benchmarks for budgeting: how do you measure up?€¦ · expected outcomes 99 1. understand charter...

Benchmarks for Budgeting:

How Do You Measure Up?

MARCH 12, 2019

CCSA CONFERENCE

22

1. Introduction

2. Revenues

3. Expenses

4. Fiscal Health

5. Panel Q&A

Contents

Introduction

44About the Presenters

Yoon

Chang

Director of

Finance and

Administration,

Key Academy

Steve

Good

Executive

Director, Five

Keys Schools

and Programs

Wanny

Hersey

Founding

Superintendent

Bullis Charter

School

Peter

Laub

EVP & Chief

Client Services

Officer, EdTec

Trevor

Skelton

Associate Client

Manager,

EdTec

55Introductions – Pollev.com/edtec599

99Expected Outcomes

1. Understand charter school financial benchmarks in key budget areas

2. Explore ideas on how you can gain greater efficiencies in your budget

3. Understand how your school may be unique from the benchmarks

Keep in Mind:

▪ Public data do not include detail beyond line-item level

▪ Data are a snapshot in time

▪ Data vary greatly in composition, geography, and demographics

▪ This information is not intended to:

– Dictate how your charter’s budget should look

– Justify expenditures or set salary schedules

– Be the sole input for any line item or budget as a whole

1010

Data Sources:

▪ Unaudited Actuals Financial Data (CDE)

▪ Public Schools Data Files (CDE)

▪ CALPADS UPC Source File (CDE)

▪ SB740 grantee lists (CSFA)

▪ County Data (U.S. Census Bureau)

▪ EdTec Client Data

Methodology:

▪ Aggregated and linked related charter data in MS Access

– Created categories for comparison (time, region, size, age, unduplicated pupil % [UPP])

▪ Analyzed data and created visualizations in MS Excel

– $ per ADA, quartiles, median, weighted vs. simple average (“composite” vs. school)

Disclaimer: only data for charters who submit UARs at the school level, thus, sample

sizes and composition vary over time

– LAUSD charters missing in prior years included in FY17-18 data

Data Sources and Methodology

1111

(summary of the dataset – NOT all charters in CA)

There is no “average” charter, true – but it’s important to

understand the data at a glance!

Descriptive Statistics

Fiscal Year 2013-14 2014-15 2015-16 2016-17 2017-18

Number of Charters (n) 588 621 658 667 927

Bay Area, North & Central Coast 31% 31% 32% 31% 23%

Central Valley 12% 13% 12% 11% 9%

Inland Empire 9% 8% 8% 8% 6%

Los Angeles 15% 16% 15% 15% 36%

Northeastern California 13% 13% 14% 14% 11%

San Diego 20% 19% 19% 20% 15%

Total ADA 258,770 278,181 297,856 319,371 460,516

Average ADA 440 448 453 479 497

Median ADA 320 321 327 352 379

Average School Age 7 7.5 8 9 9

Average UPP 60% 60% 61% 61% 68%

Revenues

1313

Revenue sources similar over time

Revenue Breakdown

LCFF Sources Federal Revenue

Other State Revenue Other Local Revenue

76%

6%

11%

7%

FY 2013-14

77%

6%

11%

6%

FY 2017-18

1414

$9,513

$13,078

$6,887

$9,633

$6,000

$7,000

$8,000

$9,000

$10,000

$11,000

$12,000

$13,000

$14,000

2013-14 2014-15 2015-16 2016-17 2017-18

Ave

rage

Reve

nu

es/A

DA

Total Revenues LCFF

Averaged 9% annual growth of total and LCFF revenues since 2013-14

Revenue Over Time

40%

increase

37%

increase

1515

Low UPP schools outpaced with LCFF implementation

LCFF Revenue by UPP Over Time

$6,000

$6,500

$7,000

$7,500

$8,000

$8,500

$9,000

$9,500

$10,000

$10,500

$11,000

2013-14 2014-15 2015-16 2016-17 2017-18

Ave

rage

LC

FF

Reve

nu

es/A

DA

Very Low UPP (<25%) Low UPP (25-55%) Medium UPP (55-85%) High UPP (>85%)

1616

Overall trend – growth from all revenue sources on average (~30%)

Supplementing the Gap: Other Revenues

$716 $926

$835

$1,089

$1,109

$1,305

$529

$147

$-

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

$4,000

2013-14 2014-15 2015-16 2016-17 2017-18

Ave

rage

Reve

nu

es/A

DA

Federal Local All Other State One-Time Funding

1717

Higher UPP directly translates to more Federal Revenues

FY18 Federal Revenue by UPP

$300

$489

$765

$1,412

$1,255

$-

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

Very Low (<25%) Low (25-55%) Medium (55-85%) High (>85%)

Fe

de

ral R

eve

nu

es/A

DA

Average Median

1818

Local/fundraising consistently fill the gap for Very Low UPP

Local Revenue by UPP Over Time

$-

$100

$200

$300

$400

$500

$600

$700

$800

$900

$1,000

2013-14 2014-15 2015-16 2016-17 2017-18

Me

dia

n L

oca

l R

eve

nu

es/A

DA


1919

Bay Area, Coastal more big donors/local revenues – LA most consistent

FY18 Local/Fundraising Revenue by Region

$1,864

$422

$531

$1,118

$662 $640 $665

$792

$-

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

$1,800

$2,000

Bay Area, North

Coast, Central

Coast

Central Valley Inland Empire Los Angeles Northeastern

California

San Diego

Lo

ca

l R

eve

nu

es/A

DA

Average Median

2020

School local revenues vary greatly by County Income Quartiles

FY18 Local/Fundraising Revenue by County Income

$552 $528

$899

$1,301

$642

$477

$-

$200

$400

$600

$800

$1,000

$1,200

$1,400

Q1 (< $48K) Q2 ($48K-$57K) Q3 ($57K-$72K) Q4 (> $72K)

Lo

ca

l R

eve

nu

es/A

DA

County Household Income Quartile

Average Local Revenues/ADA Median Local Revenues/ADA

2121

Sizable growth in LCFF to target, but only COLA growth on the horizon

The Future of LCFF

$6,000

$6,500

$7,000

$7,500

$8,000

$8,500

$9,000

$9,500

$10,000

$10,500

$11,000

2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22

LC

FF

Reve

nu

es/A

DA

Actual Projected

Target

funding

reached

2222Revenue Summary

Enjoyed revenue increases in past five years led by full LCFF implementation, but uncertain future

Disparities in government funding often supplemented with local funding, where available

ADA and student demographics a larger factor than ever in revenue determination, budgeting, and attaining long-term sustainability

Expenses

2424

Expenses as a % of total budget similar over time

Expense Breakdown

Certificated Salaries Classified Salaries

Employee Benefits Books and Supplies

Services and Other Operating Expenses Capital Outlay

38%

11% 11%

9%

27%

1%3%

FY 2013-14

35%

12%13%

8%

28%

2%2%

FY 2017-18

2525

Certificated salaries the majority of salaries and benefits

FY 18 Compensation Makeup

Certificated

Salaries

35%Classified

Salaries

12%

Employee

Benefits

13%

Books and Supplies

8%

Services and

Other Operating

Expenses

28%

Capital Outlay

2%

Other Outgo

2%

Salaries and

Benefits

60%

2626

$8,411

$12,011

$5,101

$7,135

$4,000

$5,000

$6,000

$7,000

$8,000

$9,000

$10,000

$11,000

$12,000

$13,000

2013-14 2014-15 2015-16 2016-17 2017-18

Me

dia

n E

xpe

nse

s/A

DA

Total Expenses/ADA Compensation Expenses/ADA

Averaged 9% annual growth of expenses & comp. since 2013-14

Expenses Over Time

43%

increase

40%

increase

2727

Older charters typically spend more on compensation, less on services

FY18 Expenses as a % of Overall Budget

0%

5%

10%

15%

20%

25%

30%

35%

40%

Certificated Salaries Classified Salaries Employee Benefits Books and Supplies Services and Other

Operating Expenses

Pe

rce

nt

of

Exp

en

se

s

1 - 4 Years 5 - 8 Years 9 - 14 Years 15+ Years

2828

Expenses vary greatly by UPP, especially in Supplies, Services + Other

FY18 Expenses/ADA by UPP

$3,884 $3,780 $4,239 $4,393

$1,323 $1,144 $1,292

$1,603

$1,515 $1,410

$1,512 $1,654 $432

$589

$848

$1,113 $2,018 $2,471

$3,120

$4,236

$-

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000


Me

dia

n E

xpe

nse

s/A

DA

Certificated Salaries Classified Salaries

Employee Benefits Books and Supplies

Services and Other Operating Expenses

2929

$69,324

$79,128

$74,714

$50,000

$55,000

$60,000

$65,000

$70,000

$75,000

$80,000

$85,000

2012-13 2013-14 2014-15 2015-16 2016-17

CA Average Public School Teacher Wage Growth = CA Cost of Living Increase

Averaged 3.4% annual salary increases across districts/charters

CA Public Schools Average Teacher Salary Over Time

14%

increase

3030

Spending in 1100, 2100 fairly consistent across quartiles – UPP, size, etc.

FY18 Direct Instruction Salaries/ADA by UPP

$3,805 $3,633

$3,833 $3,947

$-

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

$4,000

$4,500

Very Low (<25% UPP) Low (25-55% UPP) Medium (55-85% UPP) High (>85% UPP)

Exp

en

se

s/A

DA

Average Median

3131

STRS, PERS, and H&W outpacing growth of Total Salaries

Employee Benefits as a % of Total Salaries

5% 6% 7% 8%9%

1% 1%1%

1%2%

11% 11%11%

12%

12%

7% 7%

7%7%

7%

0%

5%

10%

15%

20%

25%

30%

35%

2013-14 2014-15 2015-16 2016-17 2017-18

Pe

rce

nt

of

Tota

l S

ala

rie

s

STRS PERS Health & Welfare All other benefits

3232

Expect an overall operating loss – barely breakeven with just cost of food

FY18 Food Service

*Due to data limitations, includes EdTec client data and SACS data only, n = 192

Note: variations in coding and low sample size may be skewing data results

Revenue/ADA Food

Expenses/ADA

Operating

Income/ADA

% of Revenue

Gain/Loss

Average $530 $469 $61 10%

Median $484 $468 $20 5%

Max $1,380 $1,180 $1,088 100%

Min $64 $0 ($267) -335%

3333

Facilities expenses rising – and even SB740 schools pay their “fair share”

Facilities Expenses Over Time

includes 5600 Rentals, 6000s Facilities & Depreciation costs

$410 $387 $492

$582

$436 $483 $554 $575

$-

$200

$400

$600

$800

$1,000

$1,200

$1,400

2013-14 2014-15 2015-16 2016-17

Me

dia

n E

xpe

nse

s/A

DA

SB740 Net Expenses SB740 Median Revenue Non-SB740 Expenses

3434

Very unpredictable and great variation depending on setup (SELPA/district)

FY18 Special Education

SELPA Charters

(n = 51)Revenue/ADA Expenses/ADA Operating

Income/ADA

% of Revenue

Gain/Loss

Average $663 $1,282 ($503) -65%

Median $724 $1,003 ($304) -46%

*Due to data limitations, table includes EdTec client data only, n = 51

Note: variations in coding and low sample size may be skewing data results

Average district FY18 contribution to SpEd from General Fund per ADA:

$1,257!

3535Expense Summary

Overall, expenses seem to be matching revenues in growth over time

Growth of benefits expenses becoming a larger budget concern for charters

Risk and uncertainty always present and demand contingency budgeting – especially facilities, SpEd

Fiscal Health

3737

FY 2015-16 strongest for charters, but continuing to improve

Operating Income per ADA Over Time

$-

$100

$200

$300

$400

$500

$600

$700

$800

$900

2013-14 2014-15 2015-16 2016-17 2017-18

Average Median

2013-14 2014-15 2015-16 2016-17 2017-18

Net Income School Median Percent of Expenses 5% 3% 8% 4% 3%

Net Income School Median Percent of EFB 18% 15% 27% 16% 13%

3838

School average fund balance growing – up to 41% for charters

Fund Balance as a % of Expenses Over Time

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

2013-14 2014-15 2015-16 2016-17 2017-18

Fu

nd

Ba

lan

ce

as a

% o

f E

xpe

nse

s

Average Median

3939

Older schools able to accumulate greater and greater fund balance

FY18 Fund Balance as a % of Expenses by Age

10%

19%17%

20%

34%

54%

62%

0%

10%

20%

30%

40%

50%

60%

70%

1 2 3 4 5 - 8 9 - 14 15+

Fu

nd

Ba

lan

ce

as a

% o

f E

xpe

nse

s

Years in Operation

Average Median

4040

Varies by school age, but recommend building up to comfortable 80+ days

FY18 Days Cash on Hand School Distribution

0

20

40

60

80

100

120

140

160

180

200

0 30 60 90 120 150 180 210 240 240+

Sch

oo

l C

ou

nt

Days Cash on Hand

Median

= 80

Q1 =

31

Q3 =

147

Average

= 111

4141

Budgeting and stakeholder engagement

▪ Averages and medians don’t tell the whole story. Every school has variances

from the norm – but essential to be able to explain their causes and possible

financial implications

▪ Budgeting and financial review as an ongoing, year-long process

▪ Communicating budget information and comparative data with parents,

community members, staff, grantees, etc. can foster engagement,

understanding, and transparency with stakeholders

Making the Most of the Benchmarks

Panel Q&A

4444

▪ https://www.cde.ca.gov/ds/fd/fd/

▪ https://www.cde.ca.gov/ds/si/ds/pubschls.asp

▪ https://www.cde.ca.gov/ds/sp/cl/

▪ https://www.cde.ca.gov/fg/fr/sa/cefavgsalaries.asp

▪ http://www.dof.ca.gov/Forecasting/Economics/Indicators/Inflation/

▪ https://www.treasurer.ca.gov/csfa/csfgp/awardees.asp

▪ https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml

?src=CF

Links to Public Data Sources

Special thanks to Joanna Han and Michael Lee, EdTec, for their contributions to the

data collection and analyses utilized throughout this presentation.

https://www.cde.ca.gov/fg/fr/sa/cefavgsalaries.asp




http://www.dof.ca.gov/Forecasting/Economics/Indicators/Inflation/

https://www.treasurer.ca.gov/csfa/csfgp/awardees.asp

https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?src=CF

4545

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supporting charter schools with business, operations, and performance services.

▪ We are motivated by our vision to have the greatest positive impact on the quality

of public education, as evidenced by our successful long-term partnerships with

charter schools across the country.

▪ Our exceptional staff understands the needs and workings of charter schools

inside and out, and supports schools with a comprehensive range of services

including charter petition development, back office, school data and compliance,

school software, and consulting.

About EdTec

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retention rate

300+

partner schools

18 years of

charter focus

benchmarks for budgeting: how do you measure up?€¦ · expected outcomes 99 1. understand charter...

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