Moreland School District

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Business & Support Services » Budget and Finance

Budget and Finance

School districts receive state, federal, and local funding to educate all students within their school district attendance area.  Governed by state and federal laws, each District spends these funds within restricted guidelines and with the intention to provide the highest quality education to all students.  

The Moreland School District, along with all districts in California, are required by state law to adopt a balanced budget each year.  In June of each year, the Board of Trustees formally adopts the budget for the upcoming fiscal year.

Budget development  is a constant, year-round process and includes extensive opportunities for community input, including Board Meetings, public hearings, and advisory groups.  Each year, the budget must:

  • Establish the maximum amounts that the District can spend for each of its several funds

  • Be balanced, with beginning balances and projected revenues matching or exceeding spending plus a mandated reserve level

  • Cover the fiscal year (July 1 through June 30 of each year)

Many times there are challenges and influences that can affect a District’s budget such as the state’s own budget crisis, declining enrollment, changes in federal revenue allocation, and the timing out of grants or special funding.  With these challenges constantly fluctuating, Moreland’s Business Services team monitors state and school district finance issues throughout the year.

Where does Moreland’s Revenue Come From?

The process for funding a public school district in California comes from various sources, some of which have specific restrictions:

  • Local Control Funding Formula: This is a combination of local property taxes and state support and provides about 75% of our General Fund revenue.

  • State Grants: These grants provide about 5% of our total revenue, specifically  for Special Education, Mandated Cost Reimbursements, and lottery.

  • Federal Funds:  The federal government provides about 3% of the district’s total revenue.  These funds are for targeted student populations including Special Education and English Language Learners.

  • Local Revenue:  About 4%% of our revenue comes from Measure G parcel tax, grants and/or donations from foundations, as well as fundraising activities.  

  • Moreland also receives about 13% of its revenue from leased sites.

How does Moreland Spend its Funds?

There are numerous types of expenses related to public education.  The California Department of Education (CDE) outlines the categories, called object codes,  that are used by school districts to account for expenditures. The following is a breakdown of Moreland’s expenditures by these object codes:

44% - Certificated Salaries (i.e. teachers, administrators, nurses, counselors, etc).  

14% - Classified Salaries (i.e. aides, custodians, clerical staff, etc.)

21% - Employee Benefits (all salary related expenses such as retirement costs, workers compensation, social security,  health benefits, etc)

5% - Books & Supplies

15% - Services/Operating/Other Outgo (i.e. utilities,  maintenance agreements, contracts, etc.)

1% - Capital Outlay (purchase of individual items that exceeds $5000/item)

Local Control Funding Formula (LCFF)

On July 1, 2013, Governor Jerry Brown signed into law the new Local Control Funding Formula (LCFF), which significantly changed how California funds its K-12 schools and gives school districts more authority over how the money will be spent.

The LCFF encompasses three broad principles: funding schools more equitably, based on student needs; making more decisions at a local level; and measuring school achievement using multiple metrics, not just test scores, and supporting schools so they improve rather than punishing them for failing.

With the start of full implementation in 18/19, all districts will receive a uniform base amount per pupil, with different amounts depending on the grade level of the students.  On top of the base grant, districts receive additional funds based on the number of low-income children, English learners, homeless students and foster children who attend.

The LCFF ushered in a fundamental shift in decision making and accountability in California. It requires that, in return for greater control over how districts spend state funds, school boards must first reach out to parents, teachers, students, and community members for their perspectives on student achievement and school improvement. Having considered what they heard, they must write an accountability plan, called the Local Control and Accountability Plan or LCAP

Local Control and Accountability Plan (LCAP)

The Local Control and Accountability Plan (LCAP) is a critical part of California’s Local Control Funding Formula (LCFF).  It is a three-year, district level plan that is updated annually. The plan describes the school district’s key goals for students as well as the specific actions (with expenditures) the district will take to achieve the goals and the metrics used to measure the progress of these goals.  


Read more about the LCAP process here.