Highlights from CSDC's January 18 State Budget Webinar

Slide 1

Welcome & About CSDC: This webinar is one of the many benefits available exclusively to CSDC Member schools. In addition to webinars, CSDC shares a few other tips for fully utilizing CSDC Membership as well as dates for upcoming CSDC leadership trainings. 

00:03:30

Slide 6

Economic Context: Using an analogy of an “upside-down wedding cake,” CSDC provides a broad overview of the current economic context, starting with macroeconomic trends, then narrowing focus to the state’s economic climate, including:

• Factors driving state revenue declines
• The gap between revenues and current budget estimates
• The state’s long-term deficit spending problem
• Gann limit
• Proposition 98 funding guarantee 

0:21:28

Slide 14

Local Control Funding Formula (LCFF)  & Cost-of-Living Adjustment (COLA): With the Governor proposing to fund an estimated 8.13% statutory COLA, CSDC shares its estimates of 2023-24 LCFF funding rates, as well as multi-year LCFF COLA estimates. CSDC also discusses:

• The LCFF “Equity Multiplier” proposal
• What is currently known about the Governor’s significant “accountability improvements” 
• LCAP reminders
• “Hold Harmless” funding implementation
• Emergency ADA & instructional time protections 

00:44:08

Slide 24

Universal Pre-K & Transitional Kindergarten: CSDC explains whether the Governor will continue along the planned TK expansion path in 2023-24 and beyond. The Governor also proposes to fund continued reduction in TK pupil-to-adult ratio ($165 million). What does current law state about further reductions? Note: Slide concludes at 1:00 after Q&A (below). 

00:49:27

Q&A: Some of the live questions from CSDC Members included:

• Do nonclassroom-based charters have to offer transitional kindergarten?
• Are there any workarounds (such as board policies) for nonclassroom-based charters around transitional kindergarten teacher requirements?
• Is there a dedicated funding source for charter schools looking for facilities to add transitional kindergarten.
• Are there advocacy efforts aimed at including charter schools in “hold harmless” funding protections? 

01:02:04

Slide 26

Arts Funding Switcheroo & Prop 28: CSDC discusses the Governor's proposed $1.2 billion, retroactive funding cut to the Arts, Music, and Instructional Materials Discretionary Block Grant and critiques the Governor's justification for the cut. 

Approved by voters in the last November election, Proposition 28 will boost K-12 education funding by 1% starting next year (2023-24) and require spending the funds on arts instruction. CSDC shares its current per-student funding estimates and discusses the numerous–and often ambiguous–restrictions of which you should be aware. 

01:15:17

Slide 30

Expanded Learning Opportunities Program (ELO-P): This relatively new state categorical program is intended to provide a 9-hour school day as well as an additional 30 days to the school year. But the Governor’s initial budget documentation says little about this program. Will the state remain committed to this expensive new “mandate?” 

01:17:52

Slide 33

Charter School Facilities Grant Program (SB 740): SB 740 is a popular program that reimburses lease/rent costs for charter schools serving 55%+ low-income students. The Governor is proposing ongoing boosts to SB 740, but will these increases still fall short? And what implications will the pending state audit have upon “sidecar” corporations that hold the facilities and leases of some charter schools?

01:22:36

Slide 35

More important updates on a range of topics including the following:

• Universal free meals
• Literacy coaches
• Community schools
• Special education
• Mandate block grant

01:30:48

Slide 40

CalSTRS and CALPERS: At least for the foreseeable future, CSDC estimates that CalSTRS and CalPERS employer contribution rates will remain at their already high levels or increase. But are additional upward increases anticipated? 

01:31:44

Slide 42

Legislative updates: A new legislative session is underway in Sacramento. Very few bills have been introduced ahead of the mid-February deadline, however three new Education Committee chairs have been seated. Will they be friendlier to charter schools? 

01:35:27

Slide 44

CSDC’s Budget Analysis: In the near-term, CSDC thinks the financial picture for K-12 schools looks pretty good, assuming there are no sudden, unanticipated macroeconomic shocks. But what does the longer-term picture look like? And why might an overly optimistic revenue forecast be a concern? 

01:38:28

Slide 45

CSDC’s Initial 2023-24 Planning Suggestions: Features nearly a dozen essential tips you’ll find useful as you begin to develop your school’s 2023-24 budget. 

01:39:20

Slide 46

CSDC’s Key Suggested Budget Advocacy Points: Includes a list of the key elements in the budget proposals that CSDC’s advocacy team will be supporting and lists elements in need of fixes and changes.

01:40:55

Q&A: Some of the questions from CSDC Members included:

• Is ELO-P required–and/or funded–for nonclassroom-based charter schools? 

• In regards to ELO-P, how can charter schools document the 9-hour school day to avoid compliance issues? 

• Does SB 740 still require lottery preference for the closest district school?

• As schools begin their budget development processes for fiscal year 2023-24, what advice does CSDC have for planning for the estimated 8.13% COLA.