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

June 2, 2015

LCFF LC LC LCAP AP Local Control Funding Formula Local Control Accountability Plan  Expenditures based on District experience, and LCAP projections.  Revenue estimates based on Governor’s May Budget Revision  Refinements are possible before adoption

 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 86.29% and Concentration Grants Benefits Soft Cap $16,972

2015-16 Budget Assumptions Declining Enrollment / ADA P-2 ADA 19,450 19,600 19,157 19,400 19,200 19,000 18,643 18,800 18,468 18,600 Esti timat mated 18,288 P-2 ADA 18,400 18,141 18,200 18,000 17,800 17,600 17,400 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

BASE GRANT TARGET: Funded Prior Year Base 2015-16 2015-16 Base Grade Line ADA Grant Rate COLA 1.02% Grant Rate Span No. Total Base Grant 8,456 $ 7,748 $ 72 $ 7,820 $ 66,125,920 B-1 K-3 6,220 $ 7,116 $ 73 $ 7,189 $ 44,715,580 B-2 4-6 3,465 $ 7,328 $ 75 $ 7,403 $ 25,651,395 B-3 7-8 $ 136,492,895 Total Base Grant Target B-5 Base Grant Rates have been determined by the State and are the same for every district.

Supplemental and Concentration Grants: D-1c 2 Year Average Enrollment 19,207 2 Year Average Unduplicated Pupil Count (English Learners, Free or D-2b 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 % of Enrollment Eligible for Concentration Add-on (if D-3<55%, enter 0, D-3 D-5 minus 55%) 31.55% D-6 Concentration Add-on (50% x D-5 x (B-5 + C-3)) $ 21,586,352 Transportation and TIIG Add-On: E - 2012-13 Transportation Funding Add-on (no COLA) $ 309,220 1 E - 2012-13 TIIG Funding Add-on (no COLA) $ 1,059,011 2 TOTAL LCFF ENTITLEMENT/TARGET: F - Total LCFF Entitlement/Target (B-5 + C-1 + C-2 + D-4 + D-6 + E-1 + E-2) $ 183,019,800 1

Gap Funding and Demonstration of Proportionality Target Entitlement $183,019,800 Current Year Funding = Total LCFF Gap = Total LCFF Gap* Gap Funding % $47,961,039 $47,961,039 Floor / Minimum State Aid x 53.08% $135,058,761 $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% S&C Funding at Target: $45,158,674 S&C Gap 2015-16 S&C Gap Funding: 2015-16 = $28,550,888 28,550,888 x 53.08% S&C Spent Prior Year: $16,607,786 15,154,812

Gap Funding Attributable to Base Grant 2015/16 Total Gap Funding = 53.08% $25,457,720 Base Grant Base Funding at Base Grant Gap Target: 136,492,895 2015-16 = Supplemental and $18,041,920 Base Floor: Concentration Grant 118,450,975 2015-16 Base Grant Gap Funding: S&C Gap 2015-16 S&C Gap Funding: 2014-15 = $25,457,720 $28,550,888 -15,154,812 28,550,888 $10,302,908 x 53.08% ADA Decrease ($987,240) 15,154,812 $9,315,668

Demonstration of Proportionality: 2015-16 Total LCFF Revenue: $160,516,481 Supplemental and Concentration Grant 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 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

• Governor’s May  Possible One Time Revision 2015-16 Expenditures: Budget ◦ OPEB Contributions • One – Time Revenue:  $7.5 million - $114 million Assigned to Fund ◦ Educator’s Computers Balance  $1.4 million • Funded on a per ADA ◦ Obsolete or Broken School Basis Furniture and Equipment • Estimated $601/ADA  $2 million • 2014/15 ADA at P2: 18,288 $10,900,000 - $10,991,088 $117,400,000

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 2015-16 Estimated Actuals Budget Certificated Salaries 23,578,469 31,859,401 Includes LCAP Expenditures: Salaries and Benefits $25,741,517 Classified Salaries 9,173,086 11,363,477 Books and Supplies $ 2,714,580 Employee Benefits 14,948,774 20,036,800 Services and Other $ 3,306,500 Books and Supplies 7,694,628 6,034,305 $31,762,597 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

18,643 18,800 18,468 18,600 18,288 Estimated 18,400 Estimated 18,141 Estimated 18,200 18,005 17,902 18,000 17,800 17,600 17,400 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18

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 85.43% 85.45% and Concentration Grants 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 2016 2016-2017 2017 2017 2017-2018 2018 Budget get Proje jectio tion 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 2016-2017 2016 2017 2017 2017-2018 2018 Budget get Proje jectio tion Proje jectio tion REVENUES LCFF State Revenue 128,761,972 131,899,323 134,909,548 Federal Revenue 0 0 0 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