WSCUHSD 2019-20 Budget Proposal June 26, 2019 Changes since - PowerPoint PPT Presentation

WSCUHSD 2019-20 Budget Proposal June 26, 2019

Changes since 6/12/2019 Presentation ● An error related to Consortium Partner District ADA revenue was discovered on 6/13/2019 ● The error created a significant impact on District Local Revenue estimates for each year of the budget ● The error was corrected and updated revenues and expenses were incorporated into 2018-19, 2019-20 and subsequent years ● Recent litigation settlements were added as assignments to the 2019-20 components of ending fund balance

May Revision/Potential Changes ● COLA for 2019-20 reduced to 3.26% (from 3.46% in January) ● STRS adjustments (smaller increase) more likely ● PERS increase partial relief possible ● Increase to Special Education funding may/may not help ● No Augmented COLA

Overall District Fiscal Condition ● The District will meet the minimum reserve requirements in: ○ 2019-20 with deficit spending (would not have deficit spending without Science Textbook adoption) ○ 2020-21 with deficit spending (very small deficit/includes implementation of the Fiscal Recovery Plan) ○ 2021-22 with significant deficit spending ● Declining enrollment has greater impact on revenue than COLA

Projections & Assumptions 2018-19 2019-20 2020-21 2021-22 COLA 3.70% * 3.26% 3.00% 2.80% DOF GAP 100.0% 100.0% 100.0% 100.0% Funded $ $10,100 $10,461 $10,764 $11,068 * 2.71% COLA was augmented with additional 0.99% in the Adopted State Budget

● More Projections and Assumptions: ○ New Parcel Tax Measure will pass at current level ○ 180 student days, 185 teacher work days ○ Step & Column increase to salaries - negotiations not settled ○ 7.0 Certificated FTE reductions for 2020-21 ○ STRS/PERS: lower STRS increase anticipated; 11.4% average PERS increases ○ Health Benefit increases: 3.5% average Certificated & 8.6% Classified ○ Books and Supplies - Science Textbook adoption in 2019-20; 5% reductions in 2020-21 & 2021-22 (plus assignment for Social Studies adoption) ○ Services and Operating - ■ 2019-20 reflects 64% increase in Property/Liability Insurance ■ 2020-21 & 2021-22 include 1% increase over prior years ■ Required 3% contribution to Routine Restricted Maintenance

LCFF Revenue Projections from 2nd Interim 2017-18 2018-19 2019-20 2020-21 COLA 1.56% 3.70% 3.46% 2.86% Actual % 0.27% 2.76% 2.50% -0.28% $ Growth $48,645 $495,918 $461,431 ($53,578)

Current LCFF Revenue Growth 2018-19 2019-20 2020-21 2021-22 COLA 3.7% 3.26% 3.00% 2.80% Actual % 2.71% 1.39% 1.09% -1.41% $ Growth $486,928 $255,797 $204,344 ($266,091)

Revenue Growth

COLA vs. Percent Growth

Statewide Funding

MYP Summary 2019-20 2020-21* 2021-22 Revenues 25,102,260 25,212,106 24,906,182 Total Expenditures 25,543,924 25,136,910 25,539,738 Excess(Deficiency) (441,664) 75,196 (633,556) Transfers/Other Uses (84,631) (85,000) (85,000) Net Increase(Decrease) (526,295) (9,804) (718,556) * Incorporates the Fiscal Recovery Plan reductions of 7.0 FTE

Fund Balance Summary 2019-20 2020-21 2021-22 Beginning Balance 2,668,171 2,161,876 2,152,072 Net Increase(Decrease) (526,295) (9,804) (718,556) Rsrv Econ Uncertainty 770,807 758,607 770,693 Assignment/Restricted 1,379,369 925,484 605,119 Unappropriated 11,701 467,981 57,704

Fund Balance Summary Without Reductions in 2020-21 2019-20 2020-21* 2021-22* Beginning Balance 2,668,171 2,161,876 1,531,492 Net Increase(Decrease) (526,295) (630,384) (1,352,400) Rsrv Econ Uncertainty 770,807 777,225 789,707 Assignment/Restricted 1,379,369 835,484 65,119 Unappropriated 11,701 (81,217) (675,735) * Cannot meet Minimum Reserve for Economic Uncertainty

Next Steps ● After the Governor signs State Budget, the 45-Day Budget Revision for the District will be presented at the August Board meeting ● Superintendent’s Budget Committee will review Fiscal Recovery Plan and other potential reductions for 2020-21 ● Monitor enrollment for 2019-20 and subsequent years ● Potential new Parcel Tax measure ● Align budget with results of Portrait of a Graduate process

Questions? Discussion/Action ● June 12, 2019 - Discussion Only ● June 26, 2019 - Staff requests approval of the 2019-20 Adopted Budget Report