How the State budget affects LAUSD

Summary  
Funding for K-14 (including community colleges) education in 2008-09 is essentially at the same level as in 2007-08 which means that $3 billion was cut from K-14 education under the Prop 98 guarantee.

Bottom Line:
Even though LAUSD did get a small COLA (0.6%) and some new money which can only be spent on specific schools and programs (Program Improvement and QEIA), it is not enough money to absorb the increase costs of doing business or inflation. LAUSD balanced its budget by proposing 4 furloughs days.  The state budget does not give LAUSD enough money to eliminate all those days.  REGARDLESS OF LAUSD BUDGET, LAUSD MUST NEGOTIATE WITH SEIU LOCAL 99 HOW AND WHETHER FURLOUGH DAYS ARE IMPLEMENTED.

Categoricals:
Many SEIU Local 99 employees’ jobs are funded through “Categoricals.”  Categoricals refer to specific funds which are designated for specific purposes (transportation, food services, special education and early education

1. Categoricals Generally: No “Cost of Living Allowances” (COLAs) for categorical programs in K-12 school districts or community colleges.  However, SEIU, CSEA and LAUSD fought back an effort by the Governor to cut categoricals by 7% (LAUSD’s portion would have been $135 - $140 million).  
2. Program Improvement Schools - Program Improvement schools in corrective action will receive anywhere between $50,000 and $150,000 additional funding depending on the severity of their improvement needs. 300 schools are in Program Improvement status in LAUSD.
3. School Transportation - Like the other categorical programs, school transportation did not get cut, but it did not get a COLA either and this is especially bad given that costs for gas have gone up nearly 20% percent! However, LAUSD has said that it will maintain its same level of service.
4. Special Education – The budget included an adjustment factor for special education funding for school districts with a high number of special education students. This factor prevented LAUSD from losing a substantial amount of special education funds.
5. Quality Education Investment Act (QIEA) – The budget provided only 80% of the first payment to the QEIA program totaling approximately $283 million. LAUSD should receive a substantial amount of this money.

General Fund – Undesignated Funds:

1. The General Fund received a 0.6% COLA which is about $35 to $40 per student in K-12 school districts. However, it should have been 5.5% under Proposition 98.
2. Community Colleges will also receive the 0.6% COLA.
3. School districts and community colleges should have received $3 billion more under Proposition 98.

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