Finance Flashcards
The district superintendent must be replaced when
The amount of the districts revenues or exceeded by the district financial obligation
In most school districts the following percentage of the budget is for personal salaries and benefits
85%
The purpose of the district budget calendar is to guarantee fiscal solvency true or false
False
The major intent of a AB 1200
Impose greater fiscal accountability controls on school districts
Budget
A spending plan to accomplish instructional objectives
The constitutional deadline in California for the state legislative to adopt the state budget
June 15
What is NOT used to estimate how much a district will need to plan for the following years expenditures
The amount of lottery money available
All districts must conduct a public hearing on the budget each year true or false
True
Categorical funds are earmarked for specific funds true a false
True
Danger signals a district may be in financial trouble
Number one in adequate beginning and ending budget balances,turnover in administration, collective-bargaining with ties to revenues or expenditures
Who or what is the only thing that can change the revenue limit
State legislature
The largest share of federal funds comes from what funding and what is it also known as
Title I/no child left behind
The ADA plays an important role in determining the mound of revenue a school district receives as part of the revenue limit true or false
True
SB90 established limits on the amount of general revenue money a school districtcan receive per-pupil true or false
True true
The required number of school days
180
Prop 98
Established a minimum base funding for K – 14 to almost 40% of the state budget
It could not be changed by local school boards
It could be suspended by the state legislature and govenor in times of fiscal emergency
With the recent school bond measure’s passing, school facilities needs have been adequately addressed true or false
False
The gann limit is a constitutional amendment passed has a part of the
“—–”
Taxpayer revolt
Prop 13 was considered A tax payers revolt because
It shifted funding for schools from local property taxes to the state
Lottery
Generates funds to support public Ed
Vouchers
Parent choice initiative twice defeated in 93 and 2000
A mega budget item
A relatively new approach to the block Grant approach given certain funds to school districts it is not a good way of increasing the allocation for school districts with you excused absences
What is categorical aid for?
Specific educational objectives and is to supplement funds
Where does the largest amount of funds in California come from?
Income taxes and sales taxes
Into thousand California exceeded all of the states in the number of students in rolled in public K-12 schools true or false
True
During the last two decades 1980 to 2000 the trend has been to increase the amount of general revenue funding for schools true or false
True
what percentage of school districts budget comes from Gen. revenue money
65%
Serrano versus priest
Using property taxes to fund public schools was unconstitutional.
Per-pupil expenditures had to be equalized
Property taxes made per pupil expenditures unequal
The class-size reduction (CSR) in 1996 resulted in California’s public school class size becoming one of the lowest in the nation true or false
False
School districts get most of their funding from where?
The states general fund
What is categorical aid
It is for specific purposes and my supplement a district budget
Court decisions have had very little impact on school financing true or false
False example Serrano versus priest
One in 10 students in California require special Ed services t or false
True
California school finance system is largely controlled by what?
The govenor and state legislature
Three of the highest priorities in the state education budget in recent years has been improving student treatment accountability and teacher quality two or false
True
Linking expenditures for public education to outcomes is often a public concern t or false
True
State courts have held that individuals don’t have a right to an education true or false
False
What for groups of students represent the greatest impact on school budget
LEP, minority, special needs and low socioeconomic
Education is regarded as both a public and private good true or false
True
Increases or decreases to the revenue limit are determined by The District school Board true or false
False
Over the last several years California student enrollment has been steadily increasing
True
Of the four sources of revenue for school districts in the lottery provides the second greatest source of income
T or f
False
The state provides a beast revenue limit for all of California school district. This base revenue limit can be increased by a vote of the citizens of a school district
False
Lottery money provides what percentage of most schools budget
1-3%
The percentage of English learners in California public schools
25%
Greatest challenges to fix the problems with California state budget
2/3 required of State legislator to increase taxes
The passage of the ballot measures to earmark revenue in state budget
The enactment of term limits for the legislature that deprives the legislature Branch Of institutional memory
California spends less than other states on school administration
True – because there is a penalty imposed on school districts if they exceed the state formula for admin costs
The number of school districts in California
1000
The federal government has generally been involved in education by supplementing budgets for special needs and national priorities
True
The property tax has historically been the major source of revenue for schools
True
The charter school movement has been successful in California
True
California leads the nation in the amount of her people expenditures it allocate for public education
False
Most school districts in California are unified K-12
True
The API ( Academic performance index) and the AYP ( adequate yearly progress) are both accountability measures and have the same purpose, however they originate from different levels of the government
True
California ranks near the bottom when compared with other states in terms of the amount of taxes collected from its citizens
False
What causes enrollment growth in California
High birthrates, immigrants entering the state, migration from other states
In California most of the funding for K-12 comes from the state
True
Which of these taxes is considered to be the most regressive toward the general population
The sales tax – the percentage on any taxable good is the same for the rich or poor
Court decisions are requiring more and more states to equalize statewide funding for school districts
True
Vouchers for students to attend private or parochial school is…
- an indication parents want more options
- A political issue
- a major issue in financial support for public Ed
Class-size reduction has had positive effects on districts capacity to provide adequate classroom space
False
According to AB 1200 a fiscal advisor maybe assigned when he district can’t meet its financial obligation
True
A school districtS ADA is generally slightly higher than its student enrollment
False
Enrollment projections are one of the most important indicators of future income
True
What factor is the most significant in determining the per people cost of education
student-teacher ratio
Average size school districts in California are required to set aside this amount for economic uncertainties
3%
What must a school district do on oct 31 and jan 31
Submit an interim financial report to the county
User fees
Help provide additional funds to school districts
The purpose of COLA
Help school districts keep up w inflation
School districts are not required to meet budget deadlines as long as they make sure their budgets are in balance true or false
False
Most school districts the most school districts’s are required to include a 10% reserve for unforeseen expenses true or false
False it’s 3%
If the school district does not submit a budget by sept 15th the county superintendent is required to develop one and Bill the district
False recent legislation has given more oversight power to the county office of education
The budget practice in most school districts is incremental or historical
True
Based on recent California court decision school districts me ask parents to pay for their children’s text books and school supplies
False
What are line item budgets?
The most commonly used method of keeping track of expenditures
All school district revenues are placed into which account
8000 series
A budget contains both revenues and expenditures
True
The major portion of a school districts income is from
The revenue limit
The chief business officer (CBO) of a school district should have expertise in which four areas
Business operations, collective bargaining, accounting and economics
The general fund includes both restricted and non restricted expenditures
True
The amount of categorical aid received by school districts is quite similar
False
The areas into which the school districts budget is organized is prescribed by
CDE- ca dept of Ed
Revenue limit I one is what 3 things
Makes up most of the districts general fund
Is mostly unrestricted
Is the amount of money a district may receive for general purposes
The PPBS System of program budgeting is fairly simple to use and allows for site-based budget decisions
False
The California school accounting manual contains the account codes school district must use for revenues and expenditures
True
In California the proportion of school district funds that K-12 education receives from the state is about what percent
67%
The property tax is an example of a regressive tax
False
The object code categories which compromise the largest expenditures and mow school district budgets are
1000-3000 series ( salaries and benefits)
Each line item in the general fund must be marked restricted or unrestricted
True
School district should classify each expenditure by designating the appropriate codes on your requisitions
True
Most school districts spend at least what percentage of their budget for personal costs
85%
What are the major sources of information that must be reviewed in order to determine how much money (revenue) the district will receive the following year
The enrollment projections, ADA projections, categorical funds and the lottery
The revenue limit
The specific amount of state and local taxes the school district may receive per people for its general education fund
The County superintendent of schools office has no significant role in relation to school district budgets
False
How does collective-bargaining between the school district in its employee organizations impact the budget?
A few our salaries, employee benefits and class-size. The percentage of salary increase in the cost of fringe benefits has a tremendous impact
Which type of fund is required for all school districts
The general fund
The incremental or historical budget means
The starting point is the prior years budget
School district budget expenditures are shown in the object code series 1000–7000
True
School districts are not permitted to raise local funds through the lease of school property
False
One of the advantages of zero-based budget (ZBB) is
Annual eval of all programs
Program budgeting
Looks at each program and its effectiveness
The major portion of school districts budget is allocated to salaries and benefits
True
Restricted items are those were the monies are here marked by state or federal law for specific objectives
True
School districts that have shown responsible financial accounting for a substantial number of years are not required to conduct an audit every year
F
The general fund contains both restricted and unrestricted monies
T
Funding for special education comes from both federal and state sources.. The federal funding is adequate and only requires a small amount of state and district funding
F
Which is the largest and most Active fund of a school district which contains such expenditures as salaries, benefits, textbooks and instructional supplies
The general fund
Two of the highest is funded categorical aid programs from the federal government include
ESEA title 1 ( NCLB) and child nutrition.
School district audits may be conducted by in-house financial advisors
F
The amount and type of categorical aid is evenly distributed among school districts
F
What does a financial audit provide for school districts
A financial condition of the district, accounting method used by staff and compliance with laws and regulations
Budget decisions for school site budgets are clearly defined and consistent among various school sites and districts
False
In most districts principles are responsible for the allocation and management of the school personnel budget
F
Categorical funds may be distributed based on enrollment, competitive grants or eligibility formula
LR
One can gain a sense of the districts or schools priorities by examining the budget
T
Categorical aid programs tend to require greater control then do general aid programs
T
The ratio of general to special-purpose aid to school districts during the past 15 years has changed considerably. Categorical aid has…
Increased steadily
Keeping track of encumbrances is not as important in school site budgets as it is with the district budget
F
The capital outlay fund includes office supplies and instructional materials
False
The fee for the annual audit is paid by district funds and is usually based on the districts ADA
True
AB1200 was passed as a result of the bankruptcy of some school districts and was intended to impose greater fiscal control on school districts
True
Categorical aid does what 3 things
Helps school districts accomplish specific educational objectives, highlights special programs and addresses kids w special needs
School site budgets should contain expenditure codes that correlate with the district budget codes
True
One of the advantages of contracting out student transportation services is that it saves money on bus drivers
True but the greater cost is the capital outlay for Buses
One of the positives of the class-size reduction legislation include
Positive teacher attitudes
Special education encroachment on the general education budget in school districts is usually what percentage
20-25%
Sale of food items on a campus must be authorized by the schoolboard
True
What must student body organizations do to make sure they are properly and legally functioning
Have a constitution stating the purpose of the organization, keep minutes of all meetings, establish policies and procedures for elections of officers, fundraisers and expenditure approvals
A major impediment to implementing CSR has been the need to find enough facilities and teachers
True
PL94-142 and the IDEA are specifically for
students w. Disabilities
An annual external audit of student body funds is not required- only periodic internal audits
F
With some exceptions it is generally legal to charge students a fee for supplies in the academic program
False
There is conclusive research that the class-size reduction of the 20:1 has had a positive impact on improving student achievement
False
The student council sponsor has total accountability for the student body accounts
False
What is a legal fee a district may charge students
For a damaged or lost text book
The ca Supreme Court recently ruled that schools may charge fees for extra curricular activities
False
How are student body organizations valuable to school
Provides training for students in leadership, provides valuable source of information and guidance on issues, help set a tone, assist in the education program for all, help with serious matters like drugs and alcohol, strengthen school morale and pride
Student body funds may be used in an emergency to purchase district adopted textbooks
False
Student body funds should be spent to benefit students who are currently enrolled in the school
True
One major advantage of contracting out bus transportation services is that it saves money on capital expenditures for Buses
True
Who must approve all fundraisers?
The principal and the student council
Food items on an elementary school campus
Maybe sold after the noon meal has been served
A school district they charge a fee to transport participating students to an athletic event
False
A primary project for student body organizations is fundraising
True
Funding provided by the state of California for class size reduction has generally been adequate to implement this program
False
Student organizations receive an allocation of revenue from the district to operate their programs
False
The California Supreme Court has ruled that it is legal for school districts to charge parents for student transportation to and from school unless parents or guardians are “indigent “
True
Encroachment is not a problem for school districts
False
The legal framework for student body organizations is found in the ed code
True
Who has the legal responsibility to establish regulations and procedures for student body organizations and student body funds?
School boards
The following are legitimate fundraisers for student body organizations
Raising funds for special academic awards for outstanding
The California Department of Education has very little role in directing the procedures for proper accounting of student body funds
False
What are three ways to increase revenue for the food services program?
Monitor personnel costs, supplies and equipment inventory, food carts and specialty centers
Research shows that there is little correlation between the cleanliness of the school and educational outcomes
False
The child nutrition program is administered by
U.S. Dept of agriculture, the ca dept of Ed and local school districts
The school district policies on maintenance and operations
Should include the philosophy regarding the contracting out of services
Food service monies are placed in a special, restricted fund
True
School districts have a master plan for equipment replacement will help keep emergency repairs to a min
False- equipment lasts for about 5 years due to wear and tear. There needs to be a plan to replace obsolete and equip that can’t be repaired
One of the major financial goals of food services is to make the program self supporting
True
President Harry Truman started the school lunch program after world war 2
But breakfast was added in 1966
True
One important function of the maintenance dept of a school district is the repair and replacement of fascilities and equips
True
Ca has provided no incentives for districts to participate in the school bfast program
False
Trends in food service include
Decentralization- customer satisfaction plays a big part in the success of the food service program
In Controlling personnel costs in the maintenance and operations dept what are important considerations?
Encumber costs in the beginning of the year, overtime and extra duty hours and substitutes
The federal govt subsidizes only free meals
False
A work order system
Helps track labor hours and material costs spent on repair jobs
What are three ways to increase revenue for the food services program?
Monitor personnel costs, supplies and equipment inventory, food carts and specialty centers
Research shows that there is little correlation between the cleanliness of the school and educational outcomes
False
The child nutrition program is administered by
U.S. Dept of agriculture, the ca dept of Ed and local school districts
The school district policies on maintenance and operations
Should include the philosophy regarding the contracting out of services
Food service monies are placed in a special, restricted fund
True
School districts have a master plan for equipment replacement will help keep emergency repairs to a min
False- equipment lasts for about 5 years due to wear and tear. There needs to be a plan to replace obsolete and equip that can’t be repaired
One of the major financial goals of food services is to make the program self supporting
True
President Harry Truman started the school lunch program after world war 2
But breakfast was added in 1966
True
One important function of the maintenance dept of a school district is the repair and replacement of fascilities and equips
True
Ca has provided no incentives for districts to participate in the school bfast program
False
Trends in food service include
Decentralization- customer satisfaction plays a big part in the success of the food service program
In Controlling personnel costs in the maintenance and operations dept what are important considerations?
Encumber costs in the beginning of the year, overtime and extra duty hours and substitutes
The federal govt subsidizes only free meals
False
A work order system
Helps track labor hours and material costs spent on repair jobs
What are three ways to increase revenue for the food services program?
Monitor personnel costs, supplies and equipment inventory, food carts and specialty centers
Research shows that there is little correlation between the cleanliness of the school and educational outcomes
False
The child nutrition program is administered by
U.S. Dept of agriculture, the ca dept of Ed and local school districts
The school district policies on maintenance and operations
Should include the philosophy regarding the contracting out of services
Food service monies are placed in a special, restricted fund
True
School districts have a master plan for equipment replacement will help keep emergency repairs to a min
False- equipment lasts for about 5 years due to wear and tear. There needs to be a plan to replace obsolete and equip that can’t be repaired
One of the major financial goals of food services is to make the program self supporting
True
President Harry Truman started the school lunch program after world war 2
But breakfast was added in 1966
True
One important function of the maintenance dept of a school district is the repair and replacement of fascilities and equips
True
Ca has provided no incentives for districts to participate in the school bfast program
False
Trends in food service include
Decentralization- customer satisfaction plays a big part in the success of the food service program
In Controlling personnel costs in the maintenance and operations dept what are important considerations?
Encumber costs in the beginning of the year, overtime and extra duty hours and substitutes
The federal govt subsidizes only free meals
False
A work order system
Helps track labor hours and material costs spent on repair jobs
Replacing lawns is part of the operational function of the school
False
Operations refers to a school district housekeeping routines to keep school plans functional
False
Contracting out for food services has been shown to be superior both in terms of food quality and financial success
False- still to early to tell
Two major expenses for the food services program are administration and equipment
False
The national school lunch act of 1946 was of historical significance but it no longer relevant today
False
School lunches much provide what % of RDA
33%
What are ways to better the financial status of the cafeteria fund and balances and help make the food service program self supporting
Adopt a client centered approach to serving meals, contract food services out to private companies and calculate the meals served per labor hour
The function of the operations department staff is to be sure classroom and facilities are clean
True
The advantages of COP ( certificate of participation) loan is that it can easily be paid back by the district
False
Currently what is the major way of financing school construction in Ca
General obligation bonds
Under special circumstances lottery money can be spent for school construction
False
In November, 2000, voters approved prop 39 which required a 55% approvals for local school districts to pass general obligation bonds
True
Over 50% of CAs school buildings were built over 25 years ago
True
The advantage of using the parcel tax for school construction, smaller classes and technology etc is it only requires a 55% voter approval
False a parcel tax requires a 2/3 vote
Deferred maintenance funds require a 2/3 voter approval for use by a school district
False
In General the state bond issues have been adequate in the past to fund school construction
False
Court decisions related to school construction have generally been unfavorable to school districts
False
State funds required 2/3 voter approval
False
One of frequently used methods for local school districts to finance facilities construction and remodeling is
Sale of general obligation bonds
District who are approved to get construction funds from the states Leroy Green lease/purchase program must
Meet eligibility requirements, provide matching local funds, go through a complex process
One disadvantage for using portable classrooms is that they are more expensive to heat in the winter and cool in the summer
True
The amount of money collected from developer fees is inadequate to build new schools
True
The state of California gives higher priority for receiving construction funds to school district that operate on a year-round schedule
True
Building new prisons competes with building public schools for dollars
True
The Mello-Roos law is used most often when there is vacant land in the school district
True
before proposition 13 how did school district fund their school construction
Through local property taxes
California’s facilities problems were caused primarily by the recent class-size reduction (CSR)
False
The primary effect of proposition 13 on financing school construction has been
A shift of local control to the state
The gann spending limit
Amendment passed in 1979 limiting the amount of money in tax dollars that the state, cities, counties, school districts may set aside
What are signals that may lead to fiscal insolvency
A small beginning and ending balance, unrealistic collective bargaining contracts. Lack of experience of key personnel
Which factor is the most significant factor in deterring the per pupil cost of education?
Student:teacher ratio ( class size)
Unencumbered balance
The portion of an appropriation or allotment not yet expanded or obligated
All school districts in Ca must conduct a public hearing on the budget each year
True
The chief financial/business officer of the school district is required to have a credential
False
Education is regarded as a public but not a private good
False
In California the proportion of school monies for K-12 education which comes from the state is about what percent
60-80%
The value of land, homes, businesses set by the county assessor for property tax services
Assessed valuation
AB1200
A bill passed in California in 1992 to impose major physical accountability controls on school districts
Encumbrances
Monies that have been obligated to be paid In the form or purchase orders, contracts, salary commitments etc
Block grant
A lump sum allocation of funds in which two or more special purpose funds are lumped together
Expenditures
The cost of goods delivered and services rendered
Capital outlay
Amounts paid for the acquisition of or additions to fixed assets such as buildings grounds and equipment
Funds from the state or federal government granted to qualifying school districts in addition to the revenue limit for students with special needs or special-purpose programs
Categorical funds/Aid
Prop 98 established a constitutionally based minimum funding floor for K-14 education
True
Ca receives the largest amount of funds from the sales tax and income tax
True
What is the purpose of COLA
To help school districts keep up w inflation
Equalization
Funds allocated by legislature the legislature to raise school districts with lower revenue limits toward the state average
The revenue limit
The specific amount of state and local property taxes the school district may receive per pupil for its general education program
Line item budgets are the most commonly used by the school districts for their general fund budget
True
A school districts ADA is usually slightly greater thank it’s student enrollment
False
The period for the purposes of budgeting in Ca from July1- June 30
Fiscal year
The revenue limit is based on the ADA generated during this period from July 1st through the last full school month ending on or before April 15
P-2 second period attendance
The number of assigned to sources of revenues or expenditures is called the
Account codes
An initiative passed in 1978 that amended the ca constitution and was related to property tax and a required 2/3 to add new taxes
Prop 13
Certificates of participation [cops]
A way to provide loans ( long term financing) for school districts
A charge per square foot for construction in a community which school districts may levy to help build or renovate schools
Developer fees
Funds allocated by the legislature to raise districts w lower revenue limits toward the statewide average
Equalization
Expenditures that are incurred for interest on and redemption of bonds
Bonded indebtedness
Equalization
Funds allocated by legislature the legislature to raise school districts with lower revenue limits toward the state average
The revenue limit
The specific amount of state and local property taxes the school district may receive per pupil for its general education program
Line item budgets are the most commonly used by the school districts for their general fund budget
True
A school districts ADA is usually slightly greater thank it’s student enrollment
False
The period for the purposes of budgeting in Ca from July1- June 30
Fiscal year
The revenue limit is based on the ADA generated during this period from July 1st through the last full school month ending on or before April 15
P-2 second period attendance
The number of assigned to sources of revenues or expenditures is called the
Account codes
An initiative passed in 1978 that amended the ca constitution and was related to property tax and a required 2/3 to add new taxes
Prop 13
Certificates of participation [cops]
A way to provide loans ( long term financing) for school districts
A charge per square foot for construction in a community which school districts may levy to help build or renovate schools
Developer fees
Funds allocated by the legislature to raise districts w lower revenue limits toward the statewide average
Equalization
Expenditures that are incurred for interest on and redemption of bonds
Bonded indebtedness
Economic Impact Aid ( EIA)
State categorical aid for districts with students who are bilingual, transient or from low income families
Food services monies are placed in a school general fund
False
What are the greatest challenges facing ca school finance in the next 5 years
Student absences, declining enrollment, unnecessary spending and sources of funds/revenue
In order for school to receive school improvement fund the school must have a school plan developed by the school site coucil
True
The special ed encroachment on the general fund budget and school districts is usually what percentage
20-25%
What are the requirements of the CA master plan for special education
Least restrictive environment, IEP, seek individuals with exceptional needs
State bond issues require a simple majority voter approval
True
What are two way to determine weather parents or guardians are indigent
Qualify for a free lunch /receive AFDC
There continues to be much discussion about doing this to improve flexibility in categorical programs funded both by California and the federal government.
What is this called
Consolidation
To pass a STATE bond you need what to pass
Simple majority-50%
To pass a DISTRICT bond you need what percentage?
55%
