Spring Foundations Summit Working Together to Build Private Support - - PowerPoint PPT Presentation

Spring Foundations Summit

Working Together to Build Private Support for Public Education

March 25, 2019

1

Welcome and Introductions

Overview of Agenda

• General Session
• District Budget Update
• Professional Growth (Guest Speaker, Richard Marks)
• How to Create a Dynamic Fundraising Team
• Small Group Learning
• Discuss New Strategies
• Closing (no later than 8 PM)

3

Budget Update:

Budget Overview

and Forecast

Work of the

District’s Budget Advisory Committee

Implications for

Fundraising With Associate Superintendent, Ron Little

Poway Unified School District

Governor’s 2019-2020 Budget Proposal

Ron Little, Associate Superintendent March 25, 2019 Presented to: Foundation Presidents

• California’s Current Economic Trends
• Governor’s January Budget Proposal for 2019-20
• Impacts to Poway Unified School District

Agenda

6

• Low Unemployment Rates
• 4.1% (December 2018) down from 12.2% (Fall 2010)
• 12% of US population, but has contributed nearly 20% of total job growth over the past

decade

• Slowing Job Growth
• Robust General Fund Revenues
• Personal Income Tax (PIT) - Real Personal Income Growth up 3.6%
• Sales and Use Tax exceed projections
• Continued Economic Growth
• Currently 5th largest economy in the world
• 10 years of sustained economic growth
• Tech sector remains robust
• State’s General Fund Reserves
• Rainy day fund for emergencies or recession, BSA levels at 10.7%
• Total reserves levels at 12.8%

California’s Current Economic Trends

7

8

“It can’t get much better for Gavin Newsom as California’s next Governor. But it’s almost certain to get worse.” L.A. Times

Risks to the California Economy and the State Budget

2019 School Services of California, Inc.

• Policy conflicts with the

federal government

• Volatile stock market
• An aging population
• Housing crisis

Governor

• Unratified tri-party trade

agreement between California, Mexico, and Canada

• Continued trade

tensions between the U.S. and China

UCLA

• Governor Newsom and the UCLA economists identify a different set of key risks to California’s economy – they aren’t

mutually exclusive

“Whether in recessions or booms, California’s economic cycles tend to be more volatile than overall national trends.” N.Y. Times

• $80.7 billion in Prop 98 Funding (3.6% year over year increase)
• $3 billion (one-time, non-Prop 98) for CalSTRS liabilities offset
• $2 billion for LCFF to provide 3.46% COLA (total LCFF $63 billion)
• $750 million (one-time, non-Prop 98) for new or retrofitted full-day kindergarten facilities
• $576 million ($186 million one-time) for expanded special education services and support
• $187 million to provide 3.46% COLA to some categorical programs outside of the LCFF
• $20.2 million additional for county offices to provide technical assistance to school districts
• Significant investment in early childhood

K-12 CCCs Prop 98 Funding (in Billions $) 89.0% 11.0%

Governor’s January Budget Proposal for 2019-20

9

$80- $70- $60- $50- $40- $30- $20- $0-

• Acceleration of bond sales

related to Prop 51 and School Facility Program.

10

$3 Billion One-Time, Non-Prop 98 Funds Part 1: Immediate Relief

• $700 million applied over two years
• Reduce statutory rate increases for

employers

Source: Capital Advisors Group, LLC

Current (per AB 1469) Proposed (per January Budget) Fiscal Year Change

2018-19 16.28% 16.28% 2019-20 18.13% 17.10%

• 1.03

2020-21 19.10% 18.10%

• 1.00

Part 2: Prepayment to Achieve Long-Term Savings

• $2.3 billion to pay down employers’ unfunded liability
• Projected to reduce employer contribution rate 0.5% (ongoing)
• Projected to save employers $6.9 billion over the next three decades

Governor’s January Budget Proposal for 2019-20

Caveat: How will the non-educational agencies react to the Governor utilizing the non-Prop 98 funding bucket?

11

Governor’s January Budget Proposal for 2019-20 PUSD Estimated Impacts

• 3.46% COLA on LCFF funding
• $10.7 million
• 3.46% COLA for Special Education funding
• $600,000
• Increase in Mandated Block Grant funding
• $60,000
• $3 billion ‘buy-down’ of STRS liability
• Decrease in projected employer-paid STRS of $1.3 million in 2019-20

12

Governor’s January Budget Proposal 2019-20 PUSD Estimated Impacts

• Net Gain of $11.4 million of ongoing funding in General Fund 2019-20

PUSD Budget Projections

General Fund - Combined 2019-20 2020-21

Total GF Revenues $391,194,200 $401,869,736 Total GF Expenditures $401,828,283 $412,471,844 Other Financing Sources/Uses $3,419,997 $3,419,997 Net Activity ($7,214,087) ($7,182,111) Reserve Level 9.3% 7.3%

as per March 14, 2019 Board of Education meeting

2019-20 2020-21 Net Activity ($7,214,086) ($7,182,111) Proposed Budget Reductions for 2019-20

(ongoing)

$2,550,000 $2,550,000 Revised Net Activity ($4,664,086) ($4,632,111) Projected Beginning Fund Balance $51,384,092 $46,720,006 Projected Ending Fund Balance $46,720,006 $42,087,895 Reserve Level 10.0% 8.5%

Impact of Potential Budget Reductions Levels

13

Thank you

14

Professional Growth:

Leadership and Team

Development

How to Create a Dynamic

Fundraising Team Richard D. Marks, – RDM Management Group

THE POWER OF INTEPERSONAL COMMUNICATION

RDM MANAGEMENT GROUP A Professional Training Company Richard D. Marks

Expect Great Things to Happen

SPRING FOUNDATIONS SUMMIT

rdmmanagementgroup.com ExpectGreatThingsToHappen.com 16

THE POWER OF INTEPERSONAL COMMUNICATION

SPRING FOUNDATIONS SUMMIT

rdmmanagementgroup.com ExpectGreatThingsToHappen.com

Our goal is to help you motivate and develop a high-functioning team of volunteers, achieve better results in your fundraising and recruiting efforts, and navigate conflict and challenges that might arise.

17

Next Steps

 Evaluation  Results posted on website  Debrief and Plan for Next Years Fall Summit

Thank you!