Second Interim Report and Budget Stabilization Plan Thursday, - - PowerPoint PPT Presentation

Second Interim Report and Budget Stabilization Plan

SAN CARLOS SCHOOL DISTRICT

Thursday, February 28, 2019

Agenda

1. Review of 2017-2018 Reports 2. First Interim 2018-2019 3. Budget Certification 4. Timeline 5. Budget Advisory Committee 6. Community Outreach 7. Second Interim 2018-2019 8. Budget Stabilization Plan

2017-2018 Adopted Budget (June 2017)

Year Reserves

2017-2018 9.07% 2018-2019 7.18% 2019-2020 5.19%

2017-2018 First Interim (November 2017)

Year Reserves

2017-2018 9.5% 2018-2019 7.84% 2019-2020 5.31%

2017-2018 Second Interim (February 2018)

Year Reserves

2017-2018 9.49% 2018-2019 11.41% 2019-2020 9.75%

2018-2019 Adopted Budget (June 2018)

Year Reserves

2018-2019 11.06% 2019-2020 9.46% 2020-2021 7.98%

2017-2018 Actuals (Sept. 2018)

• Need Mila to add 2017 Actuals

MYP we used for negotiations

Year Reserves

2018-2019 4.37% 2019-2020

• 0.50%

2020-2021

• 7.02%

2018-2019 First Interim (December 2018)

• Need Mila to add MYP

reflecting the negative reserve levels

Year Reserves

2018-2019 4.35% 2019-2020

• 1.41%

2020-2021

• 7.34%

2018-2019 First Interim (December 2018)

• Need Mila to add MYP

reflecting the negative reserve levels

Year Reserves

2018-2019 4.35% 2019-2020

• 1.41%

2020-2021

• 7.34%

Why Are We Reducing?

• 1. June budget represented adequate reserves
• f 11% and projected enrollment of 3165

students

• 2. Unexpected student enrollment decline of

100 students first week of school, Aug. 2018

• 3. Settled with teachers’ association to maintain

competitive salaries and benefits to attract and retain high quality staff, Sept. 2018

Why Are We Reducing?

• 2017-2018 end fund balance was less than

anticipated as we closed the books

• Governor’s proposed budget does not include

increased funds to keep up with our rising program and labor costs, and unexpected decline of 100 students in current year

• Additional decline of 50 students reducing the

size of district by 150 students total in two years

County Required Reductions

YEAR REDUCTIONS NOTES 2018-2019 $0 Not required but recommended 2019-2020 $2.1 Million Budget Stabilization Plan approved by Board Feb. 28 2020-2021 $350,000 Additional to the $2.1 M

Total Reductions $2,450,000

Budget Certification

• Positive Rating

– Able to pay the bills – Maintain a minimum 4% reserve for the multiyear projection

• Qualified Rating

– Able to pay the bills – Less than a 4% reserve in multiyear projection – Three qualified ratings will result in FCMAT (Fiscal Crisis and Management Assistance Team) intervention

• Negative Rating

– Not able to pay the bills – State takes over control of budget decisions

Budget Timeline

• First Interim Report is filed by December 15

– Basis for budget projections is based on data available through October 31

• Governor’s Proposed Budget

– Administration will share 2019-2020 Budget Plans by early January 2019

• Second Interim Report is filed by March 15

– Includes Governor’s proposal and data through January 31 – Preliminary Notices to Certificated staff by March 15 if needed

• April 29 Notices to Classified Employees
• LCAP Process informs budget development process March - May
• May

– Update in mid-May Governor’s Revised Budget Proposals for 2019-2020

– Final Notices to Certificated staff by May 15

• June Adopted Budget

– Governor’s May Revise Data – Latest Enrollment and Staffing Data

Budget Advisory Committee

• October: learned about the budget process and our challenges
• November: groups suggested possible reductions and ways to increase revenue
• January: School Services of CA Budget Workshop Report and impacts
• February: Draft Budget Stabilization review and input
• Next meetings: March 7, April 18, and May 30 Meetings
• Meeting documents here:

https://www.scsdk8.org/apps/pages/index.jsp?uREC_ID=1136262&type=d&pREC_ID=1603 627

Community Outreach

• Superintendent: Fall and Winter Letters, and PTA Meetings
• Superintendent Community Budget Meetings: Feb. 11-12
• February 15 Board Study Session
• San Mateo Daily Journal Articles
• Budget@scsdk8.org
• Association Meetings
• LCAP Process

Second Interim Report Feb. 2019

Year Reserves Targets

2018- 2019 4.26% 9-12% 2019- 2020 4.79% 6-10% 2020- 2021 5.13% 4-7%

2nd Interim Budget Assumptions

• 1. Current savings identified in operational

expenditures, personnel costs, and position control audit

• 2. Portion of savings assigned to curriculum

adoptions and opening Mariposa 2019-2020

• 3. 2019-2020 Enrollment 3009 students
• 4. No additional funds other than COLA 3.46%

2nd Interim Report Highlights

• Included in draft multi year projection (MYP) is

$2.45 million in required minimum reductions from proposed Budget Stabilization Plan

• Year three assumes no additional decline in

enrollment, 2.86% COLA

• Draft Second Interim Report approval requested

to support Certificated Layoff Resolution

• Final Second Interim Report approval March 14

Summary*: Draft Budget Stabilization Plan 2019-2020

Reductions/Savings Amounts 18-19 Current Year Savings $200,000 19-20 Operations $506,000 19-20 Student Support Programs $270,000 19-20 Instructional Programs $717,000 19-20 Classroom $760,000

Total $2,453,000

Required Reductions for 4% Reserve $2,450,000 Optional Reductions $1,464,000 Possible Revenue Increases (3%) $1,250,000 *Detailed plan available on Board Docs

Recommended Process

• Determine level of reductions
• Section by section review
• Consensus to change a recommendation
• Approve Budget Stabilization Plan and Draft

2nd Interim Budget Report

THANK YOU