FREMONT UNIFIED SCHOOL DISTRICT Educate Challenge Inspire BUDGET - PowerPoint PPT Presentation

FREMONT UNIFIED SCHOOL DISTRICT Educate • Challenge • Inspire BUDGET UPDATE DIVISION OF BUSINESS SERVICES MARCH 8, 2017 – BOARD OF EDUCATION MEETING

Review of First Interim Budget 2 Report 2016-17 Actual Revised Projected Projected Projected 2015-16 2016-17 2017-18 2018-19 2019-20 Revenues $337.4 $339.6 $346.2 $356.4 $378.8 Less: Expenditures 321.6 351.9 366.5 366.2 380.3 Revenue Enhancement/ (16.8) (11.2) (3.7) Expenditure Reduction =Surplus/(Deficit) $15.8 ($12.3) ($3.5) $1.4 $2.2 Add: Beginning Fund 33.1 48.9 36.5 33.0 34.4 Balance =Ending Fund Balance $48.9 $36.5 $33.0 $34.4 $36.6 Less: Designation 35.3 29.3 18.9 20.1 21.3 =Reserve ($) $13.6 $7.2 $14.1 $14.3 $15.3 =Reserve (%) 4.22% 2.05% 4.03% 4.03% 4.05% In order to maintain a 4.0% reserve, FUSD needs to reduce its expenditures and/or enhance it revenues by $16.8 million

Review of State Budget Proposal 3 for 2017-18 New Dollars Per Pupil From LCFF $400 $6.5 $5.4 million $353 million $345 $350 reduction increase $299 $290 $300 $267 $256 $250 $200 $150 $99 $100 $76 $50 $0 2016-17 2017-18 2018-19 2019-20 2016-17 Budget Act 2017-18 Budget Proposal

Pension Contribution 4 (in millions) STRS PERS 2013 2014 2015 2016 2017 2018 2019 2020 2013 2014 2015 2016 2017 2018 2019 2020 8.25% 8.88% 10.73% 12.58% 14.43% 16.28% 18.13% 19.10% 11.44% 11.77% 11.85% 13.89% 15.80% 17.70% 19.70% 21.10% Incr. % 0.63% 1.85% 1.85% 1.85% 1.85% 1.85% 0.97% Incr. % 0.33% 0.08% 2.04% 1.91% 1.90% 2.00% 1.40% Incr. $ $1.04 $4.54 $8.33 $12.06 $15.91 $19.87 $22.15 Incr. $ $0.17 $0.24 $1.53 $2.77 $4.04 $5.42 $6.43 32-year average = $23.7 million per year 32-year average = $7.0 million per year

Changes in Revenue and 5 Expenditures Description 2016-17 2017-18 2018-19 2019-20 One-time $1,661,000 $0 $0 discretionary fund LCFF 2016-17 245,000 245,000 245,000 245,000 LCFF 2017-18 (6,546,000) (6,546,000) (6,546,000) LCFF 2018-19 5,379,000 5,379,000 LCFF 2019-20 297,000 Net Change in $245,000 ($4,640,000) ($922,000) ($625,000) Revenues Description 2016-17 2017-18 2018-19 2019-20 2% Salary adjustment $540,000 $551,000 $558,000 $565,000 for SEIU 2% Salary adjustment 782,000 795,000 805,000 816,000 for CSEA Net Change in $1,322,000 $1,346,000 $1,363,000 $1,381,000 Expenditures

Revised Multi-Year Budget 6 Projection (including State Budget Proposal) Actual Revised Projected Projected Projected 2015-16 2016-17 2017-18 2018-19 2019-20 Revenues $337.4 $339.6 $346.2 $356.4 $378.8 Add: Changes in Revenues 0.0 0.2 (4.6) (0.9) (0.6) Total Revenues $337.4 $339.8 $341.6 $355.5 $378.2 Expenditures 321.6 351.9 366.5 366.2 380.3 Add: Changes in Expenditures 0.00 1.3 1.3 1.4 1.4 Less: Expenditure Reductions 0.0 0.0 (23.3) (13.6) (5.6) Total Expenditures $321.6 $353.2 $344.5 $353.9 $376.1 =Surplus/(Deficit) $15.8 ($13.4) ($3.0) $1.5 $2.1 Add: Beginning Fund Balance 33.1 48.9 35.5 32.5 34.0 =Ending Fund Balance $48.9 $35.5 $32.5 $34.0 $36.1 Less: Designation 35.3 27.7 18.7 19.8 21.0 =Reserve ($) $13.6 $7.9 $13.8 $14.2 $15.1 =Reserve (%) 4.22% 2.24% 4.00% 4.00% 4.00% In order to maintain a 4.0% reserve, FUSD needs to reduce its expenditures by $23.3 million

Proposed Expenditure Reductions 7 Description 2017-18 2018-19 2019-20 Increase class sizes at TK-2 to 25 students $2,141,000 $2,677,000 $2,855,000 Postpone technology device refresh 500,000 500,000 500,000 Reduce contribution to RRM 600,000 600,000 600,000 Savings from reorganization in the Instructional 268,000 268,000 268,000 Services Division Eliminate CTE allocation to school sites 100,000 100,000 100,000 Postpone textbook adoption 2,400,000 0 1,500,000 Reduce 1.0 FTE Staff Secretary 3 in IT Dept. 81,000 81,000 81,000 Reduce 1.0 FTE Accounting Technician 2 in 95,000 95,000 95,000 Budget Dept. Reduce 1.0 FTE Personnel Assistant 1 in HR Dept. 68,000 68,000 68,000 Reduce 2.0 FTE Elementary Assistant Principals 313,000 313,000 313,000

Proposed Expenditure Reductions 8 Description 2017-18 2018-19 2019-20 Reduce 0.5 FTE Administrative Secretary in the $48,000 $48,000 $48,000 Superintendent Office Eliminate Affordable Care Act (ACA) penalty 500,000 500,000 500,000 Use EEBG to fund Teacher Induction Program 750,000 0 0 and PAR for additional year Reduce 1.0 FTE Teacher on Special Assignment (GATE Service Specialist) in the Curriculum and 71,000 71,000 71,000 Instruction Department Total Recommended Expenditure $7,935,000 $5,321,000 $6,999,000 Reductions

Other Recommended Budget 9 Solutions Description 2017-18 2018-19 2019-20 One-time discretionary fund (prior year balance) $9,587,000 $0 $0 One-time discretionary fund (current year) 1,661,000 0 0 Career Technical Education (prior year balance) 2,167,000 0 0 Career Technical Education (current year) 908,000 983,000 1,031,000 Adult Education fund balance 700,000 700,000 0 Total Other Recommended Budget $15,023,000 $1,683,000 $1,031,000 Solutions Summary Description 2017-18 2018-19 2019-20 Expenditure reductions $7,935,000 $5,321,000 $6,999,000 Other budget solutions 15,023,000 1,683,000 1,031,000 Total Expenditure Reductions and Other $22,958,000 $7,004,000 $8,030,000 Budget Solutions

Revised Multi-Year Budget 10 Projection (including State Budget Proposal) Actual Revised Projected Projected Projected 2015-16 2016-17 2017-18 2018-19 2019-20 Revenues $337.4 $339.6 $346.2 $356.4 $378.8 Add: Changes in Revenues 0.0 0.2 (3.9) (0.2) (0.6) Total Revenues $337.4 $339.8 $342.2 $356.1 $378.2 Expenditures 321.6 351.9 366.5 366.2 380.3 Add: Changes in Expenditures 0.0 1.3 1.3 1.4 1.4 Less: Expenditure Reductions 0.0 (1.0) (7.9) (5.3) (7.0) Total Expenditures $321.6 $352.2 $359.9 $362.2 $374.7 =Surplus/(Deficit) $15.8 ($12.4) ($17.7) ($6.1) $3.5 Add: Beginning Fund Balance 33.1 48.9 36.5 18.8 12.7 =Ending Fund Balance $48.9 $36.5 $18.8 $12.7 $16.2 Less: Designation 35.3 27.7 4.4 4.5 4.7 =Reserve ($) $13.6 $8.9 $14.4 $8.2 $11.5 =Reserve (%) 4.22% 2.53% 4.01% 2.27% 3.08% By reducing expenditures by $7.9 million, not designating one-time discretionary fund, and designating 40% of the CTE fund balances, FUSD is projecting a reserve of 4.01% for 2017-18 and 2.27% and 3.08% in the succeeding years, respectively.

Other Budget Items for 11 Consideration  Transportation - fee for bus service for roundtrip transportation service for each child per year is $654, while the cost of providing the service is ~$1,900  After School Education and Safety Program (ASES) – City of Fremont as the fiscal agent  Class Ratio at Secondary Schools – currently at 27.0  Cafeteria Fund (Child Nutrition Services) – budget deficit due to low student participation and high labor cost  List of vacant positions