PALMDALE SCHOOL DISTRICT 2016-17 PROPOSED BUDGET & 2016-17 - - PowerPoint PPT Presentation

PALMDALE SCHOOL DISTRICT

2016-17 PROPOSED BUDGET &

2016-17 GOVERNOR’S BUDGET

PROPOSAL JUNE 7, 2016

2016-17 GOVERNOR’S BUDGET PROPOSAL MAY REVISION

2016-17 GOVERNOR’S BUDGET PROPOSAL MAY REVISION

• Education funding continues to be a major

driver in the 2016-17 Proposed State Budget.

• $51.4 Billion state spending in K-12
• We are ahead of schedule for implementation
• f LCFF receiving 95.7% of target in 2016-17
• Rainy Day Fund/Proposition 30/EPA funds

expire soon. Reserve requirements - LCFF GAP funding.

2016-17 GOVERNOR’S BUDGET PROPOSAL MAY REVISION

• State tax revenue reduced by $1.9 Billion
• $4 Billion state deficit projection by 2019-20

if Prop 30 does not pass.

• $50 Billion state deficit projection by 2019-20

if a recession occurs.

OVERVIEW PROPOSITION 98: 2016-17 STATE BUDGET KEY ELEMENTS FOR K-12

Proposal Purpose Finance Implications $2.9 Billion-Investing in Education Further implement LCFF - Increase Gap funding to 54.84% +$673.87 per ADA $1.6 billion-Early Education Block Grant Consolidating Preschool Programs and funding sources Not New-Received in 2015-16 $1.4 Billion-One-time discretionary funding Unrestricted Funds – Offset PY

• utstanding mandate reimbursement

claims +$237 per ADA $100 Million - Emergency Repair Loan Program To provide temp. funds to districts to address emergency facilities needs Loan amount approved $398.8 Million - K-12 Clean Energy Jobs Act Prop 39 further implementation Not New-Received in 2015-16 $167.1 Million-Statewide Facilities Bond Facility Projects – However, $1 Billion short. NOTE: We will have a K-14 School Facility $9 Billion Bond in Nov 16 Ballot

PALMDALE SCHOOL DISTRICT 2016-17 PROPOSED BUDGET

SPECIAL REPORTS:

 2016-17 EDUCATION PROTECTION ACCOUNT (EPA)  2016-17 RESERVE DISCLOSURE  2016-17 LCFF-SUPPLEMENTAL AND CONCENTRATION GRANT MINIMUM PROPORTIONALITY PERCENTAGE (MPP)

EDUCATION PROTECTION ACCOUNT(EPA)

The following information is provided in accordance with Proposition 30- California Constitution Article XIII, Section 36:

• On June 21,2016, the Governing Board of the Palmdale School District will approve a

Resolution Regarding the Education Protection Account for Fiscal Year 2016-2017, to expend EPA funds to support teacher salaries and benefits.

• The 2016-2017 EPA budgeted revenue expenditures are shown below:
• Palmdale School District 2016-2017 EPA Projected Entitlement is $24,348,997.00

Expenditures: Object Codes Amount Certificated Salaries1000-1999 16,921,646.76 STRS Contributions 3111 1,834,306.47 Medicare Contributions 3331 245,363.87 Health & Welfare Benefits 3411 8,460.82 State Unemployment 3511 521,186.71 Worker's Comp Insurance 3611 571,951.65 OPEB Contributions 3711/3751 4,246,080.71 Instructional Supplies 4310 Transfers Out (to Charter Schools) 7299 TOTAL EXPENDITURES $24,348,997.00 Revenue: Object Codes Amount Revenue Limit Sources 8012 $24,348,997.00 TOTAL REVENUE $24,348,997.00

2016-2017 RESERVE DISCLOSURE

Table #1: UNRESTRICTED GENERAL FUND (01)

Fiscal Year Total Reserve SBE Required Minimum Reserve 3% Reserve above SBE Minimum Assigned Balance Above Minimum Reserve Unassigned

• Bal. Above

Minimum Reserve 2016-2017 $42,327,439 $6,498,992 $35,828,447 $10,540,951 $25,287,496 2017-2018 $34,161,687 $6,546,287 $27,615,400 $26,429,562 $1,185,838 2018-2019 $21,651,500 $6,677,598 $14,973,902 $14,918,912 $54,990 The following information is provided in accordance with Education Code Section 42127(a)(2)(B) regulations: Table #2:RESTRICTED GENERAL FUND (01)

Fund balance for restricted sources must be reserved to use in restricted qualified expenditures only

Description 2016-17 2017-18 2018-19 Reserved - Restricted EFB Object 9740 $17,670,114 $23,649,779 $31,323,172

2016-2017 RESERVE-ASSIGNED BALANCE ABOVE MINIMUM RESERVE GENERAL FUND UNRESTRICTED

Description 2016-17 2017-18 2018-19 Revolving Cash 100,000 100,000 100,000 Stores 100,000 100,000 100,000 Other Assignment-One time funds-(Technology) 8,174,620 8,174,620 8,174,620 GAP Funding Assignment Set Aside 15,873,042 4,318,256 Assigned Board Reserve 2,166,331 2,181,900 2,226,036 Total Reserve assigned above minimum reserve $ 10,540,951 $ 26,429,562 $ 14,918,912

2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21

LCFF Base Funds GAP funding LCFF Target

GAP

GAP funded: 16-17 54.84%

GAP funding LCFF Base Grant LCFF Target

LCFF Base LCFF Base LCFF S/C LCFF S/C Base $4.7 M S/C $7.6 M LCFF S/C LCFF Base

2016-2017 LCFF-SUPPLEMENTAL AND CONCENTRATION GRANT - MINIMUM PROPORTIONALITY PERCENTAGE (MPP)

Floor $160.7 M T

• tal GAP

$22.5 M Floor:160.7 M Funding: $173 M Target: $183.2 M $183.2 Target

• $160.7 Floor

$ 22.5 Gap $ 22.5 Gap x 54.84% Gap % $12.3 Increase $44.8 S/C Target

• $30.9 S/C 16-17

$13.9 Net Gap $ 13.9 Net Gap x54.84% Gap % $ 7.6 S/C Share

30.9+7.6 = $38.5

NOTE: Due to time constraints to prepare LCAP reports, the current allocation in S/C is 38 M, this will be revised at the 45 day Budget review

18,000 18,500 19,000 19,500 20,000 20,500

2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19

20,095 19,591 19,281 19,247 19,168 19,015 18,862 18,709 CBEDS Adopted Budget

ENROLLMENT AT CBEDS

16,500 17,000 17,500 18,000 18,500 19,000 19,500 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 19,165 18,781 18,420 18,395 18,300 19,354 18,681 18,450 18,288 18,220 18,064 17,919 17,774 P1 ADA P2 ADA

Summary Fund 01.0-01.4 Restricted and Unrestricted

LCFF 81% Federal 6% Other State 6% Other Local 7% LCFF Federal Other State Other Local

Description Amount LCFF $173,137,021 Federal $12,566,923 Other State $13,433,045 Other Local $15,339,472 Total $214,476,461

Summary Fund 01.0-01.4 Restricted and Unrestricted

Main salary changes as a result of 2015-16 CSEA and PETA contract negotiation:

• 4% salary increase in 2015-2016 for CSEA members and leadership team.
• 6% salary increase in 2015-2016 for certain PETA members as detailed in

2015-2016 bargaining agreement.

• 7.8% salary increase in 2016-2017 for certain PETA members as detailed in

2015-2016 bargaining agreement.

• Additional salary increase for certificated leadership team in 2016-2017 as

a result of compensation study.

• PETA-Stipend modernization as a percent of salary schedule A1.

PERS and STRS changes:

2015-2016 2016-2017 2017-2018 2018-2019 2019-2020 CalPERS 11.847% 13.888% 15.50% 17.10% 18.60% CalSTRS 10.73% 12.58% 14.43% 16.28% 18.13%

Description Resource 2015-16 Budget Amount 2016-17 Budget Amount IDEA -Special Ed 33100.0

• 87,872

IDEA -Special Ed 33150.0

8,289 5,814

IDEA -Special Ed 33200.0

46,759 24,466

Medi-Cal -Special Ed/Health Services 56400.0

• 355,410

Other -Special Ed 58150.0

9,386 7,500

Special Ed General 65000.0 & 65120.0

17,341,796 19,900,000

3% Routine Restricted Maintenance 81500.0

5,805,775 7,979,514

LCFF Supplemental & Concentr. Grant (LCAP) Resource # 90001.0,90002.0, & 90003.0 90001.0, 2.0 & 3.0

30,934,810 38,017,418

Fund 12: 2015-16 Barg Agreement Cost Jul-Dec 90100.0

151,000

• Total Projected Contributions

00000.0

54,297,815 66,377,994

5 10 15 20 25 Spec.Ed.Prg RRMT 12.3 2.6 17.4 5.8 20.3 7.9

Contribution to Spec Ed & RRMT in Million

2014-15 2015-16 2016-17

15-16 Revenue: $17.4 million 15-16 Revenue: $0

Certificated Salaries 43% Classified Salaries 12% Benefits 26% T extbooks & Supplies 6% Svcs & Oper. Exp. 11% Capital Outlay 1% Other 0% Description Amount

• Cert. Salaries

$94,339,868.00

• Class. Salaries

$27,606,781.00 Benefits $56,025,008.52 Textbooks & Supplies $12,401,055.00 Svcs & Oper. Exp. $25,175,975.00 Capital Outlay $1,334,895.00 Other * $(250,525.00) Total Expenditures $216,633,057.52 * Includes Indirect cost charge to Other Funds.

Summary Fund 01.0-01.4 Restricted and Unrestricted

2017-18 2018-19

Step and Column Movement 1.25% ---$1,524,333 1.25%---$1,543,387 Benefits Increase 2.26%---$2,802,280 2.26%---$2,870,178 Cost of Living Adjustment to LCFF Target 1.11% 2.42% LCFF Gap Funding 73.96% 41.22% Lottery Revenue – Unrestricted $140.00 $140.00 Lottery Revenue – Restricted $ 41.00 $ 41.00 Interest Rate for 10-year Treasuries 2.43% 2.58% Consumer Price Index (CPI) 2.26% 2.49% LCFF Unduplicated % for Supplemental and Concentration Grants 86% 86%

CHANGES TO MULTI-YEAR PROJECTION FACTORS

20,000,000 40,000,000 60,000,000 80,000,000 100,000,000 120,000,000 140,000,000 160,000,000 180,000,000 200,000,000 LCFF Federal Other State Other Local LCFF Federal Other State Other Local 2016-17 173,137,021 12,566,923 13,433,045 15,339,472 2017-18 180,523,446 12,412,971 7,728,060 15,339,472 2018-19 182,201,046 12,524,748 7,701,542 15,339,472 + 4.27%

17-18: -1.23% 18-19: +0.90% 17-18: -42.47% 18-19: -0.34 % 17-18: 0% 18-19: 0%

+ 0.93% Changes Fed Rev Projection: Proposal list $10.3 Million in 17-18 &18-19 Changes Other State Rev Projection: Proposal list $6.1 Million in 17-18 &18-19

$0 $20,000,000 $40,000,000 $60,000,000 $80,000,000 $100,000,000 $120,000,000 Cert.Salaries

• Class. Salaries

Benefits Supplies Svcs Capital Outlay 2016-17 2017-18 2018-19

2016-17 2017-18 2018-19 Cert.Salaries 94,339,868 95,519,116 96,713,105

• Class. Salaries

27,606,781 27,951,866 28,301,264 Benefits 56,025,008 58,827,288 61,697,466 Supplies 12,401,055 11,901,055 11,901,055 Svcs 25,175,975 23,906,342 23,906,342 Capital Outlay 1,334,895 334,895 334,895 Other (250,525) (250,526) (250,526) Total Exp 216,633,057 218,190,036 222,603,602

2016-17 2017-18 Projection 2018-19 Budget Projection

TOTAL REVENUES (Minus Contributions) 214,476,461 216,003,949 217,766,808 TOTAL EXPENDITURES 216,633,056 218,190,036 222,603,602 Increase/(Decrease) to Reserve (2,156,596) (2,186,087) (4,836,794) FUND BALANCE Beginning Fund Balance 62,154,149 59,997,553 57,811,466 Ending Fund Balance prior to other Assignments 59,997,553 57,811,466 52,974,672 Components of Fund Balance: Revolving Cash & Stores Inventory 200,000 200,000 200,000 Assigned - Board Designated 1% 2,166,331 2,181,900 2,226,036 Assigned – LCFF Gap Funding

• 15,873,042

4,318,256 Assigned – Technology Improvement Plan 8,174,620 8,174,620 8,174,620 Economic Uncertainties – 3% 6,498,992 6,546,287 6,677,598 Reserve Restricted Fund 17,670,114 23,649,779 31,323,172 Unappropriated Amount – Amount that establishes

• ur certification

25,287,497 1,185,838 54,990

Total : 59,997,553 57,811,466 52,974,672

2016-17 BUDGET – ALL OTHER FUNDS

Fund Revenue Expenditure 2016-17 Restricted/ Assigned EFB Before 2015-16 EFB 2015-16 EFB 2016-17 Restricted/ Assigned EFB 10.0 58,505,197 58,505,197 6,929,984 6,929,984 12.0 13,084,718 13,084,718 237,271 237,271 13.0 13,406,920 14,317,209

• 910,289

3,965,210 3,054,921 21.0 10,115,587

• 10,115,587

10,441,952 326,365 25.0 45,000 45,000 2,188 2,188 40.0 7,528,877

• 75,28,877

11,022,285 3,493,408 49.0 362,000

• 362,000

429,354 67,354 52.0 4,986,112 4,556,233 429,879 17,854,097 18,283,976 56.0 3,306,233 3,306,233 98,013 98,013

LOOKING FORWARD

• Change continues
• E.g., Enrollment & ADA
• Steps to LCFF target are uncertain
• 2016-17 State Adopted Budget