Board of Education Budget Adoption June 28, 2016

Transcription

1 SAN DIEGO UNIFIED SCHOOL DISTRICT Board of Education Budget Adoption June 28, 2016

2 Presentation Agenda Opening Remarks Local Control Funding Formula (LCFF) Multi-Year Assumptions Budget Proposal and Solutions Tax Revenue Anticipation Notes (TRANs) Superintendent s Recommended Budget 2

3 3 Local Control Funding Formula (LCFF)

4 LCFF MYP Target and Gap Implementation Fiscal Year ADA LCFF Target at Full Implementation LCFF Floor Gap Funding Allocated Annual LCFF Allocation Remaining Gap Gap Funding % ,088 $ 1,028,678,354 $ 736,936,863 $ 35,013,926 $ 771,950,789 $ 256,727, % ,641 $ 1,028,607,955 $ 763,804,735 $ 79,865,079 $ 843,669,814 $ 184,938, % ,304 $ 1,017,043,464 $ 828,731,508 $ 98,298,841 $ 927,030,349 $ 90,013, % ,514 $ 1,009,673,099 $ 921,221,019 $ 48,507,121 $ 969,728,140 $ 39,944, % ,991 $ 1,006,470,393 $ 957,804,662 $ 35,993,175 $ 993,797,837 $ 12,672, % ,492 $ 1,014,718,187 $ 981,512,831 $ 13,687,248 $ 995,200,079 $ 19,518, % ,014 $ 1,025,339,470 $ 982,894,285 $ 31,901,801 $ 1,014,796,086 $ 10,543, % ,559 $ 1,011,069,451 $ 1,002,196,561 $ - $ 1,002,196,561 $ 8,872, % ,559 $ 1,011,069,451 $ 1,002,196,561 $ 8,872,890 $ 1,011,069,

5 5 Multi-Year Assumptions

6 San Diego County Office of Education San Diego County Office of Education (SDCOE) guidance letter dated May 31, 2016, recommends planning factors for and multiyear projections Subject to change pending State Legislature and Governor s approval Budget must be submitted to SDCOE by July 1, 2016 (E.C ) The District is required to revise the adopted budget and submit to SDCOE within 45 days of State Budget adoption, if there are significant changes District s Local Control Accountability Plan, Adopted Budget, Certification are reviewed and approved together 6

7 Multi-Year Assumptions Revenues REVENUE ASSUMPTIONS Description LCFF Funding Model Funded ADA 101,514 99,991 98,492 COLA* 0.00% 1.11% 2.42% Funding Gap* 54.84% 73.96% 41.22% Federal: Impact Aid $9.0M $9.0M $9.0M Other State Mandated Cost Reimbursement $ 3.7M $ 3.7M $ 3.6M Lottery (GFU $140; GFR $41) $181/ADA $181/ADA $181/ADA Local: Interest 0.56% 0.56% 0.56% Transfers In $11.0M $11.0M $11.0M *Per Department of Finance 7

8 Multi-Year Assumptions Expenditures EXPENSE ASSUMPTIONS Description Salaries Step and Column: Cert / Class 1.76% /.92% 1.76% /.92% 1.76% /.92% STRS 12.58% 14.43% 16.28% PERS 13.89% 15.50% 17.10% Health & Welfare Premiums 7.00% 7.00% 7.00% Materials & Supplies (Consumer Price Index- CPI) 2.15% 2.26% 2.49% Contracted Services (CPI) 2.15% 2.26% 2.49% Utilities $29.0M $33.9M $34.5M Implemented Board Solutions/Budget Deficit $24.6M* $85.0M $135.3M Transfers Out $10.2M $10.2M $10.2M Contributions Special Education $202.4M $209.0M $216.1M Restricted Routine Maintenance (RRM) $27.6M $27.6M $38.7M** 8 *$48M prior year reserves is an additional solution. The $24.6M listed solution is ongoing. ** Assumes passage of school facility bond proposition, which would increase requirement to 3%.

9 Budget Proposal and Solutions

10 Multi-Year Budget Projections General Fund Unrestricted 2015/ / / /19 DESCRIPTION PROJECTION PROJECTION PROJECTION PROJECTION Beginning Balance $144,094,133 $81,380,189 $35,776,481 $34,850,481 Revenues 986,211,103 1,041,461,030 1,038,376,841 1,039,522,080 Expenditures (826,857,784) (857,962,030) (888,618,252) (921,064,905) Projected Shortfall Solutions 2016/17 - * 85,013,824 Projected Shortfall Solutions 2017/18-135,314,714 TOTAL EXPENDITURES (826,857,784) (857,962,030) (803,604,428) (785,750,191) Other Sources / Uses (222,067,263) (229,102,708) (235,698,413) (253,975,889) Ending Balance $ 81,380,189 $ 35,776,481 $34,850,481 $ 34,646,481 SURPLUS/(SHORTFALL) (62,713,944) (45,603,708) (926,000) (204,000) Required Reserves Economic Uncertainties $26,167,000 $26,941,000 $26,015,000 $25,811,000 Reserve for FY16/17 Projected Shortfall 48,131, School Site Ending Balances 4,500,000 6,253,453 6,253,453 6,253,453 Stores 1,674,228 1,674,228 1,674,228 1,674,228 Prepaid Expenses 850, , , ,000 Revolving Cash 57,800 57,800 57,800 57,800 Total Required Reserves $81,380,189 $35,776,481 $34,850,481 $34,646,481 Reserve (Shortfall) / Surplus $0 $0 $0 $0 10 Note: 2018/19 Budget assumes passage of the school facility bond proposition, which would increase RRM requirement to 3%.

11 Every Student Succeeds Act (ESSA) Minimum Wage Increase Prop I (San Diego) Fair Wage Act of 2016 (California) Prop 30 Tax Extension Financial Risk LCFF Implementation (Prop 98 Guarantee) Routine Restricted Maintenance Passage of the School Facility Bond Proposition CalPERS rates 11

12 Statement of Reasons for Excess Reserves Education Code section 42127(a)(2)(B) requires a statement of the reasons that substantiates the need for assigned and unassigned ending fund balances in excess of the minimum reserve standard for economic uncertainties for each fiscal year identified in the budget. Combined Assigned and Unassigned/Unappropriated Fund Balances Form Fund Budget 01 General Fund/County School Service Fund $ 33,194, Special Reserve Fund for Other Than Capital Outlay Projects $ - Total Assigned and Unassigned Ending Fund Balances $ 33,194,453 District Standard Reserve Level 2% Less District Minimum Reserve for Economic Uncertainties $ 26,941,000 Remaining Balance to Substantiate Need $ 6,253,453 Reason for Fund Balances in Excess of Minimum Reserve: Additional $6.3M set aside for specific school site accounts 12

13 General Fund Unrestricted Budget Solutions Description Amount (in millions) Position Review $3.0 Funding Alignment 5.0 Contribution Adjustment (ECE) 6.6 Contribution Adjustment (Special Ed) 10.0 Total $

14 14 Tax Revenue Anticipation Notes (TRANs)

15 Tax Revenue and Anticipation Notes Estimated at $195 million No cash deferrals factored into projections Subject to Education Protection Account and LCFF entitlement adjustments with P-2 certification Credit rating presentation was held on June 22, 2016 Resolution to Board on June 28, 2016 Close in late-july 15

16 Millions Total General Fund Cash Flow $175.0 $150.0 TTRANS $ 195 Million $125.0 $100.0 $75.0 $50.0 $25.0 JUL AUG SEPT OCT NOV DEC JAN FEB MAR APR MAY JUN $- Projected $38.98 $21.52 $25.76 $26.42 $30.15 $ $ $99.76 $82.18 $89.91 $80.74 $

17 17 Superintendent s Recommended Budget and Actions Timeline

18 Superintendent s Recommended Budget New Investments Family and Community Engagement Athletics Elementary Counseling Pilot International Baccalaureate (IB) Learning Centers Visual and Performing Arts Program Asset Efficiency and Sustainability Restorative Practices LCFF Intervention Support Site Budgets Dual Language Professional Development Translation Services Improved Services Youth Advocacy Office to Support Closing of Achievement Gap Cluster Centered Parent Engagement and Community Engagement Continued Investments 18 Cultural Proficiency National Equity Project Partnership Bi-literacy and International Baccalaureate Programs High School Transformation Early Learning Support Open Library Hours at Every Elementary School Common Core Continued Support Youth in Transition GATE Testing Counseling Enhanced Allocation for Counselors at Secondary Schools Concentrated Services for A-G Support Lower Class Sizes Beginning Teacher Induction Program Additional Certificated Staff at High-Needs Elementary and Middle Schools Visual and Performing Arts Program Maintained classroom GATE and Seminar Funding Maintained i21 program Focus on Online Learning Innovation Center Focus on Student Support Intervention Plans

19 Budget Actions Timeline Date Actions June 14, Local Control and Accountability Plan (LCAP) - First Reading - Proposed Budget - First Reading - Educational Protection Account (EPA) Public Hearing June 28, Board Adoption of Budget and LCAP - TRANs Resolution And Preliminary Official Statement July 1, Adopted Budget and LCAP due to SDCOE July 26, Report on Amended Budget Information Only* Late-July - TRANs Issuance * Information only to present the adjustments to the General Fund Unrestricted Budget as a result of the state-approved budget. 19

20 20 Questions?