June 7, 2016

PROPOSED BUDGET REPORT

FY 2016/17

DR. ADRIAN PALAZUELOS ANDREA MCNEILL

SUPERINTENDENT ASST. SUPERINTENDENT,

BUSINESS SERVICES

District Logo Student Success, whatever it takes

FUSD Mission & Core Values

Mission

Every day we develop high performing students who become

engaged and productive members of society.

Core Values

Accountability

Excellence

Culture

Staff

Respect

Trust

Partnerships

Fiscal Responsibility

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Purpose of Budget Report

It is required by Ed. Code

Provide an Expenditure Plan for the governing board’s

consideration and approval

To certify to the VCOE that the district is able to meet

the state required reserve level for the current and two

subsequent years

Shows evidence of LCAP alignment to Budget

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Budget Assumptions

The budget is often referred to as a “living document ” which must be revised whenever conditions/assumptions

change. We reflect those changes in the Revised Budget and 1st & 2nd Interim Financial Reports.

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Assumptions 2016-2017 2017-2018 2018-2019

Cost of Living Adjustment (COLA) 0% 1.11% 2.42%

Funded LCFF Gap (Projected %) 54.84% 73.96% 41.22%

P2 ADA 3625± 3598± 3598±

Enrollment (projecting flat) 3757 3757 3757

Step & Column (1.5 % for certificated, 1.0% for classified) $323K $345K $337K

STRS (currently 10.73%) 12.58% 14.43% 16.28%

PERS (currently 11.847%) 13.888% 15.50% 17.10%

Instructional Days/Prof. Development 180/5 180/5 180/5

Furlough Days 0 0 0

Health and Welfare Costs –all groups 10% incr. 10% incr. 10% incr.

Lottery (Unrestricted) per ADA $140 $140 $140

Lottery (Restricted) per ADA for Prop. 20 $41 $41 $41

By the Numbers..LCFF Components Summary

Projected funding increase will vary until fully funded.

Gap closure is determined annually by the state.

Gap is the difference between our final entitlement

(2021) and funds we actually receive until the gap is

closed.

The state promised that no district would lose funding as

a result of LCFF implementation.

Our unduplicated pupil count is 80%

but can change!

Percentage above the 55% threshold

(80 - 55) = 25%

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Component Totals Target Amounts

Base Grant $27,481,512

Grade Span Adjustments $1,107,774 (K3) & (9-12)

Supplemental $4,591,439

Concentration $3,616,545

Transportation $477,844

Entitlement Target

in 2021

$37,275,114

15/16 Hold Harmless

Amount

$32,866,203

GAP FUNDING $4,408,911

Funding for FY 16/17 is

54.84% of the Gap

$2,417,847

Proportionality PercentageThe percentage an LEA is required to demonstrate improved/or increased services to unduplicated

students - can be qualitative or quantitative measure.

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Factors Amounts

Estimated Base Grant $27,481,512

Estimated Supplemental & Concentration

Grant Funding (all Unrestricted funds)$4,980,086

Minimum Proportionality Percentage 16.70%

K-3 GSA Calculations - FY 2016/17

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Targeted Grade Span Adjustment

Piru

Mountain

Vista San Cayetano Rio Vista

Prior Year Required Class Size Average 25.5 26.5 26.0 26.0

Minus Target Class Enrollment 24.0 24.0 24.0 24.0

Equals 1.5 2.5 2.0 2.0

2016-17 GAP % (estimated) 54.84% 54.84% 54.84% 54.84%

Minimum Required Reduction over Prior Year 0.74 1.23 0.98 0.98

Maximum Class Size Average to Make Progress 25 25.5 25.0 25.0

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One-time Discretionary Funds in FY

16/17 Budget

One-time Discretionary - Mandated Cost Estimates

3,618 ADA times $ 237 $857,466

Use of One-time Funding

Annual Technology Replacement $140,000

Technology Infrastructure

21st Century Classroom Technology $500,000

Total Use Planned for 2016-17 $640,000

Balance of One-time Discretionary Funds $217,466

GENERAL FUND REVENUES

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$35,284,05081.4%

$2,379,3095.5%

$3,126,5907.2% $2,544,167

5.9%

LCFF Federal Revenue Other State Revenue Other Local Revenue

Revenue by Object Total Amount

LCFF $35,284,050

Federal Revenue $2,379,309

Other State Revenue $3,126,590

Other Local Revenue $2,544,167

Total Revenue $43,334,116

GENERAL FUND EXPENDITURES

$36M or 79%

of the budget is

spent towards

employees’

Salaries &

Benefits

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$18,511,792 40.4%

$6,775,770 14.8%

$11,453,416 25.0%

$2,424,029 5.3%

$5,696,367 12.4%

$859,349 1.9%

$98,274 0.2%

Certificated Salaries Classified Salaries Employee Benefits

Books and Supplies Services, Operating Expenses Capital Outlay

Other Outgo/Transfers Out

General Fund Expenditures Total Amount

Certificated Salaries $18,511,792

Classified Salaries $6,775,770

Employee Benefits $11,453,416

Books and Supplies $2,424,029

Services, Operating Expenses $5,696,367

Capital Outlay $859,349

Other Outgo/Transfers Out $98,274

Total $45,818,997

General Fund ComparisonFY 15/16 to FY 16/17

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Description

FY 15/16

Estimated

Actuals

FY 16/17

Proposed

Budget Difference

REVENUES

LCFF $32,870,383 $35,284,050 $2,413,667

Federal Revenues $3,010,138 $2,379,309 ($630,829)

State Revenues $4,651,779 $3,126,590 ($1,525,189)

Local Revenues $3,617,746 $2,544,167 ($1,073,579)

TOTAL REVENUES $44,150,046 $43,334,116 ($815,930)

EXPENDITURES

Certificated Salaries $17,364,379 $18,511,792 $1,147,413

Classified Salaries $5,990,619 $6,775,770 $785,151

Employee Benefits $10,054,602 $11,453,416 $1,398,814

Books/Sup/Svcs/Op.Exp $8,226,828 $8,120,396 ($106,432)

Capital Outlay $1,613,361 $859,349 ($754,012)

Debt Service/Other

Outgo/Transfers Out $1,998,420 $98,274 ($1,900,146)

TOTAL EXPENDITURES $45,248,209 $45,818,997 $570,788

SURPLUS/DEFICIT ($1,098,163) ($2,484,881) ($1,386,718)

Components of Ending Fund Balance

General Fund13

Beginning Fund Balance (Estimated) $4,772,042

Revenues $43,334,116

Expenditures $45,818,997

Projected Ending Fund Balance $2,287,161

Restricted & Assigned $855,881Other Post Employment Benefits

Designated for Economic $1,374,600

Uncertainties - 3% of Expenditures and Transfers Out

Undesignated Ending Fund $56,680

Balance

Per SB858 Requirements the Total Assigned and Undesignated

balances above the minimum reserve requirement is $1,482,410.

Multi-Year Projection

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FY 16/17 FY 17/18 FY 18/19

Beginning Fund Balance $4,772,042 $2,287,161 $2,468,737

Revenue $43,334,116 $43,532,432 $44,173,322

Expense $45,818,997 $43,350,856 $44,326,301

Ending Fund Balance $2,287,161 $2,468,737 $2,315,758

Less Restricted & Assigned $855,881 $930,485 $961,089(Other Post Employment Benefits)

Less Designations $1,374,600 $1,300,530 $1,335,790(3% Reserve Requirement)

Undesignated Balance $56,680 $237,722 $18,879

Budget Certification

FUSD is proposing a Positive Budget Certification.

This means that based on current projections the

district will meet its financial obligations for the

current fiscal year and two subsequent fiscal years.

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Proposition 30 Taxes

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Proposition 30, approved by voters in November 2012,

temporarily increased the state sales tax and income tax rates for

high-income earners.

With current legislation these higher taxes will expire as follows:

The 0.25% sales tax increase expires in 2016 (i.e., the 2016-17 fiscal

year)

The personal income tax increase expires in 2018 (i.e., the 2018-19 fiscal

year)

As in 2015-16, the District proposes to use EPA revenues for

teacher salaries in 2016-17.

Next Steps in the Budget Process 17

July - August

45 Day Update: Based on the Adopted State Budget

Close Year-End

September

Presentation of 2015-16 Unaudited Actuals Report

October

Audit

December

2016-17 1st Interim Report

Submit 2015-16 Audit Report to State Controller’s Office

Questions?

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