June 6, 2017 Dramatically Improve LCAP Goal 1 Student High Level - - PowerPoint PPT Presentation

June 6, 2017

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

16,500 17,000 17,500 18,000 18,500 19,000 19,500 20,000 20,500 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20

20,095 19,591 19,281 19,247 19,072 19,129 18,564 18,078 17,838

ENROLLMENT AT CBEDS

+ 57

• 565
• 486
• 239

15,500 16,000 16,500 17,000 17,500 18,000 18,500 19,000 19,500 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 19,165 18,781 18,420 18,395 18,300 18,233 19,354 … 18,450 18,288 18,233 18,167 17,629 17,165 16,937 P1 ADA P2 ADA +0

• 538
• 464

• Minimum Wage Not Included: California’s minimum wage (currently at

$10.50/hour) increasing schedule of $1 annual increase until January 2022 when it reaches $15.00/hour is pending to be included at the 2016-17 unaudited actuals or 2017-18 First Interim report.

• Actuarial Liability Not Included: GASB 43/45/75 requires public employers

such as the District to perform periodic actuarial valuations to measure and disclose their retiree healthcare liabilities for the financial statements of both the employer and the trust, if any, set aside to pre-fund these liabilities. The most recent actuarial indicated the district liability is $164 million as of June 30, 2016.

• Retirement Unfunded Liability Not Included: California school districts face

sharply rising employer contribution rates for both the State Teacher’s Retirement System (STRS) and the Public Employee Retirement System (PERS). Although the increases are currently projected to rise through 2024-25, the budget includes the increases for 2017-18, 2018-19, and 2019-20 only.

5

0.000% 5.000% 10.000% 15.000% 20.000% 25.000% 1 2 3 4 5 6 7 8

Percentage Increase

PERS Rate STRS Rate

2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 STRS Rate

8.250% 8.880% 10.730% 12.580% 14.430% 16.280% 18.13% 19.10%

Increase in STRS Cost

(165,342) 867,885 2,004,805 3,025,088 1,692,331 1,692,331 1,692,331 887,331

PERS Rate

11.442% 11.771% 11.847% 13.888% 15.531% 18.100% 20.80% 23.80%

Increase in PERS Cost

75,352 285,415 466,217 1,033,115 445,552 696,666 732,191 813,545

Annual Increase

(89,990) 1,153,300 2,471,022 4,058,203 2,137,883 2,388,997 2,424,522 1,700,876

STRS Total Amount

5,610,076 6,477,961 8,482,766 11,507,854 13,200,185 14,892,517 16,584,848 17,472,179

PERS Total Amount

1,981,425 2,266,840 2,733,057 3,766,172 4,211,723 4,908,389 5,640,580 6,454,125 Annual Increase 7,591,501 8,744,801 11,215,823 15,274,026 17,411,909 19,800,906 22,225,428 23,926,304

6

• 2,000,000

4,000,000 6,000,000 8,000,000 10,000,000 12,000,000 14,000,000 16,000,000 18,000,000 20,000,000 1 2 3 4 5 6 7 8 STRS Cost PERS Cost

13-14 14-15 15-16 16-17 17-18 18-19 19-20 20-21 13-14 14-15 15-16 16-17 17-18 18-19 19-20 20-21

SPECIAL REPORT - EDUCATION PROTECTION ACCOUNT(EPA)

The following information is provided in accordance with Proposition 30 (replaced by Proposition 55) California Constitution Article XIII, Section 36:

• On June 20, 2017, the Governing Board of the Palmdale School District will approve a

Resolution Regarding the Education Protection Account for Fiscal Year 2017-2018, to expend EPA funds to support teacher salaries and benefits.

• The 2017-2018 EPA budgeted revenue expenditures are shown below:
• Palmdale School District 2017-18 EPA Projected Entitlement is $21,999,820

Expenditures: Object Codes Amount Certificated Salaries 1000-1999 15,172,972.00 STRS Contributions 3111 2,188,829.00 Medicare Contributions 3331 178,229.00 Health & Welfare Benefits 3411 3,219,504.00 State Unemployment 3511 7,592.00 Worker's Comp Insurance 3611 409,683 OPEB Contributions 3711/3751 823,011 TOTAL EXPENDITURES $21,999,820

Revenue: Object Codes Amount LCFF 8012 $21,999,820 TOTAL EPA REVENUE $21,999,820

7

2017-2018 RESERVE DISCLOSURE

Table #1: UNRESTRICTED GENERAL FUND (01)

Fiscal Year Total Reserve SBE Required Minimum Reserve Reserve above SBE Minimum Assigned Balance Above Minimum Reserve Unassigned Balance Above Minimum Reserve 2017-2018 $42,664,971 $7,015,448 $35,649,523 $2,538,483 $33,111,041 2018-2019 $32,464,101 $6,946,483 $25,517,618 $4,675,593 $20,842,025 2019-2020 $10,588,118 $7,305,514 $3,282,604 $2,660,902 $621,702

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

Table #2:RESTRICTED GENERAL FUND (01)

Fund balance for restricted sources must be reserved to use in restricted qualified expenditures only

Description 2017-2018 2018-2019 2019-2020 Reserved - Restricted EFB Object 9740 $11,076,694 $7,715,806 $64,224

8

2017-18 RESERVE-ASSIGNED BALANCE ABOVE MINIMUM RESERVE GENERAL FUND UNRESTRICTED

Description 2017-18 2018-19 2019-20 Revolving Cash 100,000 100,000 100,000 Stores 100,000 100,000 100,000 GAP Funding Assignment Set Aside 2,160,099 25,731 Assigned Board Reserve 2,338,483 2,315,494 2,435,171 Total Reserve assigned above minimum reserve 2,538,483 4,675,593 2,660,902

9

10

2016-17 Second Interim report 2017-18 Budget 2017-18 Budget vs 2016-17 2nd Interim 2016-17 Estimated Actuals 2016-17 Estimated Actuals Changes (+/- Increases/Decrease) Unrestricted Restricted Combined Unrestricted Restricted Combined Unrestricted Restricted Combined Revenue LCFF 174,751,001 0 174,751,001 176,431,801 0 176,431,801 1,680,800 1,680,800 Federal Revenue 0 16,184,913 16,184,913 0 13,667,655 13,667,655 (2,517,258) (2,517,258) State Revenue 7,469,280 7,892,949 15,362,229 7,459,284 7,851,892 15,311,176 (9,996) (41,057) (51,053) Local Revenue 2,269,712 14,515,320 16,785,032 2,520,318 15,003,875 17,524,194 250,606 488,555 739,162 Total Revenue 184,489,993 38,593,182 223,083,175 186,411,404 36,523,422 222,934,826 1,921,411 (2,069,759) (148,349) Expenditures Certificated Salaries 55,179,859 38,815,439 93,995,298 54,825,289 36,586,726 91,412,015 (354,571) (2,228,712) (2,583,283) Classified Salaries 13,608,309 14,108,110 27,716,419 13,206,370 13,174,643 26,381,013 (401,939) (933,467) (1,335,406) Benefits 31,065,939 24,859,432 55,925,371 29,769,512 22,987,800 52,757,312 (1,296,427) (1,871,632) (3,168,059) Books and Supplies 9,634,273 11,038,642 20,672,916 12,331,893 7,511,825 19,843,718 2,697,620 (3,526,818) (829,198) Other Services &

• Oper. Expenses

16,744,128 15,156,137 31,900,265 15,898,528 11,906,584 27,805,112 (845,599) (3,249,553) (4,095,152) Capital Outlay 61,200 1,323,340 1,384,540 60,526 242,467 302,993 (674) (1,080,873) (1,081,547) Other Outgo 7xxx 315,228 170,000 485,228 397,447 204,575 602,022 82,219 34,575 116,794 Transfer of Indirect 73 (1,770,049) 617,803 (1,152,246) (1,816,009) 560,190 (1,255,819) (45,960) (57,613) (103,573) Total Expenditures 124,838,887 106,088,903 230,927,790 124,673,556 93,174,809 217,848,365 (165,331) (12,914,094) (13,079,425)

11

LCFF 79% Federal Revenue 6% State Revenue 7% Local Revenue 8%

General Fund Revenue

Certificated Salaries 39% Classified Salaries 14% Benefits 25% Books and Supplies 8% Other Services & Oper. Expenses 13% Capital Outlay 0% Other Outgo 7xxx 0% Transfer of Indirect 73xx 1%

General Fund Expenditures

12

2016-17 Second Interim report 2017-18 Budget 2017-18 Budget vs 2016-17 2nd Interim 2016-17 Estimated Actuals 2016-17 Estimated Actuals Changes (+/- Increases/Decrease) Unrestricted Restricted Combined Unrestricted Restricted Combined Unrestricted Restricted Combined Total Revenue 184,489,993 38,593,182 223,083,175 186,411,404 36,523,422 222,934,826 1,921,411 (2,069,759) (148,349) Total Expenditures 124,838,887 106,088,903 230,927,790 124,673,556 93,174,809 217,848,365 (165,331)(12,914,094) (13,079,425) Deficit/Surplus 59,651,106 (67,495,721) (7,844,615) 61,737,848 (56,651,387) 5,086,461 2,086,742 10,844,334 12,931,077

Other Sources/(uses) Transfers in/(out) Contributions to Restricted (56,682,740) 56,682,740 (57,059,959) 57,059,959 (377,219) 377,219 Net increase (decrease) in Fund Balance 2,968,366 (10,812,981) (7,844,615) 4,677,889 408,572 5,086,461 1,709,523 11,221,553 12,931,077 Beginning Balance 49,572,134 15,889,066 65,461,200 49,572,134 15,889,066 65,461,200 Ending Fund Balance Prior to Assignments 52,540,500 5,076,085 57,616,585 54,250,023 16,297,638 70,547,661 1,709,523 11,221,553 12,931,077

13

2016-17 Second Interim report 2017-18 Budget 2017-18 Budget vs 2016-17 2nd Interim 2016-17 Estimated Actuals 2016-17 Estimated Actuals Changes (+/- Increases/Decrease) Unrestricted Restricted Combined Unrestricted Restricted Combined Unrestricted Restricted Combined

Ending Fund Balance 52,540,500 5,076,085 57,616,585 54,250,023 16,297,638 70,547,661 1,709,523 11,221,553 12,931,077 Revolving/Stores/Pre paids 200,000 200,000 200,000 200,000 Board Reserve (1%) 2,309,278 2,309,278 2,178,474 2,178,474 (130,804) (130,804) Reserve for Econ Uncertainty (3%) 6,927,834 6,927,834 6,535,451 6,535,451 (392,383) (392,383) Other EFB Assignment 26,778,129 0 26,778,129 (26,778,129) 0 (26,778,129) Restricted Programs 5,076,085 5,076,085 0 16,297,638 16,297,638 0 11,221,553 11,221,553 Unappropriated Fund Balance 16,325,259 0 16,325,259 45,336,098 45,336,098 29,010,839 29,010,839 Unappropriated % 7.3% 20.3%

14

2016-17 EFB Changes

Change in Fund Balance Deficit/Surplus @ Second Interim Unrestricted Restricted Fallout (7,844,615) Revenue Changes: LCFF PY Adjustmt. & Supp. and Concen. additional funding 1,680,800 1,680,800 Federal Revenue Categorical Funds Carryover (2,517,258) (2,517,258) State Revenue One Time Funding (9,996) (41,057) (51,053) Local Revenue One Time Local Funding & Sp.Ed. 250,606 488,555 739,162 Total Revenue Change 1,921,411 (2,069,759) (148,349) (148,349) Total Revenue Change Expenditure Changes: Certificated Salaries *Positions not filed & personnel attrition (354,571) (2,228,712) (2,583,283) Classified Salaries *Same above (401,939) (933,467) (1,335,406) Benefits *Same above (1,296,427) (1,871,632) (3,168,059) Books and Supplies Decrease in Textbook Cost 2,697,620 (3,526,818) (829,198) Other Services & Oper. Expenses Decrease in agreements, Conference, and operational cost (845,599) (3,249,553) (4,095,152) Capital Outlay Decrease in Capital Outlay (Bus)-LCAP (674) (1,080,873) (1,081,547) Other Outgo 7xxx Other 82,219 34,575 116,794 Transfer of Indirect 73xx Correct IC charge to restrict funds (45,960) (57,613) (103,573) Total Expenditure Change (165,331) (12,914,094)(13,079,425) (13,079,425) Revised Deficit/Surplus @ Budget Adoption (Fallout) NOTE: 99% of the Changes in Restricted Resources 5,086,461

15

Resource Resource Title Restricted (R) / Unrestricted (U) Amount Comment 00000.0-06264.0 Unrestricted (Including Technology Upgrade) U 4,677,889.16 $5.3 Million pending to be spent in 2017-18 for Technology Upgrade 11000.0 Lottery U (0.02) 14000.0 Education Protection Account U (0.06) 30100.0 Title I R (0.05) 31800.0 SIG Grant R 0.01 33100.0-33850.0 Special Ed Resources R 0.01 40350.0 Title II R 0.01 42030.0 Title III R (0.01) 56400.0 SMAA R (459,896.60) 58150.0 Other Fed-Gear Up R (0.01) 62300.0 CA Clean Energy Jobs Act (Prop 39) R 1,188,217.00 62640.0 Educator Effectiveness Grant R (508,217.34) 63000.0 Lottery R (2,338,408.03) 65000.0-65120.0 Special Ed Resources R 2,829,071.74 81500.0 RRMA R (0.01) 90000.0-90003.8 LCAP R (212,814.87) 90110.0 Microsoft CA Settlement R 41,991.97 90150.0 Community Redevelopment R (226,914.07) 90200.0 Wellness R 44,591.44 91200.0 Other Local Ed Foundation (SAVE) R 2,521.62 91500.0 OthrLocal-ImmunizationPrtrnshp R 38.00 95000.0 School Local Restricted R 48,391.52 Total 5,086,461.41

LCFF Increasing Funding Implementation

16

• 30,000,000
• 25,000,000
• 20,000,000
• 15,000,000
• 10,000,000
• 5,000,000

5,000,000 10,000,000 15,000,000 20,000,000 11-12 12-13 13-14 14-15 15-16 16-17 17-18 18-19 19-20

• 8,661,275
• 1,809,199

10,662,349 7,559,755 19,189,620 5,086,461

• 16,805,995
• 13,561,758
• 29,527,565

Actuals Estimated Actuals MYP Projection Budget Cuts

LCFF Reaching Target - Level Revenue

*NOTE: This financial projection is based on variable assumptions and actual data. If any of the assumptions change, the final outcome will change.

Summ mmar ary Fund d 01.0-01 01.4 .4 Restr tric icte ted d and Unrest stricte ricted

2016-17 2017-18 2018-19 2019-20 Step and Column Movement 1.25% 1.25% 1.25% 1.25% Cost of Living Adjustment to LCFF Target 0.0% 1.56% 2.15% 2.35% LCFF Gap Funding 55.28% 43.97% 71.53% 73.51% Lottery Revenue – Unrestricted $144.00 $144.00 $144.00 $144.00 Lottery Revenue – Restricted $ 45.00 $ 45.00 $ 45.00 $ 45.00 Interest Rate for 10-Year Treasuries 1.76% 2.67% 2.90% 3.05% Consumer Price Index (CPI) 2.26% 3.11% 3.19% 2.86% STRS 12.58% 14.43% 16.28% 18.13% PERS 13.888% 15.531% 18.10% 20.80%

CHANGES TO MULTI-YEAR PROJECTION FACTORS

Program 2017-18 2018-19 2019-20 Special Ed Programs (Resr. 33100.0-65120.0) $17,912,272 $18,297,386 $18,831,670 RRMA (Resr. 81500.0)* $4,500,000 $7,043,233 $7,607,926 LCAP (S&C Grant)** $41,646,913 $45,484,646 $47,234,081 Total $64,059,185 $70,825,264 $73,673,677

*Routine Restricted Maintenance Account: The Budget Report reflects an increase in the contribution from the unrestricted general fund to RRMA for FY2017-18 to match 2% of the total general fund budget and 3% for 2018-19 and 2019-20. This is required for the district to qualify for Prop 51 funding. **Local Control Accountability Plan: Contribution is calculated using Minimum Proportionality Table included in the FCMAT calculator.

20

2017-18 Proposed Budget 2018-19 Projected Budget 2019-20 Projected Budget Unrestricted Restricted Combined Unrestricted Restricted Combined Unrestricted Restricted Combined Revenue LCFF 177,090,691

• 177,090,691

179,250,790

• 179,250,790

179,276,521

• 179,276,521

Federal Revenue

• 15,719,611 15,719,611
• 14,791,257

14,791,257

• 14,436,189

14,436,189 State Revenue 3,222,863 4,507,143 7,730,006 3,137,712 4,485,318 7,623,030 3,090,264 4,484,909 7,575,173 Local Revenue 1,936,215 14,565,740 16,501,955 1,601,808 14,720,790 16,322,598 1,601,808 11,099,861 12,701,669 Total Revenue 182,249,769 34,792,494 217,042,263 183,990,310 33,997,365 217,987,675 183,968,593 30,020,959 213,989,552 Expenditures Certificated Salaries 53,482,818 38,193,266 91,676,084 53,415,771 38,625,195 92,040,966 54,083,468 39,014,130 93,097,598 Classified Salaries 13,081,559 15,177,078 28,258,637 13,245,078 15,355,888 28,600,966 13,410,641 15,525,335 28,935,976 Benefits 30,926,206 27,644,805 58,571,011 32,754,390 29,321,456 62,075,846 34,850,124 31,012,561 65,862,685 Books and Supplies 10,492,273 10,070,469 20,562,742 10,491,832 11,752,749 22,244,581 15,982,898 12,588,091 28,570,989 Other Services & Oper. Expenses 16,460,691 10,992,428 27,453,119 15,386,342 11,078,779 26,465,121 15,826,391 11,116,105 26,942,496 Capital Outlay 7,245,007 802,963 8,047,970 46,443 828,578 875,021 47,771 852,275 900,046 Other Outgo 7xxx 315,228

• 315,228

325,284

• 325,284

334,587

• 334,587

Transfer of Indirect 73 (2,228,146) 1,191,613 (1,036,533) (2,299,224) 1,220,872 (1,078,352) (2,364,982) 1,237,722 (1,127,260) Total Expenditures 129,775,636 104,072,622 233,848,258 123,365,916 108,183,517 231,549,433 132,170,898 111,346,219 243,517,117

21

2017-18 Proposed Budget 2018-19 Projected Budget 2019-20 Projected Budget Unrestricted Restricted Combined Unrestricted Restricted Combined Unrestricted Restricted Combined Total Revenue 182,249,769 34,792,494 217,042,263 183,990,310 33,997,365 217,987,675 183,968,593 30,020,959 213,989,552 Total Expenditures 129,775,636 104,072,622 233,848,258 123,365,916 108,183,517 231,549,433 132,170,898 111,346,219 243,517,117 Deficit/Surplus 52,474,133 (69,280,128) (16,805,995) 60,624,394 (74,186,152) (13,561,758) 51,797,695 (81,325,260) (29,527,565) Other Sources/(uses) Transfers in/(out) Contributions to Restricted (64,059,185) 64,059,185 0 (70,825,264) 70,825,264 (73,673,677) 73,673,677 Net increase (decrease) in Fund Balance (11,585,052) (5,220,943) (16,805,995) (10,200,870) (3,360,888) (13,561,758) (21,875,982) (7,651,583) (29,527,565) Beginning Balance 54,250,023 16,297,638 70,547,661 42,664,971 11,076,695 53,741,666 32,464,101 7,715,807 40,179,908 Ending Fund Balance Prior to Assignments 42,664,971 11,076,695 53,741,666 32,464,101 7,715,807 40,179,908 10,588,119 64,224 10,652,343

22

2017-18 Proposed Budget 2018-19 Projected Budget 2019-20 Projected Budget Unrestricted Restricted Combined Unrestricted Restricted Combined Unrestricted Restricted Combined

Ending Fund Balance 42,664,971 11,076,695 53,741,666 32,464,101 7,715,807 40,179,908 10,588,119 64,224 10,652,343 Revolving/Stores/Pre paids 200,000

200,000

200,000

200,000

200,000

200,000

Board Reserve (1%) 2,338,483

2,338,483

2,315,494

2,315,494

2,435,171

2,435,171

Reserve for Econ Uncertainty (3%) 7,015,448

7,015,448

6,946,483

6,946,483

7,305,514

7,305,514

LCFF GAP Reserve 2,160,099

2,160,099

25,731

25,731

Restricted Programs 0 11,076,695 11,076,695 7,715,807

7,715,807

64,224

64,224

Unappropriated Fund Balance 33,111,040 0 33,111,040 20,842,025 20,842,025 621,703 621,703 Unappropriated % 15.26% 9.56% 0.29%

20,000,000 40,000,000 60,000,000 80,000,000 100,000,000 120,000,000 140,000,000 160,000,000 180,000,000 LCFF Federal Revenue State Revenue Local Revenue 2016-17 176,431,801 13,667,655 15,311,176 17,524,194 2017-18 177,090,691 15,719,611 7,730,006 16,501,955 2018-19 179,250,790 14,791,257 7,623,030 16,322,598 2019-20 179,276,521 14,436,189 7,575,173 12,701,669

+ 1.22%

17-18: 15% 18-19: -5.91% 19-20: -2.40% 17-18: -49.50% 18-19: -1.38% 19-20: -0.63 % 17-18: -5.8% 18-19: -1.09% 19-20: -22.18%

+ 0.01%

Years 2 & 3 Changes:

• Removed carryover
• Removed one-time revenue
• Included projected decline in ADA
• Included other variables

+0.4%

• 10000000

10000000 20000000 30000000 40000000 50000000 60000000 70000000 80000000 90000000 100000000 2016-17 2017-18 2018-19 2019-20 Certificated Salaries Classified Salaries Benefits Books and Supplies Other Services & Oper. Expenses Capital Outlay Other Outgo 7xxx Transfer of Indirect 73

39.20% 39.75% 38.23% 26.81% 27.05% 11.43% 11.06% 11.74% 25.05% 41.96% 12.76% 24.21%

LOOKING FORWARD

• CHANGE CONTINUES
• E.G., ENROLLMENT & ADA
• STAFFING
• PERS/STRS RATE INCREASES
• PROP 51-FACILITIES FUND
• ONE-TIME FUNDING
• STEPS TO LCFF TARGET ARE UNCERTAIN
• CONSERVATIVE SPENDING