June 2, 2015 LCFF LC LC LCAP AP Local Control Funding Formula - - PowerPoint PPT Presentation

June 2, 2015

 Expenditures based on District experience,

and LCAP projections.

 Revenue estimates based on Governor’s

May Budget Revision

 Refinements are possible before adoption

LC LCFF

Local Control Funding Formula

LC LCAP AP

Local Control Accountability Plan

 Reflect increase in the Unrestricted Fund Balance

• 2014-2015 Increase of $3,209,921
• Total Projected Ending Fund Balance $35,126,747

 Increases in ongoing revenue

• LCFF Gap from 29.15% to 29.97%

 One-Time reductions in expenditures

Unfilled Positions, Substitutes Unexpended Allocations for Supplies and Contracts

E-Rate, Electricity, Professional Fees

Reduced Contributions to Special Education and Routine Restricted Maintenance

2015-16 Budget Assumptions

2015-2016 Step and Column Movement 1.25% Cost of Living Adjustment to LCFF Target 1.02% LCFF Gap Funding 53.08% Lottery Revenue – Unrestricted $128.00 Lottery Revenue – Restricted $ 34.00 Interest Rate for 10-year Treasuries 2.4% Consumer Price Index (CPI) 2.2% LCFF Unduplicated % for Supplemental and Concentration Grants 86.29% Benefits Soft Cap $16,972

2015-16 Budget Assumptions Declining Enrollment / ADA

17,400 17,600 17,800 18,000 18,200 18,400 18,600 18,800 19,000 19,200 19,400 19,600 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

19,450 19,157 18,643 18,468 18,288 18,141 P-2 ADA

P-2 ADA

Esti timat mated

BASE GRANT TARGET:

Line No. Grade Span Funded ADA Prior Year Base Grant Rate 2015-16 COLA 1.02% 2015-16 Base Grant Rate Total Base Grant B-1 K-3

8,456 $ 7,748 $ 72 $ 7,820 $ 66,125,920

B-2 4-6

6,220 $ 7,116 $ 73 $ 7,189 $ 44,715,580

B-3 7-8

3,465 $ 7,328 $ 75 $ 7,403 $ 25,651,395

B-5

Total Base Grant Target

$ 136,492,895

Base Grant Rates have been determined by the State and are the same for every district.

Transportation and TIIG Add-On:

E

• 1

2012-13 Transportation Funding Add-on (no COLA) $ 309,220

E

• 2

2012-13 TIIG Funding Add-on (no COLA) $ 1,059,011 TOTAL LCFF ENTITLEMENT/TARGET:

F

• 1

Total LCFF Entitlement/Target (B-5 + C-1 + C-2 + D-4 + D-6 + E-1 + E-2) $ 183,019,800

Supplemental and Concentration Grants:

D-1c 2 Year Average Enrollment 19,207 D-2b 2 Year Average Unduplicated Pupil Count (English Learners, Free or Reduced-Price Meal and Foster Youth) 16,624 D-3 % of Enrollment Eligible for Supplemental Add-on 86.55% D-4 Supplemental Add-on (20% x D-3 x (B-5 + C-3)) $ 23,626,920 D-5 % of Enrollment Eligible for Concentration Add-on (if D-3<55%, enter 0, D-3 minus 55%) 31.55% D-6 Concentration Add-on (50% x D-5 x (B-5 + C-3)) $ 21,586,352

Gap Funding and Demonstration of Proportionality

Target Entitlement

Floor / Minimum State Aid $135,058,761

Total LCFF Gap = $47,961,039

$183,019,800 Current Year Funding =

Total LCFF Gap* Gap Funding %

$47,961,039 x 53.08% $25,457,720

Note: 2014-15 LCFF Funding = $136,046,001 Floor Funding Reduction due to declining ADA. ($987,240)

Demonstration of Proportionality: Calculating the Supplemental and Concentration Grants

2015/16 Total Gap Funding = 53.08%

2015-16 S&C Gap Funding:

28,550,888 x 53.08% 15,154,812

S&C Funding at Target: $45,158,674 S&C Spent Prior Year: $16,607,786

S&C Gap 2015-16 = $28,550,888

Base Grant Supplemental and Concentration Grant

2015-16 Base Grant Gap Funding: $25,457,720

• 15,154,812

$10,302,908 Base Funding at Target: 136,492,895 Base Floor: 118,450,975

Base Grant Gap 2015-16 = $18,041,920

Gap Funding Attributable to Base Grant

2015/16 Total Gap Funding = 53.08% $25,457,720

S&C Gap 2014-15 = $28,550,888

2015-16 S&C Gap Funding: 28,550,888 x 53.08% 15,154,812 ADA Decrease ($987,240) $9,315,668

Supplemental and Concentration Grant

Demonstration of Proportionality:

2015-16 S&C Gap Funding: $15,154,812 S&C Spent Prior Years: $16,607,786 Total to increase services to Target students 2015-16: $31,762,597

2015-16 Total LCFF Revenue: $160,516,481 Proportionality Percentage = Supplemental and Concentration / Total LCFF Revenue

Prior Year Mandate Claims Reimbursement

• Governor’s May Revision 2015-16 Budget
• One –Time Revenue – Assigned to Fund

Balance

• Funded on a per ADA Basis
• Estimated $601/ADA
• 2014/15 ADA at P2: 18,288
• Estimated Change to Budgeted 2015-16

Revenues: $10,991,088

$10,991,088

$10,900,000 - $117,400,000

• Governor’s May

Revision 2015-16 Budget

• One –Time Revenue:

Assigned to Fund Balance

• Funded on a per ADA

Basis

• Estimated $601/ADA
• 2014/15 ADA at P2:

18,288

 Possible One Time

Expenditures:

• OPEB Contributions

 $7.5 million - $114 million

• Educator’s Computers

 $1.4 million

• Obsolete or Broken School

Furniture and Equipment

 $2 million

Major Estimated Base Fund Expenditure Increases: Step & Column: $ 976,947 Consumer Price Index: $ 317,093 STRS/PERS Increase: $ 1,091,038 Technology Maintenance: $ 350,000 David G. Millen Utilities / Ins.: $ 184,833 Healthy Workplace Healthy Families: $ 251,982 Staffing Grade Span Adjustment: $ 591,375 Benefits Increases (Soft Cap Increase) $ 305,000 Benefits Increases (New Retirees) $ 450,000 Increased RRMA Contribution $ 3,226,633 $ 7,744,901

2014-15 Estimated Actuals 2015-16 Budget Certificated Salaries 23,578,469 31,859,401 Classified Salaries 9,173,086 11,363,477 Employee Benefits 14,948,774 20,036,800 Books and Supplies 7,694,628 6,034,305 Services and Other Operating 8,823,530 11,295,758 Capital Outlay 2,264,388 295,594 Other Outgo 1,352,191 485,228 Transfers of Indirect Costs 619,256 437,470 Total Expenditures 68,454,322 81,808,033

Includes LCAP Expenditures: Salaries and Benefits $25,741,517 Books and Supplies $ 2,714,580 Services and Other $ 3,306,500 $31,762,597

17,400 17,600 17,800 18,000 18,200 18,400 18,600 18,800

2012-13 2013-14 2014-15 2015-16 2016-17 2017-18

18,643 18,468 18,288 18,141 18,005 17,902 Estimated Estimated Estimated

Multi-Year Projection Factors

2016-2017 2017-2018 Step and Column Movement 1.25% 1.25% Cost of Living Adjustment to LCFF Target 1.60% 2.48% LCFF Gap Funding 37.40% 36.70% Lottery Revenue – Unrestricted $128.00 $128.00 Lottery Revenue – Restricted $ 34.00 $ 34.00 Interest Rate for 10-year Treasuries 2.8% 3.0% Consumer Price Index (CPI) 2.4% 2.6% LCFF Unduplicated % for Supplemental and Concentration Grants 85.43% 85.45% Benefits Soft Cap $17,454 $17,965 STRS Employer Contribution 12.58% 14.43% PERS Employer Contribution 12.6% 15.0%

2015 2015-2016 2016 Budget get 2016 2016-2017 2017 Proje jectio tion 2017 2017-2018 2018 Proje jectio tion REVENUES LCFF State Revenue 31,762,598 36,619,480 39,825,724 Federal Revenue 12,266,219 12,266,219 12,266,219 Other State Revenue 5,332,657 4,361,891 4,361,891 Other Local Revenue 12,592,292 12,592,292 12,592,292 Other Sources Contributions 20,723,262 20,782,860 20,881,713 TOTAL REVENUES 82,677,028 86,622,742 89,927,839 EXPENDITURES Certificated Salaries 31,859,401 33,652,804 36,468,991 Classified Salaries 11,363,477 11,967,056 12,026,891 Employee Benefits 20,036,800 22,783,746 25,365,457 Books and Supplies 6,034,305 7,038,315 7,212,865 Services, Other Operating Expenses 11,295,758 11,676,984 11,966,573 Capital Outlay 295,594 300,324 307,772 Other Outgo 485,228 485,228 485,228 Indirect Costs 437,470 437,470 437,470 TOTAL EXPENDITURES 81,808,033 88,341,927 94,271,247 Increase/(Decrease) to Fund Balance 868,995 (1,719,185) (4,343,408)

2015 2015-2016 2016 Budget get 2016 2016-2017 2017 Proje jectio tion 2017 2017-2018 2018 Proje jectio tion REVENUES LCFF State Revenue 128,761,972 131,899,323 134,909,548 Federal Revenue Other State Revenue 13,825,204 2,834,116 2,847,141 Other Local Revenue 1,840,087 1,593,748 1,593,748 Other Sources Contributions (20,723,262) (21,019,218) (21,295,951) TOTAL REVENUES 123,704,001 115,307,969 118,054,486 EXPENDITURES Certificated Salaries 52,847,222 53,507,812 54,176,660 Classified Salaries 12,808,204 12,968,307 13,130,411 Employee Benefits 30,143,993 32,266,321 34,311,821 Books and Supplies 4,410,472 4,516,323 4,633,748 Services, Other Operating Expenses 11,736,069 12,017,735 12,318,178 Capital Outlay 29,301 30,004 30,784 Other Outgo 315,228 315,228 315,228 Indirect Costs (1,243,056) (1,243,056) (1,243,056) TOTAL EXPENDITURES 111,047,433 114,378,674 117,673,774 Increase/(Decrease) to Reserve 12,656,568 929,295 380,712

2015 2015-2016 2016 Budget get 2016 2016-2017 2017 Proje jectio tion 2017 2017-2018 2018 Proje jectio tion TOTAL REVENUES 123,704,001 115,307,969 118,054,486 TOTAL EXPENDITURES 111,047,433 114,378,674 117,673,774 Increase/(Decrease) to Reserve 12,656,568 929,295 380,712 FUND BALANCE Beginning Fund Balance 35,126,747 47,783,315 48,712,610 Ending Fund Balance 47,783,315 48,712,610 49,093,322

Compone nents nts of Fund nd Balance ce:

Revolv

• lving

ing Cash h and Stores Invent ntory

• ry

200,000 000 200,000 000 200,000 000 Assigne igned d - Board rd Design signate ated d - 1% 1% 1,928, 28,554 554 2,027, 27,206 206 2,119, 19,450 450 Assigned – LCFF Gap Funding 1,572,720 3,077,832 Assigned – Prior Year Mandate One-Time 10,991 991,088 088 10,991 991,088 088 10,991 991,088 088 Econo nomic c Uncertaint rtainties ies – 3% 3% 5,785, 85,662 662 6,081, 81,618 618 6,358, 58,351 351 Unap approp ropriate riated d Amoun unt 28,878, 878,011 011 27,839, 839,979 979 26,346, 346,603 603 Total : 47,783, 783,315 315 48,712, 712,610 610 49,093, 093,322 322

Fisca cal l Year Total Reserve rve SBE Requir ired d 3% Minimum Reserve rve Reserve rve above SBE Minimum um Assig igned d Balanc ance Above ve Minimum Reserve rve Unassig igned Balanc ance Above ve Minimum Reserve rve

2015 2015-201 2016 $47,783,315 $5,785,662 $41,997,653 $13,119,642 $28,878,011 2016 2016-201 2017 $48,712,610 $6,081,618 $42,630,992 $14,712,228 $27,918,764 2017 2017-201 2018 $49,093,322 $6,358,351 $42,734,971 $16,070,291 $26,664,680

Re Reserve serve Di Disclosure sclosure

• Assigned Balance:
• Board Reserve.
• Unguaranteed funds.
• Unassigned Fund Balance:
• Results from revised revenue projections. Previously budgeted to

be deficit spent.

Fund Estimated ted Revenu enues es Estimated ted Expen enditu ture res Projec ected ted Restri tricted cted/A /Assig ssigned ed Fund Balance 10 SELPA Pass-Through $58,546,400 $58,506,400 $51,000 12 Early Childhood Education $13,642,839 $13,642,839 $254,526 13 Child Nutrition $12,745,193 $12,220,407 $3,773,862 20 Post Employment Benefits $1,000 $0 $176,427 21 Building Fund $300,000 $16,680,296 $28,416 40 Reserve for Capital Outlay $10,000 $324,957 $0 49 Capital Project Fund $0 $2,766,037 $23,022 52 Debt Service Fund $5,210,889 $3,855,302 $13,603,049 56 Debt Service Fund $3,000 $60,469

 Steps to target continue to be

uncertain

 One-Time Expenditures  State Budget Adoption must

take place by June 15

 LCAP and Budget Public

Hearings

 LCAP and Budget Approval