making your point!€¦ · note: san diego county office of education (sdcoe) has fiscal oversight...

DAC-DELACMEETING

February 12, 2019

District’s Fiscal ResponsibilityIs To “Meet Its Fiscal Obligations”

March:

Second

Interim

Report

March:

Second

Interim

Report

September:

Unaudited

Actuals

Report

Three-Year

Fiscal

Certification

June:

Proposed

Budget

Report

December:

First

Interim

Report

3%

Minimum

Reserve for

Economic Uncertainties

(REU)

Positive A district will be able to meet its financial obligations for the current

and subsequent two fiscal years.

Qualified A district may not be able to meet its financial obligations for the

current fiscal year or subsequent two fiscal years.

Negative A district will be unable to meet its financial obligations for the

remainder of the fiscal year or subsequent fiscal year.

State Budget Certifications

NOTE: San Diego County Office of Education (SDCOE) has fiscal

oversight responsibilities over school districts as required by

the State, and can change a district’s self-certification based

upon their review of fiscal data. Negative certification could

trigger a takeover by SDCOE or State.

January 10 – Governor’s Budget Proposal

February – Legislative Analyst Office’s (LAO) Review

State Budget Process

June – Conference Committee

May 15 – Governor’s May Revision

February/March – Legislative Hearings

June 15 – Legislature passes Budget

June 30 – Governor signs Budget

© 2015 School Services of California, Inc.

Governor’s Proposed K-12 2019-20 Education Budget

$2 Billion LCFF Funding

• 3.46% Cost-of-Living, Previously Estimated at 2.57%

$3 Billion Pension Funding

• CalSTRS Employer Rates

2019-20 Decrease from 18.13% to 17.10%

2020-21 Decrease from 19.10% to 18.10%

2021-22 and After: One-Half Percent Proposed Rate Decrease

$576 Million Special Education Grant

• Funding Rates Not Specified

$1.8 Billion Early Childhood Education Funding

• Childcare, Kindergarten Facilities, and Birth to Three Program.

• Universal preschool for low income over three-year period.

Impact of Governor’s

2019-20 Proposed Budget

State

Funding Amount

CVESD Estimated

Funding

(With 200 ADA

Decrease)

LCFF Revenue$2 Billion

(3.46% COLA)

$155K

Estimated Revenue

Increase

CalSTRS Employer

Pension Costs

$3 Billion

2019-20 CalSTRS rate from

18.13% to 17.10%

$1.3 Million

Estimated Expense

Decrease

Special Education

Grant$576 Million To Be Determined

Budget Cuts

Included$1.3M $1.8M $3.5M $7.5M $5.5M $7M

REU % 18.89% 14.75% 11.62% 7.59% 4.41% 3.76%

REU Decrease <$263K> <$10.4M> <$6.9M> <$11.5M> <$9M> <$1.9M>

Governor’s Proposed Budget Impact on 2018-19 First Interim Multiyear Projection Through 2021-22 (Budget Cuts: $7.5M in 2019-20;

$5.5M in 2020-21; $7M in 2021-22) 200 Decrease in 2019-20 ADA

$50,795,227

$40,418,675

$33,464,711

$21,956,615

$12,945,377 $11,021,183

$-

$10,000,000

$20,000,000

$30,000,000

$40,000,000

$50,000,000

$60,000,000

2016/17 2017/18 2018/19 2019/20 2020/21 2021/22

Amount Reserved for Economic Uncertainties vs. 3 Percent Minimum Reserve by Fiscal Year

REU

3% Minimum REU

Revisiting the LCFFGreatly simplifies State funding for Local Educational Agencies (LEAs)

Grade Level

Demographics

(Free/Reduced Price Meal Eligible,

English Learner, and/or Foster

Youth) (Unduplicated)

Supplemental and Concentration Grants

ADJUSTMENTS

$

Source: WestEd

Per Student

Base Amount

Not All Districts Funded at Same LCFF Rate 2017-18 LCFF Revenue Per ADA

Unduplicated

Pupil %59.13% 61.43% 79.12% 60.87% 86.1% 88.5% 90.02%

$8,584.84 $8,689.00

$9,569.53 $9,613.18

$9,952.26 $9,972.63 $10,100.44

$7,500.00

$8,000.00

$8,500.00

$9,000.00

$9,500.00

$10,000.00

$10,500.00

Source: State Attendance Reports

CVESD Attendance District Only (K-6)

23,244.55 23,127.60

23,038.68

22,668.65

22,595.49

22,392.75

21,800.00

22,000.00

22,200.00

22,400.00

22,600.00

22,800.00

23,000.00

23,200.00

23,400.00

2013-14 2014-15 2015-16 2016-17 2017-18 2018-19

Unrestricted General Fund Cumulative Employer CalSTRS and CalPERS Retirement Cost Increase

(Includes Governor’s Pension Rate Reduction in 19-20 and 20-21)

CalSTRS Rate8.88% 10.73% 12.58% 14.43% 16.28% 17.1% 18.1% 18.6% 18.1% 18.1%

CalPERS Rate11.771% 11.847% 13.888% 15.531% 18.062% 20.8% 23.5% 24.6% 25.3% 25.3%

$730,973

$2,075,250

$4,973,549

$8,066,923

$13,000,133

$14,695,446

$17,577,176

$19,127,517 $19,175,854 $19,559,371

$-

$5,000,000

$10,000,000

$15,000,000

$20,000,000

$25,000,000

2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24

Source: 2013-14 through 2017-18 Audited Reports; *2018-19 First Interim Report

$15,341,003

$20,860,264

$23,204,392

$28,944,821

$32,197,462

$36,389,909

$0

$5,000,000

$10,000,000

$15,000,000

$20,000,000

$25,000,000

$30,000,000

$35,000,000

$40,000,000

$45,000,000

2013-14 2014-15 2015-16 2016-17 2017-18 2018-19*

CVESD Historical UnrestrictedGeneral Fund Contribution to Special Education

2017-18 and 2018-19Budget Reductions Implemented

2017-18 2018-19

Suspend Transfer to Other Post Employment Benefits (OPEB) Trust

Fund for Retiree Health Costs$1,000,000

Reduce Workers’ Compensation Fund Contribution 800,000

Increase in Non-LCFF Revenues $400,000

Staff Transfers to Restricted Funds 320,000

SDCOE Information Systems Credits

($666K Ongoing Debt Service Reduction; $865K One-time) 1,531,000

Use OPEB Trust Fund for Retiree Health Costs 767,000

Eliminate Bus Equipment Transfer 400,000

ESSC Non-Personnel Savings 100,000

Total $1,800,000 $3,518,000

Glossary ADA (Average Daily Attendance) - Average number of days students attending school, not just

enrolled. Excused absences do not count. Reported three times a year to State. REU (Reserve for Economic Uncertainties) - State required minimum reserve for school

districts based on enrollment. For CVESD REU is 3% of total expenditures. ($280M x 3%= $8.4M). District reserves used to provide funding for future expenditures, economic uncertainties, and other unanticipated costs.

Fiscal Obligations - Ability of District to meet minimum REU for current and next two years. LCFF (Local Control Funding Formula) - State funding formula for school districts. Consists of

base grant funding determined by ADA, and supplemental and concentration grants based on unduplicated student count.

Unduplicated Student Count - number of students at a district that are either foster youth, qualify for free/reduced priced meals, or English Learners. The higher the percentage at a district, the higher the funding for supplemental and concentration funding.

CalSTRS (California State Teachers Retirement System) - pension program for certificated staff. CalPERS (California Public Employee Retirement System) - pension program for classified staff. General Fund - District primary fund for operations. Consists of Unrestricted and Restricted

funds. Restricted Funds are primarily self-supporting and don’t require contribution from the unrestricted fund.

Contributions - transfer of unrestricted general funds to restricted programs to cover overspending of restricted funds. Primarily occurs in special education restricted program.

OPEB (Other Post Employment Benefits) - Health benefit for retirees up to age 65. SDCOE - San Diego County Office of Education, oversight agency for San Diego County schools.

Questions? Comments?