2020-2021 FINAL BUDG ET Special Meeting of the Board of School - PowerPoint PPT Presentation

2020-2021 FINAL BUDGET 2020-2021 FINAL BUDG ET Special Meeting of the Board of School Trustees May 18, 2020 Jason Goudie Chief Financial Officer Jason Goudie Reference 4.02(A) Page 1 of 19 May 18, 2020

2020-2021 FINAL BUDGET 2020-2021 Timeline Uncertainties State Funding Total Per Pupil Revenues Student Enrollment and DSA Where the Money Comes From General Operating Revenues O VERVIEW Revenue: State Projections and Assumptions Where the Money is Spent Where Special Education Fund Money is Spent Final Budget Comparison Fund Balance Comparison Unassigned Ending Fund Balance Employee Contracts Status Reference 4.02(A) Page 2 of 19

2020-2021 FINAL BUDGET 2020-2021 TIMELINE Fiscal Year 2021 Adoption Begins Adoption Departments directed to Amended Final Tentative Budget (TB) July 1, 2020 Final Budget (FB) provide flat budgets Budget (AFB) Regular Board Session May 18, 2020 December 10, 2020 April 23, 2020 January April June July September December May Final Budget Tentative Budget Amended Final Submission required by Submission required by Budget Strategic Budget June 8 to Nevada April 15 to Nevada Strategic Budget Submission required Workbooks Department of Taxation Department of Taxation Workbooks by January 1, Provided to schools on Updated with actual 2021, to Nevada January 15 based on enrollment figures Department of projected enrollment Taxation Reference 4.02(A) Page 3 of 19

2020-2021 FINAL BUDGET UNCERTAINTIES  Coronavirus Disease 2019 (COVID-19) fiscal impacts  Possible recession impacts  Enrollment uncertainties  State of Nevada funding reductions to K-12 education  Senate Bill (SB) 551 court case related to legality of SB551 (State of Nevada’s plan was to fund this from “Rainy Day” fund if Supreme Court ruled SB511 was not legal)  Amount of reimbursement and additional disaster funding from the federal government Reference 4.02(A) Page 4 of 19

2020-2021 FINAL BUDGET STATE FUNDING (General Operating Fund) Basic Guaranteed Support - Distributive School Account (DSA) +$286 +$71 $6,100 $6,138 $6,067 $5,900 +$81 +$126 $5,700 $5,781 +$62 $5,700 +$200 +$70 -$15 $5,500 $5,574 $5,527 $5,512 $5,457 $5,300 +$121 $5,257 +$101 $5,100 +$73 $5,136 +$4 +$67 $5,035 +$402 $4,900 $4,958 $4,962 $4,891 $4,700 +$204 $4,500 $4,489 $4,300 Reference 4.02(A) Page 5 of 19

2020-2021 FINAL BUDGET TOTAL PER PUPIL REVENUES (General Operating Fund) $9,000 Total Total $7,755 $7,712 Total $8,000 Total $7,384 $7,247 Total Total Total Total Total Total $6,830 $1,172 $1,213 Total $6,710 $7,000 $6,655 Total Total $6,567 $6,574 $6,541 Total $1,197 $6,435 $1,163 $6,303 $6,288 $6,205 $907 $445 $431 $943 $886 $877 $6,000 $406 $817 $384 $1,375 $1,346 $917 $1,330 $348 $938 $243 $256 $239 $229 $235 $231 $234 $234 $5,000 $214 $4,000 $6,138 $6,067 $3,000 $5,781 $5,700 $5,574 $5,527 $5,512 $5,457 $5,257 $5,136 $5,035 $4,958 $4,962 $4,891 $2,000 $1,000 $ ‐ 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Amended Final Final Budget Budget Local Funding Outside of DSA primarily are revenues from local school support tax, property tax, governmental services tax, donations, other miscellaneous revenues . Does not include “Other Financing Sources,” which primarily are proceeds from bond issuances and transfers-in. Reference 4.02(A) Page 6 of 19

2020-2021 FINAL BUDGET STUDENT ENROLLMENT AND DSA 330,000 328,000 Average ADE = 321,099 Average ADE = 319,033 326,000 324,000 Average ADE = 316,550* Average ADE = 315,296* 321,805 322,000 321,695 321,586 319,967 320,000 319,311 319,252 319,054 317,858 317,506 318,000 317,084 316,927 316,205 315,474 315,337 316,000 314,684 314,168 314,000 312,000 310,000 308,000 306,000 304,000 ADE = Average Daily Enrollment 302,000 $5,781 $6,138 $5,700 $6,067 ( * Projected) 300,000 FY19 FY19 FY19 FY19 FY21 FY21 FY21 FY21 FY18 FY18 FY18 FY18 FY20 FY20 FY20 FY20 Q1 Q2 Q3 Q4 Q1* Q2* Q3* Q4* Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4* Reference 4.02(A) Page 7 of 19

2020-2021 FINAL BUDGET Where the Money Comes From General Operating Fund Revenues (in millions) FY 2020 General Fund Local School Support Tax (LSST) Ending Fund Balance (in millions) 1200 $240.4 million includes unassigned 1000 balance of $48.6 million. 800 600 2011 2013 2015 2017 2019 2021 Budget LSST $961.4 (A) (1/3) Property Tax 38.8% (B) $190.5 $571.5 (2/3) 7.7% $381.0 Other DSA 23.0% 15.4% $141.2 $806.1 (C) 5.7% 32.5% Basic Support Guarantee: Support per Student $1,922.5 ( $6,138x313,205 ) Property Tax (in millions) Est. Special Education 140.2 Support Guarantee $2,062.7 Less: LSST 961.4 (A) Less: 1/3 Property Tax 190.5 (B) Less: Budget Reserve (COVID-19) 41.9 Less: Charter Adjustments 63.0 Distributive School Account $ 806.1 (C) 2010 2013 2017 2019 2021 Budget Reference 4.02(A) Page 8 of 19

2020-2021 FINAL BUDGET GENERAL OPERATING REVENUES Description TB FY 2021 FB FY 2021 Change Comments Local School Support Tax $1,091,710,000 $961,361,000 ($130,349,000) See slide "Revenue: State Projections and Assumption" Ad Valorem (Property) Tax 552,442,000 571,511,000 19,069,000 See slide "Revenue: State Projections and Assumption" Governmental Services Tax 82,821,000 74,194,000 (8,627,000) See slide "Revenue: State Projections and Assumption" Two Percent Franchise Tax 4,680,000 4,680,000 0 3-year average of $4.7 million E-Rate Reimbursements 3,230,000 3,230,000 0 3-year average of $3.2 million Local Government Taxes 1,380,000 1,380,000 0 3-year average of $1.5 million Tuition And Summer School 3,120,000 3,120,000 0 3-year average of $3.1 million Adult Education 150,000 150,000 0 3-year average of $0.2 million Athletic Proceeds 1,120,000 1,120,000 0 3-year average of $1.1 million Services Provided 1,660,000 1,660,000 0 3-year average of $1.6 million Donations And Grants 3-year average of $1.1 million (less: school generated 1,050,000 1,050,000 0 funding was moved to Student Activities Fund) Other Local Sources 9,590,000 9,590,000 0 3-year average of $9.4 million Interest Income 3,660,000 3,660,000 0 3-year average of $4.5 million Total Local Sources 1,756,613,000 1,636,706,000 (119,907,000) State Distributive Fund 723,945,000 806,072,000 82,127,000 See slide "Revenue: State Projections and Assumption" Total State Sources 723,945,000 806,072,000 82,127,000 Federal Impact Aid 140,000 140,000 0 3-year average of $0.1 million Forest Reserve 70,000 70,000 0 3-year average of $0.1 million Administrative Claiming 1,170,000 1,170,000 0 3-year average of $1.2 million Total Federal Sources 1,380,000 1,380,000 0 Sales Of District Property 950,000 950,000 0 3-year average of $1.0 million Total Other Sources 950,000 950,000 0 Total Operating Revenues $2,482,888,000 $2,445,108,000 ($37,780,000) Reference 4.02(A) Page 9 of 19

2020-2021 FINAL BUDGET REVENUE: STATE PROJECTIONS AND ASSUMPTIONS Local School Support Tax (LSST) Final Budget (FB) FY 2021 = $ 961,361,000 Tentative Budget FY 2021 = $1,091,710,000 Less Revenue = ( $ 130,349,000) FY 2021 FB based on Nevada Department of Taxation’s FY 2021 Final Local Government Revenue Projection. In addition, an 11.5 percent reduction was applied to Nevada Department of Taxation’s FY 2021 Final Local Government Revenue Projection, due to FY 2021 LSST projection being issued prior to the COVID-19 state of emergency. The 11.5 percent reduction aligns CCSD with the same impact experienced during the Great Recession and decreased LSST by $125 million , which per Nevada’s K-12 funding plan this revenue loss will go as additional DSA funding, for a net revenue impact of $0 . Property Tax Final Budget FY 2021 = $ 571,511,000 Tentative Budget FY 2021 = $ 552,442,000 Additional Revenue = $ 19,069,000 FY 2021 FB based on Nevada Department of Taxation’s FY 2021 Proforma Ad Valorem Revenue Projections. There was a significant change to General Cap Rate for Tax Cap Factors, the Moving Average Growth Rate for CCSD was 4.6 percent in FY 2020 and increased to 6.7 percent for FY 2021. Reference 4.02(A) Page 10 of 19

2020-2021 FINAL BUDGET REVENUE: STATE PROJECTIONS AND ASSUMPTIONS (CONTINUED) Governmental Services Tax Final Budget FY 2021 = $ 74,194,000 Tentative Budget FY 2021 = $ 82,821,000 Less Revenue = ( $ 8,627,000) FY 2021 FB based on Nevada Department of Taxation’s FY 2021 Final Local Government Revenue Projection and applying a 10 percent reduction due to FY 2021 GST projection being issued prior to the COVID-19 state of emergency. The 10 percent reduction from the Nevada Department of Taxation’s FY 2021 GST projection aligns CCSD with the same impact experienced during the Great Recession. Distributive School Account Final Budget FY 2021 = $ 806,072,000 Tentative Budget FY 2021 = $ 723,935,000 Additional Revenue = $ 82,127,000 DSA funding is based on General Fund DSA changing, one-third of the $19.1 million property tax increase will decrease DSA by $6.3 million, COVID-19 budget reduction of $41.9 million (72 percent of $58.2 million), and LSST will decrease by $130.3 million, which is an increase to DSA. Due to net adjustments, the General Fund DSA revenue decreased by $82.1 million. Special Education Fund DSA is projected to remain the same at $140.2 million. Reference 4.02(A) Page 11 of 19