SAN DIEGO UNIFIED SCHOOL DISTRICT

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SAN DIEGO UNIFIED SCHOOL DISTRICT 2015-16 THIRD INTERIM

1 SAN DIEGO UNIFIED SCHOOL DISTRICT THIRD INTERIM FINANCIAL REPORT UPDATE B O A R D O F E D U C A T I O N M A Y 1 0,

THIRD INTERIM AGENDA Requirements of the CA Education Code Changes to the Financial Reports Since Second Interim Reporting Period Multi-Year Projections (MYPs)

2 THIRD INTERIM AGENDA Requirements of the CA Education Code Changes to the Financial Reports Since Second Interim Reporting Period Multi-Year Projections (MYPs) Assumptions (MYPs for General Fund only) Updated General Fund Financial Projections (as of April 30, 2016) Cash Flow Projections (as of March 31, 2016) Next Steps 2

3 REQUIREMENTS OF THE CA EDUCATION CODE Qualified and Negative Districts are Required to Submit a Third Interim Financial Report to the County Office by May 15, 2016 Reflect the District s Projected Budget Status as of April 30, 2016 Update to General Fund and Cash Balances District is Not Required to Update Certification Status 3

4 CHANGES SINCE THE SECOND INTERIM REPORTING PERIOD Third Interim Report: Reflects No Financial Reporting Changes from Second Interim in any of the Following Categories: Revenues Expenditures Contributions 4

5 MYP ASSUMPTIONS - UNCERTAINTIES Every Student Succeeds Act (ESSA) TRANS Issuance Higher Borrowing Rates Food Services Potential Contribution Minimum Proportionality Percentage (MPP) Prop 30 Tax Extension LCFF Implementation (Prop 98 Guarantee) One-Time Funds STRS and PERS Pension Liability Reporting GASB 68 5

6 MYP ASSUMPTIONS GENERAL FUND REVENUES REVENUE ASSUMPTIONS Description 2015/ / /18 LCFF Funding Model Funded ADA 102, ,659 99,127 COLA* 1.02%.47% 2.13% Funding Gap* 51.97% 49.08% 45.34% Federal : Impact Aid $8.0 Mil $8.0 Mil $8.0 Mil Other State Mandated Cost Reimbursement $3.74 Mil $ 3.66 Mil $ 3.60Mil Mandated Cost Reimbursement (one-time) $ - $ Mil $ - Lottery (GFU- $128; GFR-$34.00) $140/ADA $140/ADA $140/ADA Local : Interest.690%.690%.690% Transfers In Redevelopment Agency (RDA) $10.3 Mil $10.3 Mil $10.3 Mil Sale of Property $2.8 Mil $ - $ - Hourly Cost - Temporary Classroom Moves $.3 Mil $ - $ - Retiree Medical Fund $0.4 Mil $0.4 Mil $0.4 Mil 6

7 MYP ASSUMPTIONS GENERAL FUND EXPENDITURES EXPENSE ASSUMPTIONS Description 2015/ / /18 Salaries Step and Column: Cert / Class 2.06% /.73% 1.76% /.92% 1.76% /.92% Salary Increases* 4% 0% 0% STRS 10.73% 12.58% 14.43% PERS 11.85% 13.05% 16.60% Health & Welfare Premiums 6.50% 7.00% 7.00% Materials & Supplies (Consumer Price Index- CPI) 1.90% 2.22% 2.52% Contracted Services (CPI) 1.90% 2.22% 2.52% Utilities $26.0 Mil $31.2 Mil $33.9 Mil Implemented Board Solutions/Budget Deficit $ - $24.6 Mil $108.8 Mil Transfers Out Liability Insurance $3.6 Mil $3.6 Mil $3.6 Mil Property Insurance $3.3 Mil $3.3 Mil $3.3 Mil Child Development $6.2 Mil $9.2 Mil $9.2 Mil Retiree $2.1 Mil $2.1 Mil $2.1 Mil Contributions Special Education $188.2 Mil $195.0 Mil $195.0 Mil Restricted Routine Maintenance (RRM) $29.1 Mil $27.6 Mil $27.6 Mil Community Day School $2.0 Mil $ - $ - 7

8 MYP GENERAL FUND UNRESTRICTED 2015/ / /18 DESCRIPTION PROJECTION PROJECTION PROJECTION Beginning Balance $144,094,134 $73,580,795 $29,532,028 Revenues 983,432,106 1,028,007,321 1,022,584,780 Expenditures (834,687,104) (868,029,034) (903,648,621) Projected Shortfall Solutions 2016/17 24,564,230 Projected Shortfall Solutions 2017/18 108,841,125 TOTAL EXPENDITURES (834,687,104) (843,464,804) (794,807,496) Other Sources / Uses (219,258,341) (228,591,284) (228,591,284) Ending Balance $ 73,580,795 $ 29,532,028 $28,718,028 SURPLUS/(SHORTFALL) (70,513,339) (44,048,767) (814,000) Required Reserves Economic Uncertainties $26,281,000 $26,950,000 $26,136,000 Reserve for FY16/17 Projected Shortfall 44,717, Stores 1,674,228 1,674,228 1,674,228 Prepaid Expenses 850, , ,000 Revolving Cash 57,800 57,800 57,800 Total Required Reserves $73,580,795 $29,532,028 $28,718,028 Reserve (Shortfall) / Surplus $0 $0 $0 Multi-Year Projection involves hybrid approach to include deficit solutions 8

9 MYP GENERAL FUND TOTAL 2015/ / /18 DESCRIPTION PROJECTION PROJECTION PROJECTION Beginning Balance $ 162,318,205 $ 140,129,564 $ 68,468,453 Revenues 1,278,072,041 1,265,067,907 1,258,406,016 Expenditures (1,300,360,419) (1,330,737,182) (1,290,072,747) Other Sources / Uses 99,737 (5,991,836) (5,991,836) ENDING BALANCE $ 140,129,564 $ 68,468,453 $ 30,809,886 SURPLUS/(DEFICIT) $ (22,188,641) $ (71,661,111) $ (37,658,567) Required Reserves Economic Uncertainties $ 26,281,000 $ 26,950,000 $ 26,136,000 Reserve for FY16/17 Deficit 44,717, Restricted Grant Carryover 66,548,769 38,936,425 2,091,858 Unexpended Balances / Set Aside* School Site Ending Balances Stores 1,674,228 1,674,228 1,674,228 Prepaid Expenses 850, , ,000 Revolving Cash 57,800 57,800 57,800 Total Required Reserve $ 140,129,564 $ 68,468,453 $ 30,809,886 Reserve (shortfall) / Surplus $ - $ - $ - 9

Millions 2015-16 GENERAL FUND PROJECTED CASH FLOW WITH TRANS $250.0 $225.0 TTRANS $ 185 Million $200.0 $175.0 $150.0 $125.0 $100.

52 $35.80 $136.38 $243.93 $195.09 $132.55 Projected $147.90 $138.52 $101.

10 Millions GENERAL FUND PROJECTED CASH FLOW WITH TRANS $250.0 $225.0 TTRANS $ 185 Million $200.0 $175.0 $150.0 $125.0 $100.0 $75.0 $50.0 $25.0 JUL AUG SEPT OCT NOV DEC DEC JAN FEB MAR APR MAY JUN Actual $54.20 $60.71 $93.79 $89.14 $67.52 $35.80 $ $ $ $ Projected $ $ $ $- *Reflects Monthly Balances after Payroll *Any Increase/Decrease in Entitlement for this Fiscal Year will Not be Realized Until the P-2 Certification in July * As of March 31,

11 SOLUTIONS Description Amount (in millions) Program Vacancy Savings (Special Education) $10.0 Position Review $3.0 Funding Alignment $5.0 Program Adjustments $6.6 Total Solutions $

12 CLOSING REMARKS Governor s May Revise Will Provide a Much Clearer Fiscal Picture for Budgeting Update to be shared on May 24,

13 BUDGET DEVELOPMENT PROCESS NEXT STEPS Step Task Date 1 LCAP Community Stakeholder Input September 2015 June Informational Update to Board on Third Interim May 10, May Revise Board Presentation May 24, Public Hearing and Adoption of Budget and LCAP (First Reading) 5 Board Adoption of Budget and LCAP (Second Reading) BOARD ACTION 6 Board Approval of TRANs Resolution BOARD ACTION Adopted Budget and LCAP due to the SDCOE June 14, 2016 June 28, 2016 June 28, 2016 June 30,

14 QUESTIONS?

Board of Education Budget Adoption June 28, 2016

Board of Education Budget Adoption June 28, 2016 SAN DIEGO UNIFIED SCHOOL DISTRICT Board of Education 2016-17 Budget Adoption June 28, 2016 Presentation Agenda Opening Remarks Local Control Funding Formula (LCFF) Multi-Year Assumptions 2016-17 Budget