2019/2020 Budget Update Board of Education Meeting September 5, - - PowerPoint PPT Presentation

2019/2020 Budget Update

Board of Education Meeting September 5, 2019

AGENDA

 2019/2020 Adopted Budget  Summer Activity  Pending Budget Items  Proposed Revisions to the 2019/2020

Adopted Budget

Adopted on June 6, 2019

• Assumptions included:

– New state funding – Loss of student enrollment – Specific ownership tax increase – Interest revenue increase – 1.5% COLA – Steps/lanes/quartiles – PERA employer changes – 5A expenditures – Board directed new expenditures

2019/2020 Adopted Budget

Adopted on June 6, 2019

• Assumptions included (cont’d) :

– $3.5M use of reserves; IF ongoing funds could not be found during the year end analysis

2019/2020 Adopted Budget (cont’d)

• End of year work for preparation of audit
• Salary accruals completed
• Final receipts for property tax,

specific ownership tax (SOT)

• Interest (net of fees) recorded
• Analysis of salary and benefit lines

for any available ongoing funding

• Negotiations with JCEA resumed Aug. 14
• CMAS test results released from the state

Summer Activity

Summer Activity: Negotiations - JCEA

• District team proposed for 2019/2020

– 2.5 percent COLA and – $3M for longevity pay

• Ratified by association

August 21, 2019

• Approved by the BOE

August 22, 2019

• Total amount needed to cover pay

increases = $9M

• Additional planning time for teachers

in response to latest CMAS results

• Recommend to expand teacher planning

time for elementary through middle

• school. Total implementation need

$500,000.

– Recommendation includes using $132,000 from approved budget line for ERD on Educator Pathways and additional one-time funds from unassigned reserves $368,000

Summer Activity: Planning Time

• 1. Balance 2019/2020 Adopted Budget

$3.5M

• 2. Fund additional costs from negotiations −

1% COLA and $3M longevity pay $9M

• 3. Fund one-time allocation to schools

to increase teacher planning time $368,000

Budget Items to Resolve/Fund in 2019/2020 Revised Budget

• Ongoing salary savings identified from

retirement and turnover and/or cost estimate variances.

• $3.5M use of reserves not required, no

further Board action needed for this issue

2019/2020 Adopted Budget Balanced

• 1. Balance 2019/2020 Adopted Budget

• SOT continues to be higher than

in past years – July 2019 receipts higher than July 2018

• Interest revenues higher than

the prior year

• Finance recommends increasing

the assumptions for SOT by $8M and interest by $1M for the revised budget

• Staff will closely monitor these

assumptions in addition to the assumptions already included in the 2019/2020 Adopted Budget

• 2. Fund Additional Costs from

Negotiations

• Updates will be provided in the quarterly

reports

• Shortages will be noted and addressed

for the next fiscal year, if necessary

• Reserves are adequate to absorb any

shortfalls in these estimates

• 2. Fund Additional Costs from

Negotiations (cont’d)

• $368,000 one-time, from unassigned

reserves to be allocated to schools based on a formula:

Example: A flat dollar amount that varies by grade levels and student population size, eligible to schools who implement additional planning time

• 3. Allocate One-time Funds to Schools

for Additional Planning Time

Revenue Sources – District Amount (in millions)

State Funding Increase – $21.7 Loss of Student Enrollment (250) (2.0) 1:1 Device Fees 1.1 5A Inflation 2.7% of $3M .8 State Categorical Tier B 2.0 Full Day Kindergarten (FDK) Funding 15.2 Reduction of Fees (FDK) (6.0) Interest Revenue 1.5 Specific Ownership Tax (local) 9.0 Total Additional Revenue for 2019/2020 $43.3

2019/2020 PROPOSED REVISIONS

Revenue Assumptions

REVENUE

Expenditure Description Amount (in millions)

PERA Changes (mandated) $1.3 Steps/Lanes/Quartiles & 2.5% COLA 35.2 Retirement/Turnover Savings (6.0) 5A Mill Levy Expenditures (one-time and ongoing) 14.9 1:1 Device Support from Fees 1.1 Board Directed New Expenditures (detail on slide 9) 4.1 Student Success (Tier B) Support 2.0 SBB Full Day Kindergarten 9.2 School planning time expansion .4 Total New Expenditures $62.2

2019/2020 PROPOSED REVISIONS

Expenditure Assumptions

EXPENDITURE

Expenditures over Revenue $(5.0)  Spend down of 5A Reserves $(2.5)M  Spend down of School Carry Forward $(1.9)M  One time use of Unassigned Reserves for Schools to Expand Teacher Planning $(368,000)

2019/2020 PROPOSED REVISIONS

Reconciliation of Expenditures over Revenue

GENERAL FUND

Consent agenda item for October 10, 2019 meeting to revise budget. Resolutions to be brought before the Board of Education as part

• f the 2019/2020 budget revision:

 2019/2020 Budget Appropriation  2019/2020 Use of Fund Balance

2019/2020 PROPOSED REVISIONS

Revised Budget Next Steps

Questions