Budget Narrative/FAQs

Transcription

1 Board Agenda Information June 16, 2016 Approval of 2016/2017 Budget AGENDA ITEM TITLE: Adoption of 2016/2017 Budget BACKGROUND: Annually, Peabody is required to adopt a budget for the subsequent year on or before July 1. Copies of the adopted budget are sent to our sponsoring agency, Santa Barbara Unified School District and Santa Barbara County Education Office RECOMMENDATION: Review, discuss and adopt budget for 2016/2017 RESOURCE PERSON: Nancy Dow and Demian Barnett FISCAL IMPACT: $6,323,478 FUNDING SOURCE: State, Federal and Local Revenues FAQ #1: How does ADA effect our funding? Budget Narrative/FAQs ADA = Average Daily Attendance Schools are not funded on actual enrollment, but instead on the average attendance of all students for the entire year. This pupil count is captured three times a year P1: Average attendance from July 1 Dec 15 th P2: Average attendance from July 1- March 15 th P Annual: Average attendance from July 1 June 11 (last day of school) Our ADA history has been outlined in the chart below titled ADA History ADA Total LCFF $ 5,379,622 $ 5,264,604 $ 5,681,498 $ 5,891,092 $ 5,991,327 $ 6,128,367 $ 6,135,897 1

2 FAQ #2: What are the LCFF Funds? (Local Control Funding Formula) The LCFF funds are our major source of revenue from the State of California. Every year, upon adoption of the Governor s Budget, education agencies (including charter schools) are funded based on the strength of the state revenues. Prop 30 helped increase the revenues. The LCFF is annually increased until it reaches it s Target in See chart below to see how Peabody has been funded over the LCFF target period. Amount of increase in LCFF for 2016/2017: $187,268 LCFF Entitlement per ADA Funded ADA Estimated LCFF Entitlement per ADA $ 6, $ 6, $ 7, $ 7, $ 7, $ 8, $ 8, $ 8, Net Change per ADA $ $ $ $ $ $ $ Net Percent Change 2.98% 7.02% 8.63% 3.93% 1.74% 2.34% 2.53% $9,000 $8,500 $8,000 $7,500 $7,000 $6,500 $6,000 $5,500 $5, GAP Funding RATE 12.00% 30.16% 51.97% 49.08% 45.34% 6.15% 34.21% 2

3 FAQ #3: Why are salaries so high? Salaries for 2016/2017 are substantial higher. Here are some reasons for the jump in expenses: Certificated and Classified Step/Column increases & a 4% salary increase STRS & PERS mandated increase over 2% (teacher/classified pension) of salaries Added additional hours to EL Resource Teacher, now Full Time position This budget includes: 31 Classroom teachers 1 PE Instruction 2 PE assistants Office Staff Teacher Tutors 6, pending 1 Custodians Operations Manager Business Office Manager Homework Center Summer 3 days Panther Program Salaries Artist in Residence (3) Substitute Teachers Also pensions, Social Security, Medicare, Workman s Compensation, Unemployment and Health Insurance costs. Total overall increase: $ over 2 nd interim budget 2015/2016: $301,000 Some samples of the increase: Overall salary increase : $165,000 Includes increases and decreases in positions, 4% increase and step/col STRS / PERS Pension increase: $90,000 Health Insurance: $41,000 Misc.: $5,000 FAQ #4: What are some significant changes to supplies? No significant changes to supplies for next year. FAQ #5: What is new with Contract/Services? No significant changes to contracts/ services for 16/17 FAQ #6: What is the plan for Capital Equipment and Technology? Parcel Tax may purchase 100 Chromebooks. The 3-year lease with Apple is paid off, and this $40k is redirected to buying more technology. This is last year of Parcel Tax funds. In addition, 1X more money will purchase chrome books for the computer lab. FAQ #7: How does Special Education affect the General Fund budget? Every year, the General Fund sets aside an amount to contribute to Special Education, which we share with SBUSD. The district runs the program and receives revenues from the State and Fed government, which is never enough to fund the program. This excess costs to run the program is shared by all the school sites based on ADA. Peabody participates in this program. This shared cost is called Special Ed Encroachment. The district will send us the final amounts due for 2015/2016 in August of 2016 when we close the books. 3

4 Until then, we are budgeting based on estimates received throughout the year. The amount projected for next year is $955,000. This will be revisited once we find out how much the costs were for 15/16. This program continues to increase annually due to many factors such as increased salaries, benefits, special needs of pupils, legal fees, district oversight, etc. Peabody continues to research alternative ways to meet the needs of these pupils. Historical data regarding Special Education Encroachment: 2013: $706, : $856, : $888,848 The budget was increased in 2015/2016 in order to protect the fund balance/reserves from being hit at the end of the year with a large encroachment fee. If the encroachment comes in less, we can put that money back in the fund balance, until next year FAQ #8: Why do we pay Oversight Fees and Facility Fees to SBUSD? As part of our Memorandum of Understanding (MOU) with SBUSD, we are required to pay a 1% oversight fee to the district and also charges for all ongoing services they provide including insurance renewals and policies, workmen s compensation policies, IT services and internet connections, telecommunications, etc. For a complete list see Appendix A in the MOU. We also pay for nursing fees for the district RN to come to our school site for hearing tests, and any medical issues that our staff cannot address. FAQ #9: What are One Time Spending Funds and why are they not included in general budget? The Governor s Budget for 2016/2017 includes the last round of one-time money for education. This happens when the State as a surplus and can distribute money to districts based on their ADA pupil count and a fixed dollar amount. This round is substantially lower than last years, and will most likely be the final round. One Time State Funding in 2015/16 : $529/per ADA One Time State Funding in 2016/17: $220/ per ADA In 2016/2017 Peabody will create a board approved spending plan for the following ONE TIME funds. These funds are not included in our general operating budget as they will not be available again. It is recommended to spend this type of one time funds on non-sustainable costs like supplies, books, technology, not salaries. See board agenda item and handout that outlines the proposed costs for this funding. FAQ #10: What does the contributions from Foundation and Fundraising account towards? For 2016/17 the following will be available from Foundation: $150,000 This is a portion of the PPE campaign that began in 2016 and reached a goal of $180,000. Traditionally we budget for a lower amount due to unknown economic changes. For 2016/17 the following is available from Fundraising: $285,000 4

5 Fundraising collects money for Panthers (afterschool) programs and the Charter pays for the salaries to run the program. In 2015/16 the cost was $130,000 in salaries which is part of the Fundraising donation to Charter. In addition, the Charter pays for the Drama coach, and all proceeds from Upstarts is transferred to the Charter to cover the drama team salaries and benefits. This amount is $20,000 for 15/16 which will be paid to the Charter in 2016/17. The Jogathon collected $107,000 (net after expenses) to support various programs paid out of the charter like Physical Education. This will also be transferred in 2016/17 as part of the fundraising contribution to the Charter. Another $28,000 is coming to the Charter from Fundraising for various PTSO efforts to raise money for the school. This will help in areas of classroom materials, equipment and technology. Total Fundraising contribution for 2016/17 will be $285,000 Total contributions from Foundation and Fundraising = $435,000 for this budget 2016/17 FAQ #11: What is the fund balance(reserve) and what is a healthy reserve? The fund balance/reserves is the accumulation of all the earnings and losses over the course of the charter history. It is similar to Retained Earnings in the corporate world. The projected ending fund balance for 2015/2016 will be $1,140,724 This is approximately 17% in reserves The California Department of Ed. Requires a 5% reserves set aside for economic uncertainties, which is line itemed on the budget fund balance section. The rest of the fund balance is unrestricted. The recommendation for charter schools is to maintain 15-18% reserves in order to meet cash flow needs. To calculate the % divide the ending fund balance by the total unrestricted expenses. General Notes regarding 2015/2016: The projection shows a break even amount for the end of the year. This is subject to change due to unknown factors such as June payroll and other expenses not yet accounted for. Also may change when the final revenues are available after June 30, General Notes regarding 2016/2017: This year s proposed budget includes increased costs. The Board can discuss and keep reviewing these factors regarding our future: Salaries Sustainability of annual increases Benefits (PERS/STRS will continue to increase 1-2% annually) adding $80-$100,000k per year to our budget. One-time state funding is drying up, this is last year and 45% less than 15/16 LCFF is reaching its target goal, and increased revenues will stop. Parcel Tax is over June 30, 2017 There is -0- cola in 17/18, contracts, fees, services and materials continue to rise. Multiyear projections should include building of reserves to ensure sustainability Please bring any questions you may have to the board meeting to discuss 5

6 6

7 6/30/2016 Budget ADA 724 ADA 720 Comments 2nd Interim Budget 3/15/2016 7/1/2016 A. Revenues ADA - FAQ #1 1. Revenue Limit Sources LCFF 5,703,837 5,891,105 Based on FCMAT Calculator (latest version) FAQ #2 Total Revenue Limit Sources 5,703,837 5,891, Federal Revenues NCLB , ,957 Title I,II, III Other Federal Revenues Total Federal Revenues 121, , Other State Revenues Lottery 110, ,225 Mandate Block Grant 10,191 10,191 EducatorEffectiveness Funding 48,395 - Ca Clean Energy 54,769 54,769 * Deferrals pending implementation (54,769) (54,769) New State One Time 230, ,400 16/17 based on $236/ADA All Other State Revenues 399, , Other Local Revenues Fundraising/Foundation 385, ,000 Increased due to availability of extra funds raised in 15/16 Parcel Tax 116, ,000 Sunsets 06/30/17 All Other Local Revenues 29,760 21,500 Total Local Revenues 531, , Total Revenues 6,756,218 6,879,378 Peab Budget SACS (SBUSD, SBCEO) Prepared by Nancy Dow 1

8 6/30/2016 Budget EXPENDITURES Certificated Salaries ADA 724 ADA 720 Comments 2nd Interim Budget Teachers' Salaries ,791,346 2,929,357 Certificated Supervisors' and Administrators' Salaries , ,000 Total, Certificated Salaries 3,036,834 3,184,357 Includes 4% increase, 31 classrooms, teacher support, stipends, homework center, etc FAQ #3 Non-certificated Salaries Instructional Aides' Salaries , ,227 Artists in Residence, PE Assistants, Cedlt testers, etc Non-certificated Support Salaries , ,146 Maintence and Operations, Health Asst, Lib Tech Non-certificated Supervisors' and Administrators' Sal Clerical and Office Salaries , ,128 Other Non-certificated Salaries , ,770 Noon Duty Total, Non-certificated Salaries 727, ,271 Employee Benefits STRS , ,573 Increased to 12.58% Pers ,633 81,723 Increased to 14.10% OASDI / Medicare / Alternative , ,412 Health and Welfare Benefits , ,543 Unemployment Insurance ,910 2,013 Workers' Compensation Insurance ,058 59,508 Total, Employee Benefits 764, ,772 4,528,561 4,827,400 Books and Supplies Approved Textbooks and Core Curricula Materials 4100 Books and Other Reference Materials ,000 2,000 Materials and Supplies ,500 91,700 Noncapitalized Equipment , ,000 Total, Books and Supplies 217, ,700 Services and Other Operating Expenditures Travel and Conferences ,000 8,000 Dues and Memberships ,000 8,000 Insurance ,000 38,000 Operations and Housekeeping Services , ,000 Rentals, Leases, Repairs, and Noncap. Improvements ,000 67,000 Consultants, Accounting, Legal, Transportation Professional/Consulting Services and Operating Expend , ,600 Communications ,700 16,000 Internet, phones w/ Erate Total, Services and Other Operating Expenditures 624, ,600 Capital Outlay Sites and Improvements of Sites 6100 Buildings and Improvements of Buildings 6200 Books and Media for New School Libraries or Major Expansion of School Libraries 6300 Equipment 6400 Peab Budget SACS (SBUSD, SBCEO) Prepared by Nancy Dow 2

9 6/30/2016 Budget ADA 724 ADA 720 Comments 2nd Interim Budget Equipment Replacement 6500 Depreciation Expense (for full accrual only) 6900 Total, Capital Outlay - - Other Outgo Tuition to Other Schools , ,278 District fees 1% oversight and 1.5 Admin fees Transfers of Pass-through Revenues to Other LEAs ,000 25,000 District nurse fees Transfers of Apportionments to Other LEAs - Spec. Ed S 955, ,000 Special Ed Encroachment Transfers of Apportionments to Other LEAs - All Other AO Educator Effectiveness 48,395 - One time state funding 15/16 230, ,400 Separate spending plan Excess Taxes Debt Service: Interest Principal Total, Other Outgo 1,411,514 1,285,678 TOTAL EXPENDITURES 6,782,485 6,879,378 C. Excess (Defienciency) of Rev over Expenditures (26,267) 0.00 Before Other Financing Sources and Uses D. Other Financing Sources E. Net Increase/Decrease in Fund Balance (26,267) 0.00 Fund Balances Beginning Fund Balance 1,406,004 1,336,877 Audit Adjustment (42,860) - ILPT Adjustment 14/15 to P2 Projected Change (26,267) - Projected Fund Balance 1,336,877 1,336,877 Designated for Uncertainities 339, ,969 Undesignated Reserves 997, ,908 Peab Budget SACS (SBUSD, SBCEO) Prepared by Nancy Dow 3

10 6/30/ CAFETERIA A. Revenues 1. Revenue Limit Sources State Aid Current Year 8011 Charter School Gen Purpose 8015 State Aid Prior 8019 Tax Relief Subventrions 8020 County and District Taxes 8040 Misc. Funds 8080 Revenue Limit Transfers PERS Reduction Transfers 8092 Other Revenue Limit Transfers 8091 Total Revenue Limit Sources 2nd Interim Budget 3/15/2016 6/16/ Federal Revenues NCLB 8290 Special Ed - Federal 8,182 Child Nutrition - Federal , ,000 Other Federal Revenues 8110 Total Federal Revenues 228, , Other State Revenues Charter School Categorical 8480 Special Ed - State 0 All Other State Revenues 0 17,400 18,400 Total State Revenues, Other 17,400 18, Other Local Revenues Charter School Funding In Lieu 8780 All Other Local Revenues 194, ,900 Total Local Revenues 194, , Total Revenues 439, ,300 EXPENDITURES Non-certificated Salaries Non-certificated Support Salaries , ,237 Non-certificated Supervisors' and Administrators' S ,945 72,500 Clerical and Office Salaries 2400 Other Non-certificated Salaries 2900 Total, Non-certificated Salaries 206, ,737 Employee Benefits STRS PERS ,700 27,988 OASDI / Medicare / Alternative ,696 19,344 Peab Budget SACS (SBUSD, SBCEO) 1

11 6/30/ CAFETERIA 2nd Interim Budget Health and Welfare Benefits ,000 28,000 Unemployment Insurance Workers' Compensation Insurance Other Employee Benefits Total, Employee Benefits 68,396 75, , ,069 Books and Supplies Approved Textbooks and Core Curricula Materials 4100 Books and Other Reference Materials 4200 Materials and Supplies ,000 3,000 Noncapitalized Equipment ,000 5,000 Food , ,431 Total, Books and Supplies 157, ,431 Services and Other Operating Expenditures Travel and Conferences ,250 1,000 Dues and Memberships 5300 Insurance 5400 Operations and Housekeeping Services ,000 4,000 Rentals, Leases, Repairs, and Noncap. Improveme ,000 4,000 Professional/Consulting Services and Operating Ex ,600 10,800 Communications ,000 1,000 Total, Services and Other Operating Expend 26,850 20,800 Capital Outlay Sites and Improvements of Sites 6100 Buildings and Improvements of Buildings 6200 Books and Media for New School Libraries or Majo Expansion of School Libraries 6300 Equipment ,000 9,000 Equipment Replacement 6500 (9,523) - Depreciation Expense (for full accrual only) 6900 Total, Capital Outlay 477 9,000 Other Outgo Tuition to Other Schools Transfers of Pass-through Revenues to Other LEA Transfers of Apportionments to Other LEAs - Spec SE Transfers of Apportionments to Other LEAs - All O AO All Other Transfers - To SBUSD Food Services Debt Service: Interest 7438 Principal 7439 Total, Other Outgo Peab Budget SACS (SBUSD, SBCEO) 2

12 6/30/ CAFETERIA 2nd Interim Budget TOTAL EXPENDITURES 460, ,300 EXCESS (DEFICIENCY) OF REVENUES OVER EXPEND. BEFORE OTHER FINANCING SOURCES AND USES (A5-B (20,205) (9,000) Fund Balances - Audit as of 06/30/15 Beginning Fund Balance 07/01/ , ,286 Projected ending fund balance 106, ,286 Peab Budget SACS (SBUSD, SBCEO) 3