Twin Rivers Unified School District 2020/21 ADOPTED BUDGET PRESENTED - - PowerPoint PPT Presentation

Twin Rivers Unified School District

2020/21 ADOPTED BUDGET

PRESENTED TO THE BOARD OF TRUSTEES – FOR PUBLIC HEARING AND APPROVAL JUNE 30, 2020 By Kate Ingersoll Executive Director Fiscal Services

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Agenda

• The Budget Reporting Cycle
• Budget Reductions
• 2020/21 General Fund
• 2020/21 Other Funds
• 2021/22 General Fund Projections
• 2022/23 General Fund Projections
• Next Steps

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LCAP/ Adopted Budget (2020-21) Unaudited Actuals (2019-20) 1st Interim Financial Report (2020-21) Governor’s Budget Proposal & TRUSD Staffing (2021-22) 2nd Interim Financial Report (2020-21) Preliminary LCAP/ Budget (2021-22) Governor’s May Revise (2021-22) LCAP/ Adopted Budget (2021-22)

June December January April‐May March

LCAP

September

WE ARE HERE

Note: 2020‐21 LCAP is postponed to December 15, 2020

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Budget Projections

• Key Factors
• Enrollment
• Attendance
• Unduplicated Pupil Percentage (UPP)
• LCFF Increase/Decrease
• Position Control/hiring
• STRS/PERS increases
• Special Education Increases
• Collective Bargaining negotiations
• A slowing economy and rising costs pose

challenges in the multiyear projection

• Don’t use one-time dollars to justify paying

for ongoing expenditures

Projections are not predictions Required by AB 1200 (Chapter 1213/1991) and AB 2756 (Chapter 52/2004) Projections are expected to change as various factors change Assumptions + Today’s Decisions = Projections

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State Budget

• Adopted June 26
• Key budget items for K-12 include:
• LCFF remains at its 2019/2020 levels; 0% COLA
• Special Education per ADA increase
• Very few direct cuts to categorical programs
• Invest to buydown employer contribution rates for STRS and PERS
• Learning Loss Mitigation funding; additional Federal and State funding
• Receipt of funds in contingent upon the LEA adopting a Learning

Continuity and Attendance Plan by September 30, 2020

• ADA hold harmless using 2019/2020’s ADA
• LCAP – LCFF Budget Overview for Parents by December 15, 2020
• Deferrals of $8.68 billion for 2020/2021

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TRUSD Budget

• The Twin Rivers Adopted Budget is built on the Legislatures June 15th

budget bill.

• The main difference between the Legislature’s June 15 budget bill and June

26 state adopted budget is the Learning Loss Mitigation funds.

• Learning Loss Mitigation funds are in three subsets and each is allocated in

a different manner. Twin River’s proposed one-time allocations are:

• $7.8 million allocated based on students with disabilities
• $14.7 million allocated based on 2019/2020 supplemental

concentration funding

• $4 million allocated based on 2019/2020 LCFF ADA funding

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2020‐2021 Budget Reductions

• The $10 million of Base

reductions include State budget improvements:

• 65% is from State budget

improvements

• $3.2 million

STRS/PERS

• $3.3 million special

education

Base $9,980,975 S/C $1,641,385 One-Time $4,000,000

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Total: $15,622,360

2020‐2021 Budget Reductions

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$396,927 $1,112,153 $132,305 $3,264,060 $797,190 $2,134,000 $250,000 $3,234,000 $301,725 $4,000,000

S/C Positions Closed S/C Department/Programs S/C Charter Special Education Teacher Salaries CSR Positions Closed Retiree Health Benefits STRS/PERS Step/Column One‐Time

Total: $15,622,360

2020‐2021 Budget Reductions

• $15.6 million budget reductions:
• $10 million LCFF Base

 $3,264,060 – Special Education  $3,234,000 – STRS/PERS increases proposed to be covered by the state  $1,690,000 – Thirteen additional FTE teaching positions due to declining enrollment  $223,000 – 1.50 FTE Principal/VP  $126,000 – 1.0 FTE Executive Assistant II  $95,000 – 1.50 FTE school office positions now in S/C  $250,000 – Retiree health benefits  $375,190 – Charter S/C teacher offsets  $310,000 – Additional for portion of teachers’ salaries for full day kindergarten using S/C  $112,000 – Increase to S/C teacher salaries for instructional minutes  $184,000 – Step/column less for certificated  $117,725 – Step/column less for classified

• $1.6 million LCFF S/C

 $1,112,153 Various Programs  $197,249 – 1.0 FTE Executive Director Student Engagement  $199,678 – 1.0 FTE Director Co-Curricular Athletics

• $4 million one-time from COP 2007 savings

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2020/21 General Fund

Estimated Beginning Fund Balance** 41,022,420 $ Revenues 374,786,161 $ Expenditures 369,591,152 $ Net Increase/(Decrease) Fund Balance 5,195,009 $ Ending Fund Balance 46,217,429 $ Components of Ending Fund Balance: Nonspendable 588,107 $ Restricted 1 $ Assigned 19,993,081 $ Unassigned - Economic Uncertainties 19,000,000 $ Unassigned 6,636,240 $

**Est. beginning fund balance is $6.6 million greater than Second Interim MYP; $4 million anticipated unspent funds and $2.6 million less of a contribution to the Special Education program. Meet Board Policy intent for Economic Uncertainties of $19 million

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2020/21 Change in Ending Fund Balance

Net Increase/(Decrease) Fund Balance $ 5,195,009 Restricted budgeted expenditures

(one-time from prior year carryover)

$ - Assigned budgeted expenditures

(one-time from prior year carryover; i.e. Instructional Materials, Site Base, Charter S/C)

$ - Surplus/(Deficit) spending $ 5,195,009 One-time revenue in the budget $ (4,000,000) One-time expenditures in the budget $ - On-going District cost in Ending Fund Balance reserve

(not in budgeted expenditures):

2020/21 Adopted Budget Surplus/(Deficit) $ 1,195,009

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2020/21 Assigned Ending Fund Balances

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Site Base Allocation @ 100% 300,000 $ Instructional Materials Carryover 2,394,760 $ Cover 21/22 Structural Deficit 5,316,428 $ Cover 22/23 Structural Deficit 11,981,893 $ Total Assigned Balance 19,993,081 $

Change in Ending Fund Balance

• 5,000,000

10,000,000 15,000,000 20,000,000 25,000,000 2014/15 Actuals 2015/16 Actuals 2016/17 Actuals 2017/18 Actuals 2018/19 Actuals Assigned Economic Uncertainties Restricted Nonspendable Undesignated

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2020/21 General Fund Revenues

LCFF $ 282,906,932

State Aid

200,451,878

Property Tax

40,525,878

Education Protection Account

42,701,514

LCFF Transfer to Fund 14

(1,896,380)

Property Tax Transfer - Spec. Ed.

1,124,042 Federal 40,055,421 State 44,011,217 Local & Other 7,812,591

LCFF 75% Federal 11% State 12% Local & Other 2%

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2020/21 LCFF Revenue

Twin Rivers Estimated 2020/21 Creative Connections Estimated 2020/21 Smythe Academy Estimated 2020/21 Westside Prep Charter Estimated 2020/21 Total 20/21 Estimated LCFF Entitlement $259,063,470 $7,299,242 $12,267,982 $5,048,576 $283,679,270 Base Funding $193,735,948 $5,887,863 $9,013,021 $3,992,800 $212,629,632 Supplemental/Concentration $ 65,327,522 $1,411,379 $3,254,961 $1,055,776 $ 71,049,638 Estimated Unduplicated pupil %

(3 year rolling average) (EL, low income and/or foster youth)

90.06% 73.53% 92.92% 77.06% 16

Details of the LCFF Revenue Reduction – 2020‐21 Budget

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LCFF ADA vs P2 ADA

(Includes Charters)

16/17 Actual 17/18 Actual 18/19 Actual 19/20 Estimated 20/21 Projection P-2 ADA (Not Including SCOE) 24,699 24,690 24,252 23,876 23,615 LCFF ADA (Not Including SCOE) 24,699 24,690 24,387 23,964 23,633 Enrollment (CalPADS date) 26,095 26,162 25,694 25,344 25,111 23,000 24,000 25,000 26,000 27,000

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LCFF/P2 ADA ‐ Charters

16/17 Actual 17/18 Actual 18/19 Actual 19/20 Estimated 20/21 Projection P-2 ADA 2,048 2,087 2,146 2,225 2,289 Enrollment (CalPADS date) 2,138 2,173 2,237 2,325 2,395 1,500 1,600 1,700 1,800 1,900 2,000 2,100 2,200 2,300 2,400 19

Revenues

• Federal Revenue:
• Reduction of prior year carryover funds ($10.5 million)
• Elimination of one-time grants/changes in grant funding ($11.3 million

increase)

 One-time CARES Act ESSER funds increase ($12.5 million)  Student Support & Academic Enrichment increase ($285 million)  Special Education increase ($428 thousand)  Title I Program Improvement funds decrease ($1.5 million)  Title II Teacher Quality decrease ($345 thousand)

• Continuing programs similar to prior year levels except for as noted above
• Deferred Revenue will be budgeted once the actuals are known

 $1 million deferred revenue budgeted  Anticipated unearned revenue to carryover ($7 million)

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Revenues

• State Revenue:
• Reduction of prior year carryover funds ($648 thousand)
• One-time funding reduction ($5.8 million)

 Special Education preschool funds – unrestricted ($2 million)  Ca Energy Commission for bus purchases ($3.8 million)

• On-behalf STRS contribution - revenue & expenditure ($13 million); a decrease
• f $476 thousand
• Career Technical Education eliminated ($800 thousand); grant application for

2020/21 submitted

• K-12 Strong Workforce eliminated ($690 thousand); grant application for

2020/21 submitted

• Special Ed SELPA increase ($1 million)
• Continuing programs same/similar to prior year levels

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Revenues

• Local Revenue:
• One-time funding eliminated ($500 thousand)
• Interest Income ($650 thousand)
• MOUs with Independent Charter Schools ($2 million) for facility use and

required administrative support services

• Learning Loss Mitigation funds are not in the budget but will be added for

First Interim. Twin River’s proposed one-time allocations are:

• $7.8 million allocated based on students with disabilities
• $14.7 million allocated based on 2019/2020 supplemental

concentration funding

• $4 million allocated based on 2019/2020 LCFF ADA funding

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2020/21 General Fund Expenditures

Certificated $140,160,891 Classified 50,198,921 Employee Benefits 80,703,537 Books & Supplies 26,503,201 Services 54,821,495 Capital & Other 7,203,107 Interfund Transfers Out 10,000,000 23

Certificated Salaries 38% Classified Salaries 14% Employee Benefits 22% Books and Supplies 7% Services & Other Operating 15% Capital Outlay & Other 2% Interfund Transfers Out 2%

Expenditures

• Certificated Salaries:
• Net decrease of $2.2 million compared to 2019/20 Estimated Actuals due to:

 Current position control

• 1.32% step/column increase
• Does not include salary schedule increases

 20 FTE less teaching positions (due to declining enrollment)  6.4 FTE less for Secondary School Redesign  1.5 FTE less Principal/VP positions  1 FTE less Executive Director Student Engagement  Extra assignment and substitute decreases due to elimination of one-time carryover funds

and budget reductions

• Classified Salaries:
• Net increase of $145 thousand compared to 2019/20 Estimated Actuals due to:

 Current position control

• 2.05% step increase
• Does not include salary schedule increases

 1 FTE Executive Assistant II  Extra duty, overtime and substitute decreases due to elimination of one-time carryover

funds and budget reductions 24

Expenditures

• Employee Benefits:
• STRS increase 1.297% as a part of position control

 After Governor’s May Proposal, decreased budget by $2.475 million

• PERS increased 3.079% as a part of position control

 After Governor’s May Proposal, decreased budget by $759 thousand

• Retiree Health Benefit contribution decreased $250,000
• On-behalf STRS (revenue and expenditure) of $13 million ($476 thousand decrease)
• 2019/20 Program and Categorical carryover:
• Carryovers will be adjusted at First Interim once the actuals are known

 Unrestricted program carryover reflected is $2.4 million and is assigned in the ending fund

balance

 Anticipate $5 million for restricted ending fund balance ($0 is within Adopted Budget)  Anticipate $8 million for deferred revenue carryover ($1 million is within Adopted Budget)

• Routine Restricted Maintenance Account (RRMA) @ $10.2 million
• 3% calculation does not include STRS on-behalf expenditures

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Expenditures

• Books and Supplies:
• Elimination of one-time carryover budgets
• S/C program reductions
• $2.4 million instructional textbook adoption in the ending fund balance
• Services and Other Operating Reductions:
• Elimination of one-time carryover budgets
• S/C program reductions
• Capital Outlay:
• Elimination of one-time carryover budgets
• $3.8 million less for one-time prior bus purchase (grant funded)
• Other Outgo:
• Decrease is in unrestricted and is mainly from the end of a capital lease within

Information Technology Department

• Interfund Transfers Out:
• Budgeted at $10 million from S/C for facility projects

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Other Funds

• Adult Education Fund
• Child Development Fund
• Special Reserve Fund for

Post-Employment

• Cafeteria Fund
• Deferred Maintenance Fund
• Building Fund
• Capital Facilities Fund-Developer Fees
• County School Facilities Fund
• Special Reserve Capital Outlay Fund

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2021/22 General Fund Projections

Beginning Fund Balance 46,217,429 $ Revenues 356,281,160 $ Expenditures 361,597,589 $ Net Increase/(Decrease) Fund Balance (5,316,429) $ Ending Fund Balance 40,901,000 $ Components of Ending Fund Balance: Nonspendable 588,107 $ Restricted

• $

Assigned 14,376,653 $ Unassigned - Economic Uncertainties 19,000,000 $ Unassigned 6,936,240 $

Note: Does not include salary increase for 2021/22 Meets Board Policy intent for Economic Uncertainties of $19 million

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2021/22 Change in Ending Fund Balance

Net Increase/(Decrease) Fund Balance $ (5,316,429) Restricted budgeted expenditures (one-time from prior year carryover) $ - Assigned budgeted expenditures (one-time from prior year carryover; i.e. Instructional Materials, Site Base, Charter S/C) $ - Deficit spending $ (5,316,429) One-time expenditures in the budget $ - Adopted Budget Surplus/(Deficit) $ (5,316,429)

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2022/23 General Fund Projections

Revenues 355,863,920 $ Expenditures 367,845,813 $ Net Increase/(Decrease) Fund Balance (11,981,893) $ Ending Fund Balance 28,919,107 $ Components of Ending Fund Balance: Nonspendable 588,107 $ Restricted

• $

Assigned 2,394,760 $ Unassigned - Economic Uncertainties 19,000,000 $ Unassigned 6,936,240 $

Note: Does not include salary increase for 2022/23 Meets Board Policy intent for Economic Uncertainties of $19 million

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Next Steps

• TRUSD 45 Day budget revision if the State Adopted budget is

materially different

• Possibility of a State Budget change in August
• TRUSD budget revision if materially different
• Close the 2019/20 financial records – 2019/20 Unaudited Actuals

at September Board meeting

• October 27th – Board of Trustees provide a list of 2021/22

reductions for input into the First Interim Budget

• The 2020/21 First Interim Budget will be presented to the Board in

December

• Actual carryover and restricted ending fund balance amounts

from 2019/20 will be included

• Any questions?

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