Palo Alto Unified School District

Transcription

1 Palo Alto Unified School District 1

2 Proposed Budget June 17,

3 BUDGET DEVELOPMENT/FINANCIAL REPORTING/CALENDAR FOR THE & BUDGET June 2014 July 2014 August 2014 September 2014 November 2014 November 2014 December 2014 January 2015 February 2015 February 2015 May 2015 May 2015 June 2015 June 2015 Adoption of PAUSD Budget Governor Signs the State Budget Property Tax Projections from County of Santa Clara First Revision of PAUSD Budget County Controller-Treasurer Property Tax Projection Update First Interim PAUSD Financial Report PAUSD Enrollment Projections Release of Governor s Recommended State Budget County Controller-Treasurer Property Tax Projection Update Second Interim PAUSD Financial Report State Budget Update Governor s May Revise & Property Tax Projection Update Adoption of PAUSD Budget Governor Signs State Budget 3

4 Agenda Estimated Actuals for Proposed Budget for Revenue and expenses Multi-year Projections Issues to Monitor 4

5 Estimated Actuals Basis for Budget Estimated fund balance available to mitigate future budget cuts of $7.0 million, an increase of $387,645 since second interim Increase due to: $135,000 additional property taxes $171,074 additional state aid and special education revenues ($81,571) expenditures savings Superintendent Search - $50,155 Legal Fees increase - $300,000 Utilities Savings: ($160,000) Other Expenses Savings: ($108,584) 5

6 Proposed Budget Proposed Budget BEGINNING FUND BALANCE Restricted/Reserved/Designated Available to Mitigate Future Budget Cuts $30,187,607 $23,159,201 $ 7,028,406 INCOME $184,495,081 EXPENDITURES $185,612,391 Excess of Revenues over Expenses (Unrestricted) ($1,117,310) ENDING FUND BALANCE Restricted/Reserved/Designated Available to Mitigate Future Budget Cuts $29,070,297 $22,984,033 $6,086,264 6

7 Source of General Funds

8 14.00% 12.00% 10.00% $7,481, % $8,091, % Change In Property Tax Revenue Amount and Percentage $10,648, % $5,735, % 6.00% $3,714, % 8.19% $5,269, % $6,362, % $6,856, % $8,533, % 4.00% 2.00% $248, % $3,095, % $837, % $1,769, % $3,818, % $2,622,092 $2,674,533 $2,782, % $2,728,024 $2,838, % 2.00%2.00% 2.00% 0.00% * * * * * * *Estimate

9 3.50% 3.00% 2.50% 2.00% 1.50% 1.00% 0.50% 0.00% -0.50% -1.00% -0.79% % 1.96% 1.87% 1.54% 2.95% % 2.16% 2.15% % % 0.90% 0.70% 1.24% % 0.70% % 0.75% 0.09% * * * * * * Change In Enrollment # of Students and Percentage *Estimate 12

10 Change In Property Tax Revenue Per Student Amount and Percentage 16.00% 14.00% $ % 12.00% 10.00% 8.00% 6.00% $235 $ % $ % $ % $ % $ % $ % $ % 4.00% 2.00% 0.00% 3.55% -$ % $ % -$198 -$ % -0.56% $ % $ % $134 $ % $ % 0.29% $ % -2.00% -4.00% *Estimate

11 Estimated General Fund & Basic Aid Reserves Reserve for Economic Uncertainties $ % $ % $ % $ % Fund Balance Available to Mitigate Future Budget Cuts $ % $ % $ % $ % Basic Aid Reserve $ % $ % $ % $ % TOTAL ESTIMATED ENDING BALANCE $ % $ % $ % $ % TOTAL GENERAL FUND EXPENDITURES $186.6 $185.6 $191.4 $190.5 * All amounts in millions 11

12 Use of General Funds

13 Proposed Budget Expenditures Personnel Budgets Step and Column costs for all employees Increase 11 growth teachers (10 regular and 1 special education) Program Augmentations $2,996,400 (includes 13 more teachers) Unemployment Insurance rate increase from 2.05% to 2.09% STRS rate increase from 8.25% to 9.5% PERS rate increase from % to % Non-Personnel Budgets Budget for departments, other operating services and contracts remain relatively flat 13

14 Assumptions in to Projections Property tax growth at 2% for all five years Moderate enrollment growth projected Loss of rental revenue for Garland site beginning in and 13 th elementary school in Current terms of the Cubberley lease continues Routine Maintenance contribution at 3% of General Fund Expenditures, flexibility expires

15 Issues to Monitor State Pension Programs CALSTRS $74 billion shortfall Accelerating the timeframe to address the shortfall from to , Governor proposes immediate contribution rate increases 1.25% increase in and 1.6% each year thereafter until it reaches 19.10% in Alternative Proposal by budget committees: reduce the employer contribution rate increases for the first three years, then increases to the same final rate, 19.10% in CALPERS Rate Increase by 0.329% to % in and slight increases each year thereafter. 15

16 Issues to Monitor Renewal of Cubberley Lease The Cubberley lease with the City of Palo Alto expires December 31, 2014 In February, the City Council discussed suggested changes to the lease including: Elimination of the Covenant Not to Develop ($1.8 million) Elimination of the Consumer Price Index (CPI) annual increases District and City staff are in negotiations. 16

17 Issues to Monitor Universal Transitional Kindergarten (TK) Senate Bill (SB) 837 Provide TK to more four-year-olds than currently served beginning in Classes would be limited to 20 students by a credentialed teacher and an associate teacher. Governor s budget does not mention expanding the current TK program. Revised Proposal Eliminate TK by Support pre-kindergarten for all low income four-yearolds. 17