School Budgets Simplified

Our students' experience depends on public funding.

Every school employee is called to be a good steward; the public is counting on us to participate intelligently in the process.

CalProEd's Method makes it as easy as 1, 2, 3!

1) Calculate totals funds and real reserves using district Unaudited Actuals

• • Use Unaudited Actuals as base because it's:

    • The document turned in to the state annually

    • The only document that annually shows a district's actual spending and ending balances

      • Actual spending is only presented and discussed in public once a year

    • Approved at September Board Meeting

    • Due to the County Office of Education by October 1st

    • A consistent moment in time

  • Understand that there are "Other Funds", not just the General Fund.

  • Understand that school boards move, "restrict", dollars from the General Fund to restricted funds with a majority vote.

    • Understand that they can return the same dollars to the General Fund with another majority vote

  • Establish patterns with undeniable facts.

    • Track annual actual spending via ending balances

      • Note "Ending Fund Balance" for each fund, then total.

        • Ending fund balances are on the second page of each fund's respective "Expenditures by Object" report ( line item F2)

    • Divide "Ending Fund Balance" total by "Total Expenditures" to calculate a district's real reserve amount.

    • Check board agenda for "revisions," recaptures", etc .resolutions to avoid budget "surprises"

2) Work backwards to figure out district's definition of "Reserves":

*Unrestricted General Fund Ending Balance (Fund 3) or *Total General Fund Ending Balance (Funds 1-8)

Total Expenditures Total Expenditures

*With or without Special Reserve for Other Than Capital Outlay (Fund 17)?

• Districts calculate "reserves" based on some if not all of the General Fund and sometimes include Fund 17.

  • Even more confusing when discussed due to the 3 Categories:

    1. Restricted

    2. Unrestricted,

    3. Total of both

  • Some districts still calculate using only "Unrestricted" General Fund Ending Balance

• • • Practice should have gone away when LCAP came in

    • "Categoricals" went away

    • Most districts make annual "Contributions" from "Unrestricted to "Restricted"

    • Formula encourages deficit spending to minimize "Reserve"

      • Expenditures outside the budget process often have little if any oversight

*** "Other Fund (9-90)" balances ARE NOT part of "Reserves" ***

Millions and sometimes billions of dollars have been left on the table, for years!

3) Track changes and discrepancies annually

• Get historical data from ed-data.org

  • Follow directions to find financials

    • On CalProEd's "EdData for Old Data" webpage

    • Figure % of increase/decrease for each

      • (New balance- Prior Balance)/Prior Balance

    • Email Michelle for help:

      • thembfix@gmail.com

  • Compare enrollment and revenue projections

    • Not uncommon to find gross underestimations

      • 3 years is a pattern

    • Worst-case scenarios 3-year projections never manifest

    • Credibility is in question when:

      • • Revenues regularly exceed "deficit budgets"

          • Pattern of underestimating revenues and or enrollment

        • Districts then increase expenses mid-year and then claim they are "deficit spending"

          • Easy to rebut with real data

            • Ending balance increases

        • Deficit spending is a way to spend down large reserves with little if any oversight.

      • Districts often share out media from ultra fiscally conservative School Services and ACSA

        • Membership dues for participation usually paid for by district

Make educating district students the priority:)