SAN DIEGO UNIFIED SCHOOL DISTRICT 2019-20 Second Interim Financial Report Board of Education March 10, 2020
Budget Development Timeline We Are Here March 15 Preliminary Certificated Notices April Classified Notices May 15 Final Certificated Notices June First and Second Reading 2 of the Budget and LCAP
Second Interim Development ◆ Second Interim is based on: ◆ Activity from July 1 through January 31 and projecting through June 30 ◆ Governor’s Proposed Budget for 2020-21 ◆ Latest guidance from SDCOE 3
Governor’s Proposed Budget 42.0% 58.0% 4 Source: California Department of Finance
General Fund Multi-Year Assumptions REVENUES Description 2019-20 2020-21 2021-22 LCFF/State Funding Model Declining Enrollment 102,243 100,709 99,199 COLA 3.26% *2.29% 2.71% Federal Impact Aid $12.2M $10.0M $10.0M Other State Mandated Block Grant $ 3.99M $ 4.04M $ 4.09M Lottery (GFU- $153; GFR-$54) $207/ADA $207/ADA $207/ADA Transfers In $21.3M $31.6M $16.1M 5 *Decrease from 3.0% from projected at First Interim.
Increased Expenses 6
Employer Pension Increased Costs GFU Impact $76 Million $ - Mil $3 Mil $10 Mil $14 Mil $13 Mil $14 Mil $8 Mil $12 Mil $2 Mil 7 * Rates updated to reflect Governor’s Proposed Budget
General Fund Multi-Year Assumptions EXPENDITURES Description 2019-20 2020-21 2021-22 Expenditures Step and Column: Certificated/Classified 1.78% / 1.05% 1.78% / 1.05% 1.78% / 1.05% Salary Increase* 3.70% 0% 0% STRS** 17.10% 18.40% 18.10% PERS 19.72% 22.80% 24.90% Health & Welfare Premiums 6.00% 6.00% 6.00% Materials & Supplies (Consumer Price Index-CPI)** 3.09% 2.99% 2.89% Utilities $26.3M $25.0M $25.0M Implemented Board Solutions/Budget Shortfall*** $84.2M $106.8M - Contributions Special Education $233.5M $241.3M $250.5M Restricted Routine Maintenance (RRM) $43.9M $43.3M $41.0M 8 *3.7% effective January 1, 2020. **Year over year increase. ***Assumes $55.8M solutions in 2020-21 are one-time.
2020-21 Solutions Governor's Preliminary Budget $11.0M Reduction in Contributions $8.0M Funding Opportunities $39.5M Pending Negotiations $3.0M Reductions in Centralized Costs $11.4M May Revise Revenues* $11.3M Total $84.2M 9 *Should additional Revenue at May Revise not materialize, additional expense reductions will be required.
Potential Shifts ◆ Governor’s Budget Updates released in May and June ◆ Impacts of Collective Bargaining Agreements ◆ Strategic layoffs of certificated/classified as needed ◆ Additional unexpected costs or revenues 10
Certificated Particular Kinds of Service (PKS) PKS Area Number of Notices ◆ There are 178 Full Time Equivalent (FTE) listed in the PKS. This is the 1 Business Education number of FTE no longer needed in these credential areas across the district, 25 Child Development however, this does not mean 178 individuals will lose their jobs. 0 Foreign Language: French ◆ Employees impacted by the PKS will be 6 able to bump into another credential Foreign Language: Spanish areas. The board must take action to 18 reduce this number of FTE in order to General Subjects/ Elementary move employees into the other needed 0 credential areas. Special Education: Early Childhood ◆ The actual number of layoff notices to be 2 Social Science issued is 55. 3 Visual and Performing Arts: Art 11 55 Total number of notices to be issued
Options for Impacted Stafg The procedures require the most senior employees to be offered positions first. Additional options include*: 1. Continued opportunity for employment via reassignment and transfers. 2. Certificated career retraining and/or reassignment (e.g. ECE teachers who want to enter an internship program to become a credentialed teacher) 3. Other employment outside of SDUSD (hosted career fairs with employment offers from our partners). *Some of these options may be subject to bargaining 12
Recommended Board Action ◆ Approve the Resolution to Reduce or Eliminate Certain Certificated Services for the 2020-2021 School Year pursuant to Education Code 44949/ 44955 and Article 19 of the SDEA collective negotiations contract as presented. 13
Recommended Board Action ◆ Approve the Fiscal Year 2019-20 Second Interim Financial Report and Resolution to declare that the district as Qualified Certification, and identify the amount of budget solutions needed for fiscal years 2020-21 and 2021-22. ◆ This is a self-assigned certification and we have full intent to return to a Positive Certification in 90 days. 14
15
Recommend
More recommend
