+ MBUSD 2020-21 BUDGET ADOPTION Dr. Murakawa-Leopard June 29, 2020 - PowerPoint PPT Presentation

+ MBUSD 2020-21 BUDGET ADOPTION Dr. Murakawa-Leopard June 29, 2020 Manhattan Beach Unified School District 325 S. Peck Avenue Manhattan Beach, CA 90266 Phone: (310) 318-7345, x5900 Budget Adoption – 6.29.20

2 GROSS DOMESTIC PRODUCT Budget Adoption – 06.29.20

3 RECOVERY FORECASTS Budget Adoption – 06.29.20

4 RECOVERY FORECASTS Budget Adoption – 06.29.20

5 BUDGET COMPONENTS Governor Legislature Budget Act 2.31% with COLA 2.31% 0% 10% deficit factor $1.5B - Special Ed. CARES $1.5B - Special Ed. $1.5B - Special Ed. $2.9B – Conc/Supp Act $2.9B – Concentration $2.9B – LCFF $980M - LCFF $545M Special $645M $545M 3-year average Education 3-year average ADA AB 602 distribution ADA $1.87B June 2020 $1.87B June $1.87B June 2020 $5.28B April-June Deferrals $8.68B Feb-May to $5.28B April-June 2021 2021 Aug-Nov $4.625B Additional Trigger On if Trigger On if federal Trigger Off if federal federal funds not Trigger funds not approved funds approved by Jul 1 approved by by September 1 October 15 Budget Adoption – 06.29.20

6 BUDGET IMPACT Governor Legislature Budget Act COLA ($4,695,723) $731,720 ($12,593) Special $672,351 unknown $540,825 Education CARES $1,901,774 $4,434,310 $3,059,395 Act Deferrals ($2,963,753) ( $3,828,947) ($4,279,953) Trigger On if Trigger On if federal Trigger Off if federal federal funds not Trigger funds not approved funds approved by Jul 1 approved by by September 1 October 15 Budget Adoption – 06.29.20

7 MBUSD 2020-21 BUDGET Included • 0% COLA on LCFF • Special Education base rate enhancement, raising the level to $645/ADA • CalPERS/CalSTRS rate buydown to shift long-term investment to 2020-21 and 2021-22, creating a short- term 2% rate reduction • ESSER allocation • Cash Deferrals Not Included CARES Act funding • Budget Adoption – 06.29.20

8 FLEXIBILITY MEASURES Enacted ADA Hold Harmless • Ability to utilize both in-person and distance learning to • meet instructional day and instructional minutes requirements Increase to inter-fund borrowing limits • Exclusion of on-behalf payments from RRMA calculations • Use of property sale proceeds for one-time general fund • purposes Flexibility Measures Not Included Instructional day/instructional minute waivers • Reduction of RRMA requirements • Flexibility for supplemental/concentration grant funds • Flexibility to sweep ending balances from categorical • programs and restricted funds Budget Adoption – 06.29.20

9 2020-21 BUDGET PROJECTION 0% 0% Budget Adoption – 06.29.20

10 2020-21 BUDGET PROJECTION: REVENUE Other State Revenue $10,144,719 12% Local Revenue $15,214,077 18% LCFF Revenue $56,083,494 67% Federal Revenue $2,251,985 3% Budget Adoption – 06.29.20

11 2020-21 BUDGET PROJECTION: EXPENSE Services Other Outgo/ Indirect $10,701,913 $341,761 13% 0% Supplies $1,702,162 2% Certificated Salary $34,250,499 41% Benefits $22,065,715 26% Classified Salary $14,558,184 18% Budget Adoption – 06.29.20

12 MULTI-YEAR PROJECTION 2019-20 2020-21 2021-22 2022-23 Estimated Adopted Projected Projected Actuals Budget Beg Balance $8,253,454 $6,237,170 $6,311,211 ($1,271,829) Revenues $84,996,391 $83,694,275 $77,092,445 $77,038,488 Expenses ($87,012,675) ($83,620,234) ($84,675,485) ($87,422,253) Net Increase/ ($2,016,284) $74,041 ($7,583,040) ($10,383,765) (Decrease) Ending Bal $6,237,170 $6,311,211 ($1,271,829) ($11,655,594) Undesignated $950,780 $1,135,924 ($3,842,093) ($14,308,261) Ending Bal Projections based on Board approved reductions for 2020-21, with no reductions in 2021-22 or 2022-23. Budget Adoption – 06.29.20

13 MULTI-YEAR PROJECTION 2019-20 2020-21 2021-22 2022-23 Estimated Adopted Projected Projected Actuals Budget Beg Balance $8,253,454 $6,237,170 $6,311,211 $3,748,499 Revenues $84,996,391 $83,694,275 $77,092,445 $77,038,488 Expenses ($87,012,675) ($83,620,234) ($79,655,157) ($78,403,890) Net Increase/ ($2,016,284) $74,041 ($2,562,712) ($1,365,401) (Decrease) Ending Bal $6,237,170 $6,311,211 $3,748,499 $2,383,098 Undesignated $950,780 $1,135,924 $1,328,845 $981 Ending Bal Projections based on Board approved reductions for 2020-21, with reductions equivalent to 44 positions in 2021-22 and 45.6 positions in 2022-23. Budget Adoption – 06.29.20

14 ENDING FUND BALANCE $7,000,000 $6,000,000 Restricted $5,000,000 REU (5%) $4,000,000 REU (3%) Undesignated $3,000,000 $2,000,000 $1,000,000 $- 2019-20 2020-21 2022-23 2021-22 Budget Adoption – 06.29.20

15 POTENTIAL REDUCTIONS – STATE BUDGET S N O I With an August Layoff Window Additional Potential Reductions T C U Additional Assistant Principal(s) Additional Library Resource • • D E Additional Counselors Specialist(s) R • L A • Additional Class Size Increases • PE Assistant(s) Y N R Additional Elementary Music O School Site Clerical • • A I S T Additional Elementary PE District Office Clerical • • S I D E C Additional Reading Specialists Additional Classified Reductions • D • E A N Additional Zero Period • E T T Reductions O A I N D E M (Estimated Savings - $1.7 Million) (Estimated Savings - $700,000) M I Potential total reduction needed: $1.3 Million Budget Adoption – 06.29.20

16 POTENTIAL REDUCTIONS – COVID-19 RELATED Impacted programs: Classroom Support • Extended Day Program • Food and Nutrition Services • Physical Education/Athletics • Playground Support • School Office Support • Budget Adoption – 06.29.20

17 NEXT STEPS • Adopt preliminary budget • Monitor state budget analysis • Explore possible parcel tax measure • Develop re-opening plans and make associated staffing decisions • Present 45-day Revision • Present additional revision(s), if needed • Begin planning for 2021-22 – additional reductions and/or revenue enhancements will be needed Budget Adoption – 06.29.20

+ MBUSD 2020-21 BUDGET ADOPTION Dr. Murakawa-Leopard June 29, 2020 Manhattan Beach Unified School District 325 S. Peck Avenue Manhattan Beach, CA 90266 Phone: (310) 318-7345, x5900 Budget Adoption – 6.29.20