Education

Proposition 98 Budget Overview

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March 5, 2013 - Presented to Assembly Budget Subcommittee No. 2 on Education Finance

The 2013-14 Budget: Restructuring the K-12 Funding System

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February 22, 2013 - The Governor proposes to restructure the way the state allocates funding to school districts, charter schools, and county offices of education. We believe the Governor’s proposed new formulas would address many problems inherent in the state’s existing K-12 funding approach, and we recommend the Legislature adopt most components of the proposal. Unlike the current system, the proposed formulas would be simple and transparent, fund similar students similarly, and link funding to the cost of educating students. We believe the proposed approach could be improved, however, with some notable modifications. We suggest a number of specific changes to better align funding levels with anticipated costs, eliminate irrational funding differences across districts, simplify the formulas, and ensure important state priorities are addressed.

The 2013-14 Budget: Proposition 98 Education Analysis

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February 21, 2013 - The Governor's 2013-14 budget provides $56.2 billion in total Proposition 98 funding--a $2.7 billion (5 percent) increase from the revised current-year level. The Governor dedicates new monies to paying down school and community college deferrals, transitioning to a new K-12 funding formula, restructuring adult education, funding Proposition 39 energy projects for schools and community colleges, and adding two mandates to the schools mandates block grant. The Governor also proposes various changes and consolidations relating to special education funding. Though we think the Governor's basic approach of dedicating roughly half of new funding to paying down existing obligations and the other half to building up base support is reasonable, we have concerns with many of his specific Proposition 98 proposals. In the areas of adult education, Proposition 39 energy projects, mandates, and special education, we provide alternatives for the Legislature 's consideration. Our assessment of an alternative to the Governor's Proposition 39 proposal can be found both in the Proposition 98 report and in a standalone budget brief--2013-14 Budget: Analysis of Governor's Proposition 39 Proposal.

The 2013-14 Budget: Analysis of Governor’s Proposition 39 Proposal

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February 21, 2013 - The Governor’s 2013‑14 budget includes a plan to implement the provisions of Proposition 39, which increases state corporate tax (CT) revenues and requires that half of these revenues for a five-year period be used for energy efficiency and alternative energy projects. The Governor proposes to count all associated revenues toward the Proposition 98 minimum guarantee for schools and community colleges. The Governor also proposes to designate all energy-related Proposition 39 funds to schools ($400.5 million) and community colleges ($49.5 million) in 2013‑14 and for the following four years. The Governor’s proposal to count all Proposition 39 revenues toward the Proposition 98 calculation is a significant departure from our longstanding view that revenues are to be excluded from the Proposition 98 calculation if the Legislature cannot use them for general purposes. In addition, the proposal excludes other eligible projects besides schools and community colleges (such as public hospitals) that potentially could achieve greater energy benefits. Further, the proposal does not coordinate Proposition 39 funding with the state’s existing energy efficiency programs. In view of the above concerns, we recommend the Legislature exclude from the Proposition 98 calculation all Proposition 39 revenues required to be used on energy-related projects and not count spending from these revenues as Proposition 98 expenditures. In addition, we recommend the Legislature direct the California Energy Commission (CEC) to administer a competitive grant process in which all public agencies, including schools and community colleges, could apply and receive funding based on identified facility needs.

Overview of Special Education in California

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January 3, 2013 - Special education is the catch-all term that encompasses the specialized services that schools provide for disabled students. Developing a more thorough understanding of how California’s disabled students are served is the first step towards improving their educational outcomes. Toward this end, our primer is intended to provide the Legislature and public with an overview of special education in California—conveying information on special education laws, affected students, services, funding, and academic outcomes.

Also, see our 2016 animated video series Overview of Special Education in California.

Presentation: California's Fiscal Outlook

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November 15, 2012 - Presented to the California Association of School Business Officials CBO Symposium.

Propositions 30 and 38

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September 17, 2012 - Presented to Alameda County Office of Education

The 2012-13 Budget: Proposition 98 Maintenance Factor: An Analysis of the Governor's Treatment

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May 31, 2012 - The Governor’s Proposition 98 budget package is built on two main assumptions regarding the creation and payment of “maintenance factor.” These two assumptions produce unreasonable outcomes for schools and the rest of the state budget in the near term and long term. In particular, the Governor’s approach would ratchet down the Proposition 98 base in some years (including 2011-12), ratchet up the base in other years (including 2012-13), and, in some cases (including 2012-13 and 2014-15), lead to schools receiving almost exclusive benefit from any growth in state revenues. We recommend the Legislature reject the Governor’s approach and adopt a budget package based upon a more reasonable approach. Specifically, under our recommended approach, maintenance factor is created any time school funding falls below the level otherwise needed to keep pace with growth in the economy, and maintenance factor is paid such that school funding is built up to the level it otherwise would have been absent the earlier shortfalls. We believe our recommended approach both keeps the underlying rationale for the creation and payment of maintenance factor linked and goes furthest in honoring the intent of Proposition 98 and Proposition 111.

Proposition 98: May Revision Overview

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May 21, 2012 - Presented to Assembly Budget Subcommittee No. 2 on Education Finance

State Budget Update

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May 19, 2012 - Presented to California School Boards Association

May Revision Weighted Student Formula Proposal

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May 17, 2012 - Presented to Senate Budget and Fiscal Review Subcommittee No. 1 on Education

Overview of Migrant Education Program

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May 8, 2012 - Presented to Assembly Budget Subcommittee No. 2 on Education Finance

Overview of Migrant Education Program

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May 3, 2012 - Presented to Senate Budget and Fiscal Review Subcommittee No. 1 on Education

Year-Three Survey: Update on School District Finance in California

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May 2, 2012 - This report summarizes findings from our third annual finance survey of California public school districts. Survey responses indicate that districts have experienced notable changes as a result of recent budget reductions, including a smaller workforce, larger class sizes, shorter school years, and less extensive programmatic offerings. Given the slow pace at which the economy is recovering, combined with uncertainty over the outcome of the November election, school districts indicate they are planning for additional reductions in 2012-13. Given these findings, we recommend the Legislature take immediate actions to assist districts in managing their fiscal challenges in 2012-13, as well as initiate long-term improvements to the K-12 funding and accountability systems.

School District Fiscal Oversight and Intervention

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April 30, 2012 - This report provides an overview and assessment of the state's comprehensive system for monitoring the fiscal condition of school districts. Under this system, County Offices of Education review the fiscal condition of school districts at several points during the year and provide additional support for districts showing signs of fiscal distress. In the most serious case—when a district no longer appears able to meet its financial obligations—the state provides the district with an emergency loan and assumes administrative control. Our review indicates that the oversight system has been effective in preserving school district fiscal health and preventing districts from requiring an emergency loan. Most notably, during the more than 20 years the new system has been in effect, 8 districts have received emergency state loans whereas 26 districts required such loans in the 12 years prior to the new system. Additionally, the number of districts experiencing fiscal distress has increased in tight budget times, but without a corresponding increase in the number of emergency loans required. This suggests the system’s structure of support and intervention is serving a critical early warning function—allowing districts to get the help they need while fiscal problems tend to be smaller and more manageable. Given its effectiveness, we recommend preserving the existing system, as it has shown to be a vital tool for fostering the ongoing fiscal well-being of districts.