2020-2021 FINAL BUDG ET Special Meeting of the Board of School - - PowerPoint PPT Presentation

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2020-2021 FINAL BUDGET 2020-2021 FINAL BUDG ET Special Meeting of the Board of School Trustees May 18, 2020 Jason Goudie Chief Financial Officer Jason Goudie Reference 4.02(A) Page 1 of 19 May 18, 2020 2020-2021 FINAL BUDGET 2020-2021

SLIDE 1

Special Meeting of the Board of School Trustees

May 18, 2020 Jason Goudie Chief Financial Officer

2020-2021 FINAL BUDG ET

2020-2021 FINAL BUDGET Page 1 of 19 Jason Goudie May 18, 2020 Reference 4.02(A)

SLIDE 2

O VERVIEW

2020-2021 Timeline Uncertainties State Funding Total Per Pupil Revenues Student Enrollment and DSA Where the Money Comes From General Operating Revenues Revenue: State Projections and Assumptions Where the Money is Spent Where Special Education Fund Money is Spent Final Budget Comparison Fund Balance Comparison Unassigned Ending Fund Balance Employee Contracts Status

2020-2021 FINAL BUDGET Page 2 of 19 Reference 4.02(A)

SLIDE 3

2020-2021 TIMELINE

April May June July

Tentative Budget Submission required by April 15 to Nevada Department of Taxation Fiscal Year 2021 Begins July 1, 2020 Final Budget Submission required by June 8 to Nevada Department of Taxation

January

Departments directed to provide flat budgets Tentative Budget (TB) Regular Board Session April 23, 2020

December

Adoption Amended Final Budget (AFB) December 10, 2020 Adoption Final Budget (FB) May 18, 2020 Strategic Budget Workbooks Provided to schools on January 15 based on projected enrollment

September

Strategic Budget Workbooks Updated with actual enrollment figures Amended Final Budget Submission required by January 1, 2021, to Nevada Department of Taxation 2020-2021 FINAL BUDGET Page 3 of 19 Reference 4.02(A)

SLIDE 4

Coronavirus Disease 2019 (COVID-19) fiscal impacts Possible recession impacts Enrollment uncertainties State of Nevada funding reductions to K-12 education Senate Bill (SB) 551 court case related to legality of SB551 (State of Nevada’s plan was to fund this from “Rainy Day” fund if Supreme Court ruled SB511 was not legal) Amount of reimbursement and additional disaster funding from the federal government

UNCERTAINTIES

2020-2021 FINAL BUDGET Page 4 of 19 Reference 4.02(A)

SLIDE 5

STATE FUNDING

Basic Guaranteed Support - Distributive School Account (DSA)

$4,489 $4,891 $4,958 $4,962 $5,035 $5,136 $5,257 $5,457 $5,527 $5,512 $5,574 $5,700 $5,781 $6,067 $6,138

$4,300 $4,500 $4,700 $4,900 $5,100 $5,300 $5,500 $5,700 $5,900 $6,100

+$286 +$71 +$204 +$402 +$67 +$4 +$73 +$101 +$121 +$200 +$70

(General Operating Fund)

+$62 +$81 +$126

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SLIDE 6

TOTAL PER PUPIL REVENUES

(General Operating Fund)

Does not include “Other Financing Sources,” which primarily are proceeds from bond issuances and transfers-in.

$4,891 $4,958 $4,962 $5,035 $5,136 $5,257 $5,457 $5,527 $5,512 $5,574 $5,700 $5,781 $6,067 $6,138 $214 $234 $234 $231 $235 $229 $239 $243 $256 $348 $384 $406 $431 $445 $1,330 $1,375 $1,346 $938 $917 $817 $877 $886 $943 $907 $1,163 $1,197 $1,213 $1,172 Total $6,435 Total $6,567 Total $6,541 Total $6,205 Total $6,288 Total $6,303 Total $6,574 Total $6,655 Total $6,710 Total $6,830 Total $7,247 Total $7,384 Total $7,712 Total $7,755 $‐ $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000 $9,000 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Amended Final Budget 2021 Final Budget

Local Funding Outside of DSA primarily are revenues from local school support tax, property tax, governmental services tax, donations, other miscellaneous revenues.

2020-2021 FINAL BUDGET Page 6 of 19 Reference 4.02(A)

SLIDE 7

300,000 302,000 304,000 306,000 308,000 310,000 312,000 314,000 316,000 318,000 320,000 322,000 324,000 326,000 328,000 330,000

314,684 317,506 317,084 316,927 FY20 Q1 FY20 Q2 FY20 Q3 FY20 Q4*

Average ADE = 316,550*

$6,067

STUDENT ENROLLMENT AND DSA

ADE = Average Daily Enrollment (*Projected)

317,858 319,967 319,252 319,054 FY19 Q1 FY19 Q2 FY19 Q3 FY19 Q4

Average ADE = 319,033

$5,781

319,311 321,805 321,695 321,586 FY18 Q1 FY18 Q2 FY18 Q3 FY18 Q4

Average ADE = 321,099

$5,700

314,168 315,474 316,205 315,337 FY21 Q1* FY21 Q2* FY21 Q3* FY21 Q4*

Average ADE = 315,296*

$6,138

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SLIDE 8

DSA $806.1 32.5% Other $141.2 5.7% LSST $961.4 38.8%

(2/3) $381.0 15.4% (1/3) $190.5 7.7%

Property Tax $571.5 23.0%

(B) (C)

Basic Support Guarantee: Support per Student $1,922.5 ($6,138x313,205)

Est. Special Education

140.2 Support Guarantee $2,062.7 Less: LSST 961.4 (A) Less: 1/3 Property Tax 190.5 (B) Less: Budget Reserve (COVID-19) 41.9 Less: Charter Adjustments 63.0 Distributive School Account $ 806.1 (C)

2010 2013 2017 2019 2021 Budget

Property Tax

General Operating Fund Revenues (in millions)

600 800 1000 1200

2011 2013 2015 2017 2019 2021 Budget

Local School Support Tax (LSST)

(in millions) (in millions)

FY 2020 General Fund Ending Fund Balance $240.4 million includes unassigned balance of $48.6 million.

Where the Money Comes From

(A)

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SLIDE 9

Description TB FY 2021 FB FY 2021 Change Comments Local School Support Tax $1,091,710,000 $961,361,000 ($130,349,000) See slide "Revenue: State Projections and Assumption" Ad Valorem (Property) Tax 552,442,000 571,511,000 19,069,000 See slide "Revenue: State Projections and Assumption" Governmental Services Tax 82,821,000 74,194,000 (8,627,000) See slide "Revenue: State Projections and Assumption" Two Percent Franchise Tax 4,680,000 4,680,000 0 3-year average of $4.7 million E-Rate Reimbursements 3,230,000 3,230,000 0 3-year average of $3.2 million Local Government Taxes 1,380,000 1,380,000 0 3-year average of $1.5 million Tuition And Summer School 3,120,000 3,120,000 0 3-year average of $3.1 million Adult Education 150,000 150,000 0 3-year average of $0.2 million Athletic Proceeds 1,120,000 1,120,000 0 3-year average of $1.1 million Services Provided 1,660,000 1,660,000 0 3-year average of $1.6 million Donations And Grants 1,050,000 1,050,000 3-year average of $1.1 million (less: school generated funding was moved to Student Activities Fund) Other Local Sources 9,590,000 9,590,000 0 3-year average of $9.4 million Interest Income 3,660,000 3,660,000 0 3-year average of $4.5 million Total Local Sources 1,756,613,000 1,636,706,000 (119,907,000) State Distributive Fund 723,945,000 806,072,000 82,127,000 See slide "Revenue: State Projections and Assumption" Total State Sources 723,945,000 806,072,000 82,127,000 Federal Impact Aid 140,000 140,000 0 3-year average of $0.1 million Forest Reserve 70,000 70,000 0 3-year average of $0.1 million Administrative Claiming 1,170,000 1,170,000 0 3-year average of $1.2 million Total Federal Sources 1,380,000 1,380,000 Sales Of District Property 950,000 950,000 0 3-year average of $1.0 million Total Other Sources 950,000 950,000

Total Operating Revenues $2,482,888,000 $2,445,108,000 ($37,780,000)

GENERAL OPERATING REVENUES

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SLIDE 10

REVENUE: STATE PROJECTIONS AND ASSUMPTIONS

Property Tax

Final Budget FY 2021 = $ 571,511,000 Tentative Budget FY 2021 = $ 552,442,000 Additional Revenue = $ 19,069,000

Local School Support Tax (LSST)

Final Budget (FB) FY 2021 = $ 961,361,000 Tentative Budget FY 2021 = $1,091,710,000 Less Revenue = ($ 130,349,000)

FY 2021 FB based on Nevada Department of Taxation’s FY 2021 Final Local Government Revenue

Projection. In addition, an 11.5 percent reduction was applied to Nevada Department of Taxation’s FY

2021 Final Local Government Revenue Projection, due to FY 2021 LSST projection being issued prior to the COVID-19 state of emergency. The 11.5 percent reduction aligns CCSD with the same impact experienced during the Great Recession and decreased LSST by $125 million, which per Nevada’s K-12 funding plan this revenue loss will go as additional DSA funding, for a net revenue impact of $0. FY 2021 FB based on Nevada Department of Taxation’s FY 2021 Proforma Ad Valorem Revenue

Projections. There was a significant change to General Cap Rate for Tax Cap Factors, the Moving Average

Growth Rate for CCSD was 4.6 percent in FY 2020 and increased to 6.7 percent for FY 2021.

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SLIDE 11

REVENUE: STATE PROJECTIONS AND ASSUMPTIONS

Distributive School Account

Final Budget FY 2021 = $ 806,072,000 Tentative Budget FY 2021 = $ 723,935,000 Additional Revenue = $ 82,127,000

Governmental Services Tax

Final Budget FY 2021 = $ 74,194,000 Tentative Budget FY 2021 = $ 82,821,000 Less Revenue = ($ 8,627,000)

FY 2021 FB based on Nevada Department of Taxation’s FY 2021 Final Local Government Revenue Projection and applying a 10 percent reduction due to FY 2021 GST projection being issued prior to the COVID-19 state of emergency. The 10 percent reduction from the Nevada Department of Taxation’s FY 2021 GST projection aligns CCSD with the same impact experienced during the Great Recession. DSA funding is based on General Fund DSA changing, one-third of the $19.1 million property tax increase will decrease DSA by $6.3 million, COVID-19 budget reduction of $41.9 million (72 percent of $58.2 million), and LSST will decrease by $130.3 million, which is an increase to DSA. Due to net adjustments, the General Fund DSA revenue decreased by $82.1 million. Special Education Fund DSA is projected to remain the same at $140.2 million.

(CONTINUED)

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SLIDE 12

WHERE THE MONEY IS SPENT

Other 13%* Salaries and Benefits 87%*

*General Operating Fund

Full-Time Equivalents (FTEs) ($ IN MILLIONS)

School Based - Strategic 16,740 64.0% 1,480.7 63.7% School Based 5,410 20.7% 468.3 20.1% Transportation 1,630 6.2% 119.8 5.2% Central Office 2,364 9.1% 256.9 11.0% Total 26,144 100% 2,325.7 100%

($ IN MILLIONS)

Textbooks/Supplies $ 150.8 Fuel/Vehicle/Buses 60.8 Electricity/Gas/Water/Utility 47.7 Professional Services 22.1 Technology 19.5 Property/Liability Insurance 17.8 Repairs/Maintenance 11.0 Printing 2.3 Postage 1.5

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SLIDE 13

Where Special Education Fund Money is Spent

FTEs = Full-Time Equivalents (includes all employee groups)

Department FTEs $ (In Millions) Legal

1.0 $ 0.2

Student Record

10.0 0.6

Student Services Division

381.8 49.7

Special Education - Licensed Positions

3,575.3 317.0

Special Education - Support Positions

1,260.7 80.9

Transportation

930.5 75.3

Grand Total 6,159.3 $ 523.7

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SLIDE 14

FINAL BUDGET COMPARISON

2019 Amended Final Budget 2020 Amended Final Budget Change 2021 Final Budget Change Beginning Fund Balance

$ 66.8 $ 170.9 104.1 $ $ 240.4 69.5 $

Total Revenues

2,344.4 2,443.3 98.9 2,445.1 1.8

Total Resources

2,411.2 2,614.2 203.0 2,685.5 71.3

Total Salaries and Benefits

2,098.4 2,233.8 135.4 2,325.7 91.9

Total Services

98.8 116.4 17.6 106.7 (9.7)

Total Supplies

158.2 163.6 5.4 176.1 12.5

Total Property

42.8 38.1 (4.7) 46.5 8.4

Total Other

4.5 4.2 (0.3) 4.2 0.0

Total Expenditures

2,402.7 2,556.1 153.4 2,659.2 103.1

Other Financing Sources

37.3 37.0 (0.3) 35.0 (2.0)

Total Fund Balance Details

$ 45.8 $ 95.1 49.3 $ $ 61.3 (33.8) $

Indirect Cost Fund and Donations

0.8 2.3 2.3

Nonspendable (Inventory)

4.0 4.0 4.0

Potential shortfall

39.9

Unassigned

41.0 48.9 55.0

Unassigned at 1.75% Unassigned at 2.00% Unassigned at 2.25%

Total

45.8 $ 95.1 $ 61.3 $

Deficit

‐ $ ‐ $ ‐ $

(IN MILLIONS)

2020-2021 FINAL BUDGET Page 14 of 19 Reference 4.02(A)

SLIDE 15

FUND BALANCE COMPARISON

Beginning Bal. Ending Bal. Beginning Bal. Ending Bal. Beginning Bal. Ending Bal.

Restricted: Nonspendable ‐ Inventory $ 3.3 $ 4.0 $ 4.0 $ 4.0 0.7 $ $ ‐ Donations 0.4 0.3 0.3 0.3 (0.1) ‐ School Technology 0.5 ‐ ‐ ‐ (0.5) ‐ Buses 0.2 ‐ 10.1 ‐ 9.9 ‐ School Carryover (Service Level Agreements) 7.1 ‐ 6.0 ‐ (1.1) ‐ School Carryover (Supplies) 26.4 ‐ 57.0 ‐ 30.6 ‐ School Carryover (Net Vacancy) 34.4 ‐ 45.0 ‐ 10.6 ‐ School‐Based Project Carryover 7.5 ‐ 9.0 ‐ 1.5 ‐ Unrestricted: Assigned/Indirect Costs 49.9 41.9 60.4 2.0 10.5 (39.9) Unassigned Fund Balance 41.2 48.9 48.6 55.0 7.4 6.1 Total $ 170.9 $ 95.1 $ 240.4 $ 61.3 69.5 $ (33.8) $

2021 Final Budget 2020 Amended Final Budget Change

Bal. = Balance

(in millions)

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SLIDE 16

UNASSIGNED ENDING FUND BALANCE

$0 $10 $20 $30 $40 $50 $60 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Unassigned Fund Balance

1% 1% 1% 1% 1.75% 0.30% 0.81% 2% 2.25% 1.5%

($ IN MILLIONS) Budgeted

Regulation 3110, requires the District to have a 2 percent unassigned ending fund

balance.

1.75%

Estimated

1.25%

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SLIDE 17

Bargaining Group Status FY 2020 FY 2021

Clark County Education Association CCEA (Teachers) Complete CBA reached through FY 2021.

Salary table increased by 3 percent
One step and longevity movement
Increased health insurance

contribution of 4 percent

Professional growth system
One step and longevity

movement

Increased health insurance

contribution of 4 percent

Professional growth system

Education Support Employees Association ESEA (Support Professionals) Complete CBA reached through FY 2021.

Salary table increased by 3 percent
One step and longevity movement
Increased health insurance

contribution of 4 percent

One step and longevity

movement

Increased health insurance

contribution of 4 percent Clark County Association of School Administrators and Professional-technical Employees CCASAPE (Administrators) Complete CBA reached through FY 2021.

Salary table increased by 3 percent
One step and longevity movement
Increased health insurance

contribution of 4 percent

One step and longevity

movement

Increased health insurance

contribution of 4 percent Police Officers Association

f the Clark County School

District POA Complete CBA reached through FY 2021.

Step L and Step M added to the

salary table

Salary table increased by 3 percent
One step and longevity movement
Differential pay of 6.9 percent
Increased health insurance

contribution of 4 percent

One step and longevity

movement

Differential pay of 6.9 percent
Increased health insurance

contribution of 4 percent Police Administrators Association PAA Complete CBA reached through FY 2021.

Salary table increased by 3 percent
Step and longevity movement
Increased health insurance

contribution of 4 percent

Step and longevity movement
Increased health insurance

contribution of 4 percent

EMPLOYEE CONTRACTS STATUS

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SLIDE 18

C LO SING C O MMENTS a nd Q UESTIO NS

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SLIDE 19

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