2017/18 2nd Interim Budget Black Oak Mine Unified School District Board of Trustees Bill Drescher, President Darcy Knight Joe Scroggins Ronnie Ebitson Jeff Burch Superintendent Jeremy Meyers
Key Slides 13 17 3 7 8 9 10 14 18 19 20 21 30 32 34
How the Budget Process Work The State requires School Boards to adopt 1 district budgets by June 30th of each year After the adoption of the State budget schools are required under Education Code 42127(i)(4) to update district 2 budgets with any significant changes within 45 days Two interim reports are taken to the board for approval each year. 3 December - Referred to as 1 st Interim • March – Referred to as 2 nd Interim • Books are closed in July-August and taken to the Board for approval in September as “Unaudited 4 Actuals” 1
Budget Timelines JUNE 1ST – 3rd Interim Budget JULY 1st-Adopted Budget -or- (Qualified or Negative Certified Not later than 45 days after the Governor signs Districts Only) – the annual Budget Act, the school district shall make available for public review any revisions in No later than June 1, each school district with a revenues and expenditures that it has made to its qualified or negative certification for the second budget to reflect the funding made available by interim report must provide financial statement the Budget Act. (EC 42127 (i) (4)) projections of the district’s fund and cash . balances through June 30 for the period ending DECEMBER – 1st Interim Budget April 30 to the county superintendent, the Controller, and the SPI. The 1st Interim report will be presented at the public board meeting in December of each year. . This report will include any changes made to the budget since the budget adoption in June, including those reported 45 days after the SEPTEMBER – Unaudited Actuals Governor signed the annual Budget Act. The Unaudited Actuals report will be presented at . the public board meeting in September of each year. This report will reflect the actual revenue MARCH – 2nd Interim Budget and expenditures of the district for the budget The 2nd Interim report will be presented at the year. public board meeting in March of each year. This . report will include any changes made to the budget since the 1st Interim report was presented in December. 2 .
Budget Certifications BOMUSD Administration Recommendation: Positive Three Choices • Positive: The district is able to meet its financial obligations for the remainder of the fiscal year and subsequent two fiscal years • Qualified: the district may not be able to meet its financial obligations for the current year or two subsequent fiscal years • Negative: the district will not be able to meet its financial obligations for the remainder of the current year or the subsequent year 3
Budget Assumptions There are many unpredictable factors that affect revenue and expenditures. Because of that, the District bases its budget on assumptions. This is the best information available at the time the budget is adopted. The adopted budget, therefore, should be considered a “financial snapshot” on the date it is approved. As variables change, formal adjustments, approved by the board, are made throughout the course of the year. 4
REVENUES
Local Control Funding Formula - LCFF There are two distinct phases of LCFF: The Original 8 year implementation phase – Transition Entitlement • Until the LCFF is fully funded, school districts and charter schools, will receive an LCFF Transition Entitlement. • The Transition Entitlement is based on an LEA’s 2012-13 funding level, adjusted for changes in student population, and the amount of funding the LEA would receive under the LCFF model at full implementation. The fully funded phase – Target Entitlement • Funding increases based on COLA 6
Enrollment and Average Daily Attendance (ADA) ENROLLMENT & ADA (EXCLUDES CHARTER) 2,000 1,847 1,740 1,800 1,639 1805 1,600 1,465 1,402 1,668 1,400 1,273 1,557 1,157 1,125 1,103 1,200 1,386 1,072 1,046 1,015 1,019 1,326 1,214 1,000 1,111 1,071 1,059 1,014 800 997 968 965 600 400 200 0 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 est est est Enrollment (CBEDS) Impact of declining enrollment on LCFF funding: 2017/18 – a loss of about $251,000 2018/19 – a loss of about $171,000 7 2019/20 – a loss of about $238,000
2017/18 LCFF Income Assumptions Four Main Assumptions to Project LCFF Income ANNUAL COLA ATTENDANCE UNDUPLICATED % GAP % 2017-18 = 1.56% Based on Free-Reduced The Difference between District Priced meal Students, where we are currently • 2017/18 CBEDS =1046 Funded 2% below target Foster Youth and Englis funded and our Target ( decrease of 30 students) h Learners • 2017-18 Funded ADA 2017-18 = 44.97% = 1035 2017-18= 45.34% (a decrease of 38 students) Charter • 2017/18 CBEDS = 186 (increase of 9 students) • 2017-18 Funded ADA = 182 (an increase of 5 students) 8
TRANSITION-SIMPLIFIED LCFF CALCULATION 13-14 14-15 15-16 16-17 17-18 ACTUALS ACTUALS ACTUALS ACTUAL ESTIMATE District LCFF ADA P-2 1,123 1,082 1,074 1,033 1,015 District LCFF ADA (funded) 1,214 1,123 1,082 1,073 1,035 Loss in funded ADA (83) (41) (9) (38) Loss in funded ADA (NSS-Otter Creek) (7) Total Loss in funded ADA (90) (41) (9) (38) Prior Year Total LCFF $8,830,739 $8,869,362 $9,347,980 $9,623,667 ADA loss in $'s ($469,543) ($258,836) ($61,849) ($251,152) ADA loss (NSS-Otter Creek) in $'s ($116,365) $0 $0 $0 TOTAL FLOOR $8,522,663 $8,244,831 $8,610,526 $9,286,131 $9,372,515 GAP FUNDING $308,076 $624,531 $737,454 $337,536 $150,213 TOTAL LCFF FUNDING $8,830,739 $8,869,362 $9,347,980 $9,623,667 $9,522,728 Total LCFF Funding Loss due to ADA Loss ($585,908) ($258,836) ($61,849) ($251,152) line 8 + 9 Total LCFF GAP Funding $624,531 $737,454 $337,536 $150,213 line 11 Variance between GAP & ADA Loss in $'s line 15 - 16 $38,623 $478,618 $275,687 ($100,939) 9
LCFF CALCULATION-STUDENT GROWTH 17-18 18-19 19-20 20-21 ESTIMATE ESTIMATE ESTIMATE ESTIMATE District LCFF ADA P-2 1,015 980 982 965 District LCFF ADA (funded) 1,035 1,015 982 979 Loss in funded ADA (38) (20) (33) (3) Loss in funded ADA (NSS-Otter Creek) Total Loss in funded ADA (38) (20) (33) (3) Prior Year Total LCFF $9,623,667 $9,522,728 $9,746,994 $9,732,269 ADA loss in $'s ($251,152) ($171,384) ($238,059) ($17,246) ADA loss (NSS-Otter Creek) in $'s $0 $0 $0 $0 TOTAL FLOOR $9,372,515 $9,351,344 $9,508,935 $9,715,023 GAP FUNDING/COLA FUNDING $150,213 $395,650 $223,334 $255,639 TOTAL LCFF FUNDING $9,522,728 $9,746,994 $9,732,269 $9,970,662 Increase of 5 Students in 2018-19 $0 $43,060 $44,260 Increase of 10 Students in 2018-19 $0 $86,120 $88,521 Increase of 15 Students in 2018-19 $0 $129,181 $132,781 10 Increase of 20 Students in 2018-19 $0 $172,241 $177,041
Unrestricted vs. Restricted Income UNRESTRICTED INCOME RESTRICTED INCOME AKA Categoricals Can be used for any school related Expenditures must follow the expense. specific guidelines of the grant or • Examples: LCFF, Non-Prop 20 Lottery entitlement. Grants and Entitlements are often referred to as “Categoricals” • Examples: Special Education, Title IA, Title II, Workability 11
2017/18 INCOME = $11.8 million BY MAJOR CATEGORIES (38%) Other (3%) Other (4%) Other (31%) Federal Local Revenue State Revenue Local Revenue Revenue = = $589K, 38% = $345K = $4421K $481K, 31% (0%) Federal Revenue (31%) Other (92%) LCFF = State Revenue $9.5M = $483K, 31% UNRESTRICTED INCOME RESTRICTED INCOME $10.2 M 12 $1.6 M
Major Income Changes Since First Interim Budget 2017-18 1st Interim 2017-18 2nd Interim Variance Unrestricted Restricted V Total Varia Unrestricted Restricted Total Unrestricted Restricted Total Variance ariance nce Revenue Detail Local Control Funding Formula 9,424,891 - 9,424,891 9,454,780 - 9,454,780 29,889 - 29,889 Federal Revenue 17,282 474,796 492,078 4,550 481,377 485,927 (12,732) 6,581 (6,151) LCFF Income - $30,000 Increase 1.8% increase in projected GAP plus 2.0 increase in Special Ed COE students Federal Income – $6,000 Decrease MAA adjustment for backcasting ($12k) Medi-Cal cash basis receipt of $6k Title IA entitlement change of $4k 13
Major Income Changes Cont…. Since First Interim Budget 2017-18 1st Interim 2017-18 2nd Interim Variance Unrestricted Restricted V Total Varia Unrestricted Restricted Total Unrestricted Restricted Total Variance ariance nce Revenue Detail Other State Revenue 340,571 516,020 856,591 345,242 483,798 829,040 4,671 (32,222) (27,551) Other Local Revenue 416,116 578,319 994,435 420,639 589,422 1,010,061 4,523 11,103 15,626 Other State- $28,000 Decrease Lottery prior year adjustment of $10k STRS on Behalf adjustment ($38k) Other Local– $16,000 Increase Student Account Changes on a Cash basis $14k 14
EXPENDITURES
2017/18 EXPENSES = $11.9 million BY MAJOR CATEGORIES (9%) Contract Services, Other (28%) Contract (5%) Supplies = Expenses = $749K , 9% Services, Other $447K, 5% Expenses = $876K , 28% (61%) Salaries & Benefits = (11%) Supplies $1.9M, 61% (86%) Salaries & … = $336K, 11% UNRESTRICTED EXPENSE RESTRICTED EXPENSE $8.8 M 16 $3.1 M
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