Download - Charter School Capital California Budget Impact On Charter Schools

Copyright © 2012 Charter School Capital

Understanding the CA State Budget Impact on Charter Schools


TODAY’S SPEAKERS

1

Chas Cardall Branche Jones CA LEGISLATIVE

CONSULTANT

Miles Denniston CHARTER SCHOOL

MGT CORP ORRICK

John Helgeson Stuart Ellis CHARTER SCHOOL

CAPITAL CHARTER SCHOOL

CAPITAL


AGENDA

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THE SOLUTION

QUESTIONS

THE IMPACT

THE ISSUE


THE ISSUE

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California State Budget

•  What is the real issue? -  Biggest impact has been glossed over

-  Focus has been on tax increase initiatives

-  But, immediate impact is from 21.2% reduction in general purpose entitlement funds


THE ISSUE

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•  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


THE ISSUE

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•  Who does this impact? -  Impacts all public school – including charter schools

-  Most charters don’t have the savings to absorb this state payment delay


THE ISSUE

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•  When will this occur? -  Already has - began in July

-  Schools with deferral waivers may not have noticed this yet


THE ISSUE

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•  How does Prop 30 pay a role in this discussion? - Payment delay taking place now regardless of November

results


THE IMPACT

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Deferral Comparison

•  How does this compare to others? -  Expect monthly deferrals that result in 21.2% of your annual

budget

-  Delayed until June

-  Each monthly payment will be less than originally projected


THE IMPACT

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An exercise to put this deferral in context…


THE IMPACT

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November Ballot Initiatives

•  Background on Prop 30 + Prop 38


THE IMPACT

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•  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


THE IMPACT

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•  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


THE IMPACT

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•  Only Prop 38 passes

-  Not clear what may happen with funding timing and amounts

-  Some implementing legislation seems likely


THE IMPACT

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•  Both Prop 30 and Prop 38 Pass

-  Initiative that receives the most votes will be implemented and the other will not be effective


THE IMPACT

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•  Scenarios explained

•  (BAR CHART GOES HERE)

0%

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Fiscal Year 2012-2013

Base Line

2011-2012

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Not Pass


THE IMPACT

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0%

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Fiscal Year 2012-2013

Base Line

2011-2012

Pass

Not Pass


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 new budget will look like

-  Plan, plan, plan


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


THE SOLUTION

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We’re Here To Help You

•  Just ask

-  Charter School Capital and CSMC are both well versed on this subject

-  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/charter-funding-blog/


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QUESTIONS?


Stuart Ellis: [email protected]

Contact Information:

Toll Free: 877.272.1001

charterschoolcapital.org

John Helgeson: [email protected]

Download - Charter School Capital California Budget Impact On Charter Schools

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