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: With Associate Superintendent, Ron Little Budget Overview and Forecast Work of the District’s Budget Advisory Committee Implications for Fundraising
Poway Unified School District Governor’s 2019-2020 Budget Proposal Presented to: Foundation Presidents Ron Little, Associate Superintendent March 25, 2019
Agenda California’s Current Economic Trends Governor’s January Budget Proposal for 2019-20 Impacts to Poway Unified School District 6
California’s Current Economic Trends 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 5 th 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% 7 Total reserves levels at 12.8%
“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 Governor Newsom and the UCLA economists identify a different set of key risks to California’s economy – they aren’t mutually exclusive UCLA Governor • Unratified tri-party trade • Policy conflicts with the agreement between federal government California, Mexico, and Canada • Volatile stock market • Continued trade • An aging population tensions between the • Housing crisis U.S. and China “Whether in recessions or booms, California’s economic cycles tend to be more volatile than overall national trends.” 8 N.Y. Times 2019 School Services of California, Inc.
Governor’s January Budget Proposal for 2019-20 • $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 Prop 98 Funding (in Billions $) $80- $70- • Acceleration of bond sales $60- related to Prop 51 and 89.0% $50- School Facility Program. $40- $30- $20- 11.0% $0- 9 CCCs K-12
Governor’s January Budget Proposal for 2019-20 $3 Billion One-Time, Non-Prop 98 Funds Current Proposed Fiscal Year Part 1: Immediate Relief (per AB 1469) (per January Change Budget) • $700 million applied over two years 2018-19 16.28% 16.28% • Reduce statutory rate increases for 2019-20 18.13% 17.10% -1.03 employers 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 Caveat: How will the non-educational agencies react to the Governor utilizing the non-Prop 98 funding bucket? 10 Source: Capital Advisors Group, LLC
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 11
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 12
Impact of Potential Budget Reductions Levels 2019-20 2020-21 Net Activity ($7,214,086) ($7,182,111) Proposed Budget Reductions for 2019-20 $2,550,000 $2,550,000 (ongoing) 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% 13
Thank you 14
Professional Growth: Richard D. Marks, – RDM Management Group Leadership and Team Development How to Create a Dynamic Fundraising Team
SPRING FOUNDATIONS SUMMIT THE POWER OF INTEPERSONAL COMMUNICATION RDM MANAGEMENT GROUP A Professional Training Company Richard D. Marks Expect Great Things to Happen rdmmanagementgroup.com 16 ExpectGreatThingsToHappen.com
SPRING FOUNDATIONS SUMMIT THE POWER OF INTEPERSONAL COMMUNICATION 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. rdmmanagementgroup.com 17 ExpectGreatThingsToHappen.com
Next Steps Evaluation Results posted on website Debrief and Plan for Next Years Fall Summit
Thank you!
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