2020-21 Proposed Budget Adoption June 15, 2020 1 Timeline for - PowerPoint PPT Presentation

2020-21 Proposed Budget Adoption June 15, 2020 1

Timeline for Updating the District’s Budget  Not later than 45 days after the  March – The Second Interim Governor signs the annual Budget report will be presented at the Act , the school district shall make public board meeting in March of available for public review any each year. This report will include revisions in revenues and any changes made to the budget expenditures that it has made to its since the First Interim report was budget to reflect the funding made presented in December. available by the Budget Act. (EC 42127(i)(4)).  December – The First Interim  September – The Unaudited report will be presented at the public Actuals report will be presented at board meeting in December of each the public board meeting in year. This report will include any September of each year. This changes made to the budget since the report will reflect the actual budget adoption in June, including revenue and expenditures of the those reported 45 days after the district for the previous budget Governor signed the annual Budget year. Act. 2

Gold Oak USD Local Control Funding Formula (LCFF) Local Control Funding Formula 2019-20 2020-21 2021-22 2022-23 LCFF - 2nd Interim $ 4,215,911 $ 4,240,358 $ 4,369,120 $ 4,485,823 LCFF - May Revise $ 4,211,430 $ 3,853,448 $ 3,813,715 $ 3,814,182 3 Difference $ (4,481) $ (386,910) $ (555,405) $ (671,641)

Now… Some Hopeful News • On May 28, 2020, the Senate Budget and Fiscal Review Committee met and adopted the Senate budget plan for the 2020-21 State Budget that rejects almost all of Governor Newsom’s proposed education reductions! • However, school districts will not know the outcome until AFTER our budget adoptions. • Therefore, districts’ must plan for the reductions. 4

More Hopeful News • On June 3, 2020 the Senate and Assembly reached an agreement on the 2020-21 State Budget to close the projected budget shortfall of $54 billion by anticipating $14 billion in additional federal fund support with trigger reductions in the event funds do not materialize, and utilizing $11.8 billion in state reserves. • The plan rejects the Governor’s May revise proposal to reduce Proposition 98 by $8.1 billion, which consists of the 10 percent reduction to the Local Control Funding Formula (LCFF), loss of cost of living adjustment, and reductions to various categorical programs. • Legislative leaders and Governor Newsom are expected to begin negotiations shortly. • The district will provide updates as soon as possible. 5

2019-20 Budget Update 2019-20 Difference Between 2nd 2019-20 Object Codes 2nd Interim Budget Interim & Estimated Actuals Estimated Actuals (June) (As of 05/29/2020) Unrestricted Restricted Unrestricted Restricted Total Adjustments Adjustments Unrestricted Restricted Total Revenue LCFF Funding Sources 8010-8099 4,195,911 - 4,195,911 (4,480) - 4,191,431 - 4,191,431 Federal Revenue 8100-8299 - 177,941 177,941 6,000 (38,884) 6,000 139,057 145,057 State Revenue 159,192 218,940 378,132 (7) 7,678 159,185 226,618 385,803 8300-8599 Local Revenue 8600-8799 166,002 112,804 278,806 (5,534) (2,545) 160,468 110,259 270,727 Total Revenues 4,521,105 509,684 5,030,789 (4,021) (33,751) 4,517,084 475,933 4,993,017 Expenditures Certificated Salaries 1,741,499 246,930 1,988,429 (15,675) (17,023) 1,725,824 229,906 1,955,731 1000-1999 Classified Salaries 686,314 182,285 868,599 (15,736) (5,785) 670,578 176,500 847,078 2000-2999 Employee Benefits 3000-3999 1,113,565 322,580 1,436,145 (15,292) (8,238) 1,098,273 314,343 1,412,616 Books and Supplies 118,736 81,075 199,811 685 (13,468) 119,421 67,607 187,028 4000-4999 Services and Operating Expenses 381,138 170,805 551,943 (7,902) (22,067) 373,236 148,739 521,974 5000-5999 Capital Outlay 35,205 28,609 63,813 - - 35,205 28,609 63,813 6000-6999 7100-7299 Other Outgo 21,071 18,284 39,355 (4,481) 16,590 18,284 34,874 7400-7499 - Transfers of indirect/direct support costs (101,345) 92,345 (9,000) 5,535 (5,535) (95,810) 86,810 (9,000) 7300-7399 Total Expenditures 3,996,182 1,142,914 5,139,095 (52,866) (72,116) 3,943,316 1,070,798 5,014,114 Revenue Less Expenditures 524,924 (633,230) (108,306) 48,844 38,365 573,768 (594,864) (21,096) Other Financing Sources/Uses Transfers In/Other Sources - - 8900-8929 Transfers Out/Uses 37,621 37,621 - - 37,621 37,621 7600-7629 Contributions (539,448) 539,448 - 11,179 (11,179) (528,269) 528,269 - 8980-8999 Total Other Sources/uses (577,069) 539,448 (37,621) 11,179 (11,179) (565,890) 528,269 (37,621) Net Inc/Dcr to Fund Balance (52,145) (93,782) (145,927) 60,024 27,186 7,878 (66,596) (58,718) Beginning Balance 452,340 200,645 652,985 - - 452,340 200,645 652,985 Ending Balance 400,194 106,863 507,058 60,024 27,186 460,218 134,049 594,267 Comp of Ending Fund Bals Non-Spendable Revolving Cash 1,625 1,625 - - 1,625 1,625 Stores - - - - Legally Restricted 106,863 106,863 - 27,186 134,049 134,049 Assigned 191,501 191,501 65,023 - 256,524 256,524 Unassigned - - E.U.R 207,069 207,069 (4,999) - 202,069 202,069 Unassigned/District Reserves - - - - - - - - 6 State Mandated EUR 4.00% 4.00% District/State Mandated EUR 7.70% 9.08%

ADA Assumptions ADA Assumptions 2019/20 2020/21 2021/22 2022/23 Estimated Enrollment 469 438 472 466 Estimated P-2 ADA 445.09 409.18 440.93 435.33 LCFF Funded ADA Estimate 447.76 445.09 440.93 440.93 Percent ADA to Enrollment 94.90% 93.42% 93.42% 93.42% Funding Based on… Prior Year Prior Year Current Yr Prior Year 7

Budget Assumptions – Statutory Benefits Benefit Rates 2019-20 2020-21 2021-22 2022-23 STRS 17.10% 16.15% 16.02% 18.10% PERS 19.721% 20.70% 22.84% 25.50% OASDI 6.2% 6.2% 6.2% 6.2% SUI 0.05% 0.05% 0.05% 0.05% Worker's Comp 1.414% 1.441% 1.441% 1.441% Medicare 1.45% 1.45% 1.45% 1.45% Certificated Total 20.014% 19.091% 18.961% 21.041% Classified Total 28.835% 29.841% 31.981% 34.641% 8

STRS/PERS Employer Rates • STRS Decrease over 2019/20 = $-35,761 • PERS Increase over 2019/20 = $14,143 9

2020-21 Revenue Assumptions 2020-21 Revenue adjustments since 2 nd Interim • • Local Control Funding Formula: -$386,910 • Federal Revenue: $106,710 – One-Time - Elem.& Secondary School Emergency Relief Funds (ESSER): $51,303 – Federal Special Education: $5,514 – Forest Reserve Funding: $6,000 (Estimated) – Title I Funding: $13,500 (Carryover) – Title II-A: $11,580 (Carryover) – Title IV: $1,135 (Carryover) – REAP: $17,677 (Carryover) 10

Revenue Adjustments State Revenue Adjustments: Local Revenue Adjustments: $1,085 $1,296 Transportation Fees $-2,000 Mental Health: $-21 Interagency Contracts: $693 Mandated Block Grant: $-136 E-Rate Credits: $928 Lottery: $1,242 Music Donations: $-800 Local Donations: $-8 Special Education: $2,483 11

Reductions (Included in Proposed Budget) Changes/Reductions included in the 2020-21 Proposed Budget Decreases Increases Net Savings Employee on leave from K-5 Teacher position $ 83,746 $ 83,746 Attrition and Staffing Changes RSP Teacher Resigns 1.0 FTE $ 85,561 RSP Teacher Assigned 1.0 FTE Sp. Ed position $ 73,027 $ 12,534 RSP Teacher Vacates .50 FTE position $ 37,105 Potential need for .20 FTE Sp. Ed $ 16,749 $ 20,356 PE Teacher Resigns $ 113,555 Retiree Health Benefits $ 6,900 PE Position - OPEN (Estimate) $ 86,103 $ 20,552 M&O Vehicle Stipend $ 1,965 $ 1,965 Minimum Wage increase (Classified) $ 7,176 ($7,176) One-on-one Aide Contract $ 35,910 $ 35,910 $ 357,841 $ 189,955 $ 167,886 12

Reductions (Included in Proposed Budget) Reductions included in the 2020-21 Proposed Budget Decreases Music Position - Reduction 1.0 FTE $ 86,044 Music Program Honor Band Stipend $ 1,310 Classroom Supplies allocation $ 250 Band Travel & Conference $ 500 Band - CMEA Cap. Section/Honor Band admission $ 55 $ 88,159 Superintendent Furlough Days $ 3,650 Furlough Days (5) Principal Furlough Days $ 3,224 CBO Furlough Days $ 3,474 $ 10,348 Summer Custodian ( Works June 2021 Only) $ 5,412 Behavior Support Hourly Stipends $ 303 Other Reduction of 1 Bus Route $ 18,000 Reduction of .20 FTE Technology Position $ 9,000 Athletics Program (2020-21 Only) $ 22,041 $ 54,756 13

Other Reductions (Not Included in Proposed Budget) Other Possible Reductions For the Future (NOT included in Proposed Budget) CBO Position - Cut 50% $ (79,842) Cost of .50 FTE Accountant (Estimate at Step 3) $ 39,224 Other Possible Reductions Difference $ (40,618) Plant Manager Position - Cut 50% $ (55,015) Cost of .50 FTE Custodian (Estimate at Step 5) $ 32,729 Cost of Contracting for Repairs Unknown ??? Difference $ (22,286) 14