FY 2019-2020 Proposed Budget Report June 4, 2019 1 Dramatically - - PowerPoint PPT Presentation

FY 2019-2020 Proposed Budget Report

June 4, 2019

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Every student leaves Ready for Success in High School and Beyond: College, Career, the Global World

Dramatically Improve Student Engagement and Achievement Providing Safe and Affirming School Environment Engaging Families and Communities Providing Strategic Direction for School Sites and Staff Creating Globally- Competitive Learning Environments

• f High

Intellectual Performance

LCAP

LCAP Goal 2 Welcoming, Safe and Healthy Learning Environment LCAP Goal 3 Parent, Family and Community Partnership LCAP Goal 1 High Level Academic Preparation and College & Career Readiness LCAP Goal 4 Basic Services-Williams Compliance

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The WHY of WHAT WE DO

Governor’s Budget Proposal – Key Items

• Proposition 98 funding of $81.1 billion for 2019-20, an increase of $389.3

million relative to the funding level from the 2019-20 January Proposed Budget and $3.0 billion over the 2018-19 Adopted Budget.

• Increased funding for the LCFF by $1.959 billion a decrease of $64 million

from the January Proposed Budget.

• Decrease in statutory COLA for 2019-20 from the January estimate of

3.46% to 3.26%.

• Augmentation Grant to provide additional funding for grades K-3 Class Size

Reduction (CSR) and 9-12 Career Technical Education (CTE). The CSR augmentation is 10.4 percent of the K-3 Base Grant, estimated at $801 per average daily attendance (ADA) for 2019-20.

• The May Revise included $3.15 billion an increase of $150 million over the

January Proposed Budget in non-Proposition 98 contribution to CalSTRS resulting in a decrease in the 2019-20 Employer Contribution rate.

• One-time discretionary funds were not included in the January Proposed

Budget or the May Revision.

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Key Assumptions for PSD’s Proposed Budget

• TPAA expansion into K-5 will occur in FY 2019-2020
• Projected enrollment will be 18,341 a decrease of 742 students

from P2 enrollment

• LCFF will be funded based on FY 2018-19 ADA with an

adjustment for charter shift

• COLA for FY 2019-2020 is 3.26% and no one-time discretionary

funds are included

• Expenditures associated with Special Education are a continuing

concern due to encroachment on the general fund.

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

PERS, HW, etc.) as well as CPI

• The district must budget conservatively in a deficit spending

environment.

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Enrollment and ADA

The certified 2018-19 P2 report shows ADA of 18,188.02 corresponding to an enrollment of 19,083 using an enrollment to ADA factor of 95.3%. The proposed budget assumes a loss of 742 students in FY 2019-20 and a corresponding decrease in ADA of 707.44

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A B (B-A) Estimated Actuals 2018-19 P2 Proposed Budget 2019-20 Change Enrollment 19,083 18,341

• 742

ADA 18,188.02 17,480.58

• 707.4

Unrestricted Revenues

The exclusion of one-time discretionary funds from the Governor’s budget is responsible for a decrease of $3.4 million in “Other State Revenue” from FY 2018-19 to FY 2019-20.

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A B (B-A) Estimated Actuals 2018-19 Proposed Budget 2019-20 Change LCFF Sources 194,598,498 195,209,604 611,106 Federal Revenue Other State Revenue 6,759,444 3,311,022

• 3,448,422

Other Local Revenue 2,739,452 1,980,808

• 758,644

Total Revenues 204,097,394 200,501,434

• 3,595,960

Unrestricted Expenditures

The change in unrestricted expenditures from the FY 2018-19 Estimated Actuals to the FY 2019-20 Proposed Budget is $2.2 million. The impact of the FY 2019-20 STRS rate decrease

• f $817,692 is realized on the MYP in FY 2020-21.

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A B (B-A) Estimated Actuals 2018-19 Proposed Budget 2019-20 Change

Certificated Salaries 58,380,086 57,181,224

• 1,198,862

Classified Salaries 16,166,969 16,713,317 546,348 Benefits 35,865,794 37,265,596 1,399,802 Books and Supplies 6,357,846 10,000,419 3,642,573 Services 17,354,149 17,561,431 207,282

and Other Operating Expenditures

Capital Outlay 4,367,019 286,422

• 4,080,597

(Locally restricted funds for Tech)

Other Outgoing

• 3,383,063
• 1,696,699

1,686,364 Total Expenditures 135,108,800 137,311,710 2,202,910

Contributions to Restricted Resources

The contribution to restricted resources decreased by $541,589.

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A B (B-A) Estimated Actuals 2018-19 Proposed Budget 2019-20 Change

LCAP (Supplemental and Concentration Grants) 49,016,036 49,037,560 21,524 RRMA 4,940,000 4,940,000 Special Education 22,964,452 22,445,484

• 518,968

Other Federal Prgms 198,156 194,966

• 3,190

Resource 9500 (Saturday School Incentive) 40,956

• 40,956

Total 77,159,600 76,618,010

• 541,589

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

Proposed Budget Unrestricted 2019-20 Proposed Budget Restricted 2019-20 Total Fund LCFF Sources 195,209,604 195,209,604 Federal Revenue 21,126,946 21,126,946 Other State Revenue 3,311,022 6,022,965 9,333,987 Other Local Revenue 1,980,808 15,097,234 17,078,042 Total Revenues 200,501,434 42,247,145 242,748,579

FY 2019-20 General Fund Expenditures

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Certificated Salaries 38% Classified Salaries 14% Benefits 27% Books and Supplies 7% Services 13% Capital Outlay 1% 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

Proposed Budget Unrestricted 2019-20 Proposed Budget Restricted 2019-20 Total Fund

Certificated Salaries 57,181,224 41,883,114 99,064,338 Classified Salaries 16,713,317 20,879,507 37,592,824 Benefits 37,265,596 32,230,325 69,495,921 Books and Supplies 10,000,419 7,898,967 17,899,386 Other Outgoing

• 1,696,699

1,330,852

• 365,847

Total Expenditures 137,311,710 121,077,920 258,389,630 15,425,408 1,429,747 32,986,839 1,716,169 Services 17,561,431 Capital Outlay 286,422

Revenues and Expenditures - Combined

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A B (B - A) FY 2018-19 Estimated Actuals FY 2019-20 Proposed Budget Change LCFF Sources 194,598,498 195,209,604 611,106 Federal Revenue 24,413,845 21,126,946

• 3,286,899

Other State Revenue 15,320,829 9,333,987

• 5,986,842

Other Local Revenue 16,876,890 17,078,042 201,152 Total Revenues 251,210,062 242,748,579

• 8,461,482

A B (B - A) FY 2018-19 Estimated Actuals FY 2019-20 Proposed Budget Change Certificated Salaries 103,070,641 99,064,338

• 4,006,303

Classified Salaries 35,770,786 37,592,824 1,822,038 Benefits 66,234,790 69,495,921 3,261,131 Books and Supplies 19,597,597 17,899,386

• 1,698,211

Services and Other Operating Expenditures 36,157,361 32,986,839

• 3,170,522

Capital Outlay (Locally restricted funds for Tech) 6,043,362 1,716,169

• 4,327,193

Other Outgoing

• 1,755,099
• 365,847

1,389,252 Total Expenditures 265,119,438 258,389,630

• 6,729,808

Components of Unrestricted Ending Fund Balance

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A B (B - A) FY 2018-19 Estimated Actuals FY 2019-20 Proposed Budget Change Beginning Fund Balance 43,777,395 35,338,484

• 8,438,912

Revenues 204,097,394 200,501,434

• 3,595,960

Expenditures

• 135,108,800
• 137,311,710
• 2,202,910

Contributions & Transfers Out

• 77,427,505
• 79,746,776
• 2,319,272

Ending Fund Balance 35,338,484 18,781,431

• 16,557,052

Cash, Stores & Prepaids 150,000 150,000 Deficit Spending FY 2019-2020 16,557,052

• 16,557,052

Reserve for Economic Uncertainties 7,961,621 7,751,689

• 209,932

Unassigned 10,669,810 10,879,742 209,932

Special Report FY 2019-20 Education Protection Account (EPA)

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On June 18, 2019, the Governing Board of the Palmdale School District will approve a Resolution Regarding the Education Protection Account for Fiscal Year 2019-2020, to expend EPA funds to support teacher salaries and benefits. Palmdale School District 2019-2020 EPA Entitlement (Adopted Budget) $25,776,709 The Palmdale School District 2019-2020 Education Protection Account funds are estimated to support salaries and benefits for regular classroom teachers. The number of teachers funded will be determined as salaries and benefits information becomes known. The 2019-2020 Education Protection Account budgeted expenditures are shown below:

Description Object Codes Amount Revenue: Revenue Limit Sources 8012 $25,776,708.79 Expenditures: Certificated Salaries 1000-1999 17,442,706.00 STRS Contributions 3111 2,988,317.00 PERS Contributions 3211 23,189.00 Medicare Contributions 3331 253,022.00 OASDI 3311 18,001.00 Health & Welfare Benefits 3411 3,586,982.00 State Unemployment 3511 8,865.00 Worker's Comp Insurance 3611 471,076.00 OPEB Contributions 3711/3751 984,551.00 Instructional Supplies 4310 0.00 Transfers Out (to Charter Schools) 7299 0.00 TOTAL EXPENDITURES $25,776,709.00

FY 2019-20 Reserve Disclosure

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The following information is provided in accordance with Education Code Section 42127(a)(2)(B) regulations:

Fiscal Year Total Reserve SBE Required Minimum Reserve Reserve above SBE Minimum Assigned Balance Above Minimum Reserve Unassigned Balance Above Minimum Reserve 2019-20 $18,781,431 $7,751,689 $11,029,742 $150,000 $10,879,742 2020-21 $7,889,146 $7,735,838 $153,308 $150,000 $3,308 2021-22 ($2,293,373) $7,877,111 ($10,170,484) $150,000 ($10,320,484) Table #1: Unrestricted General Fund Description 2019-20 2020-21 2021-22 Reserved - Restricted EFB Object 9740 $16,914,961 $16,008,212 $13,111,135 Table #2: Restricted General Fund NOTE: Fund balance for restricted sources must be reserved to use in restricted qualified expenditures only.

MULTI-YEAR PROJECTIONS

Fund 01.0 -01.4 FY 2019-20, FY 2020-21 and FY 2021-22

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FY 2019-20 Proposed Budget Report MYP Projection Factors

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FY 2019-20 FY 2020-21 FY 2021-22 Step and Column Movement Certificated 2% 2% 2% Step and Column Movement Classified 1% 1% 1% Health and Welfare Benefits Increase 2.64% 4% 4% Cost of Living Adjustment to LCFF Target 3.26% 3.00% 2.80% Lottery Revenue – Unrestricted $151 $151 $151 Lottery Revenue – Restricted $53 $53 $53 Mandated Block Grant (MBG) $32.18 $33.15 $34.08 One-Time Discretionary Fund N/A N/A N/A CalSTRS Employer Rates* 16.70% 18.10% 17.80% CalPERS Employer Rates 20.733% 23.60% 24.90% LCFF Unduplicated % for Supplemental and Concentration Grants 87.77% 87.77% 87.77% *CalSTRS Employer Rate of 18.13% was used to budget FY 2019-20. The calculated savings of the decreased rate is $810,245 in unrestricted and $598,091 in restricted and the savings are incorporated in FY 2020-21 for FY 2019-20

FY 2019-20 Through FY 2021-22 are Projections

FY 2019-20 Proposed Budget Report Enrollment and ADA Trend

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19,281 19,247 19,072 19,127 18,693 19,083 18,341 18,166 17,991 18,468 18,348 18,201 18,180 17,787 18,188 17,481 17,314 17,147

16,000 16,500 17,000 17,500 18,000 18,500 19,000 19,500 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22

Enrollment ADA

+393

• 742
• 175
• 175

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 195,209,604 198,485,527 201,940,748 Federal Revenue State Revenue 3,311,022 3,348,724 3,322,037 Local Revenue 1,980,808 1,980,808 1,980,808 Total Revenues 200,501,434 203,815,059 207,243,593 Certificated Salaries 57,181,224 57,874,668 58,581,981 Classified Salaries 16,713,317 16,880,450 17,049,255 Benefits 37,265,596 38,307,223 39,768,517 Supplies 10,000,419 5,118,516 5,118,516 Services 17,561,431 17,694,685 17,561,431 Capital Outlay 286,422 286,422 286,422 Other Outgo/Indirect (1,696,699) (1,696,699) (1,696,699) Total Expenses 137,311,710 134,465,265 136,669,423

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 21,126,946 21,126,946 21,126,946 State Revenue 6,022,965 6,022,965 6,022,965 Local Revenue 15,097,234 15,097,234 15,097,234 Total Revenues 42,247,145 42,247,145 42,247,145 Certificated Salaries 41,883,114 42,720,776 43,575,192 Classified Salaries 20,879,507 21,088,302 21,299,185 Benefits 32,230,325 33,501,922 34,941,560 Supplies 7,898,967 7,898,967 7,898,967 Services 15,425,408 15,425,408 15,425,408 Capital Outlay 1,429,747 1,429,747 1,429,747 Other Outgo/Indirect 1,330,852 1,330,852 1,330,852 Total Expenses 121,077,920 123,395,974 125,900,911

FY 2019-20 Proposed Budget Report Contributions to Restricted Programs

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2019-20 Budget 2020-21 Projection 2021-22 Projection LCAP (Supplemental and Concentration Grants) 49,374,458 49,865,792 50,824,027 RRMA 7,731,868 7,735,837 7,877,110 Special Education 22,445,484 22,445,484 22,445,484 Other Federal Prgms 194,966 194,966 (389,932) Total 79,746,776 80,242,079 80,756,690

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 A Beginning Balance 35,338,484 18,781,431 7,889,146 B Unrestricted Revenues 200,501,434 203,815,059 207,243,593 C Unrestricted Expenses 137,311,710 134,465,265 136,669,423 D Contribution (79,746,776) (80,242,079) (80,756,690) E B-C+D Total Surplus/(Deficit) (16,557,052) (10,892,285) (10,182,519) F A+E Ending Balance 18,781,431 7,889,146 (2,293,373) Assignments: G Revolving Cash, Stores & Prepaid 150,000 150,000 150,000 H Other Assignments Unrestricted Programs I 3% REU (9789) 7,751,689 7,735,838 7,877,111 F-G-H-I UNASSIGNED (9790) 10,879,742 3,308 (10,320,484)

FY 2019-20 Proposed Budget Report MYP Ending Fund Balance Combined

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FY 2019-20 FY 2020-21 FY 2021-22 Revenues 242,748,579 246,062,204 249,490,738 Expenditures 258,389,630 257,861,239 262,570,334

(Including Contributions to Rest. Res.)

Increase/Decrease to Reserve (15,641,051) (11,799,035) (13,079,596) Fund Balance Beginning Fund Balance 51,337,443 35,696,392 23,897,358 Ending Fund Balance Prior to Other Assignments 35,696,392 23,897,358 10,817,762 Components of Ending Fund Balance Cash, Stores & Prepaids 150,000 150,000 150,000 Restricted 16,914,961 16,008,212 13,111,135 Deficit Spending

• Other Assignments Unrestricted
• Reserve for Economic Uncertainties

7,751,689 7,735,838 7,877,111 Unassigned (Amount that Establishes Certification) 10,879,742 3,308 (10,320,484)

FY 2019-20 Proposed Budget Report General Fund Combined Revenues vs Expenditures

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Deficit spending trend began in FY 2017-2018 and is projected to continue through FY 2021-2022. MYP projected values shown in red box.

168 185 212 221 228 251 243 246 249 160 179 193 211 235 265 258 257 262 50 100 150 200 250 300 Revenue Expenditures

Values Shown In Millions

LCFF Increased Funding while in LCFF transition period

FY 2019-20 Proposed Budget Report Increases/(Decreases) to Reserve Trend Combined

Actuals MYP Projection

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LCFF Fully Funded COLA Only Increases Expected

8 6.7 19.2 9.7

• 6.5
• 13.9
• 15.6
• 11.8
• 13.1
• 20
• 15
• 10
• 5

5 10 15 20 25

Primary reason for deficit expenditure projections is the Increasing expenditure trend vs. steady revenue trend. FY 2018-19 includes one-time budgeted carryover from restricted programs and FY 2019-20 includes textbook adoption.

Estimated

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 74,073 60,793,693 60,793,693 74,073 12 Child Development 241,843 16,666,666 16,666,666 241,843 13 Cafeteria 3,881,016 13,730,545 13,939,125 3,672,437 21 Building Fund (GO Bonds) 38,240,455 38,240,455 25 Capital Facilites (Dev Fees) 261,640 58,000 203,602 116,038 40 Capital Outlay 146,889 546,438 573,326 120,001 49 Building Fund (Spec Tax Bonds) 8,281,768 95,000 8,188,695 188,073 52 Debt Service (Spec Tax Bonds) 11,800,765 5,844,300 9,757,873 7,887,192 56 Debt Service (COPs) 1 9,759,273 9,759,273 0.94

Looking Forward

• Governor’s Adopted Budget
• LCFF is Fully Funded – Potential for COLA only increases
• Change Continues - Enrollment, ADA

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Questions?

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The Palmdale Aerospace Academy

FY 2019-2020 Proposed Budget Report

June 4, 2019

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The Palmdale Aerospace Academy FY 2019-2020 Revenues and Expenditures

Estimated Actuals FY 2018-19 Proposed Budget FY 2019-20 Change LCFF 17,396,786 24,958,539 7,561,753 Federal Revenue 1,527,287 1,843,205 315,918 State Revenue 3,290,747 4,257,729 966,982 Local Revenue 276,452 242,343

• 34,109

Total Revenues 22,491,272 31,301,816 8,810,544 Certificated Salaries 6,631,926 9,366,004 2,734,078 Classified Salaries 3,403,627 4,245,895 842,268 Benefits 3,758,967 5,488,008 1,729,041 Supplies 1,995,381 2,527,671 532,290 Services 5,483,363 8,143,503 2,660,140 Capital Outlay 530,546 565,000 34,454 Other Outgo/Indirect Total Expenses 21,803,810 30,336,081 8,532,271 Excess (Deficiency) of Revenues over Expenditures 687,462 965,735 278,273

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The Palmdale Aerospace Academy FY 2019-2020 Changes in Fund Balance

Estimated Actuals FY 2018-19 Proposed Budget FY 2019-20 Change Net Increase/Decrease in Fund Balance 687,462 965,735 278,273 Beginning Fund Balance 9,335,855 10,023,317 687,462 Ending Fund Balance 10,023,317 10,989,052 965,735 Components of Ending Fund Balance Restricted Reserve 1,090,191 1,516,804 426,613 Unassigned/Unappropriated Amount 8,933,126 9,472,248 539,122

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The Palmdale Aerospace Academy Multiyear Enrollment and ADA Projections

TPAA is planning to add TK-5 in FY 2019-20 and is projecting additional enrollment of 600 students in grades TK-6.

ENROLLMENT FY 2018/19 FY 2019/20 FY 2020/21 FY 2021/22 TK-3 408 408 408 4 - 6 256 448 448 448 7 - 8 527 528 528 528 9 - 12 904 930 930 930 Total Enrollment 1,687 2,314 2,314 2,314 Growth Students 627 ADA TK-3

• 387.6

387.6 387.6 4 - 6 244.89 425.6 425.6 425.6 7 - 8 496.36 501.6 501.6 501.6 9 - 12 821.6 883.5 883.5 883.5 Total ADA 1,563 2,198 2,198 2,198 Growth % 41% 0% 0%

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The Palmdale Aerospace Academy Multi-year Projections

FY 2019/20 FY 2020/2021 FY 2021/2022

Revenues 31,301,816 32,020,338 32,731,314 Expenditures 30,336,081 31,402,079 31,942,738 Excess (Deficiency) of Revenues Over Expenditures 965,735 618,259 788,576

Fund Balance

Beginning Fund Balance 10,023,317 10,989,052 11,607,311 Ending Fund Balance Prior to Other Assignments 10,989,052 11,607,311 12,395,887

Components of Ending Fund Balance

Restricted

• Reserve

1,516,804 1,570,104 1,597,137

Unassigned 9,472,248 10,037,207 10,798,750

Antelope Valley Learning Academy (AVLA)

FY 2019-20 Proposed Budget Report

June 4, 2019

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Antelope Valley Learning Academy FY 2019-2020 Revenues and Expenditures

Estimated Actuals FY 2018-19 Proposed Budget FY 2019-20 Change LCFF 35,043,023 36,132,796 1,089,773 Federal Revenue 218,250 218,250 State Revenue 2,778,348 2,338,330

• 440,018

Local Revenue Total Revenues 37,821,371 38,689,376 868,005 Certificated Salaries 13,508,204 13,243,454

• 264,750

Classified Salaries 4,058,134 3,826,636

• 231,498

Benefits 4,876,391 4,823,354

• 53,037

Supplies 1,615,750 1,841,563 225,813 Services 11,933,066 13,574,606 1,641,540 Depreciation 174,306 180,165 5,859 Other Outgo/Indirect 893494 535352

• 358,142

Total Expenses 37,059,345 38,025,130 965,785 Excess (Deficiency) of Revenues over Expenditures 762,026 664,246

• 97,780

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Antelope Valley Learning Academy FY 2019-2020 Changes in Net Position

Estimated Actuals FY 2018-19 Proposed Budget FY 2019-20 Change

Beginning Net Position 5,762,601 6,524,627 762,026 Net Increase/Decrease in Fund Balance 762,026 664,246

• 97,780

Ending Net Position 6,524,627 7,188,873 664,246

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Antelope Valley Learning Academy Multiyear ADA Projections

ENROLLMENT FY 2018/19 FY 2019/20 FY 2020/21 FY 2021/22 Total Enrollment 1,746 1,748 1,763 1,778 Growth % 0% 1% 1% ADA TK-3 132.16 132.29 133.39 134.49 4 - 6 226.11 226.34 228.22 230.10 7 - 8 303.03 303.33 305.86 308.38 9 - 12 2,342.69 2,345.04 2,364.53 2,384.03 Total ADA 3,004 3,007 3,032 3,057 Growth % 0% 1% 1%

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Antelope Valley Learning Academy Multiyear Projections

FY 2019/20 FY 2020/2021 FY 2021/2022 Revenues 38,689,376 39,865,123 41,248,309 Expenditures 38,025,130 39,247,528 40,520,541 Excess (Deficiency) of Revenues Over Expenditures 664,246 617,595 727,768 Fund Balance Beginning Fund Balance 6,524,627 7,188,873 7,806,468 Ending Net Position 7,188,873 7,806,468 8,534,236 Components of Ending Net Position Restricted Net Position 5% 1,934,469 1,993,256 2,062,415 Unrestricted Net Position 5,254,404 5,813,212 6,471,821

Questions?

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