2020-21 Proposed Budget Adoption June 15, 2020 1 Timeline for - - PowerPoint PPT Presentation

SLIDE 1

2020-21 Proposed Budget Adoption June 15, 2020

1

SLIDE 2

2

Timeline for Updating the District’s Budget

• Not later than 45 days after the

Governor signs the annual Budget Act, the school district shall make available for public review any revisions in revenues and expenditures that it has made to its budget to reflect the funding made available by the Budget Act. (EC 42127(i)(4)).

• December – The First Interim

report will be presented at the public board meeting in December of each

• year. This report will include any

changes made to the budget since the budget adoption in June, including those reported 45 days after the Governor signed the annual Budget Act.

• March – The Second Interim

report will be presented at the public board meeting in March of each year. This report will include any changes made to the budget since the First Interim report was presented in December.

• September – The Unaudited

Actuals report will be presented at the public board meeting in September of each year. This report will reflect the actual revenue and expenditures of the district for the previous budget year.

SLIDE 3

Gold Oak USD

Local Control Funding Formula (LCFF)

3

Local Control Funding Formula 2019-20 2020-21 2021-22 2022-23 LCFF - 2nd Interim 4,215,911 $ 4,240,358 $ 4,369,120 $ 4,485,823 $ LCFF - May Revise 4,211,430 $ 3,853,448 $ 3,813,715 $ 3,814,182 $ Difference (4,481) $ (386,910) $ (555,405) $ (671,641) $

SLIDE 4

Now… Some Hopeful News

• On May 28, 2020, the Senate Budget and

Fiscal Review Committee met and adopted the Senate budget plan for the 2020-21 State Budget that rejects almost all of Governor Newsom’s proposed education reductions!

• However, school districts will not know the
• utcome until AFTER our budget adoptions.
• Therefore, districts’ must plan for the

reductions.

4

SLIDE 5

More Hopeful News

• On June 3, 2020 the Senate and Assembly reached an agreement
• n the 2020-21 State Budget to close the projected budget

shortfall of $54 billion by anticipating $14 billion in additional federal fund support with trigger reductions in the event funds do not materialize, and utilizing $11.8 billion in state reserves.

• The plan rejects the Governor’s May revise proposal to reduce

Proposition 98 by $8.1 billion, which consists of the 10 percent reduction to the Local Control Funding Formula (LCFF), loss of cost of living adjustment, and reductions to various categorical programs.

• Legislative leaders and Governor Newsom are expected to begin

negotiations shortly.

• The district will provide updates as soon as possible.

5

SLIDE 6

2019-20 Budget Update (As of 05/29/2020)

Object Codes

Unrestricted Restricted Total Unrestricted Adjustments Restricted Adjustments Unrestricted Restricted Total Revenue LCFF Funding Sources

8010-8099

4,195,911

• 4,195,911

(4,480)

• 4,191,431
• 4,191,431

Federal Revenue

8100-8299

• 177,941

177,941 6,000 (38,884) 6,000 139,057 145,057 State Revenue

8300-8599

159,192 218,940 378,132 (7) 7,678 159,185 226,618 385,803 Local Revenue

8600-8799

166,002 112,804 278,806 (5,534) (2,545) 160,468 110,259 270,727 Total Revenues 4,521,105 509,684 5,030,789 (4,021) (33,751) 4,517,084 475,933 4,993,017 Expenditures Certificated Salaries

1000-1999

1,741,499 246,930 1,988,429 (15,675) (17,023) 1,725,824 229,906 1,955,731 Classified Salaries

2000-2999

686,314 182,285 868,599 (15,736) (5,785) 670,578 176,500 847,078 Employee Benefits

3000-3999

1,113,565 322,580 1,436,145 (15,292) (8,238) 1,098,273 314,343 1,412,616 Books and Supplies

4000-4999

118,736 81,075 199,811 685 (13,468) 119,421 67,607 187,028 Services and Operating Expenses

5000-5999

381,138 170,805 551,943 (7,902) (22,067) 373,236 148,739 521,974 Capital Outlay

6000-6999

35,205 28,609 63,813

• 35,205

28,609 63,813 Other Outgo

7100-7299 7400-7499

21,071 18,284 39,355 (4,481)

• 16,590

18,284 34,874 Transfers of indirect/direct support costs

7300-7399

(101,345) 92,345 (9,000) 5,535 (5,535) (95,810) 86,810 (9,000) Total Expenditures 3,996,182 1,142,914 5,139,095 (52,866) (72,116) 3,943,316 1,070,798 5,014,114 Revenue Less Expenditures 524,924 (633,230) (108,306) 48,844 38,365 573,768 (594,864) (21,096) Other Financing Sources/Uses Transfers In/Other Sources

8900-8929

• Transfers Out/Uses

7600-7629

37,621 37,621

• 37,621

37,621 Contributions

8980-8999

(539,448) 539,448

• 11,179

(11,179) (528,269) 528,269

• Total Other Sources/uses

(577,069) 539,448 (37,621) 11,179 (11,179) (565,890) 528,269 (37,621) Net Inc/Dcr to Fund Balance (52,145) (93,782) (145,927) 60,024 27,186 7,878 (66,596) (58,718) Beginning Balance 452,340 200,645 652,985

• 452,340

200,645 652,985 Ending Balance 400,194 106,863 507,058 60,024 27,186 460,218 134,049 594,267 Comp of Ending Fund Bals Non-Spendable Revolving Cash 1,625 1,625

• 1,625

1,625 Stores

• Legally Restricted

106,863 106,863

• 27,186

134,049 134,049 Assigned 191,501 191,501 65,023

• 256,524

256,524 Unassigned

• E.U.R

207,069 207,069 (4,999)

• 202,069

202,069 Unassigned/District Reserves

• State Mandated EUR

4.00% 4.00% District/State Mandated EUR 7.70% 9.08%

2019-20 2nd Interim Budget Difference Between 2nd Interim & Estimated Actuals 2019-20 Estimated Actuals (June)

6

SLIDE 7

ADA Assumptions

ADA Assumptions 2019/20 2020/21 2021/22 2022/23 Estimated Enrollment 469 438 472 466 Estimated P-2 ADA 445.09 409.18 440.93 435.33 LCFF Funded ADA Estimate 447.76 445.09 440.93 440.93 Percent ADA to Enrollment 94.90% 93.42% 93.42% 93.42% Funding Based on… Prior Year Prior Year Current Yr Prior Year

7

SLIDE 8

8

Budget Assumptions – Statutory Benefits

Benefit Rates 2019-20 2020-21 2021-22 2022-23 STRS 17.10% 16.15% 16.02% 18.10% PERS 19.721% 20.70% 22.84% 25.50% OASDI 6.2% 6.2% 6.2% 6.2% SUI 0.05% 0.05% 0.05% 0.05% Worker's Comp 1.414% 1.441% 1.441% 1.441% Medicare 1.45% 1.45% 1.45% 1.45% Certificated Total 20.014% 19.091% 18.961% 21.041% Classified Total 28.835% 29.841% 31.981% 34.641%

SLIDE 9

9

STRS/PERS Employer Rates

• STRS Decrease over 2019/20 = $-35,761
• PERS Increase over 2019/20 = $14,143

SLIDE 10

2020-21 Revenue Assumptions

• 2020-21 Revenue adjustments since 2nd Interim
• Local Control Funding Formula: -$386,910
• Federal Revenue: $106,710

– One-Time - Elem.& Secondary School Emergency Relief Funds (ESSER): $51,303 – Federal Special Education: $5,514 – Forest Reserve Funding: $6,000 (Estimated) – Title I Funding: $13,500 (Carryover) – Title II-A: $11,580 (Carryover) – Title IV: $1,135 (Carryover) – REAP: $17,677 (Carryover)

10

SLIDE 11

Revenue Adjustments

State Revenue Adjustments: $1,085

Mental Health: $-21 Mandated Block Grant: $-136 Lottery: $1,242

Local Revenue Adjustments: $1,296

Transportation Fees $-2,000 Interagency Contracts: $693 E-Rate Credits: $928 Music Donations: $-800 Local Donations: $-8 Special Education: $2,483

11

SLIDE 12

Reductions

(Included in Proposed Budget)

12 Changes/Reductions included in the 2020-21 Proposed Budget Decreases Increases Net Savings Employee on leave from K-5 Teacher position 83,746 $ 83,746 $ RSP Teacher Resigns 1.0 FTE 85,561 $ RSP Teacher Assigned 1.0 FTE Sp. Ed position 73,027 $ 12,534 $ RSP Teacher Vacates .50 FTE position 37,105 $ Potential need for .20 FTE Sp. Ed 16,749 $ 20,356 $ PE Teacher Resigns 113,555 $ Retiree Health Benefits 6,900 $ PE Position - OPEN (Estimate) 86,103 $ 20,552 $ M&O Vehicle Stipend 1,965 $ 1,965 $ Minimum Wage increase (Classified) 7,176 $ ($7,176) One-on-one Aide Contract 35,910 $ 35,910 $ 357,841 $ 189,955 $ 167,886 $ Attrition and Staffing Changes

SLIDE 13

Reductions

(Included in Proposed Budget)

13 Reductions included in the 2020-21 Proposed Budget Decreases Music Position - Reduction 1.0 FTE 86,044 $ Honor Band Stipend 1,310 $ Classroom Supplies allocation 250 $ Band Travel & Conference 500 $ Band - CMEA Cap. Section/Honor Band admission 55 $ 88,159 $ Superintendent Furlough Days 3,650 $ Principal Furlough Days 3,224 $ CBO Furlough Days 3,474 $ 10,348 $ Summer Custodian ( Works June 2021 Only) 5,412 $ Behavior Support Hourly Stipends 303 $ Reduction of 1 Bus Route 18,000 $ Reduction of .20 FTE Technology Position 9,000 $ Athletics Program (2020-21 Only) 22,041 $ 54,756 $ Other Music Program

Furlough Days (5)

SLIDE 14

Other Reductions

(Not Included in Proposed Budget)

14

CBO Position - Cut 50% (79,842) $ Cost of .50 FTE Accountant (Estimate at Step 3) 39,224 $ Difference (40,618) $ Plant Manager Position - Cut 50% (55,015) $ Cost of .50 FTE Custodian (Estimate at Step 5) 32,729 $ Cost of Contracting for Repairs Unknown ??? Difference (22,286) $ Other Possible Reductions For the Future (NOT included in Proposed Budget) Other Possible Reductions

SLIDE 15

Other Reductions

(Not Included in Proposed Budget)

15

504 Hourly Stipends - (2019-20 Side Agreement) 595 $ IEP Hourly Stipends - (2019-20 Side Agreement) 4,764 $ SST Hourly Stipends - (2019-20 Side Agreement) 2,144 $ Oral Interp Stipend - Gold Oak 357 $ Oral Interp Stipend - Pleasant Valley 238 $ Science Camp Coordinator 595 $ Science Camp Overnight Stipend 715 $ Spelling Bee Stipend-Gold Oak 238 $ Spelling Bee Stipend-Pleasant Valley 476 $ Student Council Stipend - Gold Oak 595 $ Student Council Stipend - Pleasant Valley 893 $ Yearbook Stipend - Gold Oak 595 $ Yearbook Stipend - Pleasant Valley 893 $ 13,100 $ Other Possible Reductions For The Future (NOT included in Proposed Budget) Stipends

SLIDE 16

Other Reductions

(Not Included in Proposed Budget)

16

Other Potential COVID Reductions (NOT included in Proposed Budget) Library hours reduction (No Friday's) 4,410 $ RSP Aide Reduction (Estimating each aide to 2 days/week) 58,669 $ PM Recess Yard Duty Aides (No Friday's) 548 $ Lunch Supervisors/AM recess/Bus (No Friday's) 8,012 $ Transportation Clerk 974 $ Bus Drivers (No Friday's) 11,625 $ 190,034 $

SLIDE 17

Other Budget Considerations

17

• The Superintendent and CBO have completed a thorough review of each line item in the 2020-21 Budget and have

adjusted the budget based on this review. Below are samples of some of those changes. – Examples of Decreases:

• Equipment repair budget for printers
• Behavior support stipends were eliminated and administration will perform those duties
• LCAP instructional supply costs have been reduced, eliminated or funded with restricted funds when appropriate
• Musical instrument repair budget
• Climate Training assembly
• Contracted One-on-One aide for special needs
• Travel & Conference costs

– Examples of Increases:

• Equipment replacements
• Internet access costs
• Postage costs
• PG&E costs
• Psychologist testing supplies
• COVID expenses increase in the 2020-21 budget using one-time restricted ESSER funds
• Contracts with EDCOE for support services (Nurse, WAN support, Hearing and Vision Screening)
• Special Education Transportation costs
• Legal Expenses

SLIDE 18

18

Summary of Changes

2020-21 Proposed Budget Summary Unrestricted Restricted Total 2nd Interim Estimated Beg. Bals 400,194 $ 106,863 $ 507,058 $ 2019-20 Adjustments 60,024 $ 27,186 $ 87,210 $ Adjusted Beginning Bals 460,218 $ 134,049 $ 594,267 $ Plus: 2020-21 Revenues 3,581,158 $ 1,025,716 $ 4,606,874 $ Less: 2020-21 Expenditures 3,724,837 $ 1,047,369 $ 4,772,205 $ 2020-21 Estimated Ending Balance 316,539 $ 112,397 $ 428,936 $

SLIDE 19

Multi-Year Projections Revenue

19

Unrestricted Restricted Total Unrestricted Restricted Total Unrestricted Restricted Total

REVENUE: LCFF Revenue

8010-8099

3,833,448 3,833,448 3,793,715 3,793,715 3,794,182 3,794,182 Federal Revenue

8100-8299

6,000 255,574 261,574 6,000 159,817 165,817 6,000 159,817 165,817 Other State Revenue

8300-8599

86,745 217,015 303,760 84,822 216,745 301,567 84,932 216,475 301,407 Local Revenue

8600-8799

92,805 115,287 208,092 97,993 115,287 213,280 98,877 113,287 212,164 TOTAL REVENUE 4,018,998 587,876 4,606,874 3,982,530 491,849 4,474,379 3,983,991 489,579 4,473,570

Multi-Year Projections -

2020-21 2021-22

Gold Oak Union School District

2022-23

SLIDE 20

Unrestricted Restricted Total Unrestricted Restricted Total Unrestricted Restricted Total

Certificated Salaries

1000-1999

1,596,129 219,300 1,815,429 1,627,813 221,143 1,848,956 1,651,193 224,805 1,875,998 Classified Salaries

2000-2999

659,957 188,653 848,610 677,694 174,453 852,147 689,253 182,422 871,675 Benefits

3000-3999

998,143 316,989 1,315,132 989,826 325,801 1,315,627 1,012,919 338,572 1,351,491 Books & Supplies

4000-4999

95,599 135,336 230,935 101,498 45,969 147,467 101,387 43,343 144,730 Services

5000-5999

376,437 119,554 495,992 380,562 107,952 488,514 380,862 107,218 488,080 Capital Outlay

6000-6599

Other Outgo

7100-7299 7400-7499

15,283 22,844 38,127 15,265 26,542 41,807 15,267 31,764 47,031 Direct Support/Indirect Costs

7300-7399

• 53,692

44,692

• 9,000
• 51,069

42,069

• 9,000
• 51,069

42,069

• 9,000

ADDITIONAL REDUCTIONS NEEDED

• 159,351
• 159,351
• 344,992
• 344,992

TOTAL EXPENDITURES 3,687,856 1,047,369 4,735,224 3,582,238 943,929 4,526,167 3,454,820 970,192 4,425,013 2020-21 2021-22 2022-23 EXPENDITURES:

Expenditures

20

SLIDE 21

Financing Sources

21

Unrestricted Restricted Total Unrestricted Restricted Total Unrestricted Restricted Total

Interfund Transfers In

8910-8929

Interfund Transfers Out

7610-7629

36,981 36,981 39,021 39,021 41,875 41,875 Other Sources

8930-8979

Other Uses

7630-7699

Contributions

8980-8999

• 437,840

437,840

• 462,964

462,964

• 491,228

491,228 TOTAL TRANSFERS IN/OUT

• 474,821

437,840

• 36,981
• 501,985

462,964

• 39,021
• 533,103

491,228

• 41,875

NET INCREASE (DECREASE)

• 143,679
• 21,652
• 165,332
• 101,693

10,885

• 90,809
• 3,932

10,615 6,683 BEGINNING BALANCE 460,218 134,049 594,267 316,539 112,397 428,936 214,846 123,282 338,127 PROJECTED ENDING BALANCE 316,539 112,397 428,936 214,846 123,282 338,127 210,914 133,897 344,810 OTHER FINANCING SOURCES/USES 2022-23 2020-21 2021-22

SLIDE 22

Components

22

PROJECTED ENDING BALANCE 316,539 112,397 428,936 214,846 123,282 338,127 210,914 133,897 344,810 COMPONENTS OF THE ENDING BALANCE:

Unrestricted Restricted Total Unrestricted Restricted Total Unrestricted Restricted Total

Non-Spendable Revolving Cash 1,625 1,625 1,625 1,625 1,625 1,625 Legally Restricted Balances

63,336

63,336

74,221

74,221

84,836

84,836 Classified School Employee Prof. Dev. BG

1,836

1,836

1,836

1,836

1,836

1,836 MTSS Grant

4,215

4,215

4,215

4,215

4,215

4,215

43,009

43,009

43,009

43,009

43,009

43,009 112,397 112,397 123,282 123,282 133,897 133,897 Assigned Reserves

2,730 2,730 2,730 2,730 2,730 2,730 23,664 23,664

PV Sports Uniforms

16 16 16 16 16 16 2,409 2,409 2,409 2,409 2,409 2,409

Gold Oak/Playground Structures

5,005 5,005 5,005 5,005 5,005 5,005 20,454 20,454 20,454 20,454 20,454 20,454 69,749 69,749

124,026 124,026 30,613 30,613 30,613 30,613 Unassigned State Economic Uncertainty 190,888 190,888 182,608 182,608 178,676 178,676 Unappropriated Fund Balance 2020-21 2021-22 Total Assigned Reserves Instructional Materials (IMF) Reserve District Reserve Goal (17%) Routine Restricted Maintenance Total Legally Restricted Restricted Lottery (IMF Reserve) Compensated Absence Liability Retiree Reserve (2013/14) Music Program 2022-23

SLIDE 23

23

District: Gold Oak Union School District Combined Assigned and Unassigned Fund Balances Fund Fund Description 2020-21 Budget 2021-22 Budget 2022-23 Budget 01 General Fund/County School Service Fund 314,914 $ 213,221 $ 209,289 $ Fund 01, Objects 9780/9789/9790 17 Special Reserve Fund for Other Than Capital Outlay Projects $0 $0 $0 Fund 17 Objects 9780/9789/9790 Total Assigned and Unassigned Fund Balance $314,914 $213,221 $209,289 District Standard Reserve Level 4.00% 4.00% 4.00% Form 01CS Line 10B-4 Less: District's Reserve Standard amount 190,888 $ 182,608 $ 178,676 $ Form 01CS Line 10B-7 Fund Balance over 4% State Recommended Minimum Level $124,026 $30,613 $30,613 Reasons for Assigned and Unassigned Ending Fund Balances Above the State Recommended Minimum Level Form Fund 2020-21 Budget 2021-22 Budget 2022-23 Budget Reasons 01 General Fund/County School Service Fund

• Compensated Absences Payable

$2,730 $2,730 $2,730 Unfunded Liability Retiree Reserve (2013/14) $23,664 $0 Unfunded Liability PV Sports Uniforms $16 $16 $16 Donations Gold Oak Playground Structures $5,005 $5,005 $5,005 Donations Music Program $2,409 $2,409 $2,409 Donations Instructional Materials Funds $20,454 $20,454 $20,454 Reserve for Textbooks Board Goal - District Stabilization Reserve $44,541 $0 Goal to maintain 17% 17 Special Reserve Fund for Other Than Capital Outlay Projects

• Total of Substantiated Needs

$98,818 $30,613 $30,613 These reserve levels will only be met if reductions are made in 2021-22 & 2022-23 Percent of Total Substantiated Reserves 2.07% 0.67% 0.69% Percent of Total Current Reserves 6.07% 4.67% 4.69%

Reasons for Assigned and Unassigned Ending Fund Balances Above the State Recommended Minimum Level

Education Code Section 42127(a)(2)(B) requires a statement of the reasons that substantiates the need for assigned and unassigned ending fund balances in excess of the minimum reserve standard for economic uncertainties for each fiscal year identified in the budget.

SLIDE 24

24

Education Protection Account (EPA) Revenue

• On November 6, 2012 California voters passed the “Schools and Local Public Safety Protection Act of

2012”. This initiative, also known as Proposition 30, restored an on-going $441 per ADA Revenue Limit reduction in 2012/13.

• EPA funds must be accounted for separately at the state and district level.
• LEA Boards must make annual spending determinations in an open session at a public meeting.
• District’s must annually post on their website an accounting of how much money was received from EPA

and how the money was spent.

• Estimated at $484,095
• Funds cannot be spent on administrative costs.
• It is recommended the Board approve the continuation of supporting teachers’ salaries with the use of

these funds as appropriated in this 2020/21 proposed budget.

SLIDE 25

25

2020-21

General Fund Cafeteria Fund

• Def. Maint.

Fund Capital Facilities Fund Bond Fund Total Net Worth

Total Revenues

4,606,874 165,203 20,100 53,000 282,643 5,127,819

Total Expenses

4,735,224 202,183 20,100 6,500 282,643 5,246,650

Transfers in/out

(36,981) 36,981

Excess (Deficiency)

(165,332) 46,500 (118,832)

Estimated Beginning Balance

594,267 2,558 213,896 201,663 1,012,384

Ending Balance

428,936 2,558 260,396 201,663 893,553

Gold Oak Union School District

District Net Worth - All Funds 2020-21 Proposed Budgets- All Funds

SLIDE 26

26

GENERAL FUND SUMMARY

• The 2020/21 General Fund Budget projects deficit spending of $165,332.

– After removal of all one-time revenues and expenditures it reveals a “True” deficit spending level of $90,084

• Reserve levels in the 2020/21 proposed budget are currently projected at

6.07%

• Reserve levels in the 2021/22 and 2022/23 budgets are projected at

4.67% and 4.69%

– This level of reserve will only be attainable if revenues increase or expenditure reductions are made as outlined in this report – The district will focus on increasing attendance and/or reducing expenditures to meet the minimum 4% economic reserve levels.

• Reserve levels are below the minimum 17% as recommended in Board

Policy 3100.

SLIDE 27

27

Conclusion

• In conclusion, it is recommended that the Board approve the

following:

 2020/21 Proposed Budget as presented.  2020/21 Proposed use of EPA funds.

SLIDE 28

28

Board of Trustees Renee Ferguson– President Sheri Cook - Clerk Kim Nida Jerold Soracco Casey Murdock <> Meg Enns – Superintendent/Principal Linda Himmel – Chief Business Officer

SLIDE 29

Questions

29