Frequently Asked Questions Link to this section
Glossary of Terms Link to this section
- Budget: A financial plan that estimates income and expenses over a yearlong period.
- Fiscal Year: The 12-month period from July 1 to June 30 used for accounting and budgeting.
- Interim Reports: Financial updates submitted twice a year (three if a school district has a “negative” certification to evaluate whether a district can meet its financial obligations for the current year and two subsequent years.
- Unaudited Actuals: A report of actual revenue and expenses for the current fiscal year.
- Fund Balance: The amount of money a school district has after accounting for expenses, debts, and obligations. It acts as a financial cushion for a school district, and can include spendable and non-spendable funds.
- Deficit Spending: When a school district spends more than it receives in a given year.
- Structural Deficit: When a school district repeatedly spends more than it receives each year.
- Local Control Funding Formula (LCFF): The state’s primary funding source for school districts, based on student enrollment, attendance, and student demographics (i.e., low-income, English learners, foster youth).
- LCFF Base Grant: The per-student funding amount based on grade levels.
- LCFF Supplemental Grant: Additional funds for school districts based on the number of students in certain demographic groups (i.e., low-income, English learners, foster youth).
- LCFF Concentration Grant: Additional funding for school districts where more than 55% of students are “high needs”.
- Local Control Accountability Plan (LCAP): A three-year plan updated annually that shows how LCFF (state) funds will be used to meet the district’s goals.
- Unrestricted Funds: Funds that can be used for any legal educational purpose.
- Restricted Funds: Funds that must be used for specific purposes.
- Budget Reserves: A portion of the Fund Balance that is set aside in case of unforeseen financial emergencies.
- One-Time Funds: Non-recurring funds provided by the local, state or federal government, often for specific initiatives (i.e., COVID relief funding).
This page was last updated on October 30, 2025