The new state budget agreement will include up to $11.1 billion in K-12 payment "deferrals." But what exactly are deferrals? How do they help the state balance its budget? And what are the implications for local school districts?
In this special “explainer” episode, guest Matt Phillips, director of management consulting services at School Services of California, is back to describe everything you need to know about this highly significant but seldom understood fiscal mechanism.
Matt provides clear examples that will help finance-minded and non-finance-minded folks alike gain a solid grasp of the ins and outs of payment deferrals, including how they differ from budget cuts. Deferrals, Matt says, are the "lesser of two evils," but they pose their own significant complications for school districts.
Given the pending adoption of a new California State Budget, this is an episode you won’t want to postpone listening to.
In this episode, you'll learn:
- What is a payment deferral?
- How do deferrals help the state to balance its budget?
- Are deferrals similar to budget cuts?
- What are the implications of deferrals for school districts?
- Why do school districts need to pay such close attention to their "cash positions"?
- What options do school districts have to mitigate the impact of deferrals?
Latest state budget information:
- CASBO Newsbreak: "Governor Newsom and Legislature Reach Budget Agreement"
- "In California budget deal, no cuts for K-12 but billions in pate payments to schools" by John Fensterwald in EdSource, June 23, 2020
About Our Guest
Matt Phillips, CPA, serves as Director of Management Consulting Services at School Services. In this role, he provides support to school districts for fiscal-related matters including budget reviews, salary schedule analyses, organizational reviews, and negotiations. He also presents workshops across the state on a variety of topics including the Local Control and Accountability Plan, collective bargaining, district budgeting, and auditing. His background as a Certified Public Accountant, experience working in a school district, and completion of the Fiscal Crisis & Management Assistance Team Chief Business Official (CBO) Mentor Program that resulted in the CASBO CBO certificate provide the foundation for these areas. Matt graduated from California State University, Chico, with a degree in business administration with emphasis in accounting.
About CASBO
The California Association of School Business Officials (CASBO) is the premier resource for professional development and business best practices for California's school business leaders. Follow at @CASBO and @CASBOGR
About your series guide
Paul Richman is a public education advocate and consultant. Contact him at edfundingca@gmail.com. We value your feedback! Follow him at @pjr100
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