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

June 3, 2014

LC LCFF LC LCAP AP Local Control Funding Formula Local Control Accountability Plan  Changes Process of Budget Approval  Budget and LCAP must be presented at a public hearing before adoption  Refinements are possible before adoption

 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 86.95% and Concentration Grants Benefits Soft Cap $16,750

Local Control Funding Formula

2014-15 Budget Assumptions Declining Enrollment 20,362 20,500 20,020 20,000 19,606 Estimated: 19,265 19,500 18,978 19,000 18,500 18,000 2010-11 2011-12 2012-13 2013-14 2014-15

BASE GRANT TARGET: 2014-15 Funded 2013-14 Grade Base Grant Rate Base Grant Line 2013-14 Total Base ADA COLA .85% Span Rate No. Grant 8,336.17 $ 6,952 $ 59 $ 7,011 $ 58,445,636 B-1 K-3 6,128.93 $ 7,056 $ 60 $ 7,116 $ 43,613,298 B-2 4-6 3,683.06 $ 7,266 $ 72 $ 7,328 $ 26,988,551 B-3 7-8 $ 129,047,485 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-1b 2 Year Average Enrollment 19,130 2 Year Average Unduplicated Pupil Count (English Learners, Free or D-2b 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 % of Enrollment Eligible for Concentration Add-on (if D-3<55%, enter 0, D-3 D-5 minus 55%) 31.95% 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) $ 181,578,796 1

2014-2015 LCFF Funding: F-1 Total LCFF Entitlement Target $ 181,578,796 Current Year “Minimum State Aid” G-7 $ 114,910,234 GAP - Difference between Total LCFF Entitlement and Minimum H-1 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 2014-15 Transportation and A-2 TIIG Funding $ 1,368,231 2014-15 Supplemental & Concentration B-1 Grants at Target $ 45,084,734 Prior Year LCFF Funds Spent on Unduplicated Pupils in Addition to What was Expended on All Pupils (minimum EIA Amount plus B-2 amount provided by district on Data Collection Sheet) $4,204,510 Difference (B-1 - B-2, if = 0, go B-3 to B-8b) $40,859,457 Funded Portion of the Increase in Supplemental & Concentration B-4 Grants (B-3 x Gap Funding 28.05%) $ 11,466,903 Total Funding for Unduplicated Pupils (B-2 + B-5 B-4) $ 15,671,413 Current Year LCFF Funding Available to Serve all Students (A-1 - B-6 A-2 - B-5) $ 116,571,122 Proportionality Percentage for Unduplicated Pupils B-7 (B-5/B-6) 13.44%

2014 2014-15 15 13.44% 44% 2013 2013-14 14 3.6% 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 2014-15 Transportation and 2014 - 15 LCFF Total Funding: $133,610,766 A-2 TIIG Funding $ 1,368,231 2014-15 Supp. & Conc. Grants: ($ 15,671,413) 2014-15 Supplemental & Concentration Estimated Base Program Funding: $ 117,969,353 B-1 Grants at Target $ 45,084,734 Prior Year LCFF Funds Spent on Unduplicated Pupils in Addition to What was Expended on All Pupils (minimum EIA Amount plus Base Grant Funding (To Serve All B-2 amount provided by district on Data Collection Sheet) $4,204,510 Students): $116,571,122 Difference (B-1 - B-2, if = 0, go Transportation and TIIG Add-on: $ 1,368,231 B-3 to B-8b) $40,859,457 Estimated Base Program Funding: $ 117,969,353 Funded Portion of the Increase in Supplemental & Concentration B-4 Grants (B-3 x Gap Funding 28.05%) $ 11,466,903 Total Funding for Unduplicated Pupils (B-2 + B-5 B-4) $ 15,671,413 Current Year LCFF Funding Available to Serve all Students (A-1 - B-6 A-2 - B-5) $ 116,571,122 Proportionality Percentage for Unduplicated Pupils B-7 (B-5/B-6) 13.44%

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 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 2014 - 15 LCFF Base Grant Funding: $124,659,618 Reven enue ue 0 0 13,681,723 ,681,723 13,681,723 ,681,723 0 0 11,261,229 ,261,229 11,261,229 ,261,229 2013 -14 LCFF Total Funding: ($121,454,736) Other her State te Increase in Revenue Pass Through Reven enue ue 3,159,087 159,087 8,799,326 799,326 11,958,413 ,958,413 2,885,468 885,468 1,753,319 753,319 4,638,787 638,787 to Charter Schools: ($ 1,932,686) Other her Total otal Increase crease in Base se Fun undin ding: $ 1,2 ,272,19 72,196 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

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 $ 783,464 One-Time Funds: Prior Year Excess Costs: $ 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 Estimated increase in annual Estimated increase in annual Proposed STRS Rate cost over 8.25% Proposed PERS Rate costs over 11.442% 2014-15 9.50% $875,574 2014-15 11.8% $60,305 2015-16 11.1% $2,021,262 2015-16 12.6% $214,911 2016-17 12.7% $3,195,455 2016-17 15.0% $668,576 2017-18 14.3% $4,398,687 2017-18 16.6% $981,343 2018-19 15.9% $5,631,502 2018-19 18.2% $1,301,826 2019-20 17.5% $6,894,449 2019-20 19.9% $1,649,672 2020-21 19.1% $8,188,090 2020-21 20.4% $1,769,033

$13 3 $16,000,000 million $14,000,000 $12,000,000 $10,000,000 $6.6 6 Estimated million $8,000,000 Costs w/ $6,000,000 Governor's $5.7 7 $6.2 2 $4,000,000 million million Proposal $2,000,000 Estimated $- Costs with No Change

$4,500,000 $4 million $4,000,000 $3,500,000 $3,000,000 $2.3 3 million $2,500,000 Projected $2,000,000 $2.1 1 million Costs $1,500,000 $1,000,000 $500,000 Costs at $- Current Rate

2013-14 2014-15 Estimated Actuals Budget Certificated Salaries 18,365,538 26,016,522 Includes LCAP Expenditures: Classified Salaries 7,036,054 10,562,897 Salaries and Benefits $12,529,303 Books and Supplies $ 1,562,928 Employee Benefits 10,784,269 12,385,697 Services and Other $ 1,025,178 Books and Supplies 7,979,898 3,022,891 $15,117,409 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

20,362 20,500 20,020 20,000 19,606 19,265 19,500 18,978 18,726 19,000 18,526 18,500 18,000 17,500 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17