+ 2019-20 FIRST INTERIM BUDGET REPORT Manhatt attan an Beach - PowerPoint PPT Presentation

+ 2019-20 FIRST INTERIM BUDGET REPORT Manhatt attan an Beach Unified d School ol Distri trict 325 S. Peck k Avenu nue Manhatt attan an Beach, , CA 902 0266 Phone: ne: (310) 0) 318-7345, , x5900 00 First Interim – December 11, 2019

2 ECONOMIC INDICATORS Yield Curve 10-Year U.S Treasury Bond minus 3 Month Treasury Bill, Jan 1982 – Nov 2019 First Interim – December 11, 2019

3 CALIFORNIA’S BUDGET First Interim – December 11, 2019

4 ENROLLMENT K-5 6-8 9-12 Total 2014-15 2818 1528 2544 6890 2015-16 2760 1555 2459 6774 2016-17 2754 1473 2547 6776 2017-18 2636 1438 2573 6647 2018-19 2562 1440 2581 6583 2019-20* 2514 1433 2566 6513 *preliminary census day enrollment count First Interim – December 11, 2019

5 ENROLLMENT K-5 6-8 9-12 Total 2014-15 2818 1528 2544 6890 2015-16 2760 1555 2459 6774 2016-17 2754 1473 2547 6776 2017-18 2636 1438 2573 6647 2018-19 6583 2562 1440 2581 2019-20 6513 2514 1433 2566 2020-21* 2393 1377 2502 6272 2021-22* 2297 1375 2579 6250 2022-23* 2539 1364 2650 6252 *projected using combined cohort/regression model First Interim – December 11, 2019

6 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 Concentration Grant Supplemental Grant 50% of Base Grant for 20% of Base Grant for Every High Needs Grade Span Every High Needs Student over 55% of Student 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 First Interim – December 11, 2019

7 SCHOOL FUNDING - LCFF District Type Basic Aid UPP Lennox Elementary N 96.28% Hawthorne Elementary N 89.40% CentinelaValley High School N 85.63% Inglewood Unified N 84.92% Lawndale Elementary N 84.80% Wiseburn Unified N 46.01% Torrance Unified Unified N 38.18% Culver City Unified N 37.23% Santa Monica-Malibu Unified N 28.60% South Pasadena Unified N 19.74% Redondo Beach Unified N 19.10% El Segundo Unified N 16.00% Beverly Hills Unified Y 15.60% San Marino Unified N 15.26% Palos Verdes Peninsula Unified N 11.95% La Canada Unified N 8.00% Manhattan Beach Unified N 5.32% Hermosa Beach City Elementary N 4.89% First Interim – December 11, 2019

+ 8 SCHOOL FUNDING - LCFF Unduplicated Counts Year UPP 2013-14 4.00% 2014-15 3.50% 2015-16 4.10% 2016-17 4.89% 2017-18 5.32% 2018-19 5.55% 2019-20* 6.20% *proj. for current year; will be averaged with prior years in final calculation First Interim – December 11, 2019

+ 9 MBUSD’S BUDGET Local Funding ◼ $225 per parcel ◼ 12,879 taxable parcels ◼ 13.9% exemption rate ◼ 11,089 parcels taxed ◼ Up to $2.49 million in local revenue from 2018- 19 through 2023-24; 99% of anticipated revenue received to date First Interim – December 11, 2019

+ 10 MBUSD’S BUDGET Local Funding Grants to the District (in millions) $6.0 $5.0 $4.0 $3.0 $2.0 $1.0 $0.0 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 First Interim – December 11, 2019

11 REVENUE CHANGES Increases at the 45-day revision/unaudited actuals: • CalPERS On-Behalf state revenue (offset by corresponding expense) – $782,744 • One-time preschool special education revenue – $646,200 Increases 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 Decreases in the First Interim Budget Report: • One-time preschool special education revenue – $106,602 • State Special Education Funding – $63,343 Net change since Budget Adoption: $1,479,457 Net change since Unaudited Actuals: $50,513 First Interim – December 11, 2019

12 EXPENSE CHANGES Increases at the 45-day revision/unaudited actuals: • CalPERS On-Behalf payments (offset by corresponding revenue) – $782,744 Decreases at the 45-day revision/unaudited actuals: • 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 • Net change since Budget Adoption: $1,797,603 Net change since Unaudited Actuals: $1,852,231 First Interim – December 11, 2019

ADDITIONAL CHANGES – 13 MBEF AND FUND 06 Capital Outlay $20,000 $53,672 $2,000,000 Services $549,907 Supplies $933,102 $1,500,000 Salary and Benefits $145,898 $11,212 Other $1,000,000 Grants $1,336,601 $980,463 MBEF $500,000 MBX $163,725 PTA/Parent $- Donations Revenue Expense First Interim – December 11, 2019

EXPENSE CHANGES – 14 SPECIAL EDUCATION $1,000,000 $29,369 $900,000 $800,000 Other $700,000 $600,000 $761,505 Supplies & Services $500,000 $400,000 Salary & $300,000 Benefits $200,000 $100,000 $199,935 $- First Interim – December 11, 2019

15 REVENUE Local Revenue $16,932,523 20% Other State LCFF Revenue Revenue $9,952,111 $56,553,075 12% 66% Federal Revenue $2,140,522 2% First Interim – December 11, 2019

16 EXPENSE Other Capital Outgo/ Outlay Services Indirect $20,000 $12,085,482 $399,086 0% 14% 0% Supplies $2,777,237 3% Certificated Salary $36,740,469 41% Benefits $22,641,552 25% Classified Salary $15,031,654 17% First Interim – December 11, 2019

17 PENSIONS CalPERS Actuals/ CalSTRS Actuals/ Current Projection Legislative Limit 2010-11 10.707% 8.250% 2011-12 10.923% 8.250% 2012-13 11.417% 8.250% 2013-14 11.442% 8.250% 2014-15 11.771% 8.880% 2015-16 11.847% 10.730% 2016-17 13.888% 12.580% 2017-18 15.532% 14.430% 2018-19 18.062% 16.280% 2019-20 19.721% 17.100% 2020-21 22.800% 18.400% 2021-22 24.900% 18.100% 2022-23 25.900% 18.100% 2023-24 26.600% can increase by up to 1% per year 2024-25 27.000% to a maximum employer contribution rate of 20.25%; 2025-26 26.800% unfunded actuarial obligation to be 2026-27 26.700% eliminated by 2046 First Interim – December 11, 2019

18 HEALTH CARE Health Benefits Costs 2016-17 $5,201,486 2017-18 $6,109,605 2018-19 $6,999,664 2019-20* $7,473,308 *projected at first interim . First Interim – December 11, 2019

19 SPECIAL EDUCATION Revenue Expense 2016-17 $4,813,147 $17,915,974 2017-18 $4,960,701 $19,253,987 2018-19 $6,328,070 $22,601,161 2019-20* $6,425,146 $23,954,604 *projected at first interim . First Interim – December 11, 2019

20 LCFF GROWTH / COST INCREASES First Interim – December 11, 2019

21 COLA Projected Projected COLA CPI 2019-20 3.26% 3.33% 2020-21 3.00%* 3.14% 2021-22 2.80%* 3.02% 2022-23 3.16%* 3.13% *The LAO’s most recent projection reduces 2020 -21 COLA to 1.79% and notes that the 20-year average COLA is 2.7% and that the consensus forecast by Moody’s Analytics sets the COLA at around 1.2% after 2020-21. First Interim – December 11, 2019

22 MEASURE MB FUNDED POSITIONS Fiscal Certificated Year Revenue Positions Salary Benefits 2018-19 $2,448,736 27 $1,816,208 $575,600 2019-20 $2,436,330 23.5 $1,773,212 $663,118 This anticipated revenue allowed the district to delay plans to reduce more than 65 positions beginning in 2018-19. First Interim – December 11, 2019

23 EXPENDITURE REDUCTIONS Previously budgeted reductions • The district’s professional development budget was reduced by nearly $260,000 • The district’s instructional materials budget was reduced by $400,000 • The district’s technology budget was reduced by just over $400,000 (reducing the technology replacement budget by over $315,000 and ongoing services by nearly $100,000) • The district’s legal services budget was reduced by almost $135,000 • The district’s overtime budget was reduced by nearly $120,000 • The district’s budgets for other departments was reduced by approximately $75,000 First Interim – December 11, 2019

24 EXPENDITURE REDUCTIONS Fiscal Year Amount 2020-21 $3,949,274 2021-22 $3,601,474 Note: additional reductions would be needed in subsequent years; current estimates place additional 2022-23 reductions at $1.5 million First Interim – December 11, 2019

25 MULTI-YEAR PROJECTION 2018-19 2019-20 2020-21 2021-22 Beg Balance $11,149,419 $8,324,150 $4,206,901 ($1,282,700) Revenues $85,707,344 $85,578,231 $86,345,472 $85,831,491 Expenses $88,558,943 $89,695,480 $91,835,072 $93,557,396 Net Inc/(Dec) ($2,851,599) ($4,117,249) ($5,489,600) ($7,725,902) Ending Bal $8,324,150 $4,206,901 ($1,282,700) ($9,008,602) Undesignated $1,276,290 $1,089,412 ($4,067,752) ($11,845,323) Ending Bal. First Interim – December 11, 2019

26 MULTI-YEAR PROJECTION 2018-19 2019-20 2020-21 2021-22 Beg Balance $11,149,419 $8,324,150 $4,206,901 $2,685,629 Revenues $85,707,344 $85,578,231 $86,345,472 $85,831,491 Expenses $88,558,943 $89,695,480 $87,866,744 $85,887,511 Net Inc/(Dec) ($2,851,599) ($4,117,249) ($1,521,272) ($56,020) Ending Bal $8,324,150 $4,206,901 $2,685,629 $2,629,609 Undesignated $1,276,290 $1,089,412 $19,626 $22,984 Ending Bal. Note: projections based on anticipated reductions in 2020-21 and 2021-22 First Interim – December 11, 2019