What is a COLA in California and the School Districts?

Answer 1

cost-of-living adjustments or COLAs is the States way of calculatin the increase in funding for schools. It is "based on the gross domestic product price deflator for purchases of goods and services by state and local governments (GDPSL). This index, calculated by the federal government, is designed to reflect changes in costs experienced by state and local governments around the country. (Local governments include cities, counties, schools, and special districts such as fire districts.) To reflect the multiple categories in which state and local governments spend money, the GDPSL has several components." The components that are measured are: Primary Cost Components of the

State and Local Price Deflator ♦ Employee Compensation. Includes salaries and benefits for government employees. ♦ Services. Includes utilities and contracted services (such as financial, professional, and business services). ♦ Structures/Gross Investment. Includes capital outlay, construction, and deferred maintenance. ♦ Nondurable Goods. Includes gasoline, office supplies, and food. ♦ Durable Goods. Includes books, tools, and equipment. When prices flucuate for the above items the schools get more or less money based upon the rate of these changes. see: http://www.lao.ca.gov/analysis_2008/education/ed_anl08004.aspx for further discussion.