california state budget – overview of educational impacts significant lcap services/activities ...

Central Union High School District

Board of Trustees MeetingJune 18, 2014

Central Union High School District

2014-15 Budget Study SessionJune 18, 2014

Budget Study Discussion Topics California State Budget – Overview

of Educational Impacts Significant LCAP Services/Activities Budget Assumptions Historical Review of Revenues &

Expenditures (All Funds) Significant Variances in

Unrestricted GF Expenditures between 2013-14 & 2014-15

• Increases State revenue projections by $2.4 billion• Provides an additional $250 M towards LCFF

implementation. (slight increase in gap closure)• Includes 32-year plan, beginning in 2014-15, to tackle

$74 billion liability in STRS• Includes Rainy Day Fund (for voter approval in

November) and Prop 98 Reserve • Increases overall Prop 98 spending by only $242

million over January

2014-15 California State Budget – K-12 Impacts

• Continues intra-year deferral buy-down but does not eliminate them entirely

• Provides $400.5 million towards funding prior mandate claims on a per ADA basis (includes intent language that districts prioritize funds for implementation of CCSS, though districts can use funds for any one-time purpose)

• Includes controversial provision limiting school district reserves to 6% (if the Rainy Day Fund is approved by voters)


Items NOT included in May Revision

• Additional one-time Common Core funding• Proposals to address Adult Ed and CTE debates• Funding to absorb additional costs of increased

employers’ contribution to STRS• Funding for school transportation COLA or

equalization• Mandatory and full-day kindergarten• Funding for expanding Transitional Kindergarten to all

four-year olds


State General Fund Revenues(Billions of Dollars)

2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 $95.0

$105.0

$115.0

$125.0

Jan. Budget

May Revision

May LAO

State General Fund RevenuesA Longer Term View (Billions of Dollars)

2006-07

2008-09

2010-11

2012-13

2014-15

2016-17

2018-19

$75.0

$85.0

$95.0

$105.0

$115.0

$125.0

Jan. Budget

May Re-vision

May LAO

Oops

Governor’s CalSTRS ProposalFuture Contribution Rates

2014–15 2015–16 2016–17 2017–18 2018–19 2019–20 2020–210.00%

5.00%

10.00%

15.00%

20.00%

8.88%

19.10%

3.45%

6.33%

10.25%

8.08% 9.21%

Employers State Employees (Pre-PEPRA) Employees (Post-PEPRA)

Eliminates the CalSTRS unfunded liability over the next 32 years

STRS: Employer ContributionsSchool Employer Contributions Under Governor’s CalSTRS Plan

(Dollars in Millions)

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

Current Law Rate 8.25% 8.25% 8.25% 8.25% 8.25% 8.25% 8.25%

Proposed Increase .63 2.48 4.33 6.18 8.03 9.88 10.85

New Rate 8.88% 10.73% 12.58% 14.43% 16.28% 18.13% 19.1%

• 63% of funding burden on school employers– Statewide avg. impact $50 - $55 per ADA in 2014-15; as much as $560 per ADA in 2020-21– Actual impact will differ across districts– No additional funding for this purpose

Local Control Accountability Plan

Local Control Accountability PlanSignificant Activities/Services Additional 9th Grade Math Teachers (2) Release period for a math teacher to work on

formative/summative assessments Professional Development Expand after-school & in-class tutoring Increasing teacher time for instruction, intervention,

professional development, &/or collaboration (2%) New Guidance Support Specialists to provide

parent/student support activities Curricular planning and development

Local Control Accountability PlanSignificant Activities/Services Communication activities (including texting system for

school-to-home communication) Improve district/school websites Second semester parent event (open house/conferences) Expand AP offerings & continue development of IB Program

at SHS CCSS aligned instructional materials Technology (classroom sets of devices – CCSS funding) Facilities & Safety assessment – update site plans for

improvements

Local Control Accountability PlanSignificant Activities/Services AVID trained tutors for selected EL, 9th grade Math & ELA

classes Summer Connection program for incoming 9th graders 9th Grade Academy for socially promoted 9th

graders(Phoenix Rising) Half-time EL Program Coordinator Part-time Intervention Coordinator (SHS) Mandatory EL and Intervention Courses (8th Period) AP fees for low income students

Local Control Accountability PlanSignificant Activities/Services EL Program Assistants (one additional) Phase in of updated program of study for EL’s EL Support classes (refined/expanded) SST’s for all LTEL 1-2, and Foster Youth Investigate provision of Internet for low income students

who don’t have access at home ELA resource period for curriculum development .5 At Risk/Foster Youth counselors at each site

Budget Assumptions

Assumptions for the 2014-14 Budget Development

In May and June each year, the District finalizes its budget for the coming year.

In order to project the budget, a series of assumptions about the conditions of the District must be determined.

These assumptions are used as the basis for calculating revenues and determining expenditures, which make up the final budget for the next year.

The accuracy of the District's budget projection for the next year is only as good as the assumptions that are used in developing the budget. If the assumptions are wrong, so too will be the budget.

Assumptions for the 2014-15 Budget Development

Because it is impossible to accurately predict all of the assumptions that are needed in budget development, districts are required to update their budgets (and assumptions) three times after the original budget is adopted.

The 45 day update - a revision that occurs within 45 days after the adoption of the State Budget 1st Interim (December)

2nd Interim (March)

2005-06

2006-07

2007-08

2008-09

2009-10

2010-11

2011-12

2012-13

2013-14

2014-15

3,850

3,900

3,950

4,000

4,050

4,100

4,150

4,200

4,250

4,107

4,2364,221

4,169

4,102

4,009

4,056

4,1134,132 4,132

CBEDS Enrollment History 2005-06 to 2014-15

Assumption – enrollment remains

the same as prior year

CUHSD Financial Assumptions for 2014-15

Budget Development

Projections – Revenues & Funds

ADA change compared to prior year [3950.9] - 40.07

LCFF Per ADA Base Funding Amount $7,723.43

LCFF Supplemental/Concentration Funding $2,966,526

Total Funding Increase – All Revenue Sources $2,695,349

Agreement approval with IVROP (already recalculated i) -$ 229,928

No Mandated Costs, AP Fee Reimbursement, RDA, or MAA $ 0Transfer to Deferred Maintenance $500,000

Net Decrease in Contributions (RRM i & SpEd h ) $417,957

Estimated Unrestricted Beginning Fund Balance $9,620,287

Estimated Unrestricted Ending Fund Balance $8,930,417

CUHSD Financial Assumptions for 2014-15

Budget Development

Projections – Expenditures

• Certificated (non-admin) salaries (2013-14 on/off-schedule payments)

$855,640

• Certificated (non-admin) Ongoing Increases $1,087,890

• Certificated new positions (4) salaries $211,766

• Potential increases in Management Salary/Benes not included $0

• Classified – new LCAP positions (3) salaries $112,000• Benefits increases (Classified to Cap, STRS @ 9.5%) (Incl’s restricted) $783,008

• Decreases in Unrestricted materials, services & capital outlay $1,123,616• Utilities Decreases (Electricity) -$104,000

• New Bell System at SHS & CUHS (est’d @ $250 K) not included $0

• Voice Over IP phone systems for CUHS & SHS (est’d at $50 K) $0

REVENUESUnrestricted & Restricted

A Longitudinal Perspective

General Fund & Cafeteria

Revenue Limit/LCFF Sources (State Aid)

2007-08 to 2014-15 (GF)

2007-08

2008-09

2009-10

2010-11

2011-12

2012-13

2013-14

2014-15

$15,000,000

$17,000,000

$19,000,000

$21,000,000

$23,000,000

$25,000,000

$27,000,000

$29,000,000

$31,000,000

$33,000,000

$35,000,000

$26,085,421$25,933,038

$22,344,106

$23,435,819$23,198,785$23,803,460

$30,378,690

$33,849,845

Unrestricted State & Local Revenues 2007-08 to 2014-15

(GF)

2007-08

2008-09

2009-10

2010-11

2011-12

2012-13

2013-14

2014-15

$0

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$3,000,000

$3,500,000

$4,000,000

$4,500,000

$1,416,990

$1,997,077

$4,162,898$4,269,595

$4,208,573$4,100,304

$2,080,795

$1,340,314

Restricted State & Local Revenues 2007-08 to 2014-15

(GF)

$0

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

$6,000,000

$7,000,000

$5,780,836

$4,186,474

$2,057,839

$2,556,083$2,504,676$2,333,434

$2,775,563

$3,546,709

Federal Revenues (Unrestricted & Restricted)

2007-08 to 2014-15 (GF)

2007-08

2008-09

2009-10

2010-11

2011-12

2012-13

2013-14

2014-15

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

4,000,000

4,500,000

2,171,573

4,138,541

3,512,125

3,071,538

3,536,908

2,550,620

3,025,377

2,628,346

Combined Revenues (Unrestricted & Restricted) 2007-08 to 2014-15 (GF)

2007-08

2008-09

2009-10

2010-11

2011-12

2012-13

2013-14

2014-15

0

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

30,000,000

35,000,000

40,000,000

45,000,000

35,454,82036,255,130

32,076,96933,333,03533,448,94232,787,818

38,260,425

41,365,214

Cafeteria Revenues2007-08 to 2014-15

2007-08

2008-09

2009-10

2010-11

2011-12

2012-13

2013-14

2014-15

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

1,638,524 1,676,2971,729,583 1,764,650

1,697,6251,767,924

1,968,8681,903,919

REVENUES

Calculating the LCFF 101

2013/14 2014/15

LOCAL CONTROL FUNDING FORMULA TARGET 43,481,938 43,412,304

LOCAL CONTROL FUNDING FORMULA FLOOR 28,629,016 30,121,882

Difference or GAP (LCFF Target less LCFF Floor, if positive) 14,852,922 13,290,422

Multiply difference by funding rate 11.78% 1,749,674 28.05% 3,727,963

ECONOMIC RECOVERY PAYMENT 0 0

LCFF Entitlement before Minimum State Aid provision 30,378,690 33,849,845

CALCULATION OF LCFF PHASE-IN ENTITLEMENT

Calculating the LCFF Phase-in Entitlement Funding Target

(2020-21)

• Moving target recalculated annually based on each year’s ADA

• Standard base + supplemental & concentration $

2013/14 2014/15








Calculating the LCFF Phase-in Entitlement

Funding Formula Floor

• Current year id based on ADA & deficited RL plus categoricals

• Next year is based on current year LCFF entitlement & ADA

2013/14 2014/15









The “GAP”

• Difference between the target and the floor

2013/14 2014/15









The “Funding Rate”

• The percentage of gap closure determined each year

• This amount is multiplied by the “gap”

2013/14 2014/15









And determines the

Increase in Funding

2013/14 2014/15









So the “floor” plus the

increase in funding due to “gap” closure

gets you to your LCFF

entitlement

RevenuesUnrestrictedGeneral Fund

Significant Variances

2014-15

2013-14 Estimated

Actuals (June)

2014-15 Proposed

Budget Variance

REVENUE

LCFF/Revenue Limit Sources 30,378,690 33,849,845 3,471,155

Federal Revenue 35,325 - (35,325)

Other State Revenue 1,014,245 504,461 (509,784)

Other Local Revenue 1,066,550 835,853 (230,697)

TOTALS 32,494,809 35,190,159 2,695,350

Significant VariancesUnrestricted Revenues

Variance Due Primarily to:

• LCFF Increases. Gap funding plus all former Tier III programs and EIA - ($3.8 M)

• No RDA anticipated – ($304 K)

• Education Protection Act - ($44 K)

2013-14 Estimated

Actuals (June)

2014-15 Proposed

Budget Variance

REVENUE





TOTALS 32,494,809 35,190,159 2,695,350



• Medi-Cal Administrative Activities (MAA) – ($23K)

• Advanced Placement – ($12 K)

2013-14 Estimated

Actuals (June)

2014-15 Proposed

Budget Variance

REVENUE





TOTALS 32,494,809 35,190,159 2,695,350



• Elimination of Tier III & Transportation Programs (rolled into LCFF)

2013-14 Estimated

Actuals (June)

2014-15 Proposed

Budget Variance

REVENUE





TOTALS 32,494,809 35,190,159 2,695,350


Variance Due Primarily To:

• IVROP Agreement

EXPENDITURESUnrestricted & Restricted

All FundsA Longitudinal Perspective

Certificated Salaries (Unrestricted & Restricted) 2007-08 TO 2014-15 (GF & AE)

2007-08

2008-09

2009-10

2010-11

2011-12

2012-13

2013-14

2014-15

10,000,000

12,000,000

14,000,000

16,000,000

18,000,000

20,000,000

22,000,000

17,099,71417,152,28416,901,84116,412,344

16,768,43716,653,036

18,539,305

20,468,575

Classified Salaries 2007-08 to 2014-15 (GF, AE & Caf)

2007-08

2008-09

2009-10

2010-11

2011-12

2012-13

2013-14

2014-15

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

6,454,813

6,161,5396,114,116

5,647,7325,592,2635,549,562

6,207,3676,272,660

Benefits2007-08 TO 2014-15 (GF, AE & CAF)

2007-08

2008-09

2009-10

2010-11

2011-12

2012-13

2013-14

2014-15

3,000,000

3,500,000

4,000,000

4,500,000

5,000,000

5,500,000

6,000,000

6,500,000

7,000,000

5,622,217 5,617,9815,709,935

5,482,969

5,849,046

5,621,859

6,032,569

6,803,218

Benefits 2007-08 to 2014-15 (GF, AE & Caf)

Materials and Supplies 2007-08 TO 2014-15 (GF, AE, CAF, FAC & DM)

2007-08

2008-09

2009-10

2010-11

2011-12

2012-13

2013-14

2014-15

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

2,854,026 2,740,982

1,553,686 1,472,825 1,544,721

2,159,153

5,233,230

4,206,767

Services & Other Operating Expenditures2007-08 TO 2014-15 (GF, AE, CAF, FAC, DM)

2007-08

2008-09

2009-10

2010-11

2011-12

2012-13

2013-14

2014-15

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

3,613,203

3,181,868

3,840,7973,976,1003,927,753

3,184,195

4,329,914

3,640,472

Capital Outlay2006-07 TO 2012-13 (GF, AE, CAF, FAC, DM)

2007-08

2008-09

2009-10

2010-11

2011-12

2012-13

2013-14

2014-15

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

1,673,8251,971,883

700,759

1,260,258

6,754,306

1,311,5561,545,205

711,870

EXPENDITURESUnrestrictedGeneral Fund

Significant Variances

2014-15

2013-14 Estimated

Actuals (June)

2014-15 Proposed

Budget Variance

EXPENDITURES

Certificated Salaries 15,814,122 18,091,881 2,277,759

Classified Salaries 4,324,957 4,418,608 93,651

Employee Benefits 4,904,083 5,625,748 721,665

Books and Supplies 1,859,141 1,278,242 (580,898)

Services & Other Operating Expenditures 2,713,367 2,486,928 (226,438)

Capital Outlay 571,680 151,400 (420,280)

Other Outgo (excluding Transfers of Indirects) 1,531,130 1,619,992 88,862

Other Outgo Transfers of Indirects (233,802) (217,735) 16,067

SUB-TOTALS 31,484,677 33,455,065 1,970,388

Interfund Transfers In - - -

Interfund Transfers Out - 500,000 500,000

Contributions 2,342,921 1,924,964 (417,956) TOTALS 33,827,598 35,880,030 2,052,432

Significant VariancesUnrestricted Expenditures

Variance Primarily Due to:•Certificated Non-management salary increases – • Retro to Jan ‘14 7% – $548K • Off-schedule 2% - $308 K• Ongoing 7% - $1.08 M

•Add’l positions LC/ Step & Column/Separations & Replacements (net) - $99 K

•Shift of Restricted to Unrestricted - $196 K

• Hourly LC - $130 K• Class Overloads - $41 K• Administration - $46 K

2013-14 Estimated

Actuals (June)

2014-15 Proposed

Budget Variance

EXPENDITURES






Capital Outlay 571,680 151,400 (420,280)



SUB-TOTALS 31,484,677 33,455,065 1,970,388





Variance Primarily Due to:

• New Positions LC –• Guidance Support Specialists

(2) & Add’l EL Program Specialist – $112K

• Hourly – • Add’l AVID trained Tutors LC -$117 K

• ‘13-‘14 Off-Schedule (non-

reoccurring) - $224 K• Miscellaneous

Adjustments (net) – $89 K

2013-14 Estimated

Actuals (June)

2014-15 Proposed

Budget Variance

EXPENDITURES






Capital Outlay 571,680 151,400 (420,280)



SUB-TOTALS 31,484,677 33,455,065 1,970,388






• Proportional changes related to increases in salaries

•Certificated (including STRS to 9.5%*) – $557 K

•Classified - $165 K

*STRS Rate will be adjusted to newly adopted rate at 1st Interim

2013-14 Estimated

Actuals (June)

2014-15 Proposed

Budget Variance

EXPENDITURES






Capital Outlay 571,680 151,400 (420,280)



SUB-TOTALS 31,484,677 33,455,065 1,970,388






• Over 250 line item adjustments

• Most significant•IVROP 13-14 One-time –

$242 K • Tier III IMFRP - $233 K• Operations - $37.5 K• Technology - $37 K• Site Budgets - $62 K• Athletics - $14 K• Miscellaneous - $58 K

2013-14 Estimated

Actuals (June)

2014-15 Proposed

Budget Variance

EXPENDITURES






Capital Outlay 571,680 151,400 (420,280)



SUB-TOTALS 31,484,677 33,455,065 1,970,388






• Over 325 line item adjustments

• Most significant• Misc Travel/Conference-

$41.5 K• Electricity - $104 K• Professional/Consulting/

Operating - $118 K• Legal – $24 K • Communications/Phone/

Postage- $49.7 K• Miscellaneous Adjustments

(net) - $28 K

2013-14 Estimated

Actuals (June)

2014-15 Proposed

Budget Variance

EXPENDITURES






Capital Outlay 571,680 151,400 (420,280)



SUB-TOTALS 31,484,677 33,455,065 1,970,388






• Non- Reoccurring Expenditures• One-time Technology –

$236K• Bus/Truck/Tractor –

$226 K•Bus Wash Rack - $50 K

• Misc. Site Budget Adjustments (net) – $8 K

2013-14 Estimated

Actuals (June)

2014-15 Proposed

Budget Variance

EXPENDITURES






Capital Outlay 571,680 151,400 (420,280)



SUB-TOTALS 31,484,677 33,455,065 1,970,388





Variance Due to:

• Increase in ICOE transfer for students served in county programs

2013-14 Estimated

Actuals (June)

2014-15 Proposed

Budget Variance

EXPENDITURES






Capital Outlay 571,680 151,400 (420,280)



SUB-TOTALS 31,484,677 33,455,065 1,970,388





Variance Due to:

• Decrease in indirect costs charged to categorical programs

2013-14 Estimated

Actuals (June)

2014-15 Proposed

Budget Variance

EXPENDITURES






Capital Outlay 571,680 151,400 (420,280)



SUB-TOTALS 31,484,677 33,455,065 1,970,388





Variance Due to:

• Transfer of funds to Deferred Maintenance Fund

2013-14 Estimated

Actuals (June)

2014-15 Proposed

Budget Variance

EXPENDITURES






Capital Outlay 571,680 151,400 (420,280)



SUB-TOTALS 31,484,677 33,455,065 1,970,388





Variance Due to:

• Increased contributions to Special Ed - $255 K

• Decreased contribution to Routine Restricted Maintenance - $673 K

2014-15 Projected Unrestricted Expenses

$18,091,881

$4,418,608

$5,625,748

$1,278,242

$2,486,928

$151,400$2,424,964 $1,619,992

Certificated Salaries

Classified Salaries

Benefits

Supplies

Services

Capital Outlay

Transfers/ Contributions

Other Outgo

7%

16%

12%

4%

7%

4%

50%

Budget Study 2013-14 2014-15

Operating Proposed Budget(May)

Budget

Revenues 32,494,809 35,190,159 2,695,350

Expenses 31,484,677 33,455,065 1,970,388

Surplus (Deficit) 1,010,132 1,735,094 724,961

Transfers/Contributions (2,342,921) (2,424,964) (82,044)

Beginning Fund Bal 10,953,076 9,620,287 (1,332,788)

Ending Fund Bal 9,620,287 8,930,417 (689,871)

Difference

Unrestricted

The Overall PictureUnrestricted GF Revenues/Expenditures

Questions?

california state budget – overview of educational impacts significant lcap services/activities ...

Documents

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purpose slide

additional funding

strs funding

funding burden

day kindergarten funding

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