Annual Budget Cycle We are Adopted here! Budget 2018-19 (July) - - PowerPoint PPT Presentation

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Jun 03, 2023 11 likes •178 views

2018-19 A DOPTED B UDGET F INANCIAL R EPORT C OVINA -V ALLEY U NIFIED S CHOOL D ISTRICT B OARD OF E DUCATION M EETING J UNE 26, 2017 B USINESS AND F ISCAL S ERVICES 1 Annual Budget Cycle We are Adopted here! Budget 2018-19 (July)

SLIDE 1

2018-19 ADOPTED BUDGET FINANCIAL REPORT

COVINA-VALLEY UNIFIED SCHOOL DISTRICT BOARD OF EDUCATION MEETING – JUNE 26, 2017 BUSINESS AND FISCAL SERVICES

SLIDE 2

Annual Budget Cycle

Adopted Budget 2018-19 (July) Revised Adopted Budget (45 Days)

1st Interim Financial Report (December)

Governor’s Budget Proposal (January) 2nd Interim Financial Report (March)

Preliminary Report

(April) May Revise Adopted Budget 2018-19 (June)

We are here!

SLIDE 3

LEGAL REQUIREMENTS

Board action is required for Budget Adoption in

accordance with Education Code 42127

Board Members must authorize an Operating Budget

by June 30th of each year

No later than five days after Adoption or by July 1st,

whichever occurs first, the Operating Budget must be filed with the County Superintendent of Schools

SLIDE 4

2018-19 LOCAL CONTROL FUNDING FORMULA

The January Budget proposed $2.9 billion for

continued implementation of the LCFF- GAP funding

May Revision proposes more than $3.2 billion for

continued implementation of the LCFF- GAP funding, $300 million above the January level

New funding is estimated to reach full implementation

in 2018-19, two years earlier than planned

SLIDE 5

PROPOSITION 98 STILL GOVERNS

THE LEVEL OF FUNDING

 Recent years have started with low revenue forecasts that

got better

Over the last five years, multi-billion dollar increases in the

Proposition 98 minimum guarantee were common at the May Revision due to the Department of Finance’s (DOF) conservative forecasts

While tax collections are exceeding the January forecast,

analysts believe that the growth in General Fund revenues is due in part to taxpayers shifting income from 2017 to 2018 to take advantage of the new lower federal tax rates

In addition, the Governor is still planning for a recession and

focused on building reserves and limiting new ongoing

bligations
Therefore, while the May Revision shows increased General

Fund revenues, the growth to Proposition 98 is minimal

SLIDE 6

JANUARY BUDGET VS. MAY REVISION

LCFF Gap Funding 100.00% 100.00% Proposition 98 Minimum Funding Guarantee 2016-17 2017-18 2018-19 $71.4 billion $75.2 billion $78.3 billion $71.6 billion $75.6 billion $78.4 billion 2018-19 COLA 2.51% 2.71% One Time Discretionary Funds for 2018-19 $1.8 billion $295 per ADA $2.02 billion $344 per ADA January Budget May Revision Item

SLIDE 7

COVINA-VALLEY USD

2018-19 GENERAL FUND BUDGET ASSUMPTIONS

Local Control Funding Formula

› LCFF at full implementation › COLA updated to 3.00% › Unduplicated pupil count at 69.60%

Projected enrollment decline

› 300 - 2018/19 through 2020/21 (100 each year)

Federal, State, and Local

› Contracted salary agreement not settled › Health and Welfare 6.5% increase › STRS and PERS Increases › 3% RRM contribution implemented 2020-21 › Potential budget revisions

SLIDE 8

MAJOR CHANGES SINCE THE SECOND INTERIM (IN MILLIONS)

LCFF Funding Variables ($0.06) $0.76 $0.63 $1.33 Increase in lease revenue - Goals $0.07 $0.07 $0.07 $0.20 Increase for Child Nutrition negative balances transfer ($0.06) ($0.06) ($0.06) ($0.18) Decrease in OFL revenue ($0.91) ($0.91) ($0.91) ($2.73) Increase in Special Ed contribution ($0.38) ($0.38) ($0.38) ($1.14) 18-19 One-Time Funding $0.54 $0.00 $0.00 $0.54 Lowered H&W from 9.5% to 6.5% $0.00 $0.36 $0.78 $1.14 Cumulative (Cost Increase)/Savings 2018-19 2019-20 2020-21

SLIDE 9

2018-19 ADOPTED BUDGET GENERAL FUND REVENUES

Total Revenue = $150,778,069

9 Local Control Funding Formula 78.06% Federal 4.39% Other State 13.9% Other Local/Financing Sources 3.65%

SLIDE 10

2018-19 ADOPTED BUDGET GENERAL FUND EXPENDITURES

Total Expenditures = $152,196,223

10 Books and Supplies 4.29% Operating Services 9.93% Other Outgo/Trans fer Out 4.3% Certificated Salaries 42.84% Classified Salaries 14.42% Employee Benefits 24.22% Other 81.48%

SLIDE 11

MULTI-YEAR GENERAL FUND BUDGET PROJECTIONS

Adopted Projected Projected Budget Budget Budget 2018-19 2019-20 2020-21 Beginning Fund Balance $28,350,153 $26,931,999 $20,491,704 Audit Adjustment/Restatement

Revised Fund Balance

$28,350,153 $26,931,999 $20,491,704 Annual Revenues (includes other financing sources) $150,778,069 $149,364,239 $151,466,371 Annual Expenditures (include other financing uses) $152,196,223 $155,804,534 $159,482,569 Changes in Fund Balance ($1,418,154) ($6,440,295) ($8,016,198) Projected Ending Fund Balance $26,931,999 $20,491,704 $12,475,506

I. Unavailable Reserves:

$6,062,512 $5,541,430 $7,019,109 1.) Nonspendable:

a. Revolving Cash

$35,000 $35,000 $35,000

b. Inventory

$24,000 $24,000 $24,000

c. Prepaid Expenditures

$1,142,940 $498,572

2.) Restricted Program Balances

$4,860,572 $4,983,858 $6,960,109 3.) Assigned $827,574 $664,642 $664,642

II. Total Unrestricted Fund Balance

$20,041,913 $14,285,632 $4,791,755 1.) Reserve for Economic Uncertainty (3%) $4,565,887 $4,674,137 $4,784,478 2.) Available Reserves $15,476,026 $9,611,495 $7,277

III. Available Reserves (Unrestricted Fund)

13.17% 9.17% 3.00%

SLIDE 12

STRS/PERS COSTS THROUGH 2023-24

2013-14 $6.7 Million $525 per student 2017-18 $12.5 Million $1,072 per student 2023-24 $17.5 Million $1,605 per student 11.42% 11.44% 11.77% 11.85% 13.89% 15.53% 18.06% 20.80% 23.50% 24.60% 25.30% 25.80% 8.25% 8.25% 8.88% 10.73% 12.58% 14.43% 16.28% 18.13% 19.10% 19.10% 19.50% 19.50%

0% 5% 10% 15% 20% 25% 30%

2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24

PERS STRS

SLIDE 13

PER-ADA REVENUE VS. EXPENSES

Base Growth $ 116 Base Growth $ 251 Base Growth $188 Supplemental- Concentration Growth $98 Supplemental- Concentration Growth $139

Supplemental- Concentration Growth $35

STRS Increase $144 STRS Increase $111 STRS Increase $107 PERS Increase $33 PERS Increase $40 PERS Increase $53 Step and Column $86 Step and Column $91 Step and Column $95 Health and Welfare $53 Health and Welfare $ 52 Health and Welfare $ 84 Special Education Contribution $186 Special Education Contribution $102 Special Education Contribution $70 $0 $50 $100 $150 $200 $250 $300 $350 $400 $450 $500 $550 LCFF Growth Revenues LCFF Growth Revenues LCFF Growth Revenues Expenditures Expenditures 2018-19 2017-18 2019-20

SLIDE 14

CHALLENGES

Structural Deficit - Working Toward Resolution. There is no

such thing as a good budget without an adequate reserve

Projected slight positive General Fund Balance in 2020-21 with

additional planned expenditure reductions

Future Funding – Enrollment and limited to COLA
Special Education Program - Continual increases
Routing Restricted Maintenance Reserve - 3% (2020-21) $1.6

million increase

No Revenue source for STRS and PERS increases
Health and welfare ongoing increases

SLIDE 15

OTHER FUNDS – PROJECTED TOTALS 2018-19 (IN MILLIONS)

Fund 10 Special Education Pass- Through Fund 11 Adult Education Fund 12 Child Development

Fund 13

Cafeteria Fund 21 Building Fund 25 Capital Facilities Fund 40 Special Reserve for Capital Outlay Fund 67 Self Insurance

Beginning Fund Balance $0.01 $2.41 $0.27 $4.91 $15.19 $0.98 $1.49 $0.98 Revenue $60.10 $4.77 $2.73 $5.99 $12.15 $0.10 $0.00 $17.94 Expenditure $60.09 $3.87 $2.64 $7.55 $24.57 $0.40 $0.00 $17.94 Other Financing Sources/Uses $0.00 $0.00 ($0.10) $0.11 $0.00 $0.00 $0.70 $0.00 Ending Fund Balance $0.02 $3.31 $0.26 $3.46 $2.77 $0.68 $2.19 $0.98

SLIDE 16