2015-16 Budget Adoption Oakland USD Board of Education June 24, - PowerPoint PPT Presentation

2015-16 Budget Adoption Oakland USD Board of Education June 24, 2015 v.6

2 Table of Contents • Executive Summary • 2015-16 Budget All Funds • Total General Fund • General Fund Unrestricted • Appendix OUSD 2015-16 Budget Adoption

3 Executive Summary • 2015-16 will allow the District to make much needed investments, in line with the LCAP and the Strategic Plan, as we recover from the Great Recession. • Schools will see additional resources, with reduced class sizes in elementary (TK-3) and Measure N in high schools. • LCFF results in $39 million (includes additional $15 million based on the May Revise) more in on- going revenues for OUSD to allow for needed investments in people and programs that are part of the District’s LCAP and Strategic Plan. • In January, the Governor signaled a one-time resource allocation of $6.4 million for strategically aligned investments. With the May Revise, this allocation is now $21 million , an increase of $15 million.

4 Executive Summary - continued • Oakland voters approved Measure N , which will generate about $13 million for college and career programs in the City’s high schools (OUSD and charters) each year, starting in 2015-16. • The next issue of Measure J bond funds will infuse at least $160 million into OUSD’s facilities program. • Cuts (-$5.3 million) & Investments (+$2.9 million) to the Central Office will realign the District on the Pathway to Excellence. Net cut of -$2.4 million to the Central Offices. OUSD 2015-16 Budget Adoption

5 Executive Summary - continued • Expenses related to increased revenues from the May Revise and the labor settlements have not yet been incorporated into the budget. • Total Revenues for all Funds are estimated to be $793 million. • Total Expenditures for all Funds are estimated to be $647 million. OUSD 2015-16 Budget Adoption

6 2015-16 OUSD Adoption 2015-16 Budget - All Funds

7 2015-16 OUSD Board Budget Workshop OUSD 2015-16 Budget Total District Revenue By Type: $793.2M All Fund Revenues (millions) Unrestricted Restricted $392.9 $400.3 49.5% 50.5% OUSD 2015-16 Budget Adoption

8 2015-16 OUSD Board Budget Workshop OUSD 2015-16 Budget Total District Budget By Fund: $646.9M (millions) Total Budgeted Expenditures $646.9 M Restricted Resources Restricted & Unrestricted Resources Bond Int. and Child Develop. Child Develop. Self Insurance Self Insur. Adult Ed. Cafeteria Construction Related General Fund Redemption $13.3 M $11.7M $17.9 M $19.3M $1.3M $18.6M $73.1M $442.8M $80.1M California Districts use the funds listed above to account for activities to be managed and accounted for separately. All of the activity in these Funds is restricted, with the exception of the General Fund. The General Fund has both unrestricted and restricted resources and activities that need to be managed.

9 2015-16 OUSD Board Budget Workshop OUSD 2015-16 Budget

10 2015-16 OUSD Board Budget Workshop OUSD 2015-16 Budget Total General Fund Revenues (millions) Total: $494.4 M By Resource Type By Source Unrestricted $392.9 79.5% Other Local LCFF $20.2 $336.2 4% 68% Parcel Taxes $32.8 6% Restricted $101.5 20.5% Lottery & Other State $62.8 13% Federal $42.4 9% Change from 2014-15 (3 rd Interim): +$51.5M Restricted -$10.8 M Unrestricted +$62.3 M OUSD 2015-16 Budget Adoption

11 2015-16 OUSD Board Budget Workshop OUSD 2015-16 Budget General Fund Expenditures (millions) Total: $442.8 M By Object State Loan $6.0 Salaries & 1% Benefits $335.4 76% Books/Supplies /Services $101.4 23% Change from 2014-15 (3 rd Interim): -$3.1M Restricted -$25.2 M Unrestricted +$22.1 M OUSD 2015-16 Budget Adoption

12 2015-16 OUSD Board Budget Workshop OUSD 2015-16 Budget

13 2015-16 OUSD Board Budget Workshop OUSD 2015-16 Budget General Fund - Unrestricted Revenues (millions) Total: $392.9M By Source Other Local $9.2 2% Parcel Tax (Measure G) LCFF $20.7 $334.3 5% 85% Lottery & Other State $28.7 8% Change from 2014-15 Budget (3 rd Interim): +$62.3M OUSD 2015-16 Budget Adoption

14 2015-16 OUSD Board Budget Workshop OUSD 2015-16 Budget General Fund - Unrestricted Expenses (millions) Total: $345.8 M By Object By Type Contributions ** $57.8 17% State Loan $6.0 2% Schools $203.5 59% Other Infrastructure* Exp/Indirect $28.8 $(3.7) 8% -1% Salaries & State Loan Benefits $6.0 $242.4 2% 70% Books/Supplies /Services School $43.3 Support 12% $107.5 31% * * Contributions of unrestricted funds to restricted programs - Programs for Exceptional Children (PEC) and Routine Restricted Maintenance Account (RRMA) Change from 2014-15 Budget (3 rd Interim): +$22.2M OUSD 2015-16 Budget Adoption

15 Unrestricted General Fund Revenues, Expenditures, Fund Balance 2015-16 2014-15 Unrestricted General Fund Diff BGT DEV THIRD INTERIM Local Control Funding Formula (LCFF) Revenues $ 334,329,669 $ 295,316,598 $ 39,013,072 Other State & Federal Revenue 28,820,310 8,913,443 19,906,867 Local Revenue 29,171,165 25,642,832 3,528,333 Transfer-In & Sources 564,067 734,067 (170,000) Total Revenues & Sources 392,885,211 330,606,940 62,278,272 a Salaries,Supplies,Services & Equipment 285,615,909 272,153,587 13,462,322 6,242,046 6,398,953 (156,907) Other Outgo (Pass Throughs / Debt Service) Indirect Cost (Expense Offset) (4,571,567) (5,933,561) 1,361,994 Contributions & Transfers Out 58,532,567 50,952,006 7,580,561 Total Expenses & Uses 345,818,956 323,570,986 22,247,970 b Change in Fund Balance $ 47,066,256 $ 7,035,954 $ 40,030,302 a-b=c Beginning Fund Balance 21,073,794 14,037,840 7,035,954 d Ending Fund Balance $ 68,140,049 $ 21,073,794 $ 47,066,256 c+d=e OUSD 2015-16 Budget Adoption

16 Unrestricted General Fund Ending Fund Balance 2014-15 2014-15 Unrestricted General Fund Diff BGT DEV THIRD INTERIM Ending Fund Balance $ 68,140,049 $ 21,073,794 $ 47,066,256 Components of the Ending Fund Balance: Reserve for Economic Uncertainty $ 8,855,726 $ 8,916,332 (60,606) Designated for the Following: Audit & Audit Findings (ONE-TIME) 4,112,204 4,812,204 (700,000) Set Aside for Additional One-time funds 14,860,267 - 14,860,267 Set Aside for Retro Salary Increases for 2014-15 6,300,000 6,300,000 - Set Aside for Ongoing Items (ON-GOING) 32,966,595 - 32,966,595 Early Retirement Pgm Approved 2011-12 (ONE-TIME) 895,258 895,258 - Revolving Cash (ONE-TIME) 150,000 150,000 - Total Ending Fund Balance $ 68,140,049 $ 21,073,794 $ 47,066,256 Reserve for Economic Uncertainty is the 2% minimum required for OUSD per State Dept. of Ed, however the Board policy requires 3%. Staff has been directed by the board to lower this reserve to the 2% required by the State and designate the difference to Audit and Audit Findings.

17 Unrestricted General Fund Structural Balance Structural Surplus (Deficit) for Unrestricted Gen Fund 2015-16 2014-15 Diff THIRD INTERIM BGT DEV Excess of revenues over expenses $ 47,066,256 $ 7,035,954 $ 40,030,302 A Less One-Time Unrestricted General Fund Revenues & Expenses: - 800,000 (800,000) 1 One-time investment in Human Capital Devel Mgt System - (2,353,400) 2,353,400 2 One-time Mandated Cost Reimbursement Revenues - 379,500 (379,500) 3 One-time Support for Audit work 700,000 700,000 4 One-time cost related to Human Capital Data Mgt (14,860,267) (14,860,267) 5 Additional on-time funds from the May Revise not budgetedat Adoption 321,907 (321,907) 6 Write-offs One-Time Unrestricted General Fund Revenues /Expenses (14,160,267) (851,993) (13,308,274) B Structural Surplus After Deducted One-Time Items $ 32,905,989 $ 6,183,961 $ 26,722,028 A+B=C Note - Budget does not currently include estimated salary increases & one-time compensation for employees OUSD 2015-16 Budget Adoption

18 2015-16 Budget Adoption

Appendix Table of Contents • General Fund Assumptions • Summary of Funds • Fund 01 – Restricted General Fund • Fund 11 – Adult Education Fund • Fund 12 – Child Development Fund • Fund 13 – Cafeteria Fund • Fund 14 – Deferred Maintenance Fund • Fund 21 – Building Fund • Fund 25 – Capital Facilities Fund • Fund 35 – County School Facilities Fund • Fund 40 – Special Reserve – Capital Outlay • Fund 51 – Bond Interest & Redemption Fund • Fund 67 – Self Insurance Fund