Agenda Item B-8 Public Hearing Proposed Budget 2016/17 and Education Protection Account Board of Education May 25, 2016
2 Budget Development Process 3 year plan Requirement to look back and project forward State format requirements Cohesive timeline Board Approval Legal Requirement Budget LCAP Accounting format Includes ALL funding Focus on 2016/17 General Fund Stakeholder engagement Budget narrative format Includes LCFF Funding Focus on ALL Supplemental/Concentration Funds
3 Outline Review State Budget Solution Budget Risks Governor's May Revise Strategic 2016/17 Budget Development Budget Recommendations Next Steps
4 Update May Revise State Governor s May Revise Local Control Funding Formula $154 million over January s proposed budget of $2.9 billion $3.3 million from May Revise COLA From 0.47% to zero A loss of $1.8 million in LCFF funds A loss of $600,000 in Special Education funds One-time $1.4 billion one-time funds for prior year mandates $1.5 million from May Revise
5 Education Protection Account Proposition 30 temporary tax increase Sales tax increase for 2013-2016 Personal income tax for 2012-2018 Tax revenues received are placed into the Education Protection Account Proposition 30 includes several accountability measures: Governing board at a public hearing approves a spending plan Funds cannot be used on administrative costs Website publishing required Annual financial audit Revenue: $88,532,510 Usage: All funds will be used for teacher salary/benefit costs
6 Phase I February 10, 2016 Department One-Time Ongoing School Sites -- $5.1 million Facility Projects (A) $14.0 million -- Total Phase I $14.0 million $5.1million (A) Updated estimate on slide 13
7 Phase II February 24, 2016 Department One-Time Ongoing FTE Curriculum & Instruction Support -- $375,000 3 Gate/AP/IB Support -- $925,000 6 Expand Goal 2 -- $1.45 million 9 Total Phase II -- $2.75 million 18
8 Phase III March 30, 2016 Department One-Time Ongoing FTE Summer School -- $1.2 million -- After School -- Cost Neutral 6 Board of Education $18,000 -- -- Communications -- $85,000 -- Administrative Services -- $250,000 -- Operational Services $935,000 $2.9 million 2 Human Resources -- -- 1 Information Technology $725,000 $900,000 -- Total Phase III $1.7 million $5.3 million 9
9 Phase IV April 13, 2016 Department One-Time Ongoing FTE Prevention and Intervention -- $1.7 million 17 Research, Evaluation and Assessment -- $200,000 -- Equity and Access -- $23,000 -- Total Phase IV -- $1.9 million 17 Department One-Time Ongoing FTE Early Learning State funds and grants -- $800,000 16
10 Phase V April 27, 2016 Department One-Time Ongoing FTE Adult Education -- -- -- Chief Academic Office -- -- -- School Leadership -- -- -- Health Services -- $144,000 2 Special Education -- -- -- Total Phase V -- $144,000 2 Department POTENTIAL FUNDING SHIFTS Ongoing Medi-Cal Billing Services $700,000 Adult Transition Program, Deaf/Hard of Hearing $1,800,000
11 Phase VI May 11, 2016 Department Current Allocation One-Time Ongoing FTE Career Technical Education $400,000 $195,000 $50,000 6 English Learner Services -- -- $2.5 million 13 Total Phase VI $400,000 $195,000 $2.55 million 19 Career Technical Education Grants recently awarded California Career Pathways Trust Grant - Health (Fresno Unified s total allocation $5.4 million) Career Technical Education Incentive Grant Pathways other than Health $6 million through June 2019 $4.4 million through June 2017
12 Additional Support - May Revise Ongoing Resources Increase the number of hours elementary libraries are available to students - $300,000 Goal 2 playoff events and regional/national competitions - $100,000 Renovate high school bathrooms and external security cameras - $2.6 million
13 Additional Support - May Revise One-Time Resources Pools at McLane and Roosevelt Previous recommended allocation - $9.5 million Revised recommended allocation - $11.7 million Savings from painting and lighting projects - $700,000 May Revise additional one-time resources - $1.5 million Total increase = $2.2 million
14 Multi-Year Summary: 2015/16 through 2018/19 Unrestricted General Fund Projected 2015/16 Projected 2016/17 Projected 2017/18 Projected 2018/19 Net Unrestricted General Fund Balance: $43.19 $47.46 $48.61 $45.08 Reserve level 5.08% 5.24% 5.56% 5.03% State Minimum Reserve for Economic Uncertainty is 2% Board Policy 3100 - Reserve of 5% to 10% in stable times
15 Conclusion Resources prioritized to prepare college and career-ready graduates, supporting our most important work: classroom teaching and learning Continuing our balanced, phased-in approach to maintain financial stability Conduct Public Hearing