2013/2014 Budget

Golden Valley Unified School District

Strategic Goal Alignment

Goal: To maintain and improve Golden Valley Financial viability

Goal: To develop and utilize budgeting practices that engage the community and District staff

Objective: To develop, monitor and update the District Business Plan in readable, easily

understood terms to address eventual growth, utilizing financial planning methodology

Current Considerations

• State education budget is unclear• Governor proposed and legislature has adopted a new

education funding formula: Local Control Funding Formula (LCFF)

• Aim of LCFF: provide more local control and simplify school funding

• LCFF accountability requirements and calculation details are still unclear

Additional Considerations

• Governor has not provided any guidance for budgeting with the current funding formula

• School Services of California has advised districts to budget with a reduced deficit factor of 18.997% from 22.272%

• Schools will be required to submit a revised 2013/14 budget within 45 days of a signed state budget

AB 97 – LCFF Compromise• LCFF base has been raised to better ensure that districts will get

back to pre-recession amounts, but amounts are unknown

• Supplemental grant for English Language Learners and economically disadvantaged students reduced from 35% to 20%

• Concentration grant threshold is raised to 55% from 50% while providing funding increase

• LCFF will be phased in over 8 years through 2020/2021

• Includes a grant in the last year that will provide pre-recession funding to those districts receiving less funding than under the Revenue Limit (RL) undeficited amount

May Revise LCFF Formula

Factors K-3 4-6 7-8 9-12

Base Grant per ADA

$6,845 $6,6947 $7,154 $8,289

Base funding allocations are established by grade span. The chart below shows base amount proposed, which had been increased since the May Revise from legislative compromise.

Additions the LCFF Base Grant

• K-3 Class Size Reduction (CSR) adjustment for grades k-3 of $723 per ADA

• Career-Technical Education (CTE) adjustment for grades 9-12 of $218 per ADA

• Supplemental grant equal to 20% of base allocation for each English Language Learner and Economically Disadvantaged student.

• Concentration grant based on ADA for LEAs with an ELL and Economically disadvantaged student count totaling 55% or more of their total ADA.

Other LCFF Details• Factors on prior slides creates a TARGET to be reached in

2020/2021

• Funding in 2013/14 will provide prior year funding plus 11.75% of the gap between prior year funding and LCFF target funding

• Funding in additional years will be similar to 2013/14, but percent will be adjusted annually

• Original target will be adjusted for COLA and changes to ELL and economically disadvantaged student counts

• All LEAs will be required to submit a revised budget reflecting the state education funding changes within 45 days of a signed state budget– Most budgets will change substantially from the originally

adopted 2013/14 budget

GVUSD LCFF Calculation• Supplemental grant only

– Concentration required 55%, GVUSD is 39%

• Transportation, EIA, Targeted Instructional Improvement Grant (TIIG), Special ED, Lottery, Agricultural Incentive Grant, and Specialized Secondary Program funding remains outside of LCFF

• Current LCFF assumptions reflect a difference of about ($110,000) per year under LCFF than RL with the reduced deficit factor (18.997%)

Current AssumptionsGVUSD 2013/2014 Budget

13/14 Revenue Limit Assumptions

• Due to uncertainty around LCFF, GVUSD has followed SSC’s recommendation for budgeting with a reduced Deficit factor of 18.997%

• Reduced deficit factor provides $480,585 additional RL funding for 2013/14 over 2012/13

• Applied COLA of 1.565% ($106.00) per ADA - $199,223

• Assumed a conservative ADA increase of 20 based on current enrollment projections - $124,676

Additional 13/14 Revenue Assumptions

• One-time Common Core State Standard (CCSS) implementation revenues, must be expended by 2014/15 - $318,218

• Increased lottery for ADA increase - $4,084

• Restored Medi-cal revenues - $80,000

• 5% federal sequestration – ($19,636)

• Elimination of one-time flexed Deferred Maintenance – ($97,542)

• Elimination of shared nursing revenues from YUSD – ($48,485)

• End Break the Barriers PEP grant revenues – ($46,407)

13/14 Assumed Personnel Expenses

• Step and Column - $315,015

• 5 additional FTE teaching staff per total enrollment projections (only to be hired with the physical arrival of students)- $279,126

• Psychologist Intern - $20,000

• 2013/14 District reorganization – $43,965

• 2012/13 Business office reorganization carry over – ($47,216)

Other 13/14 Assumed Expense Changes

• Increase for accurate reflection of athletics - $27,809

• Increased technology budget to support one-to-one tablet program - $68,304

• MCOE technology support services increase - $27,000

• CCSS expenses per one-time revenue - $318,218

• Golden Handshake payment eliminated – ($3,970)

• Elimination of one-time Deferred Maintenance costs – ($97,542)

• Elimination of PEP Grant expenses – ($46,407)

Enrollment Projections• 20 ADA RL Increase- $124,676

• 60 enrollment increase X 95% (attendance rate) = 57

• 57 ADA RL Increase - $355,327

• Possible changes:– $230,651 increase from additional 37 ADA (57-20)– ($110,000) LCFF funding– ($279,126) Assumed 5 additional FTE

Moving F

orward…

•A

revised budget will presented

within 45 days of the G

overnor’s signed state budget–

Could be dram

atically different than the budget today

•C

learer picture of enrollment w

ith revised budget–

Num

ber of teachers needed

•Staff w

ill continue to monitor

Cafeteria revenues and expenses