mbusd 2019-20 budget adoption...measure mb and mbef will provide significant financial relief to the...

+

MBUSD 2019-20 BUDGET ADOPTION Dr. Murakawa-Leopard

June 19, 2019

Manhattan Beach Unified School District

325 S. Peck Avenue

Manhattan Beach, CA 90266

Phone: (310) 318-7345, x5900 Budget Adoption – 6.19.19

+ NATIONAL OUTLOOK

2

0

20

40

60

80

100

120

140

WWII and Post-War Expansions (in months)

Budget Adoption – 6.19.19

+ NATIONAL OUTLOOK

3


3 Month to 10 Month US Treasury Yield Curve

+ STATE OUTLOOK

4


The “Big Three” Taxes

$0

$40

$80

$120

$160

2019-20 2020-21 2021-22 2022-23

(in

bil

lio

ns

)

Personal Income Sales and Use Corporation

+ STATE OUTLOOK

5


0%

2%

3%

5%

6%

2018 2019 2020

Personal Income Tax

(percent change)

January Budget May Revision

6 SCHOOL FUNDING –

CALIFORNIA


7

SCHOOL FUNDING - MBUSD

State

27%

Local Property

Taxes

50%

Other Local

Revenue

18%

Federal

Revenue

3%

State Lottery

2%


8

SCHOOL FUNDING - LCFF


9


County District Type Basic

Aid UPP

Los Angeles Manhattan Beach Unified N 5.32%

Contra Costa Lafayette Elementary Elementary N 4.92%

Los Angeles Hermosa Beach City Elementary N 4.89%

Contra Costa Moraga Elementary Elementary N 4.51%

Santa Clara Los Gatos-Saratoga Joint High School Y 3.96%

Alameda Piedmont City Unified Unified N 2.59%

Contra Costa Orinda Union Elementary N 2.45%

San Mateo Hillsborough City Elementary Y 2.14%

Marin Ross Elementary Elementary Y 1.04%

UPP – Unduplicated Pupil Percentage The unduplicated count of pupils who (1) are English learners, (2) meet income or

categorical eligibility requirements for free or reduced-price meals under the National

School Lunch Program, or (3) are foster youth divided by the total enrollment in the

district. “Unduplicated count” means that each pupil is counted only once even if the

pupil meets more than one of these criteria


10

SCHOOL FUNDING - LCFF District Type Basic Aid UPP Lennox Elementary N 96.28%

Hawthorne Elementary N 89.40%

Centinela Valley High School N 85.63%

Inglewood Unified N 84.92%

Lawndale Elementary N 84.80%

Wiseburn Unified N 46.01%

Torrance Unified Unified N 38.18%

Culver City Unified N 37.23%

Santa Monica-Malibu Unified N 28.60%

South Pasadena Unified N 19.74%

Redondo Beach Unified N 19.10%

El Segundo Unified N 16.00%

Beverly Hills Unified Y 15.60%

San Marino Unified N 15.26%

Palos Verdes Peninsula Unified N 11.95%

La Canada Unified N 8.00%

Manhattan Beach Unified N 5.32%

Hermosa Beach City Elementary N 4.89%


+ SCHOOL FUNDING - LCFF

Unduplicated Counts

11


Year UPP

2013-14 4.00%

2014-15 3.50%

2015-16 4.10%

2016-17 4.89%

2017-18 5.32%

2018-19 (est.) 6.64%

12


Grade Span 2019-20 Base Grant Augmentation Grant Total Base Grant

TK-3 $7,702 $801 $8,503

4-6 $7,818 $0 $7,818

7-8 $8,050 $0 $8,050

9-12 $9,329 $243 $9,572

Grade Span

Supplemental Grant 20% of Base Grant for

Every High Needs

Student

Concentration Grant 50% of Base Grant for

Every High Needs

Student over 55% of

District Enrollment

TK-3 $1,701 $4,252

4-6 $1,564 $3,909

7-8 $1,610 $4,025

9-12 $1,914 $4,786


13


Inglewood Torrance Redondo

Beach Manhattan

Beach

ADA 12,086 23,496 9,937 6,647

UPP 84.92% 38.18% 19.10% 5.32%

Base $102,558,775 $199,381,182 $84,322,898 $56,404,780

Supplemental $17,418,582 $15,224,744 $3,221,135 $600,147

Concentration $17,906,762 $ - $ - $ -

Per Pupil $11,409 $9,134 $8,810 $8,576

UPP Additional Funding

to MBUSD

Similar to Redondo Beach 19.10% $2,154,663

Similar to Torrance 38.18% $4,307,069

Similar to Inglewood 84.96% $19,428,063

(Using 2017-18 ADA and UPP Data from Ed-Data and an average base grant amount of $8,486)


+ MBUSD’S BUDGET –

Enrollment

14

TK/

Kinder. Elem.

Middle

School

High

School Total

2013-14 495 2,920 1,470 2,504 6,894

2014-15 419 2,818 1,528 2,544 6,890

2015-16 395 2,760 1,555 2,459 6,774

2016-17 442 2,754 1,473 2,547 6,776

2017-18 394 2,636 1,438 2,573 6,647

2018-19 448 2,562 1,435 2,553 6,550

2019-20 (proj) 426 2,497 1,425 2,560 6,482

2020-21 (proj) 417 2,437 1,386 2,566 6,542

2021-22 (proj) 418 2,356 1,359 2,564 6,279


+ MBUSD’S BUDGET

Local Funding

15

$225 per parcel

12,879 taxable parcels

13.9% exemption rate

11,089 parcels taxed

Up to $2.49 million in

local revenue from

2018-19 through 2023-

24; $2.4 million

received to date Budget Adoption – 6.19.19

+ MBUSD’S BUDGET

Local Funding

16

$0.0

$1.0

$2.0

$3.0

$4.0

$5.0

$6.0

20

08

-09

20

09

-10

20

10

-11

20

11

-12

20

12

-13

20

13

-14

20

14

-15

20

15

-16

20

16

-17

20

17

-18

20

18

-19

Grants to the District (in millions)


+ MBUSD REVENUES

17

LCFF Revenue

$56,554,190

69% Federal

Revenue

$2,090,521

3%

Other State

Revenue

$8,556,321

10%

Local Revenue

$14,816,645

18%


+ MBUSD EXPENDITURES

18

Certificated

Salary

$36,220,474

42%

Classified

Salary

$15,108,414

18%

Benefits

$21,643,604

25%

Supplies

$1,654,482

2%

Services

$10,686,172

12%

Capital Outlay

$82,442

0%

Other Outgo/

Indirect

$393,848

1%


+ MBUSD EXPENDITURES

19

CalPERS CalSTRS

2014-15 11.771% 8.880%

2015-16 11.847% 10.730%

2016-17 13.888% 12.580%

2017-18 15.532% 14.430%

2018-19 18.062% 16.280%

2019-20 20.733%* 16.700%* (statutory rate 18.13%)

2020-21 23.600%* 18.100%* (statutory rate 19.10%)

2021-22 24.900%*

17.800%*

(statutory 18.40%; CalSTRS may change rates

to exhaust unfunded liability by 2045-46)

2022-23 25.700%* 17.800%*

(statutory 18.40%; rates may change)

2023-24 26.400%* 17.800%*


2024-25 26.600%* 17.800%*


2025-26 26.500%* 17.800%*



* Rates will change as a result of the enacted budget; CalSTRS rates are

expected to increase to 17.1% in 19-20, to 18.4% in 20-21, and to 18.1% in

2021-22 and thereafter; CalPERS rates will decrease, but the amount of

decrease is unknown.

20 COST PRESSURES –

SPECIAL EDUCATION

IDEA • Assumes it costs twice as much to educate a child with special needs.

• Federal government would pay up to 40 percent of this "excess" cost at full funding.

• Since 1981, the federal share has remained less than half of the federal commitment



SPECIAL EDUCATION

MBUSD Special Education Enrollment 1061 Students

2015-16 US Average Per-Pupil Expense x $11,762

$12,479,482

x 40% =

Maximum MBUSD Grant under IDEA $4,991,793

Actual IDEA Federal Funding

for MBUSD Special Education $1,601,360



SPECIAL EDUCATION

MBUSD Special Education Enrollment 1061 Students

~16%

MBUSD IDEA Funded Rate Per Identified Student $1,312

MBUSD AB602 Funded Rate Per Identified Student $2,289

MBUSD Mental Health Funded Rate Per Identified Student $1,530

Total MBUSD State/Federal Funding Per Identified Student $5,131

MBUSD Average Cost Per Identified Student $20,964



SPECIAL EDUCATION 2013-14 2014-15 2015-16 2016-17 2017-18

2018-19 (proj)

2019-20 (proj)

Federal $1,290,742 $1,486,118 $1,358,954 $1,405,524 $1,595,182 $1,884,937 $1,884,937

State $3,911,646 $3,452,088 $3,844,379 $3,341,484 $3,089,038 $4,117,493 $4,117,493

Local $376,996 $381,825 $257,195 $66,139 $276,481 $188,440 $188,440

Gen Fund $8,362,122 $10,053,612 $11,274,600 $13,343,376 $14,151,226 $16,082,157 $17,418,731

Total $13,941,506 $15,373,642 $16,735,129 $18,156,523 $19,111,928 $22,273,027 $23,836,817

% Increase

(Total) 5.05% 10.27% 8.86% 8.49% 5.26% 16.54% 7.02%

% Increase

(Gen Fund) 11.26% 20.23% 12.14% 18.35% 6.05% 13.64% 8.31%

% Funded by

Gen Fund 59.98% 65.40% 67.37% 73.49% 74.04% 75.23% 73.07%

(5 year annual total average increase of 7.59%; 5 year general fund average increase of 11.05%)


+ REVENUE / EXPENSE CHANGES

24


25 MULTI-YEAR PROJECTION

ADOPTED BUDGET

eliminates escrow ($2.4M); equivalent of 62 (42.5+19.5) positions eliminated

2018-19 2019-20 2020-21 2021-22

Beg Balance $11,149,419 $7,491,030 $3,719,171 $2,824,410

Revenues $84,210,883 $82,017,677 $82,841,579 $83,660,135

Expenses $87,869,272 $85,789,536 $83,736,340 $83,537,302

Net Inc/(Dec) ($3,658,389) ($3,771,859) ($874,761) $122,833

Ending Bal $7,491,030 $3,597,822 $2,581,712 $2,583,195

Undesignated

Ending Bal. $774,453 $676,290 $282,319 $411,123


+ MULTI-YEAR PROJECTION –

ENDING FUND BALANCE

26


$-

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

$6,000,000

$7,000,000

$8,000,000

2018-19 2019-20 2020-21 2021-22

3-Year Escrow

REU (5%)

REU (3%)

Undesignated Amount

+ MULTI-YEAR PROJECTION –

ADOPTED-UNAUDITED “SWING”

27

Adopted

Budget Unaudited

Actuals Total Change

2011-12 ($2,176,236) ($1,078,135) $1,098,101 2012-13 ($5,682,446.00) ($2,956,204.00) $2,726,242 2013-14 ($2,977,006.00) $1,127,733.00 $4,104,739 2014-15 ($3,211,807.00) ($1,402,405.95) $1,809,401 2015-16 ($683,646.00) $79,099.47 $762,745 2016-17 ($3,339,507) ($75,426) $3,264,081 2017-18 ($3,303,012) ($2,300,560) $1,002,452 2018-19 ($145,480) ($3,658,389)* ($3,512,909)*

*estimated actuals


28 MULTI-YEAR PROJECTION

2.43% SWING; 1% SALARY

eliminates escrow in 20-21 ($2.4M); drops REU to 3% in 21-22;

equivalent of 23 (17+16) positions eliminated

2018-19 2019-20 2020-21 2021-22

Beg Balance $11,149,419 $9,365,768 $7,678,595 $4,963,595

Revenues $84,210,883 $81,896,328 $82,720,230 $83,538,786

Expenses $85,994,533 $83,704,850 $85,556,279 $86,007,411

Net Inc/(Dec) ($1,783,650) ($1,687,173) ($2,714,700) ($2,347,276)

Ending Bal $9,365,768 $7,678,595 $4,963,595 $2,616,619

Undesignated

Ending Bal. $2,742,929 $903,787 $656,081 $6,396


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Measure MB and MBEF will provide significant financial relief to the District.

As a result of these local funds, the District was able to avoid the elimination of more than 32 positions in 2018-19 and 2019-20.

However, given current conditions, the District is beginning to implement expenditure reductions. These will include:

2019-20 – reductions in the areas of professional development, instructional materials, technology, and supplies and services in 2019-20.

2020-21 – reductions amounting to $4.8M (5.4% of total expenditures)

2021-22 – another $2.25M (another 2.5% of total expenditures)

BALANCING THE BUDGET


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Even after these reductions, budgetary pressures will remain:

Structural deficit

Diminishing reserves

Diminishing increases to state funding

Declining enrollment

Increasing costs (salary, pensions, health and welfare, special education)

Maintenance needs (human capital)

BALANCING THE BUDGET


+

MBUSD 2019-20 BUDGET ADOPTION Dr. Murakawa-Leopard

June 19, 2019

Manhattan Beach Unified School District

325 S. Peck Avenue

Manhattan Beach, CA 90266

Phone: (310) 318-7345, x5900 Budget Adoption – 6.19.19

mbusd 2019-20 budget adoption...measure mb and mbef will provide significant financial relief to the...

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