June 3, 2014 LC LCFF LC LCAP AP Local Control Funding Formula - - PowerPoint PPT Presentation

June 3, 2014

 Changes Process of Budget Approval  Budget and LCAP must be presented at a

public hearing before adoption

 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

• 2013-2014 Increase of $10,976,000
• Total Ending Fund Balance $31,524,000

 One-time increases in revenue

• Special Education Prior Year Excess Costs

 $6.2 million

• Sale of Real Estate

 $2.6 million

• SELPA Distribution of Carryover and Prior Year Allocations

 $1.3 million Prior Year Allocation Accrual Payout  $883,000 Carryover Allocation  One Time reductions in expenditures

Unfilled Positions

 Special Education and Routine Restricted Maintenance

Unexpended Allocations for Supplies and Contracts

2014-15 Budget Assumptions

2014-2015 Step and Column Movement 1.25% Cost of Living Adjustment to LCFF Target .85% LCFF Gap Funding 28.05% Lottery Revenue – Unrestricted $126.00 Lottery Revenue – Restricted $ 30.00 Interest Rate for 10-year Treasuries 3.10% Consumer Price Index (CPI) 2.10% LCFF Unduplicated % for Supplemental and Concentration Grants 86.95% Benefits Soft Cap $16,750

Local Control Funding Formula

18,000 18,500 19,000 19,500 20,000 20,500

2010-11 2011-12 2012-13 2013-14 2014-15

20,362 20,020 19,606 19,265 Estimated: 18,978

2014-15 Budget Assumptions Declining Enrollment

BASE GRANT TARGET:

Line No. Grade Span Funded ADA Base Grant Rate 2013-14 COLA .85% 2014-15 Base Grant Rate 2013-14 Total Base Grant B-1 K-3

8,336.17 $ 6,952 $ 59 $ 7,011 $ 58,445,636

B-2 4-6

6,128.93 $ 7,056 $ 60 $ 7,116 $ 43,613,298

B-3 7-8

3,683.06 $ 7,266 $ 72 $ 7,328 $ 26,988,551

B-5

Total Base Grant Target

$ 129,047,485

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) $ 181,578,796

Supplemental and Concentration Grants:

D-1b 2 Year Average Enrollment 19,130 D-2b 2 Year Average Unduplicated Pupil Count (English Learners, Free or Reduced-Price Meal and Foster Youth) 16,663 D-3 % of Enrollment Eligible for Supplemental Add-on 86.95% D-4 Supplemental Add-on (20% x D-3 x (B-5 + C-3)) $ 23,498,382 D-5 % of Enrollment Eligible for Concentration Add-on (if D-3<55%, enter 0, D-3 minus 55%) 31.95% D-6 Concentration Add-on (50% x D-5 x (B-5 + C-3)) $ 21,586,352

2014-2015 LCFF Funding: F-1 Total LCFF Entitlement Target $ 181,578,796 G-7 Current Year “Minimum State Aid” $ 114,910,234 H-1 GAP - Difference between Total LCFF Entitlement and Minimum State Aid (Lines F1 - G7) $ 66,668,562 H-2 GAP Funding (28.05% for 2014-15) $ 18,700,532 H-4 2014-15 LCFF Funding (G-7 + H-2 + H-3) $ 133,610,766

A-1 2014-15 Total LCFF Funding $ 133,610,766 A-2 2014-15 Transportation and TIIG Funding $ 1,368,231 B-1 2014-15 Supplemental & Concentration Grants at Target $ 45,084,734 B-2 Prior Year LCFF Funds Spent on Unduplicated Pupils in Addition to What was Expended on All Pupils (minimum EIA Amount plus amount provided by district on Data Collection Sheet) $4,204,510 B-3 Difference (B-1 - B-2, if = 0, go to B-8b) $40,859,457 B-4 Funded Portion of the Increase in Supplemental & Concentration Grants (B-3 x Gap Funding 28.05%) $ 11,466,903 B-5 Total Funding for Unduplicated Pupils (B-2 + B-4) $ 15,671,413 B-6 Current Year LCFF Funding Available to Serve all Students (A-1 - A-2 - B-5) $ 116,571,122 B-7 Proportionality Percentage for Unduplicated Pupils (B-5/B-6) 13.44%

2013 2013-14 14 3.6% 2014 2014-15 15 13.44% 44%

Base Grant

• Supp. and
• Conc. Grants

2015 2015-16 16 21.06% 06% 2016 2016-17 17 23.91 .91%

A-1 2014-15 Total LCFF Funding $ 133,610,766 A-2 2014-15 Transportation and TIIG Funding $ 1,368,231 B-1 2014-15 Supplemental & Concentration Grants at Target $ 45,084,734 B-2 Prior Year LCFF Funds Spent on Unduplicated Pupils in Addition to What was Expended on All Pupils (minimum EIA Amount plus amount provided by district on Data Collection Sheet) $4,204,510 B-3 Difference (B-1 - B-2, if = 0, go to B-8b) $40,859,457 B-4 Funded Portion of the Increase in Supplemental & Concentration Grants (B-3 x Gap Funding 28.05%) $ 11,466,903 B-5 Total Funding for Unduplicated Pupils (B-2 + B-4) $ 15,671,413 B-6 Current Year LCFF Funding Available to Serve all Students (A-1 - A-2 - B-5) $ 116,571,122 B-7 Proportionality Percentage for Unduplicated Pupils (B-5/B-6) 13.44%

2014 - 15 LCFF Total Funding: $133,610,766 2014-15 Supp. & Conc. Grants: ($ 15,671,413) Estimated Base Program Funding: $ 117,969,353 Base Grant Funding (To Serve All Students): $116,571,122 Transportation and TIIG Add-on: $ 1,368,231 Estimated Base Program Funding: $ 117,969,353

2013 2013-14 4 Esti timat mated Actu ctuals ls 2014 2014-15 5 Budget get Unres estr tricted ted Rest stri ricted ted Tota tal Unres estr tricted ted Rest stri ricted ted Tota tal LCFF F Sour urce ces 121,454,73 1,454,736 6 0 121,454,73 1,454,736 6 124,659,63 4,659,638 8 15,671,413 ,671,413 140,331,05 0,331,051 1 Federa deral Reven enue ue 0 13,681,723 ,681,723 13,681,723 ,681,723 11,261,229 ,261,229 11,261,229 ,261,229 Other her State te Reven enue ue 3,159,087 159,087 8,799,326 799,326 11,958,413 ,958,413 2,885,468 885,468 1,753,319 753,319 4,638,787 638,787 Other her Loca cal l Reven enue ue 8,323,734 323,734 14,317,197 ,317,197 22,640,931 ,640,931 2,354,407 354,407 12,091,012 ,091,012 14,445,419 ,445,419 Tota tal Reven enues ues 132,737,55 2,737,557 7 36,798,246 ,798,246 169,735,80 9,735,803 3 129,889,51 9,889,513 3 40,776,973 ,776,973 170,676,48 0,676,486 6

2014 - 15 LCFF Base Grant Funding: $124,659,618 2013 -14 LCFF Total Funding: ($121,454,736) Increase in Revenue Pass Through to Charter Schools: ($ 1,932,686) Total

• tal Increase

crease in Base se Fun undin ding: $ 1,2 ,272,19 72,196

Major Estimated Base Fund Expenditure Increases: Step & Column: $ 925,083 Consumer Price Index: $ 317,093 STRS/PERS Increase: $ 935,879 Textbook Adoption: $ 3,400,000 Staffing Tamarisk: $ 512,891 Staffing Grade Span Adjustment: $ 991,375 Benefits Increases (New Retirees) $ 450,000 $ 7,532,331 Expenditures Formerly funded by Base moved to Supplemental and Concentration Grant Resource: Assistant Principals ($ 1,540,279) Sheriff’s Department Contract ($ 489,805) ($ 2,030,084) Net Expenditure Increase: $ 5,502 502,2 ,247 47

Estimated Increase in Base Grant Revenue over previous year:

$ 1,272,196

One-Time Funds: Prior Year Excess Costs:

$ 783,464 $ 2,055,660

Increase in Base Grant Expenditures:

$ 5,502,047

Increase in Contribution Due to Elimination of One-Time Revenue:

$ 2,229,503 $ 7,731,550

Increase in Revenues minus Net Increase in Expenditures:

($ 5,675,890)

 Large unfunded liability exists in the

retirement systems for both certificated and classified employees.

 STRS – Employer Contribution Increase

• From 8.25% in 2013-14 to 19.1% in 2020-21

 PERS – Employer Contribution Increase

• From 11.44% in 2013-14 to 20.4% in 2020-21

Proposed STRS Rate Estimated increase in annual cost over 8.25% 2014-15 9.50% $875,574 2015-16 11.1% $2,021,262 2016-17 12.7% $3,195,455 2017-18 14.3% $4,398,687 2018-19 15.9% $5,631,502 2019-20 17.5% $6,894,449 2020-21 19.1% $8,188,090 Proposed PERS Rate Estimated increase in annual costs over 11.442% 2014-15 11.8% $60,305 2015-16 12.6% $214,911 2016-17 15.0% $668,576 2017-18 16.6% $981,343 2018-19 18.2% $1,301,826 2019-20 19.9% $1,649,672 2020-21 20.4% $1,769,033

$- $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 $14,000,000 $16,000,000

Estimated Costs w/ Governor's Proposal Estimated Costs with No Change $6.6 6 million $13 3 million $6.2 2 million $5.7 7 million

$- $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 $4,000,000 $4,500,000

Projected Costs Costs at Current Rate $2.1 1 million $4 million $2.3 3 million

2013-14 Estimated Actuals 2014-15 Budget Certificated Salaries 18,365,538 26,016,522 Classified Salaries 7,036,054 10,562,897 Employee Benefits 10,784,269 12,385,697 Books and Supplies 7,979,898 3,022,891 Services and Other Operating 5,428,143 4,354,867 Capital Outlay 179,950 234,701 Other Outgo 5,417,852 1,118,165 Transfers of Indirect Costs 816,376 461,329 Total Expenditures 56,008,080 58,157,069

Includes LCAP Expenditures: Salaries and Benefits $12,529,303 Books and Supplies $ 1,562,928 Services and Other $ 1,025,178 $15,117,409

17,500 18,000 18,500 19,000 19,500 20,000 20,500

2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17

20,362 20,020 19,606 19,265 18,978 18,726 18,526

Multi-Year Projection Factors

2015-2016 2016-2017 Step and Column Movement 1.25% 1.25% Cost of Living Adjustment to LCFF Target 2.19% 2.10% 2.14% 2.3% LCFF Gap Funding 30.39% 33.95% 19.50% 20.0% Lottery Revenue – Unrestricted $126.00 $126.00 Lottery Revenue – Restricted $ 30.00 $ 30.00 Interest Rate for 10-year Treasuries 3.50% 3.60% Consumer Price Index (CPI) 2.30% 2.50% LCFF Unduplicated % for Supplemental and Concentration Grants 86.71% 86.48% Benefits Soft Cap $17,276 $17,708 STRS Employer Contribution 11.1% 12.7% PERS Employer Contribution 12.6% 15.0%

2014 2014-2015 2015 Budget get 2015 2015-2016 2016 Proje jectio tion 2016 2016-2017 2017 Proje jectio tion REVENUES 24,660,873 29,521,578 LCFF State Revenue 15,671,413 25,699,455 29,620,647 Federal Revenue 11,261,229 11,261,229 11,261,229 Other State Revenue 1,753,319 1,745,901 1,745,901 Other Local Revenue 12,091,012 12,287,579 12,287,579 Other Sources Contributions 17,135,297 20,361,435 21,158,142 TOTAL REVENUES 57,912,270 71,331,294 76,049,193

70,292,712 75,950,124

EXPENDITURES Certificated Salaries 26,016,522 28,184,951 28,537,282 Classified Salaries 10,562,897 11,927,130 12,076,451 Employee Benefits 12,385,697 12,534,784 12,874,590 Books and Supplies 3,022,891 10,281,860 14,327,400 Services, Other Operating Expenses 4,354,867 5,544,946 5,586,390 Capital Outlay 234,701 234,701 234,701 Other Outgo 1,118,165 1,118,165 1,168,165 Indirect Costs 461,329 675,153 624,231 TOTAL EXPENDITURES 58,157,069 70,501,690 75,379,210 Increase/(Decrease) to Fund Balance (244,799) (208,978) 829,604 570,914 669,983

2014 2014-2015 2015 Proje jecte ted Totals als 2015 2015-2016 2016 Proje jectio tion 2016 2016-2017 2017 Proje jectio tion REVENUES 131,155,716 133,928,832 LCFF State Revenue 124,659,638 131,873,662 134,014,803 Federal Revenue Other State Revenue 2,885,468 2,847,141 2,847,141 Other Local Revenue 2,354,407 1,593,748 1,593,748 Other Sources Contributions (17,135,297) (20,281,435) (21,004,943) TOTAL REVENUES 112,764,216 116,003,116 117,450,749

115,285,170 117,364,778

EXPENDITURES Certificated Salaries 52,716,129 52,888,041 53,131,679 Classified Salaries 12,646,418 12,804,498 12,964,554 Employee Benefits 28,853,173 30,636,362 32,566,717 Books and Supplies 5,874,685 4,037,563 5,439,002 Services, Other Operating Expenses 12,318,347 12,667,442 12,964,554 Capital Outlay 17,375 18,003 18,003 Other Outgo 6,810,083 8,526,261 8,526,261 Indirect Costs (840,327) (1,054,151) (1,003,229) TOTAL EXPENDITURES 118,395,883 120,524,019 124,344,966 Increase/(Decrease) to Reserve (5,631,667) (5,238,849) (4,490,903) (6,980,188) (6,894,217)

2014 2014-2015 2015 Budget get 2015 2015-2016 2016 Proje jectio tion 2016 2016-2017 2017 Proje jectio tion 115,315,170 117,364,778 TOTAL REVENUES 112,764,216 116,033,116 117,450,749 TOTAL EXPENDITURES 118,395,883 120,524,019 124,344,966 Increase/(Decrease) to Reserve (5,631,667) (4,490,903) (6,894,217) (5,208,849) (6,980,188) FUND BALANCE 20,683,486 Beginning Fund Balance 31,524,002 25,892,335 21,401,432 Ending Fund Balance 25,892,335 21,401,432 14,507,215 20,683,486 13,703,298

Compone nents nts of Fu Fund nd Balance ce:

Revolving Cash and Stores Inventory 200,000 200,000 200,000 Assigned - Board Designated - 1% 1,765,529 1,910,257 1,992,742 Assigned – LCFF Gap Funding Economic Uncertainties – 3% 5,296,588 5,730,771 5,991,275 Unappropriated Amount 18,630,218 13,560,404 6,323,198 12,842,458 5,519,281 Total : 25,892,335 20,683,486 13,703,298

 Change is happening now  Annual budget process is different  Steps to target continue to be uncertain  Flexibility is important  State Budget Adoption must take place by

June 15