2019-20 second interim budget report€¦ · 2014-15 2818 1528 2544 6890 2015-16 2760 1555 2459...

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2019-20 SECOND INTERIMBUDGET REPORT

Manhattan Beach Unified School District

325 S. Peck Avenue

Manhattan Beach, CA 90266

Phone: (310) 318-7345, x5900

Second Interim – March 4, 2020

2

ECONOMIC INDICATORS

Yield Curve

10-Year U.S Treasury Bond minus 3 Month Treasury Bill, Jan 1982 – Jan 2020


3

CALIFORNIA’S BUDGET


4

SCHOOL FUNDING - LCFF

Grade Span 2019-20 Base Grant Augmentation Grant Total Base Grant

TK-3 $7,702 $801 $8,503

4-6 $7,818 $0 $7,818

7-8 $8,050 $0 $8,050

9-12 $9,329 $243 $9,572

Grade Span

Supplemental Grant20% of Base Grant for

Every High Needs

Student

Concentration Grant50% of Base Grant for

Every High Needs

Student over 55% of

District Enrollment

TK-3 $1,701 $4,252

4-6 $1,564 $3,909

7-8 $1,610 $4,025

9-12 $1,914 $4,786


5

SCHOOL FUNDING - LCFFDistrict Type Basic Aid UPP

Lennox Elementary N 95.21%

Hawthorne Elementary N 89.20%

Inglewood Unified N 87.35%

Centinela Valley High School N 86.16%

Lawndale Elementary N 85.78%

Wiseburn Unified N 43.67%

Torrance Unified N 38.20%

Culver City Unified N 36.93%

Santa Monica-Malibu Unified N 28.25%

South Pasadena Unified N 20.74%

Redondo Beach Unified N 18.68%

Beverly Hills Unified Y 18.59%

El Segundo Unified N 16.73%

San Marino Unified N 15.79%

Las Virgenes Unified N 15.55%

Palos Verdes Peninsula Unified N 12.97%

La Canada Unified N 8.11%

Manhattan Beach Unified N 5.55%

Hermosa Beach Elementary N 5.51%


6

ENROLLMENT(update as of 3/4/2020)


K-5 6-8 9-12 Total

2014-15 2818 1528 2544 6890

2015-16 2760 1555 2459 6774

2016-17 2754 1475 2547 6776

2017-18 2636 1438 2573 6647

2018-19 2562 1440 2581 6583

2019-20 2516 1440 2568 6524

2020-21* 2393 1377 2502 6272

2021-22* 2297 1375 2578 6250

2022-23* 2238 1364 2650 6252

*projected using combined cohort/regression model

7

REVENUE CHANGES


Increases at the 45-day revision/unaudited actuals:

• CalPERS On-Behalf (w/corresponding exp.) – $782,744

• One-time preschool special ed. revenue – $646,200

Changes in the First Interim Budget Report:

• Low Performing Student Block Grant funding – $136,350

• Federal Special Education funding – $39,753

• Property Tax JPA – $34,817

• One-time preschool special ed. revenue – ($105,602)

• State Special Education Funding – ($63,343)

• Other changes - $14,172

Changes in the Second Interim Budget Report:

• Special Education Funding - $64,762

• TUPE Grant - $3,000

• Rental Revenue - $45,911 ($23,000 ongoing)

Net change since Budget Adoption: $1,565,866

Net change since Unaudited Actuals: $140,476

Net change since First Interim: $113,673

8

EXPENSE CHANGES


Changes at the 45-day revision/unaudited actuals:

• CalPERS On-Behalf payments (offset by

corresponding revenue) – $782,744

• Special Education and utility expenses – ($820,124)

Increases in the First Interim Budget Report:

• Salary and Benefits – $493,611

• Legal Services – $319,119

• Special Education Services – $662,243

• Travel and Conference – $312,105

• Supplies - $142,592

Changes in the Second Interim Budget Report:

• Special Education expenses – $127,845

• Routine Restricted Maintenance expenses - $4,972

• Other Salary and Benefits – ($98,348)

• Other Supplies and Services - ($39,455)

Net change since Budget Adoption: $1,792,617

Net change since Unaudited Actuals: $1,847,245

Net change since First Interim: ($4,986)

9ADDITIONAL CHANGES –MBEF AND FUND 06

$258,127

$26,519

$6,176

$1,032

$30,200

$158,910

$102,744

$-

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

Revenue Expense

Services

Supplies

Salary and Benefits

Other

MBEF

MBX

PTA/Parent

Donations


10

REVENUE


LCFF

Revenue

$56,553,075

66%

Federal

Revenue

$2,140,522

2%

Other State

Revenue

$9,996,926

12%

Local

Revenue

$17,293,23

5

20%

11

EXPENSE


Certificated

Salary

$36,725,555

41%

Classified

Salary

$14,939,587

17%

Benefits

$22,658,716

25%

Supplies

$2,956,542

3%

Services

$12,507,862

14%

Capital Outlay

$20,000

0%

Other Outgo/

Indirect

$174,086

0%

12

COLA


First Interim

Projected

COLA

Second

Interim

Projected

COLA

2019-20 3.26% 3.26%

2020-21 3.00% 2.29%

2021-22 2.80% 2.71%

2022-23 3.16% 2.82%

13

LCFF GROWTH / COST INCREASES


14

EXPENDITURE REDUCTIONS


Previously budgeted reductions

• The District’s professional development budget was

reduced by over $500,000

• The District’s instructional materials budget was

reduced by over $540,000

• The District’s technology budget was reduced by

almost $1,030,000 (equipment replacement

reduced by almost $300,000; services/supplies

reduced by over $730,000)

• The District’s budgets for other departments were

reduced by almost $220,000

15

EXPENDITURE REDUCTIONS


Additional reductions at second interim

• Beginning in 2020-21:

• Certificated reduction by 32.7 FTE’s

• Classified reduction by 7.4 FTE’s

• Reduction in services by approximately

$700,000

• Future years:

• Equivalent of an additional 39 FTE’s in 2021-22

• Equivalent of an additional 25 FTE’s in 2022-23

16

MULTI-YEAR PROJECTION

2018-19 2019-20 2020-21 2021-22

Beg Balance $11,149,419 $8,253,454* $4,254,864 $2,600,418

Revenues $85,707,344 $85,983,758 $83,963,368 $83,123,958

Expenses $88,558,943 $89,982,348 $85,617,834 $83,187,365

Net Inc/(Dec) ($2,851,599) ($3,998,590) ($1,654,446) ($63,408)

Ending Bal $8,324,150 $4,254,864 $2,600,418 $2,537,010

Undesignated

Ending Bal.$1,276,290 $1,147,980 $1,883 $11,390


Projections based on anticipated reductions in 2020-21 and 2021-22

*incl. audit adjustment decrease of $70,696

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MULTI-YEAR PROJECTION(update as of 3/4/2020)

2019-20 2020-21 2021-22 2022-23

Beg Balance $8,253,454* $4,254,864 $2,600,418 $2,537,010

Revenues $85,983,758 $83,963,368 $83,123,958 $83,297,858

Expenses $89,982,348 $85,617,834 $83,187,365 $85,780,978

Net Inc/(Dec) ($3,998,590) ($1,654,446) ($63,408) ($2,483,120)

Ending Bal $4,254,864 $2,600,418 $2,537,010 $2,537,010

Undesignated

Ending Bal.$1,147,980 $1,883 $11,390 ($2,549,539)


Projections based on anticipated reductions in 2020-21 and 2021-22;

projections do not include potential reduction of the equivalent of 25 FTE’s

in 2022-23

*incl. audit adjustment decrease of $70,696

18MULTI-YEAR PROJECTIONENDING FUND BALANCE


$-

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

$6,000,000

$7,000,000

$8,000,000

$9,000,000

2018-19 2019-20 2020-21 2021-22

3-Year Escrow

Restricted

REU (5%)

REU (3%)

Undesignated

Amount

19MULTI-YEAR PROJECTIONADOPTED-UNAUDITED “SWING”

Adopted Budget Unaudited Actuals Total Change

2011-12 ($2,176,236) ($1,078,135) $1,098,101

2012-13 ($5,682,446.00) ($2,956,204.00) $2,726,242

2013-14 ($2,977,006.00) $1,127,733.00 $4,104,739

2014-15 ($3,211,807.00) ($1,402,405.95) $1,809,401

2015-16 ($683,646.00) $79,099.47 $762,745

2016-17 ($3,339,507) ($373,275) $2,966,232

2017-18 ($3,303,012) ($2,300,560) $1,002,452

2018-19 ($145,480) ($2,851,599) ($1,468,980)

2019-20 ($3,771,859) ($3,998,590)* ($226,731)*

*year-to-date projected “swing” at second interim.


20ONGOING CONCERNSAND PRIORITIES

• An ongoing structural deficit

• Diminishing available reserves

• Diminishing increases to state funding provided through

the LCFF

• Increasing STRS and PERS costs

• Ongoing increases to other expenditure areas, including

health & welfare benefits and special education programs

• Future negotiated settlements with district bargaining units

• Maintenance, facilities, and operational needs

• Technology infrastructure and hardware needs

• Ongoing need for further human capital investment

• Textbook and instructional material costs

• Potential economic contraction


21

NEXT STEPS

• Implement approved staffing reductions for 2020-21

• Develop plan for budgeted reductions to services for

2020-21

• Assess staffing recommendations related to special

education study and provide direction

• Monitor upcoming budgetary information, including

the May Revision and the Enacted Budget

• Continue to work with the Budget Advisory

Committee to identify potential sources of revenue

enhancement and expenditure reductions

• Continue planning with stakeholder groups, including

MBEF


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2019-20 SECOND INTERIMBUDGET REPORT

Manhattan Beach Unified School District

325 S. Peck Avenue

Manhattan Beach, CA 90266

Phone: (310) 318-7345, x5900


2019-20 second interim budget report€¦ · 2014-15 2818 1528 2544 6890 2015-16 2760 1555 2459...

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