FREMONT UNIFIED SCHOOL DISTRICT Educate Challenge Inspire BUDGET - - PowerPoint PPT Presentation

FREMONT UNIFIED SCHOOL DISTRICT

Educate • Challenge • Inspire

BUDGET UPDATE

DIVISION OF BUSINESS SERVICES MARCH 8, 2017 – BOARD OF EDUCATION MEETING

Review of First Interim Budget Report 2016-17

Actual 2015-16 Revised 2016-17 Projected 2017-18 Projected 2018-19 Projected 2019-20 Revenues $337.4 $339.6 $346.2 $356.4 $378.8 Less: Expenditures 321.6 351.9 366.5 366.2 380.3 Revenue Enhancement/ Expenditure Reduction (16.8) (11.2) (3.7) =Surplus/(Deficit) $15.8 ($12.3) ($3.5) $1.4 $2.2 Add: Beginning Fund Balance 33.1 48.9 36.5 33.0 34.4 =Ending Fund Balance $48.9 $36.5 $33.0 $34.4 $36.6 Less: Designation 35.3 29.3 18.9 20.1 21.3 =Reserve ($) $13.6 $7.2 $14.1 $14.3 $15.3 =Reserve (%) 4.22% 2.05% 4.03% 4.03% 4.05%

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In order to maintain a 4.0% reserve, FUSD needs to reduce its expenditures and/or enhance it revenues by $16.8 million

Review of State Budget Proposal for 2017-18

$345 $267 $99 $290 $353 $76 $256 $299

$0 $50 $100 $150 $200 $250 $300 $350 $400

2016-17 2017-18 2018-19 2019-20

New Dollars Per Pupil From LCFF

2016-17 Budget Act 2017-18 Budget Proposal

$6.5 million reduction $5.4 million increase

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Pension Contribution

(in millions)

STRS PERS

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2013 2014 2015 2016 2017 2018 2019 2020 8.25% 8.88% 10.73% 12.58% 14.43% 16.28% 18.13% 19.10%

• Incr. %

0.63% 1.85% 1.85% 1.85% 1.85% 1.85% 0.97%

• Incr. $

$1.04 $4.54 $8.33 $12.06 $15.91 $19.87 $22.15 2013 2014 2015 2016 2017 2018 2019 2020 11.44% 11.77% 11.85% 13.89% 15.80% 17.70% 19.70% 21.10%

• Incr. %

0.33% 0.08% 2.04% 1.91% 1.90% 2.00% 1.40%

• Incr. $

$0.17 $0.24 $1.53 $2.77 $4.04 $5.42 $6.43

32-year average = $23.7 million per year 32-year average = $7.0 million per year

Changes in Revenue and Expenditures

Description 2016-17 2017-18 2018-19 2019-20 One-time discretionary fund $1,661,000 $0 $0 LCFF 2016-17 245,000 245,000 245,000 245,000 LCFF 2017-18 (6,546,000) (6,546,000) (6,546,000) LCFF 2018-19 5,379,000 5,379,000 LCFF 2019-20 297,000 Net Change in Revenues $245,000 ($4,640,000) ($922,000) ($625,000)

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Description 2016-17 2017-18 2018-19 2019-20 2% Salary adjustment for SEIU $540,000 $551,000 $558,000 $565,000 2% Salary adjustment for CSEA 782,000 795,000 805,000 816,000 Net Change in Expenditures $1,322,000 $1,346,000 $1,363,000 $1,381,000

Revised Multi-Year Budget Projection (including State Budget Proposal)

Actual 2015-16 Revised 2016-17 Projected 2017-18 Projected 2018-19 Projected 2019-20 Revenues $337.4 $339.6 $346.2 $356.4 $378.8 Add: Changes in Revenues 0.0 0.2 (4.6) (0.9) (0.6) Total Revenues $337.4 $339.8 $341.6 $355.5 $378.2 Expenditures 321.6 351.9 366.5 366.2 380.3 Add: Changes in Expenditures 0.00 1.3 1.3 1.4 1.4 Less: Expenditure Reductions 0.0 0.0 (23.3) (13.6) (5.6) Total Expenditures $321.6 $353.2 $344.5 $353.9 $376.1 =Surplus/(Deficit) $15.8 ($13.4) ($3.0) $1.5 $2.1 Add: Beginning Fund Balance 33.1 48.9 35.5 32.5 34.0 =Ending Fund Balance $48.9 $35.5 $32.5 $34.0 $36.1 Less: Designation 35.3 27.7 18.7 19.8 21.0 =Reserve ($) $13.6 $7.9 $13.8 $14.2 $15.1 =Reserve (%) 4.22% 2.24% 4.00% 4.00% 4.00%

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In order to maintain a 4.0% reserve, FUSD needs to reduce its expenditures by $23.3 million

Proposed Expenditure Reductions

Description 2017-18 2018-19 2019-20 Increase class sizes at TK-2 to 25 students $2,141,000 $2,677,000 $2,855,000 Postpone technology device refresh 500,000 500,000 500,000 Reduce contribution to RRM 600,000 600,000 600,000 Savings from reorganization in the Instructional Services Division 268,000 268,000 268,000 Eliminate CTE allocation to school sites 100,000 100,000 100,000 Postpone textbook adoption 2,400,000 1,500,000 Reduce 1.0 FTE Staff Secretary 3 in IT Dept. 81,000 81,000 81,000 Reduce 1.0 FTE Accounting Technician 2 in Budget Dept. 95,000 95,000 95,000 Reduce 1.0 FTE Personnel Assistant 1 in HR Dept. 68,000 68,000 68,000 Reduce 2.0 FTE Elementary Assistant Principals 313,000 313,000 313,000

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Proposed Expenditure Reductions

Description 2017-18 2018-19 2019-20 Reduce 0.5 FTE Administrative Secretary in the Superintendent Office $48,000 $48,000 $48,000 Eliminate Affordable Care Act (ACA) penalty 500,000 500,000 500,000 Use EEBG to fund Teacher Induction Program and PAR for additional year 750,000 Reduce 1.0 FTE Teacher on Special Assignment (GATE Service Specialist) in the Curriculum and Instruction Department 71,000 71,000 71,000 Total Recommended Expenditure Reductions $7,935,000 $5,321,000 $6,999,000

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Other Recommended Budget Solutions

Description 2017-18 2018-19 2019-20 One-time discretionary fund (prior year balance) $9,587,000 $0 $0 One-time discretionary fund (current year) 1,661,000 Career Technical Education (prior year balance) 2,167,000 Career Technical Education (current year) 908,000 983,000 1,031,000 Adult Education fund balance 700,000 700,000 Total Other Recommended Budget Solutions $15,023,000 $1,683,000 $1,031,000

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Description 2017-18 2018-19 2019-20 Expenditure reductions $7,935,000 $5,321,000 $6,999,000 Other budget solutions 15,023,000 1,683,000 1,031,000 Total Expenditure Reductions and Other Budget Solutions $22,958,000 $7,004,000 $8,030,000

Summary

Revised Multi-Year Budget Projection (including State Budget Proposal)

Actual 2015-16 Revised 2016-17 Projected 2017-18 Projected 2018-19 Projected 2019-20 Revenues $337.4 $339.6 $346.2 $356.4 $378.8 Add: Changes in Revenues 0.0 0.2 (3.9) (0.2) (0.6) Total Revenues $337.4 $339.8 $342.2 $356.1 $378.2 Expenditures 321.6 351.9 366.5 366.2 380.3 Add: Changes in Expenditures 0.0 1.3 1.3 1.4 1.4 Less: Expenditure Reductions 0.0 (1.0) (7.9) (5.3) (7.0) Total Expenditures $321.6 $352.2 $359.9 $362.2 $374.7 =Surplus/(Deficit) $15.8 ($12.4) ($17.7) ($6.1) $3.5 Add: Beginning Fund Balance 33.1 48.9 36.5 18.8 12.7 =Ending Fund Balance $48.9 $36.5 $18.8 $12.7 $16.2 Less: Designation 35.3 27.7 4.4 4.5 4.7 =Reserve ($) $13.6 $8.9 $14.4 $8.2 $11.5 =Reserve (%) 4.22% 2.53% 4.01% 2.27% 3.08%

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By reducing expenditures by $7.9 million, not designating one-time discretionary fund, and designating 40% of the CTE fund balances, FUSD is projecting a reserve of 4.01% for 2017-18 and 2.27% and 3.08% in the succeeding years, respectively.

Other Budget Items for Consideration

 Transportation - fee for bus service for roundtrip transportation service for each child per year is $654, while the cost of providing the service is ~$1,900  After School Education and Safety Program (ASES) – City

• f Fremont as the fiscal agent

 Class Ratio at Secondary Schools – currently at 27.0  Cafeteria Fund (Child Nutrition Services) – budget deficit due to low student participation and high labor cost  List of vacant positions

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