Buena Park School District 2017-18 Annual Budget Governing Board Study Session Presented by: June 12, 2017 Greg Magnuson, Superintendent Kelvin Tsunezumi, Assistant Superintendent Administrative Services Tu My Vuong, Director of Fiscal Services
$115.5 $115.7 $118.8 $118.5 $124.0 $125.9 2017-18 May Revision Proposal Summary Governor s May Revision paints a brighter fiscal picture than offered in the January Proposal Although Governor lowered revenue forecast for 2016-17 by -$0.3 billion For 2017-18, revenue forecast raised by +$1.9 billion (in billions) $130.0 $125.0 $120.0 $115.0 $110.0 $105.0 $100.0 2017-18 January Budget 2017-18 May Revision 2015-16 2016-17 2017-18 2
2017-18 May Revision Proposal Summary (Cont d) Governor continues to warn that the next recession is just around the corner Stresses current recovery is third longest in post-war period and that it would be historic if there is not a recession in the next 2 years Forecasts large deficits if a recession develops Even a moderate recession expected to result in multiyear deficits of $55+ billion Despite these statements, the Budget forecast does not project a recession but assumes continued growth over the next 4 years. 3
2017-18 May Revision Proposal Summary (Cont d) School Services of California (SSC) asserts that 2017-18 revenues, specifically from capital gains revenue, may be overly aggressive $140 Capital Gains Realized by Taxpayers (In Billions) $133 $130 $120 $110 $118 $120 $115 $115 $110 $107 $126 $100 2015 2016 2017 2018 Governor's Budget May Revision However, Legislative Analyst s Office (LAO) agrees with the Governor s overall revenue forecast (with only $81 million separating the two projections). 4
2017-18 May Revision Proposal Summary (Cont d) Key components of May Revision Education related: Proposition 98 guarantee estimated at $74.6 billion Continues LCFF implementation LCFF funding rate in 2017-18 of 43.97% LCFF funding estimated at 97% of the full implementation goal COLA at 1.56% (an increase from January s estimate of 1.48%) Deferrals of $859 million, proposed in January, rescinded. 5
2017-18 May Revision Proposal Summary (Cont d) Key components of May Revision Education related: $1.04 billion ($170/ADA) in one-time discretionary funding An increase from January s $48/ADA As in prior years, funds will offset district s outstanding mandate reimbursement claims on a dollar for dollar basis Unlike prior years, disbursement not made in the budget year. Payment not scheduled till May 2019 (tail end of 2018-19 fiscal year) School district accounting regulations governed by California School Accounting Manual Procedures To recognize revenue, it must be measureable and available to pay for expenditures in the current period If Proposition 98 guarantee decreases before the 2018-19 fiscal year, these funds may never materialize SSC & OCDE recommends these funds not be included in the 2017-18 Budget or MYP due to above uncertainties. 6
January Budget vs. May Revision Item January Budget May Revision Proposition 98 Minimum Funding Guarantee 2015-16 2016-17 2017-18 LCFF Gap Funding $68.7 billion $71.4 billion $73.5 billion 23.67% or $744 million $69.1 billion $71.4 billion $74.6 billion 43.97% or $1.4 billion 2017-18 COLA 1.48% 1.56% 2017-18 One-Time Discretionary Funds $287 million $48 per ADA $1.01 billion* $170 per ADA *Not received until May 2019 7
2017-18 May Revision Proposal Summary (Cont d) Key components of May Revision Education related (Cont d): Proposes lowering Proposition 98 funding (for 2018-19 thru 2020-21), by not paying a supplemental Proposition 98 appropriation Test 3B requires Proposition 98 spending increases to be no less than non-proposition 98 spending increases. Proposed suspension would lower funding guarantee by estimated $867 million or $289 million per year for 3 years Suspended payment would accrue to the maintenance factor Concerns that this may set a precedent. 8
2017-18 May Revision Proposal Summary (Cont d) Key components of May Revision Education related (Cont d): Special Education Special Education (& other categorical programs outside of LCFF including Child Nutrition) will see only a 1.56% COLA increase While overall state enrollment declining, number of students with disabilities is increasing 95% of SELPAs report increase in autism over the past 10 years, and 38% report increases in other health impairment & emotional disturbance, three of the more costly disability categories Governor states will, spend additional time..examining issues to chart a path forward that will maximize resources to serve students while increasing transparency and accountability. 9
Special Education Enrollment Growth Historic Percent Change in Enrollment and Students With Disabilities (SWDs) 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2.29% 1.80% 1.09% 1.29% 1.45% 0.30% 0.40% -0.18% 0.06% 0.10% 0.16% -0.02% -0.14% -0.96% Percent Change in Enrollment Percent Change in Students with Disabilities 10
2017-18 May Revision Proposal Summary (Cont d) Key components of May Revision Education related (Cont d): School Facilities Funding Supports Proposition 51 Bond Sale But contingent upon increased transparency & accountability Proposes to incorporate facility program project audits into the K-12 Audit Guide and make them part of the district s annual audit State Allocation Board expected to take action on proposed changes at its June 2017 meeting Proposition 39 (Clean Energy Jobs Act Program) Proposes a final appropriation of $413.7 million for K-12 / community college energy projects Districts must spend or encumber funds no later than June 30, 2018. 11
2017-18 May Revision Proposal Summary (Cont d) Key components of May Revision Education related (Cont d): Conditions requiring a hard-cap on district reserves not met Left unaddressed were the following: Actions to alleviate increasing CalSTRS & CalPERS costs Repeal of the reserve cap. 12
Introduction 2017-18 Priorities 1. Increase student achievement through State standards based instruction 2. Create and maintain positive, safe and productive 21 st century learning environments 3. Recruit, retain and support all staff to increase student achievement 4. Enhance communication, participation and outreach for parents and community members. Note: Budget presented ties to strategies & objectives as detailed in the Local Control Accountability Plan (LCAP). 13
The General Fund District is projected to receive total of $44.5 million in LCFF funds. Breakdown of funds as follows: * $s in millions Category 2016-17* 2017-18* Diff Use of Funds Base $32.4 $32.8 $0.4 For any educational purpose Supplemental & Concentration $9.6 $9.6 $0.0 Increase or improve services for English learners, free and reduced-price meal eligible, or foster youth students Grade Span/Other $2.2 $2.2 $0.0 For any educational purpose Total $44.2 $44.5 $0.4 14
The General Fund Category LCFF Funding Rate 43.97% Unduplicated Student % (3 yr avg.) 79.28% Enrollment Funded ADA COLA One-time Discretionary Funding Lottery Key Budget Assumptions - Revenue Details 4,634 students (decline of 150 vs. prior year) 4,642 ADA 1.56% (up from 1.48% projected in January) $0/ADA (Per SSC & OCDE guidance while Governor proposes $170/ADA, $s not budgeted as apportionment not slated till May 2019) $189/ADA ($144 Unrestricted / $45 Restricted) Mandate Block Grant Revenue $28.42/ADA (unchanged from 2015-16) 15
The General Fund Key Budget Assumptions Revenue (Cont d) Category Federal Revenues Categorical Carryovers Deferred Maintenance GASB 68 (CalSTRS) Details -16% reduction vs. 2016-17 funding levels Carryovers not included (Re-budgeted at 2017-18 First Interim) Funds allocated for facility maintenance Effective 2015-16, GASB 68 required District to record on our financial reports the State of California s annual obligation related to CalSTRS. These transactions continue to be recorded in 2017-18. 16
2017-18 Annual Budget The General Fund GASB 68 Guidelines: Effective 2015-16, net pension liability for CalSTRS & CalPERS recorded on District s audited financial statements Recognizes the State s on-behalf CalSTRS annual contributions on our financial reports (i.e., annual budget, interim reports, etc.) Contributions recorded in restricted State revenues & restricted benefit expenses Dollar Value: $2.0 million (2017-18); $1.9 million (2016-17) Net impact on District s Excess/(Shortfall) is zero However, Designation for Economic Uncertainties percentage increases by approximately $60K due to these expenditures. 17
The General Fund The District s revenues come from a variety of federal, state and local sources with LCFF sources generating 81% of the District s funding District Revenue Summary Revenues 2016-17 Est. Actuals** 2017-18 Budget** LCFF Sources $ 43,901,711 $ 44,275,516 Federal* 3,287,723 2,413,432 Other State* 5,421,371 4,590,323 Local 3,461,083 3,561,594 Totals $ 56,071,888 $ 54,840,865 * Est. Actuals include categorical deferred revenues from prior years. ** Includes associated GASB 68 revenues. 18
The General Fund District Revenue by Source 2017-18 Budget Other State 8% Local 7% Federal 4% LCFF Sources 81% 19
The General Fund Revenue Components (Restricted/Unrestricted) District revenues are received as restricted or unrestricted funds. Unrestricted funds are used for general purposes and are the primary resource for the basic educational program. Restricted revenues are received for specific and limited purposes. These funds are typically referred to as categorical funds. Restricted $8.8 million Unrestricted $46.0 million Unrestricted Restricted $44.3M Unrestricted $ Generated Directly from LCFF 20
The General Fund Category Details Student to Teacher Ratios 24.2:1 (Grades K-3); 29.0:1 (Grades 4-6); 28.0:1 (Grades 7-8) [Declining enrollment plus staffing ratios, results in reduction of 8 teacher positions] Mandated Class Size Improvement for Grades K-3 Salary Increases Key Budget Assumptions - Expenditures Step & Column Increase 1.23% BPSD has a negotiated agreement with our association on a higher ratio and thus this mandate is not applicable. Only salary increases previously negotiated and authorized by the Governing Board are included. Payroll Benefits STRS: 14.43% (in 2016-17 was 12.58%) PERS: 15.531% (in 2015-16 was 13.888%) Workers Comp: 1.94% Medicare: 1.45% SUI: 0.05% Social Security: 6.20% Health Benefits: +7.6% (effective Oct. 1, 2017) 21
The General Fund Key Budget Assumptions Expenditures (Cont d) Category Supplemental Early Retirement Plan (SERP) GASB 68 (CalSTRS) Affordable Care Act (ACA) Related Routine Restricted Maintenance Account Details Incorporates savings from SERP offering. Net savings in 2017-18 of $134.7K. GASB 68 requires District to record on our financial reports the State of California s annual obligation related to CalSTRS Based on historical experience assume no eligible employees qualify or elect H&W benefits provided via ACA mandates. 2016-17: Lesser of (1) 3% of total General Fund expenditures or (2) Amount deposited in 2014-15 2017-18: Greater of (1) Lesser of 3% of total General Fund expenditures or Amount deposited in 2014-15 or (2) 2% of total General Fund expenditures 22
The General Fund Key Budget Assumptions Expenditures (Cont d) Category Retiree Benefit Obligations $266,471 Restricted Encroachments Budget Reductions At 2016-17 Second Interim (based on the January Governor s Proposal) ongoing budget reductions of $400K required effective 2017-18 forward. $5,710,867 (Special Ed only) Details Given relief from May Revision, BPSD to implement $200K in reductions. Reductions included in 2017-18 Budget consists of: Reduce payout for unused vacation; ensure employees take time-off during normally scheduled work year. ($70K in savings) Eliminate a Special Ed teacher position ($100K in savings) Defer hiring of Special Ed Coordinator position ($30K in savings) 23
The General Fund District Expenditure Summary District funds are allocated to maximize resources in the classroom and for direct services to students. The following table illustrates the District s General Fund budget allocations for 2016-17 as compared to 2015-16 Estimated Actual Expenditures. Expenditures 2016-17 Est. Actuals * 2017-18 Budget * 1000 Certificated Salaries $ 24,920,393 $ 24,087,855 2000 Classified Salaries 8,175,286 8,319,231 3000 Employee Benefits 13,601,550 14,849,322 4000 Books and Supplies 3,121,998 1,881,398 5000 Contracts & Services 5,816,785 5,270,519 6000 Capital Outlay 318,975 563,117 7100/7200/7400 Other Outgo 1,641,925 1,788,000 7300 Dir Support/Ind Costs (140,771) (159,966) Totals $ 57,456,141 $ 56,599,476 * Includes associated GASB 68 expenditures. 24
The General Fund District Expenditures by Category Books & Supplies, 3.3% Contracts & Services, 9.3% Capital Outlay, 1.0% Other Outgo, 2.9% Certificated Salaries, 42.6% Employee Benefits, 26.2% Classified Salaries, 14.7% Salaries and Benefits Represent 83.5% of Planned General Fund Expenditures 25
The General Fund Expenditure Components (Unrestricted/Restricted) Restricted, $16,200,435 Unrestricted, $40,399,041 Unrestricted Restricted Salaries and Benefits: Unrestricted $ = $36.1M (89.3%) Restricted $ = $11.2M (69.0%) 26
The General Fund Contributions & Encroachments BPSD, like other school districts, experiences General Fund encroachment for programs that do not generate sufficient revenues to cover expenses. For these programs the General Fund must contribute unrestricted dollars to maintain the program or service. Contributions for 2016-17 are: Program Contribution Amount Special Education $ 5,710,867 Special Education costs projected to continue to increase due primarily to (1) the acuity level of services required by these students & (2) increases in employee benefit costs. (Contribution for 2016-17 estimated at $5,572,237) 27
The General Fund Operating Surplus/(Deficit) & Impact on Fund Balance 2016-17 Est. Actuals 2017-18 Budget Beginning Fund Balance $ 8,770,609 $ 7,386,356 Excess/(Shortfall) Unrestricted $ (607,114) $ (1,343,595) Restricted (777,139) (415,016) Combined Excess/(Shortfall) (1,384,253) (1,758,611) Ending Fund Balance $ 7,386,356 $ 5,627,745 28
General Fund Multi-year Projections (MYP) School Services of California (SSC) Recommendations A future recession is predicted the timing is unknown Avoid excessive settlements at the bargaining table Commit to maintaining existing programs before adding new ones Use capital expenditures to make facilities more efficient and reduce operating expenses Resist using future projected dollars or one-time dollars to justify paying for on-going expenditures in the current year Ensure plans recognize low COLA environment & increased pension costs Maintain reserves in excess of the minimum required percentage. 29
Unrestricted Fund Balance Statewide Averages 2015-16 Average Unrestricted General Fund, Plus Fund 17; Net Ending Balances as a % of Total General Fund Expenditures, Transfers, and Other Uses Elementary School Districts 21.54% Buena Park School District 13.00%** High School Districts 17.19% Unified School Districts 16.45% Source: Statewide certified data * Increase relative to the reserve levels of 2014-15 ** Excludes reserves for unrestricted reserves including Kid Connection, IMFRP, OPEB, One-time Discretionary $s, etc. Ron Bennett, School Services of California No one owes any apologies for having a reserve in excess of 20% 30
MYP Considerations Governor warns of a looming recession but his forecast does not incorporate a recession in future years Proposition 98 Maintenance Factor (amount owed to K-14 Education to restore cuts imposed during the recession) accounted for bulk of prior years revenue growth and the Maintenance Factor is now almost entirely repaid LCFF funding is now 97% of full implementation. At full LCFF implementation, what can districts expect? Base grant funding will be equalized across all districts Supplemental and concentration grant funding determined by each district s Unduplicated Pupil Percentage Annual growth in LCFF funding will be determined by (1) the change in district ADA, and (2) the statutory COLA In other words, minimal increases of 1% to 3% annually. 31
Progress Toward LCFF Implementation 100% 2017-18 May Revision: 97% of full implementation Full LCFF Implementation 2017 School Services of California, Inc. 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 Actual Projected 32
MYP Considerations (Cont d) Declining enrollment trend Of 27 Orange County districts, only 7 are growing (2016-17 vs. 2015-16) An improvement from last year when only 4 districts had an increase Of the 7 districts this year, only 2 has growth in excess of 1.0% Irvine & Huntington Beach City: 3.3% & 2.1% respectively BPSD experienced decline of <1.7%> Repayment of the Maintenance Factor and the State s advance funding of LCFF masked the District s revenue loss attributable to declining enrollment Declining enrollment impact becomes more evident in 2019-20 at which time, the District is slated to experience an year over year increase in LCFF revenues of just $94.6K for the year. 33
General Fund Multi-year Projections (MYP) Assumptions: Enrollment decline of 150 students (2017-18), followed by enrollment losses of 120 & 140 students in 2018-19 & 2019-20 respectively. (Demographer projects an additional enrollment loss of 160 students in 2020-21) Certificated staffing reduced commensurate with enrollment decline 2017-18 forward. 5,400 100 5,200 5,000 50 0 49 4 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 Proj 2018-19 Proj 2018-19 Proj (50) 4,800 (100) (84) 4,600 4,400 (150) (200) (123) (117) (150) (120) (140) 4,200 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 Proj 2018-19 Proj 2019-20 Proj (250) (300) (241) Enrollment loss past 7 years! 34
General Fund Multi-year Projections (MYP) Assumptions: (Cont d) LCFF Funding Rate: District assumes the more aggressive DOF funding rate in all 3 years LCFF Funding Rate 2017-18 2018-19 2019-20 SSC Recommended 43.97% 39.03% 41.51% Department of Finance (DOF) 43.97% 71.53% 73.51% BPSD Utilized 43.97% 71.53% 73.51% $ Difference (if used SSC Funding Rate) $0 <$712.1K> <$895.5K> Class Sizes: Grades K-3: 24.2:1 Grades 4-6: 29.0:1 Grades 7-8: 28.0:1 Salary Increases Salary Step Advancement: 1.23% No new salary increases assumed beyond those previously Board approved District Paid Health Care Increase: 6.5% increase (2017-18) & 7.6 % increase per year thereafter. 35
General Fund Multi-year Projections (MYP) Assumptions: (Cont d) CalSTRS & CalPERS rates Current 2017-18 2018-19 2019-20 CalSTRS 12.58% 14.43% 16.28% 18.13% CalPERS 13.888% 15.531% 18.1% 20.8% Projected impact due to rate increases (vs. maintaining at 2016-17 rates) 2017-18 2018-19 2019-20 3 Year Total CalSTRS $446K $884K $1,303K $2,633K CalPERS $137K $354K $580K $1,071K Combined $583K $1,238K $1,883K $3,704K Incorporates GASB 68 requirements to record on BPSD s financial records the State of California s annual obligation related to CalSTRS. 36
CalSTRS Rate Increases Burden Primarily on Employers 20% Contribution Rates 15% 10% 5% 0% Employers Employees State 37
The Pension (CalSTRS & CalPERS) Challenge Unfunded liability is the shortfall between retirement benefits that governments have promised their workers and the current funding available to meet those obligations Liabilities estimated at: $96.7 billion (CalSTRS) $93 billion (CalPERS) Unfunded liability stems from: CalSTRS & CalPERS members living longer Assumed rate of returns on pension investments that may have been overly aggressive. 38
Ratio of Workers to Beneficiaries CalPERS & CalSTRS 39
Ratio of Workers to Beneficiaries CalPERS & CalSTRS 40
General Fund Multi-year Projections (MYP) Assumptions: (Cont d) Reserves (Proposed actions in support of out year cost escalations & reserve requirements) Suspension of future contributions to IMFRP (i.e., textbook) reserves 2016-17 one-time discretionary funds held in reserve, released in 2018-19 Unspecified Budget Reductions are required as follows: 2018-19: $250,000 2019-20: $2,175,000 41
General Fund Multi-year Projections (MYP) Assumptions: (Cont d) Routine Restricted Maintenance Account (RRMA) budgeted at 2014-15 RRMA levels for 2017-18 through 2019-20. 2016-17 Lesser of: 3% of total General Fund expenditures The amount deposited in 2014-15 2017-18 to 2019-20 Greater of: Lesser of 3% of total General Fund expenditures or the amount deposited in 2014-15 2% of total General Fund expenditures 2020-21 and beyond At least: 3% of total General Fund expenditures Legislative intent: Comply with minimum 3% deposit at full LCFF implementation 42
MYP Considerations Joel Montero, Fiscal Crisis Management & Assistance Team (FCMAT) If you don t show red in Year 3 (of the MYP), you re either very lucky or you re lying. Standard & Poors (S&P), in its May 2017 Bond Rating Review, reaffirmed district s bond rating at AA- but changed the district s outlook from stable to negative. The negative outlook reflects our view of the district's projected budget deficits, which we believe reflect a structural imbalance that will require significant expenditure reductions to correct. S&P specifically cites concerns attributable to increasing fixed costs related to pension obligations and continued declines in enrollment, resulting in budgetary pressure on both revenue and expenditures. 43
General Fund Multi-year Projections Multiyear Projection (MYP) Summary Fund Component 2017-18 2018-19 2019-20 Revenues $ 54,840,865 $ 55,044,369 $ 55,190,211 Expenditures & Transfers 56,599,476 56,754,741* 55,255,747 * Fund Balance +/(-) (1,758,611) (1,710,372) (65,536) Beginning Fund Balance 7,386,357 5,627,746 3,917,373 Ending Fund Balance 5,627,746 3,917,373 3,851,837 Reserves - Unrestricted 3,055,397 2,047,214 2,047,214 Reserves - Restricted 661,610 5,552 7,519 Revolving Cash 55,000 55,000 55,000 Stores 37,436 37,436 37,436 Economic Uncertainties Reserve $ 1,818,303 $ 1,772,171 $ 1,704,668 Reserves for Economic Uncertainty % 3.2% 3.1% * 3.1% * * Includes unspecified budget reductions of $250K & $2,175K in 2018-19 & 2019-20! 44
General Fund Multi-year Projections Breakdown of Unrestricted Reserves Components 2017-18 2018-19 2019-20 Kid Connection $ 79,632 $ 79,632 $ 79,632 IMFRP (Textbook) 1,122,490 1,122,490 1,122,490 OPEB 592,092 592,092 592,092 2015-16 One-time Discretionary - Budgeted in 2016-17 but projected to be unspent* 253,000 253,000 253,000 2016-17 One-time Discretionary 1,008,183 0 0 Total Unrestricted Reserves $ 3,055,397 $ 2,047,214 $ 2,047,214 * Actual unspent dollars will be re-budgeted at 2017-18 First Interim. 45
The Child Development Fund The Child Development Fund contains the State money received to operate the District s Pre-school Program 2017-18 Budget Summary Estimated Beginning Balance: $ 0 Revenues: 334,301 Expenses: 334,301 Projected Ending Fund Balance: $ 0 46
The Cafeteria Fund The Cafeteria Fund contains the Federal, State and local moneys received to operate the District s Child Nutrition Program 2017-18 Budget Summary Estimated Beginning Balance: $ 798,436 Revenues: 3,308,500 Expenses: 3,369,067 Projected Ending Fund Balance: $ 737,869 $60,567 Operating Deficit Projected for 2017-18 Note: District is appropriately spending down reserves. 47
The Cafeteria Fund Cafeteria Fund Expenditures by Category 2.0% 4.6% 31.0% 49.3% 13.1% Classified Salaries Employee Benefits Supplies Contracts & Services Dir/Ind Costs The Cafeteria Fund Provides $155,582 to the General Fund for Indirect Support 48
Facilities Funds Overview Guided by the District s Facilities Master Plan, 4 funds are used to accumulate moneys and account for expenditures for capital improvement projects. Although each of these funds are limited to specific uses, it is the intent of the Administration to coordinate available funds to develop and maintain a facilities improvement plan that maximizes resources and best serves the needs of the District Deferred Maintenance Fund Capital Facilities Fund Special Reserve Fund State & Local General Obligation Bond Funds Fund 21-24 (2014 Bond Issuance Infrastructure) Fund 21-26 (2014 Bond Issuance Technology) Fund 21-27 (2016 BAN Issuance) Fund 21-28 (2017 Bond Issuance Infrastructure) Fund 35 State Matching Funds (Seismic & Modernization) 49
Deferred Maintenance Fund The Deferred Maintenance Fund is used to account separately for District contributions and expenditures for major repairs or replacements under the 5 Year Deferred Maintenance Plan. In 2017-18 Deferred Maintenance funding is budgeted to accomplish various repair and replacement projects at school sites relating to asphalt, asbestos abatement, flooring, plumbing, painting, & roofing. 2017-18 Budget Summary Estimated Beginning Balance: $ 373,500 Revenues & Transfer In: 252,840 Expenses: 365,827 Projected Ending Fund Balance: $ 260,513 50
Capital Facilities Fund The Capital Facilities Fund is used to account separately for moneys received from fees levied on developers and may be used for specific capital improvement purposes. In 2017-18 Capital Facilities funding will be used in support of the District s Facility Master Plan. 2017-18 Budget Summary Estimated Beginning Balance: $ 0 Revenues: 304,700 Expenses: 100,000 Projected Ending Fund Balance: $ 204,700 51
Special Reserve Fund The Special Reserve Fund is used to accumulate moneys from the General Fund or other sources to provide specifically for capital improvement projects. The primary source of new funds for District s Special Reserve Fund is Redevelopment Funds from the Cities of Buena Park & La Palma. In 2017-18, Special Reserve funding will be used for copier leases, banking fees, and in support of the District s Facility Master Plan. 2017-18 Budget Summary Estimated Beginning Balance: $ 3,690,733 Revenues: 702,900 Expenses: 87,000 Projected Ending Fund Balance: $ 4,306,033 * * Note: Portion of these funds will need to be utilized in support of the District s Facilities Implementation Plan. 52
State & Local General Obligation Bond Funds The Building (Local Bond) Fund is used to collect and account for moneys generated by Measure B bonds. Use of this fund is made in support of the District s Facility Master Plan. 2017-18 Budget Summary Building (Local Bond) Funds Beg. Balance $ 9,380,986 * Revenues 0 Expenses 9,380,986 ** Fund Balance $ 0 * Entirely attributable to proceeds for AB300 Seismic Upgrade Reimbursement of $1.2 million and sale of second bond issuance of $8.2 million. ** Additional funding is required in support of our Facilities Implementation Plan from Fund 40 and/or 2018 Bond Anticipation Note. 53
Summary Comments Continuing Challenges and/or Unknowns: May Revision, just a proposal Possible recession Governor Brown is termed out Slowing of LCFF funding Bulk of Proposition 98 Maintenance Factor (which accounted for a significant portion of recent district revenues) has been repaid LCFF funding at 97% of target Declining enrollment trend Increasing costs related to Health & Welfare, CalSTRS & CalPERS. 54
Draft Financial Documents Agenda Exhibit 2017-18 Budget Documents School District Certification Unrestricted & Restricted Financial Report (General Fund) Average Daily Attendance Restricted Balance Detail Lottery Report Current Expense/Minimum Classroom Compensation Fund Summaries & Detail NCLB Maintenance of Effort Cash Flow Workers Compensation Certification Indirect Cost Rate Worksheet Schedule of Capital Assets School District Criteria & Standards Review Multi-year Financial Projections (MYP). 55
Appendices A) Enrollment Projections 2017-18 Staffing & Enrollment by School/Grade School Site Multi-year Enrollment Projection B) Facilities Plans Facilities Implementation Plan Program Update C) Cost Trend Charts D) School Services of California Fiscal Reports E) OCDE, 2017-18 Budget Advisory May Revision F) BPSD History / Superintendents G) Glossary of Terms / Acronyms 56
General Fund Multi-year Projections Multiyear Projection (MYP) Summary Fund Component 2017-18 2018-19 2019-20 Revenues $ 54,840,865 $ 55,044,369 $ 55,190,211 Expenditures & Transfers 56,599,476 56,754,741* 57,680,747 * Fund Balance +/(-) (1,758,611) (1,960,372) (2,490,536) Beginning Fund Balance 7,386,357 5,627,746 3,667,373 Ending Fund Balance 5,627,746 3,667,373 1,176,837 Reserves - Unrestricted 3,055,397 2,047,214 2,047,214 Reserves - Restricted 661,610 5,552 7,519 Revolving Cash 55,000 55,000 55,000 Stores 37,436 37,436 37,436 Economic Uncertainties Reserve $ 1,818,303 $ 1,522,171 ($ 970,332) Reserves for Economic Uncertainty % 3.2% 2.7% * (1.7%) * * EXCLUDES unspecified budget reductions of $250K & $2,175K in 2018-19 & 2019-20! 57