Ocean View School District of Orange County 2 nd Interim Budget March 7, 2017 Carol Hansen, Ed.D., Superintendent Michael Conroy, Ed.D.

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1 Ocean View School District of Orange County Budget March 7, 2017 Carol Hansen, Ed.D., Superintendent Michael Conroy, Ed.D., Deputy Superintendent Joe Webber, Director of Fiscal Services

2 Budget 2 Components Budget Assumptions General Fund Revenue General Fund Expenses General Fund Balance Summary Encroachment Cash Flow

3 Key Rate Assumptions * COLA (Statutory)* 0% 1.48% 2.40% 2.53% LCFF Gap Funding (DOF)* 55.28% 23.67% 53.85% 68.94% LCFF Gap Funding (SSC)* 55.28% 23.67% 34.42%** 35.88%** California CPI* 2.37% 2.72% 2.92% 2.60% STRS Employer Rates* 12.58% 14.43% 16.28% 18.13% PERS Employer Rates* % 15.80% 18.70% 21.60% One-time Discretionary Funding Educator Effectiveness Funding $1,805,317 $0 $0 $0 $0 $0 $0 $0 * Note School Services of California Dartboard

4 Other Assumptions 4 LCFF Revenue ADA 97% of Enrollment Declining enrollment trends Status quo regarding student demographics Using Governor s January Budget Proposal Step and Column salary increase estimate for both certificated 1.7% and classified 1.1% in and Increasing Encroachment LCAP

5 Combined General Fund Revenue Summary 5 GF Combined LCFF Revenues $68,317,044 $67,805,409 $68,766,342 Federal Revenues $4,355,695 $3,966,698 $3,966,698 Other State Revenues $7,181,377 $5,376,060 $5,376,060 Other Local Revenues $6,770,663 $6,771,715 $6,891,426 TOTAL Revenues $86,624,779 $83,919,882 $85,000,526 * NOTE: Budget Book , MYP tab

6 Combined General Fund Revenue Summary 6 GF Combined * LCFF Revenues $68,317,044 $67,805,409 $68,766,342 $70,060,689 Federal Revenues $4,355,695 $3,966,698 $3,966,698 $3,966,698 Other State Revenues $7,181,377 $5,376,060 $5,376,060 $5,376,060 Other Local Revenues $6,770,663 $6,771,715 $6,891,426 $7,020,651 TOTAL Revenues $86,624,779 $83,919,882 $85,000,526 $86,424,098

7 Combined General Fund Revenue Interim Comparisons 7 GF Combined LCFF Revenues LCFF Revenues 1 st Interim $68,317,044 $67,805,409 $68,766,342 $68,242,552 $69,279,076 $68,969,608 Difference $74,492 -$1,473,667 -$203,266 TOTAL Revenues TOTAL Revenues 1 st Interim $86,624,779 $83,919,882 $85,000,526 $86,207,731 $85,223,413 $85,028,444 Difference $417,048 -$1,303,531 -$27,918

8 Combined General Fund Revenue Interim Comparisons 8 GF Combined * LCFF Revenues LCFF Revenues 1 st Interim $68,317,044 $67,805,409 $68,766,342 $70,060,689 $68,242,552 $69,279,076 $68,969,608 $70,178,143 Difference $74,492 -$1,473,667 -$203,266 -$117,454 TOTAL Revenues TOTAL Revenues 1 st Interim $86,624,779 $83,919,882 $85,000,526 $86,424,098 $86,207,731 $85,223,413 $85,028,444 $86,366,363 Difference $417,048 -$1,303,531 -$27,918 $57,735

9 General Fund Expenditures 9 GF Combined Certificated Salaries $41,425,093 $40,086,515 $40,029,376 Classified Salaries $16,065,949 $15,915,152 $16,090,219 Employee Benefits $18,889,732 $19,344,409 $20,386,003 Books & Supplies $3,307,088 $3,791,306 $2,294,674 Services & Other Operating Expenses $7,640,878 $7,405,323 $7,508,880 Capital Outlay $191,554 $14,554 $14,554 Other Outgo $445,945 $445,945 $445,945 Support (Indirect) Costs ($361,059) ($361,059) ($361,059) TOTAL Expenditures $87,605,180 $86,642,144 $86,408,592

10 General Fund Expenditures 10 GF Combined * Certificated Salaries $41,425,093 $40,086,515 $40,029,376 $40,263,984 Classified Salaries $16,065,949 $15,915,152 $16,090,219 $16,254,212 Employee Benefits $18,889,732 $19,344,409 $20,386,003 $21,506,729 Books & Supplies $3,307,088 $3,791,306 $2,294,674 $2,286,882 Services & Other Operating Expenses $7,640,878 $7,405,323 $7,508,880 $7,487,770 Capital Outlay $191,554 $14,554 $14,554 $0 Other Outgo $445,945 $445,945 $445,945 $429,313 Support (Indirect) Costs ($361,059) ($361,059) ($361,059) ($361,059) TOTAL Expenditures $87,605,180 $86,642,144 $86,408,592 $87,867,831

11 District Cost of Opening the Doors Annual Increases 11 Increased Costs () () () 3-Yr Cumulative Total Step & Column (includes PERS,STRS, WC, OSDI, Medi, SUI) $1,001,539 $991,493 $1,017,904 $1,036,017 $3,045,414 CalPERS $252,137 $317,757 $321,021 $313,405 $952,183 CalSTRS $751,339 $741,601 $740,543 $744,884 $2,227,028 Total Cost Increases $2,005,015 $2,050,851 $2,079,468 $2,094,306 $6,224,625 + / - LCFF Revenue DOF Gap Funding Projections $74,492 -$511,635 $960,933 $1,294,347 $1,743,645 Net Impact -$1,930,523 -$562,486 -$1,118,535 -$799,959 -$4,406,488

12 General Fund Summary and MYP 12 GF Combined Beginning Balance $11,652,533 $10,422,132 $7,449,870 Revenues $86,624,779 $83,919,882 $85,000,526 Expenditures (including Transfers In/Out) Net Inc/(Dec) in Fund Balance $87,605,180 $86,642,144 $86,408,592 ($1,230,401) ($2,972,262) ($1,658,066) Ending Balance $10,422,132 $7,449,870 $5,791,804 Ending Balance as % of Expenditures 11.90% 8.60% 6.70%

13 General Fund Summary and MYP 13 GF Combined * Beginning Balance $11,652,533 $10,422,132 $7,449,870 $5,791,804 Revenues $86,624,779 $83,919,882 $85,000,526 $86,424,098 Expenditures (including Transfers In/Out) Net Inc/(Dec) in Fund Balance $87,605,180 $86,642,144 $86,408,592 $87,867,831 ($1,230,401) ($2,972,262) ($1,658,066) ($1,693,732) Ending Balance $10,422,132 $7,449,870 $5,791,804 $4,098,071 Ending Balance as % of Expenditures 11.90% 8.60% 6.70% 4.66%

14 Contributions to Restricted Programs Special Education $9,917,029 Routine Maintenance $2,382,013 Home-to-School Transportation $963,599 Special Education Transportation $262,718

15 Cash Flow Projections -- Budget Adoption 15 $24.0 $22.0 $20.0 $18.0 $16.0 $14.0 $12.0 $10.0 $8.0 $6.0 $4.0 $2.0 $0.0 June July Aug Sept Oct Nov Dec Jan Feb March April May June Ending Cash Balance

16 Cash Flow Projections -- 1 st Interim Budget 16 $24.0 $22.0 $20.0 $18.0 $16.0 $14.0 $12.0 $10.0 $8.0 $6.0 $4.0 $2.0 $0.0 June July Aug Sept Oct Nov Dec Jan Feb March April May June Ending Cash Balance

17 Cash Flow Projections Budget 17 $24.0 $22.0 $20.0 $18.0 $16.0 $14.0 $12.0 $10.0 $8.0 $6.0 $4.0 $2.0 $0.0 June July Aug Sept Oct Nov Dec Jan Feb March April May June Ending Cash Balance

18 Key Messages for OVSD Student achievement requires access to quality instructional programs implemented by highly qualified and competitively compensated staff. 2. Declining enrollment continues to have a negative impact on per pupil funding. 3. The CalSTRS and CalPERS employer contribution rates have an increasingly negative impact on the District s budget and reserve. 4. Facility and technology needs continue to pose long-term sustainability concerns. 5. Special education expenditures create a substantial encroachment upon unrestricted funds. 6. The state of the economy and education funding is in question as we approach and full LCFF funding. 7. Economic cycles drive a need for sustainable systems, including substantial reserves and the ability to reduce programs in the event the District loses state or local funding.

19 Next Steps? 19 March 7th Budget Tonight approve Budget New Business, O.1 POSITIVE CERTIFICATION March, 2017 Continue Negotiations March May 2017 Continue Development of Budget LCAP May 15, 2017 Governor s May Revise Budget Release June 2017 LCAP and Budget Adoptions

20 Questions?