palm springs unified school district 2014/15 first interim report as of october 31, 2014

Palm Springs Unified School District2014/15 First Interim Report

As of October 31, 2014

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2014/2015 First Interim Report Purpose of the Interim Report:

School districts are required to certify their financial position twice during each fiscal year. The certification addresses a district’s ability to meet its financial obligations for the current and two subsequent fiscal years.

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2014/2015 First Interim Report Certifications include the following options:

“Positive Certification” – will be able to meet financial obligations

“Qualified Certification” – uncertainty around ability to meet obligations

“Negative Certification” – will not be able to meet financial obligations

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2014/2015 First Interim Report Local Control Funding Formula (LCFF)

Provides for a Base Grant for all students Provides a Supplemental Grant based on

English Language Learners (ELL), Free and Reduced Priced Meal (FRPM) eligible students, and foster youth unduplicated count

Provides a Concentration Grant based on ELL, FRPM, and foster youth unduplicated count students above 55% of the District-wide enrollment

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Districts are required to develop and monitor the implementation of a Local Control Accountability Plan (LCAP) that aligns the academic plan with the District expenditure plan

LCFF targeted funding is phased in over 8 years through fiscal year 2020/21

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Cautions Future LCFF funding levels not guaranteed Implementation over the next seven (7) year period creates uncertainty of

funding Class Size Reduction tied to the funding – 8 year implementation

Categoricals programs rolled into LCFF must still be addressed Considerations

Class size reduction Declining enrollment Implementation of LCAP Bargaining unit compensation Educational goals/programs Utility costs Impact of the sunset of the Education Protection Account Starting 2016/2017 Textbook adoptions starting in 2015/2016 Routine repair and general maintenance increased to 3% from ~1% (1.7M)

starting 2015/2016 STRS/PERS employer contributions increased through 2020/2021…

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2014/2015 First Interim ReportRestricted and Unrestricted (Combined)

1st InterimFY

2014/2015

ProjectedFY

2015/2016

ProjectedFY

2016/2017

Revenues $209,857,517

$218,643,055

$232,452,812

Expenditures $231,242,764

$218,897,709

$224,228,438

Excess/(Deficiency) ($21,385,247)

($254,654) $8,224,384

Transfers In $9,427,223 $3,959,215 $3,975,484

Transfers Out $1,123,475 $1,123,475 $1,123,475

Net Increase(Decrease) ($13,081,499)

$2,581,086 $11,076,393

Beginning Fund Balance $26,118,313 $13,036,814 $15,617,899

Ending Fund Balance $13,036,814

$15,617,899

$26,694,293

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2014/2015 First Interim ReportRestricted and Unrestricted (Combined)

Components of the Ending Fund Balance:1st Interim

FY 2014/2015

ProjectedFY

2015/2016

ProjectedFY

2016/2017

Revolving Cash $100,000 $100,000 $100,000

Stores $170,000 $170,000 $170,000

Legally Restricted $774,640 $32,456 $69,914

Legally Restricted 3% Reserve

$6,970,897 $5,667,897 $5,638,992

Unassigned- Lottery, Unrestricted

$2,653 - -

Assigned- Designated Carryover

$7,500 - -

Unassigned- Unrestricted $2,744,627 - -

Assigned LCAP Reserve Per MPP

$2,266,406 $4,329,232 $11,461,903

Year 2 LCAP Increase $5,318,314 $5,318,314

Year 3 LCAP Increase $3,935,169


$15,617,899

$26,694,293

2.58% 2.5%

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2014/2015 First Interim ReportUnrestricted

1st InterimFY

2014/2015

ProjectedFY

2015/2016

ProjectedFY

2016/2017

Revenues $174,758,966

$187,047,613

$200,666,826

Expenditures $172,249,336

$168,576,876

$173,711,418

Excess/(Deficiency) $2,509,630 $18,470,737 $26,955,407

Transfers In $7,292,223 $1,814,798 $1,822,411

Transfers Out $1,123,475 $1,123,475 $1,123,475

Contributions ($14,992,803)

($15,838,790)

($16,615,408)

Net Increase(Decrease) ($6,314,425) $3,323,270 $11,038,935

Beginning Fund Balance $18,576,598 $12,262,173 $15,585,443


$15,585,443

$26,624,378

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2014/2015 First Interim ReportUnrestricted

Components of the Ending Fund Balance:1st Interim

FY 2014/2015

ProjectedFY

2015/2016

ProjectedFY

2016/2017

Revolving Cash $100,000 $100,000 $100,000

Stores $170,000 $170,000 $170,000

Legally Restricted

Legally Restricted 3% Reserve

$6,970,987 $5,667,897 $5,658,992

Unassigned- Lottery, Unrestricted

$2,653

Assigned- Designated Carryover

$7,500

Unassigned- Unrestricted $2,744,627

Assigned LCAP Reserve Per MPP

$2,266,406 $4,329,232 $11,461,903

Year 2 LCAP Increase $5,318,314 $5,318,314

Year 3 LCAP Increase $3,935,169


$15,585,443

$26,624,378

2.58% 2.5%

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Expenditures (% of General Fund)

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Salary and Benefit Expenditures (% of General Fund)

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Employer Retirement Expenditures (% of General Fund)

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As a % of General Fund Expenditures, pension obligations increase from 5.61% in 2014-

2015 to 11.28% in 2020-2021

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2014/2015 First Interim Report CONCLUSIONS

The District can meet it financial obligations for the current fiscal year, and the two following fiscal years using Fund 17.

It is recommended the Board approve the 1st Interim Report with a Positive Certification.

The LCFF financing model has brought about major changes to how we are financed. Uncertainty of the level of funding as well as the other concerns previously discussed will influence our decision-making moving forward over the next 2 ½ years.

palm springs unified school district 2014/15 first interim report as of october 31, 2014

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