charter school capital california budget impact on charter schools 3
DESCRIPTION
Charter School Capital and a panel of experts provide timely and actionable information regarding the impacts of this funding reduction, an overview of current legislation and insights on how to plan for the cash flow shortfall.TRANSCRIPT
Copyright © 2012 Charter School Capital, Inc.
Understanding the CA State Budget Impact on Charter Schools
Copyright © 2012 Charter School Capital
TODAY’S SPEAKERS
2
Chas Cardall Branche Jones CA LEGISLATIVE
CONSULTANT ORRICK, HERRINGTON
& SUTCLIFFE
John Helgeson Stuart Ellis CHARTER SCHOOL
CAPITAL CHARTER SCHOOL
CAPITAL
Copyright © 2012 Charter School Capital
AGENDA
3
What We Will Cover Today
• The Issue • The Impact • The Solution • Questions
Copyright © 2012 Charter School Capital
THE ISSUE
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California State Budget • What is the real issue?
- One of the biggest problems has been glossed over - Focus has been on tax increase initiatives - But, immediate impact is from 21.2% reduction in general
purpose entitlement funds
Copyright © 2012 Charter School Capital
THE ISSUE
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California State Budget • What is the delay in funding?
- This is not a cut – it’s a delay in payment - It’s in addition to existing deferrals already in place - 21.2% is not taken all at once, but through monthly
installments
Copyright © 2012 Charter School Capital
THE ISSUE
6
California State Budget • Who does this impact?
- Impacts all public schools – including charter schools - Most charters don’t have the savings to absorb this state
payment delay
Copyright © 2012 Charter School Capital
THE ISSUE
7
California State Budget • When will this occur?
- Already has - began in July - Schools with deferral waivers may not have noticed this yet
Copyright © 2012 Charter School Capital
THE IMPACT
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November Ballot Initiatives • Overview on Prop 30 + Prop 38
Copyright © 2012 Charter School Capital
THE IMPACT
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November Ballot Initiatives • Only Prop 30 passes
- Existing 21.2% delay in payment assumes Prop 30 passes - Should be no additional reductions or deferrals - New tax revenues go into “Education Protection Account” of
the State’s General Fund - Funds in this account to be paid out next June
Copyright © 2012 Charter School Capital
THE IMPACT
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November Ballot Initiatives • Prop 30 + Prop 38 Fail
- Substantial cut in general purpose entitlement funding (trigger cuts)
- More deferrals during the P-1 payment period - Legislature may enact mid-year budget amendments
Copyright © 2012 Charter School Capital
THE IMPACT
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November Ballot Initiatives • Only Prop 38 passes
- Not clear what may happen with funding timing and amounts - Some implementing legislation seems likely
Copyright © 2012 Charter School Capital
THE IMPACT
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November Ballot Initiatives • Both Prop 30 and Prop 38 Pass
- Initiative that receives the most votes will be implemented and the other will not be effective
Copyright © 2012 Charter School Capital
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THE IMPACT
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Copyright © 2012 Charter School Capital
THE IMPACT
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Copyright © 2012 Charter School Capital
THE IMPACT
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Deferral Comparison • How does this compare to others?
- Expect monthly deferrals that result in 21.2% of your general purpose entitlement
- Delayed until June - Each monthly payment will be less than originally projected
Copyright © 2012 Charter School Capital
THE IMPACT
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An exercise to put this deferral in context…
Copyright © 2012 Charter School Capital
THE SOLUTION
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What Should You Do? • Educate yourself
- Understand the impacts to your school - Ask questions - Carefully analyze month-by-month payments to know what
your cash flow will look like - Visit CDE site http://www.cde.ca.gov/fg/aa/pa/iassf12adv.asp
- Plan, plan, plan
Copyright © 2012 Charter School Capital
THE SOLUTION
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Help Spread The Word • Every charter school in CA should know
- This 21.2% deferral will affect every charter school - If not planned for, it could be significant enough to really hurt
some charter school budgets
Copyright © 2012 Charter School Capital
THE SOLUTION
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We’re Here To Help You • Just ask
- Reach out with any questions you have - We want you to succeed in bringing high quality education to
your students - Sign up for our blog to follow timely information at
http://charterschoolcapital.org and click on the blog link • Charter School Capital provides cash flow assistance to cover
the 21% or other delays
Copyright © 2012 Charter School Capital
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QUESTIONS?
Copyright © 2012 Charter School Capital, Inc.
Stuart Ellis: [email protected]
Contact Information:
Toll Free: 877.272.1001
http://charterschoolcapital.org
John Helgeson: [email protected]