Statestabilization6.5.09final

Federal Stimulus Stabilization Funding Understanding the Estimated Funding June 5th

06/07/09 11:07

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The Federal Stabilization funding is one part of the stimulus package. Other restricted stimulus funds are: - Economically Disadvantaged Students (Title I) - Special Education (IDEA)

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The allocation of California’s Federal Stabilization funding is complex and has several variables that impact the amount that LAUSD will receive. Federal State Stabilization funds $4.875 billion are allocated in two allocations. The first

1 allocation consists of 2/3 of the funding ($3.102 B) and will be released in May and July. The second allocation of the remaining 1/3 of the funding will be released in October.

2 Funds are allocated between K-12 and Higher Education Institutions (community colleges and universities) based on the proportion of the state budget cuts made to each.

3 The K-12 funds are allocated based on revenue limit (unrestricted operating funds) and

categorical program funding (restricted supplemental funds). Given the needs of our students, LAUSD will receive more if the funds are allocated based on categorical funding.

As of June 5th, we have received $164M of our estimated Federal State Stabilization funding. 06/07/09 11:07

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WE MUST WORK TOGETHER TO ENSURE SACRAMENTO GIVES OUR CHILDREN THE AMOUNT OF MONEY THEY DESERVE Total Amount for Education $4.875 Billion

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1st installment (2/3)

2nd installment (1/3)

$3.102 Billion

$1.773 Billion

2 Higher Ed $537M 3

K12 $2.56B

Higher Ed*

K12 ~$1.11 B

LAUSD $354M

$663 M

LAUSD $92M$182M

Rev Limit (62.5%)

Categorical (37.5%)

Rev Limit** (?%)

Cat. (?%)

LAUSD: $164M

LAUSD: ~$190M

LAUSD: $TBD?

LAUSD: $TBD?

Allocated in May

July

October

October

*If the State cuts Higher Education more, our State Stabilization funding goes down **If the State allocates more to Revenue Limit our State Stabilization funding goes down 06/07/09 11:07

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Reconciling the numbers – we have only received $164M Item 4/14 6/1 6/4 Comments LAUSD initial estimate

$320 M

$387 M

Estimated set asides (State & County)

$67 M

$0 M

Estimate of lobbying efforts for a 50/50 allocation Total Estimated

• We learned the State & County will not be taking anything off the top

$167M

Amount

$446M$536M

Actual 1st Allocation

$164 M

Actual 2nd Allocation Total Actual 06/07/09 11:07

$387M

$554M

• On 6/1 we were told the State would allocate 50/50 on 6/4 we learned that they allocated • 60/40. The governor cut community colleges so we don’t know the amount that will be allocated K12 vs. Higher Education for the 2nd installment • We don’t know what the split b/w revenue limit and categorical will be for the 2nd installment $TBD – July $TBD – October

$0 M

$0 M

$164 M 5

Conclusion: Given the uncertainty of the exact amount of the federal stabilization funding that we will receive, we need to budget with alternative guarantees that can be adjusted to reflect the actual amount that we receive. Call to Action! Write to the Governor http://gov.ca.gov/interact • No more cuts to education! • Allocate stimulus stabilization funding to restore the disproportionate cuts that were made to high need students (i.e., English Language Learners, low income families) 06/07/09 11:07

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