Budget Development Workshop Internal Business Services. February 16, 2018 and February 22, 2018

Transcription

1 Budget Development Workshop Internal Business Services February 16, 2018 and February 22, 2018

2 Governor s Proposals for the State Budget and K-12 Education

3 The Education Budget

4 Proposition 98: Governor s Budget Proposal The voters amended the State Constitution with the enactment of Proposition 98 in 1988 to set a minimum funding level for k-12 education and community colleges Both state General Fund and local property tax revenues apply toward meeting the Proposition 98 minimum guarantee Proposition 98 guarantee for has increased by $3.1 billion over the current year along with more than $100 million in settle-up payments for prior years The Governor s Budget Proposal includes: $1.8 billion One-time discretionary funding $167.2 million for Child Care and State Preschool to expand inclusive care and educational setting for children up to 5 years old, including children with disabilities $2.9 billion to fully fund Local Control Funding Formula (LCFF) 4

5 Proposition 98: Governor s Budget Proposal The Governor s Budget Proposal includes: $6.2 million for cost-of-living adjustment (COLA) and Average Daily Attendance (ADA) changes for COEs $59.2 million for COEs to facilitate the improvement of school districts identified as being in need of differentiated assistance $100 million for Teacher Workforce to increase and retain special education teachers $10 million for Special Education Local Plan Areas (SELPAs) to work with COE s to provide LEAs with technical assistance to improve student outcomes as part of the statewide system support 5

6 $1.8 Billion One-Time Discretionary Funding The Administration has consistently provided one-time funding to repay outstanding mandates (costs incurred to perform specified mandated activities such as child-abuse reporting, criminal background checks and uniform complaint procedures) State Mandated Costs protect schools against legislation that is passed without appropriate funding Like prior years, these funds will offset LEAs outstanding mandate reimbursement claims on a dollar-for-dollar basis The chart below shows the historical one-time discretionary funding per Average Daily Attendance (ADA) $67 $529 $214 $147 $295 The estimate for SCCOE is $445,220 based on P-2 ADA 6

7 Child Care and State Preschool The state funds nine child care and early education programs Programs are administered by the Department of Education (DOE) and the Department of Social Services Families can access child care and early education subsidies The budget increases the reimbursement rates to the provider by approximately 2.8% for those that contract directly with the DOE The budget provides for an additional 2,959 full-day slot increases $167.2 million in one-time funds to establish an Inclusive Early Education Expansion Program through a competitive grant For children aged 0 to 5 years old, including children with disabilities Provides access to appropriate settings to support their educational and developmental growth 7

8 Local Control Funding Formula (LCFF) $2.9 billion to fully fund Local Control Funding Formula (LCFF) Fully implements the funding gap for the LCFF entitlement for LEA s and charter schools two years earlier than originally projected The difference between an LEA/Charter s current funding and its target entitlement is called the LCFF gap LCFF implementation for COEs is quite different unlike LEA s and charter schools, the LCFF was fully implemented for COEs in

9 Local Control Funding Formula (LCFF) $6.2 million for COEs for cost-of-living adjustment (COLA) and ADA changes There are two LCFF funding calculations certified by the California Department of Education (CDE): County LCFF Target Entitlement, includes a COLA (estimated at 2.51% for ) County LCFF Transition Calculation does not include a COLA The SCCOE is funded on the higher amount of the two funding calculations The LCFF Transition Calculation, we do not receive a COLA SCCOE is considered flat funded as our entitlement revenue is only adjusted by minimal ADA changes for our Alternative Education program (AED) 9

10 Local Control and Accountability Plan (LCAP) The LCAP is a multi-year strategic plan created by local education agencies in collaboration with their communities to meet annual goals for all pupils and improve student outcomes. The SCCOE budget shall include the expenditures identified in the LCAP and any updates to the LCAP that will be effective for the budget year 10

11 County Oversight for Districts $55.2 million in ongoing funding for COEs to facilitate the improvement of school districts identified as being in need of differentiated assistance Determine causes of poor student performance Connect district with resources as needed All COE s will receive a base allocation COE s will also receive a supplemental allocation based on the number of districts the county identified for differential assistance $4 million in ongoing funding for a competitive grant for eight COE s to serve as leads to provide training, resources and support for other COE s to do the work to support their districts 11

12 Special Education $100 million for Teacher Workforce to increase and retain special education teachers $50 million for Teacher Residency Grant to support locally sponsored, oneyear intensive mentored and clinical teacher preparation programs $50 million for Local Solutions Grant for one-time competitive grants to develop and implement new, or expand current, local solutions to address the need for special education teachers $10 million for Special Education Local Plan Areas (SELPAs) to work with COE s to provide LEAs with technical assistance to improve student outcomes as part of the statewide system support 2.51% COLA estimated at $13.58 per ADA 12

13 Governor s California Budget Summary Link to access the Governor s proposed budget, appendices and schedules 13

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15 What s New? Current Fiscal Year ( ) Certificated Non-Management: Approved 4% salary increase from settled negotiation effective (12 months) Classified Non Management: Approved 4% salary increase from settled negotiation effective (10 months) Next Fiscal Year ( ) Certificated Non-Management: Approved 3% salary increase from settled negotiation effective (12 months) Classified Non Management: Approved 3% salary increase from settled negotiation effective (10 months) Classified and Certificated Management (Excludes contract management) 0% salary increase CalSTRS Employer Rate: 14.43% CalPERS Employer Rate: % Classified and Certificated Management (Excludes contract management) 0% salary increase CalSTRS Employer Rate: 16.28% (Statutory) CalPERS Employer Rate: 17.70% (Projected) 15

16 Increases In CalSTRS and CalPERS Employer Contributions The budget includes $6.2 billion for state contributions to CalPERS and $3.1 billion to CalSTRS but the employer contribution continues to rise STRS 14.43% 16.28% 18.13% 19.10% 19.10% PERS % 17.70% 20.00% 22.70% 23.70% 16

17 What s New? Current Fiscal Year ( ) Workers Compensation Rate for lower incident programs 1.51% Other Post Employment Benefits (OPEB) (Objects 3701/02 and 3751/52) - $3,170 per FTE SCCOE standard Indirect Rate % For a one-time contribution from the General Fund, Programs use object-sub object One-Time Contribution One-time contributions require the Chief Business Officer and Superintendent s approval Next Fiscal Year ( ) Workers Compensation Rate for lower incident programs 1.03% Other Post Employment Benefits (OPEB) (Objects 3701/02 and 3751/52) - $3,708 per FTE SCCOE standard Indirect Rate-12.64% Back out any One-Time Contribution unless approval has been obtained by Cabinet and Superintendent One-time contributions for budget adoption require approval of all Cabinet Chiefs and the Superintendent 17

18 Budget Development Overview

19 Budget Development Schedule Smaller Programs Funds: 800, 88X, and 93X Larger Programs Funds: 100, 120, 130, 350, 67X, 801, 810, 820, 850, 860, 870, 890, 920, 921, 922, 940, 950, 990 and remainder of 800, 88X, 93X Smaller Programs Program Managers submit budgets to Program Accountants Budgets returned for final review to Program Managers Program Managers submit final budgets to Branch Chiefs for review Larger Programs March 7, 2018 March 22, 2018 March 22, 2018 April 2, 2018 April 2-24, 2018 April 13 May 1, 2018 Branch Chiefs submit final budgets to Budget Office April 24, 2018 May 1,

20 SCCOE Budget Development Assumptions Detail on slide #25: Increased CalPERS and CalSTRS rates Reduced Worker s Compensation rate to 1.03% for lower incident programs Adjusted Other Post Employment Benefit (OPEB) rates to Actuarial Study Incorporated salary settlements for Review of vacant positions (Cabinet) Scale back on materials and supplies, travel, mileage, catering and other operating expenditures Budget using the indirect rate approved for your program (slide #22) 20

21 Budget Development Considerations/Assumptions Increase fees for service Affirmations of funding sources and ADA projections New Grants / New Funding Sources Lottery revenues will be budgeted at $146 per ADA for Unrestricted and $48 per ADA for Restricted One-time funding requests for contributions from the general fund for will be initiated and reviewed by all Cabinet members If one-time requests are approved, budget staff will notify the program manager and accountant for the program of the amount approved so it may be incorporated in the budget during our budget development process 21

22 Budget Guidelines Indirect Cost Rates (ICR) SCCOE CDE Preliminary Proposed ICR: 12.64% (Pending for final approval from CDE) All programs; exceptions for funds noted below and grant or contract agency stipulations that are less than 12.64% SCCOE Proposed Reduced ICRs Special Education: 9.50% Head Start: 12.05% Child Development: 8.00% Child Nutrition: 5.25% ( ; TBD by CDE) Donations and OYA Charter: 0.00% (unless stated otherwise) Reduced Indirect Cost Rate Requests Submit the Reduced Indirect Cost Rate Waiver Form for approval by the CBO and Superintendent for the grant or contract agency exceptions 22

23 Budget Guidelines Materials, Supplies and Other Book & Supplies, Services and Other Operating Expenditures Object Codes 4xxx 5xxx Working budget as of is used for preliminary budget No COLA increases On-going budget increases for these object codes must be justified in writing using the Program Addition Form Authorization required by the Branch Chief; final approval by the Cabinet and Superintendent before submission to the Program Accountant Capital Outlay Object Codes 6xxx Capital Outlay requests should be paid directly from your individual fund or program Exception: Fund 800 programs on the schedule for computer replacements will be charged to the Capital Outlay budget, not individual program budgets 23

24 Budget Guidelines Program Changes Requested Program Additions and Reductions Forms Changes need recommendation for approval by Branch Chief Final approval will be discussed and a decision made at Cabinet Budget Increase Request Form for one-time funding requests only, to be initiated and reviewed by all Cabinet members Categorical Programs Balance expenditure budgets to revenue budgets Include the maximum allowed amount of indirect cost 24

25 Budget Guidelines Benefit Rates CalSTRS Employer Rate 16.28% Statutory CalPERS Employer Rate 17.70% Projected Social Security (OASDI) 6.20% Max Taxable Earnings $128,400 Unemployment Insurance (UI) 0.05% Medicare 1.45% Health & Welfare Workers Compensation Other Post Employment Benefits (OPEB) $13,800 per employee for open positions only 1.03% (low incident programs) 5.28% (high incident programs: Special Education, Transportation, Head Start, and Child Development) Funds 120, 820, 860, 950, 990 $3,708 per FTE Object codes 3701 and 3702: $1,703 per FTE (Retirees) Object codes 3751 and 3752: $2,005 per FTE (Active Employees) 25

26 Budget Guidelines Approved Salary Increases Approved salary increases for (Based on Collective Bargaining Agreements) ACE/CTE Members, Psychologist and Social Workers Effective (12 Months): 3% assumption for all permanent positions 0% used for Leadership SEIU Members Effective (10 Months): 3% assumption for all permanent positions 0% used for Contract Management & Board Members (will adjust accordingly during budget development) 26

27 Phone Bills-Paid From Telecommunications Budget Discount from E-rate Program ends June 2018 This program helpes to ensure that schools and libraries can obtain high-speed Internet access and telecommunications at affordable rates. Budgets need to be updated Base your adopted budget on prior year ( ) actual expense Object code 5900 Prepare budget revision by First Interim (October 2018) after several months of actual charges in in order to annualize it Another budget revision in Second Interim (January 2019), if necessary Contact Steven Mitome (extension 6897) in Technology Service Branch for the following: Addition or cancellation of phone line; close a site location Review of your program s phone bill 27

28 Phone Bills-Paid From Telecommunications Budget Use the fiscal year actuals as the bases for your budget Object code 5900 does not encumber if your phone bill is paid out of the Fund 800 telecommunications budget 28

29 Significant Dates January 2018 Update on Governor s Budget Proposal for Budget Development begins for March 2018 Second Interim Report May 2018 Governor s revision to the proposed Budget (May Revise) Budget Study Committee Meeting June 2018 Public Hearing for Budget and LCAP Adoption of Budget and LCAP for

30 Budget Development Terminology

31 Budget Development Terminology Adopted or Approved Budget Annual Budget Adopted by the Board prior to start of the fiscal year Budget revisions do not change the adopted budget Working Budget Changes constantly as budget revisions are processed Revised Budget Snapshot of the budget as of the most recent Board approval of budget transfers 31

32 Budget Development Terminology Carryovers Unused funds from prior year Carryover is not included in the adopted budget Accounting Services will determine the carryover amount available to budget in the new fiscal year, based on closing of books Carryover notification in September in the form of a spreadsheet Submit carryover spreadsheet attached to a budget revision from for processing 32

33 Budget Development Terminology Carryovers continued Exception: to cover the cost of a current FTE position for Approved on an individual basis Submit the Carryover Request Form for approval to justify the request If the request is approved: Submit budget revision in current year to reallocate the approved amount in the current year budget to object code 5898 to hold the unspent funds for the following year 33

34 Budget Development Terminology Position Control Organizational structure connected to an Authorized Position description Used for salary and benefit projections during budget development Projects for open positions Does not project for temporary position assignments, extra time and overtime, (Non-FTE pay positions) Does not project for Teacher In Charge (TIC) stipend 34

35 Budget Development Terminology Comparative Budget Report The 7 column report you received at the workshop today Preliminary Budget Represents salary and benefit projections projected from position control data to include: Step and column increases 3% assumption for salary increases for certificated nonmanagement 2.5% assumption for salary increases for classified nonmanagement The Working Budget as of February 6, 2018 was used for the 4xxx through 8xxx object codes. (Books, Supplies, Operating expenses, Capital Outlay, Transfers, & Revenue Accounts) 35

36 Budget Development Terminology Budget Changes Column for entering changes to the preliminary budget on your Comparative Budget Report Indirect Cost Consists of expenditures for administrative activities necessary for the general operation of the local educational agency FTE - Full Time Equivalent The ratio of time expended in a part-time position to that of a full time position (i.e. 4 hour position divided by an 8 hour position =.5 FTE) 36

37 Budget Development Terminology Expenditures Classified according to the types of items purchased or services obtained Revenues Classified according to the source or type of income received Encumbered Obligation or commitment for a future appropriation (expense) A reservation generally in the form of a purchase order Salaries and benefits are encumbered 37

38 Budget Development Terminology Unencumbered Balance Represents the YTD balance left in the budget Revenue A positive balance for revenue indicates the amount of revenue your program is still expecting to receive A negative balance for revenue indicates you have received more than you had budgeted Expense A positive balance for expense represents the portion of budget that is still available for expenditures A negative balance for expense represents the amount by which you have exceeded your budget 38

39 Revenue Caution: In this example, revenue for $100,000 has been received and booked to object code 8699, All Other Revenue. The question I would ask: Is the $100,000 new revenue, over and above the original $645,000 budget or has it been booked incorrectly? Should it have been booked to object code 8689, All Other Fees. 39

40 Expenditures 40

41 Applying for a New Grant Determine the allowable indirect rate for the new grant If less than the office standard of 12.64%, submit a Reduced Indirect Rate Cost Waiver Form for approval (unless previously approved refer to slide #22) If approved, prepare budget allocation based on the Grant Application Guidelines Submit to the Program Accountant for review Prepare a transmittal to the Board requesting approval to submit the grant application For the Head Start Program or if required by the granting agency 41

42 A New Grant is Awarded to the SCCOE Does not include continuing grants funded from CDE each year 1. Evidence of Board approval (memo and minutes) For the Head Start Program or if required by the granting agency 2. Approved Reduced Indirect Rate Cost Wavier if required (must attain approval on an annual basis) 3. Grant award notification 4. Grant tracking checklist 5. Request to add QSS/pseudo code form to obtain a new cost center 6. Prepare/Submit budget revision form to the Program Accountant for processing Note: Grant information on pages in Budget Instructions and Sample Forms 42

43 Comparative Budget Report Illustrations

44 Procedure for Direct Cost Transfer

45 Direct Cost Transfer Services provided by one department to another department within the SCCOE are called Inter-Office services Object/sub-object codes 5710-xx/5750-xx are used to transfer direct costs associated with these services 5710-xx: to transfer direct costs for Inter-Office services within County School Service Funds (CSSF) - Funds xx: to transfer direct costs for Inter-Office services between CSSF and non-cssf - Funds 12x, 130, 67x The object codes must net to zero between programs i.e. Your program spends $100 for print services charged to object code ; print shops records (journals) your $100 and credits the print shop budget -$100 to The two added together = 0 45

46 Services Requiring an Inter-Office Service Agreement (IOSA) Billable service provided by Office of the Superintendent (12), Technology Svc (19), Educational Svc (23), Other (26) and Food Production Center (27): Cost of service exceeding $1,000: A fully executed IOSA is required for Budget Development and when budgeting during the fiscal year Both the Provider and the Consumer of the service must budget for the cost of the service based on the IOSA The Provider of the service should initiate the Journal Entry (JE) once the service has been provided Any service that is less than $1,000, an IOSA is NOT required 46

47 Inter-Office Services Object /Sub-Object Program/ Department 57xx-12* Office of the Superintendent 57xx-13 Fingerprinting 57xx-14 Mailroom 57xx-15 Print Shop 57xx-18 Teacher Resource Center 57xx-19* Technology Services 57xx-23* Educational Services 57xx-26* Other not assigned to any service 57xx-27* Food Production Center 57xx-28 Custodial Services *Require IOSA. See a quick reference of IOSA requirement on the Intranet. 47

48 Where Do We Find Available Resources?

49 OTHER RESOURCES & REFERENCES AVAILABLE California Department of Education (CDE) CalEdFacts is a compilation of statistics and information on a variety of issues concerning education in California Funding and grant information Laws & Regulations FAQ s 49

50 OTHER RESOURCES & REFERENCES AVAILABLE Budget Instructions & Sample Forms Everything we reviewed today, plus Section on Understanding The Monthly Budget Report Comprehensive section on analyzing a Comparative Budget Report 5710-XX program description, instructions/contacts on pg. 12 Hard copies of Forms & Illustrations Grant Accounting Information Frequently Asked Questions (FAQ) Chart of Accounts 50

51 OTHER RESOURCES & REFERENCES AVAILABLE Budget Guide Deadline dates Indirect rates/calculation Instructions to locate Budget Development forms on the intranet 5710/50-XX instructions and example Contacts for assistance SCCOE Intranet for Budget Development Forms 51

52 Instructions To Locate Budget Development Forms From your Access Point Login page, click on SCCOE Home to open the SCCOE Home page OR From an Internet Search Engine, open the home page for SCCOE by typing SCCOE in the Search field, click on the Santa Clara County Office of Education link Single click on SCCOE Intranet Enter your and Password, click on Forms and Templates, click the Business Tab, proceed to Budget Office Forms To Directly Access the login for the Intranet from the Internet, enter on the address bar: 52

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