2016-17 Budget and LCAP Workshop: Presentation to the Board of Trustees

Brett W. McFadden, Assistant Supt. Business Services Mary Streshly, Ed.D. Assistant Supt. Educational Services

Greg Torr, Director of Fiscal Services May 24, 2016

What we will cover tonight

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• Overview and big picture • General Fund

– Projected enrollment – Unduplicated pupil count – Revenues – Expenditures – Staffing – Benefits

• Review of other funds

• Next steps

• Questions

2016-17 budget overview and themes

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• District property tax growth remains strong, but is projected to decrease in future years

• One-time revenue is projected to decrease

significantly • Fixed costs are increasing faster than revenues • The district has developed a structural deficit that will

pose challenges in the near future • The bottom line:

Caution and prudence are critical in 2016-17

Revenues and expenditures

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2016-17 Revenues

2016-17 New Expenditures

$ Property tax

revenues

Other funding

CalSTRS increase

CalPERS increase

Step and column

Special Education

contribution due to 0%

COLA

Health care

Add LCAP expenditures and employee salary

increases

• Revenue projections were increased at Second Interim

• Adjusted to reflect recent increases in property tax revenues based on SC County Assessor’s data

• Updated figures for 2015-16 available in August – these will be

more reliable for budgeting purposes

Property tax revenue projections

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2015-16 2016-17 2017-18 2018-19 2019-202015-16 First Interim 5.36 4.5 4 3.5 32015-16 Second Interim 6.36 5.5 4.5 3.5 3.5

Difference 1 1 0.5 0 0.5

Property Tax Projections*

* Figures displayed as percentages

Reserves As of 2015-16 Second Interim

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* Figures displayed in millions

2015-16 2016-17 2017-18 2018-19 2019-20Expenditures 90.7 92.8 95.8 99.4 103.2Ending Balance 14.4 11.4 8.7 4.3 -1.8

Assigned Parcel Tax Reserve 6.8 6.5 5.1 0.723 0Restricted reserve 3.6 3.6 3.6 3.6 0

Reserve for Program Restoration 4 1.3 0 0 0Reserve for Econ Uncert 3% (Fund 170) 2.7 2.8 2.9 3 3.1

Total (in millions) 17.1 14.2 11.6 7.3Percentage of reserves to expenditures 19% 15% 12% 7.30% 1%

Projected enrollment Updated Spring 2016

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2015/2016 2016/2017 2017/2018 2018/2019 2019/2020 2020/2021 2021/2022 2022/2023 Boynton HS 168 171 180 188 186 197 198 203 Branham HS 1,527 1,574 1,652 1,705 1,746 1,793 1,808 1,853 Camden CDS 16 17 17 17 18 18 18 18 Del Mar HS 1,172 1,192 1,236 1,265 1,276 1,344 1,392 1,451 Leigh HS 1,675 1,763 1,876 1,982 2,085 2,132 2,200 2,242 Prospect HS 1,471 1,491 1,508 1,556 1,546 1,602 1,597 1,590 Westmont HS 1,542 1,546 1,589 1,600 1,609 1,579 1,536 1,489 County Program 7 7 7 7 7 7 7 7 Home Hospital 34 34 34 34 34 34 34 34 Middle College 89 90 96 98 100 105 105 107 Non-Public School 27 28 29 30 31 32 32 33

7,728 7,913 8,223 8,484 8,637 8,842 8,928 9,026

+185 +310 +261 +153 +205 +86 +98

Total over 8 year projection +1,298

2016-17 state/local revenue sources General Fund

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2012-2013 2013-2014 2014-2015 2015-2016 2016-2017Revenue Sources Unaudited Unaudited Unaudited Projected Proposed

Actuals Actuals Actuals Ending Balance Budget

Local Taxes 55,938,520 60,815,212 65,202,073 69,506,000 73,328,830

Education Protection Acco 1,443,762 1,429,266 1,441,228 1,499,062 1,499,062

Community Redevelopme 1,797,383 673,585 569,226 682,000 719,510

State Aid (617,384) 3,662,373 3,663,744 3,827,274 3,827,274

Total 58,562,281 66,580,436 70,876,271 75,514,336 79,374,676

PERS Reduction 113,609 - - - -

Transfer Out: Charter Sch (234,000) (183,974) (242,758) (253,858) (253,858)

Transfer Out Cafeteria (250,000) - - -

Total Revenue Limit/LCFF 58,191,890 66,396,462 70,633,513 75,260,478 79,120,818

Note: 2012-2013 reflect the former Revenue Limit Funding Model. 2013-2017 reflects the LCFF

2016-17 state program revenues

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Mandated Cost Program One-Time

Funding

Career Technical Education Incentive

Grant

State Lottery - Unrestricted

Special Ed - Mental Health Funding

Mandated Cost Block Grant

State Lottery - Restricted

California Career Pathways Trust

Grant-STEM^/Manufacturin

g Special Ed - Workability

South Coast Regional Agriculture

Consortium-SCRAC Agricultural Career Technical Education

Incentive

PROGRAM AM OUNT

Mandated Cost Program One-Time Funding 1,726,140

Career Technical Education Incentive Grant 1,250,000

State Lottery - Unrestricted 1,027,880

Special Ed - Mental Health Funding 880,624

Mandated Cost Block Grant 407,864

State Lottery - Restricted 301,022

California Career Pathw ays Trust Grant-STEM^/Manufacturing 240,317

Special Ed - Workability 80,772

South Coast Regioinal Agriculture Consortium-SCRAC 55,249

Agricultural Career Technical Education Incentive 8,970

Total State Funding 5,978,838

2016-17 Federal revenues

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Special Ed IDEA Special Ed Mental

Health Services

Carl Perkins

Title II, Part A - Teacher & Principal

Training

Title III - Limited English Proficiency

Title III - Immigrant Education Program

PROGRAM AMOUNT %

Special Ed IDEA 1,015,341 62.98%Special Ed Mental Health Services 219,556 13.62%Carl Perkins 169,840 10.53%Title II, Part A - Teacher & Principal Training 124,788 7.74%Title III - Limited English Proficiency 67,518 4.19%Title III - Immigrant Education Program 15,136 0.94%

Total 1,612,179 100.00%

2016-17 local revenues General Fund

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Parcel Tax 4,853,925

73%

PROGRAM AM OUNT %

Parcel Tax 4,853,925 72.90%

ROP - Satellite Program 427,617 6.42%

Leases and Rentals Site 326,800 4.91%

Donations 265,000 3.98%

Leases and Rentals District Office 250,000 3.75%

ROTC 110,000 1.65%

ASB-Rev Abatement 100,000 1.50%

Transportation 86,000 1.29%

Interest Income 75,000 1.13%

XILINX-Project Lead the Way 65,000 0.98%

New Teacher Project 43,250 0.65%

Other 36,000 0.54%

Med-CAL Reimbursement 20,000 0.30%

Total 6,658,592 100.00%

2016-17 Expenditures General Fund

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Certificated Salaries

Classified Salaries

Employee Benefits

Books & Supplies

Services and Other Operation

Other Outgo & Direct Support

Projected Expenditures 2016-17

Certificated Salaries 39,330,150 41.48%

Classified Salaries 10,774,857 11.37%

Employee Benefits 21,448,502 22.62%

Books and Supplies 5,544,061 5.85%

Services and Other Operation 11,909,564 12.56%

Other Outgo & Direct Support 5,800,219 6.12%

Total: 94,807,353 100.00%

Expenditure comparisons

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Actual Actual Actual Estimated Actual Proposed

Budget

Program 2012-2013 % 2013-2014 % 2014-2015 % 2015-2016 % 2016-2017 %

Certificated Salaries 30,205,412 44.28% 33,452,707 40.79% 35,030,628 41.50% 38,441,881 42.35% 39,330,150 41.48%

Classified Salaries 8,784,661 12.88% 9,354,703 11.41% 9,308,261 11.03% 10,588,771 11.66% 10,774,857 11.37%

Employee Benefits 14,679,436 21.52% 15,407,427 18.79% 16,679,400 19.76% 18,824,457 20.74% 21,448,502 22.62%

Books & Supplies 2,165,940 3.18% 5,547,533 6.76% 4,269,641 5.06% 4,680,058 5.16% 5,544,061 5.85%

Services & Other Operation 8,552,258 12.54% 10,042,310 12.24% 9,794,884 11.60% 11,597,442 12.77% 11,909,564 12.56%

Capital Outlay 71,084 0.10% 134,833 0.16% 864,073 1.02% 244,715 0.27% - 0.00%

Other Outgo & Direct Support 3,748,312 5.50% 8,075,595 9.85% 8,465,186 10.03% 6,405,163 7.06% 5,800,219 6.12%

Total: 68,207,103 100.00% 82,015,108 100.00% 84,412,072 100.00% 90,782,487 100.00% 94,807,354 100.00%

Expenditure comparisons (cont.)

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-

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

30,000,000

35,000,000

40,000,000

45,000,000

CertificatedSalaries

Classified Salaries Employee Benefits Books & Supplies Services & OtherOperation

Capital Outlay Other Outgo &Direct Support

EXPENDITURES COMPARISON

2012-2013

2013-2014

2014-2015

2015-2016

2016-2017

2016-17 projected staffing General Fund, Cafeteria, and CACE

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Certificated – Teachers +3 – TOSA +1 – Asst. Principal (LHS) +1 – Superintendent +1 – Total +6

Classified

– Superintendent -1 – Total -1

– Grand Total +5

See breakdown / comparison in budget

booklet

Multi-year projection General Fund – June budget adopt

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2015-16 2016-17 2017-18 2018-19 2019-20Expenditures 90.7 94.8 97.6 101.8 106Ending Balance 14.4 12.5 8.6 2 -7.3

Assigned Parcel Tax Reserve 6.8 6.7 5.7 0 0Restricted reserve 3.6 2.9 2.9 2 0

Reserve for Program Restoration 4.1 2.8 0 0 0Reserve for Econ Uncert 3% (Fund 170) 2.7 2.8 2.9 3.1 3.2

Total (in millions) 17.2 15.2 11.5 7.1Percentage of reserves to expenditures 19% 16% 12% 7.00% 3%

See Budget Workshop Booklet for 2016-17 MYP

Projected Reserves – June Budget Adoption

Assumptions: • Includes 2016-17 LCAP expenditures and staffing projections • Prop. 30 revenues phasing out in 18-19 and 19-20 • Does not include any employee salary/benefit increases for 16-17

Other funds

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Other funds operated by the district:

Fund 130 Cafeteria Fund 140 Deferred Maintenance Fund 170 Special Reserve Funds 210-217 Building and Capital Projects Fund 250 Capital Facilities (Developer Fees) Fund 350 School Facilities Fund (SB 50) Fund 400/410 Special Reserve – Capital Fund 403 Solar Projects Fund 404 HVAC Projects Fund 670 Self Insurance – Worker’s Comp Fund 671 Self Insurance – Delta Dental Benefits Fund 672 Self Insurance – Property and Liability

LCAP hearing - Overview

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• District’s proposed 2016-17 Budget and LCAP are aligned

• District is meeting its proportionality funding under LCFF

• 2015-16 and prior year investments remain in the budget and LCAP

• 2016-17 investments have been refocused due to tightening fiscal situation and increased fixed costs (STRS, PERS, etc.)

LCFF funding breakdown

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LCFF – student enrollment

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• 7,676 total student enrollment (LCFF formula)

• 1,920 low income / English Learner / foster youth students (unduplicated)

– 1,518 low-income

– 714 English Learners

• Total unduplicated: 25%

LCAP 2016-17 Investments

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• District coordinator – oversee ELL programs, CTE, and grants

• Expansion of CTE, PTLW, and AVID programs (per 2015-16 LCAP)

• Additional math TOSA

• Ongoing funding for mental health counseling (CASSY $420k per yr. +)

• Additional tutoring and mentor services for foster youth

• Director of community engagement – hired in 2015-16

• New communication tools – websites, Twitter, Facebook

• Rollout of additional mobile classroom labs

Questions

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