TAMALPAIS UNION HIGH SCHOOL DISTRICT Adopted Budget Report and Multiyear Fiscal Projection

Transcription

1 TAMALPAIS UNION HIGH SCHOOL DISTRICT Adopted Budget Report and Multiyear Fiscal Projection June 23, 2015

2 Table of Contents Governor s Revised State Budget TUHSD Primary Budget Components... 6 General Fund Revenue Components... 7 Education Protection Account... 7 Operating Expenditure Components... 8 Contributions to/from Restricted Programs... 9 General Fund Summary Cash Flow Fund Summaries Multiyear Projection Planning Factors Appendices Proposed Budget and MYP Fund Balances Above Minimum Reserve Other Back-up SACS Financial Reporting

3 TamalpaisUnionHighSchoolDistrict AdoptedBudgetReportandMultiyearFiscalProjection PublicHearing June15,2015 Adoption June23,2015 LocalEducationalAgencies(LEA)arerequiredtoadoptabudgetpriortoJuly1ofeachyearin ordertoauthorizetheexpenditureoffunds.theproposedbudgetisonlyaninitialblueprint forrevenuesandexpendituressincethepreparationoftheproposedbudgetoccursbeforethe Statehasenacteditsbudget,andbeforeactualexpendituresareknownforthecurrentyear. Intheeventthatmaterialrevisionsarenecessary,arevisedbudgetwillbepresentedtothe Boardnolessthan45daysaftertheEnactedStateBudget. Illustratedbelowisasummaryoftheproposedstatebudgetandbudgetguidelinesasprovided bythecountyofficeofeducation&schoolservicesofcalifornia,aswellastheestimated financial activity for through In addition, the Proposed Budget Report contains detailed financial reports, variance analysis reports, and multiyear projections specifictotamalpaisunionhighschooldistrict. Governor srevisedstatebudgetproposal MayRevision TheGovernorreleasedhisrevisedJanuary201516budgetproposalonMay14,2015(May Revision),whichoutlinedanincreaseofgeneralfundrevenuesfromtheJanuaryproposalover the threeyear forecast period: , , and As a result, K14 school districts&communitycollegeswillreceive$5.5billionofthenewgeneralfundrevenuewhich producesanincreaseofover$6billioninproposition98funding,afterincludingadditional local property taxcollections.therefore, Proposition 98 spending is estimated at $68.4billion,whichiscomprisedofonetime&ongoingspending.Illustratedbelowarethe majorcomponentsofthemayrevision: Proposition98K14spendingincreasesovertheinitialJanuarybudgetproposal: $240millionin $3.1billionin $2.7billionin FundingfortheLCFFwassignificantlyincreasedbyanadditional$2.1billionto $6.1billion,increasingthe201516gapfundingpercentfrom32.1%to53.08%. Onetimemandaterepaymentsareanadditional$2.4billion,foratotalof$3.5 billion,whichwilloffsetanyapplicablemandateclaimreimbursementsfor LEAs. AdultEducationtheMayRevisionmaintainsthe$500milliontoestablishthe AdultEducationBlockGrantprogramprovidingfundsforadulteducationto schooldistrictsandcommunitycolleges. Anadditional$150million(totalof$900million)inonetimeProposition98 fundingineachofthenextthreeyearstosupportatransitionalcareer TechnicalEducation(CTE)IncentiveGrant. 1

4 2 P age $1.2millionincreasetotheK12MandatedProgramBlockGrantforincreased participation(ratesremainunchanged). Local Control Funding Formula: The Local Control Funding Formula (LCFF) is intended to provideafundingmechanismthatissimpleandtransparentwhileallowinglocaleducational agencies (LEAs) maximum flexibility in allocating resources to meet local needs. While the formulaitselfisrelativelystraightforward,thetransitionfromrevenuelimitfundingtothelcff ismorecomplex.theprimarycauseforthiscomplexityisthestate scommitmenttoensuring thatallleasarefundedatnolessthantheyreceivedin201213onaperpupilbasis. TheTargetEntitlementrepresentswhataLocalEducationalAgency(LEA)willreceiveatfull implementation.the funding basis under the LCFF shifts from a primarily Average Daily Attendance (ADA) driven model to one that places emphasis on the student population/demographics, as well as the District s ADA.It is calculated annually based on student population (ADA, enrollment, unduplicated pupil percentage (UPP); foster youth, socioeconomically disadvantaged, and English learners). As illustrated below, it contains multiplefundingallocations: ThemostdistinctdifferencebetweenrevenuelimitfundingandtheLCFFduringthetransition relates to the role and impact of CostofLivingAdjustments (COLA). Under revenue limits, COLAs(andtheirdeficits)playedthecentralroleindeterminingchangesinyearoveryear funding;underthelcff,colasarebutonestepintheformula scalculation.illustratedbelow arethebasiccomponentsoftheformulaandtransitionintothelcff: 2

5 3 P age AverageDailyAttendance(ADA) o Similartorevenuelimits,fundingiscalculatedonADA AnnualCOLA o DeterminedbytheimplicitpricedeflatorassetinMayforthebudgetyear andestimatedbythedepartmentoffinance(dof)forthetwosubsequent yearsforuseinprojections Appliedtogradelevelbasegrants,whichdrivesgradespanadjustment andsupplementalandconcentrationgrantcalculations UnduplicatedPercentages o Certifiedthroughenrollmentdataeachfall(AppliedtoSupplementaland Concentrationgrantcalculations) PercentageofGapFundingDuringTransition o SetbytheDOFforthecurrentyearandestimatedbytheDOFforthetwo subsequentyearsforuseinprojections TheDepartmentofFinance(DOF)releasedthefollowingupdatestotheestimatedgapfactors andcolapercentagesasofmay2015: Actual Estimate Estimate Estimate LCFFGapFundingPercentage 29.97% 53.08% 37.40% 36.74% AnnualCOLA 0.85% 1.02% 1.60% 2.48% FullimplementationoftheLCFFisanticipatedtooccurby IftheEnactedStateBudget adoptsthegovernor sproposedgappercentageof53.08%,nonbasicaiddistrictswillhave closedabout70%ofthetotalgapoverthefirstthreeyears(whencombinedwiththe &201415gapfactors.) SupplementalandConcentrationGrants:EducationCode increasestheLCFFbase grant by a supplemental grant and a concentration grant. These are determined by LEAs unduplicatedcountofpupilswhoareeligibleforfreeandreducedpricemeals,and/orwhoare classifiedasenglishlearners,orasfosteryouth. TheSuperintendentofPublicInstructionwillannuallycomputethepercentageofunduplicated countusingthecriteriaabove,utilizingdatareportedthroughthecalifornialongitudinalpupil AchievementDataSystem(CALPADS).Apupilwhoisidentifiedinmorethanonecategorywill only be counted once in determining the unduplicated pupil count. This data is subject to annualreviewandvalidationbythecountyofficeofeducationandissubjecttoauditunder thestateauditguidelines. Local Control Accountability Plans: Effective , the LCFF relies on the use of accountability plans in shifting control of LEA budgets from the State to the local level. 3

6 4 P age Therefore,schooldistrictsandcountyofficesofeducation(COEs)arerequiredtoadoptaLocal Control and Accountability Plan (LCAP) using a template adopted by the State Board of Education(SBE). ItisrequiredthattheLCAPbeeffectiveforthreeyears(updatedannually),andincludeannual goalsforpupils(includingeachsubgroupofpupils)tobeachievedforstateandlocalpriorities, aswellas,identifythespecificactionstheschooldistrict,orcoe,willtakeduringeachyearof theplantoachievespecifiedgoals. PriortoadoptingorupdatingtheLCAP,adistrictmustprovidethepublicandparentadvisory committees(includeselparentadvisorycommittees)anopportunitytoreviewandcomment ontheproposedlcap.inaddition,adistrictmustholdatleastonepublichearingtosolicit public comments regarding the LCAP, and must adopt the LCAP at a subsequent public meeting.further,thelcapmustbeadoptedbeforeabudgetisadopted. K3ClassSizeAugmentation(notapplicabletoTUHSD):ThebasegrantfortheK3gradespan increasesbyanaddonof10.40%forreductionofclasssizesinthesegradestoanaverage,by school site, of no more than 24:1 (or a locally bargained alternative ratio) at full implementationofthelcff. Regional Occupational Programs/Career Technical Education: Regional Occupational Programs(ROP)/CareerTechnicalEducation(CTE)fundingwasrolledintotheLCFFbasefor districtsandcountyofficesthatreceivedthefundingdirectlyfromthestate.districtsareno longerrequiredtoabidebythe201213expendituremaintenanceofeffortrequirementsince itonlyrelatedto201314and Eventhoughthe2.6%gradespanadjustmentisunrestricted,theintentofthefundingisto allowdistrictstoprovideforcteinamannerconsistentwiththelcff sfocusonflexibilityand localcontrol.actecomponentisrequiredinthelocalcontrolandaccountabilityplans.senate Bill 97 clarified that LCAPs should include goals related to the percentage of pupils that complete careertechnicaleducationsequencesorprogramsofstudythatalignwithstate boardapprovedcareertechnicaleducationalstandardsandframeworks. Additionally,asnotedabove,theMayRevisionincludesaproposaltoprovide$900millionin onetimefundingforcompetitivecareertechnicaleducation(cte)incentivegrantstosupport atransitionalprogramforeachofthenextthreeyears:$400millionin201516,$300million in and $200 million in The minimum localtostate funding match ratio requirementis1.5:1in201617and2:1in FederalCTEfunds,includingCarlPerkinsfunding,arenotpartoftheLCFFandcontinuetobe subjecttoallexistingcomplianceandreportingrequirements. HomeToSchoolTransportation:HometoSchoolTransportation,includingspecialeducation andsmallschooldistricttransportation,isapermanentaddontolcfftargetentitlements. Theprogramhasbeenrepealed,althoughthefundsaremadeavailabletotheschooldistricts, countyofficesofeducationandcharterschoolsthatpreviouslyreceivedthisfunding. 4

7 5 P age Theuseofthefundswasintendedtobeflexibleforanyeducationalpurpose.However,the budgetcontainstransportationmaintenanceofeffortlanguagetocontinueexpendingatthe samelevelasreceivedinrevenueforthispurposein201213[seeeducationcode2575(k)(1) andeducationcode (a)(6)(b)].thisrequirementisongoing. CountyOfficeGeneralPurposeTransfer:Traditionally,revenuelimitfundsforstudentsin countyoperatedspecialdayclassesandcommunityschoolshadbeentransferredtocounty officesofeducation(coes)basedontherevenuelimitofthestudent sdistrictofresidence. However, under the LCFF, these funds instead flow to the student s district of residence, requiringamanualtransfertotheircoeatthelocallevel. CaliforniaStateStandardsandOtherLocalPriorities(onetimefunding):Asdescribedabove, anadditional$2.4billioninproposition98resourcesforatotalof$3.5billionisproposedto beappropriatedinonetimefunding,whichamountstoapproximately$601perada.while these funds are unrestricted and can be spent in any manner approved by the LEA, the Governorencouragestheseonetimefundstobeusedtoinvestinprofessionaldevelopment, newteacherinduction,instructionalmaterialsandtechnologyexpansions. DistrictReserveRequirements(SenateBill858):The2014StateBudgetActandthepassage ofproposition2lastnovemberestablishedahardcapondistrictreserves,ifallofthefollowing conditionsaremet: TheProposition98maintenancefactormustbefullyrepaid Proposition98mustbefundedbasedonTest1 Proposition 98 provides sufficient funds to support enrollment growth and the statutorycola AdepositmustbemadeintotheProposition98reservewhencapitalgainsrevenues exceed8%ofgeneralfundrevenues Sinceonlythreeofthefourconditionsweremetfor201415,therearenocapsondistrict reservesforthe201516budget. SenateBill(SB)858alsoincludedthetriggeringlanguageforthereservecap,butalsorequires that,startingwiththe201516adoptedbudgets,schooldistrictsmustaddsomestepstothe public hearing.the new requirement is to provide the following disclosures at the public hearingforthe201516budgetadoption: Theminimumreservelevelrequiredineachyear The amount of assigned and unassigned ending fund balance that exceeds the minimumineachyear Reasonsforthereservebeinggreaterthantheminimum OnJanuary21,2015,theLegislativeAnalyst soffice(lao)releasedareportregardingsenate Bill858,whichillustratedtherationalebehindschooldistrictreservelevels,thebenefitsof prudentreserves,andtherisksofreducedreserves.thereportdetailsfivemainreasonsthat schooldistrictsmaintainadequatereserves: Managingcashflow Mitigatingvolatilityinfundingorexpenditures Savingforlargerpurchases 5

8 6 P age Addressingunexpectedcosts Reducingcostsofborrowing Further, the LAO described specific risks to school districts that lower their reserves in accordancewiththesb858cap,including: Thecapwouldallowmostdistrictstomaintainonlyafewweeksofpayroll Emergencyfacilityrepairsandotherunexpectedcostswouldplacedistrictswithlow reservesinaprecariousposition Districtswithreservesbelowthecapshavebeenabouttwiceaslikelytobeflagged forfiscalintervention Districtswithlowerreservescouldhavetheircreditratingsreduced,increasingthe costofborrowingmoney CashManagement/Deferrals:Asillustratedbelow,theMayRevisionincludes$ million toeliminateallk12cashdeferralsin201415,whichisproposedtocontinueforsubsequent years. TimeFrame ApriltoJuly MaytoJuly JunetoJuly Totals $917,542,000 Eliminated Eliminated $2,352,430,000 Eliminated Eliminated $2,301,128,000 Eliminated Eliminated $5,571,100,000 $0 $0 Routine Restricted Maintenance Account:Beginning in , school districts had the abilitytoreducetheamountdepositedintoaroutinerestrictedmaintenanceaccount(rrma) from3%ofgeneralfundexpendituresto1%orbelow,givencertainconditions.thisexemption expiresonjune30,2015,whichwillrequireschooldistrictstocontributetheminimumamount equaltoorgreaterthan3%ofthetotalgeneralfundexpenditures.however,thegovernor proposesprovidinggreaterflexibilityfortheuseofthesefunds.insteadofrequiringthatthese fundsbeusedsolelyforroutinemaintenance,thegovernor sbudgetproposalwouldallow school districts to pool these funds over multiple years for the modernization and/or constructionofschoolfacilities. Proposition39:TheMayRevisiondecreasestheamountofenergyefficiencyfundsavailable to K12 schools in by $6.7 million to $313.4 million to reflect reduced revenue estimates.allfundsmustbeencumberedbyjune30,2018,andprojectsmustbecompleted byjune30, TUHSDPrimaryBudgetComponents AverageDailyAttendance(ADA),excludingCountyOfficeADA,isestimatedat3,962 6

9 7 P age EstimateADAwillincrease196and170for201617and201718,respectively. TheDistrict sestimatedunduplicatedpupilpercentageforsupplemental&concentration fundingisestimatedtobe8%.thepercentagewillberevisedbasedonfinaldata. Lotteryrevenueisestimatedtobe$128perADAforunrestrictedpurposesand$34per ADAforrestrictedpurposes MandatedCostBlockGrantis$28forK8ADA,and$56for912ADA. OneTimeMandatedCostreimbursementestimatedtobe$601perADA. Except as illustrated under Contributions to Restricted Programs, all federal and state restrictedcategoricalprogramsareselffunded. GeneralFundRevenueComponents TheDistrictreceivesfundingforitsgeneraloperationsfromvarioussources.Asummaryofthe majorfundingsourcesisillustratedbelow: Description Amount Local Control Funding Formula $53,589,756 Federal Revenues $1,022,061 Other State Revenues $3,696,824 Other Local Revenues $12,485,835 TOTAL $70,794,476 EducationProtectionAccount As approved by the voters on November 6, 2012, The Schools and Local Public Safety ProtectionActof2012(Proposition30)temporarilyincreasedtheState ssalestaxrateandthe 7

10 8 P age personalincometaxratesfortaxpayersinhightaxbrackets.thesetaxeswillgeneratemore than$8billionannuallyattheirpeak;however,theybegintoexpirecommencingin2016: The0.25%salestaxincreaseexpiresin2016(i.e.,the201617fiscalyear) Thehighbracketpersonalincometaxincreaseexpiresin2018(i.e.,the201819fiscal year) Revenues generated from Proposition 30 are deposited into a State account called the EducationProtectionAccount(EPA).AnonbasicaiddistrictwillreceivefundsfromtheEPA based on its proportionate share of statewide general purpose funds.acorresponding reductionismadetoitsgeneralpurposefunds. ThecreationoftheEPAbyProposition30providesthataportionofK14generalpurposefunds mustbeutilizedforinstructionalpurposes.whileepadollarsarepartofandnotinaddition tostateaidformostschooldistricts,theepafundingisanadditional$200peradaofstate AidforBasicAiddistricts.K14localagencieshavethesoleauthoritytodeterminehowthe fundsreceivedfromtheepaarespent,butwiththeseprovisions: Thespendingplanmustbeapprovedbythegoverningboardduringapublicmeeting EPAfundscannotbeusedforthesalariesorbenefitsofadministratorsoranyother administrativecosts(asdeterminedthroughtheaccountcodestructure) Eachyear,thelocalagencymustpublishonitswebsiteanaccountingofhowmuch moneywasreceivedfromtheepaandhowthefundswereexpended Further, the annual financial audit includes verification that the EPA funds were used as specified by Proposition 30. If EPA funds are not expended in accordance with the requirementsofproposition30,civilorcriminalpenaltiescouldbeincurred. IllustratedbelowishowtheDistrict sepafundsareappropriatedforthe201415& schoolyears.amountswillberevisedthroughouttheyearbasedoninformationreceivedfrom thestate. OperatingExpenditureComponents TheGeneralFundisusedforthemajorityofthefunctionswithintheDistrict.Asillustrated below,thelargestpartofexpendituresaresalariesandbenefitsthatcompriseapproximately 8

11 9 P age 88%oftheDistrict sunrestrictedbudget,andapproximately82%ofthetotalgeneralfund budget. Followingisagraphicaldescriptionofexpendituresbypercentage: Contributionsto/fromRestrictedPrograms Thebudgetincludesthefollowingtransfersofunrestrictedresourcestorestrictedprograms tocoverrestrictedprogramexpendituresinexcessofrevenue: 9

12 10 P age GeneralFundSummary TheDistrict s201516generalfundprojectsatotaloperatingdeficitof$801,231(adeficitof $863,790forunrestrictedactivity)andanendingfundbalanceof$23,380,388($23,224,829 for unrestricted activity). The components of the District s fund balance are as follows: revolvingcash$12,000;reserveformandatedcostrevenue$2,126,000;restrictedprograms $155,559economicuncertainty$2,147,900;andunassigned/unappropriatedof$18,938,929. CashFlow TheDistrictisanticipatinghavingpositivemonthlycashbalancesduringthe school year. 10

13 11 P age FundSummaries Asillustratedbelow,allfundsareanticipatedtohaveapositiveendingfundbalanceatJune 30,2016. MultiyearProjection GeneralPlanningFactors: InMay2015,theDepartmentofFinance(DOF)releasedthefollowingplanningfactors: Fiscal Year PlanningFactor COLA(DOF) 0.85% 1.02% 1.60% 2.48% LCFFGapFundingPercentage(DOF) 29.97% 53.08% 37.40% 36.74% STRSEmployerRates 8.88% 10.73% 12.58% 14.43% PERSEmployerRates(PERSBoard/Actuary) % % 13.05% 16.6% Lottery unrestrictedperada* $128 $128 $128 $128 Lottery Prop.20perADA* $34 $34 $34 $34 MandatedCostperADA/OneTimeAllocations (DOF) $67 $601 $0 $0 MandateBlockGrantforDistricts K8 per ADA** $28 $28 $28 $28 MandateBlockGrantforDistricts 912 per ADA** $56 $56 $56 $56 MandateBlockGrantforCharters K8 per ADA** $14 $14 $14 $14 MandateBlockGrantforCharters 912 per ADA** $42 $42 $42 $42 StatePreschoolDailyReimbursementRate** $22.28 $22.63 $22.63 $22.63 GeneralChildCareDailyReimbursement Rate ** $36.10 $36.67 $36.67 $36.67 RoutineRestrictedMaintenanceAccount 1% 3% 3% 3% *Lotteryfundingwillnolongerincludethe200708ROPandAdultEducationADAin201516andbeyond. **TheserateshavenotyetbeenupdatedwithMayRevisionprojections. Variousaspectsoftheplanningfactorsillustratedabovewillbefurtherdiscussedbelowwith thedistrict srevenueorexpenditureassumptions. 11

14 12 P age RevenueAssumptions: As noted above, the Department of Finance (DOF) released the following estimated COLA percentages.belowisacomparisonoftheestimatedgapfundingfactorsfordof&school ServicesofCalifornia(SSC): Description COLA(DOF&SSC) 0.85% 1.02% 1.60% 2.48% LCFFGapFundingPercentage(DOF) 29.97% 53.08% 37.40% 36.74% LCFFGapFundingPercentage(SSC) 29.97% 53.08% 37.40% 36.74% TheDistrictanticipatesenrollmenttoincreaseby281students.Asabasicaid,orcommunity funded,district,increasingenrollmentdoesnotgenerateadditionalpropertytaxfunding. Perpupilspendingdropsduringperiodsofrapidenrollmentgrowth. State revenue is estimated to increase for primarily due to onetime additional mandatedcostrevenue,anddecreasethereafter.localrevenueisestimatedtodecrease from201415duetotheremovalofonetimefunds,anddecreasesintheamountthedistrict expectstoreceiveforrop. ExpenditureAssumptions: Salarychangesfrom201415encompassstep&columnincreases,secondyearofnegotiated salaryincreases,aswellasadditionalteaching&supportpositions. AssemblyBill1469increasedthecontributionratesthatemployers,employeesandtheState paytosupportthestateteachersretirementsystem.asillustratedbelow,employerrates willcontinuetoincreaseuntil202021andareexpectedtobringtheretirementsystemto fullfundinginabout31years. CalSTRSRatesperEducationCodeSections and Employer 8.88% 10.73% 12.58% 14.43% 16.28% 18.13% 19.1% Member 8.15% 9.20% 10.25% 10.25% 10.25% 10.25% 10.25% (2%at60) Member (2%at62) 8.15% 8.56% 9.205% 9.205% 9.205% 9.205% 9.205% The CalPERS Board approved an employer contribution rate of % for The agencyestimatesthattheemployerratefor201617willbeapproximately13.05%.theserates arelowerthanpreviousestimates.employeerateswillcontinueat7%forclassicmembers, thosewhoweremembersondecember31,2012,andat6%fornewmembers. 12

15 13 P age Adjustmentstobenefitsreflecttheeffectsofsalarychangesnotedabove,andexpectedincreases toemployerpensioncosts. Unrestrictedsuppliesareexpectedtoincreasefor201516duetofurnishingnewclassrooms, anddecreasethereafter.restrictedsuppliesareestimatedtodecreaseduetospendingone timefundsduring servicesareestimatedtodecreasefor201516duetoexpending onetime funds in Increase of other outgo relates to increased LCFF county office transfersbasedonestimatedlcfffunding,specialeducationexcesscosts,andincreaseddebt payments.increaseofcontributionstorestrictedprogramsisprimarilyduetoaccountingfor increased costs associated with restoring the restricted maintenance contribution, and contributingadditionalfundstotheropprogramduetothelossoflocalrevenue. EstimatedEndingFundBalances: During201516,theDistrictestimatesthattheGeneralFundisprojectedtodeficitspendby $801,231resultinginanendingGeneralFundbalanceofapproximately$23.4million.After reservations, assignments, and restrictions, the unassigned /unappropriated fund balanceisestimatedtobeapproximately$18.9million. During201617,theDistrictestimatesthattheGeneralFundisprojectedtodeficitspendby $3,064,000resultinginanendingGeneralFundbalanceofapproximately$20.3million. 13

16 14 P age Afterreservations,assignments,andrestrictions,the201617unassigned/unappropriatedfund balanceisestimatedtobeapproximately$15.8million. In accordance with the disclosure requirements of Senate Bill 858, amounts over the state mandatedreserveof3%oftotalgeneralfundoutgoarereservedforthefollowingactivities: Conclusion: TheprojectedbudgetandmultiyearprojectionssupportthattheDistrictwillbeabletomeetits financialobligationsforthecurrentandsubsequentyears.therefore,thetuhsdschooldistrict expectstoreceiveanapprovedbudgetfromthecountyofficeofeducation.administrationis confidentthatthedistrictwillbeabletomaintainaneconomicuncertaintyreserveofgreater thanthreepercent,andhavethenecessarycashinordertoensurethatthedistrictremains fiscallysolvent. 14

17 REVENUES Unrestricted Restricted Total General Purpose (LCFF) Revenues: State Aid & EPA 1,357,759-1,357,759 Property Taxes & Misc. Local 52,231,997-52,231,997 Total General Purpose 53,589,756-53,589,756 Federal Revenues - 1,022,061 1,022,061 Other State Revenues 3,106, ,824 3,696,824 Other Local Revenues 10,344,094 2,141,741 12,485,835 TOTAL - REVENUES 67,039,850 3,754,626 70,794,476 EXPENDITURES Certificated Salaries 30,136,202 2,803,339 32,939,541 Classified Salaries 7,360,963 2,390,908 9,751,871 Employee Benefits (All) 12,937,866 2,289,675 15,227,541 Books & Supplies 1,955,521 1,192,086 3,147,607 Other Operating Expenses (Services) 5,185,276 3,315,900 8,501,176 Capital Outlay 33,500 20,000 53,500 Other Outgo 331,523 1,030,129 1,361,652 Direct Support/Indirect Costs (788,759) 712,787 (75,972) TOTAL - EXPENDITURES 57,152,092 13,754,824 70,906,916 EXCESS (DEFICIENCY) 9,887,758 (10,000,198) (112,440) OTHER SOURCES/USES Transfers In - - Transfers (Out) Net Other Sources (Uses) (688,791) - (688,791) Contributions (to Restricted Programs) (10,062,757) 10,062,757 - TOTAL - OTHER SOURCES/USES (10,751,548) 10,062,757 (688,791) FUND BALANCE TAMALPAIS UNION HIGH SCHOOL DISTRICT Adopted Budget General Fund Description FUND BALANCE INCREASE (DECREASE) General Fund (863,790) 62,559 (801,231) Beginning Fund Balance 24,088,619 93,000 24,181,619 Ending Balance, June 30 23,224, ,559 23,380,388 Page 15 1 of 14

18 Tamalpais Union High School District Adopted Budget and MYP Estimated Actual Proposed Budget Projection Projection Unrestricted Restricted Combined Unrestricted Restricted Combined Unrestricted Restricted Combined Unrestricted Restricted Combined Revenue General Purpose 49,934, ,934,805 53,589, ,589, ,153, ,153, ,832, ,832,695 Federal Revenue 0 1,256,806 1,256, ,022,061 1,022, ,022,061 1,022, ,022,061 1,022,061 State Revenue 1,004, ,636 1,524,140 3,106, ,824 3,696, ,005, ,824 1,595,824 1,005, ,824 1,595,824 Local Revenue 10,064,821 3,734,244 13,799,065 10,344,094 2,141,741 12,485, ,632,410 2,141,741 12,774, ,929,360 2,141,741 13,071,101 Total Revenue 61,004,130 5,510,686 66,514,816 67,039,850 3,754,626 70,794,476 67,790,686 3,754,626 71,545,312 70,767,055 3,754,626 74,521,681 Expenditures Certificated Salaries 27,577,609 2,692,651 30,270,260 30,136,202 2,803,339 32,939, ,410,302 2,846,539 34,256, ,614,002 2,889,739 35,503,741 Classified Salaries 7,167,483 2,238,638 9,406,121 7,360,963 2,390,908 9,751, ,490,563 2,433,008 9,923, ,622,363 2,475,108 10,097,471 Benefits 11,553,718 2,096,576 13,650,294 12,937,866 2,289,675 15,227, ,221,666 2,473,890 16,695, ,670,416 2,698,356 18,368,772 Books and Supplies 2,117,079 1,976,280 4,093,359 1,955,521 1,192,086 3,147,607 1,955,521 1,192,086 3,147,607 1,955,521 1,192,086 3,147,607 Other Services & Oper. Expenses 5,346,189 4,407,505 9,753,694 5,185,276 3,315,900 8,501,176 5,185,276 3,372,772 8,558,048 5,185,276 3,378,459 8,563,735 Capital Outlay 77, , ,675 33,500 20,000 53,500 33,500 20,000 53,500 33,500 20,000 53,500 Other Outgo 7xxx 23,000 1,023,987 1,046, ,523 1,030,129 1,361, ,523 1,030,129 1,361, ,523 1,030,129 1,361,652 Transfer of Indirect 73xx (712,384) 667,330 (45,054) (788,759) 712,787 (75,972) (788,759) 712,787 (75,972) (788,759) 712,787 (75,972) Total Expenditures 53,150,502 15,662,834 68,813,336 57,152,092 13,754,824 70,906,916 59,839,592 14,081,211 73,920,803 62,623,842 14,396,664 77,020,506 Deficit/Surplus 7,853,628 (10,152,148) (2,298,520) 9,887,758 (10,000,198) (112,440) 7,951,094 (10,326,585) (2,375,492) 8,143,213 (10,642,038) (2,498,824) Other Sources/(uses) 200, , Transfers in/(out) (616,207) 0 (616,207) (688,791) 0 (688,791) (688,791) 0 (688,791) (688,791) 0 (688,791) Contributions to Restricted (8,559,120) 8,559,120 0 (10,062,757) 10,062, (10,332,272) 10,332, (10,642,038) 10,642,038 0 Net increase (decrease) in Fund Balance (1,121,699) (1,593,028) (2,714,727) (863,790) 62,559 (801,231) (3,069,970) 5,687 (3,064,283) (3,187,615) 0 (3,187,615) Beginning Balance 25,210,318 1,686,028 26,896,346 24,088,619 93,000 24,181,619 23,224, ,559 23,380,388 20,154, ,246 20,316,105 Ending Balance 24,088,619 93,000 24,181,619 23,224, ,559 23,380,388 20,154, ,246 20,316,105 16,967, ,246 17,128,490 Revolving/Stores/Prepaids 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 Reserve for Econ Uncertainty (3%) 2,082,900 2,082,900 2,147,900 2,147,900 2,238,300 2,238,300 2,331,300 2,331,300 Reserve for Mandated Cost Revenue 0 2,126,000 2,126,000 2,126,000 2,126,000 2,126,000 2,126,000 Restricted Programs 93,000 93, , , , , , ,246 Unappropriated Fund Balance 21,993, ,993,719 18,938, ,938,929 15,778, ,778,559 12,497, ,497,944 Unappropriated Percent 32.0% 26.7% 21.3% 16.2% 6/16/2015 Tamalpais Adopted Budget MYP Adopted MYP Adopted Budget Page 2 16 of 14

19 Tamalpais Union High School District Adopted Budget and MYP Notes: 1 District is expected to continue to receive basic aid general purpose funding since property taxes are expected to be greater than what the District would receive from state aid. District expects property taxes to increase by approximately 7.1% for , and by 4.8% in and Decrease of other state revenue in the amount of $2,380,000 is due to removing one-time mandated cost funds. 3 Increase in parcel taxes estimated at 3% each year 4 Projections include step and column movement of 1.5% certificated and 1.76% classified. Additional staffing of 18 FTE in , 9 FTE in , and 8 FTE teachers in Projection includes estimated increases in state pension percentages for both STRS & PERS, expected H&W benefit increases of approximately 5% in and , and increased costs based on salary items noted above. 6 Additional contributions primarily relate to the increase of the following: step & column costs, and pension (STRS & PERS). 6/16/2015 Tamalpais Adopted Budget MYP Adopted MYP Adopted Budget Page 3 of 14 17

20 Adopted Budget Reasons for Assigned and Unassigned Ending Fund Balances above the Minimum Economic Uncertainty Reserve Education Code Section 42127(a)(2)(B)(1) requires providing all of the following for public review and discussion: (i) The minimum recommended reserve for economic uncertainties for each fiscal year identified in the budget. (ii) The combined assigned and unassigned ending fund balances that are in excess of the minimum recommended reserve for economic uncertainties for each fiscal year identified in the budget. (iii) A statement of reasons that substantiates the need for an assigned and unassigned ending fund balance that is in excess of the minimum recommended reserve for economic uncertainties for each fiscal year that the school district identifies an assigned and unassigned ending fund balance that is in excess of the minimum recommended reserve for economic uncertainties, as identified pursuant to clause (ii). Minimum Recommended Reserve for Economic Uncertainty & Combined Assigned and Unassigned/Unappropriated Fund Balances: Objects 9780/9789/9790: Budget MYP MYP Fund 01: General Fund $23,212,829 $20,142,859 $16,955,244 Fund 17: Special Reserve Fund for Other Than Capital Outlay Projects $1,017,859 $1,017,859 $1,017,859 Total Assigned and Unassigned Ending Fund Balances $24,230,688 $21,160,718 $17,973,103 District Standard Reserve Level (Form CS Line 10B-4) $0 $0 $0 General Fund Combined Unrest/Rest Expenses and Financing Uses (MYP Line 11) $71,595,707 $74,609,594 $77,709,297 Less District Minimum Reserve for Economic Uncertainties $2,147,871 $2,238,288 $2,331,279 Reasons for Fund Balances above Minimum Reserve for Economic Uncertainties: Remaining Balance to Substantiate Need $22,082,817 $18,922,430 $15,641,824 Fund Description of Reason Budget MYP MYP 01 Additional Reserve for Property Tax Increase/Volatility $3,643,000 $2,524,320 $2,645, Mandated Cost Funds for One-Time Expenditures $2,126,000 $2,126,000 $2,126, Projected Deficit Spending $2,989, Projected Deficit Spending $3,478,192 $3,478, Towards Expected Deficit Spending $3,900,000 $3,900,000 $3,900, Solar Project, subject to board action on financing $2,667,000 $2,667,000 $2,667, Additional Staffing for Accelerated Enrollment Growth $1,035,000 $1,035, Other Facilities Projects Related to Growth $3,279,278 $3,191,918 $3,268,336 Total of Substantiated Needs $22,082,817 $18,922,430 $15,641,824 6/16/2015 Tamalpais Adopted Budget MYP Adopted reserves Page 4 of 14 18

21 Tamalpais Union High School District Other Funds of the District Fund Balance July 1, 2014 Current Year Activity Est Fund Balance June 30, 2015 Net Budget Activity Fund Balance June 30, 2016 Fund Number and Description 11 Adult Ed Fund $451,198 ($370,619) $80,579 ($80,000) $ Cafeteria Fund $31,900 ($17,145) $14,755 $0 $14, Deferred Maintenance Fund * $1,291,810 ($1,768) $1,290,042 $0 $1,290, Special Reserve for Other Than Capital Outlay $1,217,859 ($200,000) $1,017,859 $1,000 $1,018, Foundation Special Revenue Fund $50,490 $50 $50,540 $0 $50, Building Funds $2,748,938 ($2,748,938) $0 $0 $0 40 Special Reserve for Capital Outlay $2,405,534 ($618,817) $1,786,717 $0 $1,786, Bond Interest & Redemption Fund $8,620,199 $0 $8,620,199 $0 $8,620, Self Insurance Fund $29,575 $5,050 $34,625 $20 $34,645 * District is assumed to continue funding Deferred Maintenance at the current level. 14 Tamalpais Adopted Budget MYP Adopted other funds Page 19 5 of 14

22 EPA Calculations Used for Non-Management Salaries and Benefits Education Protection Account (EPA) Budget Fiscal Year Ending June 30, 2016 Budgeted EPA Revenues: Estimated EPA Funds $ 857,800 Budgeted EPA Expenditures: Certificated Instructional Salaries $ 857,800 Total $ 857,800 6/16/2015 Tamalpais Adopted Budget MYP Adopted EPA Page 20 6 of 14

23 Tamalpais UHSD LCFF Calculations and Property Tax Projections Through LCFF Calculator Universal Assumptions Tamalpais Union High (65482) - 0 Summary of Funding Target $ 34,018,439 $ 35,378,017 $ 38,354,469 $ 40,724,089 $ 43,277,601 $ 46,692,824 $ 48,973,131 Floor 24,369,803 26,309,537 31,126,764 36,538,145 39,526,153 42,902,534 45,834,666 Applied Formula: Target or Floor FLOOR FLOOR FLOOR FLOOR FLOOR FLOOR FLOOR Remaining Need after Gap (informational only) 8,490,636 6,350,657 3,391,239 2,620,401 2,373,166 2,995,466 3,138,465 Current Year Gap Funding 1,158,000 2,717,823 3,836,466 1,565,543 1,378, ,824 - Economic Recovery Target 78, , , , , , ,393 Additional State Aid Total Phase-In Entitlement $ 25,606,573 $ 29,184,901 $ 35,199,541 $ 38,418,770 $ 41,298,287 $ 44,169,980 $ 46,386,059 TRUE TRUE TRUE TRUE Components of LCFF By Object Code State Aid $ - $ 3,117,033 $ 3,117,033 $ 3,117,033 $ 3,117,033 $ 3,117,033 $ 3,117,033 $ 3,117, Fair Share (2,690,190) (2,617,074) (2,617,074) (2,617,074) (2,617,074) (2,617,074) (2,617,074) (2,617,074) 8311 & Categoricals 3,117, EPA 749, , , , , , ,968 - Local Revenue Sources: 8021 to Property Taxes 46,159,126 48,947,000 52,590,000 55,114,320 57,759,807 60,532,278 63,437, In-Lieu of Property Taxes Property Taxes net of in-lieu 44,246,663 46,159,126 48,947,000 52,590,000 55,114,320 57,759,807 60,532,278 63,437,827 TOTAL FUNDING $ 45,423,388 $ 47,433,885 $ 50,245,959 $ 53,947,759 $ 56,511,279 $ 59,190,698 $ 62,009,205 $ 63,937,786 Excess Taxes $ 21,144,478 $ 21,052,512 $ 20,262,058 $ 17,890,418 $ 17,195,509 $ 16,961,479 $ 16,862,257 $ 17,551,727 EPA in excess to LCFF Funding $ 749,882 $ 774,800 $ 799,000 $ 857,800 $ 897,000 $ 930,932 $ 976,968 $ - 6/16/2015 Tamalpais Adopted Budget MYP Adopted lcff Page 7 of 14 21

24 Parcel Tax Projections Parcel Taxes Continue to Increase Approximately 3% Per Year 10,500,000 10,000,000 9,500,000 9,000,000 8,500,000 8,000,000 7,500,000 7,000,000 6,500,000 6,000, /16/2015 Tamalpais Adopted Budget MYP Adopted parcel tax Page 8 of 14

25 STRS and PERS Cost Increases Chew Up Much of Increases in Revenues CalSTRS Rates per EC and Actual Projected Projected Projected Projected Projected Projected Employer 8.880% 10.73% 12.58% 14.43% 16.28% 18.13% 19.10% Member (2% at 60) 8.150% 9.20% 10.25% 10.25% 10.25% 10.25% 10.25% Member (2% at 62) 8.150% 8.56% 9.205% 9.205% 9.205% 9.205% 9.205% increase 1.85% 1.85% 1.85% 1.85% 0.97% 0.97% Actual CalPERS Actual and Projected Rates Projected Projected Projected Projected Projected Projected Employer % 11.85% 13.05% 16.60% 18.20% 19.90% 20.40% Increase 0.079% 1.20% 3.55% 1.60% 1.70% 0.50% Over the Next Six Years, Additional STRS/PERS Costs on Employee Costs Grows to An Additional $7.8M Per Year (to 14% of Original Employee Costs) $70,000,000 $60,000,000 $50,000,000 $40,000,000 $30,000,000 $20,000,000 $10,000,000 $ Proj Proj Proj Proj Proj Proj Salaries & Benefits Add'l STRS/PERS 6/16/2015 Tamalpais Adopted Budget MYP Adopted strs pers 23 Page 9 of 14

26 Contributions to Restricted Programs and Other Funds Increased 15% in Contribution Contribution Contribution Contribution Budget Budget To Programs: Special Ed - Program $2,783,940 $3,333,106 $4,863,821 $6,160,826 $7,253,026 Ongoing & Major Maint $2,027,113 $2,060,793 $1,765,547 $1,991,840 $2,100,000 Special Ed - Transp $347,471 $293,641 $333,463 $345,782 $553,974 $5,158,524 $5,687,540 $6,962,831 $8,498,448 $9,907,000 To Other Funds: Adult Ed $79,760 $99,044 $59,718 $67,577 $238,136 Cafeteria $321,947 $322,505 $368,848 $453,630 $450,655 Deferred Maintenance $200,000 $200,000 $357,000 $357,000 $357,000 Special Reserve $270,000 $270,000 $445,000 $95,000 $871,707 $891,549 $1,230,566 $973,207 $1,045,791 Unrestricted GF Contributions to Programs and Other Funds $12,000,000 $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 $ Contribution Contribution Contribution Contribution Budget Budget To Programs To Other Funds 6/16/2015 Tamalpais Adopted Budget MYP Adopted contrb tam 24 Page 10 of 14

27 Major Budget Changes Between Years Unrestricted Unrestricted Budget Projection Revenue Changes Property Taxes $3,655,000 $2,564,000 Parcel Tax $279,000 $288,000 One-Time Mandated Cost Revenue $2,126,000 ($2,126,000) Contributions to Restricted Programs ($1,504,000) ($270,000) Transfer from Special Reserve ($200,000) $0 Other Revenue Changes, Transfers ($97,000) $25,000 $4,259,000 $481,000 Expenditure Changes Step/Column $551,000 $685,000 Salary Settlement, Year Two $1,390,000 $0 Additional Staff $1,771,000 $1,035,000 STRS/PERS Additional Costs $510,000 $646,000 Health & Welfare Increase $400,000 $301,000 Other Personnel Changes ($486,000) $21,000 Materials and Supplies, net of Carryover ($322,000) $0 Other Expenditure Changes $188,000 $0 $4,002,000 $2,688,000 Net Change to Unrestricted GF Budget $257,000 ($2,207,000) 6/16/2015 Tamalpais Adopted Budget MYP Adopted adj to myp 25 Page 11 of 14

28 LCFF Funding Which Includes EPA and Fair Share Funding vs Property Taxes LCFF Entitlement per ADA Estimated LCFF Funding per ADA, incl EP $ 12,115 $ 12,244 $ 12,577 $ 12,578 $ 12,600 $ 12,716 $ 12,694 $ 12,672 Estimated LCFF Entitlement per ADA $ 6,275 $ 6,610 $ 7,305 $ 8,207 $ 8,566 $ 8,872 $ 9,042 $ 9,048 Property Taxes per ADA $ 11,801 $ 11,915 $ 12,252 $ 12,262 $ 12,289 $ 12,409 $ 12,392 $ 12,374 Net Change in Entitlement per ADA $ $ $ $ $ $ $ 5.98 Net Percent Change 5.33% 10.52% 12.34% 4.38% 3.58% 1.91% 0.07% $14,000 $12,000 $10,000 $8,000 $6,000 $4,000 $2,000 $ Estimated LCFF Funding per ADA, incl EPA Estimated LCFF Entitlement per ADA Estimated LCFF Funding Exceeds Property Taxes Due to State Funding $12,800 $12,600 $12,400 $12,200 $12,000 $11,800 $11,600 $11,400 $11, Estimated LCFF Funding per ADA, incl EPA Property Taxes per ADA 6/16/2015 Tamalpais Adopted Budget MYP Adopted funding vs entitlement Page 12 of 14 26

29 Unrestricted Change to Fund Balance Actual Actual Budget Budget Proj Proj Surplus/(Deficit) 1,575, ,000 (1,138,000) (863,790) (3,069,970) (3,187,615) Surpluses and (Deficits) Indicate Change to Fund Balance District Must Focus on Eliminating Deficit Spending and Move to a Balanced Budget 2,000,000 1,500,000 1,000, ,000 - (500,000) (1,000,000) (1,500,000) (2,000,000) (2,500,000) (3,000,000) (3,500,000) Actual Actual Budget Budget Proj Proj 6/16/2015 Tamalpais Adopted Budget MYP Adopted deficit spending 27 Page 13 of 14

30 TAMALPAIS UNION HIGH SCHOOL DISTRICT Enrollment History & Projections Students Redwood Drake Tamalpais Year 6/16/2015 Tamalpais Adopted Budget MYP Adopted enrollment history 28 Page 14 of 14

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