California Teachers Association Presidents Meeting San Bernardino February 26, 2008 - PowerPoint PPT Presentation

Loading...

PPT – California Teachers Association Presidents Meeting San Bernardino February 26, 2008 PowerPoint presentation | free to view - id: 70365c-ZDIxM



Loading


The Adobe Flash plugin is needed to view this content

Get the plugin now

View by Category
About This Presentation
Title:

California Teachers Association Presidents Meeting San Bernardino February 26, 2008

Description:

Title: Communicating Bad News Author: LMARTINEZ Last modified by: John Lotze Created Date: 3/29/2007 10:23:20 PM Document presentation format: On-screen Show – PowerPoint PPT presentation

Number of Views:28
Avg rating:3.0/5.0
Slides: 21
Provided by: LMAR157
Category:

less

Write a Comment
User Comments (0)
Transcript and Presenter's Notes

Title: California Teachers Association Presidents Meeting San Bernardino February 26, 2008


1
California Teachers Association Presidents
Meeting San Bernardino February 26, 2008
Joel Montero Fiscal Crisis and Management
Assistance Team
2
Talking Points
  • What is the Fiscal Crisis and Management
    Assistance Team (FCMAT)?
  • What Does FCMAT Do?
  • How Does FCMAT Respond to District and Other
    Requests?
  • What Sort of Data Analysis Does FCMAT Untilize?
  • How are Multi-Year Projections Created and Used?
  • What are the Basics of AB 1200 Oversight?
  • How Do Districts Typically Get Into Financial
    Trouble?
  • How Do Districts Assess What They Can Afford in
    the Collective Bargaining Process?
  • What is the Latest with respect to the States
    Budget?

3
What is FCMAT?
  • An Independent/External Public Agency of the
    State designed to Support Districts and COEs in
    areas that are related to
  • School Finance
  • Human Resources
  • Data Management

4
What is FCMAT?
  • A Small Core Staff composed of former School
    District and COE People (certificated and
    classified)
  • FCMAT support is generally requested by School
    Districts
  • FCMAT can be assigned by the COE, Superintendent
    of Public Instruction, or the Legislature

5
What Does FCMAT Do?
  • Solvency The ability of a public agency to meet
    their financial obligations over time
  • Avoid Emergency Loans Cash Insolvency

6
What Does FCMAT Do?
  • Management Assistance by invitation
  • Technical Assistance-Help Desk and Remote
  • Professional/Product Development
  • California Schools Information Services (CSIS)
  • Fiscal Crisis Intervention

7
How Does FCMAT Respond to Requests?
  • Online Job Management System (JMS) www.fcmat.org
  • Study Agreement
  • Field Work
  • ReportFindings and Recommendations
  • Ongoing support and follow up
  • Job Data over time
  • Requests per Year (handout)
  • Total Number and Type (handout)

8
What Sort of Data Analysis does FCMAT Utilize?
  • Fiscal Health Risk Analysis Tool
  • Contains both fiscal (number) and organizational
    impacts
  • Attempts to Identify the Potential Risk of
    Insolvency to the district
  • A Tool Among Other Tools and Indicators

9
How Are Multi-Year Projections Created and Used?
  • FCMAT Budget Explorer
  • External/Independent MYP Tool
  • Web Based Software Available to All
  • Uses Initial Assumptions from the SSC Dartboard
  • Direct Upload from the Districts Official
    Financial Information submitted to the CDE
  • Attempts to predict relative solvency over
    multiple years (1 to 5)

10
How Are Multi-Year Projections Abused?
  • Garbage In, Garbage Out
  • Not Keeping the Assumptions Up To Date
  • Including Unrealistic Assumptions
  • Manipulation of the Numbers to Impact the Fiscal
    Bottom Line
  • MYPs Require Constant Review and Analysis in
    order to Maintain their Viability as a Usable
    Tool

11
The Basics of AB 1200/2756
  • County Office Review at a Minimum of Three
    Specific Data Collection Points
  • Budget Approval
  • First and Second Interim Reporting
  • Positive, Qualified and Negative Certifications
  • COE Must Assess Solvency for the Current Plus One
    or Two Years
  • Disclosures

12
The Basics of AB 1200/2756
  • Possible Actions Under a Qualified Certification
  • Fiscal Expert Assignment
  • Budget Analysis and New Financial Projections
  • Approval of New Debt Issuance
  • Longer Period of Review for Collective Bargaining
    Agreements
  • Encumber all Contracts and Other Obligations
  • Withhold Compensation from Superintendent and
    Governing Board

13
The Basics of AB 1200/2756
  • Possible Actions Under a Negative Certification
  • All Actions Under a Qualified plus
  • Develop and Impose a Budget in Consultation
  • Stay or Rescind Any Action of the Board that is
    Inconsistent with Fiscal Recovery
  • In Consultation with the District Develop a
    Fiscal Recovery Plan
  • Assign a Fiscal Advisor
  • May Not Abrogate any Provisions of the Collective
    Bargaining Agreement

14
The Basics of AB 1200/2756
  • In the Event of Insolvency (Emergency Loan)
  • Authority Transfer to the California Department
    of Education
  • Assignment of a State Administrator
  • Governing Board becomes Advisory Only
  • Recovery and the Assignment of a State Trustee

15
How Do Districts Typically Get Into Financial
Trouble?
  • Overly Optimistic Estimates of the States
    Economy
  • Overly Aggressive estimates of Enrollment,
    Attendance, ADA
  • Failing to React Early Enough to Declining
    Enrollment
  • Failure to Update Budget Assumptions
  • Lack of Monitoring of Staffing Levels
  • Underestimating Automatic Cost Growth
  • Use of One-Time Money for Ongoing Expenses
  • Adversarial Collective Bargaining Process
  • Inadequate or Inaccurate Multi-year Projections
  • Failure to Follow Through on Budget Decisions
  • Poor Budget Monitoring
  • Chronic, multi-year Deficit Spending
  • Inadequate Reserves

16
How Do Districts Assess What They Can Afford in
the Collective Bargaining Process?
  • Big Picture
  • Estimate Next Years Income
  • Enrollment (ADA)
  • Revenue Limit
  • Lottery
  • Special Purpose Funds
  • Local Income
  • Special Education
  • Plan Next Years Expense
  • Actual Salary of Each Employee
  • Actual Benefit Cost of Each Employee
  • New Programs
  • Assumptions re utilities, insurance, capital and
    equipment, etc.
  • Legal Costs
  • Whats is the Balance?

17
How Do Districts Assess What They Can Afford in
the Collective Bargaining Process?
  • The More Granular View
  • COLA 5.00??
  • Deficit Factor (0?)
  • Total Net Impact 5.00
  • Step and Column (1.5)
  • Health and Welfare (1.5??)
  • Enrollment Adjustment (0)
  • Other Fiscal Impacts (0)
  • Total Available (absent change) 2

18
How Do Districts Assess What They Can Afford in
the Collective Bargaining Process?
  • The More Granular View2008-09
  • COLA 4.94
  • Deficit Factor (6.99)
  • Total Net Impact (2.4)
  • Step and Column (1.5)
  • Health and Welfare (1.5??)
  • Enrollment Adjustment (0)
  • Other Fiscal Impacts (0)
  • Total Available (absent change) (5.4)

19
The Latest on the States Budget?
  • The Economy in General
  • Fiscal Year 2007-08
  • State of Fiscal Emergency
  • Mid-Year Cuts?
  • Fiscal Year 2008-09
  • 16 billion projected state deficit
  • Possible Suspension of Proposition 98
  • 4 billion hit to Education
  • Fiscal Year 2009-10

20
Questions
About PowerShow.com