2014/15 1st Interim Budget Black Oak Mine Unified School District - - PowerPoint PPT Presentation

2014/15 1st Interim Budget

Black Oak Mine Unified School District

Board of Trustees Joe Scroggins, President Darcy Knight Jeff Burch Ronnie Ebitson Bill Drescher Superintendent Robert Williams Ed.D.

How the Budget Process Works…

• The State requires School Boards to adopt district budgets by June

30th of each year.

• After the adoption of the State budget schools are required under

Education Code 42127(i)(4) to update district budgets with any significant changes within 45 days.

• Two interim reports are taken to the board for approval each year.
• December ‐ Referred to as 1st Interim
• March ‐ Referred to as 2nd Interim
• Books are closed in July‐August and taken to the Board for approval in

September as “Unaudited Actuals”.

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Budget Timelines

• JULY 1st‐Adopted Budget ‐or‐
• Not later than 45 days after the Governor

signs the annual Budget Act, the school district shall make available for public review any revisions in revenues and expenditures that it has made to its budget to reflect the funding made available by the Budget Act. (EC 42127 (i) (4))

• DECEMBER – 1st Interim Budget
• The 1st Interim report will be presented at the

public board meeting in December of each

• year. This report will include any changes

made to the budget since the budget adoption in June, including those reported 45 days after the Governor signed the annual Budget Act.

• MARCH – 2nd Interim Budget
• The 2nd Interim report will be presented at the

public board meeting in March of each year. This report will include any changes made to the budget since the 1st Interim report was presented in December.

• JUNE 1ST – 3rd Interim Budget

(Qualified or Negative Certified Districts Only) –

• No later than June 1, each school district with a

qualified or negative certification for the second interim report must provide financial statement projections of the district’s fund and cash balances through June 30 for the period ending April 30 to the county superintendent, the Controller, and the SPI.

• SEPTEMBER – Unaudited Actuals
• The Unaudited Actuals report will be

presented at the public board meeting in September of each year. This report will reflect the actual revenue and expenditures of the district for the budget year.

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Budget Certifications

3 Choices

• (1) "Positive,"
• the district is able to meet its financial
• bligations for the remainder of the

fiscal year and subsequent two fiscal years

• (2) "Qualified,"
• the district may not be able to meet its

financial obligations for the current year

• r two subsequent fiscal years
• (3) "Negative,"
• the district will not be able to meet its

financial obligations for the remainder of the current year or the subsequent year

BOMUSD’s Choice:

• BOMUSD has certified “Qualified”

for the past 3 school years: 2009/10, 2010/11, & 2011/12.

• BOMUSD has certified “Positive” for

the past two years 2012/13 and 2013/14.

• The current administration

recommendation is a “Qualified” budget certification for the 2014/15 First Interim Budget.

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Budget Assumptions

There are many unpredictable factors that affect revenue and expenditures. Because of that, the District bases its budget on assumptions. This is the best information available at the time the budget is adopted. The adopted budget, therefore, should be considered a “financial snapshot” on the date it is approved. As variables change, formal adjustments, approved by the board, are made throughout the course of the year.

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Where do schools get most of their money?

So...where do schools get most of their money?

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Schools get most of their money from Property Taxes + State Taxes

Local Control Funding Formula ‐ LCFF

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• The LCFF is the new model by which state funds are allocated to school districts,

charter schools and county offices of education.

• The intent of LCFF is to:

*locally address student achievement

*close the achievement gap

*fund every student at the same base rate

Local Control and Accountability Plan ‐ LCAP

• As part of the LCFF, school districts and charter schools are

required to develop, adopt, and annually update a three‐year Local Control and Accountability Plan (LCAP), beginning on July 1, 2014, using the template adopted by the California State Board of Education (SBE).

• The LCAP is required to identify goals and measure progress for student

subgroups across multiple performance indicators

• The LCAP must involve stakeholders

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Local Control Funding Formula ‐ LCFF

There are two distinct phases of LCFF: (1) The 8 year implementation phase – Transition Entitlement

• Until the LCFF is fully funded, school districts and charter schools, will receive an LCFF

Transition Entitlement.

• The Transition Entitlement is based on an LEA’s 2012‐13 funding level, adjusted for

changes in student population, and the amount of funding the LEA would receive under the LCFF model at full implementation.

(2) The fully funded phase – Target Entitlement

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11 Base + GSA

• Supp. & Conc.

RL / NSS Categoricals TIIG + Transp. TIIG + Transp. PY gap funding Floor CY gap funding $‐ $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000

Target Floor Funded

LCFF FUNDING 2014‐15

Target Floor Base + GSA $ 8,799,868 Supplemental & Concentration $ 856,234 RL / NSS $ 5,927,873 Categoricals $ 1,399,065 TIIG + Transportation $ 572,670 $ 572,670 PY gap funding $ 281,893 TOTAL $ 10,228,772 $ 8,181,501 Funding Floor $ 8,181,501 CY gap funding $ 605,173 TOTAL $ 8,786,674

This is our base or minimum LCFF funding

(1) TRANSITION

(2) TARGET ‐ LCFF Base Grant – 2014/15 Rates

Factors Grades TK‐3 Grades 4‐6 Grades 7‐8 Grades 9‐12 Base Grants $7,012 $7,116 $7,328 $8,491 Adjustment Percentage 10.4% CSR Adjustment Amount $729 $221 Adjusted Grant per ADA $7,741 $7,116 $7,328 $8,712

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Remember these are TARGET rates, our students are not funded at these rates yet.

(2) TARGET ‐ LCFF‐ Supplemental/Concentration Grant – 2014/15 Rates (plan to be fully funded in 8 years)

Factors Grades TK‐3 Grades 4‐6 Grades 7‐8 Grades 9‐12 Adjusted Grant per ADA $7,741 $7,116 $7,328 $8,712 20% Supplemental Grant $755 $694 $715 $850 50% Concentration Grant (for eligible students exceeding 55%

• f enrollment)

$‐ $‐ $‐ $‐

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SUPPLEMENTAL GRANT ENTITLEMENT Provides additional funding to base grant for disadvantaged students ($1,532 per ADA at full implementation in 2020‐21) CONCENTRATION GRANT ENTITLEMENT Provides additional funding to base grant for districts that have high Free Reduced‐Price Meal percentages (percentages exceed 55%)

Supplemental/Concentration Grants ‐ Eligibility Determination

Supplemental and Concentration Grant increases are calculated based on the Unduplicated Pupil Percentage of total enrollment accounted for by the following:

• English Learners
• Free & Reduced‐Price Meal Program Eligible Students (FRPM)
• Foster Youth
• Black Oak Mine’s percentage of these pupils to total enrollment is about 48% , which means

we are eligible for the Supplemental Grant, but NOT the Concentration Grant

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GRADE SPAN ADJUSTMENT (K‐3)

• Districts must reduce average TK‐3 class sizes for each school site toward 24:1

at the same pace as LCFF gap funding is provided.

• IMPORTANT NOTE: Failure to meet the annual enrollment target at any

school results in the loss of the K‐3 adjustment for the ENTIRE district.

*Northside – In order to meet progress to this ratio the school had to open another class mid‐year.

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Elementary School 2014/15 Required Ratio 2014/15 Current Ratio Georgetown 27.0 : 1 26.0 : 1 Northside 24.5 : 1 24.5 : 1* Otter Creek/ARCS n/a – NSS & Charter

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TOTAL Grade Span ADA Rate Subtotal ADA Rate Subtotal K‐3 307 x $7,012 = $2,152,964 307 x $729 = $223,833 $2,376,797 4‐6 230 x $7,116 = $1,633,762 230 x $0 = $0 $1,633,762 7‐8 158 x $7,328 = $1,157,311 158 x $0 = $0 $1,157,311 9‐12 399 x $8,491 = $3,384,937 399 x $221 = $88,102 $3,473,039 NSS K‐3 11 NSS 4‐6 7 TOTAL ADJUSTED BASE 8,799,868 $ Unduplicated Pupil % 48.78% must be over 55% TOTAL Grade Span ADA Rate Subtotal ADA Rate Subtotal K‐3 318 x $755 = $240,490 x $ 0 = ‐ $240,490 4‐6 236 x $694 = $164,007 x $ 0 = ‐ $164,007 7‐8 158 x $715 = $112,907 x $ 0 = ‐ $112,907 9‐12 399 x $850 = $338,830 x $ 0 = ‐ $338,830 TOTAL SUPPLEMENTAL & CONCENTRATION 856,234 $ TIIG & TRANSPORTATION ADD‐ONS 572,670 $ TOTAL LCFF TARGET 10,228,772 $ SUPPLEMENTAL CONCENTRATION $158,959 GRADE SPAN ADJUSTMENT BASE

2014/15 Local Control Funding Formula at TARGET

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572,670 $ 48.78% 856,234 $ 1,111 8,799,868 $ $ 10,228,772 TOTAL TARGET LCFF Unduplicated Count English Learners Low Income Foster Youth *Unduplicated Pupil Percentage (UPP) must be above 55%

Necessary Small School

Base Grant

Grade Span Adjustment

Supplemental Grant Concentration Grant*

Targeted Instructional Improvement Block Grant Home‐to‐School Transportation Adjusted Base Grant

Add‐ons

12‐13 Award Level

ADA

Supplemental & Concentration

The TARGET entitlement represents what a district will receive at full implementation. As shown, it contains multiple funding allocations. It is a component of the transition calculation (used to calculate gap) & an ongoing calculation.

Proposition 30

• These cuts, and threat of additional cuts, to education funding

spurred a change in state policy, with voters approving the “Schools and Local Public Safety Protection Act of 2012” in November 2012. Also known as Proposition 30

• Prop 30 authorized two temporary tax increases to avoid additional

cuts to education

• Sales tax increased of 0.25%
• Authorized for four years
• Expires in December 31, 2016
• Income tax increase of 3% for top bracket incomes
• Authorized for seven years
• Expires December 31, 2018

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Proposition 30

• These were not additional funds. The passage of

Proposition 30 simply avoided additional cuts.

• Revenue from Prop 30 are deposited into a separate

account know as the Education Protection Account (EPA)

• District is required to disclose how these funds are spent
• District website
• Board meeting presentations

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ENROLLMENT & ATTENDANCE

AVERAGE DAILY ATTENDANCE – (ADA)

• LCFF grade span ADA is based on current year or prior year ADA,

whichever is greater.

• This provides a one year grace period in the event the district may

be experiencing declining enrollment.

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Enrollment and Average Daily Attendance (ADA)

• Enrollment below reflects District enrollment as of CBEDS (October), excluding Charter
• As you can see below, District enrollment has been declining for almost 10 years. The overall loss of enrollment is about 37%

from 2003 to 2013, a loss of over 700 students over a 10 year period.

Impact of declining enrollment on LCFF funding: 2014/15 – a loss of about $500,000 2015/16 – a loss of about $430,000 2016/17 – a loss of about $204,000

22 1,943 1,979 1,921 1,847 1,740 1,639 1,465 1,402 1,273 1,164 1,103 1,067 1,039 1909 1922 1877 1805 1,668 1,557 1,386 1,326 1,214 1,140 1,048 1,014 987 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 (est) 2015/16 (est) 2016/17 (est)

ENROLLMENT & ADA (EXCLUDES CHARTER)

Enrollment (CBEDS) P‐2 ADA

Effects of Declining Enrollment

What Happens when enrollment is decreasing – decreasing Average Daily Attendance (ADA)?

EXAMPLE: Subtract 30 students x $7,367 average LCFF Funding $ (221,010) Reduce a Teacher ‐ Salary & Benefits $ 7 5,000 Eliminate Teacher Supplies $ 100 Total Expenses $ 7 5,100 Income $ (221,010) Expense $ 7 5,100 Gain/(Loss) $ (145,910) The district general fund now has to absorb an income loss of $145,910. No bargaining? Eliminate programs? Pull from a reserve?

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INCOME

Unrestricted vs. Restricted Income

• UNRESTRICTED INCOME
• Can be used for any school related

expense.

• Example: LCFF, Lottery
• RESTRICTED INCOME

(AKA Categoricals)

• Expenditures must follow the

specific guidelines of the grant or entitlement.

• Grants and Entitlements are often

referred to as “Categoricals”

• Examples: Special Education, Title IA,

Title II, Workability

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2014/15 INCOME = $11 million

BY MAJOR CATEGORIES

UNRESTRICTED INCOME = $9 m RESTRICTED INCOME = $2 m

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95% ‐ LCFF = $8.8m 2% ‐ Other State Income = $220k 3% ‐ Other Local Income = $251k 28% ‐ Federal Income = $531k 21%‐Other State Income = $220k 51% ‐ Other Local Income = $251k

2014/15 LCFF Income Assumptions

• Four Main Assumptions to Project LCFF Income:
• 1. ATTENDANCE (ADA PROJECTIONS)

District ADA Projections: 2014/15 CBEDS ENROLLMENT= 1,103 (decline of 54 from 13/14 CBEDS) 2014/15 FUNDED ADA = 1,124 (based on 13/14 prior year ADA) – includes NSS ADA Charter ADA Projections: 2014/15 CHARTER ENROLLMENT = 211 (increase of 7 from 13/14 CBEDS) 2014/15 FUNDED CHARTER ADA = 207 (based on 14/15 current year projected ADA)

• 2. ANNUAL COLA

2014/15 COLA = 0.85%, but District is funded at 15% below its LCFF target

• 3. UNDUPLICATED PERCENTAGE (% of FRPM students, Foster Youth, English Learners)

2014/15 Unduplicated Percentage = 48.78%

• 4. PERCENTAGE OF GAP FUNDING DURING TRANSITION

(remember the GAP is the difference to where we are currently funded to our Target LCFF rate)

2014/15 Percentage = 29.56%

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Major Income Changes Since August Budget Update

a b c d e f g (e ‐ b) (f ‐ c) (g ‐ d)

2014/15 August Update 2014/15 1st Interim Variance

1

Unrestricted Restricted Total Unrestricted Restricted Total Unrestricted Variance Restricted Variance Total Variance

2

Local Control Funding Formula

8,687,049 ‐ 8,687,049 8,718,726 ‐ 8,718,726 31,677 ‐ 31,677

3

Federal Income

‐ 452,510 452,510 ‐ 531,217 531,217 ‐ 78,707 78,707

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LCFF Income ‐ $32,000 Increase

• Estimated increase is based on slight increase in actual prior year attendance & increase in

unduplicated pupil count percentage which results in an estimated higher percentage of Supplemental funding.

Federal Income – $78,000 Increase

• Increase in federal funding for Special Ed Mental Health (+$7k), McKinney Vento (+$2k), and renewal
• f 5‐year Drug Free Communities Grant‐DFD (+$105k), offset by estimated decrease in LEA Medi‐Cal

funding (‐$34k).

Major Income Changes Since August Budget Update

Other State Income ‐ $126,000 Increase

• Increase in state funding from Lottery (+$6k), Primary Intervention Program‐PIP (+$27k), Special Ed Mental

Health (+$30k) and new 3‐year Career Pathways Grant‐CRANE (+$71k); offset by slight decreases in Mandated Costs (‐$4k) & Instructional Material Lottery (‐$6k).

Other Local Income ‐ $105,000 Increase

• Increases in the following funding/grants: Microsoft Tech Voucher (+$48k), Every 15 Minutes (+$10k), SELPA

grant/funding for NPS students & PEI grant (+$20k), and reimbursement from other districts for attending GLAD training hosted at BOMUSD (+$15k).

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a b c d e f g (e ‐ b) (f ‐ c) (g ‐ d)

2014/15 August Update 2014/15 1st Interim Variance

1

Unrestricted Restricted Total Unrestricted Restricted Total Unrestricted Variance Restricted Variance Total Variance

2

Other State Income

217,072 279,247 496,319 220,181 401,994 622,175 3,109 122,747 125,856

3

Other Local Income

240,307 891,436 1,131,743 250,750 985,957 1,236,707 10,443 94,521 104,964

4 Total Revenue

9,144,428 1,623,193 10,767,621 9,189,657 1,919,168 11,108,825 45,229 295,975 341,204

EXPENDITURES / EXPENSES

2014/15 EXPENSES = $11.8 million

BY MAJOR CATEGORIES

UNRESTRICTED EXPENSES = $8.0m

RESTRICTED EXPENSES = $3.8m

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89% ‐ Salaries/ Benefits = $7m 5% ‐ Supplies = $371k

6% ‐ Contract Services, Other Expenses = $510k

53% ‐ Salaries & Benefits = $2m 7% ‐ Supplies = $286k

40% ‐ Contract Services, Other Expenses = $1.5m

Deficit Spending –Unrestricted General Fund

The Unrestricted Deficit spending is projected to be:

• 2014/15 = $(327,000)
• 2015/16 = $(837,000)
• 2016/17 = $(857,000)

32 ($2,000) ($1,500) ($1,000) ($500) $0 09‐10 10‐11 11‐12 12‐13 13‐14 14‐15 (est) 15‐16 (est) 16‐17 (est)

(1,050) (410) (1,090) (432) (352) (327) (837) (857)

Thousands

Operating Deficit/Surplus

Unrestricted Net increase (decrease) ARRA SFSF/ Ed Jobs expenditures

Major Expense Changes Since August Budget Update

a b c d e f g (e ‐ b) (f ‐ c) (g ‐ d)

2014/15 August Update 2014/15 1st Interim Variance

1

Unrestricted Restricted Total Unrestricted Restricted Total Unrestricted Variance Restricted Variance Total Variance

2

Certificated 3,721,472 772,991 4,494,463 3,746,895 777,157 4,524,052 25,423 4,166 29,589

3

Classified 1,508,721 670,673 2,179,394 1,513,299 745,606 2,258,905 4,578 74,933 79,511

4

Employee benefits 1,820,492 468,159 2,288,651 1,808,255 493,230 2,301,485 (12,237) 25,071 12,834 33

CERTIFICATED SALARIES ‐ $30,000 increase

• Adjusted budget to reflect addition of 1.0 FTE for the remainder of the school year at Northside in order to

meet Grade Span Adjustment required progress and to reflect actual employee salaries filling open positions. CLASSIFIED ‐ $80,000 increase

• (0.2 FTE) Additional Special Education instructional aide time & (0.225 FTE) Pupil support based on

student need (+$5k); Added grant funded positions due to new awards for (2.22FTE) Drug Free Communities grant & (1.375 FTE) Primary Intervention Program grant (+$74k). EMPLOYEE BENEFITS ‐ $13,000 increase

• Increased employee benefits to reflect the adjustment of benefits based on salary changes above & the

inclusion of budget for remaining retirement incentive payments from prior school year. These increases are offset by decreases in Health & Welfare for both classified and certificated based on current participation.

Major Expense Changes Since August Budget Update

a b c d e f g (e ‐ b) (f ‐ c) (g ‐ d)

2014/15 August Update 2014/15 1st Interim Variance

1

Unrestricted Restricted Total Unrestricted Restricted Total Unrestricted Variance Restricted Variance Total Variance

2

Books & Supplies 327,781 211,607 539,388 371,350 285,660 657,010 43,569 74,053 117,622

3

Service, Other Operating Costs 381,933 670,920 1,052,853 381,315 794,986 1,176,301 (618) 124,066 123,448

4

Capital Outlay ‐ 429,998 429,998 ‐ 474,998 474,998 ‐ 45,000 45,000

5

Other Outgo 288,756 115,000 403,756 290,356 105,000 395,356 1,600 (10,000) (8,400)

6

Transfers of Direct Support/Indirect Costs (152,015) 127,673 (24,342) (161,356) 136,681 (24,675) (9,341) 9,008 (333)

7

Total Expenditures 7,897,140 3,467,021 11,364,161 7,950,114 3,813,318 11,763,432 52,974 346,297 399,271 34

BOOKS/SUPPLIES ‐ $118,000 increase

• Major increases in books/supply budgets for following programs/grants: (+$11k) EDCOE 21st Century

Classroom Grant, (+$31k) Math Textbook Adoption, (+$13k) DFD, (+$15k) expenses at sites (supplies, athletic program, etc.) from local donations, (+$25k) Microsoft Tech Voucher, (+$10k) for Title I, & (+$15k) CRANE grant. Increases are offset by movement of expenses to service/other operating costs categories for MAA, Lottery, Common Core, FMOT and site budgets. SERVICE/OTHER OPERATING COSTS ‐ $123,000 increase

• Major increases for the following programs/grants: (+$20k) Technology (High Speed Internet

contract), (+$37k) Special Ed Mental Health services, (+$5k) LEA Medi‐Cal Billing (Prof. Dev), (+$21k) DFD, (+$34k) Common Core (Prof. Dev), (+$8k) Every 15 Minutes program, (+$24k) Microsoft Tech Voucher, & (+$5k) for CRANE grant. Increases offset by movement of expenses to books/supplies for Title I, FMOT, and site budgets. CAPITAL OUTLAY

• Adjusted budget to reflect increase for capital outlay purchases with CRANE grant at Golden Sierra.

OTHER OUTGO – ($8,400) decrease

• Decrease in estimated required services from EDCOE Special Education programs for 2014/15, based on

current student needs.

STAFFING

STAFFING

2014‐15 Total Enrollment ‐ 1,314 (K‐6=711, 7‐12=603)

Classification K‐6 FTE K‐6 Enrollment 7‐12 FTE 7‐12 Enrollment Districtwide

Certificated/Teachers ARCS 8.52 148 2.00 63 Divide High 0.00 1.00 16 Georgetown Elementary 10.40 221 0.00 Golden Sierra Junior Senior High 0.00 28.50 519 Non‐Public Schools 5 Northside Elementary 15.70 323 0.00 Otter Creek Elementary 1.00 19 0.00 Other Certificated (Nurse & Psych) n/a n/a 2.00 Administrators ARCS 0.20 148 0.20 63 Divide High 0.10 16 Georgetown Elementary 0.90 222 Golden Sierra Junior Senior High 2.90 519 Non‐Public Schools 5 Northside Elementary 1.00 323 Otter Creek Elementary 0.10 19 District Office n/a n/a 1.60 Classified ARCS 3.59 148 1.74 63 Divide High 0.00 1.50 16 Georgetown Elementary 8.95 222 0.00 Golden Sierra Junior Senior High 16.03 519 Non‐Public Schools 5 Northside Elementary 13.45 323 Otter Creek Elementary 0.88 19

Other (Trans, Maint, Grounds,Tech, Coord. Kitch)

n/a n/a 16.66 Confidential/Class. Management n/a n/a 6.00

TOTAL FTE 64.68 53.97 26.26 144.92

Staffing Teachers & Aide Percentage to All Other Employees 2010‐11 to 2014‐15

37 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2010‐11 2011‐12 2012‐13 2013‐14 2014‐15

Teachers & Instructional Aides All Other Employees 2010‐11 2011‐12 2012‐13 2013‐14 2014‐15 Teachers & Instructional Aides 98.9 93.3 87.2 83.1 84.6 All Other Employees 66.3 64.9 64.4 61.3 59.4

2014/15 Board Approved Staffing Formula Guidelines

(Does not include Special Education) Grade Span Ratio of Students to Teachers TK – 3 28:1 (must make progress to 24:1 by 2020/21) 4 – 6 33:1 7 – 12 35:1 Divide High 25:1 Otter Creek 24:1 Independent Study 26:1 ROP 18:1

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Position Control

• The district currently uses a financial software system commonly referred to as

QCC, formally known as QSS.

• Within this financial system there is a position control component which keeps

track of all district employees salaries and benefits.

• This position control component rolls all salaries into the district budget so every

penny is accounted for within our budget.

• Our CFO and Personnel Services Coordinator work closely together to keep this

as accurate and up to date as possible.

• Salaries and benefits currently make up about 89% of the unrestricted district

budget and about 53% of the restricted district budget.

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Statutory Benefits

CERTIFICATED Employees CLASSIFIED Employees

2013‐14 (Actuals) 2014‐15 PERS 11.42% 11.77% MEDICARE 1.45% 1.45% UNEMPLOYMENT 0.05% 0.05% WORKERS' COMPENSATION 1.99% 1.99% SOC SEC (OASDI) 6.20% 6.20% TOTAL FIXED BENEFITS 21.107% 21.461% 2013‐14 (Actuals) 2014‐15 STRS 8.25% 8.88% MEDICARE 1.45% 1.45% UNEMPLOYMENT 0.05% 0.05% WORKERS' COMPENSATION 1.99% 1.96% TOTAL FIXED BENEFITS 11.74% 12.96%

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Statutory Benefits ‐ continued

• What does this mean?

CERTIFICATED

• For 2013/14 ‐ every $100 we spend in Certificated salaries we pay out $11.74 in

Statutory benefits

• For 2014/15 ‐ every $100 we spend in Certificated salaries we pay out $12.096 in

Statutory benefits. CLASSIFIED

• For 2013/14 ‐ every $100 we spend on Classified salaries we pay out $21.11 in

Statutory benefits.

• For 2014/15 ‐ every $100 we spend on Classified salaries we pay out $21.46 in

Statutory benefits.

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Year Employer Pre-PEPRA Employees

(hired before January 1, 2013)

Post-PEPRA Employees

(hired after January 1, 2013)

2013-14 8.25% 8.00% 8.00% 2014-15 8.88% 8.15% 8.15% 2015-16 10.73% 9.20% 8.56% 2016-17 12.58% 10.25% 9.205% 2017-18 14.43% 10.25% 9.205% 2018-19 16.28% 10.25% 9.205% 2019-20 18.13% 10.25% 9.205% 2020-21 19.10% 10.25% 9.205%

CalSTRS Rate Increases – Schedule per Education Code Sections 22901.7 & 22950.5

These are the rates that BOMUSD will be paying.

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CalPERS Rate Increases – Actual and Projected

• The employer contribution to CalPERS is increased from 11.442% in 2013‐14 to

11.771% in 2014‐15

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Year Employer Rate Employee Rate Classic Members

(Hired before January 1, 2013)

Employee Rate New Members

(Hired before January 1, 2013)*

2013‐14 (Actual) 11.442% 7% 6% 2014‐15 (Actual) 11.771% 7% 6% 2015‐16 12.6% 7% 6% 2016‐17 15.0% 7% 6% 2017‐18 16.6% 7% 6% 2018‐19 18.2% 7% 6% 2019‐20 19.9% 7% 6% 2020‐21 20.4% 7% 6%

*New Member rates may fluctuate based on the PEPRA requirement to pay half the normal cost rate

What does this mean for BOMUSD? Increased Expenditures, but no increased Revenues!

CalSTRS Rate Increases CalPERS Rate Increases

• In 2014‐15, the 0.63% rate increase

means increased expenditures of about $28,000

• For our Multiyear projections:

(Based on Current Year Staffing Levels)

• 2015‐16, the 1.85% rate increase would

increase our expenditures by about $85,000

• 2016‐17, the 1.85% rate increase would

increase our expenditures by about $86,000

• In 2014‐15, the 0.329% rate increase

means increased expenditures of about $7,000

• For our Multiyear projections:

(Based on Current Year Staffing Levels)

• 2015‐16, the 0.829% estimated rate

increase would increase our expenditures by about $19,000

• 2016‐17, the 2.4% estimated rate increase

would increase our expenditures by about $54,000

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OTHER FUNDS

Special Funds

• Charter Fund 09
• Cafeteria Fund 13
• Deferred Maintenance Fund 14
• Special Reserve (Other than Capital Outlay) Fund 17
• Fund houses the Friends of the Nature Area Bequest to the District to maintain the

Nature Area in Georgetown

• Building Fund – (Bond Project) Fund 21
• Capital Facilities – (Developer Fees) Fund 25
• Bond Interest & Redemption Fund 51
• Foundation Private‐Purpose Trust Fund 73
• Scholarship Funds

46

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a b c d e f g h i j 1

Charter School Fund 09 Cafeteria Fund 13 Deferred Maintenance Fund 14 Special Reserve* Fund 17 Building Fund 21 Capital Facilities Fund 25 School Facilities Fund 35 Bond Interest & Redemption Fund 51 Scholarship Fund 73

2 Beginning Balance

501,204 155 118,628 396,936 375,710 307,644 1,781,684 266,506 53,338

3 4

TOTAL INCOME 1,489,604 465,280 68,048 1,000 600 40,500 2,500 399,200 10,100

5 6

TOTAL EXPENDITURES 1,694,688 518,622 105,000 5,000 90,000 146,392 203,260 399,182 10,000

7 8

Net Inc/Dcr to Fund Balance (line 4 ‐ line 6) (205,084) ‐ (36,952) (4,000) (89,400) (105,892) (200,760) 18 100

9 10

Ending Fund Balance (line 2 ‐ line 8) 296,120 155 81,676 392,936 286,310 201,752 1,580,924 266,524 53,438

*Nature Area Bequest is held in Fund 17. (Friends of Nature Area)

2014‐15 1st Interim Summary of Other Funds

RESERVES

RESERVES

• RESERVES are necessary to protect the integrity of the educational program in an

unpredictable operating environment.

• REQUIREMENTS for Reserve for Economic Uncertainty (EUR):

Percentage Level District ADA 5% or $63,000 (greater of) 0 ‐ 300 4% or $63,000 (greater of) 301 ‐ 1000 3% 1,001 ‐ 30,000 2% 30,001 ‐ 400,000 1% 400,001 +

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Management of Funds Current Reserves or Components of Ending Fund Balance – 2014/15 1st Interim

50 a b c d

2014/15 1st Interim

1

Unrestricted Restricted Total

2

Revolving Cash 2,230 ‐ 2,230

3

Stores ‐ ‐ ‐

4

Prepaid Expend. ‐ ‐ ‐

5

Restricted ‐ 2,969 2,969

6

Other Commitments ‐ ‐ ‐

7

Commitment for IMFRP for Textbook Adoptions ‐

‐ ‐

8

Other Assignments 107,468 ‐ 107,468

9

Reserve for Step/Column & STRS/PERS rate increases 107,468 ‐

10

Unassigned/Unappropriated ‐ ‐ ‐

11

Reserve for Economic Uncertainty 473,000 ‐ 473,000

12

Total 582,698 2,969 585,667

13

% EUR

4.00%

BENEFITS OF HIGHER THAN MINIMUM RESERVES

• Financial flexibility to absorb

unanticipated expenditures without significant disruption to educational programs.

• Protection against exposure to

significant one‐time outlays such as disasters, lawsuits, or material audit findings.

• Protection against the volatility of

state revenues.

• Cash management / avoiding the

cost of borrowing cash.

• Protection against declining

enrollment.

• Protection to cover increases in fixed

and statutory costs. (ex – STRS increases)

• Financial flexibility to shift resources

as priorities set through the LCAP process change.

• Planning for major projects such as

information technology upgrades or deferred maintenance.

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General Fund Multi‐Year Projections

2014/15 to 2016/17

SUMMARY OF GENERAL FUND MULTI‐YEAR PROJECTION

53

a b c d e f g

1 2 Beginning Balance

1,288,616 $ 585,667 $ (254,028) $

3 Total Income

11,113,825 $ 10,485,482 $ 10,529,575 $

4 Total Expenses

11,816,774 $ 11,325,177 $ 11,386,744 $

5

Surplus/(Deficit) (702,949) $ (839,695) $ (857,169) $

6 Ending Fund Balance

585,667 $ (254,028) $ (1,111,198) $

7 Components of Ending Fund Balance 8

Revolving Cash Reserve 2,230 $ 2,230 $ 2,230 $

9

Restricted 2,969 $ ‐ $ ‐ $

10

Reserve for Step/Column & STRS/PERS Rate Increases 107,468 $ ‐ $ ‐ $

11

Subtotal of Components 112,667 $ 2,230 $ 2,230 $

12 Reserve for Economic Uncertainty

473,000 $ (256,258) $ (1,113,428) $

13 Reserve for Economic Uncertainty as a Percentage of Expenditures

4% ‐2% ‐10% 2014‐15 1st Interim 2015‐16 2016‐17

Multi‐Year Projection Assumptions

(details on pages 151‐157 in 1st Interim Budget Packet)

INCOME

• Projections for income assume same

level of income with the following major changes:

• LCFF – Loss due to declining

enrollment

• 2015/16 = ($430k)
• 2016/17 = ($204k)
• Decreased One‐Time or Temporary

Grant Income received in 14/15

• PIP, EDC AQMD Bus Replacement,

Microsoft Tech Voucher, COE Direct Service, NEA Reimbursement, 21st

• Cent. Classroom Grant = ($562k)

EXPENDITURES

• Projections assume the same level of

staffing & spending with the following major changes:

• STEP/COLUMN
• 2015/16 = $101k increase
• 2016/17 = $96k increase
• STRS/PERS RATE INCREASES
• 2015/16 = $105k increase
• 2016/17 = $138k increase

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How do we get to a POSITIVE certification?

• The district continues to face challenges dealing with the fiscal implications of

declining enrollment, especially at the junior/senior high school levels.

• The financial constraints of declining enrollment has made the ability to balance a

comprehensive program at the junior/senior high school level difficult.

• In order to move towards a POSITIVE certification, the district must show that it

can meet its minimum required state economic reserve for uncertainty in the current year and the two subsequent years.

• The levels of budget reductions that will need to be made are currently:
• 2015/16 = ($510,000)
• 2016/17 = ($762,000)
• If we strictly followed the current board approved teacher to student ratios,

certificated staffing reductions per the formula are as follows:

• 2015/16 = (11.3) FTE
• 2016/17 = (3.0) FTE

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• Minimize impact on academic achievement and student safety
• Minimize layoffs where possible
• Challenge will be balancing a comprehensive program at the junior/senior high

school level with our financial constraints

• Maintain a budget reserve at the level required by State and Board

Challenge for Black Oak Mine is to develop these priorities. Common themes for prioritizing budget reductions

Planning Ahead for Black Oak Mine

56

Conclusion

• The board and district face many difficult decisions as we

plan for the next school year and the years ahead in regards to programs and budget reductions.

• Keys to success in these difficult times:
• Patience, courage, and flexibility
• Conservative plans and backup plans
• Great communication with stakeholders
• Strong financial reserves and policies

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