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Health & Fitness

CFO Corner: Governor's May Revise and What It Means for NUSD

Each January the Governor releases the proposed state budget for the next year and in May the budget is updated based on tax revenue received between January and April. This year state cash receipts are higher than the January 2013 budget due to the change in the Federal personal income tax laws, the growth of the federal and State economy, and the drop in the unemployment rate. With these economic factors and the passage of Proposition 30 in November 2012, education in California will be funded at $56.5 billion in the current year and $55.3 billion in 2013-14, up from the $47.3 billion funded in 2011-12. 

The Governor's January proposed budget included a new way of distributing revenue to school districts. This new funding formula is called Local Control Funding Formula (LCFF) and is continued in the May Revise. It provides funding with a base allocation grant with additional funding based on the demographics of the school district. Those demographics include English Language Learners (ELL), pupils eligible for free and reduced-price meals (FRL), and foster youth. Additionally, the LCFF provides different funding levels for early primary, primary, middle, and high school grade spans. Added funding for K-3 Class Size Reduction and 9-12 Career-Technical Education is also factored into the formula. The LCFF would replace revenue limits and most categorical programs. The LCFF is based on restoring school districts to the level of funding received in 2007-08 from revenue limits and most categorical programs over the next 7 years.  

For NUSD and all California school districts, the LCFF provides that in 2013-14, no school district will receive less funding than received in 2012-13. Most districts will experience an increase in funding for the 2013-14 year and subsequent years due to the passage of Proposition 30 and the recovery of the economy. Those districts that have a concentration of more than 50% of ELL, FRL, and foster youth students will most likely receive more State funding under this new funding formula. Districts, such as NUSD, that have a student population less than 50% of those demographic categories will not receive this additional funding.  

NUSD is expected to receive approximately $1.4 million more in funding should the LCFF be approved by the legislators. This is approximately a 3.5% increase in state funding. Additionally, the Governor provided in the May Revise a one-time allocation of $1 billion to fund the implementation of the Common Core State Standards. As districts move to implement this change in instructional delivery and testing, this new funding is critical as the need for professional development, new instructional materials, and technology would be difficult to adequately address given the many years of budget reductions. For NUSD, this funding is estimated at $170 per student or approximately $ 1.3 million and will be distributed next year to be spent over two years. For a complete review of the May Revise see the Powerpoint presentation here. The Special Board Meeting on June 11 will be a Budget Workshop beginning at 5:30 pm at the District Office.  

Karen Maloney
Chief Financial Officer

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