2016-2017 Second Interim Budget March 14, 2017 Dr. Drew - - PowerPoint PPT Presentation

2016-2017 Second Interim Budget

March 14, 2017

• Dr. Drew Passalacqua

Assistant Superintendent, Business Services Briana Hennes Senior Director, Business Services

• Budget Cycle
• 2nd Interim Budget Report
• LCFF Overview
• Budget Assumptions
• Revenues and Expenses
• Multi-Year Projections (MYP)

Presentation Overview

Budget Cycle

District 1st Interim Budget (December) 2nd Interim (March) Budget Adoption (June)

State

Budget Adoption (June/July) Governor’s Budget Proposal (January) May Revision (May)

• Time Period
• Actual expenditure and revenue data through January

31st

• Budget updated to reflect projected balances for June

30th

• Certification
• Positive- Meet Financial Obligations
• Qualified- May Not Meet Financial Obligations 1 Year
• Negative- Will Not Meet Financial Obligations In

Current or Next Year

2nd Interim Budget Report

• Certification
• Positive
• Qualified
• Negative
• Qualified Budget
• Budget Approved in June 2016
• 1st Interim December 2016
• Governor’s Budget Proposal January 2017
• Reduction in $2.2 Million Ongoing

2nd Interim Budget Report

Projections are updated in accordance with the best available information at the time.

• State and Legislative Updates
• Actual Payroll to Date
• CALPADS Enrollment Data
• Unduplicated Pupil Percentage

2nd Interim Budget Report

Base Grants K-3 $7,083 4-6 $7,189 7-8 $7,403 9-12 $8,578 Supplemental Grant Base Grant x 20% x Unduplicated Pupil% Concentration Grant Base Grant x 50% x Unduplicated Pupil% Above 55%

STUDENT

English Language Learner

Foster Youth Econ. Disadv.

Budget Assumptions

Assumptions 2016-2017 2017-2018 2018-2019 Local Control Funding Formula (LCFF) Target $ 94,739,849 $ 95,553,282 $ 96,534,536 Local Control Funding Formula (LCFF) Floor $ 86,519,969 $ 90,545,254 $ 90,590,886 Difference/Gap $ 8,219,880 $ 5,008,028 $ 5,943,650 Funding % 55.28% 23.67% 53.85% Total LCFF Funding $ 91,063,919 $ 91,730,654 $ 93,791,542 Estimated Unduplicated Pupil % 53.96% 54.01% 54.04% Estimated Supplemental and Concentration Grants $ 8,354,191 $ 8,520,489 $ 9,099,348 Enrollment 10,981 10,774 10,624 Projected District ADA 10,614 10,468 10,323 Loss of ADA from Prior Year (68) (146) (145) Attendance Percentage Assumed (P-2 to CALPADS) 97% 97% 97% District Funded ADA (Greater of Current or Prior Year) 10,682 10,614 10,468 Step & Column Yes Yes Yes Progress towards class size of 24 to 1 in Grades TK through 3 Yes Yes Yes Health and Welfare Increase N/A 5% 5% Lottery (Unrestricted) per ADA $ 140 $ 140 $ 140 Lottery (Restricted) per ADA for Prop. 20 $ 41 $ 41 $ 41

TK-3 Grade Span Progress

The District intends on continuing progress towards student to teacher ratios of 24:1 in grades TK-3.

Budget Assumptions

Budget Assumptions

Employer Contributions to Employee Retirement Systems

Rates continue to increase as noted below.

2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 11.77% 11.85% 13.89% 15.80% 18.70% 21.60% Salary Projections 11,498,945 13,963,618 14,738,094 14,935,279 15,135,183 15,135,183 Annual % Increase over PY 0.08% 2.04% 1.91% 2.90% 2.90% 9.83% Annual $ Increase over PY 300,729 392,851 312,653 470,505 438,920 1,915,659 $ 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 8.88% 10.73% 12.58% 14.43% 16.28% 18.13% Salary Projections 46,383,112 52,854,070 52,549,773 52,675,271 52,806,274 52,806,274 Annual % Increase over PY 1.85% 1.85% 1.85% 1.85% 1.85% 9.25% Annual $ Increase over PY 1,552,421 939,520 990,280 995,820 976,916 5,454,957 $ CalSTRS Employer Rate CalPERS Employer Rate Cumulative Affect Cumulative Affect

• RMA – Budgeted increases are attributed to the elimination of

flexibility provisions (minimum 3% of total expenditures)

• Special Education – Budgeted increases include rising STRS/PERS

rates, Health and Welfare increases as well as program take backs

Contributions to Restricted Programs

Contributions to Restricted Programs 2016-17 2017-18 2018-19 Special Education 14,408,081 $ 14,125,772 $ 14,361,502 $ RMA - Ongoing Major Maintenance 3,167,500 3,341,353 3,405,623 Total 17,575,581 $ 17,467,125 $ 17,767,125 $

Multi Year Projection - Unrestricted

2016-2017 2017-2018 2018-2019

Beginning Balance $12,207,375 $9,998,648 $4,879,480 Revenue $80,604,352 $78,631,808 $80,392,696 Expense $82,813,079 $83,750,976 $85,274,062 Surplus / (Deficit) ($2,208,727) ($5,119,168) ($4,881,366) Ending Balance $9,998,648 $4,879,480 ($1,886) Less: Designations– for Economic Uncertainties $3,339,465 $3,341,354 $0 Assigned Balances $6,659,183 $1,538,127 $0

Multi Year Projection – Combined Unrestricted & Restricted

2016-2017 2017-2018 2018-2019

Beginning Balance $18,055,396 $15,675,013 $9,948,045 Revenue $108,935,111 $105,651,481 $107,712,369 Expense $111,315,494 $111,378,449 $113,520,775 Surplus / (Deficit) ($2,380,383) ($5,726,968) ($5,808,406) Ending Balance $15,675,013 $9,948,045 $4,139,640 Less: Designations – for Economic Uncertainties $3,339,465 $3,341,353 $0 Restricted $5,676,365 $5,068,565 $4,141,525 Assigned Balances $6,659,183 $1,538,127 $0

Summary of Other Funds

Adult Education Fund 11 Cafeteria Special Revenue Fund 13 Building Fund 21 Capital Facilities Fund 25 County School Facilities Fund 35 Special Reserve Fund for Capital Outlay Project Fund 40 Beginning Balance 280,055 967,946 8,144,071 2,947,135 30,449 35,442 Revenue 427,175 4,173,350

• 285,788

6,538

• Expense

427,050 3,925,734 4,035,764 11,440 5,746

• Surplus/ (Deficit)

125 247,616 (4,035,764) 274,348 792

• Ending Balance

280,180 1,215,562 4,108,307 3,221,483 31,241 35,442 Restricted Ending Balance 280,180 1,215,562 4,108,307 3,221,483 31,241 35,442

Next Steps

• Submission to San Bernardino County

Superintendent of Schools for validation and review

• Calendar year-end processes
• Governor’s May Revise
• 3rd Interim
• Approve 2017-18 Budget

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Next Steps

• Vacant Positions
• STRS/PERS Increases
• Healthcare Committee
• Review Staffing
• SPED Costs
• #1 Priority: Limit the impact our reductions have
• n our instructional program.

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Questions?