices of single family homes sold was about $510,000. It is the first time that the median price rose above $500,000 since 2007.  There are no increases for special education in the budget.  California’s economy is the 6th largest in the world in 2015, ahead of some big countries.  Fiscal Legislations  Initiative to extend Proposition 30 has qualified for the November ballot. Proposition 55 (California Children’s Education and Health Care Protection Act of 2016).  SB 799 (Hill) is attempting to make reforms to the reserve cap placed on LEAs last year.  Facilities Bond – Proposition 51 – 9 billion dollar school facilities bond.

3. Federal News Nothing to report

4. Federal Reporting Requirements  Maintenance of Effort (MOE)  Subsequent Year Rule – Thanks to Mark Curtis, Russell Coronado and the San Diego SELPAs where Mark works, a user-friendly tool has been developed to indicate each LEA’s performance on each of the four MOE tests. (Remember – LEA’s are only required to pass 1 of the 4 tests each year, but must complete all four). This tool will also have a feature to feed into a summary sheet for multi-district SELPAs. It is hoped that the tool will be released in August with directions. Mark will join us for a presentation at State SELPA in September.  A problem was just identified in the SACS MOE SEMA/SEMB forms in the area of per capita calculation, if you are using per capita to pass. We will explain more in September. However, you can call us with questions if this issue arises in your SELPA.  Private School Proportionate Share Form. We are still making some small edits. Remember this form will not be required until the 2016-2017 school year.  Table 8 electronic form will be distributed as soon as the compliance data from 2013-2014 is calculated. That data is needed for one section in Table 8.  Excess Cost Calculation Worksheet. The final worksheet was sent out in May. Page 3 California SELPA Administrators’ Meeting Finance Report – July 2016  The new Timely/Complete Reports from CDE will include all of the required fiscal reports.

5. P-2 Funding Exhibits  Section B – Proration factor dropped slightly from 3.73% to 2.71%.  Section F – Low Incidence remains at $432.80 per pupil.  Section G – Out of Home Care (OHC) funded fully at 2015-2016 bed rates plus 1.02% COLA.  Infant Program – Rates remained the same as P-1 which included 1.02% COLA.

6. 2014-15 R1 Annual Recertification  Deficit reduced a very small amount. Deficit of 0.12% still remains.  Section G – OHC included corrections from SELPAs between P-2 and RI.  Section H – Extraordinary Cost Pool- Still not fully funded. Proration at . 8049561084.

7. 2013-14 – Annual R3 Recertification No changes.

8. Important Reminders  Annual Budget/Service Plan was due to CDE on June 30th.  There are many expenditure reports due by July 30th including Federal Grants, Mental Health and State Local Assistance (this was the one time 6501 grant). Be sure your expenditure reports are submitted. If you need to go into year 2 to spend these grants, you must submit a budget plan to CDE.

9. Other Fiscal Information  Infant Discretionary Grants/State Early Intervention Grants have been received recently.