2014 ACSA Leadership Summit

LCFF and LCAP Essentials

Presented By:Karl Christensen, Assistant Superintendent Business Services

Santee School District

and

Dr. Gina Potter, Deputy SuperintendentLemon Grove School District

1

November 7, 2014

Topics• LCFF

• General Budgeting Principles

• State of California Services: Obtaining and spending funds

• Proposition 98

• Prior Finance System for K-12 Public Education

• New Finance System for K-12 Public Education (LCFF)

• LCAP

• Paradigm Shift

• Effectively Managing Change

• Building Organizational Capacity & Creating Bridges

General Budgeting Principles

• Needs are virtually unlimited while resources are limited. Therefore, you can generally have anything you want but you cannot have everything you want. (It’s all about prioritization)

• Effective budget management first requires strategic thinking: developing a manageable set of compelling goals and objectives in response to needs verified by data and then aligning/prioritizing resources to fund actions/services that will achieve those goals and objectives

• The primary aims of effective budget management are flexibility, sustainability (considering multiple years), and compliance with regulations, statutes, and restrictions

• Knowing and understanding the characteristics of one’s resources and expenditures helps ensure those aims are met

Resource Characteristics

Source Use Duration Scope

Federal Unrestricted (any lawful purpose)

On-Going (recurring)

Centralized

State Restricted: by donor or grantee so can only be spent on certain populations and/or types of expenditures

One-Time (only 1 year or wide fluctuation produces uncertainty of annual amount from year to year)

Decentralized (allocated)

Local

General Guidelines:• Use Restricted dollars first• Don’t use one-time funds for on-going expenditures

5

Residents

California ServicesFunded from State’s General Fund

JobsBusinesses

Goods & Services

SalesTaxes

PropertyTaxes

Personal Income Taxes

Corporate Income Taxes

State Budget

6

State Budget

7

Proposition 98

8

1. Passed by the voters in 1988 as an amendment to the State Constitution

2. Later amended by Proposition 111

3. Establishes a minimum annual funding level for K-14 schools (K-12 schools and community colleges)

4. Constitutes over 70% of K-12 funding and 2/3 of community college funding

5. Determines HOW MUCH is funded not WHAT is funded

6. General formula = Amount from previous year adjusted for attendance changes and growth of the economy

7. 3 Tests and “Escape Clause” with suspension

Proposition 98

9

Test Operation Description

1 Share of General Fund Provides 39 percent of General Fund revenues plus property taxes.

2 Growth in per capita personal income

Increases prior-year funding by growth in attendance and per capita personal income. Generally, this test is operative in years with normal to strong General Fund revenue growth.

3 Growth in General Fund revenues

Increases prior-year funding by growth in attendance and per capita General Fund revenues. Generally, this test is operative when General Fund revenues fall or grow slowly.

Exception Suspension With a two-thirds vote, the Legislature can suspend the guarantee for one year and provide any level of K-14 funding.

Don’t like #? Manipulation With a majority vote, components can be put into or taken out of the Prop 98 bucket, or revenue that was previously in the General Fund can be moved to other funds, to lower the #.

Proposition 98

10

LCFF

StateAid

Prop 98 “Guarantee”

MandatedCosts

Special Education

Deferral Payback

…Testing

PropertyTaxes

Maintenance Factor

Proposition 98

11

Dec 2007: The “Great Recession”

Begins

Local Control Funding Formula (LCFF)

13*Lottery and Mandated Cost Reimbursements

Local Control Funding Formula

Revenue Limit Funds

[Unrestricted]

Categorical Funds[Restricted]

Local Control Funding Formula

Revenue Limit Funds

Categorical Funds

1. Base Grant by Grade Span (Adjusted Annually for COLA)

[K-3, 4-6, 7-8, 9-12][K-3 < 4-6 < 7-8 < 9-12]

4. Fixed $ Add-Ons[HTS Transportation, TIIG]

Unduplicated Count%:*Free/Reduced Meal*English Learners*Foster Youth

2. Grade Span Adjustments Applied by %s[CSR for K-3 to 24:1+10.4% to Base]

[CTE for 9-12+2.6% to Base]

3. Targeted Funds Applied by %s[Supplemental +20% to Base] &[Concentration +50% to Base

>55%]

16*Lottery and Mandated Cost Reimbursements

17

Changes: COLA, ADA, %Unduplicated Count

18

Increment lacks distinction of Target

elements

19

Proportionality Calculation• Required each year and included in LCAP

• “Demonstrate how the services provided in the LCAP year for low income pupils, foster youth, and English learners provide for increased or improved services for these pupils in proportion to the increase in funding provided for such pupils in that year”

• “An LEA shall describe how the proportionality percentage is met using a quantitative and/or qualitative description of the increased and/or improved services for unduplicated pupils as compared to the services provided to all pupils.”

• The calculation divides the growth in funding between Base

Grant and Supplemental/Concentration Grant funding in the intervening years before the Target is reached

• Over time, LCFF results in a smaller share of total funding allocated to the Base Grant and a larger share of total funding allocated to Supplemental/Concentration Grant funding

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2012-13: Prior to LCFF

2014-15

2020-21

0.78%

99.22%

% Supp/Concn-trn% Base

7.86%

92.14%

3.32%

96.68%

Factor Old System New System

Budget Focus Compliance Outcomes

Fund Types Unrestricted and Restricted

Base Funding and Targeted Funding

Locus of Control State School District Governing Board

Funding Distribution Method

Revenue Limit per ADA supplemented by numerous Categorical Programs

Local Control Funding Formula w/ a few Categorical Programs

Determiner for Amount of K-14 Education Funding

Proposition 98 formula

Proposition 98 formula

Out with the OLD, In with the NEWB

uild

ing B

lock

s

Factor Old System New System

Budget Focus Compliance Outcomes

Fund Types Unrestricted and Restricted

Base Funding and Targeted Funding

Locus of Control State School District Governing Board

Funding Distribution Method

Revenue Limit per ADA supplemented by numerous Categorical Programs

Local Control Funding Formula w/ a few Categorical Programs

Determiner for Amount of K-14 Education Funding

Proposition 98 formula

Proposition 98 formula

Out with the OLD, In with the NEW

Factor Old System New System

Budget Focus Compliance Outcomes

Fund Types Unrestricted and Restricted

Base Funding and Targeted Funding

Locus of Control State School District Governing Board

Funding Distribution Method

Revenue Limit per ADA supplemented by numerous Categorical Programs

Local Control Funding Formula w/ a few Categorical Programs

Determiner for Amount of K-14 Education Funding

Proposition 98 formula

Proposition 98 formula

Out with the OLD, In with the NEW

Factor Old System New System

Budget Focus Compliance Outcomes

Resulting Fund Types

Unrestricted and Restricted

Base Funding and Targeted Funding

Locus of Control State School District Governing Board

Funding Distribution Method

Revenue Limit per ADA supplemented by numerous Categorical Programs

Local Control Funding Formula w/ a few Categorical Programs

Determiner for Amount of K-14 Education Funding

Proposition 98 formula

Proposition 98 formula

Out with the OLD, In with the NEW

Factor Old System New System

Alignment Mechanism

Compliance (Audit) Outcomes (LCAP)

Resulting Fund Types

Unrestricted and Restricted

Base Funding and Targeted Funding

Locus of Control State School District Governing Board

Funding Distribution Method

Revenue Limit per ADA supplemented by numerous Categorical Programs

Local Control Funding Formula w/ a few Categorical Programs

Determiner for Amount of K-14 Education Funding

Proposition 98 formula

Proposition 98 formula

Out with the OLD, In with the NEW

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Term Before NowRevenue Limit • Amount of general

purpose funding per ADA• Term generally replaced with

Base Grant

Annual Statutory COLA

• Required to be funded or tracked for future “catchup”

• Applied to Base Grant each year

• No requirement to fund or track

• Does not measure District’s increase in funding until full implementation

Deficit Factor • Measure used to track accumulation of unfunded COLAs and other reductions to the Revenue Limit

• N/A: Requirement to fund or “catchup” no longer applies

• Solely reliant upon State’s ability and willingness to pay

Comparison Districts

• Used to determine comparability of salaries and health benefits

• N/A: Each district’s annual funding increase will be vastly different thereby making comparability difficult

Categorical Programs (Categoricals)

• All restricted funding outside the Revenue Limit

• For specific types of expenditures or designated populations

• Most are now merged into augmentation to Base Grant

• A few Categoricals still maintained outside LCFF

• New Categoricals outside LCFF can be added in the future

Vocabulary Changes

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Maximizing LCFF Revenue• Be aggressive with maximizing student attendance and

ADA:• Offer incentives• Track and report data by grade level to schools – create goals and

school level competitions• Encourage short-term Independent Study contracts for absences of 5

consecutive days or longer

• Educate parents on the Federal Meal Program to maximize Free/Reduced meal counts:

• NOTE: Applications received on or before October 31 can be included in Unduplicated Count

• Send applications and explanation letter in beginning of year parent packet

• Send follow-up letters• Ask teachers to remind parents at back to school nights and have

applications available• On days leading up to October 31, remind teachers daily to check their

desks for applications and send to the office ASAP:• Consider using student runners• Ask teachers or office staff to record the date received on the

application and sign

• Aggressively monitor K-3 class sizes to avoid penalties:

K-3 Class Size Monitoring

School:

Teacher Grade Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month X* Average

Alton K 26 27 26 27 27 27 27 27 26.75

Balton K 25 25 26 27 27 26 26 26 26.00

Calton 1 25 26 26 26 26 27 27 27 26.25

Dalton 2 24 24 23 24 25 26 26 26 24.75

Elton 3 25 25 25 25 25 26 26 26 25.38

26.00

27.00

24.00

3.00

0.89

26.00

Yes*Last school month on or before April 15

Compliant? (Line A = 24 or Line A <= Line F):

Alpha School

[A] Current Year School Average (rounded to nearest half or whole integer):

[B] Prior Year School Average (rounded to nearest half or whole integer):

[C] Final Target:

[D] Difference (B minus C):

[E] Incremental Progress at GAP% of 29.56% (D times GAP%):

[F] Incremental Target (B minus E) (rounded to nearest half or whole integer):

School:

Teacher Grade Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month X* Average

Alton K 26 27 26 27 27 27 27 27 26.75

Balton K 25 25 26 27 27 26 26 26 26.00

Calton 1 25 26 26 26 26 27 27 27 26.25

Dalton 2 24 24 23 24 25 26 26 26 24.75

Elton 3 25 25 25 25 25 26 26 26 25.38

26.00

26.00

24.00

2.00

0.59

25.50

No*Last school month on or before April 15

Compliant? (Line A = 24 or Line A <= Line F):

Beta School

[A] Current Year School Average (rounded to nearest half or whole integer):

[B] Prior Year School Average (rounded to nearest half or whole integer):

[C] Final Target:

[D] Difference (B minus C):

[E] Incremental Progress at GAP% of 29.56% (D times GAP%):

[F] Incremental Target (B minus E) (rounded to nearest half or whole integer):

K-3 Class Size Monitoring

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Local Control Accountability

Plan - LCAP

LCAP bridges school funding with

educational accountability

PARADIGM SHIFT

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State Board of Education Timeline of Events

Jan 1, 2014 Updated standards & criteria for use by LEAs in the adoption of local budgets (E.C. 33127. Align with LCAP requirements.

Jan 31, 2014 Spending regulations that clarify how expenditures should be managed to demonstrate compliance.

Jan 30, 2014 Public School Accountability Act Advisory Committee (PSAA) recommendations regarding the API

March 31, 2014 LCAP emergency templates released (E.C. 52064)

Oct 1, 2015 LCAP Evaluation Rubrics that provide a “holistic multidimensional assessment” (E.C. 52064.5)

LCFF LCAP

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8 PrioritiesLocal Control Accountability

Plan (LCAP)

Student Engagement

Other Student Outcomes

Parent Involvement

Course Access

Student Achievement

School Climate

Credentials/Materials

Implementation of Common Core Standards

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LCAP Template

Can be downloaded & posted on your LEA website

Organized into sections with guiding questions for analysis, data, & findings

Simple: Avoids plan duplication & non-essential information

Transparent: Necessary information to demonstrate how LCFF funding supports student performance outcomes

Local: Contextual sharing of local story

Performance-Focused: Emphasizes student performance outcomes

Editable Template Format Guiding Principals

3 LCAP State Categories & 8 State Priorities

Conditions of Learning

Pupil Outcomes Engagement

P1 - Basic P4 – Pupil Achievement

P3 – Parent Involvement

P2 – Implementation of State Standards

P8 – Other Pupil Outcomes

P5 – Pupil Engagement

P7 – Course Access P6 – School Climate

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LCAP Development & Annual Review process

The Board of Trustees must consult with:

• Teachers• Principals• School Personnel• Pupils• Local Bargaining Groups

Present for Review & Comment:

Parent Advisory Committees

Superintendent must respond in writing to comments received

Notify parent groups of written comment opportunity

Stakeholder Engagements

Community Forums Parent Meetings Trainings District committee

meetings

Hold 2 Public Hearings: Recommendations &

Comments 1 at Budget public hearing

Involvement Transparency

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County & State Oversight of School District LCAP Progress

County Office of Education

Aug 15 – Districts Send COE LCAP

Oct 8 – COE Approves District LCAP or…

Identifies strengths & weaknesses

Assigns academic expert/team

Requests SPI assign the California Collaborative for Educational Excellence (CCEE) to provide assistance

State Superintendent of Public Instruction Intervention IF…

District fails to improve outcomes for 3 or more subgroups 3 out of 4 consecutive years THEN…

Appoint academic trustee

Stay & rescind Board action

Impose budget revisions

Make changes to LCAP

EFFECTIVELY MANAGING CHANGE

Peter Senge – The Fifth Discipline: The art and practice of the learning organization

American systems scientist & senior lecturer at the MIT Sloan School of Management

Founder of the Society for Organizational Learning

B.S. in Aerospace engineering from Stanford University

M.S. in systems modeling from MIT & PhD in Management

Harvard Business Review identified The Fifth Discipline as a seminal management book

Developed the notion of a learning organization as a dynamic system in a continuous state of adaptation and improvement

Senge’s 4 Challenges to Change

Must be a compelling case for change

Must be time for change

Must be help during the change process

Removal of perceived barriers to change

Michael Fullan – Change Theory: A Force for School

Improvement

http://www.michaelfullan.ca/media/13396072630.pdf

Centre for Strategic Education – Seminar Series – Sections: Flawed Change Theories Theories of Action with Merit Prospects for future use of change

knowledge

Change Theories with Flaws

Standards-based Districtwide Report Initiatives Flaw – Missing any notion about school or district

culture

Professional Learning Communities Superficial PLCs – schools using the term but not fully

implementing the 6 PLC components defined by DuFour

Qualifications Frameworks Focused on Development & Retention of Quality Leaders

Flaw – Focus on producing more and better “individuals”… 30% solution

Flawed Change Theories

Theories of Action with Merit 7 Premises

Focus on motivation & engagement

Capacity building, with a focus on results

Learning in context i.e. teachers observing their colleagues and being observed

Changing context Schools & districts learn from each other – lateral capacity building

A Bias for reflective action i.e. Shared vision is an outcome of a quality process rather than a precondition

Tri-level engagement School & community, district & state

Persistence and flexibility in staying the course

Education has “…more leaders [who are] system thinkers in action… who are actively using and refining [change]

knowledge.”

Quote by Fullan

BUILDING ORGANIZATIONAL

CAPACITY

• Collaboration• Communication

• Connections

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Collaboration

Video ClipThe Power of Teamwork:

Inspired by the Blue AngelsBlue Angels Teamwork Video

Good to Great:Why Some Companies Make the Leap… and

Others Don’t

By James C. Collins

Overview

Management book describing how companies transition from being average companies to great companies

Main factor for achieving greatness is a narrow focus of the company’s resources on their field of competence

5 year meta-analysis project that generated of 6,000 articles, 2,000 interview transcripts and 384 MG of data

48

7 Characteristics of Companies Transitioning from Good to

Great Level 5 Leadership: Leaders who are humble, but driven

First Who, Then What: Get the right people on the bus, then figure out where to go

Confront the Brutal Facts: Confront the brutal truth, but never give up hope

Hedgehog Concept: Passion, Best At, & Driving Source

Culture of Discipline

Technology Accelerators

The Flywheel: The additive effect of many small initiatives; they act on each other like compound interest

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District Needs Assessments & State Regulations

Sample Needs Assessments

Transition in Education Forums

California Standards Test (CST)

Smarter Balanced Assessment Consortium (SBAC) Student Achievement Data – as of 2015

CA English Language Development Test (CELDT) - ELL Assessment

Professional Development Committee Needs Assessment

School Accountability Report Card (SARC)

State Regulations Local Control Funding

Formula (LCFF) AB97 E.C. 42238.07

Local Control Accountability Plan (LCAP)

E.C.52064 and 52064.5 Adoption of Plan

E.C.52060 LCAP Public Hearing and

Adoption E.C.42127 and 52062 E.C.52065

Filing of LCAP E.C. 52070

District Needs Assessments & State Regulations

Needs Assessments

Facilities Inspection Tool (FIT)

CA Physical Fitness Test

CA Healthy Kids Survey

Parent/Teacher Surveys

State Regulations Unduplicated Students

E.C.42238.01 K-3 Grade Span Adjustment

Phase-in E.C.42238.02

Broad Course of Study E.C.51210

Stakeholder Engagement E.C.52060, 52062, and 52063

Academic Performance Index and Subgroups

E.C. 52052 District Annual Audit –

Board Policy 514

Sample - LCAP Annual Review TimelineAction Steps Date

1. Develop an Annual LCAP Review Timeline Aug - Sept

2. Train the Management Team on the District’s LCAP & Implementation Expectations

Aug - Sept

3. Establish a Measurement Rubric for LCAP Goals &

Progress Towards Minimum Proportionality Percentage (MPP)

Oct - Nov

3. Measure Progress Towards LCAP Goals & MPP for Target Groups by School & District

- Determine frequency of measurement (i.e. monthly, bi-annually, etc.)

Nov – April

4. Assess LCAP Budget Expenditures Compared to LCAP Goals & MPP

Nov - April

5. Meet w/ Stakeholders Regarding LCAP Progress: - Teachers, Principals, Staff, Pupils, Bargaining Groups - Parent Advisory Committee - ELACs & DELAC

April - May

6. Board Approval of LCAP Annual Review – New LCAP Annual Review Template Released by SBE – Nov 2014

June

CREATING BRIDGES

• Ed Services, HR & Business Services• Districts & Schools

• Districts & Communities

Creating & Sustaining Concentric Circles of

Communication within the Learning Community

Sample - LCAP Teams of Concentric Circles

LCAP Writing & Review Team

Governing Board &

Superintendent

Business Services & Ed

Services

Instructional Leadership

TeamStudents, Parents

& Community

Labor Groups

FMOT & Writing Team

SB

E P

lan

Alig

nm

en

t Com

mitte

e

The LCAP can represent the blending of all district plans into a unifying umbrella plan which includes, but is not limited to:

• District Strategic Plan• Local Education Area Plan

(which includes the ELL Plan)• Single Site Plans for Student

Achievement• Technology Integration Plan• Master Schedules• Teacher Lesson Plans• District Long-Range Master

Facilities Plan

Get to Know Your COE LCAP Review Team

Educational Services Consultant

Business Services Consultant

Find out who they are and how to reach them

Provide them with your draft BEFORE final submission and see if they have time to give you feedback

LCAP County Superintendent of Schools

Submission & Review AB 1200 provides COEs & CDE with fiduciary

oversight of LEA budgets

Now, Ed Code 52070 designates the County Superintendent of Schools as the responsible entity for oversight and approval of district LCAPs

No later than 5 days after an LEA Governing Board adopts the LCAP or LCAP Annual Update it needs to be filed with the County Superintendent

COE LCAP Criteria

LCAP adheres to the SBE Approved Template (E.C. 52064)

Budget includes expenditures sufficient to implement the actions & strategies in the LCAP

LCAP adheres to expenditure requirements pursuant to E.C. 42238.07 – Funds Apportioned for Unduplicated Pupils (E.C. 42238.02 and 42238.03)

CCSESA LCAP Approval Manual

CCSESA – California County Superintendents Educational Services

CCSESA LCAP Approval Manual Released on April 30, 2014

Joint effort by CCSESA, Curriculum & Instruction Steering Committee (CISC), multiple COEs, SBE, CDE, and FCMAT

The LCAP Approval Manual will be amended when SBE adopts permanent LCFF and LCAP regulations

Critical LCAP Success Steps

Establish a District LCAP Committee

CALPADs Verification Team

Regularly monitor K-3 Grade Span Adjustment (GSA) ratios at each school site to ensure the LCFF required progress towards 24:1 class size ratio

Develop an LCAP Measurement Rubric for base grant and supplemental/concentration grant goals Determine the frequency of review for the measurement

rubric (i.e. Baseline Data, Mid-Year Review, End of Year Review)

SBE Pending Release – Revised LCAP Template

SBE Pending Adoption of Permanent LCFF Spending Regulations & Revised LCAP Template – Nov 2014 SBE Meeting

Single Site Plans for student achievement – Incorporate site LCAP budgets

SampleLCAP Measurement Rubric – Base Grant Goals

[Alternative: Riverside COE/SSC’s Needs Assessment Tool]

63

LCAP Base Grant Goals

Metrics Measurement Rubric

Baseline Data

Mid-Year Review

Jan 2015

End of Year Progress Review

April/May2015

1. Student achievement will improve annually

• State Assessments• CELDT• A-G or CTE

Completion• EL Reclassification

Rate• AP Passage %• Report Card Data

Sample:

• 2% increase in reclassifications

2. LEA will prioritize safety and school maintenance

• Facilities Inspection Tool

• Long Range Master Facilities Plan

3. LEA will invest in technology to support implementation of CCSS & SBAC

• Technology Plan Metrics

4. Create safe & welcoming schools

• Attendance Rates• Chronic Absenteeism

Rates• Dropout Rates• Graduation Rates• SARCS • California Health Kids

Survey

SampleLCAP Measurement Rubric –

Supplemental/Concentration Grant Goals – Target Groups

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LCAP Target Group Goals

Actions Expenditures

Metrics Student Achieve-

ment Baseline

Data

Student Achieve-

ment Progress

Data

1. Low Income 1. Purchase CCSS Math Adoption & Professional Development

2. Expand Intervention Programs

3. Coaching & PD on CCSS for ELA & Science

4. Differentiation of Instruction

Pending SB 1394 (Wyland)

• Reading• Reading

Comprehension

2. English Learners & RFEPs

1. Intervention Services 2. Bilingual Instructional

Aides3. Dual Immersion

Program

Pending SB 1394

• Reading• Reading

Comprehension• English Language

Development

3. Foster Youth 1. Foster Family Advocacy Group

2. Social worker services for foster youth

Pending SB 1394

• Reading• Reading

Comprehension

LCFF & LCAP Web Resources 

LCFF & LCAP Resources  

Affiliated Websites

California Department of Education – LCFF http://www.cde.ca.gov/fg/aa/lc/

California Department of Education – LCAP http://www.cde.ca.gov/search/searchresults.asp?cx=001779225245372747843:gpfwm5rhxiw&output=xml_no_dtd&filter=1&num=20&start=0&q=local%20control%20accountability%20plan WestEd – LCFF Channel http://lcff.wested.org/lcff-channel/

The Fiscal Crisis & Management Assistance Team (FCMAT) – LCFF Resources

http://fcmat.org/local-control-funding-formula-resources/

Business and Administration Steering Committee (BASC) LCFF Calculator on FMCAT Website

http://fcmat.org/local-control-funding-formula-resources/

California Longitudinal Pupil Achievement Data System (CALPADS)

http://www.cde.ca.gov/ds/sp/cl/index.asp

Association of California School Administrators (ACSA) – Leadership for Local Control Accountability Planning ACSA Academy

http://www.acsa.org/academies

Association of California School Administrators (ACSA) – Electronic LCAP Template (ACSA Tool)

http://www.acsa.org/MainMenuCategories/Advocacy/LCFF/LCAPCalifornia.aspx

California County Superintendents Educational Services Association (CCSESA) – LCAP Approval Manual 2014-15 Edition

http://ccsesa.org/special-projects/lcap-approval-manual/

Riverside COE/School Services Needs Assessment Tool

http://www.sscal.com/tools_resources.cfm

County Offices of Education Contact your local county office of education for additional LCFF & LCAP guidance.

Questions

66