Manhattan Beach Unified School District Budget Adoption

Transcription

1 Manhattan Beach Unified School District Budget Adoption Presented to the Board of Trustees June 19, 2012 Rick E. Bagley, Deputy Superintendent

2 Major Budget Considerations for Education funding continues to be heavily dependent upon ballot initiatives. The promise of massive midyear cuts looms if the Governor s proposals fail in November. Cash continues to be king as the State relies on ongoing deferrals which now equal approximately 40% of the State s educational support. Cash flow is a significant issue for everyone. All experts advise caution and fiscally conservative budgeting in

3 Funding Per ADA Actual vs. Statutory Level Average Unified District $6,747 $6,700 $6,411 $6,392 $6,535 $6,150 Loss of COLA Dollars Per ADA $5,700 $5,821 $5,821 $5,668 $5,244 Loss of baseline dollars $5,244 $5,189 $4,981 $4,789 $4, Loss due to midyear cut Projected Statutory COLA Flat Funding Actual Funding Midyear Cut

4 Dollars Per ADA $6,700 $5,700 This chart shows where revenue limits should be (A), where they are (B) and where we are told they will headed if the November tax initiatives fail (C) $5,821 $5,821 $6,150 $5,668 Funding Per ADA Actual vs. Statutory Level Average Unified District $6,411 $6,392 C B $6,535 A $6,747 $5,244 Loss of COLA Loss of baseline dollars $5,244 $5,189 $4,981 $4,789 $4, Loss due to midyear cut Projected Statutory COLA Flat Funding Actual Funding Midyear Cut

5 Budgeting Assumptions Required by the LA County Office of Education

6 REQUIRED BUDGET ASSUMPTIONS Statutory COLA Revenue Limit Deficit Trigger Reductions: If tax initiative fails (ongoing) Net Funded COLA Special Ed COLA (State/Local share) Categorical COLA (All Tiers) Lottery Revenue (Unrestricted) Lottery Revenue (Restricted) Lottery TOTALS 3.24% % $440/ADA 1.08% 0% 0% $118/ADA $23.75/ADA $141.75/ADA 2.50% % $440/ADA 2.50% 2.50% 2.50% $118/ADA $23.75/ADA $141.75/ADA 2.70% % $440/ADA 2.70% 2.70% 2.70% $118/ADA $23.75/ADA $141.75/ADA Interest Rate for 10yr Treasuries Calif. Consumer Price Index (CPI) Other Expenditures (4000s6000s) 2.3% 2.3% CPI 2.7% 2.4% CPI 3.0% 2.6% CPI PERS Employer Contribution Rate PERS Reduction Buyout % 29.76% 13.53% 0% 13.53% 0% SOURCE: LACOE Informational Bulletin 269, Dated May 25, 2012

7 The Proposed General Fund Budget

8 General Fund Estimated Actuals Unrestricted Restricted Total REVENUES Revenue Limit $ 35,412,117 $ 35,273,513 $ 473,976 $ 35,747,489 Federal Revenue $ 2,319,452 $ $ 1,094,030 $ 1,094,030 Other State Revenue $ 7,820,262 $ 4,467,970 $ 3,433,843 $ 7,901,813 Other Local Revenue $ 9,077,543 $ 1,974,803 $ 5,603,379 $ 7,578,182 TOTAL REVENUES $ 54,629,374 $ 41,716,286 $ 10,605,228 $ 52,321,514 EXPENDITURES Certificated Salaries $ 25,077,964 $ 19,358,212 $ 7,527,521 $ 26,885,733 Classified Salaries $ 7,880,842 $ 3,939,134 $ 4,248,119 $ 8,187,253 Employee Benefits $ 9,800,401 $ 7,005,969 $ 3,026,007 $ 10,031,976 Books and Supplies $ 3,671,132 $ 1,771,567 $ 893,384 $ 2,664,951 Services/Other Op. Exp. $ 8,277,568 $ 2,891,635 $ 4,583,646 $ 7,475,281 Capital Outlay $ 35,548 $ $ $ Other Outgo $ 2,958,766 $ 455,493 $ 2,303,273 $ 2,758,766 TOTAL EXPENDITURES $ 57,702,221 $ 35,422,010 $ 22,581,950 $ 58,003,960 REVENUES EXPENDITURES $ (3,072,847) $ 6,294,276 $ (11,976,722) $ (5,682,446) FUND BALANCE (RESERVES) Beginning Fund Balance (July 1) $ 16,319,690 $ 13,246,843 Audit Adjustment $ $ Adjusted Beginning Balance $ 16,319,690 $ 13,246,843 Ending Fund Balance (June 30) $ 13,246,843 $ 7,564,397

9 General Fund Estimated Actuals Unrestricted Restricted Total REVENUES Revenue Limit $ 35,412,117 $ 35,273,513 $ 473,976 $ 35,747,489 Federal Revenue $ 2,319,452 $ $ 1,094,030 $ 1,094,030 Other State Revenue $ 7,820,262 $ 4,467,970 $ 3,433,843 $ 7,901,813 Other Local Revenue $ 9,077,543 $ 1,974,803 $ 5,603,379 $ 7,578,182 TOTAL REVENUES $ 54,629,374 $ 41,716,286 $ 10,605,228 $ 52,321,514 EXPENDITURES Certificated Salaries $ 25,077,964 $ 19,358,212 $ 7,527,521 $ 26,885,733 REVENUES LOWER IN 12/13 Classified Salaries $ 7,880,842 $ 3,939,134 $ 4,248,119 $ 8,187,253 Employee Total revenues Benefits for are $ 9,800,401 $ 7,005,969 $ 3,026,007 $ 10,031,976 Books lower and than Supplies in , primarily $ 3,671,132 $ 1,771,567 $ 893,384 $ 2,664,951 Services/Other due to loss of onetime Op. Exp. Federal $ 8,277,568 $ 2,891,635 $ 4,583,646 $ 7,475,281 Capital Outlay $ 35,548 $ $ $ Other revenues Outgoand expenditures $ 2,958,766 $ 455,493 $ 2,303,273 $ 2,758,766 TOTAL EXPENDITURES $ 57,702,221 $ 35,422,010 $ 22,581,950 $ 58,003,960 funds and zeroing out all local associated with ASB, PTA, AP, etc. REVENUES EXPENDITURES $ (3,072,847) $ 6,294,276 $ (11,976,722) $ (5,682,446) FUND BALANCE (RESERVES) Beginning Fund Balance (July 1) $ 16,319,690 $ 13,246,843 Audit Adjustment $ $ Adjusted Beginning Balance $ 16,319,690 $ 13,246,843 Ending Fund Balance (June 30) $ 13,246,843 $ 7,564,397

10 EXPENDITURES UP IN 12/13 Total expenditures for are higher than in , primarily due to employee step and column General Fund Estimated Actuals Unrestricted Restricted Total REVENUES movement, increased cost of Revenue Limit $ 35,412,117 $ 35,273,513 $ 473,976 $ 35,747,489 benefits and budgeting for priority Federal Revenue $ 2,319,452 $ $ 1,094,030 $ 1,094,030 items in staff, students and Other State Revenue $ 7,820,262 $ 4,467,970 $ 3,433,843 $ 7,901,813 Other Local Revenue facilities.. $ 9,077,543 $ 1,974,803 $ 5,603,379 $ 7,578,182 TOTAL REVENUES $ 54,629,374 $ 41,716,286 $ 10,605,228 $ 52,321,514 EXPENDITURES Certificated Salaries $ 25,077,964 $ 19,358,212 $ 7,527,521 $ 26,885,733 Classified Salaries $ 7,880,842 $ 3,939,134 $ 4,248,119 $ 8,187,253 Employee Benefits $ 9,800,401 $ 7,005,969 $ 3,026,007 $ 10,031,976 Books and Supplies $ 3,671,132 $ 1,771,567 $ 893,384 $ 2,664,951 Services/Other Op. Exp. $ 8,277,568 $ 2,891,635 $ 4,583,646 $ 7,475,281 Capital Outlay $ 35,548 $ $ $ Other Outgo $ 2,958,766 $ 455,493 $ 2,303,273 $ 2,758,766 TOTAL EXPENDITURES $ 57,702,221 $ 35,422,010 $ 22,581,950 $ 58,003,960 REVENUES EXPENDITURES $ (3,072,847) $ 6,294,276 $ (11,976,722) $ (5,682,446) FUND BALANCE (RESERVES) Beginning Fund Balance (July 1) $ 16,319,690 $ 13,246,843 Audit Adjustment $ $ Adjusted Beginning Balance $ 16,319,690 $ 13,246,843 Ending Fund Balance (June 30) $ 13,246,843 $ 7,564,397

11 General Fund Estimated Actuals Unrestricted Restricted Total REVENUES Revenue Limit $ 35,412,117 $ 35,273,513 $ 473,976 $ 35,747,489 Federal Revenue $ 2,319,452 $ $ 1,094,030 $ 1,094,030 Other State Revenue $ 7,820,262 $ 4,467,970 $ 3,433,843 $ 7,901,813 Other Local Revenue $ 9,077,543 $ 1,974,803 $ 5,603,379 $ 7,578,182 TOTAL REVENUES $ 54,629,374 $ 41,716,286 $ 10,605,228 $ 52,321,514 INCREASED DEFICIT SPENDING Total expenditures will continue to EXPENDITURES exceed Certificated total Salaries revenues in $ 25,077,964 $ 19,358,212 $ 7,527,521 $ 26,885,733 Classified the State Salaries continues to deficit $ 7,880,842 $ 3,939,134 $ 4,248,119 $ 8,187,253 Employee the district s Benefits primary source of $ 9,800,401 $ 7,005,969 $ 3,026,007 $ 10,031,976 Books funding and by Supplies over 22%. The State $ 3,671,132 $ 1,771,567 $ 893,384 $ 2,664,951 Services/Other has not provided Op. Exp. a single new $ 8,277,568 $ 2,891,635 $ 4,583,646 $ 7,475,281 Capital dollar to Outlay schools since $ 35,548 $ $ $ Other Outgo $ 2,958,766 $ 455,493 $ 2,303,273 $ 2,758,766 TOTAL EXPENDITURES $ 57,702,221 $ 35,422,010 $ 22,581,950 $ 58,003,960 REVENUES EXPENDITURES $ (3,072,847) $ 6,294,276 $ (11,976,722) $ (5,682,446) FUND BALANCE (RESERVES) Beginning Fund Balance (July 1) $ 16,319,690 $ 13,246,843 Audit Adjustment $ $ Adjusted Beginning Balance $ 16,319,690 $ 13,246,843 Ending Fund Balance (June 30) $ 13,246,843 $ 7,564,397

12 General Fund Estimated Actuals Unrestricted Restricted Total REVENUES Revenue Limit $ 35,412,117 $ 35,273,513 $ 473,976 $ 35,747,489 Federal Revenue $ 2,319,452 $ $ 1,094,030 $ 1,094,030 Other State Revenue $ 7,820,262 $ 4,467,970 $ 3,433,843 $ 7,901,813 Other Local Revenue $ 9,077,543 $ 1,974,803 $ 5,603,379 $ 7,578,182 TOTAL REVENUES $ 54,629,374 $ 41,716,286 $ 10,605,228 $ 52,321,514 ENDING BALANCE DROPPING Our budget s structural deficit will EXPENDITURES Certificated Salaries $ 25,077,964 $ 19,358,212 $ 7,527,521 $ 26,885,733 Classified continue Salaries to erode our reserves. $ 7,880,842 $ 3,939,134 $ 4,248,119 $ 8,187,253 Employee Benefits $ 9,800,401 $ 7,005,969 $ 3,026,007 $ 10,031,976 Books and Supplies $ 3,671,132 $ 1,771,567 $ 893,384 $ 2,664,951 Services/Other and there are no Op. further Exp. cuts to $ 8,277,568 $ 2,891,635 $ 4,583,646 $ 7,475,281 Capital Outlay $ 35,548 $ $ $ education in Other Outgo $ 2,958,766 $ 455,493 $ 2,303,273 $ 2,758,766 TOTAL EXPENDITURES $ 57,702,221 $ 35,422,010 $ 22,581,950 $ 58,003,960 Remember, this scenario assumes the November tax initiatives pass REVENUES EXPENDITURES $ (3,072,847) $ 6,294,276 $ (11,976,722) $ (5,682,446) FUND BALANCE (RESERVES) Beginning Fund Balance (July 1) $ 16,319,690 $ 13,246,843 Audit Adjustment $ $ Adjusted Beginning Balance $ 16,319,690 $ 13,246,843 Ending Fund Balance (June 30) $ 13,246,843 $ 7,564,397

13 General Fund MultiYear Projection for , and

14 Manhattan Beach Unified School District MULTIYEAR BUDGET PROJECTION (Assumes November 2012 Tax Initiatives Pass) Proposed Projected Projected Estimated Actuals Budget Budget Budget REVENUES Revenue Limit $ 35,412,117 $ 35,747,489 $ 36,415,273 $ 37,398,498 Federal Revenue $ 2,319,452 $ 1,094,030 $ 1,094,030 $ 1,094,030 Other State Revenue $ 7,820,262 $ 7,901,813 $ 8,099,358 $ 8,318,041 Other Local Revenue $ 9,077,543 $ 7,578,182 $ 7,466,436 $ 7,575,512 TOTAL REVENUES $ 54,629,374 $ 52,321,514 $ 53,075,097 $ 54,386,081 EXPENDITURES Certificated Salaries $ 25,077,964 $ 26,885,733 $ 26,732,114 $ 27,079,631 Classified Salaries $ 7,880,842 $ 8,187,253 $ 8,143,675 $ 8,249,543 Employee Benefits $ 9,800,401 $ 10,031,976 $ 10,572,275 $ 10,709,714 Books and Supplies $ 3,671,132 $ 2,664,951 $ 2,000,000 $ 2,020,000 Services/Other Op. Exp. $ 8,277,568 $ 7,475,281 $ 6,000,000 $ 6,017,476 Capital Outlay $ 35,548 $ $ $ Other Outgo $ 2,958,766 $ 2,758,766 $ 2,758,766 $ 2,758,766 TOTAL EXPENDITURES $ 57,702,221 $ 58,003,960 $ 56,206,830 $ 56,835,130 REVENUES EXPENDITURES $ (3,072,847) $ (5,682,446) $ (3,131,733) $ (2,449,049) FUND BALANCE (RESERVES) Beginning Fund Balance (July 1) $ 16,319,690 $ 13,246,843 $ 7,564,397 $ 4,432,664 Audit Adjustment $ $ $ $ Adjusted Beginning Balance $ 16,319,690 $ 13,246,843 $ 7,564,397 $ 4,432,664 Ending Fund Balance (June 30) $ 13,246,843 $ 7,564,397 $ 4,432,664 $ 1,983,615 NonSpendable Revolving Cash $ 10,000 $ 10,000 $ 10,000 Stores $ 20,000 $ 20,000 $ 20,000 Assigned $ $ $ Unassigned Res. For Economic Uncertainties $ 2,885,111 $ 2,810,342 $ 1,705,054 Unassigned Ending Balance $ 4,649,286 $ 1,592,323 $ 248,561

15 Manhattan Beach Unified School District MULTIYEAR BUDGET PROJECTION (Assumes November 2012 Tax Initiatives Pass) Proposed Projected Projected Estimated Actuals Budget Budget Budget REVENUES Revenue Limit $ 35,412,117 $ 35,747,489 $ 36,415,273 $ 37,398,498 Federal Revenue $ 2,319,452 $ 1,094,030 $ 1,094,030 $ 1,094,030 Other State Revenue $ 7,820,262 $ 7,901,813 $ 8,099,358 $ 8,318,041 Other Local Revenue $ 9,077,543 $ 7,578,182 $ 7,466,436 $ 7,575,512 TOTAL REVENUES $ 54,629,374 $ 52,321,514 $ 53,075,097 $ 54,386,081 EXPENDITURES Certificated Salaries $ 25,077,964 $ 26,885,733 $ 26,732,114 $ 27,079,631 Classified Salaries $ 7,880,842 $ 8,187,253 $ 8,143,675 $ 8,249,543 Employee A multiyear Benefits projection $ 9,800,401 is $ 10,031,976 $ 10,572,275 $ 10,709,714 Books and Supplies $ 3,671,132 $ 2,664,951 $ 2,000,000 $ 2,020,000 Services/Other required Op. of Exp. all districts $ 8,277,568 as $ 7,475,281 $ 6,000,000 $ 6,017,476 Capital Outlay $ 35,548 $ $ $ Other Outgo $ 2,958,766 $ 2,758,766 $ 2,758,766 $ 2,758,766 TOTAL EXPENDITURES $ 57,702,221 $ 58,003,960 $ 56,206,830 $ 56,835,130 part of the normal budgeting process. The challenge is that the current fiscal environment is anything but normal. REVENUES EXPENDITURES $ (3,072,847) $ (5,682,446) $ (3,131,733) $ (2,449,049) FUND BALANCE (RESERVES) Beginning Fund Balance (July 1) $ 16,319,690 $ 13,246,843 $ 7,564,397 $ 4,432,664 Audit Adjustment $ $ $ $ Adjusted Beginning Balance $ 16,319,690 $ 13,246,843 $ 7,564,397 $ 4,432,664 Ending Fund Balance (June 30) $ 13,246,843 $ 7,564,397 $ 4,432,664 $ 1,983,615 NonSpendable Revolving Cash $ 10,000 $ 10,000 $ 10,000 Stores $ 20,000 $ 20,000 $ 20,000 Assigned $ $ $ Unassigned Res. For Economic Uncertainties $ 2,885,111 $ 2,810,342 $ 1,705,054 Unassigned Ending Balance $ 4,649,286 $ 1,592,323 $ 248,561

16 Manhattan Beach Unified School District MULTIYEAR BUDGET PROJECTION (Assumes November 2012 Tax Initiatives Pass) Proposed Projected Projected Estimated Actuals Budget Budget Budget REVENUES Revenue Limit $ 35,412,117 $ 35,747,489 $ 36,415,273 $ 37,398,498 Federal Revenue $ 2,319,452 $ 1,094,030 $ 1,094,030 $ 1,094,030 Other State Revenue $ 7,820,262 $ 7,901,813 $ 8,099,358 $ 8,318,041 Other Local Revenue $ 9,077,543 $ 7,578,182 $ 7,466,436 $ 7,575,512 TOTAL REVENUES $ 54,629,374 $ 52,321,514 $ 53,075,097 $ 54,386,081 EXPENDITURES Certificated Salaries $ 25,077,964 $ 26,885,733 $ 26,732,114 $ 27,079,631 Classified Salaries $ 7,880,842 $ 8,187,253 $ 8,143,675 $ 8,249,543 Employee Benefits $ 9,800,401 $ 10,031,976 $ 10,572,275 $ 10,709,714 Books and Supplies $ 3,671,132 $ 2,664,951 $ 2,000,000 $ 2,020,000 Services/Other based on Op. Exp. the parameters $ 8,277,568 $ 7,475,281 $ 6,000,000 $ 6,017,476 Capital Outlay $ 35,548 $ $ $ given Other Outgoby LACOE, but $ 2,958,766 also $ 2,758,766 $ 2,758,766 $ 2,758,766 TOTAL EXPENDITURES $ 57,702,221 $ 58,003,960 $ 56,206,830 $ 56,835,130 The multiyear projection is relies upon estimates of various data such as our ending fund balance. REVENUES EXPENDITURES $ (3,072,847) $ (5,682,446) $ (3,131,733) $ (2,449,049) FUND BALANCE (RESERVES) Beginning Fund Balance (July 1) $ 16,319,690 $ 13,246,843 $ 7,564,397 $ 4,432,664 Audit Adjustment $ $ $ $ Adjusted Beginning Balance $ 16,319,690 $ 13,246,843 $ 7,564,397 $ 4,432,664 Ending Fund Balance (June 30) $ 13,246,843 $ 7,564,397 $ 4,432,664 $ 1,983,615 NonSpendable Revolving Cash $ 10,000 $ 10,000 $ 10,000 Stores $ 20,000 $ 20,000 $ 20,000 Assigned $ $ $ Unassigned Res. For Economic Uncertainties $ 2,885,111 $ 2,810,342 $ 1,705,054 Unassigned Ending Balance $ 4,649,286 $ 1,592,323 $ 248,561

17 Manhattan Beach Unified School District MULTIYEAR BUDGET PROJECTION (Assumes November 2012 Tax Initiatives Pass) Proposed Projected Projected Estimated Actuals Budget Budget Budget REVENUES Revenue Limit $ 35,412,117 $ 35,747,489 $ 36,415,273 $ 37,398,498 Federal Revenue $ 2,319,452 $ 1,094,030 $ 1,094,030 $ 1,094,030 Other State Revenue $ 7,820,262 $ 7,901,813 $ 8,099,358 $ 8,318,041 Other Local Revenue $ 9,077,543 $ 7,578,182 $ 7,466,436 $ 7,575,512 TOTAL REVENUES $ 54,629,374 $ 52,321,514 $ 53,075,097 $ 54,386,081 EXPENDITURES Certificated Salaries $ 25,077,964 $ 26,885,733 $ 26,732,114 $ 27,079,631 Classified Salaries $ 7,880,842 $ 8,187,253 $ 8,143,675 $ 8,249,543 Employee Benefits $ 9,800,401 $ 10,031,976 $ 10,572,275 $ 10,709,714 Books and Supplies $ 3,671,132 $ 2,664,951 $ 2,000,000 $ 2,020,000 Services/Other budget Op. assumes Exp. $ State 8,277,568 $ 7,475,281 $ 6,000,000 $ 6,017,476 Capital Outlay $ 35,548 $ $ $ Other Outgo $ 2,958,766 $ 2,758,766 $ 2,758,766 $ 2,758,766 TOTAL EXPENDITURES $ 57,702,221 $ 58,003,960 $ 56,206,830 $ 56,835,130 Additionally, the multiyear revenues (the Revenue Limit) will remain relatively constant over the next three REVENUES EXPENDITURES $ (3,072,847) $ (5,682,446) $ (3,131,733) $ (2,449,049) FUND BALANCE (RESERVES) Beginning Fund Balance (July 1) $ 16,319,690 $ 13,246,843 $ 7,564,397 $ 4,432,664 years Audit Adjustment (e.g. no further $ cuts $ $ $ Adjusted Beginning Balance $ 16,319,690 $ 13,246,843 $ 7,564,397 $ 4,432,664 Ending Fund Balance (June 30) $ 13,246,843 $ 7,564,397 $ 4,432,664 $ 1,983,615 are assumed). NonSpendable Revolving Cash $ 10,000 $ 10,000 $ 10,000 Stores $ 20,000 $ 20,000 $ 20,000 Assigned $ $ $ Unassigned Res. For Economic Uncertainties $ 2,885,111 $ 2,810,342 $ 1,705,054 Unassigned Ending Balance $ 4,649,286 $ 1,592,323 $ 248,561

18 Manhattan Beach Unified School District MULTIYEAR BUDGET PROJECTION (Assumes November 2012 Tax Initiatives Pass) Proposed Projected Projected Estimated Actuals Budget Budget Budget REVENUES Revenue Limit $ 35,412,117 $ 35,747,489 $ 36,415,273 $ 37,398,498 Federal Revenue $ 2,319,452 $ 1,094,030 $ 1,094,030 $ 1,094,030 Other State Revenue $ 7,820,262 $ 7,901,813 $ 8,099,358 $ 8,318,041 Other Local Revenue $ 9,077,543 $ 7,578,182 $ 7,466,436 $ 7,575,512 TOTAL REVENUES $ 54,629,374 $ 52,321,514 $ 53,075,097 $ 54,386,081 EXPENDITURES Certificated Salaries $ 25,077,964 $ 26,885,733 $ 26,732,114 $ 27,079,631 Classified Salaries $ 7,880,842 $ 8,187,253 $ 8,143,675 $ 8,249,543 Employee In other Benefits words, given $ 9,800,401 the $ 10,031,976 $ 10,572,275 $ 10,709,714 Books and Supplies $ 3,671,132 $ 2,664,951 $ 2,000,000 $ 2,020,000 Services/Other Op. Exp. $ 8,277,568 $ 7,475,281 $ 6,000,000 $ 6,017,476 Capital Outlay $ 35,548 $ $ $ Other Outgo $ 2,958,766 $ 2,758,766 $ 2,758,766 $ 2,758,766 TOTAL EXPENDITURES $ 57,702,221 $ 58,003,960 $ 56,206,830 $ 56,835,130 multitude of complex factors and unknowns for , it is extremely difficult to project budgets for REVENUES EXPENDITURES $ (3,072,847) $ (5,682,446) $ (3,131,733) $ (2,449,049) FUND BALANCE (RESERVES) Beginning Fund Balance (July 1) $ 16,319,690 $ 13,246,843 $ 7,564,397 $ 4,432,664 Audit Adjustment and $ $ $ $ Adjusted Beginning Balance $ 16,319,690 $ 13,246,843 $ 7,564,397 $ 4,432,664 Ending Fund Balance (June 30) $ 13,246,843 $ 7,564,397 $ 4,432,664 $ 1,983,615 NonSpendable Revolving Cash $ 10,000 $ 10,000 $ 10,000 Stores $ 20,000 $ 20,000 $ 20,000 Assigned $ $ $ Unassigned Res. For Economic Uncertainties $ 2,885,111 $ 2,810,342 $ 1,705,054 Unassigned Ending Balance $ 4,649,286 $ 1,592,323 $ 248,561

19 Manhattan Beach Unified School District MULTIYEAR BUDGET PROJECTION (Assumes November 2012 Tax Initiatives Pass) Proposed Projected Projected Estimated Actuals Budget Budget Budget REVENUES Revenue Limit $ 35,412,117 $ 35,747,489 $ 36,415,273 $ 37,398,498 Federal Revenue $ 2,319,452 $ 1,094,030 $ 1,094,030 $ 1,094,030 Other State Revenue $ 7,820,262 $ 7,901,813 $ 8,099,358 $ 8,318,041 Other Local Revenue $ 9,077,543 $ 7,578,182 $ 7,466,436 $ 7,575,512 TOTAL REVENUES $ 54,629,374 $ 52,321,514 $ 53,075,097 $ 54,386,081 EXPENDITURES Certificated Salaries $ 25,077,964 $ 26,885,733 $ 26,732,114 $ 27,079,631 Classified Salaries $ 7,880,842 $ 8,187,253 $ 8,143,675 $ 8,249,543 Employee In other Benefits words, given $ 9,800,401 the $ 10,031,976 $ 10,572,275 $ 10,709,714 Books and Supplies $ 3,671,132 $ 2,664,951 $ 2,000,000 $ 2,020,000 Services/Other Op. Exp. $ 8,277,568 $ 7,475,281 $ 6,000,000 $ 6,017,476 Capital Outlay $ 35,548 $ $ $ Other Outgo $ 2,958,766 $ 2,758,766 $ 2,758,766 $ 2,758,766 TOTAL EXPENDITURES $ 57,702,221 $ 58,003,960 $ 56,206,830 $ 56,835,130 Our target is to always show a positive multitude ending of complex fund balance factors at and the unknowns end of the for third , year. In it order is extremely to achieve difficult that balance to at project the end budgets of , for we had REVENUES EXPENDITURES $ (3,072,847) $ (5,682,446) $ (3,131,733) $ (2,449,049) FUND BALANCE (RESERVES) Beginning Fund Balance (July 1) $ 16,319,690 $ 13,246,843 $ 7,564,397 $ 4,432,664 Audit Adjustment to make and additional $ $ $ $ Adjusted Beginning Balance $ 16,319,690 $ 13,246,843 $ 7,564,397 $ 4,432,664 Ending Fund Balance (June 30) $ 13,246,843 $ 7,564,397 $ 4,432,664 $ 1,983,615 assumptions. NonSpendable Revolving Cash $ 10,000 $ 10,000 $ 10,000 Stores $ 20,000 $ 20,000 $ 20,000 Assigned $ $ $ Unassigned Res. For Economic Uncertainties $ 2,885,111 $ 2,810,342 $ 1,705,054 Unassigned Ending Balance $ 4,649,286 $ 1,592,323 $ 248,561

20 Manhattan Beach Unified School District MULTIYEAR BUDGET PROJECTION (Assumes November 2012 Tax Initiatives Pass) Proposed Projected Projected Estimated Actuals Budget Budget Budget REVENUES Revenue Limit $ 35,412,117 $ 35,747,489 $ 36,415,273 $ 37,398,498 Federal Revenue $ 2,319,452 $ 1,094,030 $ 1,094,030 $ 1,094,030 Other State Revenue $ 7,820,262 $ 7,901,813 $ 8,099,358 $ 8,318,041 Other Local Revenue $ 9,077,543 $ 7,578,182 $ 7,466,436 $ 7,575,512 TOTAL REVENUES $ 54,629,374 $ 52,321,514 $ 53,075,097 $ 54,386,081 EXPENDITURES Certificated Salaries $ 25,077,964 $ 26,885,733 $ 26,732,114 $ 27,079,631 Classified Salaries $ 7,880,842 $ 8,187,253 $ 8,143,675 $ 8,249,543 Employee In other Benefits words, given $ 9,800,401 the $ 10,031,976 $ 10,572,275 $ 10,709,714 Books and Supplies $ 3,671,132 $ 2,664,951 $ 2,000,000 $ 2,020,000 Services/Other Op. Exp. $ 8,277,568 $ 7,475,281 $ 6,000,000 $ 6,017,476 Capital Outlay $ 35,548 $ $ $ Other Outgo $ 2,958,766 $ 2,758,766 $ 2,758,766 $ 2,758,766 TOTAL EXPENDITURES $ 57,702,221 $ 58,003,960 $ 56,206,830 $ 56,835,130 For example, we reduced the multitude of complex factors statutory reserve for economic and unknowns for , it uncertainties (REU) from 5% to is extremely difficult to 3% in This is the project budgets for minimal amount of REU REVENUES EXPENDITURES $ (3,072,847) $ (5,682,446) $ (3,131,733) $ (2,449,049) FUND BALANCE (RESERVES) Beginning Fund Balance (July 1) $ 16,319,690 $ 13,246,843 $ 7,564,397 $ 4,432,664 Audit Adjustment and $ $ $ $ Adjusted Beginning Balance $ 16,319,690 $ 13,246,843 $ 7,564,397 $ 4,432,664 allowed by State law. Ending Fund Balance (June 30) $ 13,246,843 $ 7,564,397 $ 4,432,664 $ 1,983,615 NonSpendable Revolving Cash $ 10,000 $ 10,000 $ 10,000 Stores $ 20,000 $ 20,000 $ 20,000 Assigned $ $ $ Unassigned Res. For Economic Uncertainties $ 2,885,111 $ 2,810,342 $ 1,705,054 Unassigned Ending Balance $ 4,649,286 $ 1,592,323 $ 248,561

21 Manhattan Beach Unified School District MULTIYEAR BUDGET PROJECTION (Assumes November 2012 Tax Initiatives Pass) Proposed Projected Projected Estimated Actuals Budget Budget Budget REVENUES Revenue Limit $ 35,412,117 $ 35,747,489 $ 36,415,273 $ 37,398,498 Federal Revenue $ 2,319,452 $ 1,094,030 $ 1,094,030 $ 1,094,030 Other State Revenue $ 7,820,262 $ 7,901,813 $ 8,099,358 $ 8,318,041 Other Local Revenue $ 9,077,543 $ 7,578,182 $ 7,466,436 $ 7,575,512 TOTAL REVENUES $ 54,629,374 $ 52,321,514 $ 53,075,097 $ 54,386,081 EXPENDITURES Certificated Salaries $ 25,077,964 $ 26,885,733 $ 26,732,114 $ 27,079,631 Classified Salaries $ 7,880,842 $ 8,187,253 $ 8,143,675 $ 8,249,543 Employee In other Benefits words, given $ 9,800,401 the $ 10,031,976 $ 10,572,275 $ 10,709,714 Books and Supplies $ 3,671,132 $ 2,664,951 $ 2,000,000 $ 2,020,000 Services/Other Op. Exp. $ 8,277,568 $ 7,475,281 $ 6,000,000 $ 6,017,476 Capital Outlay $ 35,548 $ $ $ Other Outgo $ 2,958,766 $ 2,758,766 $ 2,758,766 $ 2,758,766 TOTAL EXPENDITURES $ 57,702,221 $ 58,003,960 $ 56,206,830 $ 56,835,130 multitude of complex factors and unknowns for , it is extremely difficult to project budgets for REVENUES EXPENDITURES $ (3,072,847) $ (5,682,446) $ (3,131,733) $ (2,449,049) We also drastically reduced expenditures associated with FUND BALANCE (RESERVES) Beginning books/supplies Fund Balance (July and 1) services $ 16,319,690 for $ ,246,843and $ ,564,397 $ These 4,432,664 Audit Adjustment and $ $ $ $ Adjusted Beginning Balance $ 16,319,690 $ 13,246,843 $ 7,564,397 $ 4,432,664 Ending Fund Balance (June 30) $ 13,246,843 $ 7,564,397 $ 4,432,664 $ 1,983,615 reductions represent placeholders for cuts that would need to be made somewhere in the overall budget in order to maintain a positive ending balance. NonSpendable Revolving Cash $ 10,000 $ 10,000 $ 10,000 Stores $ 20,000 $ 20,000 $ 20,000 Assigned $ $ $ Unassigned Res. For Economic Uncertainties $ 2,885,111 $ 2,810,342 $ 1,705,054 Unassigned Ending Balance $ 4,649,286 $ 1,592,323 $ 248,561

22 Manhattan Beach Unified School District MULTIYEAR BUDGET PROJECTION (Assumes November 2012 Tax Initiatives Pass) Proposed Projected Projected Estimated Actuals Budget Budget Budget REVENUES Revenue Limit $ 35,412,117 $ 35,747,489 $ 36,415,273 $ 37,398,498 Federal Revenue $ 2,319,452 $ 1,094,030 $ 1,094,030 $ 1,094,030 Other State Revenue $ 7,820,262 $ 7,901,813 $ 8,099,358 $ 8,318,041 Other Local Revenue $ 9,077,543 $ 7,578,182 $ 7,466,436 $ 7,575,512 TOTAL REVENUES $ 54,629,374 $ 52,321,514 $ 53,075,097 $ 54,386,081 EXPENDITURES Certificated Salaries $ 25,077,964 $ 26,885,733 $ 26,732,114 $ 27,079,631 Classified Salaries $ 7,880,842 $ 8,187,253 $ 8,143,675 $ 8,249,543 Employee In A other projection Benefits words, given is $ not 9,800,401 the a $ 10,031,976 $ 10,572,275 $ 10,709,714 Books and Supplies $ 3,671,132 $ 2,664,951 $ 2,000,000 $ 2,020,000 Services/Other Op. Exp. $ 8,277,568 $ 7,475,281 $ 6,000,000 $ 6,017,476 Capital Outlay $ 35,548 $ $ $ Other Outgo $ 2,958,766 $ 2,758,766 $ 2,758,766 $ 2,758,766 TOTAL EXPENDITURES $ 57,702,221 $ 58,003,960 $ 56,206,830 $ 56,835,130 multitude prediction, of complex but if current factors and trends unknowns and key for data , points it hold is true, extremely the MBUSD difficult general to project fund budgets will for face REVENUES EXPENDITURES $ (3,072,847) $ (5,682,446) $ (3,131,733) $ (2,449,049) FUND BALANCE (RESERVES) Beginning Fund Balance (July 1) $ 16,319,690 $ 13,246,843 $ 7,564,397 $ 4,432,664 Audit formidable Adjustment and challenges $ $ $ $ Adjusted Beginning Balance $ 16,319,690 $ 13,246,843 $ 7,564,397 $ 4,432,664 Ending Fund Balance (June 30) $ 13,246,843 $ 7,564,397 $ 4,432,664 $ 1,983,615 beginning NonSpendable Revolving Cash $ 10,000 $ 10,000 $ 10,000 Stores $ 20,000 $ 20,000 $ 20,000 Assigned $ $ $ Unassigned Res. For Economic Uncertainties $ 2,885,111 $ 2,810,342 $ 1,705,054 Unassigned Ending Balance $ 4,649,286 $ 1,592,323 $ 248,561

23 and what if the Governor s November tax proposals fail?

24 MULTIYEAR BUDGET PROJECTION (Assumes November 2012 Tax Initiatives Pass) Proposed Projected Projected Estimated Actuals Budget Budget Budget REVENUES Revenue Limit $ 35,412,117 $ 35,747,489 $ 36,415,273 $ 37,398,498 Federal Revenue $ 2,319,452 $ 1,094,030 $ 1,094,030 $ 1,094,030 Other State Revenue $ 7,820,262 $ 7,901,813 $ 8,099,358 $ 8,318,041 Other Local Revenue $ 9,077,543 $ 7,578,182 $ 7,466,436 $ 7,575,512 TOTAL REVENUES $ 54,629,374 $ 52,321,514 $ 53,075,097 $ 54,386,081 EXPENDITURES Certificated Salaries $ 25,077,964 $ 26,885,733 $ 26,732,114 $ 27,079,631 Classified Salaries $ 7,880,842 $ 8,187,253 $ 8,143,675 $ 8,249,543 Employee Benefits $ 9,800,401 $ 10,031,976 $ 10,572,275 $ 10,709,714 Books and Supplies $ 3,671,132 $ 2,664,951 $ 2,000,000 $ 2,020,000 Services/Other Op. Exp. $ 8,277,568 $ 7,475,281 $ 6,000,000 $ 6,017,476 Capital Outlay $ 35,548 $ $ $ Other Outgo $ 2,958,766 $ 2,758,766 $ 2,758,766 $ 2,758,766 TOTAL EXPENDITURES $ 57,702,221 $ 58,003,960 $ 56,206,830 $ 56,835,130 REVENUES EXPENDITURES $ (3,072,847) $ (5,682,446) $ (3,131,733) $ (2,449,049) LACOE projects MBUSD will lose an additional $2.8 million per year in State revenue. FUND BALANCE (RESERVES) Beginning Fund Balance (July 1) $ 16,319,690 $ 13,246,843 $ 7,564,397 $ 4,432,664 Audit Adjustment $ $ $ $ Adjusted Beginning Balance $ 16,319,690 $ 13,246,843 $ 7,564,397 $ 4,432,664 Ending Fund Balance (June 30) $ 13,246,843 $ 7,564,397 $ 4,432,664 $ 1,983,615 NonSpendable Revolving Cash $ 10,000 $ 10,000 $ 10,000 Stores $ 20,000 $ 20,000 $ 20,000 Assigned $ $ $ Unassigned Res. For Economic Uncertainties $ 2,885,111 $ 2,810,342 $ 1,705,054 Unassigned Ending Balance $ 10,331,732 $ 1,592,323 $ 248,561

25 PRIORITIES FOR THE MBUSD BUDGET Students MBUSD Budget Staff Facilities, Grounds, IT and Infrastructure

26 Budget Priorities for Maintenance and Operations

27 M&O EQUIPMENT REPLACEMENT Item Description Replace or Repair Priority Qty Unit Price Total Cost Van (3/4 ton) x 1 1 $ 30,000 $ 30,000 PickUp Truck (1/2 ton) x 1 1 $ 20,000 $ 20,000 Branch shredder (for tree trimming) 2 1 $ 4,000 $ 4,000 Lawnmower (drivable) x 1 1 $ 20,000 $ 20,000 Lawnmower (push) x 1 2 $ 1,000 $ 2,000 Drain Cleaning Machine x 1 1 $ 3,500 $ 3,500 Power Washers x 1 3 $ 2,500 $ 7,500 Mini Jetter (Unclogging drains) 2 1 $ 3,500 $ 3,500 Gator (John Deere 4wheel hauler) 1 1 $ 12,000 $ 12,000 Tractor (Kabota) 2 1 $ 23,000 $ 23,000 Electric Carts x 1 2 $ 5,500 $ 11,000 Blower (Walk behind) 2 1 $ 3,500 $ 3,500 SubTotal $ 140,000

28 M&O EQUIPMENT REPLACEMENT Item Description Replace or Repair Priority Qty Unit Price Total Cost Van (3/4 ton) x 1 1 $ 30,000 $ 30,000 PickUp Truck (1/2 ton) x 1 1 $ 20,000 $ 20,000 Branch shredder (for tree trimming) 2 1 $ 4,000 $ 4,000 Lawnmower (drivable) x 1 1 $ 20,000 $ 20,000 Lawnmower (push) x 1 2 $ 1,000 $ 2,000 Drain Cleaning Machine This is the only item x we are 1 1 $ 3,500 $ 3,500 Power Washers recommending be added x to the 1 3 $ 2,500 $ 7,500 Mini Jetter (Unclogging drains) budget at this time. 2All 1 $ 3,500 $ 3,500 Gator (John Deere other 4wheel items hauler) are on hold until after 1 1 $ 12,000 $ 12,000 November, or later. Tractor (Kabota) 2 1 $ 23,000 $ 23,000 Electric Carts x 1 2 $ 5,500 $ 11,000 Blower (Walk behind) 2 1 $ 3,500 $ 3,500 SubTotal $ 140,000

29 Item Description MAINTENANCE PROJECTS Site These projects are necessary to complete now. All others can either wait until after November or be Replace funded Priority using other Total sources Costsuch as Funds 13, 40 and 63. Repair or AC Coil Replacement D.O. x 1 $ 11,500 AC Coil Replacement MCHS x 1 $ 33,500 AC in 2Story Bldg MCHS 2 $ 100,000 Asphalt Repair/slurry D.O. x 2 $ 10,220 Asphalt Playground Grand View x 1 $ 49,400 Asphalt Pkg. lot Grand View x 1 $ 12,960 Recoat/repair 2nd floor decks MCHS x 1 $ 28,400 Recoat/repair 2nd floor decks MBMS x 1 $ 6,800 Resurface play matting Pacific x 1 $ 27,000 Resurface play matting Meadows x 1 $ 22,000 Resurface play matting Pennekamp x 1 $ 17,000 Resurface play matting PreSchool x 1 $ 31,485

30 Item Description MAINTENANCE complete now. PROJECTS All others can either Site These projects are necessary to wait until after November or be funded using other sources such as Funds 13, 40 and 63. Repair or Replace Priority Total Cost Replace vinyl floor in portable Meadows x 2 $ 3,000 Replace vinyl floor in portable PreSch x 2 $ 4,470 Replace vinyl floor in half rm 2 & 15 PreSch x 2 $ 7,000 Carpeting (1 room) Meadows x 1 $ 4,500 Carpeting (1 room) Pennekamp x 1 $ 4,500 Carpeting (Office) PreSch x 1 $ 10,500 Play Structure PreSch x 1 $ 39,500 Paint School Pennekamp x 1 $ 40,000 Backpack Hooks Pennekamp 2 $ 5,000 Tree Trimming All Sites 1 $ 50,000 Sidewalk Repair due to tree roots Pacific x 1 $ 25,000 Sidewalk Repair due to tree roots MBMS x 1 $ 25,000

31 MAINTENANCE PROJECTS Item Description Site Repair or Replace Priority Total Cost Remove equipment and asphalt MBMS 1 $ 10,500 Playground Improvement (BLevel) Grand View 2 $ 300,000 Termite Tenting Robinson 2 $ 12,500 SubTotal $ 891,735 X These projects are necessary to complete now. All others can either wait until after November or be funded using other sources such as Funds 13, 40 and 63. The budget already contains projected expenditures of $300,000 for maintenance projects. So, we are carrying this expenditure forward to , with no additional increases needed.

32 Budget Priorities for Information Technology

33 IT EQUIPMENT and PERSONNEL Item Description Replace or Repair Priority Qty Unit Price Total Cost Virtual Servers x 1 1 $ 150,000 $ 150,000 SFP Connectors 2 1 $ 120,000 $ 120,000 Smartnet Switches (Warranty/Yr.) 1 1 $ 100,000 $ 100,000 Backup Generator 2 1 $ 30,000 $ 30,000 Wireless for Math/Science Bldg. * 1 1 $ 100,000 $ 100,000 Network Access Control 1 1 $ 75,000 $ 75,000 Student Information System (SIS) * x 1 1 $ 150,000 $ 150,000 Network Engineer 1 1 $ 100,000 $ 100,000 SubTotal $ 825,000 NOTE: Costs for new SIS system and wireless for new math/science building at MCHS are rough estimates.

34 IT EQUIPMENT and PERSONNEL Item Description Replace or Repair Priority Qty Unit Price Total Cost Virtual Servers x 1 1 $ 150,000 $ 150,000 SFP Connectors 2 1 $ 120,000 $ 120,000 Smartnet Switches (Warranty/Yr.) 1 1 $ 100,000 $ 100,000 Backup Generator 2 1 $ 30,000 $ 30,000 Wireless for Math/Science Bldg. * 1 1 $ 100,000 $ 100,000 Network Access Control 1 1 $ 75,000 $ 75,000 Student Information System (SIS) * x 1 1 $ 150,000 $ 150,000 Network Engineer 1 1 $ 100,000 $ 100,000 SubTotal $ 825,000 These items are needed right away. All others can either wait until after NOTE: Costs for new November SIS system or and be wireless funded using for new math/science sources building other at MCHS than the are general rough estimates. fund.

35 Budget Priorities for Student/Teacher Technology

36 STUDENT/TEACHER TECHNOLOGY Item Description Qty Unit Price Total Cost Funding TOSA for 21 st Century Teaching & Learning 2 $ 90,000 $ 180,000 MBEF ipads for MS Students (Additional ipads Needed for 30% Checked Out) 300 $ 500 $ 150,000Chevron Grant EBackpack Platform for ipads 1 $ 9,000 $ 9,000Chevron Grant Training Days for MS Teachers 2 $ 11,000 $ 22,000Title II Training Days for Elem Teachers 2 $ 4,000 $ 8,000 Title II 2 Collaboration Days for each ipad Teacher 220 $ 115 $ 25,300Title II Hours for MBUSD Trainers 200 $ $ 6,400 Chevron Grant Days of IT Support 60 $ 200 $ 12,000Chevron Grant Total $ 412,700 Net Cost to the MBUSD General Fund $ 0

37 STUDENT/TEACHER TECHNOLOGY The total general fund impact of implementation of 1:1 IPads at MBMS Item is estimated Description to be $0.00 for Qty Unit All costs associated with this item will Price either be postponed to a later time or covered using restricted revenues such as our grant from Chevron. Total Cost Funding TOSA for 21 st Century Teaching & Learning 2 $ 90,000 $ 180,000 MBEF ipads for MS Students (Additional ipads Needed for 30% Checked Out) 300 $ 500 $ 150,000Chevron Grant EBackpack Platform for ipads 1 $ 9,000 $ 9,000Chevron Grant Training Days for MS Teachers 2 $ 11,000 $ 22,000Title II Training Days for Elem Teachers 2 $ 4,000 $ 8,000 Title II 2 Collaboration Days for each ipad Teacher 220 $ 115 $ 25,300Title II Hours for MBUSD Trainers 200 $ $ 6,400 Chevron Grant Days of IT Support 60 $ 200 $ 12,000Chevron Grant Total $ 412,700 Net Cost to the MBUSD General Fund $ 0

38 Budget Priorities for Staff For the budget, high priority includes incorporating $1.5 million for enhancements to employee total compensation, above and beyond step and column. Includes: $900,000 increase in compensation for only. $350,000 ongoing increase in compensation. $250,000 in health benefits

39 Summary of General Fund Priorities Incorporated into the Budget

40 GENERAL FUND BUDGET INCREASES FOR Students $0.00 $1.5 million MBUSD Budget $320,000 MBUSDEE mployees Facilities, Grounds, IT and Infrastructure

41 Our Recommendations Adopt the proposed budget, including the incorporation of priority items for students, staff and infrastructure. Continue monitoring all expenditures, examine the revised budget after the November elections, then begin budget planning for Continue working with all employee groups to gain common understanding of our challenges and build consensus and collaboration around possible solutions.

42 Questions? How do I get out of this bag?