[PPT] - + BUDGET WORKSHOP Manhatt attan an Beach Unified d School ol PowerPoint Presentation

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BUDGET WORKSHOP

Manhatt attan an Beach Unified d School

l Distri

trict 325 S. Peck k Avenu nue Manhatt attan an Beach, , CA 902 0266 Phone: ne: (310) 0) 318-7345, , x5900 00

Budget Workshop - January 15, 2020

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BUDGET WORKSHOP FORMAT

Budget Workshop – January 15, 2020

Budget Report
Governor’s Budget Update
Possible Reductions
Timeline
Open Workshop Discussion

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GUIDING QUESTIONS

Questions/comments about the

budget

Ongoing revenue generating ideas
Program reductions that would

most significantly alter the MBUSD experience

What have we missed?

Budget Workshop – January 15, 2020

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ENROLLMENT

K-5 6-8 9-12 Total 2014-15 2818 1528 2544 6890 2015-16 2760 1555 2459 6774 2016-17 2754 1473 2547 6776 2017-18 2636 1438 2573 6647 2018-19 2562 1440 2581 6583 2019-20* 2514 1433 2566 6513

*preliminary census day enrollment count

Budget Workshop - January 15, 2020

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SCHOOL FUNDING - LCFF

Grade Span 2019-20 Base Grant Augmentation Grant Total Base Grant TK-3 $7,702 $801 $8,503 4-6 $7,818 $0 $7,818 7-8 $8,050 $0 $8,050 9-12 $9,329 $243 $9,572 Grade Span Supplemental Grant

20% of Base Grant for Every High Needs Student

Concentration Grant

50% of Base Grant for Every High Needs Student over 55% of District Enrollment

TK-3 $1,701 $4,252 4-6 $1,564 $3,909 7-8 $1,610 $4,025 9-12 $1,914 $4,786

Budget Workshop - January 15, 2020

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SCHOOL FUNDING - LCFF

District Type Basic Aid UPP Lennox Elementary N 96.28% Hawthorne Elementary N 89.40% CentinelaValley High School N 85.63% Inglewood Unified N 84.92% Lawndale Elementary N 84.80% Wiseburn Unified N 46.01% Torrance Unified Unified N 38.18% Culver City Unified N 37.23% Santa Monica-Malibu Unified N 28.60% South Pasadena Unified N 19.74% Redondo Beach Unified N 19.10% El Segundo Unified N 16.00% Beverly Hills Unified Y 15.60% San Marino Unified N 15.26% Palos Verdes Peninsula Unified N 11.95% La Canada Unified N 8.00% Manhattan Beach Unified N 5.32% Hermosa Beach City Elementary N 4.89%

Budget Workshop - January 15, 2020

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+ MBUSD’S BUDGET

Local Funding

7 $0.0 $1.0 $2.0 $3.0 $4.0 $5.0 $6.0 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19

Grants to the District

(in millions)

Budget Workshop - January 15, 2020

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+ MBUSD’S BUDGET

Local Funding

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◼ $225 per parcel ◼ 12,879 taxable parcels ◼ 13.9% exemption rate ◼ $2.49 million in local

revenue from 2018-19 through 2023-24

◼ 27 teaching positions in

2018-19; 23.5 positions in 2019-20

Budget Workshop - January 15, 2020

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+ MBUSD’S BUDGET

Local Funding – Other Key Partners

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In 2018-19

◼ The City of Manhattan Beach contributed $788,455.50

through the Shared Use Agreement for the use of MBUSD fields and facilities

◼ PTA’s/PTSA’s contributed $707,803.29 to support site-specific

projects

◼ MBX contributed $92,250.41 to support athletic and extra

curricular activities, plus incredible School Connected Organization support

◼ Chevron, Skechers, and other local partners generously

support the schools through MBEF and other grant programs

Budget Workshop - January 15, 2020

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PENSIONS

CalPERS Actuals/ Current Projection CalSTRS Actuals/ Legislative Limit 2010-11 10.707% 8.250% 2011-12 10.923% 8.250% 2012-13 11.417% 8.250% 2013-14 11.442% 8.250% 2014-15 11.771% 8.880% 2015-16 11.847% 10.730% 2016-17 13.888% 12.580% 2017-18 15.532% 14.430% 2018-19 18.062% 16.280% 2019-20 19.721% 17.100% 2020-21 22.800% 18.400% 2021-22 24.900% 18.100% 2022-23 25.900% 18.100% 2023-24 26.600%

can increase by up to 1% per year to a maximum employer contribution rate of 20.25%; unfunded actuarial obligation to be eliminated by 2046

2024-25 27.000% 2025-26 26.800% 2026-27 26.700%

Budget Workshop - January 15, 2020

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HEALTH CARE

Health Benefits Costs 2016-17 $5,201,486 2017-18 $6,109,605 2018-19 $6,999,664 2019-20* $7,473,308

*projected at first interim.

Budget Workshop - January 15, 2020

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SPECIAL EDUCATION

Revenue Expense 2016-17 $4,813,147 $17,915,974 2017-18 $4,960,701 $19,253,987 2018-19 $6,328,070 $22,601,161 2019-20* $6,425,146 $23,954,604

*projected at first interim.

Budget Workshop - January 15, 2020

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REVENUE

LCFF Revenue $56,553,075 66% Federal Revenue $2,140,522 2% Other State Revenue $9,952,111 12% Local Revenue $16,932,523 20%

Budget Workshop - January 15, 2020

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EXPENSE

Certificated Salary $36,740,469 41% Classified Salary $15,031,654 17% Benefits $22,641,552 25% Supplies $2,777,237 3% Services $12,085,482 14% Capital Outlay $20,000 0% Other Outgo/ Indirect $399,086 0%

Budget Workshop - January 15, 2020

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LCFF GROWTH / COST INCREASES

Budget Workshop - January 15, 2020

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MULTI-YEAR PROJECTION

2018-19 2019-20 2020-21 2021-22 Beg Balance $11,149,419 $8,324,150 $4,206,901 ($1,282,700) Revenues $85,707,344 $85,578,231 $86,345,472 $85,831,491 Expenses $88,558,943 $89,695,480 $91,835,072 $93,557,396 Net Inc/(Dec) ($2,851,599) ($4,117,249) ($5,489,600) ($7,725,902) Ending Bal $8,324,150 $4,206,901 ($1,282,700) ($9,008,602) Undesignated Ending Bal. $1,276,290 $1,089,412 ($4,067,752) ($11,845,323)

Budget Workshop - January 15, 2020

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EXPENDITURE REDUCTIONS

Fiscal Year Amount 2020-21 $3,949,274 2021-22 $3,601,474

Note: additional reductions would be needed in subsequent years; first interim estimates place additional 2022-23 reductions at $1.5 million

Budget Workshop - January 15, 2020

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MULTI-YEAR PROJECTION

2018-19 2019-20 2020-21 2021-22 Beg Balance $11,149,419 $8,324,150 $4,206,901 $2,685,629 Revenues $85,707,344 $85,578,231 $86,345,472 $85,831,491 Expenses $88,558,943 $89,695,480 $87,866,744 $85,887,511 Net Inc/(Dec) ($2,851,599) ($4,117,249) ($1,521,272) ($56,020) Ending Bal $8,324,150 $4,206,901 $2,685,629 $2,629,609 Undesignated Ending Bal. $1,276,290 $1,089,412 $19,626 $22,984

Note: projections based on anticipated reductions in 2020-21 and 2021-22

Budget Workshop - January 15, 2020

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MULTI-YEAR PROJECTION ENDING FUND BALANCE

$- $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 $8,000,000 $9,000,000 2018-19 2019-20 2020-21 2021-22 3-Year Escrow Restricted REU (5%) REU (3%) Undesignated Amount

Budget Workshop - January 15, 2020

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EXPENDITURE REDUCTIONS

Previously budgeted reductions

The district’s professional development budget was reduced

by nearly $260,000

The district’s instructional materials budget was reduced by

$400,000

The district’s technology budget was reduced by just over

$400,000 (reducing the technology replacement budget by

ver $315,000 and ongoing services by nearly $100,000)
The district’s legal services budget was reduced by almost

$135,000

The district’s overtime budget was reduced by nearly $120,000
The district’s budgets for other departments was reduced by

approximately $75,000

Budget Workshop - January 15, 2020

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COLA

First Interim Current Projection* Projected CPI 2019-20 3.26% 3.26% 3.33% 2020-21 3.00% 2.29% 3.14% 2021-22 2.80% 2.71% 3.02% 2022-23 3.16% 2.82% 3.13%

Budget Workshop - January 15, 2020

*Based on the Governor’s January Budget Proposal

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LCFF

First Interim Current Projection* Difference 2019-20 $56,553,075 $56,553,075 2020-21 $57,852,074 $57,472,365 ($379,709) 2021-22 $57,330,081 $57,282,277 ($47,804) 2022-23 $57,647,685 $57,460,408 ($187,277)

Budget Workshop - January 15, 2020

*Based on the Governor’s January Budget Proposal

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SPECIAL EDUCATION

Budget Workshop - January 15, 2020

For 2019-20, the state invested an additional $152.6 million

in Special Education, which brought all SELPAs to the statewide target rate for base special education funding, approximately $557 per ADA

For 2020-21, the Governor proposes increasing the amount
f General Fund revenue put towards Special education by

15%.

Early estimates are that this will bring funding to the 90th

percentile and will bring the per-ADA funding rate to somewhere between $640 and $680

This will likely bring additional revenue to MBUSD, but it is

too early to know what the estimated budget will be.

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OTHER PROPOSALS

Budget Workshop - January 15, 2020

Funding for students with disabilities age 3-5 will be less

($250 million statewide, as compared with $493 million in 2019-20) and may be more restricted

Other proposals create prescriptive, almost “categorical”

funding streams for very specific purposes

The proposal focuses on maintaining 2019-20s commitment

to pension relief, with no additional investment

The proposal does not include any new funds for education
utside of Proposition 98
Legislators are focused on pension relief, mental health,

special education reform, low performing subgroups, and LCFF targets.

Education related ballot measures will include a new school

facilities bond and the Schools and Communities First initiative.

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ADOPTED-UNAUDITED “SWING”

Adopted Budget Unaudited Actuals Total Change 2011-12 ($2,176,236) ($1,078,135) $1,098,101 2012-13 ($5,682,446.00) ($2,956,204.00) $2,726,242 2013-14 ($2,977,006.00) $1,127,733.00 $4,104,739 2014-15 ($3,211,807.00) ($1,402,405.95) $1,809,401 2015-16 ($683,646.00) $79,099.47 $762,745 2016-17 ($3,339,507) ($373,275) $2,966,232 2017-18 ($3,303,012) ($2,300,560) $1,002,452 2018-19 ($145,480) ($2,851,599) ($1,468,980) 2019-20 ($3,771,859) ($4,117,249) ($345,390)*

*year-to-date projected “swing” at first interim.

Budget Workshop - January 15, 2020

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EXPENDITURE REDUCTIONS

Fiscal Year Amount 2020-21 $3,949,274 2021-22 $3,601,474

Note: additional reductions would be needed in subsequent years; first interim estimates place additional 2022-23 reductions at $1.5 million

Budget Workshop - January 15, 2020

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POSSIBLE REDUCTIONS

Total $6,176,500.00 Reduce staffing for enrollment K-12 $ 1,100,000.00 TOSA: Literacy/Tech/Math $ 339,000.00 Assistant Principals (3) $ 400,000.00 Program Specialist $ 45,000.00 Libraries $ 463,000.00 Physical Education $ 480,000.00 MakerSpace $ 150,000.00 Elementary Music $ 495,500.00 Elementary Arts $ 100,000.00 Reading Specialists $ 465,000.00 Science Specialists $ 309,000.00 Zero Period at MBMS and MCHS $ 600,000.00 Class Size Increases in Grade 6-12 $ 600,000.00 Counseling $ 600,000.00

Budget Workshop - January 15, 2020

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NEXT STEPS

February 5 and 26

Board Meetings - discuss budget priorities and areas for reduction; determine a budgetary reduction target

March 4 (tentative)

Board Meeting - determine areas for reduction

March 15

Legislative deadline to provide preliminary certificated layoff notices; note that classified reductions generally require a 60-day notice timeline

May 6

Board Meeting – Board action to rescind/finalize layoffs

May 15

Legislative deadline to provide final certificated layoff notices

Ongoing

Ongoing funding opportunities to reduce or rescind layoffs

Budget Workshop - January 15, 2020

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GUIDING QUESTIONS

Questions/comments about the

budget

Ongoing revenue generating ideas
Program reductions that would

most significantly alter the MBUSD experience

What have we missed?

MBUSD Budget Workshop – January 15, 2020

SLIDE 30

+

BUDGET WORKSHOP

Manhatt attan an Beach Unified d School

l Distri

trict 325 S. Peck k Avenu nue Manhatt attan an Beach, , CA 902 0266 Phone: ne: (310) 0) 318-7345, , x5900 00

Budget Workshop - January 15, 2020