May 21, 2020 Regular Board Meeting Newark Unified School District - PowerPoint PPT Presentation

May 21, 2020 Regular Board Meeting Newark Unified School District Newark, CA (Alameda County)

 Required due to QUALIFIED certification of the 2 nd Interim Report---ACOE required: budget report, list of reductions, update on SCAC  Covers the period of July 1 through April 30  Snapshot of the budget as of April 30, 2020  Review revenues and expenditures forecasted for the current year as compared to the Adopted Budget and 2 nd Interim.  Includes a multi-year projection (MYP) for the two subsequent years 2020-21 and 2021-22  No Certification Required----FHRA  Submit to ACOE, CDE and State Controller by June 1, 2020

 Increase in fund balance $566,723  Additional revenues from prior years federal MAA (Medi-Cal Administrative Activities) reimbursements $428K—offset SpEd contribution  Reduced expenditures in utilities and substitute costs Change in Fund Balance- Unrestricted 3rd Interim 2nd Interim Change Revenues 46,810,662 46,289,029 521,633 Expenditures 47,076,989 47,122,079 (45,090) Net Surplus/(Deficit) (266,327) (833,050) 566,723 Beginning Fund Balance 4,471,801 4,471,801 0 Net Surplus/(Deficit) (266,327) (833,050) 566,723 Ending Fund Balance 4,205,474 3,638,751 566,723

 Any potential savings in unspent dollars will be needed to backfill against next year’s anticipated reduction in State funding  Additional costs due to COVID-19 pandemic ◦ Extra time compensation for “essential” classified employees ◦ Cleaning, disinfecting schools ◦ Virtual graduations ◦ Food service costs ◦ Distance learning services, materials, supplies and resources ◦ Masks, gloves, disinfectants, hand sanitizers ◦ Facilities modifications

 ASSUMPTIONS COLA (LCFF) 3.26% 0.00% 0.00% STRS 17.10% 18.40% 18.10% Change in STRS rate from PY 1.30% -0.30% PERS 19.721% 22.80% 24.90% Change in PERS rate from PY 3.08% 2.10% Lottery per ADA - Unrestricted $153 $153 $153 Restricted $54 $54 $54 Step & Column - Certificated 1.69% 1.69% 1.69% Step & Column- Classified 1.19% 1.19% 1.19% Total Benefits - Certificated 23.51% 24.81% 24.51% Total Benefits- Classified 32.331% 35.41% 37.51% H&W increase 2.00% 2.00% Salary increase- Certificated 1.50% 1.00% 1.75% Salary increase - Classified 0.00% 0.00% 0.00% Budget Reductions- Resolution 2158 700,000 1,520,000 1,620,000 Budget Reductions- Resolution 2061 700,000 2,431,000 - Enrollment 5,631 5,600 5,574 P-2 ADA 5,477 5,426 5,401 Funded ADA (LCFF) 5,556 5,477 5,426

Total Change MYP General Fund in Fund 2019-20 2020-21 2021-22 Unrestricted Balance & Reserves Revenues 46,810,662 44,692,558 44,347,274 Expenditures 47,076,989 45,840,776 46,438,534 Net Surplus/(Deficit) (266,327) (1,148,218) (2,091,259) (3,505,805) Fund Balance Beginning Fund Balance 4,471,801 4,205,474 3,057,256 Net Surplus/(Deficit) (266,327) (1,148,218) (2,091,259) Ending Fund Balance- Unrestricted 4,205,474 3,057,256 965,996 (3,505,805) Reserves Reserve for NTA increase-retro 466,000 0 0 Reserve for Economic Uncertainty 3,739,474 3,057,256 965,996 Fund 17 Special Reserves 2,261,198 2,261,198 2,261,198 Total Reserves Available 6,000,672 5,318,454 3,227,194 (3,505,805) Minimum Required-3% of Total 2,036,690 1,967,671 1,992,966 Expenditures (Unrestricted & Restricted) Minimum Met Yes Yes Yes

 0% COLA  10% cut to LCFF  STRS and PERS Rates decrease  Cash Deferrals June 2020 to July 2020 $5M ◦ ◦ April, May, June 2021 to July 2021-$15M  The CARES Act/Federal Funding  Special Ed Funding  Flexibility/Local Relief Measures  Changes to LCAP- due 12/15/20  More info at June 4 Board Meeting

 Current year deficit in unrestricted funds is $266K (an improvement of $566K since 2 nd Interim).  Total deficit this year and next two years estimated at $3.5 Million in unrestricted funds.  Assumptions in the MYP include over $5.5 Million in budget reductions over the next two years.  With 0% COLA and declining enrollment, LCFF revenues projected to decrease $3.7 Million over the next two years compared to 2 nd Interim estimates.  School consolidation and closures included in budget balancing plan. (If not done, then other reductions will be needed.)  Next year’s budget to be presented to Board in June. ◦ Anticipate more reductions ◦ More details to come from May Revise

1st Interim (December) Year End Unaudited 2nd Interim Actuals (March) (September) Proposed 3rd Interim Budget (May) (If Qualified) (June)