+ BUDGET ACT Manhattan Beach Unified School District 325 S. Peck - - PowerPoint PPT Presentation

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BUDGET ACT

Manhattan Beach Unified School District 325 S. Peck Avenue Manhattan Beach, CA 90266 Phone: (310) 318-7345, x5900

Budget Act – June 17, 2020

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MAY REVISION

Governor’s Proposals for K-12 Education

• LCFF Reduction
• 10% reduction after the application of the 2.31%

statutory cola

• 90% of 102.31%
• Net Impact – reduction from current levels by

7.61%

• Special Education base rate enhancement by 15%,

raising the level to $645/ADA

• CalPERS/CalSTRS rate buydown – shift long-term

investment to 2020-21 and 2021-22, creating a short- term 2% rate reduction

• Federal Funding allocation
• Cash Deferrals

Budget Act – June 17, 2020

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BUDGET ACT

Budget Act – June 17, 2020

Governor’s Proposal Legislature’s Proposal

• Applies COLA and then makes a

10% reduction

• 10% reduction reversed if Federal

assistance is provided by July 1

• $2.9 billion in Federal CARES Act

Funding allocated to Concentration Grant districts

• Special Education funding

augmentation of $645 million distributed based on ADA

• No ADA hold harmless
• No instructional minutes

flexibility

• Applies COLA with no reduction
• $4.3 billion in additional deferrals

triggered if Federal assistance is not provided by September 1

• $2.9 billion in Federal CARES Act

Funding allocated to all districts in proportion to their total LCFF funding

• Special Education funding

augmentation of $545 million distributed based existing AB 602 distribution model

• Provides an ADA hold harmless

and instructional minutes flexibility

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FLEXIBILITY MEASURES

Proposed Flexibility Measures

• Deferral exemptions
• Exclusion of on-behalf payments from RRMA
• Increase to inter-fund borrowing limits
• Use of property sale proceeds for one-time general fund

purposes

• Extension of TK teacher credential requirement
• Authorization of technology-based options to support

special education students Flexibility Measures Not Included

• Instructional day flexibility
• Reduction of RRMA requirements
• Flexibility for supplemental/concentration grant funds
• Flexibility to sweep ending balances from categorical

programs and restricted funds

Budget Act – June 17, 2020

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DEFERRALS

Budget Act – June 17, 2020

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2020-21 BUDGET PROJECTION

2019-20 at second interim 2020-21 at second interim 2019-20 prelim estimated actuals 2020-21 Governor 2020-21 Legislature Beg Balance

$8,253,454 $4,254,864 $8,253,454 $6,278,278 $6,278,278

Revenues

$85,983,758 $83,963,368 $84,608,491 $79,536,568 $82,724,721

Expenses

$89,982,348 $85,617,834 $86,583,667 $84,525,567 $84,525,567

Net Inc/(Dec)

($3,998,590) ($1,654,446) ($1,975,176) ($4,988,999) ($1,800,846)

Ending Bal

$4,254,864 $2,600,418 $6,278,278 $1,289,279 $4,477,432

Undes Ending Bal

$1,147,980 $1,883 $2,745,012 ($1,276,458) $1,911,665

Projections based on Board approved reductions.

Budget Act – June 17, 2020

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POTENTIAL REDUCTIONS – COVID-19 RELATED

Budget Act – June 17, 2020

Impacted programs:

• Classroom Support
• Extended Day Program
• Food and Nutrition Services
• Physical Education/Athletics
• Playground Support
• School Office Support

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POTENTIAL REDUCTIONS – BUDGET REDUCTIONS

Budget Act – June 17, 2020

With an August Layoff Window Additional Potential Reductions

• Assistant Principal(s)
• Additional Counselors
• Additional Class Size Increases
• Additional Elementary Music
• Additional Elementary PE
• Additional Reading Specialists
• Additional Zero Period

Reductions (Estimated Savings - $1.7 Million)

• Additional Library Resource

Specialist(s)

• PE Assistant(s)
• School Site Clerical
• District Office Clerical
• Additional Classified Reductions

(Estimated Savings - $700,000)

Potential total reduction needed: $1.3 Million

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NEXT STEPS

• Identify areas for reduction to build into the budget
• Adopt preliminary budget
• Initiate staffing reductions
• Monitor state budget development process
• Explore possible parcel tax measure
• Present 45-day Revision
• Present Subsequent Revision, if needed
• Begin planning for 2021-22 – additional reductions

and/or revenue enhancements will be needed

Budget Act – June 17, 2020

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BUDGET ACT

Manhattan Beach Unified School District 325 S. Peck Avenue Manhattan Beach, CA 90266 Phone: (310) 318-7345, x5900

Budget Act – June 17, 2020