SAN DIEGO UNIFIED SCHOOL DISTRICT 2019-20 First Interim Financial - - PowerPoint PPT Presentation

SAN DIEGO UNIFIED SCHOOL DISTRICT

2019-20 First Interim Financial Report

Board of Education December 10, 2019

Budget Development Timeline

We Are Here

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Projections Guidance

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• Guidance on the multi-year calculations and projections is

provided by the California Department of Education (CDE) and provided directly by the San Diego County Office of Education (SDCOE).

• The CDE and SDCOE are the legal overseers of district

budgets, which make following their guidance a recommended approach.

LAO Guidance

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• On November 20, 2019 the Legislative Analyst’s Office (LAO)

announced a fiscal picture, particularly, for K-12 education, that is optimistic for the coming year.

• As much as $7 billion surplus available to state in 2020-21
• Estimates as much as $2.1 billion more in ongoing funding

beyond COLA to school districts

General Fund Multi-Year Assumptions Revenues

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Description 2019-20 2020-21 2021-22 LCFF/State Funding Model Declining Enrollment 102,243 100,709 99,199 COLA 3.26% 3.00% 2.80% Federal: Impact Aid $10.0M $10.0M $10.0M Other State Mandated Block Grant $ 3.99M $ 4.08M $ 4.15M Lottery (GFU $153; GFR $54) $207/ADA $207/ADA $207/ADA Transfers In $21.3M $21.1M $16.1M

General Fund Multi-Year Assumptions Expenditures

*Includes: Restoration of the work year effective 7/1/2019 and 3.7% effective 1/1/2020. **Year over year increase. ***Assumes solutions in 2020-21 are ongoing.

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Description 2019-20 2020-21 2021-22

Salaries and Benefits Step and Column: Certificated/Classified** 1.85% / 1.05% 1.85% / 1.05% 1.85% / 1.05% Salary Increase* 3.7% 0% 0% STRS 17.10% 18.40% 18.10% PERS 19.72% 22.70% 24.60% Health & Welfare Premiums** 6.00% 6.00% 6.00% Materials & Supplies (Consumer Price Index-CPI)** 3.33% 3.14% 3.02% Utilities $24.9M $24.9M $24.9M Board Solutions/Budget Shortfall*** $70.1M $41.4M Contributions Special Education $233.6M $249.0M $257.6M Restricted Routine Maintenance (RRM) $43.9M $41.8M $41.2M

Increased Expenses

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Year-Over-Year Increase ~ $44M

Employer Pension Increased Costs

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GFU Impact $77 Million

$ - Mil $3 Mil $10 Mil $14 Mil $13 Mil $14 Mil $8 Mil $13 Mil $2 Mil

Solutions

• Increase revenues
• Reduce expenses

○ Program Shifts ○ Identify and implement greater efficiencies within programs and services ○ Spending freeze ○ Reinstitute/continue hiring freeze

• Other reductions as necessary

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Note: Solutions may require bargaining

Potential Shifts

• Governor’s Budget released in January, May, June
• Impacts of collective bargaining
• Strategic layoffs of certificated/classified as needed in March
• Additional unexpected costs or revenues
• Minimum wage analysis
• CalPERS Rate
• Special Education Costs

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Recommended Board Action

• Approve the First Interim Financial Report and Resolution Reflecting the

District’s Financial Status from July 1 through October 31, 2019.

• Certify that the District’s Projected Financial Outlook for the current and

subsequent two years is Positive

• Positive Certification: The District WILL MEET their financial
• bligations for the current and two (2) subsequent fiscal years.
• To balance the budget, the Board of Education will direct the Executive

team to lead a process to identify and implement greater efficiencies within programs and services along with other needed adjustments.

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Questions and Comments

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