+ BUDGET ACT Manhattan Beach Unified School District 325 S. Peck Avenue Manhattan Beach, CA 90266 Phone: (310) 318-7345, x5900 Budget Act – June 17, 2020
2 MAY REVISION Governor’s Proposals for K-12 Education • LCFF Reduction • 10% reduction after the application of the 2.31% statutory cola • 90% of 102.31% • Net Impact – reduction from current levels by 7.61% • Special Education base rate enhancement by 15%, raising the level to $645/ADA • CalPERS/CalSTRS rate buydown – shift long-term investment to 2020-21 and 2021-22, creating a short- term 2% rate reduction • Federal Funding allocation • Cash Deferrals Budget Act – June 17, 2020
3 BUDGET ACT Governor’s Proposal Legislature’s Proposal • Applies COLA and then makes a • Applies COLA with no reduction 10% reduction $4.3 billion in additional deferrals • • 10% reduction reversed if Federal triggered if Federal assistance is assistance is provided by July 1 not provided by September 1 $2.9 billion in Federal CARES Act $2.9 billion in Federal CARES Act • • Funding allocated to Funding allocated to all districts Concentration Grant districts in proportion to their total LCFF Special Education funding funding • augmentation of $645 million Special Education funding • distributed based on ADA augmentation of $545 million • No ADA hold harmless distributed based existing AB 602 No instructional minutes distribution model • flexibility • Provides an ADA hold harmless and instructional minutes flexibility Budget Act – June 17, 2020
4 FLEXIBILITY MEASURES Proposed Flexibility Measures • Deferral exemptions • Exclusion of on-behalf payments from RRMA • Increase to inter-fund borrowing limits • Use of property sale proceeds for one-time general fund purposes • Extension of TK teacher credential requirement • Authorization of technology-based options to support special education students Flexibility Measures Not Included • Instructional day flexibility • Reduction of RRMA requirements • Flexibility for supplemental/concentration grant funds • Flexibility to sweep ending balances from categorical programs and restricted funds Budget Act – June 17, 2020
5 DEFERRALS Budget Act – June 17, 2020
6 2020-21 BUDGET PROJECTION 2019-20 2019-20 2020-21 2020-21 2020-21 prelim at second at second estimated Governor Legislature interim interim actuals Beg $8,253,454 $4,254,864 $8,253,454 $6,278,278 $6,278,278 Balance Revenues $85,983,758 $83,963,368 $84,608,491 $79,536,568 $82,724,721 Expenses $89,982,348 $85,617,834 $86,583,667 $84,525,567 $84,525,567 Net ($3,998,590) ($1,654,446) ($1,975,176) ($4,988,999) ($1,800,846) Inc/(Dec) Ending Bal $4,254,864 $2,600,418 $6,278,278 $1,289,279 $4,477,432 Undes $1,147,980 $1,883 $2,745,012 ($1,276,458) $1,911,665 Ending Bal Projections based on Board approved reductions. Budget Act – June 17, 2020
POTENTIAL REDUCTIONS – 7 COVID-19 RELATED Impacted programs: Classroom Support • Extended Day Program • Food and Nutrition Services • Physical Education/Athletics • Playground Support • School Office Support • Budget Act – June 17, 2020
POTENTIAL REDUCTIONS – 8 BUDGET REDUCTIONS With an August Layoff Window Additional Potential Reductions Assistant Principal(s) Additional Library Resource • • Additional Counselors Specialist(s) • Additional Class Size Increases PE Assistant(s) • • Additional Elementary Music School Site Clerical • • Additional Elementary PE District Office Clerical • • Additional Reading Specialists Additional Classified Reductions • • Additional Zero Period • Reductions (Estimated Savings - $1.7 Million) (Estimated Savings - $700,000) Potential total reduction needed: $1.3 Million Budget Act – June 17, 2020
9 NEXT STEPS • Identify areas for reduction to build into the budget • Adopt preliminary budget • Initiate staffing reductions • Monitor state budget development process • Explore possible parcel tax measure • Present 45-day Revision • Present Subsequent Revision, if needed • Begin planning for 2021-22 – additional reductions and/or revenue enhancements will be needed Budget Act – June 17, 2020
+ BUDGET ACT Manhattan Beach Unified School District 325 S. Peck Avenue Manhattan Beach, CA 90266 Phone: (310) 318-7345, x5900 Budget Act – June 17, 2020
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