San Francisco school board holds Tier 3 funds hearing and first reading of 2013—14 recommended budget

The San Francisco Unified School District Board on June 11 held a public hearing on the districts proposed flexible use of state Tier 3 categorical funds and reviewed the first reading of the recommended 2013—14 budget.

Staff read the Tier 3 resolution and explained that state law requires a public hearing and explicit identification of how those categorical funds would be used if they are transferred to the general fund. The resolution cites enacted state budget language (SBX 34; ABX 42) and Education Code provisions governing tiered categorical flexibility.

Deputy Superintendent and budget staff told the board the districts recommended budget reflects the governors May revision and an anticipated initial Local Control Funding Formula (LCFF) allocation increase for the district, roughly $15,000,000 in baseline funding for 2013—14 under current projections. Staff said district beginning unrestricted fund balance for 2013—14 is approximately $34.1 million and the proposed budget draws the fund balance down to the minimum required reserves while meeting statutory reserve requirements.

Commissioners pressed for clarity on several points. Commissioner Wynne asked whether Tier 3 approvals would need to be undone if the LCFF resource codes change; staff said the hearing is required under current law and that next year will be a transitional period while state guidance is finalized. Commissioner Marazzi asked staff to explain apparent carryover or underspending in specific categorical funds such as PE teacher incentives and gifted-and-talented line items.

Special education costs and pension contribution increases drew particular attention. Staff highlighted that special-education staffing and transportation costs have pushed increases in district unrestricted contributions to special education and that employer pension contributions for certain employee groups will increase by roughly 3 percentage points of payroll next year. Deputy Superintendent noted that the district will continue to budget carefully and work through multiyear projections.

The board approved the Tier 3 schedules at the hearing and took the first reading of the recommended budget; commissioners directed staff to provide additional variance narratives, clearer school-site tables by area, and a deeper Augmented Budget Committee discussion before the boards second reading. Staff advised that the second reading and final adoption are scheduled for June 25 and that any needed adjustments based on the state budget or further committee recommendations would be handled procedurally before final adoption.

Speakers quoted in this article come from the meeting transcript and include Superintendent remarks and multiple deputy superintendents and commissioners during budget questioning.