Budget 2020-2021 Board Meeting Monday, June 29, 2020 1 Mission - PowerPoint PPT Presentation

Budget 2020-2021 Board Meeting Monday, June 29, 2020 1

Mission Statement Banning Unified School District is a diverse community that collaborates to develop responsible, respectful, prepared students to achieve their full potential. Budget 2020-2021 2

Presentation Objective Our objective is to increase understanding about Banning Unified School District’s current financial state and to propose next steps and proven strategies that will improve and maintain fiscal viability in the out years for the district. Budget 2020-2021 3

Fiscal Update The Historical, Current, and Future State of School Finance in California Eric Hall President of Eric Hall & Associates (EH&A) Budget 2020-2021 4

Revenue Assumptions Banning USD Enrollment and Average Daily Attendance (ADA) 4,700 95.50% 4,600 95.00% 4,500 94.50% STUDENTS 4,400 94.00% 4,300 93.50% 4,200 93.00% 4,100 92.50% 4,000 92.00% 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 Enrollment 4,469 4,530 4,514 4,592 4,562 4,562 4,562 4,562 P-2 ADA 4,252 4,279 4,264 4,273 4,264 4,264 4,264 4,264 Ratio District ADA to Enrollment 95.14% 94.46% 94.46% 93.06% 93.47% 93.47% 93.47% 93.47% Note: (1) There is a difference between enrollment and average daily attendance. Enrollment is the number of students who are slated to attend; average daily attendance or ADA is the state’s calculation that determines how much they will give districts based on the number of students who actually attend daily. Banning’s ADA is low; therefore, the district loses millions of dollars. (2) Local Control Funding Formula (LCFF) based on the Governor’s May revision to the state budget reduced funding by 7.92%. This equated to $3.8M for BUSD’s revenue. Federal revenues will include $1.7M in Cares Act funding Budget 2020-2021 5

Revenue Assumptions (continued) SCHOOL SERVICES OF CALIFORNIA (SSC) School District Financial Projection Dartboard Governor's May Revision for 2020–21 (p. 8) Table 2. LCFF GRADE SPAN FACTORS FOR 2020–21 Entitlement Factors Per ADA* K – 3 4 – 6 7 – 8 9 – 12 2019–20 Base Grants $7,702 $7,818 $8,050 $9,329 Statutory COLA at 2.31% $178 $181 $186 $215 2020–21 Base Grants Before Deficit $7,880 $7,999 $8,236 $9,544 Deficit Factor at -10.00% -$788 -$800 -$824 -$954 2020–21 Base Grants After Deficit $7,092 $7,199 $7,412 $8,590 Grade Span Adjustment Factors 10.4% 2.6% - - - - Grade Span Adjustment Amounts $738 $223 2020–21 Adjusted Base Grants 1 $7,830 $7,199 $7,412 $8,813 Notes: Other state revenues include updates to lottery and mandated costs. Other local revenues are updated based upon prior year. Updates and assumptions are all based upon guidance from the Riverside County Office of Education (RCOE). Table 3. LCFF PLANNING FACTORS Factor 2019 – 20 2020 – 21 2021 – 22 2022 – 23 2023 – 24 Department of Finance Statutory COLA 3.26% 2.31% 2.48% 3.26% N/A Effective Deficit Factor 2 -7.92% -7.92% -7.92% -7.92% - SSC Recommended Funded COLA 3 0.00% 0.00% 0.00% 0.00% - Budget 2020-2021 6

May Revise FY 2020 ‐ 21 FY 2021 ‐ 22 FY 2022 ‐ 23 Current (Base Year) First Projected Year Second Projected Year DESCRIPTION OBJECT CODE Unrestricted Restricted Combined Unrestricted Restricted Combined Unrestricted Restricted Combined A Beginning Balance as of July 1 $6,582,616 $1,326,071 $7,908,687 $1,216,174 $2,892,284 $4,108,458 $1,796,769 $862,649 $2,659,419 B 1 Revenues 8010‐8099 46,106,423 0 46,106,423 46,225,425 0 46,225,425 46,225,425 0 46,225,425 2 LCFF Sources Federal Revenues 8100‐8299 479,180 5,532,521 6,011,701 479,180 3,782,415 4,261,595 479,180 3,782,415 4,261,595 3 Other State Revenues 8300‐8599 841,095 3,380,717 4,221,812 841,136 3,380,732 4,221,868 841,136 3,380,732 4,221,868 4 Other Local Revenues 8600‐8799 141,686 2,933,351 3,075,037 141,686 2,933,351 3,075,037 141,686 2,933,351 3,075,037 5 Total Revenues 47,568,384 11,846,589 59,414,973 47,687,427 10,096,498 57,783,925 47,687,427 10,096,498 57,783,925 Beginning Balance & Revenue (A+B5) $54,151,000 $13,172,660 $67,323,660 $48,903,601 $12,988,782 $61,892,383 $49,484,197 $10,959,147 $60,443,344 C Expenditures Certificated Salaries Classified Salaries Employee Benefits Books & Supplies 1 Services, Other Operating Exp Capital Outlay 1000‐1999 20,037,361 3,993,107 24,030,468 20,337,921 4,053,004 24,390,925 20,642,990 4,113,799 24,756,789 Other Outgo ‐ exclude Direct Sup. Debt Service 2 2000‐2999 7,415,446 2,174,258 9,589,704 7,526,678 2,317,952 9,844,630 7,639,578 2,241,641 9,881,219 Direct Support/Indirect Costs 3 CSR Reduction (for info only) 3000‐3999 11,739,060 4,902,299 16,641,359 12,030,457 4,990,711 17,021,168 12,856,363 5,184,952 18,041,315 4 4000‐4999 1,372,455 2,113,660 3,486,115 1,396,198 3,900,332 5,296,531 1,425,798 2,232,913 3,658,711 5 5000‐5999 5,767,991 2,696,357 8,464,348 5,867,777 2,905,409 8,773,186 5,992,174 2,804,599 8,796,773 6 6000‐6999 120,312 53,430 173,742 122,393 54,354 176,748 124,988 55,507 180,495 7 7100‐7299 0 18,000 18,000 0 18,311 18,311 0 18,700 18,700 8 7400‐7499 781,466 30,000 811,466 781,466 30,000 811,466 781,466 30,000 811,466 9 7300‐7399 (768,850) 768,850 0 (782,151) 782,151 0 (798,733) 798,733 0 10 1000‐7999 0 0 11 Projected Budget Reduction 0 0 0 (7,100,000) 0 (7,100,000) (8,350,000) 0 (8,350,000) 12 Total Expenditures: $46,465,241 $16,749,961 $63,215,202 $40,180,740 $19,052,224 $59,232,964 $40,314,625 $17,480,843 $57,795,467 D Interfund Xfers/Other Sources Transfers In Transfers Out Sources 1 Uses 8910‐8929 0 0 0 0 0 0 0 0 0 Contributions 2 7610‐7629 0 0 0 0 0 0 0 0 0 3 8930‐8979 0 0 0 0 0 0 0 0 0 4 7630‐7699 0 0 0 0 0 0 0 0 0 5 8980‐8999 (6,469,585) 6,469,585 0 (6,926,092) 6,926,092 0 (7,378,781) 7,378,781 0 E Net Increase (Decrease) In Fund Balance ($5,366,442) $1,566,213 ($3,800,229) $580,595 ($2,029,635) ($1,449,039) ($5,978) ($5,564) ($11,542) F Ending Balance $1,216,174 $2,892,284 $4,108,458 $1,796,769 $862,649 $2,659,419 $1,790,791 $857,085 $2,647,876 1 Revolving Cash 9711 10,000 0 10,000 10,000 0 10,000 10,000 0 10,000 2 Stores 97xx 8,100 0 8,100 8,100 0 8,100 8,100 0 8,100 3 Restricted 9740 0 2,892,284 2,892,284 0 862,649 862,649 0 857,085 857,085 4 Stabilization Arrangements 9750 0 0 0 0 0 0 0 0 0 5 Other Commitments 9760 0 0 0 0 0 0 0 0 0 6 Assigned ‐ Other Assignments 9780 0 0 0 0 0 0 0 0 0 7 Reserve for Economic Uncertainties 9789 1,198,074 0 1,198,074 1,776,989 0 1,776,989 1,733,864 0 1,733,864 8 Unassigned/unappropriated Amount 9790 0 0 0 1,680 0 1,680 38,827 0 38,827 8 Total Budget Cuts: $0 $0 $0 $0 $0 $0 $0 G Components of Ending Fund Balance Total $1,216,174 $2,892,284 $4,108,458 $1,796,769 $862,649 $2,659,419 $1,790,791 $857,085 $2,647,876 3% Calculated Reserve, or $50,000 (greater of the two) Total Reserves 3% Calculated Difference* FY 2020‐21 Bud $1,198,074 $1,896,456 ($698,382) FY 2021‐22 Proj $1,776,989 $1,776,989 $0 3.00% FY 2022‐23 Proj $1,733,864 $1,733,864 $0 Reserve Percentage Level for this district: FY 2020‐21 ADA Input Sheet (District): 4,264.27 FY 2021‐22 Unappropiated Amount is: FY 2022‐23 Unappropiated Amount is: Positive Positive Budget 2020-2021 7