2020 2021 Proposed Budget JUNE 18, 2020 2 BUDGET ADOPTION OMSD - - PowerPoint PPT Presentation
2020 2021 Proposed Budget JUNE 18, 2020 2 BUDGET ADOPTION OMSD Budget Philosophy District budget is an expression in dollars of the educational program Serves as an outline for estimated revenue and expenses for the fiscal year
JUNE 18, 2020
OMSD Budget Philosophy
District budget is an expression in dollars of the educational
program
Serves as an outline for estimated revenue and expenses for
the fiscal year
Description of resources available to support the educational
plan
Financial plan outlining proposed actions
By adopting the 2020‐21 Proposed Budget, the Board of
Public hearing on Proposed Budget was held District meets minimum State reserve levels in current and
subsequent two years
Ending general fund balance in excess of reserve is identified State‐adopted Criteria and Standards were utilized for budget
development
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Budget Adoption
Fiscal Year Begins May Revision Governor’s Budget
Governor Newsom’s May Revision announcement was on May 14th. This is the basis for our Adopted Budget
Possible Mid‐Year Adjustments
Adopted Budget
(June 18, 2020)
Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun First Interim
(TBD)
Second Interim
(TBD)
Estimated Actuals
(TBD)
2020 2021
May Revision gives us important anchors for state and local
Additional information coming Final State budget adoption Unemployment rates change Personal Income Tax (PIT) revenue State will likely need to revise its Budget when more
Current Year Assumptions (2019‐2020)
Average daily attendance (ADA) based on attendance data
through February 29, 2020
One‐Time Special Education Early Intervention Preschool Grant $8.4m Transfer In from Funds 17 and 40 to purchase over
20,000 student devices and replace staff devices
Phone system/Voice over Internet Protocol (VoIP) installation
complete
Current Year Assumptions (2019‐2020)
Impact of COVID‐19
Spending reduced for final quarter leading to a larger ending balance than
anticipated (substitutes, contracts, supplies)
However, there were costs related to COVID‐19 (learning packets,
cleaning, PPE, etc.) that offset the savings from above
Food Services fund balance lower due to reduced participation
Budget Year Assumptions (2020‐2021)
Local Control Funding Formula (LCFF) COLA set at 2.31%, but
then offset by 10% reduction
Reduction of approximately $22.6 million from May Revision
proposal
2020‐2021 AB602 Special Education base funding increase Increase in Property and Liability rates Cash Deferrals Return!
Federal CARES Funding
Estimated $6.6M (ESSER funding, net of private school $)
Currently budgeted to backfill Fund 17 and Fund 40 contributions for
purchase of 20,000 student Chromebooks at $6.2 million
Remaining $14M‐$19M (Special Ed + Learning Loss) – not included
in Budget as of yet.
Awaiting legislature/Governor agreement on final terms OMSD range dependent on outcome of ‘Concentration’ compromise Restrictions on spending likely Must be spent by December 30, 2020
22,767 22,521 21,952 21,665 21,100 20,606 20,089 19,595 19,368 18,733 18,276 17,500 18,500 19,500 20,500 21,500 22,500 23,500
Budget Year Estimate Year 4 Estimate Year 2 Estimate Year 3 Estimate
Every year, the District works with a firm that specializes in enrollment and demographic projections. These projections are used for multiple purposes, including the estimation of Average Daily Attendance (ADA) and facilities needs. The projections at left are based on information from the most recent enrollment projection report, prior to COVID‐19
grants
(OMSD largest source of revenue)
*Cost of Living Adjustment *Unduplicated Pupil Count
LCFF = Local Control Funding Formula The Local Control Funding Formula was enacted in 2013–14, and it replaced the previous K–12 finance system which had been in existence for roughly 40 years. The LCFF establishes base, supplemental, and concentration grants in place
funding streams. Funding Factors: Average Daily Attendance (ADA) – a function of enrollment Cost of Living Adjustment (COLA) Supplemental and Concentration Grants – UPP
End of the month on the calendar, but also month‐ end payroll
Compensation Costs
Staffing changes
Step/Column costs Pension (STRS/PERS) cost changes Employer Health/Welfare costs
Other
Utilities
Inflation Operating costs Technology costs
Salary and Benefits (Compensation Costs) represents approximately 81% of the General Fund Budget
100,000,000 120,000,000 140,000,000 160,000,000 180,000,000 200,000,000 220,000,000 240,000,000
Salaries and Benefits
Budget Year Estimate
$233.0m
Year 2 Estimate Year 3 Estimate
$167.1m $188.1m $193.7m $206.7m $219.7m $220.4m $224.5m $225.9m
Decrease to Pension PERS/STRS by $633K in 2020‐21
Year 4 Estimate
$228.3m $235.5m
Year 2 Estimate
Before the year begins, new compensation expenses increase by
the equivalent of a 2.0% salary increase
Expected 2020‐2021 budget changes:
Step/Column salary increases
2.0%
PERS rate increases
1.0%
STRS rate decrease
(1.0)%
Total new compensation 2.0%
Comparatively, the projected COLA in 2020‐2021 is (7.92)% Declining enrollment reduces LCFF revenue
Beginning Balance
54,978,660 34,048,614 23,485,352 20,143,980
Revenues
211,108,106 217,692,671 230,180,402 204,413,916
Expenditures
232,038,152 228,255,934 233,521,773 235,431,229
Net Increase (Decrease)
(20,930,046) (10,563,262) (3,341,372) (31,017,312)
Ending Balance 34,048,614 23,485,352 20,143,980 (10,873,333) Components of Fund Balance Minimum Reserve (3%)
8,398,945 3.0% 8,286,647 3.0% 8,436,276 3.0% 8,485,342 3.0%
Board Reserve (add'l 14%)
39,195,073 14.0% 38,671,015 14.0% 39,369,284 14.0% 39,598,260 14.0%
Budget Stabilization
(17,482,888) ‐6.2% (27,409,795) ‐9.9% (31,599,065) ‐11.2% (62,894,419) ‐22.2%
Site Carryover
3,593,490 1.3% 3,593,490 1.3% 3,593,490 1.3% 3,593,490 1.3%
Other Restrictions
343,994 0.1% 343,994 0.1% 343,994 0.1% 343,994 0.1%
34,048,614
12.2%
23,485,352
8.5%
20,143,980
7.2%
(10,873,333)
‐3.8%
2023‐24 2021‐22 2022‐23 2020‐21
Beginning Balance
54,978,660 34,048,614 23,485,352 20,143,980
Revenues
211,108,106 217,692,671 230,180,402 204,413,916
Expenditures
232,038,152 228,255,934 233,521,773 235,431,229
Net Increase (Decrease)
(20,930,046) (10,563,262) (3,341,372) (31,017,312)
Ending Balance 34,048,614 23,485,352 20,143,980 (10,873,333) Components of Fund Balance Minimum Reserve (3%)
8,398,945 3.0% 8,286,647 3.0% 8,436,276 3.0% 8,485,342 3.0%
Board Reserve (add'l 14%)
39,195,073 14.0% 38,671,015 14.0% 39,369,284 14.0% 39,598,260 14.0%
Budget Stabilization
(17,482,888) ‐6.2% (27,409,795) ‐9.9% (31,599,065) ‐11.2% (62,894,419) ‐22.2%
Site Carryover
3,593,490 1.3% 3,593,490 1.3% 3,593,490 1.3% 3,593,490 1.3%
Other Restrictions
343,994 0.1% 343,994 0.1% 343,994 0.1% 343,994 0.1%
34,048,614
12.2%
23,485,352
8.5%
20,143,980
7.2%
(10,873,333)
‐3.8%
2023‐24 2021‐22 2022‐23 2020‐21
Include Department of Finance revenue COLA of 2.48%
Draw down nearly all of one‐time set‐aside funds totaling
Beginning Balance
4,519,123 4,805,106 4,805,106 4,805,106
Revenues
95,645,100 96,265,062 97,153,217 97,958,597
Expenditures
95,359,117 96,265,062 97,153,217 97,958,597
Net Increase (Decrease)
285,983
Ending Balance 4,805,106 4,805,106 4,805,106 4,805,106 Components of Fund Balance Minimum Reserve (3%)
0.0% 0.0% 0.0% 0.0%
Board Reserve (add'l 14%)
0.0% 0.0% 0.0% 0.0%
Budget Stabilization
0.0% 0.0% 0.0% 0.0%
Site Carryover
0.0% 0.0% 0.0% 0.0%
Other Restrictions
4,805,106 1.7% 4,805,105 1.7% 4,805,105 1.7% 4,805,105 1.7%
4,805,106
1.7%
4,805,105
1.7%
4,805,105
1.7%
4,805,105
1.7%
2023‐24 2020‐21 2021‐22 2022‐23
Beginning Balance
59,497,783 38,853,720 28,290,457 24,949,085
Revenues
259,320,746 265,658,276 277,867,797 251,827,401
Expenditures
279,964,809 276,221,539 281,209,168 282,844,714
Net Increase (Decrease)
(20,644,063) (10,563,262) (3,341,372) (31,017,312)
Ending Balance 38,853,720 28,290,457 24,949,085 (6,068,227) Components of Fund Balance Minimum Reserve (3%)
8,398,945 3.0% 8,286,647 3.0% 8,436,276 3.0% 8,485,342 3.0%
Board Reserve (add'l 14%)
39,195,073 14.0% 38,671,015 14.0% 39,369,285 14.0% 39,598,260 14.0%
Budget Stabilization
(17,482,888) ‐6.2% (27,409,795) ‐9.9% (31,599,065) ‐11.2% (62,894,419) ‐22.2%
Site Carryover
3,593,490 1.3% 3,593,490 1.3% 3,593,490 1.3% 3,593,490 1.3%
Other Restrictions
5,149,100 1.8% 5,149,099 1.9% 5,149,099 1.8% 5,149,099 1.8%
38,853,720
13.9%
28,290,457
10.2%
24,949,086
8.9%
(6,068,228)
‐2.1%
2023‐24 2020‐21 2021‐22 2022‐23
Projected ending balances as of June 30, 2021
Retiree PARS Plans Liability: $2,938,580 Pension Reserve: $9,580,584 Facility and Deferred Maintenance: $7,934 Common Core and Textbook Adoptions: $5,077,693
Projected ending balances as of June 30, 2021
Projected ending balances as of June 30, 2021
Property/Liability Reserve: $64,710 Workers’ Compensation Reserve: $740,784 Retiree Health Benefits Liability Reserve: $17,337,976 Projected ending balances as of June 30, 2021
Facility Upkeep (Fund 14) Future Uses: Replacement and upgrade of facilities Ending Fund Balance Projection: $251 Facilities Growth (Fund 25) Future Uses: Developer Fee collections related to growth construction Ending Fund Balance Projection: $4,517,564
Projected ending balance as of June 30, 2021
Note: 100% of Measure K Bonds allocated to current and future building projects Projected ending balance as of June 30, 2021
Projected ending balance as of June 30, 2021
Capital Outlay (Fund 40) Future Uses: Technology Reserve, Facilities Reserve Ending Fund Balance Projection: $15,902,844
Montclair Redevelopment: $3,153,739 Upland Redevelopment: $342,514 Ontario Redevelopment: $782,648 Technology Reserve: $3,760,589 Facilities Reserve: $7,863,354
Projected ending balances as of June 30, 2021