Submitted by admin on January 23, 2010 - 8:45pm
California
56% of P-1 distribution is being deferred until July and August
of 2010 and 25% of P-2 is being deferred 60-90 days.
DEFERRALS ARE REAL. PLAN NOW.
State deferrals are a long term problem for California. Schools need to explore financing options now and secure funding to keep programs intact. Click through the tabs below to learn about how deferrals are impacting charter schools across California.
Annual State Payment Deferrals

The Result:
In FY 2010, 46% of state aid is being deferred 4 months. Industry experts forecast that deferrals will be the same or greater for FY 2011.
Our Sample School has two cash flow issues:
1. Growth

• Annualized revenue of $2M ($5,000 / student) - 400 ADA
• Adding 75 ADA
• Timing of state aid payments for growth create funding gaps

2. Deferrals

• Cash flow is compounded by ongoing state deferrals

The Situation:
$375,000 ($5,000 x 75) growth cash flow shortfall is compounded by state deferrals.