Garvey School District

Transcription

1 Garvey School District 2014/15 Annual Budget June 25, 2014

2 TABLE OF CONTENTS DISTRICT ADMINISTRATION... 3 SUPERINTENDENT S MESSAGE... 4 DISTRICT OVERVIEW... 6 DISTRICT DEMOGRAPHICS... 7 GOVERNOR S PROPOSED BUDGET... 8 MAY REVISE... 8 PROPOSITION 98, 30 & LCFF... 9 LOCAL CONTROL FUNDING FORMULA (LCFF) LOCAL CONTROL FUNDING FORMULA (LCFF) GENERAL FUND REVENUES, GENERAL FUND EXPENDITURES, DISTRICT RESERVES & NET ENDING BALANCE, TO ATTENDANCE HISTORY AND PROJECTIONS FOR LOTTERY INCOME AND ITS HISTORY APPENDIX A: BUDGET TIMELINES AND DECISION MAKING POINTS APPENDIX B: GENERAL FUND MULTI-YEAR INFORMATION APPENDIX C: OTHER FUNDS BUDGET APPENDIX D: SUPPLEMENTAL FORMS APPENDIX E: GLOSSARY OF COMMON SCHOOL FINANCE TERMS SACS SOFTWARE FORMS Page 2 of 39 Information as of May 2014 Revise

3 DISTRICT ADMINISTRATION Board of Trustees Bob Bruesch, President Henry Lo, Vice President Maureen Chin, Clerk Ronald Trabanino, Member M. Janet Chin, Member Virginia Peterson, Acting Superintendent Dolores Preciado, Acting Superintendent Genaro Alarcon, Assistant Superintendent, Human Resources Robert McEntire, Chief Business Officer Mary Suzuki, Ed.D., Assistant Superintendent, Learning & Support Services Page 3 of 39 Information as of May 2014 Revise

4 SUPERINTENDENT S MESSAGE It is with guarded optimism regarding the continued growth and strengthening in the economy of our State that we present the proposed budget to the Garvey School District Board of Trustees for review. The state budget crisis now seems like it has passed but not without requiring Districts unrelenting, unprecedented actions to maximize efficient use of limited resources. This budget represents a slight breath of fresh air with the Governors May Revise which continues to fund the Local Control Funding Formula entering its second year of implementation at 28.05% of the GAP. The District will use onetime Common Core State Standards funds to upgrade school site technology to meet the needs of our students. The budget has been prepared within the current State budget limitations pursuant to the board adopted budget guidelines and under the requirements imposed by the Los Angeles County Office of Education. The budget is a working document, which serves as a guide for the year. Management utilizes the budget as a form of checks and balances. It is a document that is constantly reviewed by budget managers as well as business office staff and with Board approval will undergo several changes during the year. The budget process begins with the development of the preliminary budget and progresses to the adopted budget. At each of the interim reports throughout the fiscal year, we note revisions to income and expenditures that have occurred within those time frames. The budget before you incorporates prior year spending of LCFF targeted funds for the former EIA program but also utilizes flexibility within the LCFF to create a Local Control Accountability Plan, LCAP, where various stakeholders had a chance to provide input and feedback before the creation of the plan. The State Budget presented in January by the Governor in his Budget Proposal continued the Local Control Funding Formula, (LCFF). The formula completely eliminates the former Revenue Limit calculations and most state categorical programs, and is to be implemented over a number of years depending on state revenues. Currently the State estimates full implementation by 2020/21. The Governor s May Revision maintained the commitment to the LCFF at its January funding level despite the State recognizing increases in state revenues. His proposal also does not include any additional one-time funding for common core A budget is a plan reflecting how the district intends to use its resources. This budget is driven by philosophy and not simply numbers it represents the very best we can provide for our students and staff with the available resources. The budget reflects the commitment of the district to student learning in our community. The remarkable success of our students is evidence that our priorities are appropriate and our focus correct. This budget meets the basic needs of the district and students. Page 4 of 39 Information as of May 2014 Revise

5 We believe the keys to success in uncertain times include: Patience, courage, and flexibility Conservative plans and backup plans Great communication with stakeholders Strong financial reserves and policies Our commitment to the Board is that we will carefully monitor the budget as the year progresses. We will bring proposed changes to the Board to ensure a balanced budget that is consistent with State law and good fiscal accountability. Sincerely, Virginia Peterson & Dolores Preciado Garvey School District Acting Superintendents Page 5 of 39 Information as of May 2014 Revise

6 DISTRICT OVERVIEW Garvey School District (founded in 1892) is a pre-k-8 school district in Los Angeles County, with headquarters located in the city of Rosemead, California. It operates eight elementary schools and two intermediate schools (grades 7-8). There are ten Head Start/State Preschools one on each of the K-6 campuses and one at Duff and Williams. The District is four square miles and serves more than 5215 students from diverse backgrounds, predominantly Asian and Latin American. In addition to serving most of the southern portions of the city of Rosemead, the Garvey School District serves parts of the cities of Monterey Park and San Gabriel, as well as part of the unincorporated Los Angeles County community of South San Gabriel. Monterey Vista and Hillcrest elementary schools are located in the city of Monterey Park, while Dewey Avenue Elementary School is located in the city of San Gabriel. All other schools in the district are located in the city of Rosemead. Enrollment over time Axis Title Series Declining enrollment is a serious problem for most school districts in the state of California, and Garvey School District is no different. Since 1999, enrollment in the Garvey School District has fallen 1,905 students, from 7,164 to 5,215 (27.5%). The majority of GSD s funding is allocated to the District for every day a student attends class. This means a drop in enrollment directly affects the District s funding level. Page 6 of 39 Information as of May 2014 Revise

7 DISTRICT DEMOGRAPHICS Demographics African American 30 American Indian or Alaska Nat 10 Asian 2,912 Multiple Race 24 Hispanic or Latino 2,153 Other 4 Pacific Islander 3 White, not Hispanic 79 Total 5,215 National School Lunch Program Free & Reduced Statistics Biteley 91% Dewey 83% Emerson 92% Garvey Intermediate 80% Hillcrest 65% Monterey Vista 81% Rice 90% Sanchez 92% Temple Intermediate 89% Willard 90% Total District 85% Other 0.08% White, not Hispanic 1.51% Pacific Islander 0.06% African American 0.58% American Indian or Alaska Native 0.19% Hispanic or Latino 41.28% Multiple Race 0.46% Asian 55.84% Page 7 of 39 Information as of May 2014 Revise

8 GOVERNOR S PROPOSED BUDGET MAY REVISE The May Revision is, by statute, the Governor s last chance to provide his Budget proposals to the Legislature. It may differ from January s proposal only slightly, or be dramatically different. For the May Revision is in keeping with the general theme of the Governor s January budget proposal, it s about the economics and accountability. Revenues in the State remain strong yet slow. The Local Control Funding Formula, LCFF, is now the law. The LCFF provides widely disparate increases No district loses funding, but some don t gain much Proposition 30 has provided the State with revenue to offset other State funds sent as part of the new Local Control Funding Formula (LCFF) However, the Governor projects slower growth for Proposition 98 funding is increased by higher State revenues Much of the increase is used to quicken the pace of deferral buy backs, and to fund the implementation of the LCFF. Compared to prior years, the proposed State Budget faces considerably less risk of falling out of balance. Unlike the in prior year spending plans, this budget is not dependent upon voter approval of a major tax initiative to avoid further cuts. Proposition 30 is providing both sales tax and income tax revenues The overall economic outlook is the best it has been in more than five years The Governor s May Revision while recognizing the additional $2.4 billion in additional state revenues, there are no real changes to Prop 98 funding from January. Page 8 of 39 Information as of May 2014 Revise

9 PROPOSITION 98, 30 & LCFF Proposition 98 is the constitutional amendment that is supposed to provide a minimum guarantee of funding for K-12 education and the community colleges based on the prior year s funding level, adjusted for workload changes and inflation. Since the state revenues have increased $2.4 billion while the Proposition 98 minimum guarantee has increased by only $242 million over that same time period. For Proposition 98 is projected to decline by $700 million. Proposition 30, which was approved by voters in November 2012, to temporarily increase state sales tax and income tax rated for high-income earners is set to expire before the fiscal year. o The 0.25% sales tax will expire in the fiscal year. o The personal income tax increase will expire in the fiscal year. The Governor has remained strong in his support of the LCFF apportioning $4.5 billion to continue implementation of the LCFF. Page 9 of 39 Information as of May 2014 Revise

10 LOCAL CONTROL FUNDING FORMULA (LCFF) The 2014/15 fiscal year marks the second year of the new school funding distribution model called Local Control Funding Formula, or LCFF. The LCFF changed the way funding is calculated and distributed to school districts. The model is a much simpler way to distribute base amounts across the state with local adjustment factors for economically dis-advantaged students. Below is a pictorial representation of the formula: ADJUSTMENTS $ Per Student Base Amount Demographics (Low income, English Learner, and/or Foster Youth) TOTAL LCFF Page 10 of 39 Information as of May 2014 Revise

11 LOCAL CONTROL FUNDING FORMULA (LCFF) Below is the district calculation for the 2014/15 fiscal year. y Grade Span Greater of Current Yr or Prior Yr P2 Graded ADA Proportion of Total ADA Greater of Current Yr or Prior Yr Ungraded ADA (Total*Proportion) Educated Special Ed/Comm unity Day Funded ADA A-1 K-3 2, % , A , % , A , % , A % A-5 Total: 5, % , BASE GRANT: Funded ADA Year Total Span Grant Rate Year Grant Rate B-1 K-3 2, $ 6,952 $ 59 $ 7,011 $ 15,133,652 Grade Line No. Prior Year Base Current Current Year Base B , $ 7,056 $ 60 $ 7,116 $ 12,380,802 B , $ 7,266 $ 62 $ 7,328 $ 8,914,295 B $ 8,419 $ 72 $ 8,491 $ - B-5 Total Base Grant $ 36,428,749 AUGMENTATION GRANTS: g ( ) C-1 (zero if EC Section (d)(3) condition not met) $ 1,573,900 C Augmentation (Current Year Base Grant Line B-4 x 2.6%) $ - C-3 Total Augmentation Grants (C-1 + C-2) $ 1,573,900 SUPPLEMENTAL AND CONCENTRATION GRANTS: D-1 Prior Year Total Enrollment 5,215 D-1a Current Year Total Enrollment 5,146 D-1b 2-Year Average Enrollment p p ( g, 5,181 D-2 Meal and Foster Youth) p p ( g, 4,455 D-2a Meal and Foster Youth) 4,396 D-2b Two Year Average Unduplicated Counts 4,426 D-3 Two Year Average % of Enrollment Eligible for Supplemental Add-on (D-2b/D1b) 85.43% D-4 Supplemental Add-on (20% x D-3 x (B-5 + C-3)) $ 6,493,133 D-5 % of Enrollment Eligible for Concentration Add-on (if D-3<55%, enter 0, D-3 minus 55%) 30.43% D-6 Concentration Add-on (50% x D-5 x (B-5 + C-3)) $ 5,782,103 TRANSPORTATION AND TIIG GRANTS: E Transportation Funding Add-on (no COLA) $ 201,292 E TIIG Funding Add-on (no COLA) $ 10,248 TOTAL LCFF Entitlement/Target F-1 Total LCFF Entitlement/Target (B-5 + C-3 + D-4 + D-6 + E-1 + E-2) $ 50,489,424 Current Year New HOLD HARMLESS CALCULATION G Total Categorical Funding (Including Transportation and TIIG) $ 5,967,908 G Hold Harmless Revenue Limit Per ADA $ 5, G Gap Funding per ADA $ G-4 Total Prior Year per ADA Rate (G-2 + G-3) $ 5, G-5 Current Year Funded ADA 5, G-6 Total Prior Year's Gap Funding per ADA x Current Year Funded ADA (G-4 x G-5) $ 27,938,332 G-7 Funding (G-1+G-6) $ 33,906,240 Current Year TOTAL LCFF FUNDING H-1 Difference between Total LCFF Target and Current Year Hold Harmless(GAP) (Lines F1 - $ 16,583,184 H-2 GAP Funding (28.06% for Current Year) $ 4,653,241 H-3 ERT Funding $ - H-4 Current Year Funding (G-7 + H-2 + H-3) $ 38,559,482 Page 11 of 39 Information as of May 2014 Revise

12 ASSUMPTIONS FOR THE DEVELOPMENT OF THE BUDGET The accuracy of the District's budget projection is only as good as the assumptions that are used in developing the budget. If the assumptions are wrong, so too will be the budget. As a consequence, the assumptions--at least the primary ones--have to be carefully considered in evaluating the accuracy of next year's income and expense. Often, the assumptions for budget development are revised several times during a fiscal year. Since it is impossible to accurately predict all of the assumptions that are needed in budget development, Garvey School District updates the budget and the assumptions three times after the original budget is adopted. The assumptions are updated with a revision that occurs within 45 days after the adoption of the State Budget and with two interim reports that are delivered to the Board of Education in December and March of each fiscal year. The assumption table highlights the below: Description 1. ADA percentage change over prior year, and estimated loss (Reflects 7.68 ADA less than 13/14) Financial Assumptions for Budget Development % 0.15% Adopted Budget % (7.68) Projected Budget % Projected Budget 0.08% (3.90) 0.00% - 2. LCFF GAP Funding 28.05% $ 4,651, % $ 4,294, % $ 2,120, EIA Funding continued thourgh LCFF supplemental/concentration 0.000% $ 1,759, % $ 1,759, % $ 1,759, Required Proportionality Increase LCFF Supplemental/concentration 14.00% $ 2,573, % $ 1,266, % $ 1,859, No more Common Core State Standards implementation funds $0 $ (1,056,800) $0 $ - $0 $ - 6. District s estimated Unrestricted Beginning Balance $ 5,730,125 $ 5,269,673 $ 5,816, Settlement with unions increased base salaries, education and 3% $ 877,305 3% $ 877,305 3% $ 877,305 anniversary stipends 3% from 13/14 salary budgeted amount 8. STRS Rate increase 1.25% $ 219, % $ 152, % $ 175, % $ 11, % $ 53, % $ 100,624 PERS rate increase Page 12 of 39 Information as of May 2014 Revise

13 65% of the District s revenues are generated from the District s LCFF calculation. population it serves. %. GENERAL FUND REVENUES, Most of the District s General Fund revenue is generated from the District s LCFF, which yields funds based on a state-determined base grant by grade range with additional funds based on socioeconomically disadvantaged students. Public education - unlike any other public agency receives most of its revenue based on the General Fund Revenues Transfers In 8% Beginning Balance 13% Other Local 7% Other State 18% Federal Revenues 8% LCFF 65% General fund revenues are budgeted at $48.5 million, of which $39.8 million are unrestricted and $8.7 million are restricted Proposed Revenues Unrestricted Restricted Total Fund LCFF Sources $38,559,482 $- $38,559,482 Federal Revenues 150,000 4,299,440 4,449,440 Other State Revenues 823,021 1,797,529 2,620,550 Other Local Revenues 297,500 2,573,576 2,871,076 Total Revenues $39,830,003 $8,670,545 $48,500,547 Page 13 of 39 Information as of May 2014 Revise

14 It takes people to teach students, and 76% of the District s total expenditures are committed to the employees of the District. GENERAL FUND EXPENDITURES, Most of the expenditures of the District are committed to employees salaries and benefits. It takes people to teach students, and in Garvey, 76% of the District's budgeted expenditures are for the services of District employees. Employee salaries are divided into separate line items. Certificated salaries include Teachers, Nurses, Counselors, and others who provide services that require credentials from the State of California. Classified salaries include all of the support personnel in the District, including secretaries, accountants, painters, custodial, maintenance and grounds personnel Proposed Expenditures Certificated Salaries 23,182, % Classified Salaries 7,086, % Employee Benefits 8,832, % Books & Supplies 2,681, % Services & Other Op Exp. 6,755, % Other -206, % Transfers Out 224, % TOTAL 48,654, % 47% of the budget goes towards Certificated positions, 14% to Classified, 184% to Benefits. General Fund Expenditures - Restricted and Unrestricted Health & Welfare Benefits plus Statutory costs represent 1/3 of payroll. These costs include medical, dental, life insurance, vision, retirement, and workers' i Other 7.52% Transfers Out 0.47% Ending Balance 9.57% Certificated Non- Management 38.96% Services & Other Op Exp 13.14% Books & Supplies 5.21% Employee Benefits 18.38% Management 5.16% Classified Non- Management 9.46% Page 14 of 39 Information as of May 2014 Revise

15 DISTRICT RESERVES & NET ENDING BALANCE, TO A school district s Net Ending Balance is a district s reserve account to fund unforeseen events or pay for multi-year needs Revenues that have not been expended during a budget year are carried over into the subsequent year and identified as the District's "Net Ending Balance." In most cases, this is the only reserve account that a school district has for general operational purposes. The Net Ending Balance of one year becomes the Net Beginning Balance of the subsequent year. Included within the projected Net Ending Balance is a "Reserve for Economic Uncertainties," which is a minimum balance that the State of California requires to be retained to cover unforeseen shortfalls in revenues or higher-than-expected expenditures. The State's minimum "Reserve for Economic Uncertainties" for Garvey School District is 3% of the total General Fund expenditures. Many districts have reserves that are higher than the minimum state requirement, due to the significant fluctuations in public education revenues and/or due to local circumstances and risk factors. This graphical representation shows how over the last six previous years the district has greatly reduced the amount of undesignated/unappropriated fund balance due to continued deficit spending. In the budget, there is a reserve in the amount of state required increased spending on the socio-economically disadvataged kids in the LCAP. 14,000,000 12,000,000 10,000,000 8,000,000 6,000,000 4,000,000 2,000,000 - Components of Ending Fund Balance Other Commitnents Legally Restricted Balance Undesignated/Unappropriated LCFF Proportionality next yr Designated for Economic Uncertainties Page 15 of 39 Information as of May 2014 Revise

16 ATTENDANCE HISTORY AND PROJECTIONS FOR The most significant characteristic for determining District income is the calculation of the average number of students that are in school and in attendance on a daily basis. This average daily attendance or ADA is multiplied by the District's LCFF per ADA to determine the total LCFF income for the District. Garvey has projected that the ADA for will be 5, ADA is then multiplied by the District's LCFF total grant amount per grade range generate the District's total LCFF State income for the new fiscal year. Since ADA is such an important part of the District's income base, the projection of ADA for this next fiscal year is an important part in projecting the District's income. Even small fluctuations in the District's ADA can mean tens of thousands of dollars as a gain or loss of income. District attendance records are monitored monthly and ADA is updated throughout the year to ensure that the projected LCFF income matches the District's budgeted or revised projections. Public schools are the only agencies that receive income based on the population they serve. Cities or counties, as an example, do not have either increases or decreases in their revenue based on the number of citizens in their community. Public schools, however, receive most of their income based on attendance and if a student misses even one day in Garvey, the District loses approximately $41. The state does not pay the District for enrollment--just attendance--so all of the costs of setting up the instructional program will be a loss unless the student attends every day. The chart below illustrates the relationship of enrollment to ADA. Staff is cautious in forecasting ADA, decline of 7.68 was built into the budget. Historic Enrollment & Attendance 7,000 6,000 5,000 4,000 3,000 2,000 1, Enrollment ADA Page 16 of 39 Information as of May 2014 Revise

17 LOTTERY INCOME AND ITS HISTORY Lottery income is not a stable source of income for the district, but instead has ranged from a low of $77 per ADA in to a high of $148 in Since the income is not consistent, the expenditures have also varied widely. Since , school districts have been required to use 50% of the growth in Lottery allocations for the purchase of instructional materials. In , it is projected that California school districts will receive $126 per ADA in unrestricted funds and $30 per ADA restricted for instructional materials purchase. Garvey School District uses lottery funds for school site unrestricted budgets. The District is proud of its management of the Lottery expenditures for student needs and enhancements, and hopes to see this significant source of funding grow over time. Lottery Income History to Restricted Unrestricted 140 Dollars per ADA Page 17 of 39 Information as of May 2014 Revise

18 APPENDIX A: BUDGET TIMELINES AND DECISION MAKING POINTS There are numerous opportunities for the public to interact with the school district regarding the development of the school district s budget. Participation and comments by the community are always welcome, but there are some points when it is more advantageous for community participation than others. Those months showing an asterisk (*) reflect times when comments from the community are especially welcome. The following identifies the critical developmental steps in: Budget development calendar Budget monitoring cycles Closing and auditing prior year revenues and expenses Budget Develop ment Calendar December January The process of developing the budget begins with a draft budget calendar. The draft calendar is reviewed and finalized by staff for presentation to the Board of Education for adoption in January. The calendar will list each of the incremental steps in the sequence of budget development. In January the budget calendar is presented to the Board of Education for adoption and it is likely that budget guidelines will be reviewed, revised, and a draft is made available for public review. The Governor s proposed State Budget is released on January 10 of each year, and a discussion regarding the impact on the district is reviewed and highlighted with the Board of Education shortly thereafter. February/March During these two months, the early guides regarding budget development are completed, and planning documents for district staff are distributed and then returned to the district office. Page 18 of 39 Information as of May 2014 Revise

19 Appendix A Budget Timelines and Decision-making Points April* Development of the first preliminary budget is in the works. Board of Education priorities are considered for inclusion in the preliminary budget and potential expansions or reductions in program and personnel are completed. May* June* July August* In May, the Governor releases his May Revise with his proposed amendments for the development of the subsequent year s budget for the State of California. The characteristics of the May Revise and its impact on public education are an important guide for determining the direction of the following year s fiscal options. The district Governing Board will continue to evaluate the proposed budget for the coming fiscal year. Final study sessions and hearings by the Board of Education are held on the development of the budget for the coming year. The public is welcome to comment on the proposed budget. The budget is adopted prior to July 1 of each year. In accordance with the State Constitution, the State Budget is adopted, and the process of closing the district s books on the prior fiscal year s revenues and expenditures begins. These two actions establishment of prior-year revenues, expenses, and the district s ending balance, and the adoption of the State s final support levels for public education are important steps in development of the final district expenditure plan. In accord with State law, the district must amend its adopted budget to reflect the State of California s actions within 45 days after the Governor s signature on the State Budget. This revision is an important step in determining the final expenditure plans for the coming fiscal year. Concurrently, the county superintendent s review and comments on the proposed budget are received by the district, and if the actions of the local agency have been disapproved by the county superintendent, additional review steps must be taken in the budget development. An important step in the development of the final budget is an update on the beginning fund balances to reflect the unaudited actuals from the closeout of the prior fiscal year that ended on June 30. This beginning balance, along with the revised revenues as adopted in the Governor s final budget, create the financial characteristics of the expenditure plan of the coming fiscal year. Page 19 of 39 Information as of May 2014 Revise

20 Appendix A Budget Timelines and Decision-making Points Budget Monitoring Cycles October There are two points during the fiscal year when the local agency reviews the revenues and expenditures to date. The First Interim Report covers the district s expenditures through October 31, and provides projections of revenues and expenses for the balance of the fiscal year. January* The Governing Board receives the First Interim Report in public session and reaches a conclusion as to whether its fiscal condition is positive, qualified, or negative. The Interim Report will reflect the projected ending balance of the district for the current fiscal year based upon actual revenues and expenditures through October 31 and estimated actuals for the balance of the fiscal year. The Second Interim Report reflects actual revenues and expenditures through January of each year and also projects revenues and expenses through the balance of the fiscal year. March* The Governing Board receives the Second Interim Report and again must reach conclusions as to whether the district has a positive, qualified, or negative certification. This is the final interim review of the district s revenues and expenditures unless the Governing Board concludes that a Third Interim Report would also be helpful to the Board of Education. Closing and Auditing the Prior Fiscal Year July August The Governing Board must also take actions to close the prior fiscal year and to review the district s revenues and expenditures. During the summer months, the district s staff closes the books for the prior fiscal year and develops estimated actual revenues and expense for each of the district accounts. In October, the final balances are reported to the State of California as part of an annual budget report. Page 20 of 39 Information as of May 2014 Revise

21 Appendix A Budget Timelines and Decision-making Points December* The Governing Board additionally appoints an independent auditor to review the prior year s revenues and expenditures to develop the annual audit report and to fulfill obligations that are imposed on school district by an audit guide released by the California State Controller. In April, independent auditors begin their preliminary work on the annual audit and generally complete their work by the fall months. On or prior to December 15, the audit report is received by the Governing Board and any concerns either as part of the financial review or as part of the management notations are highlighted by the district s independent auditor. Copies of the district s budget materials are available to the public for review. The entire district budget, interim reports, and audit reports are available from the district business office, the district web site, and are also available to the public at the time they are being considered by the Board of Education Page 21 of 39 Information as of May 2014 Revise

22 Appendix B GENERAL FUND APPENDIX B: GENERAL FUND MULTI-YEAR INFORMATION General Fund (Fund 01) Unrestricted General Fund Multi-year Restricted General Fund Multi-year Combined General Fund Multi-year Page 22 of 39 Information as of May 2014 Revise

23 Appendix B GENERAL FUND Unrestricted GARVEY SCHOOL DISTRICT MYP General Fund - Unrestricted FISCAL YEAR 2014/ / /17 Object Projected Projected Projected Description Codes A. RA. REVENUES AND OTHER FINANCING SOURCES (Enter estimated projections for subsequent years) 1. LCFF ,559,482 41,755,517 43,688, Federal Revenues , , , Other State Revenues , , , Other Local Revenues , , , Other Financing Sources (4,682,920) (4,801,346) (4,854,732) 6. Total (Sum line A1 thru A5) 35,147,082 38,151,366 40,031,352 B. EXPENDITURES AND OTHER FINANCING USES 1. Certificated Salaries a. Base Salaries 17,539,994 19,651,706 20,435,033 b. Step & Column Adjustment 131, , ,263 c. LCAP Increases 1,980, ,939 35,690 d. Savings due to retirees 1. Certificated Salaries ,651,706 20,435,033 20,623, Classified a. Base Salaries step included 4,031,127 5,010,468 5,512,519 b. Step & Column Adjustment 30,233 37,579 41,344 c. LCAP Changes 949, ,473 13,163 d. FTE reconciliation/ add staffing 2. Classified ,010,468 5,512,519 5,567, Employee Benefits ,090,483 7,338,650 7,705, Books and Supplies ,677,399 2,823,276 3,723, Services and Other Operating Expenditures ,626,603 2,789,119 3,121, Capital Outlay , , , Other Outgo 7000s 224, Indirect (1,188,060) (1,188,060) (1,188,060) 9. Total (Sum lines B1 thru B10) 35,192,665 37,810,537 39,654,072 C. NET INCREASE (DECREASE) IN FUND BALANCE (Line A6 minus line B11) D. FUND BALANCE (45,583) 340, , Net Beginning Fund Balance (form01, Line F1e) 5,553,648 5,508,065 5,848, Ending Fund Balance (Sum lines C and D1) 5,508,065 5,848,894 6,226, Designated for Economic Uncertainty 3% 1,459,648 1,541,995 1,595, Revolving and Inventory 85,303 85,303 85, LCFF GAP increase 2,950,789 2,306,727 1,987,630 7 Combined Undesignated Amount 1,012,325 1,914,869 2,557,860 Page 23 of 39 Information as of May 2014 Revise

24 Appendix B GENERAL FUND Restricted GARVEY SCHOOL DISTRICT MYP General Fund - Restricted FISCAL YEAR 2014/ / /17 Object Projected Projected Projected Description Codes A. RA. REVENUES AND OTHER FINANCING SOURCES (Enter estimated projections for subsequent years) 1. LCFF Federal Revenues ,299,440 4,299,440 4,299, Other State Revenues ,797,529 1,797,529 1,797, Other Local Revenues ,573,576 2,573,576 2,573, Other Financing Sources ,682,920 4,801,346 4,854, Total (Sum line A1 thru A5) 13,353,465 13,471,891 13,525,277 B. EXPENDITURES AND OTHER FINANCING USES 1. Certificated Salaries a. Base Salaries 3,513,010 3,530,575 3,548,228 b. Step & Column Adjustment 17,565 17,653 25,547 c. Cost-of-Living Adjustment d. Savings due to retirees 1. Certificated Salaries ,530,575 3,548,228 3,573, Classified a. Base Salaries step included 2,065,300 2,075,627 2,086,005 b. Step & Column Adjustment 10,327 10,378 10,430 c. Cost-of-Living Adjustment includes mgmt. d. FTE reconciliation/ add staffing 0 2. Classified ,075,627 2,086,005 2,096, Employee Benefits ,742,132 1,780,458 1,823, Books and Supplies ,004,019 1,019,107 1,044, Services and Other Operating Expenditures ,128,433 4,174,009 4,005, Capital Outlay Other Outgo 7000s Indirect 981, , , Total (Sum lines B1 thru B10) 13,462,274 13,589,295 13,525,288 C. NET INCREASE (DECREASE) IN FUND BALANCE (Line A6 minus line B11) D. FUND BALANCE (108,808) (117,404) (12) 1. Net Beginning Fund Balance (form01, Line F1e) 1,820,063 1,711,255 1,593, Ending Fund Balance (Sum lines C and D1) 1,711,255 1,593,850 1,593,839 Page 24 of 39 Information as of May 2014 Revise

25 Appendix B GENERAL FUND Unrestricted and Restricted (Combined) GARVEY SCHOOL DISTRICT MYP General Fund - Combined FISCAL YEAR 2014/ / /17 Object Projected Projected Projected Description Codes A. RA. REVENUES AND OTHER FINANCING SOURCES (Enter estimated projections for subsequent years) 1. LCFF ,559,482 41,755,517 43,688, Federal Revenues ,449,440 4,449,440 4,449, Other State Revenues ,620,550 2,634,029 2,634, Other Local Revenues ,871,076 2,784,272 2,784, Other Financing Sources Total (Sum line A1 thru A5) 48,500,547 51,623,258 53,556,629 B. EXPENDITURES AND OTHER FINANCING USES 1. Certificated Salaries a. Base Salaries 21,053,004 23,182,282 23,983,261 b. Step & Column Adjustment 149, , ,810 c. Cost-of-Living Adjustment 1,980, ,939 35,690 d. Savings due to retirees Certificated Salaries ,182,282 23,983,261 24,197, Classified a. Base Salaries step included 6,096,427 7,086,095 7,598,524 b. Step & Column Adjustment 40,560 47,957 51,774 c. Cost-of-Living Adjustment includes mgmt. 949, ,473 13,163 d. FTE reconciliation/ add staffing Classified ,086,095 7,598,524 7,663, Employee Benefits ,832,615 9,119,109 9,528, Books and Supplies ,681,418 3,842,383 4,768, Services and Other Operating Expenditures ,755,036 6,963,128 7,127, Capital Outlay , , , Other Outgo 7000s 224, Indirect -206, , , Total (Sum lines B1 thru B10) 48,654,939 51,399,832 53,179,360 C. NET INCREASE (DECREASE) IN FUND BALANCE (Line A6 minus line B11) D. FUND BALANCE (154,392) 223, , Net Beginning Fund Balance (form01, Line F1e) 7,373,711 7,219,319 7,442, Ending Fund Balance (Sum lines C and D1) 7,219,319 7,442,745 7,820, Designated for Economic Uncertainty 3% 1,459,648 1,541,995 1,595, Revolving and Inventory 85,303 85,303 85, Restricted 1,711,255 1,593,850 1,593, LCFF Proportionality increase required for next year 2,950,789 2,306,727 1,987,630 Page 25 of 39 7 Combined Undesignated Amount Information as of May 2014 Revise 1,012,325 1,914,869 2,557,860

26 Appendix C OTHER FUNDS BUDGET APPENDIX C: OTHER FUNDS BUDGET OTHER FUNDS Special Revenue Funds Child Development Fund (Fund 12) Cafeteria Fund (Fund 13) Deferred Maintenance Fund (Fund 14) Capital Projects Funds Building Fund (Fund 21) Capital Facilities Fund (Fund 25) County School Facilities (Fund 35) Debt Service Fund Bond Interest and Redemption Fund (Fund 51) Page 26 of 39 Information as of May 2014 Revise

27 Appendix C OTHER FUNDS BUDGET Fund Description A. A. REVENUES AND OTHER FINANC Object (Enter estimated projections for subs Codes 1. LCFF $ - $ - $ - $ - $ - $ - $ - 2. Federal Revenues $ 4,295,914 $ 2,725,670 $ - $ - $ - $ - $ - 3. Other State Revenues $ 362,817 $ 210,361 $ - $ - $ - $ - $ - 4. Other Local Revenues $ 214,453 $ 281,000 $ 2,000 $ - $ 176,000 $ 12,000 $ 2,016, Other Financing Sources $ - $ - $ 224,065 $ - $ - $ - $ - 6. Total (Sum line A1 thru A5) $ 4,873,184 $ 3,217,031 $ 226,065 $ - $ 176,000 $ 12,000 $ 2,016,207 B. EXPENDITURES AND OTHER FINANCING USES 1. Certificated Salaries $ 1,403,927 $ - $ - $ - $ - $ - $ - 2. Classified $ 1,198,856 $ 1,299,025 $ - $ - $ - $ - $ - 3. Employee Benefits $ 1,133,137 $ 434,356 $ - $ - $ - $ - $ - 4. Books and Supplies $ 52,410 $ 1,445,583 $ 35,000 $ - $ - $ 10,000 $ - 5. Services and Other Opera $ 1,084,854 $ 313,030 $ 121,065 $ - $ 81,000 $ 15,000 $ - 6. Capital Outlay $ - $ 138,450 $ 70,000 $ - $ 95,000 $ 2,950,000 $ - 7. Other Outgo 7000s $ - $ 206,572 $ - $ - $ - $ - $ 1,995, Total (Sum lines B1 thru B7) $ 4,873,184 $ 3,837,016 $ 226,065 $ - $ 176,000 $ 2,975,000 $ 1,995,906 C. NET INCREASE (DECREASE) IN FUND BALANC (Line A6 minus line B11) D. FUND BALANCE 1. Net Beginning Fund Balance (form01, Li $ - $ 1,595,791 $ 187,050 $ - $ 173,368 $ 3,555,783 $ 1,778,247 Audit Adjustments GARVEY SCHOOL DISTRICT OTHER FUNDS - BUDGET 2014/15 FISCAL YEAR $ (0) $ (619,985) $ - $ - $ - $ (2,963,000) $ 20, Ending Fund Balance (Sum lines C and D1 $ (0) $ 975,806 $ 187,050 $ - $ 173,368 $ 592,783 $ 1,798,548 Page 27 of 39 Information as of May 2014 Revise

28 Appendix D SUPPLEMENTAL FORMS APPENDIX D: SUPPLEMENTAL FORMS SUPPLEMENTAL FORMS Cash Flow Page 28 of 39 Information as of May 2014 Revise

29 Appendix D ESTIMATED CASH FLOW Resource Between and BUDGETED CASH FLOW Description Object Codes July August September October November December January February March April May June Totals Beginning Cash Balance ,852,520 9,127,241 5,081,640 4,057,042 2,311,460 1,758,639 2,915,697 2,591,868 1,449,491 3,009,511 2,302,602 2,014,377 38,472,088 Principal Apportionment ,430,830 1,430,830 2,575,494 2,575,494 2,575,494 2,575,494 2,575,494 2,575,494 2,575,494 2,575,494 2,575,494 2,575,494 28,616,604 EPA Funds ,753, ,753, ,753, ,753,446 7,013,784 County and District Taxes ,804 35,676 25, , , , ,815 50, , , ,150 2,836,289 Miscellaneous Funds , , ,967 91,147 Federal Revenue , ,877-5, ,430 1,108,746 48, ,317 28, , ,775 4,449,440 Other State Revenue ,600 77, , , ,494 50, , , , , , ,891 2,626,372 Other Local Revenue , , , , , ,577 26, , ,672 28,792 67, ,003 2,871,076 Undefined Interfund Transfers In Other Financing Sources Contributions Other Receipts/Non Revenue8xxx - TOTAL RECEIPTS 2,184,260 1,722,037 5,388,704 2,939,066 3,425,248 5,511,012 4,460,457 3,273,770 5,708,560 3,201,938 4,367,933 6,321,726 48,504,712 Certificated Salaries ,086 2,005,908 2,062,280 2,091,450 2,107,675 2,093,500 2,042,204 2,059,717 2,085,208 2,025,923 2,073,498 2,348,832 23,182,282 Classified Salaries , , , , , , , , , , , ,666 7,086,093 Employee Benefits , , , , , , , , , , , ,022 8,832,614 Books and Supplies , , , , , , , , , , , ,809 2,681,418 Serv. & Other Oper. Expendi , , , , , ,064 1,183, , , , ,518 1,028,870 6,755,036 Capital Outlay , ,000 Trsnf Indirect/Direct Support (265,582) (265,582) All Other Financing Uses , ,065 TOTAL DISBURSEMENTS 759,655 3,392,638 3,913,302 4,684,647 3,978,070 4,353,954 4,784,285 4,416,148 4,148,539 3,908,847 4,656,158 5,599,681 48,595,926 Net Operating Income/(Deficit) 1,424,605 (1,670,601) 1,475,401 (1,745,582) (552,821) 1,157,058 (323,829) (1,142,377) 1,560,021 (706,909) (288,225) 722,045 (91,214) PY Deferrals 5,850,116 5,850,116 TRANS Repayment 2,375,000 2,500,000 4,875,000 Other Balance Sheet Transac9xxx - Total Balance Sheet Acct Tra 5,850,116 (2,375,000) (2,500,000) ,116 Ending Cash Balance 9,127,241 5,081,640 4,057,042 2,311,460 1,758,639 2,915,697 2,591,868 1,449,491 3,009,511 2,302,602 2,014,377 2,736,422 Page 29 of 39 Information as of May 2014 Revise

30 Appendix D ESTIMATED CASH FLOW BUDGETED CASH FLOW Description Object Codes July August September October November December January February March April May June Totals Beginning Cash Balance ,736,422 4,238,394 2,438,901 4,064,918 2,197,786 1,640,554 2,946,986 2,563,243 1,416,144 3,143,047 2,476,643 2,165,310 32,028,346 Principal Apportionment ,557,676 1,557,676 2,803,816 2,803,816 2,803,816 2,803,816 2,803,816 2,803,816 2,803,816 2,803,816 2,803,816 2,803,816 31,153,516 Tax Relief Subventions ,918, ,918, ,918, ,918,641 7,674,565 County and District Taxes ,248 36,823 26, , , , ,019 52, , , ,668 2,927,436 Miscellaneous Funds Federal Revenue , ,877-5, ,430 1,108,746 48, ,317 28, , ,775 4,449,440 Other State Revenue ,666 77, , , ,005 50, , , , , , ,007 2,634,029 Other Local Revenue , , , , , ,971 25, , ,421 27,922 65, ,157 2,784,272 Undefined Interfund Transfers In Other Financing Sources Contributions Other Receipts/Non Revenue8xxx - TOTAL RECEIPTS 2,312,191 1,844,858 5,779,422 3,162,089 3,641,001 5,914,323 4,636,373 3,497,804 6,083,677 3,442,719 4,620,738 6,688,064 51,623,258 Certificated Salaries ,516 2,075,215 2,133,535 2,163,712 2,180,498 2,165,833 2,112,765 2,130,883 2,157,255 2,095,922 2,145,140 2,429,988 23,983,261 Classified Salaries , , , , , , , , , , , ,684 7,598,524 Employee Benefits , , , , , , , , , , , ,161 9,119,109 Books and Supplies , , , , , , , , , , , ,702 3,842,383 Serv. & Other Oper. Expendi , , , , , ,272 1,219, , , , ,473 1,060,565 6,963,128 Capital Outlay , ,000 Trsnf Indirect/Direct Support (206,572) (206,572) All Other Financing Uses TOTAL DISBURSEMENTS 810,219 3,644,350 4,153,405 5,029,221 4,198,233 4,607,892 5,020,116 4,644,903 4,356,774 4,109,123 4,932,071 5,893,526 51,399,833 Net Operating Income/(Deficit) 1,501,972 (1,799,493) 1,626,017 (1,867,132) (557,232) 1,306,432 (383,743) (1,147,099) 1,726,903 (666,404) (311,333) 794, ,425 PY Deferrals - TRANS Repayment - Other Balance Sheet Transac9xxx - Total Balance Sheet Acct Tra Ending Cash Balance 4,238,394 2,438,901 4,064,918 2,197,786 1,640,554 2,946,986 2,563,243 1,416,144 3,143,047 2,476,643 2,165,310 2,959,847 Page 30 of 39 Information as of May 2014 Revise

31 Appendix E GLOSSARY OF SCHOOL TERMS APPENDIX E: GLOSSARY OF COMMON SCHOOL FINANCE TERMS ADA Average daily attendance. There are several kinds of attendance, and these are counted in different ways. For regular attendance, ADA is equal to the average number of pupils actually attending classes who are enrolled for at least the minimum school day. In classes for adults and ROC/P, one unit of ADA is credited for each 525 classroom hours. Attendance is counted every day of the school year and is reported to the California Department of Education three times a year (see Attendance Reports). See also Concurrently Enrolled for a further definition of ADA. AB 1200 Reference to AB 1200 (Chapter 1213/1991) that imposed major fiscal accountability controls on school districts and county offices of education, by establishing significant administrative hurdles and obligations for agency budgets and fiscal practices. See especially Education Code Section 1240 et sec. and et sec. Accrual Basis Accounting Transactions are recorded when they have been reduced to a legal or contractual right or obligation to receive or pay out cash or other resources. Ad valorem taxes Taxes based on the value of property -- such as the standard property tax -- are called ad valorem taxes. The only new taxes based on the value of property that are allowed today are those imposed with a two-thirds voter approval for capital facilities bonded indebtedness. Ever since Proposition 13, properties in California are adjusted to the true market value only at the time of property transfer. Apportionment State aid given to a school district or county office of education. Apportionments are calculated three times for each school year. The First Principal Apportionment (P-1) is calculated in February of the school year corresponding to the P-1 ADA (see Attendance Reports); the Second Principal Apportionment (P-2) is calculated in June corresponding to the P-2 ADA; and, the annual recalculation of the apportionment is made in February following the school year and is based on P-2 ADA, except for programs where the annual count of ADA is used. Appropriation Bill A bill before the Legislature authorizing the expenditure of public money and stipulating the amount, manner and purpose for the expenditure items. Appropriation For Contingencies That portion of the current fiscal year's budget that is not appropriated for any specific purpose but is held subject to intrabudget transfer; i.e. transfer to other specific appropriation accounts as needed during the fiscal year. Assessed Valuation (also, assessed value) The total value of property within a school district as determined by state and county assessors. The "AV" of a school district will influence the total property tax income of a school district. The percentage growth in statewide AV from one year to the next is an important ingredient in determining appropriations levels required from the state for fully funding district and county LCFFs, as well as for Proposition 98 calculations. Attendance Reports Each school district reports its attendance three times during a school year. The First Principal Apportionment ADA, called the P-1 ADA or the P-1 count, is counted from July 1 through the last school month ending on or before December 31 of a school year. The Second Principal Apportionment ADA, called the P-2 ADA, is counted from July 1 through the last school Page 31 of 39 Information as of May 2014 Revise

32 Appendix E GLOSSARY OF SCHOOL TERMS month ending on or before April 15 of a school year. Fiscal or annual ADA is based on the count from July 1 through June 30. The final recalculation of the apportionment is based on the P-2 ADA except for adult education programs, regional occupational centers and programs and nonpublic school funding, all of which use the annual count of ADA. Also, under certain circumstances when a district has a very large influx of migrant students in the spring, a district may request the use of annual ADA in lieu of P-2 ADA. Base LCFF See LCFF. Basic Aid The California Constitution guarantees that each school district will receive a minimum amount of state aid, called "basic aid," equal to $120 per ADA or $2,400 per district, whichever is greater. "Basic aid school districts" are those eligible for the basic aid constitutional guarantee only, since all of the balance of the school districts' LCFF is funded by local property taxes. Benefit Assessment Districts See Maintenance Assessment Districts. Bonded Indebtedness An obligation incurred by the sale of bonds for acquisition of school facilities or other capital expenditures. Since 1986, districts have been able to levy a local property tax to amortize bonded indebtedness provided the taxes are approved by a two-thirds vote of the electorate. Cafeteria Plan A written plan for the health and welfare benefits of district employees, under which the employees may select from two or more particular benefits, to which payroll deductions may be paid. If the plan meets IRS regulations, the deductions (salary reductions) are not subject to income tax. The main advantage, thus, is to allow employees to purchase benefits (such as health insurance, disability protection, group life insurance, group legal protection, and dental insurance) with "beforetax" dollars. Categorical Aid Funds from the state or federal government granted to qualifying school districts for specialized programs regulated and controlled by federal or state law or regulation. Examples include programs for: children with special needs, such as special education; special programs, such as the School Improvement Program; or, special purposes, such as transportation. Expenditure of most categorical aid is restricted to its particular purpose. The funds are granted to districts in addition to their LCFFs. CBEST The California Basic Education Skills Test. Required of anyone seeking certification as a teacher, the test measures proficiency in reading, writing and mathematics. CBEDS California Basic Education Data System -- the statewide system of collecting enrollment, staffing, and salary data from all school districts on an "Information Day" each October. Certificated Personnel School employees who hold positions for which a credential is required by the state -- teachers, librarians, counselors, and most administrators. Classified Personnel School employees who hold positions that do not require a credential, like aides, custodians, etc. Page 32 of 39 Information as of May 2014 Revise