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SANTA CRUZ COUNTY OFFICE OF EDUCATION 2013-2014

PROPOSED BUDGET OVERVIEW

PRESENTED BY:

MARY HART, ASSOCIATE SUPERINTENDENT/BUSINESS SVCS.

JUNE 20, 2013

Santa Cruz County Office of EducationMICHAEL C. WATKINS, SUPERINTENDENT

PROPOSED BUDGET FOR 2013-2014

Year-end expenditures have been estimated based on current knowledge.

The proposed 2013/14 Budget is based on current law. While we anticipate the Local Control Funding Formula being new law in 2013/14 at this point in time it is extremely vague and has therefore not been used for our estimates. COLA projections and Deficits are based on the School Service Dart Board for the May Revision.

Adjustments will be made after the State Budget is adopted.

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GENERAL ASSUMPTIONSUSED IN THIS BUDGET

• Based on the 2013/14 May Revise State Budget current law formulas

• School Services of California has advised budgeting a COLA of 1.565% for revenue limit funding. The projected deficit decreases to 19.233%.

• All state categorical funding has been projected at 2012/13 levels with a 1.565% COLA applied. This includes all Tier III Categorical programs.

• 2014/15 and 2015/16 projections are based on the latest School Services of California Dartboard.

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Craft Budget Plans that do not rely on carryover funds.

Budget for no salary increases (other than Step and Column).

Budget for a 10% increase in Health and Welfare Costs.

For areas affected by State Budget reductions, reduce expenditures to conform to new lowered revenues.

DIRECTION PROVIDED TO DEPARTMENTS:

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- General Fund Revenues remain relatively flat, increasing from $42.7 million to $43.3 million.

- General Fund Expenditures have been adjusted for the reduction of one time spending, decreasing from $47.3 million to $44.7 million. This is due in large to one time expenditures in the prior year.

RESULT:

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ADA IMPACTS

- Court/Community SchoolsADA is projected at 2011/12 levels through the

2015/16 fiscal year.

- Special EducationADA is projected at 2012/13 levels through

the 2015/16 fiscal year.

- County-Wide ADA is projected at 2012/13 levels through

the 2015/16 fiscal year.

- ROPROP ADA is no longer collected by the state

for funding purposes.

2011-2012 PROPOSED BUDGET General Fund Revenues

2012/13 ESTIMATED ACTUALS

Unrestricted Restricted Total

Beginning Balance

$13,628,773 $5,260,515 $18,889,288

Revenues & Transfers In

$18,006,910 $24,729,725 $42,736,635

Expenditures & Transfers Out

$22,774,959 $24,535,008 $47,309,967

Increase (Decrease)

($4,768,049) $194,717 ($4,573,332)

Assigned Ending Balance

$8,860,724 $5,455,232 $14,315,956

UnassignedEnding Balance

$0 $0 $0

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MYP ASSUMPTIONS - REVENUES

Budgeted COLA on state revenues at 1.8% for 2014/15 and 2.2% for 2015/16. Deficit remains at 19.233%. The ADA Revenue Limit is projected to remain flat through 2015/16.

Federal funding is projected at 2013/14 levels through 2015/16. These projections include the Federal Sequestration at 5.2%.

Local revenues are projected at 2013/14 levels through 2015/16.

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MYP ASSUMPTIONS - EXPENDITURES

Salary and benefit costs are expected to increase each year due to step and column.

Health & welfare costs are projected to increase 10% in both 2014/15 and 2015/16.

Completed one time expenditure for 2012-13 have been removed for 2013-14 through 2015/16.

Supply, material and equipment budgets have been adjusted to reflect changes projected for increases and decreases in Federal and State Funding.

GENERAL FUND THREE YEAR SUMMARY

 2013/14 2014/15 2015/16

Beginning Balance

$14,315,956 $12,876,313 $11,399,946

Revenues & Transfers In

$43,325,256 $43,711,245 $44,419,193

Expenditures & Transfers Out

$44,764,899 $45,187,613 $45,786,729

Increase (Decrease) ($1,439,643) ($1,476,368) ($1,367,536)

Nonspendable Fund Balance

$719,481 $719,481 $719,481

Restricted Fund Balance

$5,379,015 $5,199,244 $4,971,553

Assigned Fund Balance

$6,777,817 $5,481,221 $4,341,375

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Support for Districts & Students:

The Santa Cruz County Office has utilized a combination of on-going and one-time resources to fund a number of activities aimed at supporting both districts and students. These include:

Digital Schools Implementation

Technology

Math and Arts Coordinator

SELPA administration and staff

Tutorial and homework support in libraries

Address attendance and truancy (SARB)

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Support for Districts & Students - continued

College feasibility study for S4C

Gang suppression and prevention through BASTA

Addressing the achievement gap through unique ELL strategies and support

Mentorship and career panels for all secondary schools through Your Future is Our Business

Outdoor Education Program

Expanded career opportunities in local high school’s (ROP)

Increased support to districts participating in the New Teacher Project

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Support for Districts & Students - continued

Professional Development for District Business Personnel

AB430 Principal Training

Summer School Credit Recovery for nearly 1000 students

Tutorial and homework support in the homeless shelters

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RECOMMENDATION

Our recommendation to the Board is to adopt the 2013/14 proposed Budget.