lao the state budget & adult education legislative analyst’s office january 2010
TRANSCRIPT
LAO
The State Budget & Adult Education
Legislative Analyst’s Office
January 2010
www.lao.ca.gov
LAO
LAO Presentation Overview
Provide a general budget update. Discuss categorical flexibility generally. Discuss impact of budget and flexibility on
adult education. Consider related policy questions.
LAO
Overview of State Budget and Governor’s Solutions
Governor identifies $18.9b problem.• $6.6b at year-end in 2009-10.• $12.3b in 2010-11.
Governor’s plan contains $1b reserve. Plan also contains $19.9b in solutions.
• 40 percent in flexibility from federal government.• 40 percent reductions to state spending.• 20 percent in fund shifts and ballot measures.
Plan triggers additional cuts if federal funds don’t materialize.
LAO
Proposition 98 Funding Stays Virtually Flat Under Governor’s Proposal
2008-09 2009-10 2010-11
Governor's budget proposal $49,000 $49,900 $50,000
Change - July budget agreement -$83 -$568 —
Overview of Proposition 98 Funding (In Millions)
Departs from July budget agreement on Maintenance Factor. Seeks waiver of federal minimum spending requirement.
LAO
School Districts Face Funding “Cliff” in 2010-11
2007-08 2008-09 2009-10 2010-11
Per-pupil funding $8,653 $8,775 $8,354 $7,702
Percent change — 1.4% -3.5% -11.0%
Drop in 2010-11 from one-time solutions:• Federal stimulus money.• Deferrals.• Less in restricted reserves.
LAO
Governor’s Major Budget Proposals
Major midyear proposals:• Capture $340m in unspent Class Size Reduction Funds.• Recognize $228m in revenue limit savings.
Major budget-year proposals:• Includes $1.9b to restore one-time solutions.• Reduces revenue limits by $1.2b for reduced
administration costs.• $300m linked to district flexibility to contract out.
LAO
State Tried to Help Manage Cuts By Increasing Flexibility
State tried to help LEAs manage cuts by providing flexibility related to:• Categorical funding.• Reserves.• Length of school year.
Governor’s budget includes additional flexibility. Questions remain for Legislature:
• What has the impact been?• Should it continue beyond current sunset?
LAO
Early Reactions to Flexibility Suggest Some Benefits
To what extent did flexibility affect your ability to develop and balance a budget?
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
No Impact Somewhat Harder Much Harder Somewhat Easier Much Easier
LAO
Early Reactions to Flexibility Suggest Some Benefits
To what extent did flexibility affect your ability to develop a strategic plan?
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
40.00%
45.00%
No Impact Somewhat Harder Much Harder Somewhat Easier Much Easier
LAO
Early Reactions to Flexibility Suggest Some Benefits
To what extent did flexibility affect your ability to fund programs for struggling/at-risk students?
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
No Impact Somewhat Harder Much Harder Somewhat Easier Much Easier
LAO
…But Need to Weigh These Perceptions Against Programmatic Impact…
Results suggest at least some funds being shifted away from:
• Arts and music.• Alternative education.• CAHSEE remediation.• Career technical education.• And, last but not least…
LAO
Early Results on Adult Education Suggest Funds Being Shifted Away Our district is changing funding for adult education:
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
40.00%
45.00%
Shifting substantialfunds away
shifting some fundsaway
No change Shifting funds to Shifting significantfunds to
LAO
Early Results on Adult Ed Suggest Some Program Changes Our district is changing its adult education
program:
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
Not at all In minor ways In major ways Is discontinuing theprogram
LAO
Adult Education Funding System Before Categorical Flexibility
Funding mechanism had several disadvantages:• Growth mechanism on autopilot.• Allocation method arcane.• No clear sense funds targeted areas with greatest need.• No clear sense of how fees contribute to local budgets.
General agreement the state could improve upon model.
Leaves state to answer several major policy questions.
LAO
What Is Adult Education’s Core Mission?
Data suggest California funds broader adult education priorities than other states.
Roughly one quarter of adult education students not enrolled in WIA courses.
State State $ Programs
California 90% 9
New York 75% 6
Florida 90% 5
Texas 25% 4
Illinois 60% 3
Arizona 32% 3
LAO
What Is Community College’s Role in ABE, ASE, ESL?
Advantages and disadvantages to delivering these courses through either system.
Adult education system:• Courses cover K-12 content.• Coordination with CAHSEE and diploma requirements.• Geographically more diverse.
Community college system.• Could put students on a degree track.• More targeted focus on adults.• More opportunities for applied learning.
LAO
How Should CA Provide Career-Technical Education (CTE)?
What is effective CTE for adults?• Difference between technical training and basic
employment skills.• Of K-12/CCC articulation agreements under Gov’s CTE
initiative, almost 30 percent were for word processing.• Big difference in terms of funding requirements.
Who should deliver CTE for adults?• Again, CCC/adult ed systems need to be coordinated.• ROCPs in flexibility – no longer subject to limitations on
adults served.
LAO
How Do We Provide Funding?
Once basic programmatic questions are answered, how do we fund programs?
State Allocation
Florida 85% base, 15% performance.
New York All eligible districts.
Texas 75% attendance, 25% need.
Federal questions remain:How can we best leverage federal funding?What will happen with WIA reauthorization?
LAO
How Do We Determine Efficacy?
Data coordination insufficient. As a result, data limited on:
• Employment after completing adult education.• Postsecondary outcomes after adult education.
Accountability insufficient:• Who should be responsible if a student begins
postsecondary education underprepared?• How do we tell if our adult ed system is helping to solve
our demographic and economic challenges?
LAO
Contact Information
Jim Soland, Legislative Analyst’s Office (LAO):
• (916) 319-8327
• www.lao.ca.gov