2018-19 FIRST INTERIM REPORT

Andrea McNeill

Assistant Superintendent, Business Services

December 4, 2018

PURPOSE OF INTERIM REPORTS

Required by Education Code

Provide an update to the governing board of the status of the district’s revenues and expenditures with the most updated information since budget adoption

To certify to Ventura County Office of Education that the district is able to meet the state required reserve level for the current and two subsequent years

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LCFF$38,383,113

80%

Federal Revenue$3,279,048

7%

Other State Revenue$3,153,262

7% Other Local Revenue$2,970,148

6%

GENERAL FUND REVENUES

LCFF $38,383,113

Federal Revenue $3,279,048

Other State Revenue $3,153,262

Other Local Revenue $2,970,148

Total Revenue $47,785,571

LOCAL CONTROL FUNDING FORMULA COMPONENTS

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Our unduplicated pupil count is 77.34%

Supplemental Funding is an additional

20%

Percentage above the 55% threshold

(77.34 - 55) = 22.34%

Concentration Funding is an additional

50%

Component Totals Target Amounts

Base Grant $28,796,387

Grade Span Adjustments $1,135,600 (K3) & (9-12)

Supplemental $4,629,879

Concentration $3,343,403

Transportation $477,844

2018/19 LCFF

Entitlement$38,383,113

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76.7

$37,600,998

$376,009.98

Certificated Salaries$18,194,036

37%

Classified Salaries$7,253,128

15%

Employee Benefits$12,153,834

25%

Books and Supplies$4,539,541

9%

Services, Operating Expenses

$6,121,193 12%

Capital Outlay

$273,411 1%

Other Outgo/Transfers Out

$532,408 1%

GENERAL FUND EXPENDITURES

General Fund Expenditures Amount

Certificated Salaries $18,194,036

Classified Salaries $7,253,128

Employee Benefits $12,153,834

Books and Supplies $4,539,541

Services, Operating Expenses $6,121,193

Capital Outlay $273,411

Other Outgo/Transfers Out $532,408

Total $49,067,551

Salary and Benefit Expenditures =

$37.6M or 76.7%

GENERAL FUND REVENUE COMPARISONBUDGET- 45 DAY UPDATE TO FIRST INTERIM

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Budget- 45 Day

Update

18/19 First

InterimDifference

REVENUES

LCFF $38,364,257 $38,383,113 $18,856

Federal Revenues $2,594,929 $3,279,048 $684,119

State Revenues $3,075,419 $3,153,262 $77,843

Local Revenues $2,846,383 $2,970,148 $123,765

TOTAL REVENUES $46,880,988 $47,785,571 $904,583

GENERAL FUND REVENUE COMPARISON DETAIL

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Federal Revenues*Title I, II, III $ 630,750

All Other $ 53,369

$ 684,119 *Carryforward amounts

State Revenues

Lottery 65,452$

All Other 12,391$

77,843$

Local Revenues

CTE/ROP/VC Innovates 60,444$

Donations 24,054$

Special Ed 39,267$

123,765$

GENERAL FUND EXPENDITURE COMPARISON

BUDGET- 45 DAY UPDATE TO FIRST INTERIM

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Description

Budget- 45 Day

Update 18/19 First Interim Difference

EXPENDITURES

Certificated Salaries $18,543,095 $18,194,036 ($349,059)

Classified Salaries $6,981,392 $7,253,128 $271,736

Employee Benefits $13,186,069 $12,153,834 ($1,032,235)

Books and Supplies $2,125,252 $4,539,541 $2,414,289

Service and Operating Expense $4,820,743 $6,121,193 $1,300,450

Capital Outlay $72,168 $273,411 $201,243

Other Outgo / Transfers Out $484,730 $532,408 $47,678

TOTAL EXPENDITURES $46,213,449 $49,067,551 $2,854,102

GENERAL FUND EXPENDITURE COMPARISON DETAIL

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Books and SuppliesRestricted 655,979$

Unrest. Site Allocation Carryforward 148,590$

Technology (1x mandated costs) 934,268$

LCAP technology 560,000$

LCAP instructional materials 41,864$

Other 26,010$

Lottery 47,578$

Total Books and Supplies 2,414,289$

Employee Salaries

Certificated- update actual salaries (386,628)$

Certificated Hourly 37,569$

Total Certificated (349,059)$

New/Changes Classified positions 139,908$

Classified Hourly 131,828$

Total Classified 271,736$

Employee Benefits

Pension - STRS / PERS / OPEB 38,037$ Statutory (Social Security, Medicare, State

Unemployment, Workers' Comp) (44,300)$

Health & Welfare (1,025,972)$

Total Employee Benefits (1,032,235)$

GENERAL FUND EXPENDITURE COMPARISON

DETAIL

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Service and Operating ExpenseTravel/Services- Federal programs 420,282$

Travel/Services- LCAP 35,249$

Liability Property insurance 100,000$

Special Education contracts 104,100$

College Readiness contracts 70,973$

Ongoing Maintenance Repairs 232,127$

Utilities, Dues & Membership and Directs Costs41,120$ Contracts- (VCOE, City of Fillmore,

transportation, Technology contracts,

Medi-Cal billing) 296,599$

Total Service and Operating Exp. 1,300,450$

Capital OutlayTechnology (1x mandated costs) 75,593$

Equipment 19,116$

Site Improvements 106,534$

Total Capital Outlay 201,243$

COMPONENTS OF ENDING FUND BALANCE: GENERAL FUND

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Beginning Fund Balance $5,527,742

Revenues $47,785,571

Expenditures $49,067,551

Ending Fund Balance $4,245,762

Components of Ending Fund Balance:

Restricted & Assigned $2,119,392Restricted - $412,194; Other Post Employment Benefits - $235,171; Board Reserve - $1,472,027

Designated for Economic Uncertainties $1,472,027

(3% of Expenditures and Transfers Out)

Undesignated Ending Fund Balance $654,343

MULTI-YEAR PROJECTION ASSUMPTIONS

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The budget is often referred to as a “living document ” which must be revised whenever

conditions/assumptions change. We reflect those changes in the 1st & 2nd Interim Financial Reports.

2018-19 2019-20 2020-21

LCFF:

COLA 2.71% 2.57% 2.67%

Gap Funding Rate 100.00%

Gap Funding Amount

ADA 3,594.08 3,593.28 3,593.28

Staffing:

Certificated Step & Column 1.56% 1.50% 1.50%

FUTA Salary Cost 14,805,596$ 14,724,506$ 14,672,169$

Classified Step 1.25% 1.00% 1.00%

CSEA Salary Cost 5,661,452$ 5,394,847$ 5,448,796$

MULTI-YEAR PROJECTION ASSUMPTIONS (CONTINUED)

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2018-19 2019-20 2020-21

H&W Increase

Certificated -< 13.3%>

Classified /

Confidential /

Management - 4.6%

0.00% 0.00%

STRS Increase - Employer

Contribution Rate 16.28% 18.06% 19.10%

Increase in Rate 12.82% 10.95% 5.75%

Estimated Cost 3,811,011$ 4,213,543$ 4,444,563$

Increase in Cost 170,515$ 402,532$ 231,020$

PERS Increase - Employer

Contribution Rate 18.06% 20.41% 23.16%

Increase in Rate 16.30% 12.99% 13.50%

Estimated Cost 1,372,385$ 1,508,182$ 1,729,867$

Increase in Cost 218,533$ 135,797$ 221,685$

MULTI-YEAR PROJECTION ASSUMPTIONS (CONTINUED)

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2018-19 2019-20 2020-21

Budget Reductions

Staffing: Certificated

2019-20 4.0 FTE / 2020-21 3.0 FTE (407,648)$ (351,192)$

Staffing: Classified (Migrant

Education, Neighborhood for

Learning)

2019-20 7.7 FTE (557,682)$

Books & Supplies:

Instructional Materials (332,000)$

Technology / Computers (Fully

Expended One-Time Mandated

Cost funds) (1,394,500)$

Services & Other Operating

Expenses:

Reductions in Contracted

Services / Conferences & Travel (550,000)$

MULTI-YEAR PROJECTION

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FY 18/19 FY 19/20 FY 20/21

Beginning Fund Balance $5,527,742 $4,245,762 $5,113,024

Revenue $47,785,571 $46,732,857 $47,852,671

Expense $49,067,551 $45,865,595 $46,530,566

Ending Fund Balance $4,245,762 $5,113,024 $6,435,129

Less Restricted & Assigned $2,119,392 $2,556,366 $3,191,803(Assigned: Other Post Employment Benefits, Board Reserve 2018/19- 3%, 19/20- 4.5%, 20/21- 6%)

Less Designations $1,472,027 $1,375,967 $1,395,917(3% Reserve Requirement)

Undesignated Balance $654,343 $1,180,691 $1,847,409

BUDGET CERTIFICATION

FUSD is requesting a Positive Budget Certification.

This means that based on current projections the district will meet its financial obligations for the current fiscal year and two subsequent fiscal years.

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NEXT STEPS IN THE BUDGET PROCESS

December Submit 2018-19 1st Interim Report to VCOE

Submit 2017-18 Audit Report to State Controller’s Office

January Governor’s Budget Proposal

Audit Presentation

May Governor’s May Revise

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QUESTIONS