+ BUDGET WORKSHOP 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 Budget Workshop - January 15, 2020
2 BUDGET WORKSHOP FORMAT • Budget Report • Governor’s Budget Update • Possible Reductions • Timeline • Open Workshop Discussion Budget Workshop – January 15, 2020
3 GUIDING QUESTIONS • Questions/comments about the budget • Ongoing revenue generating ideas • Program reductions that would most significantly alter the MBUSD experience • What have we missed? Budget Workshop – January 15, 2020
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 Budget Workshop - January 15, 2020
5 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 Budget Workshop - January 15, 2020
6 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% Budget Workshop - January 15, 2020
+ 7 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 Budget Workshop - January 15, 2020
+ 8 MBUSD’S BUDGET Local Funding ◼ $225 per parcel ◼ 12,879 taxable parcels ◼ 13.9% exemption rate ◼ $2.49 million in local revenue from 2018-19 through 2023-24 ◼ 27 teaching positions in 2018-19; 23.5 positions in 2019-20 Budget Workshop - January 15, 2020
+ 9 MBUSD’S BUDGET Local Funding – Other Key Partners In 2018-19 ◼ The City of Manhattan Beach contributed $788,455.50 through the Shared Use Agreement for the use of MBUSD fields and facilities ◼ PTA’s/PTSA’s contributed $707,803.29 to support site -specific projects ◼ MBX contributed $92,250.41 to support athletic and extra curricular activities, plus incredible School Connected Organization support ◼ Chevron, Skechers, and other local partners generously support the schools through MBEF and other grant programs Budget Workshop - January 15, 2020
10 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 Budget Workshop - January 15, 2020
11 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 . Budget Workshop - January 15, 2020
12 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 . Budget Workshop - January 15, 2020
13 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% Budget Workshop - January 15, 2020
14 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% Budget Workshop - January 15, 2020
15 LCFF GROWTH / COST INCREASES Budget Workshop - January 15, 2020
16 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. Budget Workshop - January 15, 2020
17 EXPENDITURE REDUCTIONS Fiscal Year Amount 2020-21 $3,949,274 2021-22 $3,601,474 Note: additional reductions would be needed in subsequent years; first interim estimates place additional 2022-23 reductions at $1.5 million Budget Workshop - January 15, 2020
18 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 Budget Workshop - January 15, 2020
19 MULTI-YEAR PROJECTION ENDING FUND BALANCE $9,000,000 $8,000,000 $7,000,000 3-Year Escrow $6,000,000 Restricted $5,000,000 REU (5%) $4,000,000 REU (3%) $3,000,000 Undesignated Amount $2,000,000 $1,000,000 $- 2018-19 2019-20 2020-21 2021-22 Budget Workshop - January 15, 2020
20 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 Budget Workshop - January 15, 2020
21 COLA First Current Projected Interim Projection* CPI 2019-20 3.26% 3.26% 3.33% 2020-21 3.00% 2.29% 3.14% 2021-22 2.80% 2.71% 3.02% 2022-23 3.16% 2.82% 3.13% *Based on the Governor’s January Budget Proposal Budget Workshop - January 15, 2020
22 LCFF First Current Difference Interim Projection* $56,553,075 $56,553,075 2019-20 2020-21 $57,852,074 $57,472,365 ($379,709) $57,330,081 $57,282,277 ($47,804) 2021-22 2022-23 $57,647,685 $57,460,408 ($187,277) *Based on the Governor’s January Budget Proposal Budget Workshop - January 15, 2020
23 SPECIAL EDUCATION • For 2019-20, the state invested an additional $152.6 million in Special Education, which brought all SELPAs to the statewide target rate for base special education funding, approximately $557 per ADA • For 2020-21, the Governor proposes increasing the amount of General Fund revenue put towards Special education by 15%. • Early estimates are that this will bring funding to the 90 th percentile and will bring the per-ADA funding rate to somewhere between $640 and $680 • This will likely bring additional revenue to MBUSD, but it is too early to know what the estimated budget will be. Budget Workshop - January 15, 2020
24 OTHER PROPOSALS • Funding for students with disabilities age 3-5 will be less ($250 million statewide, as compared with $493 million in 2019-20) and may be more restricted • Other proposals create prescriptive, almost “categorical” funding streams for very specific purposes • The proposal focuses on maintaining 2019-20s commitment to pension relief, with no additional investment • The proposal does not include any new funds for education outside of Proposition 98 • Legislators are focused on pension relief, mental health, special education reform, low performing subgroups, and LCFF targets. • Education related ballot measures will include a new school facilities bond and the Schools and Communities First initiative. Budget Workshop - January 15, 2020
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