FY 2019-2020 Proposed Budget Report June 4, 2019 1 Dramatically - PowerPoint PPT Presentation

FY 2019-2020 Proposed Budget Report June 4, 2019 1

Dramatically Improve Student LCAP Goal 1 LCAP Goal 2 Engagement High Level Academic Welcoming, Safe and Healthy and Preparation and College & Learning Environment Career Readiness Achievement Creating Every student Globally- Providing Safe Competitive leaves Ready and Affirming Learning for Success in School Environments Environment High School of High LCAP and Beyond: Intellectual College, Performance Career, the LCAP Goal 3 LCAP Goal 4 Global World Parent, Family and Community Partnership Basic Services-Williams Compliance Providing Strategic Engaging Direction for Families and School Sites Communities and Staff

The WHY of WHAT WE DO 3

Governor’s Budget Proposal – Key Items • Proposition 98 funding of $81.1 billion for 2019-20, an increase of $389.3 million relative to the funding level from the 2019-20 January Proposed Budget and $3.0 billion over the 2018-19 Adopted Budget. • Increased funding for the LCFF by $1.959 billion a decrease of $64 million from the January Proposed Budget. • Decrease in statutory COLA for 2019-20 from the January estimate of 3.46% to 3.26%. • Augmentation Grant to provide additional funding for grades K-3 Class Size Reduction (CSR) and 9-12 Career Technical Education (CTE). The CSR augmentation is 10.4 percent of the K-3 Base Grant, estimated at $801 per average daily attendance (ADA) for 2019-20. • The May Revise included $3.15 billion an increase of $150 million over the January Proposed Budget in non-Proposition 98 contribution to CalSTRS resulting in a decrease in the 2019-20 Employer Contribution rate. • One-time discretionary funds were not included in the January Proposed Budget or the May Revision. 4

Key Assumptions for PSD’s Proposed Budget • TPAA expansion into K-5 will occur in FY 2019-2020 • Projected enrollment will be 18,341 a decrease of 742 students from P2 enrollment • LCFF will be funded based on FY 2018-19 ADA with an adjustment for charter shift • COLA for FY 2019-2020 is 3.26% and no one-time discretionary funds are included • Expenditures associated with Special Education are a continuing concern due to encroachment on the general fund. • Expenditures will continue to increase due to rate increases (STRS, PERS, HW, etc.) as well as CPI • The district must budget conservatively in a deficit spending environment. 5

Enrollment and ADA A B (B-A) Estimated Actuals Proposed Budget 2018-19 P2 2019-20 Change Enrollment 19,083 18,341 -742 ADA 18,188.02 17,480.58 -707.4 The certified 2018-19 P2 report shows ADA of 18,188.02 corresponding to an enrollment of 19,083 using an enrollment to ADA factor of 95.3%. The proposed budget assumes a loss of 742 students in FY 2019-20 and a corresponding decrease in ADA of 707.44 6

Unrestricted Revenues A B (B-A) Estimated Actuals Proposed Budget 2018-19 2019-20 Change LCFF Sources 194,598,498 195,209,604 611,106 Federal Revenue 0 0 0 Other State Revenue 6,759,444 3,311,022 -3,448,422 Other Local Revenue 2,739,452 1,980,808 -758,644 Total Revenues 204,097,394 200,501,434 -3,595,960 The exclusion of one-time discretionary funds from the Governor’s budget is responsible for a decrease of $3.4 million in “Other State Revenue” from FY 2018-19 to FY 2019-20. 7

Unrestricted Expenditures A B (B-A) Estimated Actuals Proposed Budget 2018-19 2019-20 Change Certificated Salaries 58,380,086 57,181,224 -1,198,862 Classified Salaries 16,166,969 16,713,317 546,348 Benefits 35,865,794 37,265,596 1,399,802 Books and Supplies 6,357,846 10,000,419 3,642,573 Services 17,354,149 17,561,431 207,282 and Other Operating Expenditures Capital Outlay 4,367,019 286,422 -4,080,597 (Locally restricted funds for Tech) Other Outgoing -3,383,063 -1,696,699 1,686,364 Total Expenditures 135,108,800 137,311,710 2,202,910 The change in unrestricted expenditures from the FY 2018-19 Estimated Actuals to the FY 2019-20 Proposed Budget is $2.2 million. The impact of the FY 2019-20 STRS rate decrease of $817,692 is realized on the MYP in FY 2020-21. 8

Contributions to Restricted Resources A B (B-A) Estimated Actuals Proposed Budget 2018-19 2019-20 Change LCAP (Supplemental and Concentration Grants) 49,016,036 49,037,560 21,524 RRMA 4,940,000 4,940,000 0 Special Education 22,964,452 22,445,484 -518,968 Other Federal Prgms 198,156 194,966 -3,190 Resource 9500 (Saturday School Incentive) 40,956 0 -40,956 Total 77,159,600 76,618,010 -541,589 The contribution to restricted resources decreased by $541,589. 9

FY 2019-20 General Fund Revenues Other Local Revenue Revenue 7% Other State Revenue 4% LCFF Sources Federal Revenue 9% Federal Revenue LCFF Sources 80% Other State Revenue Other Local Revenue Proposed Budget Unrestricted Proposed Budget 2019-20 Restricted 2019-20 Total Fund LCFF Sources 195,209,604 0 195,209,604 Federal Revenue 0 21,126,946 21,126,946 Other State Revenue 3,311,022 6,022,965 9,333,987 Other Local Revenue 1,980,808 15,097,234 17,078,042 Total Revenues 200,501,434 42,247,145 242,748,579 10

FY 2019-20 General Fund Expenditures Capital Outlay Services Other Outgoing Excl Transfers of 1% 13% Indirect Costs Books and Supplies 0% 7% Certificated Salaries Certificated Salaries 38% Classified Salaries Benefits Benefits Books and Supplies 27% Services Classified Salaries 14% Capital Outlay Other Outgoing Excl Transfers of Indirect Costs Proposed Budget Unrestricted Proposed Budget 2019-20 Restricted 2019-20 Total Fund Certificated Salaries 57,181,224 41,883,114 99,064,338 Classified Salaries 16,713,317 20,879,507 37,592,824 Benefits 37,265,596 32,230,325 69,495,921 Books and Supplies 10,000,419 7,898,967 17,899,386 Services 17,561,431 15,425,408 32,986,839 Capital Outlay 286,422 1,429,747 1,716,169 Other Outgoing -1,696,699 1,330,852 -365,847 11 Total Expenditures 137,311,710 121,077,920 258,389,630

Revenues and Expenditures - Combined A B (B - A) FY 2018-19 FY 2019-20 Estimated Actuals Proposed Budget Change LCFF Sources 194,598,498 195,209,604 611,106 Federal Revenue 24,413,845 21,126,946 -3,286,899 Other State Revenue 15,320,829 9,333,987 -5,986,842 Other Local Revenue 16,876,890 17,078,042 201,152 Total Revenues 251,210,062 242,748,579 -8,461,482 A B (B - A) FY 2018-19 FY 2019-20 Estimated Actuals Proposed Budget Change Certificated Salaries 103,070,641 99,064,338 -4,006,303 Classified Salaries 35,770,786 37,592,824 1,822,038 Benefits 66,234,790 69,495,921 3,261,131 Books and Supplies 19,597,597 17,899,386 -1,698,211 Services and Other Operating Expenditures 36,157,361 32,986,839 -3,170,522 Capital Outlay (Locally restricted funds for Tech) 6,043,362 1,716,169 -4,327,193 Other Outgoing -1,755,099 -365,847 1,389,252 Total Expenditures 265,119,438 258,389,630 -6,729,808 12

Components of Unrestricted Ending Fund Balance A B (B - A) FY 2018-19 FY 2019-20 Estimated Actuals Proposed Budget Change Beginning Fund Balance 43,777,395 35,338,484 -8,438,912 Revenues 204,097,394 200,501,434 -3,595,960 Expenditures -135,108,800 -137,311,710 -2,202,910 Contributions & Transfers Out -77,427,505 -79,746,776 -2,319,272 Ending Fund Balance 35,338,484 18,781,431 -16,557,052 Cash, Stores & Prepaids 150,000 150,000 0 Deficit Spending FY 2019-2020 16,557,052 0 -16,557,052 Reserve for Economic Uncertainties 7,961,621 7,751,689 -209,932 Unassigned 10,669,810 10,879,742 209,932 13

Special Report FY 2019-20 Education Protection Account (EPA) On June 18, 2019, the Governing Board of the Palmdale School District will approve a Resolution Regarding the Education Protection Account for Fiscal Year 2019-2020, to expend EPA funds to support teacher salaries and benefits. Palmdale School District 2019-2020 EPA Entitlement (Adopted Budget) $25,776,709 The Palmdale School District 2019-2020 Education Protection Account funds are estimated to support salaries and benefits for regular classroom teachers. The number of teachers funded will be determined as salaries and benefits information becomes known. The 2019-2020 Education Protection Account budgeted expenditures are shown below: Description Object Codes Amount Revenue: Revenue Limit Sources 8012 $25,776,708.79 Expenditures: Certificated Salaries 1000-1999 17,442,706.00 STRS Contributions 3111 2,988,317.00 PERS Contributions 3211 23,189.00 Medicare Contributions 3331 253,022.00 OASDI 3311 18,001.00 Health & Welfare Benefits 3411 3,586,982.00 State Unemployment 3511 8,865.00 Worker's Comp Insurance 3611 471,076.00 OPEB Contributions 3711/3751 984,551.00 Instructional Supplies 4310 0.00 Transfers Out (to Charter Schools) 7299 0.00 14 TOTAL EXPENDITURES $25,776,709.00