Long Beach UnifiedSchool District

2013-14 Proposed BudgetJune 18, 2013

Governor’s

Budget

January

May Revise

LBUSD Budget Adopti

on

First Interi

m

Second Interi

m

Estimated

Actuals

Independent Audit

Report

Unaudited

Actuals

May

June December

March June

September

December

Budget and Financial Reporting

A Two-Year ProcessState

Budget

Governor’s

Budget

January

May Revise

LBUSD Budget Adopti

on

First Interi

m

Second Interi

m

Estimated

Actuals

Independent Audit

Report

Unaudited

Actuals

May

June December

March June

September

Budget and Financial Reporting

A Two-Year Process

December

State Budget

Governor’s

Budget

January

May Revise

LBUSD Budget Adopti

on

First Interi

m

Second Interi

m

Estimated

Actuals

Independent Audit

Report

Unaudited

Actuals

May

June December

March June

September

Budget and Financial Reporting

A Two-Year Process

December

State Budget

Budget Adoption Based On:

1)Governor’s May Revision

2)Guidance from Los Angeles County Office of Education

State Budget Issues• Budget passed by Legislature June 14,

trailer bills and Governor’s signature are still pending.– Due to the timing of the state budget,

LBUSD budget based on May Revise• Proposition 30 funding has significantly

improved State Revenues• Proposition 98 amount for schools

actually decreases, but only through manipulation of the formula. Proposition 98 Spending at $55.3B for 2013-14 (down from $56.5B in 2012-13).

Governor’s May RevisionState Budget – Major Issues

• Local Control Funding Formula• State Revenues• Cash Deferrals• Common Core Implementation

Governor’s May RevisionState Budget – Major Issues

• Local Control Funding Formula• State Revenues• Cash Deferrals• Common Core Implementation

LCFF - May Revise versus Budget Compromise -Effect on LBUSD

$6,800$7,300

$1,051

$523 $620

$1,714

$0

$2,000

$4,000

$6,000

$8,000

$10,000

Governor's Proposal Compromise

Base Grant Supplemental Grant Concentration Grant

$9,037 $8,971

LCFF - May Revise versus Budget Compromise -Effect on District with High Students in Need (90%)

$6,800$7,300

$1,314

$952 $1,278

$2,142

$0

$2,000

$4,000

$6,000

$8,000

$10,000

Governor's Proposal Compromise

Base Grant Supplemental Grant Concentration Grant

$9,894 $9,892

LCFF - May Revise versus Budget Compromise -Effect on District with 100% Students in Need

$6,800$7,300

$1,460

$1,190 $1,643

$2,380

$0

$2,000

$4,000

$6,000

$8,000

$10,000

Governor's Proposal Compromise

Base Grant Supplemental Grant Concentration Grant

$10,370 $10,403

LCFF - May Revise versus Budget Compromise -Effect on District with Low Students in Need (10%)

$6,800$7,300

$146$238

$0

$2,000

$4,000

$6,000

$8,000

$10,000

Governor's Proposal Compromise

Base Grant Supplemental Grant

$7,038$7,446

LCFF - May Revise versus Budget Compromise -Effect on District with No Students in Need

$6,800$7,300

$0

$2,000

$4,000

$6,000

$8,000

$10,000

Governor's Proposal Compromise

Base Grant

Governor’s May RevisionLCFF – Accountability

• Local Control Accountability Plan (LCAP)• Three-year plan; updated and due July 1• Addresses actions and progress toward

state priorities:– Williams Compliance– State-adopted Content Standards– Parental Involvement– Student Achievement– Pupil Engagement– School Climate– Access to a Broad Curriculum– Student Outcomes

Governor’s May RevisionState Budget

• Local Control Funding Formula• State Revenues• Cash Deferrals• Common Core Implementation

Governor’s May RevisionState Budget – State Revenues

• $97.2 B (Dept of Finance)• $100.4 B (Legislative Analyst Office)• Additional revenue assumed by LAO

is considered volatile, due to its reliance on capital gains and the stock market.

Governor’s May RevisionState Budget

• Local Control Funding Formula• State Revenues• Cash Deferrals• Common Core Implementation

Governor’s May RevisionState Budget – Cash Deferrals

• $4.92 B in reduction of Inter-year Deferrals

• Compromise reduces amount to $4.27 B

• Will significantly reduce likelihood of TRANS borrowing in 2013-14.

Estimated Effect of "Cash Deferrals" (in mi l l ions)

$0

$50,000,000

$100,000,000

$150,000,000

$200,000,000

$250,000,000

$300,000,000

$350,000,000

$400,000,000

$450,000,000

July August

September October

November December January February

March April May June July August

Statutory Method Current Method Budget

After End of Fiscal Year

Governor’s May RevisionState Budget

• Local Control Funding Formula• State Revenues• Cash Deferrals• Common Core Implementation

Governor’s May RevisionState Budget – Common Core

• $1.25 B allocated for Implementation of Common Core

• Funding designated for– Technology– Instructional Materials– Professional Development

LBUSD Budget Assumptions

• Declining Enrollment projected at 1.5% per year.

• Does not include LCFF revenue projections. Current estimate of LCFF is approx. additional $19M.

• Revenue Assumptions:– COLA of 1.56% in 2013-14, 1.8% in

2014-15, and 2.2% in 2015-16.– Federal Revenues reduced

• Sequestration – 5.9% cut in all federal funding

• General Fund carrying costs

LBUSD Budget Assumptions

• Expense Assumptions:– Step and Column is only budgeted

salary increase.– Total Health Benefits projected to

increase 6.2% in 2013-14; 7.0% in 2014-15 and 2015-16.

– Utilities projected to increase 3% in 2013-14, 2014-15 and 2015-16.

Multi-Year Proj. - Unrestricted General Fund Balance (in mi l l ions)

$82.9

$42.7

($4.7)

($65.1)

$61.7

$33.3

($8.1)

$48.90

$52.30

($80)

($60)

($40)

($20)

$0

$20

$40

$60

$80

$100

2012-13 2013-14 2014-15 2015-16

No LCFF Adding 13-14 LCFF Revenue Adding Ongoing LCFF Revenue

SUMMARY

• Many Unknowns– LCFF is biggest unknown; details

will be sorted out in coming months.

• LBUSD Structural Deficit remains.

• State’s commitment to reducing deferrals will lessen cash flow demands, but will not provide additional budget authority.