+ MBUSD 2019-20 BUDGET ADOPTION Dr. Murakawa-Leopard June 19, 2019 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 Adoption – 6.19.19
+ 2 NATIONAL OUTLOOK WWII and Post-War Expansions (in months) 140 120 100 80 60 40 20 0 Budget Adoption – 6.19.19
+ 3 NATIONAL OUTLOOK 3 Month to 10 Month US Treasury Yield Curve Budget Adoption – 6.19.19
+ 4 STATE OUTLOOK The “Big Three” Taxes $160 $120 (in billions) $80 $40 $0 2019-20 2020-21 2021-22 2022-23 Personal Income Sales and Use Corporation Budget Adoption – 6.19.19
+ 5 STATE OUTLOOK Personal Income Tax (percent change) 6% 5% 3% 2% 0% 2018 2019 2020 January Budget May Revision Budget Adoption – 6.19.19
SCHOOL FUNDING – 6 CALIFORNIA Budget Adoption – 6.19.19
7 SCHOOL FUNDING - MBUSD Federal State Lottery Revenue 2% 3% State Other Local Revenue 27% 18% Local Property Taxes 50% Budget Adoption – 6.19.19
8 SCHOOL FUNDING - LCFF Budget Adoption – 6.19.19
9 SCHOOL FUNDING - LCFF Basic County District Type UPP Aid Los Angeles Manhattan Beach Unified N 5.32% Contra Costa Lafayette Elementary Elementary N 4.92% Los Angeles Hermosa Beach City Elementary N 4.89% Contra Costa Moraga Elementary Elementary N 4.51% Santa Clara Los Gatos-Saratoga Joint High School Y 3.96% Alameda Piedmont City Unified Unified N 2.59% Contra Costa Orinda Union Elementary N 2.45% San Mateo Hillsborough City Elementary Y 2.14% Marin Ross Elementary Elementary Y 1.04% UPP – Unduplicated Pupil Percentage The unduplicated count of pupils who (1) are English learners, (2) meet income or categorical eligibility requirements for free or reduced-price meals under the National School Lunch Program, or (3) are foster youth divided by the total enrollment in the district. “Unduplicated count” means that each pupil is counted only once even if the pupil meets more than one of these criteria Budget Adoption – 6.19.19
10 SCHOOL FUNDING - LCFF District Type Basic Aid UPP Lennox Elementary N 96.28% Hawthorne Elementary N 89.40% Centinela Valley 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 Adoption – 6.19.19
+ 11 SCHOOL FUNDING - LCFF Unduplicated Counts Year UPP 2013-14 4.00% 2014-15 3.50% 2015-16 4.10% 2016-17 4.89% 2017-18 5.32% 2018-19 (est.) 6.64% Budget Adoption – 6.19.19
12 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 Adoption – 6.19.19
13 SCHOOL FUNDING - LCFF Redondo Manhattan Inglewood Torrance Beach Beach ADA 12,086 23,496 9,937 6,647 UPP 84.92% 38.18% 19.10% 5.32% $102,558,775 $199,381,182 $84,322,898 $56,404,780 Base $17,418,582 $15,224,744 $3,221,135 $600,147 Supplemental Concentration $17,906,762 $ - $ - $ - $11,409 $9,134 $8,810 $8,576 Per Pupil (Using 2017-18 ADA and UPP Data from Ed-Data and an average base grant amount of $8,486) Additional Funding UPP to MBUSD Similar to Redondo Beach 19.10% $2,154,663 Similar to Torrance 38.18% $4,307,069 84.96% Similar to Inglewood $19,428,063 Budget Adoption – 6.19.19
+ 14 MBUSD’S BUDGET – Enrollment Kinder. Elem. Middle TK/ High Total School School 2013-14 495 2,920 1,470 2,504 6,894 2014-15 419 2,818 1,528 2,544 6,890 2015-16 395 2,760 1,555 2,459 6,774 2016-17 442 2,754 1,473 2,547 6,776 2017-18 394 2,636 1,438 2,573 6,647 2018-19 448 2,562 1,435 2,553 6,550 2019-20 (proj) 426 2,497 1,425 2,560 6,482 2020-21 (proj) 417 2,437 1,386 2,566 6,542 2021-22 (proj) 418 2,356 1,359 2,564 6,279 Budget Adoption – 6.19.19
+ 15 MBUSD’S BUDGET Local Funding $225 per parcel 12,879 taxable parcels 13.9% exemption rate 11,089 parcels taxed Up to $2.49 million in local revenue from 2018-19 through 2023- 24; $2.4 million received to date Budget Adoption – 6.19.19
+ 16 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 Adoption – 6.19.19
+ 17 MBUSD REVENUES Local Revenue $14,816,645 18% Other State Revenue $8,556,321 10% LCFF Revenue $56,554,190 69% Federal Revenue $2,090,521 3% Budget Adoption – 6.19.19
+ 18 MBUSD EXPENDITURES Capital Outlay Other Outgo/ $82,442 Services Indirect 0% $10,686,172 $393,848 12% 1% Supplies $1,654,482 Certificated 2% Salary $36,220,474 Benefits 42% $21,643,604 25% Classified Salary $15,108,414 18% Budget Adoption – 6.19.19
+ 19 MBUSD EXPENDITURES CalPERS CalSTRS 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 20.733%* 16.700%* (statutory rate 18.13%) 2020-21 23.600%* 18.100%* (statutory rate 19.10%) 17.800%* 2021-22 24.900%* (statutory 18.40%; CalSTRS may change rates to exhaust unfunded liability by 2045-46) 17.800%* 2022-23 25.700%* (statutory 18.40%; rates may change) 17.800%* 2023-24 26.400%* (statutory 18.40%; rates may change) 17.800%* 2024-25 26.600%* (statutory 18.40%; rates may change) 17.800%* 2025-26 26.500%* (statutory 18.40%; rates may change) * Rates will change as a result of the enacted budget; CalSTRS rates are expected to increase to 17.1% in 19-20, to 18.4% in 20-21, and to 18.1% in 2021-22 and thereafter; CalPERS rates will decrease, but the amount of decrease is unknown. Budget Adoption – 6.19.19
COST PRESSURES – 20 SPECIAL EDUCATION IDEA Assumes it costs twice as much to educate a child with special needs. • Federal government would pay up to 40 percent of this "excess" cost at full funding. • Since 1981, the federal share has remained less than half of the federal commitment • Budget Adoption – 6.19.19
COST PRESSURES – 21 SPECIAL EDUCATION MBUSD Special Education Enrollment 1061 Students 2015-16 US Average Per-Pupil Expense x $11,762 $12,479,482 x 40% = Maximum MBUSD Grant under IDEA $4,991,793 Actual IDEA Federal Funding for MBUSD Special Education $1,601,360 Budget Adoption – 6.19.19
COST PRESSURES – 22 SPECIAL EDUCATION MBUSD Special Education Enrollment 1061 Students ~16% MBUSD IDEA Funded Rate Per Identified Student $1,312 MBUSD AB602 Funded Rate Per Identified Student $2,289 MBUSD Mental Health Funded Rate Per Identified Student $1,530 Total MBUSD State/Federal Funding Per Identified Student $5,131 MBUSD Average Cost Per Identified Student $20,964 Budget Adoption – 6.19.19
COST PRESSURES – 23 SPECIAL EDUCATION 2018-19 2019-20 2013-14 2014-15 2015-16 2016-17 2017-18 (proj) (proj) Federal $1,290,742 $1,486,118 $1,358,954 $1,405,524 $1,595,182 $1,884,937 $1,884,937 State $3,911,646 $3,452,088 $3,844,379 $3,341,484 $3,089,038 $4,117,493 $4,117,493 Local $376,996 $381,825 $257,195 $66,139 $276,481 $188,440 $188,440 Gen Fund $8,362,122 $10,053,612 $11,274,600 $13,343,376 $14,151,226 $16,082,157 $17,418,731 Total $13,941,506 $15,373,642 $16,735,129 $18,156,523 $19,111,928 $22,273,027 $23,836,817 % Increase 5.05% 10.27% 8.86% 8.49% 5.26% 16.54% 7.02% (Total) % Increase 11.26% 20.23% 12.14% 18.35% 6.05% 13.64% 8.31% (Gen Fund) % Funded by 59.98% 65.40% 67.37% 73.49% 74.04% 75.23% 73.07% Gen Fund (5 year annual total average increase of 7.59%; 5 year general fund average increase of 11.05%) Budget Adoption – 6.19.19
+ REVENUE / EXPENSE CHANGES 24 Budget Adoption – 6.19.19
25 MULTI-YEAR PROJECTION ADOPTED BUDGET 2018-19 2019-20 2020-21 2021-22 Beg Balance $11,149,419 $7,491,030 $3,719,171 $2,824,410 Revenues $84,210,883 $82,017,677 $82,841,579 $83,660,135 Expenses $87,869,272 $85,789,536 $83,736,340 $83,537,302 Net Inc/(Dec) ($3,658,389) ($3,771,859) ($874,761) $122,833 Ending Bal $7,491,030 $3,597,822 $2,581,712 $2,583,195 Undesignated $774,453 $676,290 $282,319 $411,123 Ending Bal. eliminates escrow ($2.4M); equivalent of 62 (42.5+19.5) positions eliminated Budget Adoption – 6.19.19
+ 26 MULTI-YEAR PROJECTION – ENDING FUND BALANCE $8,000,000 $7,000,000 $6,000,000 3-Year Escrow $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 Adoption – 6.19.19
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