WSCUHSD 2019-20 Budget Proposal June 26, 2019 Changes since - - PowerPoint PPT Presentation

WSCUHSD 2019-20 Budget Proposal June 26, 2019

Changes since 6/12/2019 Presentation

• An error related to Consortium Partner District ADA revenue

was discovered on 6/13/2019

• The error created a significant impact on District Local Revenue

estimates for each year of the budget

• The error was corrected and updated revenues and expenses

were incorporated into 2018-19, 2019-20 and subsequent years

• Recent litigation settlements were added as assignments to the

2019-20 components of ending fund balance

May Revision/Potential Changes

• COLA for 2019-20 reduced to 3.26% (from 3.46% in January)
• STRS adjustments (smaller increase) more likely
• PERS increase partial relief possible
• Increase to Special Education funding may/may not help
• No Augmented COLA

Overall District Fiscal Condition

• The District will meet the minimum reserve requirements in:

○ 2019-20 with deficit spending (would not have deficit spending without Science Textbook adoption) ○ 2020-21 with deficit spending (very small deficit/includes implementation of the Fiscal Recovery Plan) ○ 2021-22 with significant deficit spending

• Declining enrollment has greater impact on revenue than COLA

Projections & Assumptions

2018-19 2019-20 2020-21 2021-22 COLA 3.70%* 3.26% 3.00% 2.80% DOF GAP 100.0% 100.0% 100.0% 100.0% Funded $ $10,100 $10,461 $10,764 $11,068

* 2.71% COLA was augmented with additional 0.99% in the Adopted State Budget

• More Projections and Assumptions:

○ New Parcel Tax Measure will pass at current level ○ 180 student days, 185 teacher work days ○ Step & Column increase to salaries - negotiations not settled ○ 7.0 Certificated FTE reductions for 2020-21 ○ STRS/PERS: lower STRS increase anticipated; 11.4% average PERS increases ○ Health Benefit increases: 3.5% average Certificated & 8.6% Classified ○ Books and Supplies - Science Textbook adoption in 2019-20; 5% reductions in 2020-21 & 2021-22 (plus assignment for Social Studies adoption) ○ Services and Operating - ■ 2019-20 reflects 64% increase in Property/Liability Insurance ■ 2020-21 & 2021-22 include 1% increase over prior years ■ Required 3% contribution to Routine Restricted Maintenance

LCFF Revenue Projections from 2nd Interim

2017-18 2018-19 2019-20 2020-21 COLA 1.56% 3.70% 3.46% 2.86% Actual % 0.27% 2.76% 2.50%

• 0.28%

$ Growth $48,645 $495,918 $461,431 ($53,578)

Current LCFF Revenue Growth

2018-19 2019-20 2020-21 2021-22 COLA 3.7% 3.26% 3.00% 2.80% Actual % 2.71% 1.39% 1.09%

• 1.41%

$ Growth $486,928 $255,797 $204,344 ($266,091)

Revenue Growth

COLA vs. Percent Growth

Statewide Funding

MYP Summary

2019-20 2020-21* 2021-22 Revenues 25,102,260 25,212,106 24,906,182 Total Expenditures 25,543,924 25,136,910 25,539,738 Excess(Deficiency) (441,664) 75,196 (633,556) Transfers/Other Uses (84,631) (85,000) (85,000) Net Increase(Decrease) (526,295) (9,804) (718,556)

* Incorporates the Fiscal Recovery Plan reductions of 7.0 FTE

Fund Balance Summary

2019-20 2020-21 2021-22 Beginning Balance 2,668,171 2,161,876 2,152,072 Net Increase(Decrease) (526,295) (9,804) (718,556) Rsrv Econ Uncertainty 770,807 758,607 770,693 Assignment/Restricted 1,379,369 925,484 605,119 Unappropriated 11,701 467,981 57,704

Fund Balance Summary Without Reductions in 2020-21

2019-20 2020-21* 2021-22* Beginning Balance 2,668,171 2,161,876 1,531,492 Net Increase(Decrease) (526,295) (630,384) (1,352,400) Rsrv Econ Uncertainty 770,807 777,225 789,707 Assignment/Restricted 1,379,369 835,484 65,119 Unappropriated 11,701 (81,217) (675,735)

* Cannot meet Minimum Reserve for Economic Uncertainty

Next Steps

• After the Governor signs State Budget, the 45-Day Budget Revision

for the District will be presented at the August Board meeting

• Superintendent’s Budget Committee will review Fiscal Recovery Plan

and other potential reductions for 2020-21

• Monitor enrollment for 2019-20 and subsequent years
• Potential new Parcel Tax measure
• Align budget with results of Portrait of a Graduate process

Questions?

Discussion/Action

• June 12, 2019 - Discussion Only
• June 26, 2019 - Staff requests

approval of the 2019-20 Adopted Budget Report