FY 2019-2020 First Interim Report December 17, 2019 1 First - - PowerPoint PPT Presentation

FY 2019-2020 First Interim Report

December 17, 2019

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First Interim Financial Report

• Education Code Section 42130 requires Districts to submit two financial interim

reports to the County Office of Education each fiscal year:

• 1st Interim: Financial transactions from July 1 to October 31
• The Interim Financial Report is designed to:
• Identify the changes to the budget, since adoption in June.

The overall change to revenues, expenditures and ending fund balance and reserves.

• Provide an in-depth multi-year analysis, using current projection factors, to

state the district’s ability to meet its financial obligations for the current and two subsequent fiscal years.

• Certify, based on current information, the district will be able to meet its

fiscal obligations for the current and two subsequent years.

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Key Assumptions

• In FY 2019-2020 the district experienced a decline in enrollment of

831 students and declining enrollment will continue in subsequent years

• FY 2019-2020 COLA is 3.26%
• One-time revenue for Preschoolers with disabilities totaled $1,567,740
• Textbook adoption expenditures for Math and Next Generation

Science Standard are budgeted at $6M

• Expenditures associated with Special Education will continue to increase

and will drive up contributions to restricted programs

• Expenditures will continue to increase due to rate increases (STRS, PERS,

HW, etc.) as well as CPI

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Enrollment and ADA

TPAA expanded into grades TK-5. The decline in enrollment from 2018-2019 totaled 831 students or 87 more than projected. In addition, there was an audit adjustment to the ADA as part of the FY 2018-2019 audit.

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A B (A-B) 1st Interim Adopted Budget Change Enrollment 18,254 18,341

• 87

ADA 17,305 17,481

• 175

Unrestricted Revenues

Additional state revenue for Preschoolers with Disabilities and an adjustment to expected interest revenue resulted in an increase of $1.2 million in total revenues. A B (A-B) 1st Interim Adopted Budget Change

LCFF Sources 194,259,624 195,209,604 (949,980) Federal Revenue

• Other State Revenue

4,915,425 3,319,447 1,595,978 Other Local Revenue 2,574,965 1,980,808 594,157 Total Revenues 201,750,014 200,509,859 1,240,155

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Unrestricted Expenditures

Expenditures were adjusted to align with actual expenses in FY 2018- 2019 resulting in decreases in several categories. Some expenditures shifted from unrestricted to restricted. The increase in Capital Outlay is due to the Audio Visual Project extending into FY 2019-2020.

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A B (A-B) 1st Interim Adopted Budget Change

Certificated Salaries 56,127,608 58,078,750 (1,951,142) Classified Salaries 16,556,698 16,582,275 (25,577) Benefits 35,170,991 36,090,013 (919,022) Books and Supplies 9,661,214 10,013,909 (352,695) Services 17,855,652 17,644,905 210,747

and Other Operating Expenditures Capital Outlay

2,457,619

286,422 2,171,197

Other Outgoing (2,555,538) (1,772,599) (782,939) Total Expenditures 135,274,244 136,923,675 (1,649,431)

Contributions to Restricted Resources

Increase in LCAP is due to an increase in Unduplicated students. RRMA increase is due to budgeting restricted carryover from FY 2018-2019. A Technology Update Resource was added for IT updates for infrastructure and hardware updates.

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A B (A-B) 1st Interim Adopted Budget Change

LCAP (Supplemental and Concentration Grants) 49,915,681 49,374,458 541,223 RRMA 8,317,457 7,736,182 581,275 Special Education 23,190,325 22,422,368 767,957 Tech Updates & Resource 9500 (Saturday School Incentive) 532,671 33,471 499,200 Total 81,956,134 79,566,479 2,389,655

FY 2019-20 General Fund Revenues

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LCFF Sources 80% Federal Revenue 9% Other State Revenue 4% Other Local Revenue 7%

Revenue

LCFF Sources Federal Revenue Other State Revenue Other Local Revenue

A B (A-B) 1st Interim Adopted Budget Change

LCFF Sources 194,259,624 195,209,604 (949,980) Federal Revenue 25,851,062 21,233,309 4,617,753 Other State Revenue 11,121,870 9,342,412 1,779,458 Other Local Revenue 18,098,766 17,078,042 1,020,724 Total Revenues 249,331,323 242,863,367 6,467,955

FY 2019-20 General Fund Expenditures

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Certificated Salaries 36% Classified Salaries 14% Benefits 24% Books and Supplies 9% Services 15% Capital Outlay 2% Other Outgoing Excl Transfers of Indirect Costs 0% Certificated Salaries Classified Salaries Benefits Books and Supplies Services Capital Outlay Other Outgoing Excl Transfers of Indirect Costs

A B (A-B) 1st Interim Adopted Budget Change

Certificated Salaries 100,551,321 99,804,750 746,571 Classified Salaries 37,878,243 37,370,434 507,809 Benefits 68,216,179 68,084,197 131,982 Books and Supplies 23,927,436 18,686,825 5,240,611 Services and Other Operating Expenditures 42,491,479 32,576,191 9,915,288 Capital Outlay (Locally restricted funds for Tech) 4,997,518 1,716,169 3,281,349 Other Outgoing Excl Transfers of Indirect Costs 1,183,014 1,183,014 - Other Outgoing Transfers of Indirect Costs (1,996,642) (1,548,861) (447,781) Total Expenditures 277,248,549 257,872,719 19,375,830

Restricted Expenditures

The increase in budgeted expenditures is due to restricted carryover from FY 2018-2019 being budgeted in FY 2019-2020.

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A B (A-B) 1st Interim Adopted Budget Change

Certificated Salaries 44,423,713 41,726,000 2,697,713 Classified Salaries 21,321,545 20,788,159 533,386 Benefits 33,045,188 31,994,184 1,051,004 Supplies 14,266,222 8,672,916 5,593,306 Services 24,635,827 14,931,286 9,704,541 Capital Outlay 2,539,899 1,429,747 1,110,152 Other Outgo/Indirect 1,741,910 1,406,752 335,158

Total Restricted Expenditures 141,974,305 120,949,044 21,025,261

Revenues and Expenditures - Combined

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A B (A-B) 1st Interim Adopted Budget Change

LCFF Sources 194,259,624 195,209,604 (949,980) Federal Revenue 25,851,062 21,233,309 4,617,753 Other State Revenue 11,121,870 9,342,412 1,779,458 Other Local Revenue 18,098,766 17,078,042 1,020,724 Total Revenues 249,331,323 242,863,367 6,467,955

A B (A-B) 1st Interim Adopted Budget Change

Certificated Salaries 100,551,321 99,804,750 746,571 Classified Salaries 37,878,243 37,370,434 507,809 Benefits 68,216,179 68,084,197 131,982 Books and Supplies 23,927,436 18,686,825 5,240,611 Services and Other Operating Expenditures 42,491,479 32,576,191 9,915,288 Capital Outlay (Locally restricted funds for Tech) 4,997,518 1,716,169 3,281,349 Other Outgoing Excl Transfers of Indirect Costs 1,183,014 1,183,014

• Other Outgoing Transfers of Indirect Costs

(1,996,642) (1,548,861) (447,781) Total Expenditures 277,248,549 257,872,719 19,375,830

Components of Ending Fund Balance

The Unrestricted Ending Fund Balance increased by $10.4 million from Adopted Budget to 1st Interim primarily due to the change in Beginning Fund Balance. The unassigned amount increased by $11.7 million from Adopted Budget to 1st Interim.

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A B (A-B) 1st Interim Adopted Budget Change

Beginning Fund Balance 46,047,512 36,164,477 9,883,035 Revenues 201,750,014 200,509,859 1,240,155 Expenditures (135,274,244) (136,923,675) 1,649,431 Contributions (81,956,134) (79,566,479) (2,389,655) Ending Fund Balance 30,567,148 20,184,183 10,382,965 Cash, Stores & Prepaids 100,000 150,000 (50,000) Deficit Spending FY 2020-2021 9,208,409 11,131,616 (1,923,207) Other Assignments - Bus Replacement 120,000

• 120,000

Reserve for Economic Uncertainties 8,317,457 7,736,182 581,275 Unassigned 12,821,282 1,166,385 11,654,897

MULTI-YEAR PROJECTIONS

Fund 01.0 ‐01.4 FY 2019‐2020, FY 2020‐2021, and FY 2021‐2022

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1st Interim MYP Projection Factors

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FY 2019‐20 FY 2020‐21 FY 2021‐22 Step and Column Movement Certificated Actual 2% 2% Step and Column Movement Classified Actual 1% 1% Health and Welfare Benefits Increase Actual 4% 4% Cost of Living Adjustment to LCFF Target 3.26% 3.00% 2.80% Lottery Revenue – Unrestricted 153 153 153 Lottery Revenue – Restricted 54 54 54 Mandated Block Grant 32.18 33.15 34.08 CalSTRS Employer Rates 17.10% 18.40% 18.10% CalPERS Employer Rates 19.72% 22.80% 24.90% LCFF Unduplicated % for Supplemental and Concentration Grants 89.16% 90.05% 91.02%

Enrollment Assumptions 1st Interim vs Adopted Budget

15 19,247 19,072 19,127 18,693 19,085 18,254 17,688 17,212 18,341 18,166 17,991

16,000 16,500 17,000 17,500 18,000 18,500 19,000 19,500 2014‐15 2015‐16 2016‐17 2017‐18 2018‐19 2019‐20 2020‐21 2021‐22 CBEDS Enrolment/1st Interim Adopted Budget

FY 2020‐2019 through FY 2021‐2022 are Projections

FY 2019-20 Proposed Budget Report MYP Revenues and Expenditures - Unrestricted

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UNRESTRICTED UNRESTRICTED UNRESTRICTED 2019-20 Budget 2020-21 Proj 2021-22 Proj LCFF 194,259,624 197,045,848 197,195,013 Federal Revenue State Revenue 4,915,425 3,235,583 3,163,685 Local Revenue 2,574,965 2,574,965 2,574,965 Total Revenues 201,750,014 202,856,396 202,933,663 Certificated Salaries 56,127,608 55,632,780 55,451,532 Classified Salaries 16,556,698 16,722,265 16,889,488 Benefits 35,170,991 36,186,435 36,336,561 Supplies 9,661,214 4,810,620 4,810,620 Services 17,855,652 17,988,906 17,855,652 Capital Outlay 2,457,619 404,526 404,526 Other Outgo/Indirect

• 2,555,538
• 2,555,538
• 2,555,538

Total Expenses 135,274,244 129,189,994 129,192,841

FY 2019-20 Proposed Budget Report MYP Revenues and Expenditures - Restricted

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RESTRICTED RESTRICTED RESTRICTED 2019-20 Budget 2020-21 Proj 2021-22 Proj LCFF Federal Revenue 25,851,062 25,851,062 25,851,062 State Revenue 6,206,445 6,176,182 6,150,730 Local Revenue 15,523,801 15,523,801 15,523,801 Total Revenues 47,581,309 47,551,045 47,525,593 Certificated Salaries 44,423,713 45,312,187 46,218,431 Classified Salaries 21,321,545 21,534,760 21,750,108 Benefits 33,045,188 34,830,494 35,703,112 Supplies 14,266,222 8,047,791 8,047,791 Services 24,635,827 18,417,396 18,417,396 Capital Outlay 2,539,899 2,539,899 2,539,899 Other Outgo/Indirect 1,741,910 1,741,910 1,741,910 Total Expenses 141,974,305 132,424,438 134,418,648

FY 2019-20 Proposed Budget Report Contributions to Restricted Programs

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2019-20 2020-21 Projection 2021-22 Projection Budget LCAP (Supplemental and Concentration Grants) 49,915,681 51,303,383 52,062,718 RRMA 8,317,457 7,848,433 7,908,345 Special Education 23,190,325 23,190,325 23,190,325 Tech Updates and Resource 9500 (Saturday School Incentive) 532,671 532,671 532,671 Total 81,956,134 82,874,812 83,694,059

FY 2019-20 Proposed Budget Report Components of Ending Fund Balance - Unrestricted

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UNRESTRICTED UNRESTRICTED UNRESTRICTED 2019-20 Budget 2020-21 Proj 2021-22 Proj Beginning Balance 46,047,512 30,567,148 21,358,738 Unrestricted Revenues 201,750,014 202,856,396 202,933,663 Unrestricted Expenses

• 135,274,244
• 129,189,994
• 129,192,841

Contribution

• 81,956,134
• 82,874,812
• 83,694,059

Total Surplus/(Deficit)

• 15,480,364
• 9,208,409
• 9,953,237

Ending Balance 30,567,148 21,358,738 11,405,502 Assignments: Revolving Cash, Stores & Prepaid 100,000 100,000 100,000 Deficit Spending 9,208,409 9,953,237 Bus Replacement 120,000 240,000 360,000 3% REU (9789) 8,317,457 7,848,433 7,908,345 UNASSIGNED (9790) 12,821,282 3,217,068 3,037,157

FY 2019-20 Proposed Budget Report All Other Funds

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Beginning Revenue Expenditures Ending Fund Description Balance Transfers In Transfers Out Balance

10 Special Ed. Pass Through 63,490,000 63,490,000 12 Child Development 176,746 16,586,024 16,586,024 176,746 13 Cafeteria 5,273,528 13,784,404 15,279,004 3,778,928 21 Building Fund (GO Bonds) 44,283,496 44,149,060 134,436 25 Capital Facilites (Dev Fees) 258,805 50,000 308,805 40 Capital Outlay 210,962 546,438 573,310 184,090 49 Building Fund (Spec Tax Bonds) 9,052,838 95,000 8,618,015 529,823 52 Debt Service (Spec Tax Bonds) 12,961,890 5,844,300 9,757,873 9,048,317 56 Debt Service (COPs) 421474.97 9,759,273 9,759,274 421,474

Looking Forward

• Governor’s Adopted Budget
• Potential for COLA only increases
• Change Continues - Enrollment, ADA

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Questions?

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