SAN CARLOS SCHOOL DISTRICT Second Interim Report and Budget Stabilization Plan Thursday, February 28, 2019
Agenda 1. Review of 2017-2018 Reports 2. First Interim 2018-2019 3. Budget Certification 4. Timeline 5. Budget Advisory Committee 6. Community Outreach 7. Second Interim 2018-2019 8. Budget Stabilization Plan
2017-2018 Adopted Budget (June 2017) Year Reserves 2017-2018 9.07% 2018-2019 7.18% 2019-2020 5.19%
2017-2018 First Interim (November 2017) Year Reserves 2017-2018 9.5% 2018-2019 7.84% 2019-2020 5.31%
2017-2018 Second Interim (February 2018) Year Reserves 2017-2018 9.49% 2018-2019 11.41% 2019-2020 9.75%
2018-2019 Adopted Budget (June 2018) Year Reserves 2018-2019 11.06% 2019-2020 9.46% 2020-2021 7.98%
2017-2018 Actuals (Sept. 2018) Year Reserves • Need Mila to add 2017 Actuals MYP we used for negotiations 2018-2019 4.37% 2019-2020 -0.50% 2020-2021 -7.02%
2018-2019 First Interim (December 2018) • Need Mila to add MYP Year Reserves reflecting the negative reserve 2018-2019 4.35% levels 2019-2020 -1.41% 2020-2021 -7.34%
2018-2019 First Interim (December 2018) • Need Mila to add MYP Year Reserves reflecting the negative reserve 2018-2019 4.35% levels 2019-2020 -1.41% 2020-2021 -7.34%
Why Are We Reducing? 1. June budget represented adequate reserves of 11% and projected enrollment of 3165 students 2. Unexpected student enrollment decline of 100 students first week of school, Aug. 2018 3. Settled with teachers’ association to maintain competitive salaries and benefits to attract and retain high quality staff, Sept. 2018
Why Are We Reducing? • 2017-2018 end fund balance was less than anticipated as we closed the books • Governor’s proposed budget does not include increased funds to keep up with our rising program and labor costs, and unexpected decline of 100 students in current year • Additional decline of 50 students reducing the size of district by 150 students total in two years
County Required Reductions YEAR REDUCTIONS NOTES 2018-2019 $0 Not required but recommended 2019-2020 $2.1 Million Budget Stabilization Plan approved by Board Feb. 28 2020-2021 $350,000 Additional to the $2.1 M Total $2,450,000 Reductions
Budget Certification Positive Rating • – Able to pay the bills – Maintain a minimum 4% reserve for the multiyear projection • Qualified Rating – Able to pay the bills – Less than a 4% reserve in multiyear projection – Three qualified ratings will result in FCMAT (Fiscal Crisis and Management Assistance Team) intervention • Negative Rating – Not able to pay the bills – State takes over control of budget decisions
Budget Timeline First Interim Report is filed by December 15 • – Basis for budget projections is based on data available through October 31 Governor’s Proposed Budget • – Administration will share 2019-2020 Budget Plans by early January 2019 Second Interim Report is filed by March 15 • – Includes Governor’s proposal and data through January 31 – Preliminary Notices to Certificated staff by March 15 if needed April 29 Notices to Classified Employees • LCAP Process informs budget development process March - May • May • – Update in mid-May Governor’s Revised Budget Proposals for 2019-2020 – Final Notices to Certificated staff by May 15 June Adopted Budget • – Governor’s May Revise Data – Latest Enrollment and Staffing Data
Budget Advisory Committee • October : learned about the budget process and our challenges • November : groups suggested possible reductions and ways to increase revenue • January: School Services of CA Budget Workshop Report and impacts • February : Draft Budget Stabilization review and input • Next meetings : March 7, April 18, and May 30 Meetings • Meeting documents here: https://www.scsdk8.org/apps/pages/index.jsp?uREC_ID=1136262&type=d&pREC_ID=1603 627
Community Outreach Superintendent: Fall and Winter Letters, and PTA Meetings • Superintendent Community Budget Meetings: Feb. 11-12 • February 15 Board Study Session • San Mateo Daily Journal Articles • Budget@scsdk8.org • Association Meetings • LCAP Process •
Second Interim Report Feb. 2019 Year Reserves Targets 2018- 4.26% 9-12% 2019 2019- 4.79% 6-10% 2020 2020- 5.13% 4-7% 2021
2 nd Interim Budget Assumptions 1. Current savings identified in operational expenditures, personnel costs, and position control audit 2. Portion of savings assigned to curriculum adoptions and opening Mariposa 2019-2020 3. 2019-2020 Enrollment 3009 students 4. No additional funds other than COLA 3.46%
2 nd Interim Report Highlights • Included in draft multi year projection (MYP) is $2.45 million in required minimum reductions from proposed Budget Stabilization Plan • Year three assumes no additional decline in enrollment, 2.86% COLA • Draft Second Interim Report approval requested to support Certificated Layoff Resolution • Final Second Interim Report approval March 14
Summary*: Draft Budget Stabilization Plan 2019-2020 Reductions/Savings Amounts 18-19 Current Year Savings $200,000 19-20 Operations $506,000 19-20 Student Support Programs $270,000 19-20 Instructional Programs $717,000 19-20 Classroom $760,000 Total $2,453,000 Required Reductions for 4% Reserve $2,450,000 Optional Reductions $1,464,000 Possible Revenue Increases (3%) $1,250,000 *Detailed plan available on Board Docs
Recommended Process • Determine level of reductions • Section by section review • Consensus to change a recommendation • Approve Budget Stabilization Plan and Draft 2 nd Interim Budget Report
THANK YOU
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