Ocean View School District of Orange County Budget March 7, 2017 Carol Hansen, Ed.D., Superintendent Michael Conroy, Ed.D., Deputy Superintendent Joe Webber, Director of Fiscal Services
Budget 2 Components Budget Assumptions General Fund Revenue General Fund Expenses General Fund Balance Summary Encroachment Cash Flow
Key Rate Assumptions 3 2016-17 2017-18 2018-19 2019-20* COLA (Statutory)* 0% 1.48% 2.40% 2.53% LCFF Gap Funding (DOF)* 55.28% 23.67% 53.85% 68.94% LCFF Gap Funding (SSC)* 55.28% 23.67% 34.42%** 35.88%** California CPI* 2.37% 2.72% 2.92% 2.60% STRS Employer Rates* 12.58% 14.43% 16.28% 18.13% PERS Employer Rates* 13.888% 15.80% 18.70% 21.60% One-time Discretionary Funding Educator Effectiveness Funding $1,805,317 $0 $0 $0 $0 $0 $0 $0 * Note School Services of California Dartboard
Other Assumptions 4 LCFF Revenue ADA 97% of Enrollment Declining enrollment trends Status quo regarding student demographics Using Governor s January Budget Proposal Step and Column salary increase estimate for both certificated 1.7% and classified 1.1% in 2017-18 and 2018-19 Increasing Encroachment LCAP
Combined General Fund Revenue Summary 5 GF Combined 2016-17 2017-18 2018-19 LCFF Revenues $68,317,044 $67,805,409 $68,766,342 Federal Revenues $4,355,695 $3,966,698 $3,966,698 Other State Revenues $7,181,377 $5,376,060 $5,376,060 Other Local Revenues $6,770,663 $6,771,715 $6,891,426 TOTAL Revenues $86,624,779 $83,919,882 $85,000,526 * NOTE: Budget Book 3-7-17, MYP tab
Combined General Fund Revenue Summary 6 GF Combined 2016-17 2017-18 2018-19 2019-20* LCFF Revenues $68,317,044 $67,805,409 $68,766,342 $70,060,689 Federal Revenues $4,355,695 $3,966,698 $3,966,698 $3,966,698 Other State Revenues $7,181,377 $5,376,060 $5,376,060 $5,376,060 Other Local Revenues $6,770,663 $6,771,715 $6,891,426 $7,020,651 TOTAL Revenues $86,624,779 $83,919,882 $85,000,526 $86,424,098
Combined General Fund Revenue Interim Comparisons 7 GF Combined 2016-17 2017-18 2018-19 LCFF Revenues LCFF Revenues 1 st Interim $68,317,044 $67,805,409 $68,766,342 $68,242,552 $69,279,076 $68,969,608 Difference $74,492 -$1,473,667 -$203,266 TOTAL Revenues TOTAL Revenues 1 st Interim $86,624,779 $83,919,882 $85,000,526 $86,207,731 $85,223,413 $85,028,444 Difference $417,048 -$1,303,531 -$27,918
Combined General Fund Revenue Interim Comparisons 8 GF Combined 2016-17 2017-18 2018-19 2019-20* LCFF Revenues LCFF Revenues 1 st Interim $68,317,044 $67,805,409 $68,766,342 $70,060,689 $68,242,552 $69,279,076 $68,969,608 $70,178,143 Difference $74,492 -$1,473,667 -$203,266 -$117,454 TOTAL Revenues TOTAL Revenues 1 st Interim $86,624,779 $83,919,882 $85,000,526 $86,424,098 $86,207,731 $85,223,413 $85,028,444 $86,366,363 Difference $417,048 -$1,303,531 -$27,918 $57,735
General Fund Expenditures 9 GF Combined 2016-17 2017-18 2018-19 Certificated Salaries $41,425,093 $40,086,515 $40,029,376 Classified Salaries $16,065,949 $15,915,152 $16,090,219 Employee Benefits $18,889,732 $19,344,409 $20,386,003 Books & Supplies $3,307,088 $3,791,306 $2,294,674 Services & Other Operating Expenses $7,640,878 $7,405,323 $7,508,880 Capital Outlay $191,554 $14,554 $14,554 Other Outgo $445,945 $445,945 $445,945 Support (Indirect) Costs ($361,059) ($361,059) ($361,059) TOTAL Expenditures $87,605,180 $86,642,144 $86,408,592
General Fund Expenditures 10 GF Combined 2016-17 2017-18 2018-19 2019-20* Certificated Salaries $41,425,093 $40,086,515 $40,029,376 $40,263,984 Classified Salaries $16,065,949 $15,915,152 $16,090,219 $16,254,212 Employee Benefits $18,889,732 $19,344,409 $20,386,003 $21,506,729 Books & Supplies $3,307,088 $3,791,306 $2,294,674 $2,286,882 Services & Other Operating Expenses $7,640,878 $7,405,323 $7,508,880 $7,487,770 Capital Outlay $191,554 $14,554 $14,554 $0 Other Outgo $445,945 $445,945 $445,945 $429,313 Support (Indirect) Costs ($361,059) ($361,059) ($361,059) ($361,059) TOTAL Expenditures $87,605,180 $86,642,144 $86,408,592 $87,867,831
District Cost of Opening the Doors Annual Increases 11 Increased Costs 2016-17 2017-18 () 2018-19 () 2019-20 () 3-Yr Cumulative Total Step & Column (includes PERS,STRS, WC, OSDI, Medi, SUI) $1,001,539 $991,493 $1,017,904 $1,036,017 $3,045,414 CalPERS $252,137 $317,757 $321,021 $313,405 $952,183 CalSTRS $751,339 $741,601 $740,543 $744,884 $2,227,028 Total Cost Increases $2,005,015 $2,050,851 $2,079,468 $2,094,306 $6,224,625 + / - LCFF Revenue DOF Gap Funding Projections $74,492 -$511,635 $960,933 $1,294,347 $1,743,645 Net Impact -$1,930,523 -$562,486 -$1,118,535 -$799,959 -$4,406,488
General Fund Summary 2016-17 and MYP 12 GF Combined 2016-17 2017-18 2018-19 Beginning Balance $11,652,533 $10,422,132 $7,449,870 Revenues $86,624,779 $83,919,882 $85,000,526 Expenditures (including Transfers In/Out) Net Inc/(Dec) in Fund Balance $87,605,180 $86,642,144 $86,408,592 ($1,230,401) ($2,972,262) ($1,658,066) Ending Balance $10,422,132 $7,449,870 $5,791,804 Ending Balance as % of Expenditures 11.90% 8.60% 6.70%
General Fund Summary 2016-17 and MYP 13 GF Combined 2016-17 2017-18 2018-19 2019-20* Beginning Balance $11,652,533 $10,422,132 $7,449,870 $5,791,804 Revenues $86,624,779 $83,919,882 $85,000,526 $86,424,098 Expenditures (including Transfers In/Out) Net Inc/(Dec) in Fund Balance $87,605,180 $86,642,144 $86,408,592 $87,867,831 ($1,230,401) ($2,972,262) ($1,658,066) ($1,693,732) Ending Balance $10,422,132 $7,449,870 $5,791,804 $4,098,071 Ending Balance as % of Expenditures 11.90% 8.60% 6.70% 4.66%
Contributions to Restricted Programs 14 2016-17 Special Education $9,917,029 Routine Maintenance $2,382,013 Home-to-School Transportation $963,599 Special Education Transportation $262,718
2016-17 Cash Flow Projections -- Budget Adoption 15 $24.0 $22.0 $20.0 $18.0 $16.0 $14.0 $12.0 $10.0 $8.0 $6.0 $4.0 $2.0 $0.0 June 2015-16 July Aug Sept Oct Nov Dec Jan Feb March April May June Ending Cash Balance
2016-17 Cash Flow Projections -- 1 st Interim Budget 16 $24.0 $22.0 $20.0 $18.0 $16.0 $14.0 $12.0 $10.0 $8.0 $6.0 $4.0 $2.0 $0.0 June 2015-16 July Aug Sept Oct Nov Dec Jan Feb March April May June Ending Cash Balance
2016-17 Cash Flow Projections Budget 17 $24.0 $22.0 $20.0 $18.0 $16.0 $14.0 $12.0 $10.0 $8.0 $6.0 $4.0 $2.0 $0.0 June 2015-16 July Aug Sept Oct Nov Dec Jan Feb March April May June Ending Cash Balance
Key Messages for OVSD 18 1. Student achievement requires access to quality instructional programs implemented by highly qualified and competitively compensated staff. 2. Declining enrollment continues to have a negative impact on per pupil funding. 3. The CalSTRS and CalPERS employer contribution rates have an increasingly negative impact on the District s budget and reserve. 4. Facility and technology needs continue to pose long-term sustainability concerns. 5. Special education expenditures create a substantial encroachment upon unrestricted funds. 6. The state of the economy and education funding is in question as we approach 2020-21 and full LCFF funding. 7. Economic cycles drive a need for sustainable systems, including substantial reserves and the ability to reduce programs in the event the District loses state or local funding.
Next Steps? 19 March 7th Budget Tonight approve Budget New Business, O.1 POSITIVE CERTIFICATION March, 2017 Continue Negotiations March May 2017 Continue Development of 2017-18 Budget 2017-18 LCAP May 15, 2017 Governor s 2017-18 May Revise Budget Release June 2017 LCAP and Budget Adoptions
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