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Joel Montero, CEOFiscal Crisis and Management Assistance Team
California County Superintendents Educational Services Association
Business and Administration Steering Committee
Fall Conference
San Bernardino and Yolo Counties
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AB 1200 Art and Science
• Is AB 1200 still relevant in the LCFF era?
• Is the same application mode for AB 1200 still applicable?
• How shall you assess: (science)
• Budget development• Interim reports• Oversight support
• Think concept and impact! (art)
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AB 1200 the COE and Evolution
• How the funding formula impacts the COE reality
• COE positioning and market share in the new reality
• Finding and adding value opportunities
• The challenges of a lack of common ground
• Individualism and Situational Guidance
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Putting the LCFF in Context
• It’s a funding model and it’s confusing• COLA and Gap Funding
• We are in transition• There are more issues than there are answers
• Fair Share & Basic Aids• Necessary Small Schools• Provision 2/3 Schools• County office ADA transfer• Transportation• Annual Audit Guide• Revenue Projections
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Oversight—So What Really Changes?
• Budget approval
• AB 1200 disclosure and collective bargaining
• Budget/LCAP coordination
• Transition planning
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Some Potential Pitfalls for Oversight
• Not recognizing that change has occurred and attempting to put the square peg of LCFF in the round hole of Revenue Limit
• What the hell is a “paradigm shift” anyway?
• Not understanding the new definitions for old terms—it’s a language issue
• Understanding that averages now seldom apply
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Some Potential Pitfalls for Oversight
• Getting caught up in the revenue rhetoric and the use of multiple tools
• Multi-year projections
• Not understanding the significance of data management
• SACS and putting too much trust in the software
• TRC disabling• Potential of revenue overstatements, etc.
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CASH
• It’s still an issue!
• It’s why districts go insolvent
• Superintendents and boards still don’t get it
• Labor wants to ignore it
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What Can Districts Do Now in Anticipation of an Uncertain Cash Environment
• Have a system in place to analyze and monitor cash flow—all funds• Report cash flow status and projection to the board on a regular basis• Conserve cash when possible—all funds• Build Reserves/Fund Balance—all funds• Consider creating spending plans to manage available cash• Consider options for dry period financing (borrowing)• Borrow like a booger!• Don’t run out!
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Insolvency
• Regardless districts still fail for the same old reasons
• Most failures occur after a period of perceived fiscal health
• Fiscal emergency workload
• Changes in emergency appropriations
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FCMAT/CSIS Puts the “D” in Data
• Data Management
• What’s important here and why
• Data quality is essential
• Understanding CALPADS
• How do you get help if you need it?
• Viewing district reports
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LCFF CALCULATOR
• Help is on the way…….
• It’s a budget development tool• It’s an analysis tool• It’s a training tool• It’s an MYP utility
• It’s Cool!