June 6, 2017 Dramatically Improve LCAP Goal 1 Student High Level - PowerPoint PPT Presentation

June 6, 2017

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

ENROLLMENT AT CBEDS 20,500 20,095 20,000 19,591 19,281 19,247 19,500 19,072 19,129 19,000 18,564 18,078 18,500 + 57 17,838 -565 18,000 -486 17,500 -239 17,000 16,500 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20

19,354 19,500 19,165 18,781 19,000 18,450 … 18,420 18,288 18,300 18,395 +0 18,500 18,233 18,233 18,167 -538 18,000 -464 17,629 17,500 17,165 16,937 17,000 16,500 16,000 15,500 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 P1 ADA P2 ADA

• Minimum Wage Not Included: California’s minimum wage (currently at $10.50/hour) increasing schedule of $1 annual increase until January 2022 when it reaches $15.00/hour is pending to be included at the 2016-17 unaudited actuals or 2017-18 First Interim report. • Actuarial Liability Not Included: GASB 43/45/75 requires public employers such as the District to perform periodic actuarial valuations to measure and disclose their retiree healthcare liabilities for the financial statements of both the employer and the trust , if any, set aside to pre-fund these liabilities. The most recent actuarial indicated the district liability is $164 million as of June 30, 2016. • Retirement Unfunded Liability Not Included: California school districts face sharply rising employer contribution rates for both the State Teacher’s Retirement System (STRS) and the Public Employee Retirement System (PERS). Although the increases are currently projected to rise through 2024-25 , the budget includes the increases for 2017-18, 2018-19, and 2019-20 only. 5

20,000,000 Percentage Increase 18,000,000 25.000% 16,000,000 14,000,000 20.000% 12,000,000 10,000,000 15.000% 8,000,000 10.000% 6,000,000 4,000,000 5.000% 2,000,000 - 0.000% 1 2 3 4 5 6 7 8 13-14 14-15 15-16 16-17 17-18 18-19 19-20 20-21 13-14 14-15 15-16 16-17 17-18 18-19 19-20 20-21 1 2 3 4 5 6 7 8 STRS Cost PERS Cost PERS Rate STRS Rate 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 8.250% 8.880% 10.730% 12.580% 14.430% 16.280% 18.13% 19.10% STRS Rate (165,342) 867,885 2,004,805 3,025,088 1,692,331 1,692,331 1,692,331 887,331 Increase in STRS Cost 11.442% 11.771% 11.847% 13.888% 15.531% 18.100% 20.80% 23.80% PERS Rate 75,352 285,415 466,217 1,033,115 445,552 696,666 732,191 813,545 Increase in PERS Cost (89,990) 1,153,300 2,471,022 4,058,203 2,137,883 2,388,997 2,424,522 1,700,876 Annual Increase 5,610,076 6,477,961 8,482,766 11,507,854 13,200,185 14,892,517 16,584,848 17,472,179 STRS Total Amount PERS Total Amount 1,981,425 2,266,840 2,733,057 3,766,172 4,211,723 4,908,389 5,640,580 6,454,125 Annual Increase 7,591,501 8,744,801 11,215,823 15,274,026 17,411,909 19,800,906 22,225,428 23,926,304 6

SPECIAL REPORT - EDUCATION PROTECTION ACCOUNT(EPA) The following information is provided in accordance with Proposition 30 (replaced by Proposition 55) California Constitution Article XIII, Section 36:  On June 20, 2017, the Governing Board of the Palmdale School District will approve a Resolution Regarding the Education Protection Account for Fiscal Year 2017-2018, to expend EPA funds to support teacher salaries and benefits.  The 2017-2018 EPA budgeted revenue expenditures are shown below:  Palmdale School District 2017-18 EPA Projected Entitlement is $21,999,820 Expenditures: Object Codes Amount Certificated Salaries 1000-1999 15,172,972.00 Object STRS Contributions 3111 2,188,829.00 Revenue: Codes Amount Medicare Contributions 3331 178,229.00 LCFF 8012 $21,999,820 TOTAL EPA Health & Welfare Benefits 3411 3,219,504.00 REVENUE $21,999,820 State Unemployment 3511 7,592.00 Worker's Comp Insurance 3611 409,683 OPEB Contributions 3711/3751 823,011 TOTAL EXPENDITURES $21,999,820 7

2017-2018 RESERVE DISCLOSURE The following information is provided in accordance with Education Code Section 42127(a)(2)(B) regulations: Table #1: UNRESTRICTED GENERAL FUND (01) Fiscal Year Total Reserve SBE Required Reserve above SBE Assigned Balance Unassigned Minimum Minimum Above Minimum Balance Above Reserve Reserve Minimum Reserve 2017-2018 $42,664,971 $7,015,448 $35,649,523 $2,538,483 $33,111,041 2018-2019 $32,464,101 $6,946,483 $25,517,618 $4,675,593 $20,842,025 2019-2020 $10,588,118 $7,305,514 $3,282,604 $2,660,902 $621,702 Table #2:RESTRICTED GENERAL FUND (01) Fund balance for restricted sources must be reserved to use in restricted qualified expenditures only Description 2017-2018 2018-2019 2019-2020 Reserved - Restricted EFB Object $11,076,694 $7,715,806 $64,224 9740 8

2017-18 RESERVE-ASSIGNED BALANCE ABOVE MINIMUM RESERVE GENERAL FUND UNRESTRICTED Description 2017-18 2018-19 2019-20 Revolving Cash 100,000 100,000 100,000 Stores 100,000 100,000 100,000 GAP Funding Assignment Set Aside 0 2,160,099 25,731 Assigned Board Reserve 2,338,483 2,315,494 2,435,171 Total Reserve assigned above minimum reserve 2,538,483 4,675,593 2,660,902 9

2016-17 Second Interim report 2017-18 Budget 2017-18 Budget vs 2016-17 2nd Interim 2016-17 Estimated Actuals 2016-17 Estimated Actuals Changes (+/- Increases/Decrease) Unrestricted Restricted Combined Unrestricted Restricted Combined Unrestricted Restricted Combined Revenue LCFF 174,751,001 0 174,751,001 176,431,801 0 176,431,801 1,680,800 0 1,680,800 Federal Revenue 0 16,184,913 16,184,913 0 13,667,655 13,667,655 0 (2,517,258) (2,517,258) State Revenue 7,469,280 7,892,949 15,362,229 7,459,284 7,851,892 15,311,176 (9,996) (41,057) (51,053) Local Revenue 2,269,712 14,515,320 16,785,032 2,520,318 15,003,875 17,524,194 250,606 488,555 739,162 Total Revenue 184,489,993 38,593,182 223,083,175 186,411,404 36,523,422 222,934,826 1,921,411 (2,069,759) (148,349) Expenditures Certificated Salaries 55,179,859 38,815,439 93,995,298 54,825,289 36,586,726 91,412,015 (354,571) (2,228,712) (2,583,283) Classified Salaries 13,608,309 14,108,110 27,716,419 13,206,370 13,174,643 26,381,013 (401,939) (933,467) (1,335,406) Benefits 31,065,939 24,859,432 55,925,371 29,769,512 22,987,800 52,757,312 (1,296,427) (1,871,632) (3,168,059) Books and Supplies 9,634,273 11,038,642 20,672,916 12,331,893 7,511,825 19,843,718 2,697,620 (3,526,818) (829,198) Other Services & Oper. Expenses 16,744,128 15,156,137 31,900,265 15,898,528 11,906,584 27,805,112 (845,599) (3,249,553) (4,095,152) Capital Outlay 61,200 1,323,340 1,384,540 60,526 242,467 302,993 (674) (1,080,873) (1,081,547) Other Outgo 7xxx 315,228 170,000 485,228 397,447 204,575 602,022 82,219 34,575 116,794 Transfer of Indirect 73 (1,770,049) 617,803 (1,152,246) (1,816,009) 560,190 (1,255,819) (45,960) (57,613) (103,573) Total Expenditures 124,838,887 106,088,903 230,927,790 124,673,556 93,174,809 217,848,365 (165,331) (12,914,094) (13,079,425) 10

General Fund Expenditures General Fund Revenue Local Other Outgo 7xxx Other Revenue State 0% Services & 8% Transfer of Capital Revenue Oper. Indirect 73xx Outlay 7% Expenses 1% 0% 13% Federal Revenue Books and Supplies 6% 8% Certificated Salaries 39% LCFF 79% Benefits 25% Classified Salaries 14% 11

2016-17 Second Interim report 2017-18 Budget 2017-18 Budget vs 2016-17 2nd Interim 2016-17 Estimated Actuals 2016-17 Estimated Actuals Changes (+/- Increases/Decrease) Unrestricted Restricted Combined Unrestricted Restricted Combined Unrestricted Restricted Combined Total Revenue 184,489,993 38,593,182 223,083,175 186,411,404 36,523,422 222,934,826 1,921,411 (2,069,759) (148,349) Total Expenditures 124,838,887 106,088,903 230,927,790 124,673,556 93,174,809 217,848,365 (165,331)(12,914,094) (13,079,425) Deficit/Surplus 59,651,106 (67,495,721) (7,844,615) 61,737,848 (56,651,387) 5,086,461 2,086,742 10,844,334 12,931,077 Other Sources/(uses) 0 0 0 0 0 0 0 0 0 Transfers in/(out) 0 0 0 0 0 0 0 0 0 Contributions to Restricted (56,682,740) 56,682,740 0 (57,059,959) 57,059,959 0 (377,219) 377,219 0 Net increase (decrease) in Fund Balance 2,968,366 (10,812,981) (7,844,615) 4,677,889 408,572 5,086,461 1,709,523 11,221,553 12,931,077 Beginning Balance 49,572,134 15,889,066 65,461,200 49,572,134 15,889,066 65,461,200 0 0 0 Ending Fund Balance Prior to Assignments 52,540,500 5,076,085 57,616,585 54,250,023 16,297,638 70,547,661 1,709,523 11,221,553 12,931,077 12