Board of Trustees: Presented by: Ivery Hood , President Gabriel - PowerPoint PPT Presentation

Board of Trustees: Presented by: Ivery Hood , President Gabriel Moulaison J.D., CPA, Russ Barrington , Vice President Chief Business Officer Janet Jackson Forbes, Board Clerk Riitta DeAnda , Member June 9, 2020 The Board and staff thank our students for their artwork contributions to this publication. 2751 De Ronde Drive Reaching beyond the boundaries to build a community of learners. Fairfield, CA 94533

2020-2021 Proposed Budget  Significant changes at May Revision  Economic impacts of Covid-19  Reduced economic activity and record unemployment  State General Fund revenues declining sharply  Reduction in Prop. 98 Funding  LCFF  2.31% COLA effectively eliminated  Further 7.69% reduction  Cash deferrals  Elimination of many proposed increases  Governor’s May Budget provides some relief  Lower STRS/PERS contribution rates  Flexibility with restricted funds

2020-2021 Proposed Budget  Revenues  No projected increase to ADA LCFF $ 45,095,303  LCFF reduction Federal $ 4,649,700 State $ 4,241,842  -10% or -$4.15M compared to 19-20 Local $ 1,361,798  Cash deferrals Total Revenues $ 55,348,643  All other funding remains flat

2020-2021 Proposed Budget  Expenditures Salary & Benefits $ 49,843,306  Salary & Benefits Supplies $ 1,674,432  Step/Column increases 2.63% Contracts $ 5,242,789 Capital/Other $ 2,162,824  STRS 16.15% & PERS 20.7% Total Expenditures $ 58,923,351  Unrestricted Contributions  Special Education  Restricted Routine Maintenance

General Fund Budget Summary  The district is deficit spending by $2.75 million in the General Fund  Utilizing $900k in Restricted Fund Balance  One-time savings to Unrestricted General Fund  $1.444 million contribution from Fund 17  Projected to spend more than 1/3 of available unrestricted reserves

Debt Balance as of July 1, 2020  Series A - HVAC/LED Lights/Irrigation $ 3,301,980  Series B – Solar Project (CREB) $ 5,512,725  Series C – Refinancing of CFD #1 $ 6,765,157  COP 2016 – Refinancing of CFD #2 $ 24,222,772  COP 2016B – Scandia Modernization $ 6,754,572 $ 46,557,206  Payments for 2019/2020: $ 3,056,945  $940,467 Series A, Series B, COP 2016B – General Fund  $751,684 COP 2016 – Fund 49 (CFD #1)  $1,364,794 Series C – Fund 48 (CDF #2)

Multiyear Projections  Without reductions, the district will continue to deficit spend  Will not be able to meet required minimum 3% reserve in 2021-2022  Will run out of fund balance early 2022-2023  $1.444 million contribution from Fund 17 in 2021-2022  Fund 17 will be fully expended by end of 2021-2022

2020-2021 Proposed Budget  Conclusion  The district remains in Qualified Status  We are in the midst of an economic recession  Revenues are down, but costs are still increasing  August Revise  Revenues may be reduced further  Deficit spending  Will need to take action to reduce deficits  Identification of new and additional reductions  Dependency on Fund 17 (one-time use)  State’s adopted budget may not reduce K-12 funding  Senate and Assembly bills keep school funding levels

Thank You! Any Questions?