2018-19SecondInterimBoardofEducationPresentation

March13,2019

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Whatis“SecondInterim”?• ReflectsthefinancialandbudgetarystatusoftheDistrictasofJanuary31.ThereportisduetotheCountyOfficeonorbeforeMarch15.

• IncludesMYPthatshowstheGeneralFundprojectionsforthecurrentandsubsequenttwo(2)fiscalyears.

• TheGoverningBoardisrequiredtocertifytotheDistrict’sabilitytomeetitsfinancialobligationsforthecurrentandtwo(2)succeedingfiscalyears:

§ WillMeet(Positive)§ Maynotmeet(Qualified)§ WillNotMeet(Negative)

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StudentsPopulation(October2018CALPADS)

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AfricanAmerican,0.82%

AmericanIndianorAlaskaNative,

0.09%

Asian,3.72%

HispanicorLatino,67.65%

Filipino,0.92%

PacificIslander,0.97%

WhitenotHispanic,22.09%

MultipleEthnicity,3.62%

Missing/Declinetostate,0.12%

StudentPopulation- ByEthnicityStudentPopulationByGradeLevel TotalTransitionalKindergarten 93Kindergarten 797Grade1 801Grade2 824Grade3 840Grade4 803Grade5 791Grade6 796Grade7 852Grade8 911Non-PublicSchool 13Total 7,521

GeneralFund- 2nd InterimChanges• ChangesinLCFFFundingcalculations:

• Year-to-dateadjustmentsinFederal,State,&Localgrants&entitlements.

• Staffingchangesandotheroperationalcostsasof2nd interim.

(Detailsonpages13-19ofthebudgetbook)

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1stInterim

2nd

InterimIncrease(Decrease)

StudentEnrollment 7517 7521 4

AverageDailyAttendance 7268.94 7247.09 <21.85>

RatioDistrictADAtoEnrollment 96.70% 96.36% <0.34%>

UnduplicatedPupilPercentage 59.20% 61.45% 2.25%

AdoptedBudgetvs.FirstInterim

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A. NetIncreaseinUnrestricted GeneralFund&RoutineRestrictedMaintenanceAccount(RRMA)EndingBalance=approx.$406,000

IncreasesinUnrestricted/RRMARevenues:LCFFfundingincreases $281,017MinoradjustmentinMandatedCostandotherlocalrevenues (2,754)IncreaseinInterest Earnings 45,000NetIncreaseinRevenues $323,263

LESS– IncreasesinUnrestricted/RRMAExpenditures:Adjustmentsinclassroomteachersandothercertificatedsalaries $159,492Decreaseinclassifiedsalaries (128,597)Decreaseincertificatedandclassifiedemployeebenefits (15,355)

Otherexpenditurebudgetadjustments 79,020NetincreaseinExpenditures 94,560

ADD– DecreaseinContributionsfromUnrestrictedtoRestrictedPrograms:DecreaseincontributionstoRestrictedPrograms $177,534NetDecreasein Contributions 177,534

NetIncreaseinUnrestrictedGeneralFundEndingBalance- SecondInterim $406,237

AdoptedBudgetvs.FirstInterim…cont’dB.CombinedUnrestricted/RRMA&RestrictedGeneralFund

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FirstInterim

SecondInterim

Increase<Decrease>

StudentEnrollment 7517 7521 4

AverageDailyAttendance (ADA) 7268.94 7247.09 <21.85>

UnduplicatedPupilCount%(FRPM, ELL,FosterYouth)

59.20% 61.45% 2.25

GeneralFundRevenues(including transfersfromotherfunds)

$101,078,150 $101,607,072 $528,922

GeneralFundExpenditures(includingtransfertoCafeteriaFund)

$104,676,020 $104,798,705 <$122,685>

GeneralFundEndingBalance(Unrestricted/Restricted) $7,213,080 $7,619,317 $406,237GeneralFundEndingBalance(Unrestricted Only) $7,212,298 $7,618,535 $406,237

2018-19GENERALFUNDREVENUES

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$101.6Million

LCFFBase:PropertyTax33%

LCFFBase:EducationProtectionAccount

10%LCFFSupplementaland

Concentration8%

LCFFBase:RemainingasaStateAid

20%

SpecialEducationPropertyTax

4%

FederalRevenues5%

OtherStateRevenues7%

Lottery2%

LocalRevenues7%

MeasureUParcelTaxes2%

TransferofRDApass-throughrevenues

2%

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GENERALFUNDREVENUE- DetailsLCFFBase:PropertyTax $33,756,502 33.22%LCFFBase:EducationProtectionAccount 9,809,498 9.65%LCFFSupplementalandConcentration 8,169,070 8.04%LCFFBase:RemainingasaStateAid 20,667,640 20.34%TotalLCFFSources 72,402,710 71.26%

SpecialEducationPropertyTax 4,232,591 4.17%FederalRevenues 4,802,018 4.73%OtherStateRevenues 7,197,824 7.08%Lottery 1,598,640 1.57%LocalRevenues 7,293,140 7.18%MeasureUParcelTaxes 1,680,149 1.65%TransferofRDApass-throughrevenues 2,400,000 2.36%

TotalRevenue $101,607,072 100.00%

2018-19GENERALFUNDEXPENDITURES

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$104.8Million

CertificatedSalaries36%

ClassifiedSalaries16%

EmployeeBenefits24%

BooksandSupplies3%

Services,OtherOperatingExpense/CapitalOutlay

19%

OtherOutgo/InterfundTransfer-out

1%

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GENERALFUNDEXPENDITURE- Details

CertificatedSalaries $38,092,474 36.35%

ClassifiedSalaries 16,687,598 15.92%

EmployeeBenefits 25,095,967 23.95%

Sub-totalSalaries&Benefits $79,876,039 76.22%

BooksandSupplies $3,638,146 3.47%

Services,OtherOperatingExpense/CapitalOutlay 20,405,366 19.47%

OtherOutgo/InterfundTransfer-out 879,154 0.84%

TotalExpenditures $104,798,705 100.00%

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MULTI-YEARPROJECTIONSMulti-Year Projections

Planning Factors2018-19 2019-20 2020-21

REVENUES:LCFF Funding:

LCFF COLA 3.70% 3.46% 2.86%Enrollment 7,522 7,358 7,236Average Daily Attendance 7,247 7,134 6,994Single Year Unduplicated Pupil Percentage 61.45% 58.25% 58.10%

Federal Revenues Flat FlatState Revenues 3.46% 2.86%Local Revenues Flat Flat

EXPENDITURES:Salaries:

Certificated 3.50% 3.50% 0%Classified 3.50% 3.50% 0%Step & Column Adjustments 1.50% 1.50%

Employee Benefits:STRS Employer Contribution:

Statute until 2020-21 16.28% 18.13% 19.10%Governor's Proposed Buydown 16.28% 17.10% 18.10%

PERS Employer Contribution 18.06% 20.70% 23.40%Health & Welfare 3.18% 3.05%Other Benefits 3.18% 3.05%

Books & Supplies 3.18% 3.05%Services & Other Operating Expenditures 3.18% 3.05%Other Outgo 3.18% 3.05%

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MULTI-YEARPROJECTIONSDESCRIPTION

2018-19 SECOND INTERIM 2019-20 PROJECTIONS 2020-21 PROJECTIONS

UNRESTRICTED RESTRICTED COMBINED UNRESTRICTED RESTRICTED COMBINED UNRESTRICTED RESTRICTED COMBINEDA. REVENUES:

LCFF Sources 72,402,710 4,232,591 76,635,301 73,056,579 4,232,591 77,289,170 73,869,487 4,232,591 78,102,078

Federal Revenues 0 4,802,018 4,802,018 0 4,802,018 4,802,018 0 4,802,018 4,802,018 Other State Revenues 2,798,244 5,998,220 8,796,464 1,438,053 6,157,746 7,595,799 1,479,181 6,333,857 7,813,038 Other Local Revenues 1,232,890 7,740,399 8,973,289 1,232,890 6,960,273 8,889,760 1,232,890 6,960,273 8,889,760

Transfers from Fund 25 – RDA Balance 0 0 0 2,500,000 0 2,500,000 2,500,000 0 2,500,000 Transfer of ongoing RDA pass thru revenues 2,400,000 0 2,400,000 2,400,000 0 2,400,000 2,400,000 0 2,400,000 Estimated Revenues from Closure of DO/Site Lease 0 0 0 0 0 0 3,100,000 0 3,100,000 Contributions (19,131,383) 19,131,383 0 (21,563,048) 21,563,048 0 (22,711,760) 22,711,760 0

TOTAL REVENUES 59,702,461 41,904,611 101,607,072 59,064,474 43,715,676 103,476,747 61,869,798 45,040,499 107,606,894 B. EXPENDITURES:

Certificated Salaries 30,292,516 7,799,958 38,092,474 32,048,160 9,292,789 41,340,949 32,528,882 9,432,181 41,961,063 Classified Salaries 9,083,202 7,604,396 16,687,598 9,542,131 7,988,608 17,530,739 9,674,763 8,108,437 17,783,200 Employee Benefits 15,413,812 9,682,155 25,095,967 16,742,763 10,552,291 27,295,054 17,649,434 11,008,751 28,658,185 Books & Supplies 1,009,174 2,628,972 3,638,146 1,241,266 2,712,575 3,953,841 1,279,124 2,795,306 4,074,430 Services & Other Operating Expenditures 5,579,291 12,623,150 18,202,441 5,132,771 11,491,038 16,623,809 5,289,320 11,841,515 17,130,835 Capital Outlay 19,500 2,031,425 2,050,925 550,000 0 550,000 550,000 0 550,000 Other Outgo 318,393 607,076 925,469 328,518 626,381 954,899 338,538 645,486 984,024 Direct Support/Indirect Costs (1,630,173) 1,136,892 (493,281) (1,682,013) 1,173,045 (508,968) (1,733,314) 1,208,823 (524,491)Interfund Transfers Out 446,966 0 446,966 0 0 0 0 0 0 Board-approved SchoolClosures/Staffing Reductions:

1) Orion 0 0 0 (723,000) 0 (723,000) (723,000) 0 (723,000)2) Adelante 0 0 0 (910,000) 0 (910,000) (910,000) 0 (910,000)3) Fair Oaks 0 0 0 (568,000) 0 (568,000) (568,000) 0 (568,000)4) Hawes 0 0 0 (560,000) 0 (560,000) (560,000) 0 (560,000)5) Additional staffing reductions 0 0 0 (700,000) 0 (700,000) (700,000) 0 (700,000)

One-time Moving Expenses 152,000 0 152,000 340,000 0 340,000 0 0 0

TOTAL EXPENDITURES 60,684,681 44,114,024 104,798,705 60,782,596 43,836,727 104,619,323 62,115,747 45,040,499 107,156,246

C.NET INCREASE (DECREASE) IN FUND BALANCE (982,220) (2,209,413) (3,191,633) (1,718,122) (121,051) (1,142,576) (245,949) 0 450,648

D. BEGINNING FUND BALANCE $8,480,486 $2,330,464 $10,810,950 $7,498,266 $121,051 $7,619,317 $5,780,144 $0 $5,780,144

E. ENDING FUND BALANCE 7,498,266 121,051 7,619,317 5,780,144 0 5,780,144 5,534,195 0 5,534,195

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MULTI-YEARPROJECTIONS…cont’dDESCRIPTION

2018-19 SECOND INTERIM 2019-20 PROJECTIONS 2020-21 PROJECTIONS

UNRESTRICTED RESTRICTED COMBINED UNRESTRICTED RESTRICTED COMBINED UNRESTRICTED RESTRICTED COMBINED

E. ENDING FUND BALANCE 7,498,266 121,051 7,619,317 5,780,144 0 5,5780,144 4,786,228 0 4,786,228

COMPONENTS OF ENDING FUND BALANCE

a) Designated for:

Revolving Cash/Stores/Prepaids $80,000 $80,000 $80,000 Legally Restricted/Carryover 121,051 0 0 Assigned for Future Deficit Spending 3,094,666 1,376,543 1,130,595

Assigned for Substitute Sick Leave 35,000 35,000 35,000 Assigned for Health Care Reform 250,000 250,000 250,000 Assigned for One-time Moving Expenses 340,000 0 0

Total Designations $3,920,717 $1,741,543 $1,495,595

b) Reserve:

State-required Minimum Reserve for Economic Uncertainties (3%) $3,143,961 $3,138,580 $3,214,687 Board Mandated Reserve (3%) 3,143,961 3,138,580 3,214,687 Undesignated/Unassigned Ending Balance (2,589,322) (2,238,558) (2,390,775)

Total Reserve $3,698,600 $4,038,601 $4,038,600 Total Reserve as % of Total Expenditures 3.53% 3.86% 3.77%

ENDING FUND BALANCE (a + b) $7,619,317 $5,780,144 $5,534,195

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ALLDISTRICTFUNDSFY2018-19 Second

Interim

BeginningBalance7/1/2018

Revenues Expenditures

TransfersIn(Out)&

OtherSources(Uses)

NetIncrease(Decrease)inFundBalance

ProjectedEndingFundBalance

6/30/2019

01GeneralFund $10,810,950 $99,207,072 $104,351,739 $1,953,034 <$3,191,633> $7,619,317

12ChildDevelopment 3,932 5,217,973 5,126,728 0 91,245 95,177

13Cafeteria 2,123,068 4,513,410 5,335,937 446,966 <375,561> 1,747,506

14 DeferredMaintenance 0 0 118,729 118,729 0 0

21Building 114,248,627 2,365,000 46,683,702 0 <44,318,702> 69,929,924

25CapitalFacilities 18,810,373 3,320,000 1,645,407 <2,518,729> <844,136> 17,966,237

40SpecialReserve–CapitalProjects 2,038,059 40,000 0 0 40,000 2,078,059

Total– All Funds $148,035,009 $114,663,455 $163,262,242 $0 <$48,598,787> $99,436,220

ü2ndInterimduetoSMCOE– March15th

üGovernor’s2019-20MayRevisedBudget

ü2019-20LCAP&Budgetdevelopment

üDistrict-adoptedLCAP&BudgetduetoSMCOE– July1st

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Nextsteps:

TheBudgetCycleJuly1:2018-19

AdoptedBudget

Sept15:2017-18Year-EndReport

(UnauditedActuals)

Dec.15:2018-191st InterimReport

January:Governor’s2019-20State

BudgetProposal

March15:2018-192nd InterimReport

Mid-May:Governor’s2019-20RevisedStateBudget

Proposal

June:2019-20LCAP&Budget

Adoption

CurrentYear

Nextyear16

Lastyear

Questions?

Requestingapprovalofthe2018-19SecondInterimReportwitha

Positive certification.

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