Charter School CapitalOn May 14th the Governor Jerry Brown released his May Revision. The May Revision contains the Governor’s adjustments to his January budget proposal. After his budget was released in January the legislature’s budget subcommittees held hearings on all aspects of the proposal. The hearings wrapped up last week and now they will begin to hear the changes that are proposed in the May Revision. In short the state’s revenues are way up above expectations and Proposition 98 will receive most of the new revenues. That means that education is the big winner in the May Revision.
Here are the major highlights from the May Revise to view the entire document go to www. dof.ca.gov and click the link for the 2015-16 May Revision Summary.
 
Prop 98 increases $5.8 billion, bringing the guarantee to $68.4 billion:
2013-14 – $240 million
2014-15 – $3.1 billion
2015-16 – $2.7 billion
$5.4 billion of the Prop 98 increase goes to Maintenance Factor – but this does not retire all of the debt.
One-Time Money – The Administration proposes a total of $3.5 billion in one-time funds. This reflects a $2.4 billion increase over the January proposal to provide $1.1 billion in one-time funds. These dollars will go out per ADA and be applied to prior year mandate claims.
LCFF The administration proposed to increase the LCFF funding by $2.1 billion over his January proposal, to a total of $6.1 billion. This would increase gap closure funding from 38% to 53% in 2015-16 – roughly leaving LCFF approximately 60% implemented.
CTE – Modifies the Governor’s January proposal by increasing the overall investment over three years from $750 million to $900 million. With a new implementation mechanism, which would provide the following levels of funding:

  • $400 million – 1st year
  • $300 million – 2nd year
  • $200 million – 3rd year

The administration also proposes a new phased-out matching program, as follows:

  • 1 to 1 match – 1st year
  • 1.5 to 1 match – 2nd year
  • 2 to 1 match – 3rd year

The Administration wants to keep a “competitive” program.
Special Education – In response to the Special Education Task Force report, the Administration proposes to spend $60.1 million on the following:

  • $30 million for Early Education for special needs pupils
  • $12 million to provide 2500 additional slots for Preschool students with special needs
  • $10 million for school-wide data support
  • $1.7 million for alternative dispute resolution
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Since the company’s inception in 2006, Charter School Capital has been committed to the success of charter schools. We help schools access, leverage, and sustain the resources charter schools need to thrive, allowing them to focus on what matters most – educating students. Our depth of experience working with charter school leaders and our knowledge of how to address charter school financial and operational needs have allowed us to provide over $1.8 billion in support of 600 charter schools that have educated over 1,027,000 students across the country. For more information on how we can support your charter school, contact us. We’d love to work with you!

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