Transcript 2010-11 First Interim - Western Placer Unified School District

2014-15 Second Interim
Board of Trustees
March 17, 2015
1
Second Interim - Certification
 The district’s Board of Trustees shall certify in writing whether
or not the district is able to meet its financial obligations for
the remainder of the fiscal year and, based on current
forecasts, and for the two subsequent fiscal years.
 The certification shall be classified as positive, qualified, or
negative, pursuant to standards and criteria adopted by the
State Board of Education (EC §33127).
 The District is certifying Positive at Second Interim
State Economic Conditions
 February Revenues Exceed the Forecast (School Service of California – March 2014)
 General Fund revenues for February 2014 are exceeding Governor Jerry Brown's
Budget projections, with total tax collections coming in above the forecast level by
25.6%, or $825 million. Total General Fund revenues for the first seven months of
the fiscal year are also exceeding the revised forecast, albeit by a lesser percentage,
with tax receipts running $965 million, or 1.6%, ahead of the Governor's Budget
estimate.
 The personal income tax for February provided the bulk of the increase over
estimated revenues, at $2.049 billion, which is $716 million (53.7%) higher than
what was estimated. California unemployment rate expected to fall to 8.4% in 2014,
one percentage point higher than the forecast for the U.S. rate.
 Sales and use tax was short in February by $23 million, while corporate tax
exceeded the forecast by $86 million
 Sales of single-family homes were essentially flat in January as compared to
December.
PCOE Guidance and Common Message
 Every school district’s situation is unique, and in such a dynamic and uncertain operating
environment, there are key aspects to maintaining fiscal solvency and protecting the
integrity of educational programs that apply to all districts:
 Maintain reserve greater than minimum 3%
 Make reasonable, supportable and conservative assumptions
 Maintaining adequate reserves to allow for unanticipated circumstances (with the
adequate level based in part on each LEAs unique situational assessment).
 Maintaining fiscal flexibility by limiting commitments to future increased expenditures
based on projections of future revenue growth, and/or establishing contingencies that
allow expenditure plans to be changed if needed.
 Do not use one-time resources for on-going commitments
 Categorical programs should be self-sustaining and not encroach on Unrestricted
General Fund
Second Interim Update –
2014-15 Budget
Each year our budget is continually revised as new information
becomes available and assumptions are modified.
Changes from District’s First Interim Budget:
 Changes for final LCFF GAP funding percentages, State and Federal
program revenues.
 Changes in 2014-15 staffing, position control, benefits and updates
of new grants or final revenue allocations
 Updated programs that require General Fund contribution – State
Preschool and Special Education costs
5
Second Interim
2014-15
Budget
Second
Interim
U nrestricted
2014-15
R estricted
44,069,170
1,739
1,489,851
1,103,144
668,529
3,036,912
3,265,222
2,852,265
44,737,699
3,038,651
4,755,073
3,955,409
Total R evenue
Expenditures
Certificated Salaries
Classified Salaries
B enefits
B ooks and Supplies
Other Services & Oper. Exp
Capital Outlay
Other Outgo 7xxx
Transfer of Indirect 73xx
46,663,904
9,822,928
56,486,832
21,291,273
4,812,699
8,591,347
2,322,781
3,354,874
227,465
1,839,916
(792,149)
4,498,833
2,537,372
2,582,796
2,247,158
1,841,721
2,046,798
670,532
25,790,106
7,350,071
11,174,143
4,569,939
5,196,595
2,274,263
1,839,916
(121,617)
Total Expenditures
Deficit/Surplus
Transfers In
Transfers out
Contributions to R estricted
41,648,206
5,015,698
16,425,210
(6,602,282)
R evenue
LCFF Funding
Federal R evenue
State R evenue
Local R evenue
Net increase (decrease) in Fund B alance
B eginning B alance
Prior Period Adjustment (R estatements)
Ending Fund B alance
Components of Ending Fund B alance
R eserve - R evolving Fund
R eserve - R estricted Designated Programs
R eserve - Economic U ncertainty @ 3%
R eserve - Economic U ncertainty
surplus/(deficit)
R eserve - Deferred Maintenance R eserve
R eserve - Charter Technical Assistance
R eserve - Projected Subsequent Year LCFF
GAP Funding Increase
Total Ending Fund B alance
Combined
(52,620)
(4,965,556)
4,965,556
58,073,416
(1,586,584)
(52,620)
-
(2,478)
5,516,482
(1,636,726)
1,825,851
(1,639,204)
7,342,333
5,514,004
189,125
5,703,129
189,125
1,743,781
5,000
189,125
1,743,781
300,408
1,227,665
93,646
300,408
1,227,665
93,646
2,143,504
2,143,504
5,000
5,514,004
189,125
6
5,703,129
First Interim
First
Interim
vs.
Second
Interim
Second Interim
First Int. vs.
Second Int.
$
Difference
2014-15
Combined
U nrestricted
2014-15
R estricted
44,797,288
3,002,168
4,816,482
3,825,936
44,069,170
1,739
1,489,851
1,103,144
668,529
3,036,912
3,265,222
2,852,265
44,737,699
3,038,651
4,755,073
3,955,409
(59,589)
36,483
(61,409)
129,473
Total R evenue
Expenditures
Certificated Salaries
Classified Salaries
Benefits
Books and Supplies
Other Services & Oper. Exp
Capital Outlay
Other Outgo 7xxx
Transfer of Indirect 73xx
56,441,874
46,663,904
9,822,928
56,486,832
44,958
25,765,679
7,297,536
11,158,490
4,684,742
5,041,964
2,132,383
1,923,238
(108,220)
21,291,273
4,812,699
8,591,347
2,322,781
3,354,874
227,465
1,839,916
(792,149)
4,498,833
2,537,372
2,582,796
2,247,158
1,841,721
2,046,798
670,532
25,790,106
7,350,071
11,174,143
4,569,939
5,196,595
2,274,263
1,839,916
(121,617)
24,427
52,535
15,653
(114,803)
154,631
141,880
(83,322)
(13,397)
Total Expenditures
Deficit/Surplus
Transfers In
Transfers out
Contributions to R estricted
57,895,812
(1,453,938)
(23,360)
-
41,648,206
5,015,698
16,425,210
(6,602,282)
177,604
(132,646)
(29,260)
(161,906)
(161,906)
R evenue
LCFF Funding
Federal R evenue
State R evenue
Local R evenue
(52,620)
(4,965,556)
4,965,556
58,073,416
(1,586,584)
(52,620)
-
(1,636,726)
1,825,851
(1,639,204)
7,342,333
Net increase (decrease) in Fund Balance
Beginning Balance
Prior Period Adjustment (R estatements)
Ending Fund Balance
Components of Ending Fund Balance
(1,477,298)
7,342,333
(2,478)
5,516,482
5,865,035
5,514,004
R eserve - R evolving Fund
R eserve - R estricted Designated Programs
R eserve - Economic U ncertainty @ 3%
R eserve - Economic U ncertainty
surplus/(deficit)
R eserve - Deferred Maintenance R eserve
R eserve - Potential GSA Funding Loss 16-17
5,000
94,710
1,737,575
5,000
R eserve - Additional LCFF Supplemental
R equired Increase Spending 15-16 & 16-17
R eserve - Charter Technical Assistance
R eserve - Special Education Support Program
R eserve - Projected Subsequent Year LCFF
GAP Funding Increase
Total Ending Fund Balance
Combined
189,125
5,703,129
189,125
1,743,781
5,000
189,125
1,743,781
94,415
6,206
100,000
1,227,665
462,935
300,408
1,227,665
-
300,408
1,227,665
-
200,408
(462,935)
93,646
93,646
-
93,646
-
2,143,504
2,143,504
2,143,504
5,865,035
5,514,004
189,125
5,703,129
-
7
(161,906)
1
2
3
4
5
6
7
8
9
10
11
Major Revenue Changes to Budgeted Deficit
Since First Interim Budget
Budgeted Deficit Spending at First Interim
Revenues
Revenue Limit/LCFF
Decrease in State Aid due to Final Gap Percentage
Increase in EPA State Aid
Increase in in-lieu taxes paid to charter schools
Decrease in AB602 Special Education property tax revenues
Total Revenue Limit changes
Federal Revenue
Actual Title I, Title II and Title III allocations per CARS
Medi-Cal Billing revenues (budgeted when earned)
Decrease in Federal Special Education revenues
Total Federal Revenue Changes
State Revenue
Reclassify CRANE grant from State to Local
Total State Revenue changes
Local Revenue
Community Redevelopment Funds
Reclassify CRANE grant from State to Local
Farm sales revenue
Reduction in AB602 Special Education revenues
Miscellaneous
Total Local Revenue changes
Total Change in Revenues
($1,477,298)
(50,000)
240,000
(240,000)
(10,000)
(60,000)
1
35,000
2
(60,000)
3
130,000
4
15,000
30,000
(10,000)
(60,000)
80,000
60,000
20,000
(55,000)
25,000
$45,000
8
Major Expenditure Changes to Budgeted Deficit
Since First Interim Budget
Expenditures
Certificated Salaries
Additional pay for Love & Logic Training
Substitute teachers for various trainings
Miscellaneous
Total Certificated Salaries changes
Classified Salaries
1.0 FTE paraprofessional increase
Increase in substitute budgets
Miscellaneous
Total Classified
Benefits-Due to salary increases above
Books and Supplies
Transfers to other expenditure classifications
Reduction in estimated Transportation expenditures
Total Books & Supplies
25,000
10,000
(10,000)
25,000
5
50,000
15,000
6
7
8
(115,000)
8
25,000
15,000
10,000
(105,000)
(10,000)
Continued on next slide
9
Major Expenditure Changes to Budgeted Deficit
since First Interim Budget
Services & Other Operating Expenditures
Deferred maintenance expenditures
Legal services regarding various current litigation issues
Transfers from other expenditure classifications
Increase in Technology professional services
Medi-Cal expenditures approved by collaborative
Increase in Nonpublic schools
California Career Pathways Grant
Miscellaneous
Total Services and Other Operating Costs
Capital Outlay
Deferred maintenance expenditures
Purchase of dump truck
Total Capital Outlay
Other Outgo (change in PCOE billback, increase in indirect)
Transfers to Other Funds
Total Change in Expenditures
Rounding
Total Change in Budgeted FB
Budgeted Deficit Spending at Second Interim
(130,000)
110,000
110,000
20,000
10,000
10,000
5,000
15,000
150,000
9
150,000
10
11
130,000
20,000
(100,000)
30,000
$205,000
($1,906)
($161,906)
($1,639,204)
10
Enrollment Trends
8,000
7,000
6,000
5,000
4,000
3,000
2,000
1,000
00-01 01-02 02-03 03-04 04-05 05-06 06-07 07-08 08-09 09-10 10-11 11-12 12-13 13-14 14-15 15-16 16-17
Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual Second Proj
Interim
Enrollment
ADA
Proj
Linear (Enrollment)
Before 2014-15, enrollment and ADA increased by 67% and 69% respectively over the last 10 years (2003-04 to 2013-14).
For the 2014-15 school year, the District experienced a decline in enrollment at the K-5 grade level. The District is projecting 2014-15 enrollment and
ADA to be less than 2013-14.
We have projected an enrollment increase of 67 students in fiscal years 2015-16 and 2016-17, representing a 1% growth.
The ADA rate is projected to be 95.5% in the 2014-15, 2015-16 and 2016-17 fiscal years.
11
Projected ADA vs. Funded ADA – Declining Enrollment
Adjustment
6,540
6,520
6,495
6,486
6,500
6,480
6,495
6,486
6,460
6,440
6,425
6,425
6,422
6,420
6,400
6,425
6,422
Projected ADA
6,380
Projected Funded ADA
6,360
6,340
6,358
6,320
6,300
Unaudited
Actuals
2013/14
Adopted Budget Second Interim
2014/15
2014/15
Projection
Projection
2015/16
2016/17
The above graph shows how the District is funded when there is a decline in current year enrollment/ADA from the prior
year. Districts are funded from the higher of their current year ADA or their prior year ADA.
For the 2014-15 school year, the District will be funded under the declining enrollment funding model. Funding will be
based on our 2013-14 actual ADA as our 2014-15 ADA will be less. This allows a one year financial cushion, whereby the
District does not have to incur that whole funding loss in one year and give it time to grow out of the decline.
It is important to recognize that the district will receive no more additional funding unless we gain more than 67 students
than we currently have right now as we are still funded from the 2013-14 ADA of 6,425 and not 6,358 as is projected for
2014-15. Those additional new students will still be served but with no additional revenue to support the increased
enrollment until that enrollment count goes beyond 6,425.
12
Contributions to Restricted Programs
Some categorical programs require contributions from the district unrestricted funds as the
funding received does not cover the expenditures for that specific program. A summary of the
change in contributions from First Interim budget to First Interim budget is summarized below.
Contributions to Restricted Programs
2014-15 Second Interim vs. First Interim
Program
Special Ed-Basic Grant
(PL94-142)
Spec Ed Pre-School
Spec Ed Pre-School
Special Education
Resource
Total Special Ed Contribution
First
Interim
Change
3310
* $1,001,590
$972,197
$29,393
3315
3320
6500
*
$53,235
*
$6,625
* $2,917,291
$54,237
$18,260
$2,820,481
($1,002)
($11,635)
$96,810
$986,395
$4,965,136
$974,719
$4,839,894
$11,676
$125,242
* $1,534,557
$1,534,557
$0
$5,513,298
$5,399,732
$113,566
Maintenance
8150
Total Contribution to Restricted Programs
PCOE Special Education
Program Billback
Second
Interim
0000
Comments
1.0 FTE Paraprofessional increase
Increase in revenues
Decrease in revenues ($65k); increase in
substitute and additional time costs
($20k), miscellaneous ($10k)
Increase in substitute costs
13
14
MYP - Budget Assumptions - Revenues
13/14
14/15
14/15
Unaudited
Adopted
14/15 First
Second
15/16
16/17
Actuals
Budget
Interim
Interim
Projection
Projection
REVENUE
Enrollment
6,712
6,801
6,658
6,658
6,725
6,792
ADA Yield
96.1%
95.5%
95.5%
95.5%
95.5%
95.5%
ADA
6,452
6,522
6,358
6,358
6,449
6,513
% Increase (Decrease) Enrollment
1.7%
2.6%
# Increase (Decrease) Enrollment
114
89
6,452
6,522
6,452
1.565%
0.85%
0.85%
Base Grant with COLA Grades K-3
$6,952
$7,012
$7,012
$7,012 $
6,845
$
6,845
Base Grant with COLA Grades 4-6
$7,056
$7,117
$7,116
$7,116 $
6,947
$
6,947
Base Grant with COLA Grades 7-8
$7,266
$7,328
$7,328
$7,328 $
7,154
$
7,154
Base Grant with COLA Grades 9-12
$8,419
$8,491
$8,491
$8,491 $
8,289
$
8,289
$942
$950
$950
$950
$965
$986
Supplemental Grants (% Adj. Base)
20%
20%
20%
20%
20%
20%
Concentration Grants
50%
50%
50%
50%
50%
50%
Concentration Grant Threshold
55%
55%
55%
55%
55%
55%
11.78%
28.05%
29.56%
29.15%
32.19%
23.71%
Funded ADA
Statutory COLA %
-0.8%
-0.8%
1.0%
1.0%
(54)
(54)
67
67
6,452
6,449
6,513
0.85%
1.58%
2.17%
LCFF Entitlement Factors:
Grade Span Funding (K-3 CSR & 9-12)
LCFF Gap Closed Percentage
Funded RL / LCFF per ADA
Est. Revenue Limit/ LCFF Funding
6,195.41
6,781.56
6,838.36
6,830.52
7,372.93
7,682.31
39,967,740
44,229,447
44,119,760
44,069,170
47,737,446
50,233,957
Property Tax change
Est. Property Taxes
9.15%
34,800,322
Federal Revenue
0%
Categorical COLA
1.565%
1.00%
35,002,011
0%
8.54%
37,772,304
0%
8.54%
37,772,304
0%
3.00%
38,905,473
0%
3.00%
40,072,637
0%
0.85%
0.85%
0.85%
1.58%
2.17%
Lottery Unrestricted/ADA
$
124.00
$126.00
$128.00
$128.00
$128.00
$128.00
Lottery Restricted/ADA
$
30.00
$30.00
$34.00
$34.00
$34.00
$34.00
15
MYP - Budget Assumptions - Expenditures
13/14
14/15
Unaudited
Adopted
14/15 First
Second
14/15
15/16
16/17
Actuals
Budget
Interim
Interim
Projection
Projection
Certificated New Hires
0.0FTE
6.20FTE
6.20FTE
6.20FTE
5.0 FTE
2.0 FTE
Estimated Retirements
0.0FTE
3.0 FTE
3.0 FTE
3.0 FTE
1.0 FTE
0.0 FTE
Reductions in Staffing
0.0FTE
0.0FTE
0.0FTE
0.0FTE
0.0FTE
0.0 FTE
Kindergarten
25:1
25:1
25:1
25:1
25:1
25:1
1-3
28:1
28:1
28:1
28:1
28:1
28:1
4-5
31:1
31:1
31:1
31:1
31:1
31:1
6-8
26:1
26:1
26:1
26:1
26:1
26:1
9-12
29:1
29:1
29:1
29:1
29:1
29:1
2.10%
2.10%
2.10%
2.10%
2.10%
2.10%
Classified new Hires
0.0 FTE
0.0 FTE
0.0 FTE
0.0 FTE
0.0 FTE
0.0 FTE
Estimated Retirements
0.0 FTE
0.0 FTE
0.0 FTE
0.0 FTE
0.0 FTE
0.0 FTE
Reductions in Staffing
0.0 FTE
0.0FTE
0.0FTE
0.0FTE
0.0FTE
0.0FTE
Classified Step/Column
1.00%
1.00%
1.00%
1.00%
1.00%
1.00%
2.6%
0.0%
0.0%
0.0%
0.0%
0.0%
11.442%
11.771%
11.771%
11.771%
12.60%
15.00%
8.88%
10.73%
12.58%
-
-
EXPENDITURES
Staffing Ratios:
Certificated Step/Column
Health Benefits
CalPERS Employer Rate
CalSTRS Employer Rate
Budget Reductions
Transfers Out
8.25%
38,360
Designated for Economic Uncertainty
Deferred Maintenance Reserve
9.50%
(2,442,000)
8.88%
(1,249,000)
23,000
3%
(1,249,000)
23,000
3%
(1,249,000)
23,000
3%
773,000
3%
23,000
3%
3%
1,320,915
1,696,131
1,227,665
1,227,665
1,227,665
1,227,665
Elementary
31.66
31.66
31.66
31.66
31.66
31.66
Middle School
39.77
39.77
39.77
39.77
39.77
39.77
High School
56.93
56.93
56.93
56.93
56.93
56.93
SLIG K-6
8.14
8.11
8.11
8.11
8.11
8.11
SLIG 7-8
3.49
3.48
3.48
3.48
3.48
3.48
Site Allocations:
MAA
Lottery per teacher
250.00
750.00
750.00
750.00
500.00
500.00
16
Multiple Year Projections
R evenue
LCFF Funding
Federal R evenue
State R evenue
Local R evenue
Second Interim
Projection
Projection
2014-15
Combined
2015-16
Combined
2016-17
Combined
44,737,699
3,038,651
4,755,073
3,955,409
48,405,975
2,337,275
3,128,497
3,790,409
50,902,486
2,337,275
2,028,497
3,790,409
Total R evenue
Expenditures
Certificated Salaries
Classified Salaries
Benefits
Books and Supplies
Other Services & Oper. Exp
Capital Outlay
Other Outgo 7xxx
Transfer of Indirect 73xx
56,486,832
57,662,156
59,058,667
25,790,106
7,350,071
11,174,143
4,569,939
5,196,595
2,274,263
1,839,916
(121,617)
26,598,528
7,364,924
11,881,775
3,116,844
4,138,370
264,263
1,839,916
(121,617)
27,294,097
7,464,180
12,706,924
3,154,696
4,154,997
239,263
1,476,116
(121,617)
Total Expenditures
Deficit/Surplus
Transfers In
Transfers out
Contributions to R estricted
58,073,416
(1,586,584)
(52,620)
-
55,083,003
2,579,153
(786,360)
-
56,368,657
2,690,010
(23,360)
-
(1,639,204)
7,342,333
1,792,793
5,703,129
2,666,650
7,495,922
5,703,129
7,495,922
10,162,572
Net increase (decrease) in Fund Balance
Beginning Balance
Prior Period Adjustment (R estatements)
Ending Fund Balance
LCFF Funding
includes Projected
GAP Funding per
DOF and FCMAT
LCFF Calculator
Salaries include
step & column
cost, no negotiated
salary increase
and increasing
STRS & PERS
employer
contribution rates
In 2015-16
includes transfer of
$750,000
Wetlands Reserve
back to Fund 17 Special Reserve
Positive Certification – Adequate reserves and cash for all three years
17
Components of Fund Balance
Deficit Spending in 2014-15 (includes prior year
c/o). Balanced Budget in 2015-16 and 2016-17
due to projected LCFF GAP Funding
Economic
Uncertainty
Surplus may be
used to support
future year’s
budget deficits BUT it is OneTime
Reserve for
Future LCFF
Supplemental
Expenditure
Increases
Reserve for
Special
Education
Program Support
LCFF GAP
Funding reserves
based risk
assessment
Second Interim
Projection
Projection
2014-15
Combined
2015-16
Combined
2016-17
Combined
Net increase (decrease) in Fund Balance
Beginning Balance
Prior Period Adjustment (Restatements)
Ending Fund Balance
Components of Ending Fund Balance
(1,639,204)
7,342,333
1,792,793
5,703,129
2,666,650
7,495,922
5,703,129
7,495,922
10,162,572
Reserve - Revolving Fund
Reserve - Restricted Designated Programs
Reserve - Economic U ncertainty @ 3%
Reserve - Economic U ncertainty
surplus/(deficit)
Reserve - Deferred Maintenance Reserve
Reserve - Potential GSA Funding Loss 16-17
5,000
189,125
1,743,781
5,000
176,771
1,676,081
5,000
126,564
1,691,761
300,408
1,227,665
-
1,739,069
1,227,665
-
3,532,117
1,227,665
413,861
93,646
-
1,101,184
193,646
448,000
1,495,452
293,646
448,000
2,143,504
928,506
928,506
5,703,129
7,495,922
10,162,572
Reserve - Additional LCFF Supplemental
Required Increase Spending 15-16 & 16-17
Reserve - Charter Technical Assistance
Reserve - Special Education Support Program
Reserve - 45% of Projected Subsequent Year
LCFF GAP Funding Increase
Total Ending Fund Balance
Positive Certification – Adequate reserves and cash for all three years
18
Cash Flow 2014-2015, 2015-2016 and 2016-2017
(with TRANS financing in all years)
Cash Flow Comparison
25,000,000
22,500,000
20,000,000
Ending Cash Balance
17,500,000
15,000,000
12,500,000
2013-14
2014-15
10,000,000
2015-16
7,500,000
5,000,000
2,500,000
-
(2,500,000)
(5,000,000)
Month
March 2014
19
PCOE Common Message - Summary
 The Governor’s Budget proposal significantly increases funding to education in
2015-16 and continues to demonstrate his commitment to funding the LCFF.
There is a substantial amount of one time funding proposed. Most notably, his
proposal is just that, a proposal. The Legislative process will carry out over the
next few months and there will most likely be changes in the details of the
proposal before the State Budget is adopted in June.
 Every district receives differing amounts of revenue and has its own particular
set of financial risk factors. It is important all school dsitricts continue to assess
their individual situations and plan accordingly to maintain fiscal solvency.
20
Next Steps
 Changes that the Board should expect before 2015-
16 Budget Adoption In June include:
 District Attendance Reporting (P-2) – April 2015
 2013-14 Actual -2 ADA may drive change in 2015-16 Projected Funded ADA due to declining
enrollment funding protection
 Multi-year projections updated to reflect Governor’s 2015-16 May Revision
 Update LCFF assumptions for 2015-16 and future years
 Update on Federal, State and local funding notifications
 Updated projected ending Fund Balance Reserves based on year end
projections and actuals spent to date
 Governor’s May Revision – May 2015
21
Recommendation:
Staff recommends the Board of Trustees
certify the Second Interim report as
positive.
22
QUESTIONS & COMMENTS
23