2019/2020 Budget Update Board of Education Meeting September 5, - PowerPoint PPT Presentation

2019/2020 Budget Update Board of Education Meeting September 5, 2019

AGENDA  2019/2020 Adopted Budget  Summer Activity  Pending Budget Items  Proposed Revisions to the 2019/2020 Adopted Budget

2019/2020 Adopted Budget Adopted on June 6, 2019 • Assumptions included: – New state funding – Loss of student enrollment – Specific ownership tax increase – Interest revenue increase – 1.5% COLA – Steps/lanes/quartiles – PERA employer changes – 5A expenditures – Board directed new expenditures

2019/2020 Adopted Budget (cont’d) Adopted on June 6, 2019 • Assumptions included (cont’d) : – $3.5M use of reserves; IF ongoing funds could not be found during the year end analysis

Summer Activity • End of year work for preparation of audit • Salary accruals completed • Final receipts for property tax, specific ownership tax (SOT) • Interest (net of fees) recorded • Analysis of salary and benefit lines for any available ongoing funding • Negotiations with JCEA resumed Aug. 14 • CMAS test results released from the state

Summer Activity: Negotiations - JCEA • District team proposed for 2019/2020 – 2.5 percent COLA and – $3M for longevity pay • Ratified by association August 21, 2019 • Approved by the BOE August 22, 2019 • Total amount needed to cover pay increases = $9M

Summer Activity: Planning Time • Additional planning time for teachers in response to latest CMAS results • Recommend to expand teacher planning time for elementary through middle school. Total implementation need $500,000. – Recommendation includes using $132,000 from approved budget line for ERD on Educator Pathways and additional one-time funds from unassigned reserves $368,000

Budget Items to Resolve/Fund in 2019/2020 Revised Budget 1. Balance 2019/2020 Adopted Budget $3.5M 2. Fund additional costs from negotiations − 1% COLA and $3M longevity pay $9M 3. Fund one-time allocation to schools to increase teacher planning time $368,000

1. Balance 2019/2020 Adopted Budget • Ongoing salary savings identified from retirement and turnover and/or cost estimate variances. • $3.5M use of reserves not required, no further Board action needed for this issue 2019/2020 Adopted Budget Balanced

2. Fund Additional Costs from Negotiations • SOT continues to be higher than in past years – July 2019 receipts higher than July 2018 • Interest revenues higher than the prior year • Finance recommends increasing the assumptions for SOT by $8M and interest by $1M for the revised budget • Staff will closely monitor these assumptions in addition to the assumptions already included in the 2019/2020 Adopted Budget

2. Fund Additional Costs from Negotiations (cont’d) • Updates will be provided in the quarterly reports • Shortages will be noted and addressed for the next fiscal year, if necessary • Reserves are adequate to absorb any shortfalls in these estimates

3. Allocate One-time Funds to Schools for Additional Planning Time • $368,000 one-time, from unassigned reserves to be allocated to schools based on a formula: Example: A flat dollar amount that varies by grade levels and student population size, eligible to schools who implement additional planning time

2019/2020 PROPOSED REVISIONS REVENUE Revenue Assumptions Amount Revenue Sources – District (in millions) $21.7 State Funding Increase – Loss of Student Enrollment (250) (2.0) 1:1 Device Fees 1.1 5A Inflation 2.7% of $3M .8 State Categorical Tier B 2.0 Full Day Kindergarten (FDK) Funding 15.2 Reduction of Fees (FDK) (6.0) Interest Revenue 1.5 Specific Ownership Tax (local) 9.0 Total Additional Revenue $43.3 for 2019/2020

2019/2020 PROPOSED REVISIONS EXPENDITURE Expenditure Assumptions Amount Expenditure Description (in millions) PERA Changes (mandated) $1.3 Steps/Lanes/Quartiles & 2.5% COLA 35.2 Retirement/Turnover Savings (6.0) 5A Mill Levy Expenditures 14.9 (one-time and ongoing) 1:1 Device Support from Fees 1.1 Board Directed New Expenditures 4.1 (detail on slide 9) Student Success (Tier B) Support 2.0 SBB Full Day Kindergarten 9.2 School planning time expansion .4 Total New Expenditures $62.2

2019/2020 PROPOSED REVISIONS GENERAL FUND Reconciliation of Expenditures over Revenue Expenditures over Revenue $(5.0)  Spend down of 5A Reserves $(2.5)M  Spend down of School Carry Forward $(1.9)M  One time use of Unassigned Reserves for Schools to Expand Teacher Planning $(368,000)

2019/2020 PROPOSED REVISIONS Revised Budget Next Steps Consent agenda item for October 10, 2019 meeting to revise budget. Resolutions to be brought before the Board of Education as part of the 2019/2020 budget revision:  2019/2020 Budget Appropriation  2019/2020 Use of Fund Balance

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