Budget Update

January 15, 2013

1.      At this point the governor is not projecting any State budget cuts to education in 2013-14.

2.      Passage of Proposition 30 has protected K-12, but return to full funding is still years away.

3.      Watch Federal funding!  We could have cuts in 2013-14.

4.      Potential for greater local control with “LCFF” (Local Control Funding Formula).

5.      The state will use a portion of future funding, which includes a Cost of Living Adjustment (COLA) to offset state deferrals, deficits, and to fund the new LCFF (Local Control Funding Formula).

6.      Local Control Funding Formula (LCFF) is still in development at the state level and district funding is uncertain.

Important Terms

• Local Control Funding Formula: A new proposed funding that moves almost all categorical to a locally controlled base funding.
• Deferral– Payments made next year which are actually owed this year.
• Deficit– The state will continue to withhold 22 cents of each dollar, 78 cents of each dollar is paid to school districts and the 22 cents is considered an IOU.