PALMDALE SCHOOL DISTRICT 2016-17 PROPOSED BUDGET & 2016-17 - PowerPoint PPT Presentation

PALMDALE SCHOOL DISTRICT 2016-17 PROPOSED BUDGET & 2016-17 GOVERNOR’S BUDGET PROPOSAL JUNE 7, 2016

2016-17 GOVERNOR’S BUDGET PROPOSAL MAY REVISION

2016- 17 GOVERNOR’S BUDGET PROPOSAL MAY REVISION  Education funding continues to be a major driver in the 2016-17 Proposed State Budget.  $51.4 Billion state spending in K-12  We are ahead of schedule for implementation of LCFF receiving 95.7% of target in 2016-17  Rainy Day Fund/Proposition 30/EPA funds expire soon. Reserve requirements - LCFF GAP funding.

2016- 17 GOVERNOR’S BUDGET PROPOSAL MAY REVISION  State tax revenue reduced by $1.9 Billion  $4 Billion state deficit projection by 2019-20 if Prop 30 does not pass.  $50 Billion state deficit projection by 2019-20 if a recession occurs.

OVERVIEW PROPOSITION 98: 2016-17 STATE BUDGET KEY ELEMENTS FOR K-12 Finance Proposal Purpose Implications $2.9 Billion-Investing in Further implement LCFF - Increase +$673.87 per ADA Education Gap funding to 54.84% $1.6 billion-Early Education Consolidating Preschool Programs and Not New-Received in Block Grant funding sources 2015-16 $1.4 Billion-One-time Unrestricted Funds – Offset PY +$237 per ADA discretionary funding outstanding mandate reimbursement claims $100 Million - Emergency To provide temp. funds to districts to Loan amount approved Repair Loan Program address emergency facilities needs $398.8 Million - K-12 Clean Prop 39 further implementation Not New-Received in Energy Jobs Act 2015-16 $167.1 Million-Statewide Facility Projects – However, $1 Billion short. Facilities Bond NOTE: We will have a K-14 School Facility $9 Billion Bond in Nov 16 Ballot

PALMDALE SCHOOL DISTRICT 2016-17 PROPOSED BUDGET

SPECIAL REPORTS:  2016-17 EDUCATION PROTECTION ACCOUNT (EPA)  2016-17 RESERVE DISCLOSURE  2016-17 LCFF-SUPPLEMENTAL AND CONCENTRATION GRANT MINIMUM PROPORTIONALITY PERCENTAGE (MPP)

EDUCATION PROTECTION ACCOUNT(EPA) The following information is provided in accordance with Proposition 30- California Constitution Article XIII, Section 36:  On June 21,2016, the Governing Board of the Palmdale School District will approve a Resolution Regarding the Education Protection Account for Fiscal Year 2016-2017, to expend EPA funds to support teacher salaries and benefits.  The 2016-2017 EPA budgeted revenue expenditures are shown below:  Palmdale School District 2016-2017 EPA Projected Entitlement is $24,348,997.00 Object Expenditures: Codes Amount Certificated Salaries1000-1999 16,921,646.76 Object STRS Contributions 3111 1,834,306.47 Revenue: Codes Amount Medicare Contributions 3331 245,363.87 Revenue Limit Health & Welfare Benefits 3411 8,460.82 Sources 8012 $24,348,997.00 State Unemployment 3511 521,186.71 TOTAL Worker's Comp Insurance 3611 571,951.65 REVENUE $24,348,997.00 OPEB Contributions 3711/3751 4,246,080.71 Instructional Supplies 4310 0 Transfers Out (to Charter Schools) 7299 0 TOTAL EXPENDITURES $24,348,997.00

2016-2017 RESERVE DISCLOSURE The following information is provided in accordance with Education Code Section 42127(a)(2)(B) regulations: Table #1: UNRESTRICTED GENERAL FUND (01) Fiscal Year Total SBE Reserve above Assigned Unassigned Reserve Required SBE Minimum Balance Above Bal. Above Minimum Minimum Minimum Reserve 3% Reserve Reserve 2016-2017 $42,327,439 $6,498,992 $35,828,447 $10,540,951 $25,287,496 2017-2018 $34,161,687 $6,546,287 $27,615,400 $26,429,562 $1,185,838 2018-2019 $21,651,500 $6,677,598 $14,973,902 $14,918,912 $54,990 Table #2:RESTRICTED GENERAL FUND (01) Fund balance for restricted sources must be reserved to use in restricted qualified expenditures only Description 2016-17 2017-18 2018-19 Reserved - Restricted EFB $17,670,114 $23,649,779 $31,323,172 Object 9740

2016-2017 RESERVE-ASSIGNED BALANCE ABOVE MINIMUM RESERVE GENERAL FUND UNRESTRICTED Description 2016-17 2017-18 2018-19 Revolving Cash 100,000 100,000 100,000 Stores 100,000 100,000 100,000 Other Assignment-One time funds-(Technology) 8,174,620 8,174,620 8,174,620 GAP Funding Assignment Set Aside 0 15,873,042 4,318,256 Assigned Board Reserve 2,166,331 2,181,900 2,226,036 Total Reserve assigned above minimum reserve $ 10,540,951 $ 26,429,562 $ 14,918,912

LCFF Base Funds GAP funding LCFF Target LCFF Target GAP GAP funded: 16-17 54.84% LCFF GAP funding Base Grant 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21

2016-2017 LCFF-SUPPLEMENTAL AND CONCENTRATION GRANT - MINIMUM PROPORTIONALITY PERCENTAGE (MPP) 30.9+7.6 = $38.5 Target: $183.2 M Base $4.7 M Funding: $173 M T otal GAP S/C $7.6 M Floor:160.7 M $22.5 M NOTE: Due $183.2 Target LCFF S/C to time -$160.7 Floor constraints LCFF S/C LCFF S/C $ 22.5 Gap to prepare LCAP $ 22.5 Gap reports, the current x 54.84% Gap % allocation in $12.3 Increase Floor S/C is 38 M, $160.7 M this will be $44.8 S/C Target revised at -$30.9 S/C 16-17 the 45 day $13.9 Net Gap Budget review LCFF Base LCFF Base LCFF Base $ 13.9 Net Gap x54.84% Gap % $ 7.6 S/C Share

20,500 20,095 ENROLLMENT AT CBEDS 20,000 19,591 19,500 19,281 19,247 19,168 19,015 18,862 19,000 18,709 18,500 18,000 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 CBEDS Adopted Budget

19,500 19,354 19,165 19,000 18,781 18,681 18,450 18,500 18,420 18,395 18,300 18,288 18,220 18,064 17,919 18,000 17,774 17,500 17,000 16,500 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 P1 ADA P2 ADA

Summary Fund 01.0-01.4 Restricted and Unrestricted

Other Local Other State 7% 6% Federal 6% LCFF 81% Description Amount LCFF $173,137,021 LCFF Federal Other State Other Local Federal $12,566,923 Other State $13,433,045 Other Local $15,339,472 Total $214,476,461

Summary Fund 01.0-01.4 Restricted and Unrestricted

Main salary changes as a result of 2015-16 CSEA and PETA contract negotiation:  4% salary increase in 2015-2016 for CSEA members and leadership team.  6% salary increase in 2015-2016 for certain PETA members as detailed in 2015-2016 bargaining agreement.  7.8% salary increase in 2016-2017 for certain PETA members as detailed in 2015-2016 bargaining agreement.  Additional salary increase for certificated leadership team in 2016-2017 as a result of compensation study.  PETA-Stipend modernization as a percent of salary schedule A1. PERS and STRS changes: 2015-2016 2016-2017 2017-2018 2018-2019 2019-2020 CalPERS 11.847% 13.888% 15.50% 17.10% 18.60% CalSTRS 10.73% 12.58% 14.43% 16.28% 18.13%

2015-16 2016-17 Description Resource Budget Amount Budget Amount - 87,872 IDEA -Special Ed 33100.0 8,289 5,814 IDEA -Special Ed 33150.0 46,759 24,466 IDEA -Special Ed 33200.0 - 355,410 Medi-Cal -Special Ed/Health Services 56400.0 9,386 7,500 Other -Special Ed 58150.0 65000.0 & 17,341,796 19,900,000 Special Ed General 65120.0 5,805,775 7,979,514 3% Routine Restricted Maintenance 81500.0 LCFF Supplemental & Concentr. Grant (LCAP) 90001.0, 30,934,810 38,017,418 Resource # 90001.0,90002.0, & 90003.0 2.0 & 3.0 151,000 - Fund 12: 2015-16 Barg Agreement Cost Jul-Dec 90100.0 54,297,815 66,377,994 Total Projected Contributions 00000.0

Contribution to Spec Ed & RRMT in Million 15-16 Revenue: $17.4 million 15-16 Revenue: $0 25 20.3 20 17.4 15 12.3 7.9 10 5.8 2.6 5 0 Spec.Ed.Prg RRMT 2014-15 2015-16 2016-17

Capital Outlay Svcs & Oper. 1% Exp. Other 11% 0% T extbooks & Supplies 6% Certificated Salaries Benefits 43% 26% Classified Salaries 12% Description Amount Cert. Salaries $94,339,868.00 Class. Salaries $27,606,781.00 Benefits $56,025,008.52 Textbooks & Supplies $12,401,055.00 Svcs & Oper. Exp. $25,175,975.00 Capital Outlay $1,334,895.00 * Includes Indirect cost charge to Other Other * $(250,525.00) Funds. Total Expenditures $216,633,057.52

Summary Fund 01.0-01.4 Restricted and Unrestricted

CHANGES TO MULTI-YEAR PROJECTION FACTORS 2017-18 2018-19 Step and Column Movement 1.25% ---$1,524,333 1.25%---$1,543,387 Benefits Increase 2.26%---$2,802,280 2.26%---$2,870,178 Cost of Living Adjustment to LCFF 1.11% 2.42% Target LCFF Gap Funding 73.96% 41.22% Lottery Revenue – Unrestricted $140.00 $140.00 Lottery Revenue – Restricted $ 41.00 $ 41.00 Interest Rate for 10-year Treasuries 2.43% 2.58% Consumer Price Index (CPI) 2.26% 2.49% LCFF Unduplicated % for 86% 86% Supplemental and Concentration Grants

200,000,000 Changes Other Changes Fed State Rev 180,000,000 Rev Projection: Projection: Proposal list 160,000,000 Proposal list + 0.93% + 4.27% $10.3 Million in 140,000,000 $6.1 Million in 17-18 &18-19 17-18 &18-19 120,000,000 100,000,000 80,000,000 17-18: -1.23% 17-18: -42.47% 17-18: 0% 60,000,000 18-19: +0.90% 18-19: -0.34 % 18-19: 0% 40,000,000 20,000,000 0 LCFF Federal Other State Other Local LCFF Federal Other State Other Local 2016-17 173,137,021 12,566,923 13,433,045 15,339,472 2017-18 180,523,446 12,412,971 7,728,060 15,339,472 2018-19 182,201,046 12,524,748 7,701,542 15,339,472