Fiscal Year 2017-2018 Budget Presentation

June 6, 2017

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Rowland Unified School District

2017-2018 Budget• Local Control Funding Formula • Unrestricted General Fund 17-18 • Restricted General Fund 17-18• Multi Year Projections

• Major Assumptions• STRS/PERS Annual Cost Increases• Multi-year Unrestricted General Fund• Multi-year Restricted General Fund 2

Overview of Presentation

Adopted LCAP & Budget

(2017-18) Unaudited Actual

Results for 2016-17

1st Interim

Financial Report

Audit Report

Accepted

Governor’s Budget

Proposal

2nd

Interim Financial Report

Preliminary Budget

May Revise

Present Final LCAP & Budget (2017-18)

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June

December

January

March

May

April

July

We Are Here!September

In 2013, California dramatically reformed the way it funds our public schools. LCFF established a funding system that provides school districts with base funding and additional funds based on how many low-income students, English learners, and foster youth they serve.

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B A S EG R A N T S

Every student generates a base grant, which funds basic educational costs, such as teacher salaries, retirement costs, instructional materials, etc.

S U P P L E M E N TA L G R A N T S

Every student who is low-income, learning English, or in foster care generates 20% more funding above the base grant.

These funds must be spent on increasing and improving services for these high-need student groups in order to improve their achievement.

C O N C E N T R AT I O N G R A N T S

In districts where at least 55% of students are high-need, those high-need students above the 55% enrollment threshold generate an extra 50% of the base grant.

These funds must also be spent to increase or improve services for high-need students in order to improve their achievement.

$107,129,080 $23,172,154

How the Local Control Funding Formula (LCFF) Works

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12%

25%

38%

50%

61%

74%

88%

100%

11%

38%

86%

96% 97%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21

Trend Actual

Progress Toward LCFF Implementation

2017-2018 BUDGET

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$107.1, 80%

$23.2, 17%

$2.7, 2%$910,000, 1%

LCFF - Base

LCFF - Supplemental & Concentration

Other State & Fed

Local Miscellaneous

2017-18 Unrestricted General Fund Revenue in Millions

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2017-2018 Unrestricted General Fund Revenue

Revenues and Other Financing Sources

LCFF $130,301,234

Federal Revenues 0

Other State Revenues

$2,750,449

Other Local Revenues

$910,000

Total $133,961,683

$104,396,610 , 78%

$4,863,963 , 4%

$7,214,562 , 5%

$0 , 0%

$16,391,404 , 13%

Salaries &Benefits

Books &Supplies

Services/Operating Expenses

Capital Outlay

Transfers Out/Other Uses

UNRESTRICTED General Fund Expenditures in dollars

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Projected Unrestricted General Fund Expenditures 2017-2018

Expenditures and Other Financing Uses

Certificated Salaries

$61,390,372

Classified $17,190,895

Employee Benefits $25,815,343

Books and Supplies $4,863,963

Service and Other Operating Expenditures

$7,214,562

Capital Outlay $0

Other Outgo $1,832,644

Indirect -$1,234,806

Other Financing Sources

$16,391,404

Total $133,464,377

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LCFF $130,301,234

Other State Revenues $2,750,449

Other Local Revenues $910,000

Total Revenues $133,961,683

Certificated Salaries $61,390,372

Classified $17,190,895

Employee Benefits $25,815,343

Books and Supplies $4,863,963

Service and Other Operating Expenditures $7,214,562

Capital Outlay $0

Other Outgo $1,832,644

Indirect -$1,234,806

Other Financing Sources $16,391,404

Total Expenditures $133,464,377

Net Increase in Fund Balance $497,306

Fund Balance Net Beginning Fund Balance $37,733,307

Ending Fund Balance $38,230,613

Projected Unrestricted General Fund Ending Fund Balance 2017-2018

Description 2017-18

Ending Fund Balance $38,230,613

Revolving Cash & Inventory $209,333

Required State 3% reserve $5,028,260

Assigned Fund Balance

STRS/PERS Increases $6,000,000

Declining Enrollment $6,000,000

Emergency Disaster/Safety $6,000,000

Technology $6,409,066

Instructional Program support $6,000,000

School Site Block Grant $1,000,000

School Site Discretionary $1,000,000

Equipment Replacement $583,954

Available $010

Unrestricted General Fund 2017-2018Ending Fund Balance Assignments

$8,656,455.0 , 19%

$20,444,559.0 , 44%

$744,857.0 , 2%

$16,391,404.0 , 35%

Federal

Other State

Other Local

District Contribution

2017-18 Restricted General Fund Revenue in Dollars

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2017-2018 Restricted General Fund Revenue

Revenues and Other FinancingSources

DistrictContribution

$16,391,404

Federal Revenues

$8,656,455

Other State Revenues

$20,444,559

Other Local Revenues

$744,857

Total $46,237,275

$36,796,725 , 73%

$8,739,805 , 17%

$4,284,175 , 9%

$617,782 , 1%

Salaries & Benefits

Books & Supplies

Services/OperatingExpensesCapital Outlay

RESTRICTED General Fund Expenditures in dollars

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Projected Restricted General Fund Expenditures 2017-2018

Expenditures and Other Financing Uses

Certificated Salaries $13,709,038

Classified $7,846,788

Employee Benefits $15,240,899

Books and Supplies $8,739,805

Service and Other Operating Expenditures

$4,284,175

Capital Outlay $ 96,987

Other Outgo

Indirect $617,782

Total $50,535,474

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District Contributions $16,391,404

Federal Revenues $8,656,455

Other State Revenues $20,444,559

Other Local Revenues $744,857

Total Revenues $46,237,275

Certificated Salaries $13,709,038

Classified $7,846,788

Employee Benefits $15,240,899

Books and Supplies $8,739,805

Service and Other Operating Expenditures $4,284,175

Capital Outlay $ 96,987

Other Outgo $0

Indirect $617,782

Total Expenditures $50,535,474

Net Increase in Fund Balance $ -4,298,199

Beginning Fund Balance $14,630,083

Ending Fund Balance $10,331,884

Projected Restricted General Fund Ending Fund Balance 2017-2018

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Multi-Year Projected Budget

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LCFF Planning Factors 2017-2018 2018-2019 2019-2020

Average Daily Attendance (ADA)

13,499 13,285 13,071

Statutory COLA 1.56% 2.15% 2.35%

Step and Column 1.04% 1.04% 1.04%

Gap Funding (SSC) 43.97% 39.03% 41.51%

Special Education and Categorical Programs COLA

1.56% 2.15% 2.35%

Lottery Revenue –Unrestricted

$144/ADA $144/ADA $144/ADA

Lottery Revenue – Restricted $45/ADA $45/ADA $45/ADA

California Consumer Price Index (CPI)

3.11% 3.19% 2.86%

One-time Discretionary Funds $0 $ 0 $ 0

Major Assumptions for Proposed Budget

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Year STRS Employer Contribution

% CumulativeIncrease

Additional STRS Cost to the District

Cumulative TOTAL Annual Additional STRS Cost to the District

13-14 8.25% $0 $0

14-15 8.88% 0.63% $397,252.64 $397,252.64

15-16 10.73% 2.48% $1,563,788.16 $1,961,040.80

16-17 12.58% 4.33% $2,730,323.67 $4,691,364.47

17-18 14.43% 6.18% $3,896,859.19 $8,588,223.66

18-19 16.28% 8.03% $5,063,394.71 $13,651,618.37

19-20 18.13% 9.88% $6,229,930.23 $19,881,548.60

20-21 19.10% 10.85% $6,841,573.18 $26,723,121.78

STRS District Rate Increase Impact

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Year PERS Employer Contribution

% Cumulative Increase

Additional PERS Cost to the District

Cumulative TOTAL Annual Additional PERS Cost to the District

13-14 11.417% $0 $0

14-15 11.77% 0.35% $77,425.49 $77,425.49

15-16 11.85% 0.43% $95,122.75 $172,548.24

16-17 13.89% 2.47% $546,402.75 $718,950.99

17-18 15.531% 4.11% $909,196.49 $1,628,147.48

18-19 18.10% 6.68% $1,477,720.81 $3,105,868.29

19-20 20.8% 9.38% $2,075,003.17 $5,180,871.46

20-21 23.8% 12.38% $2,738,650.24 $7,919,521.70

PERS District Rate Increase Impact

Description 2017-18 2018-19 2019-20

REVENUE $117,570,279 $118,560,112 $119,379,598

SALARIES & BENEFITS $104,396,610 $104,406,176 $107,014,785

BOOKS & SUPPLIES $4,863,963 $5,019,123 $5,162,670

SERVICES & OTHER EXP. $7,214,562 $8,244,707 $6,457,626

CAPITAL & OTHER OUTGO $597,838 $616,909 $634,553

TOTAL EXPENDITURES $117,072,973 $118,286,915 $119,269,634

NET CHANGE IN FUND BALANCE $497,306 $273,197 $109,964

ENDING FUND BALANCE $38,230,613 $38,503,810 $38,613,774

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Multi-Year Projections (Unrestricted)

Description 2017-18 2018-19 2019-20

REVENUE $46,237,275 $46,877,666 $47,525,887

SALARIES & BENEFITS $36,796,725 $37,572,482 $38,420,044

BOOKS & SUPPLIES $8,739,805 $4,618,605 $4,750,697

SERVICES & OTHER EXP. $4,284,175 $4,420,840 $4,547,276

CAPITAL & OTHER OUTGO $714,769 $737,570 $758,664

TOTAL EXPENDITURES $50,535,474 $47,349,497 $48,476,681

NET CHANGE IN FUND BALANCE $ (4,298,199) $(471,831) $(950,794)

ENDING FUND BALANCE $10,331,884 $9,860,053 $8,909,25919

Multi-Year Projections (Restricted)

THANK YOU!

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Questions