2013-14 1st Interim Report & Budget

Outlook

Basic Budget Assumptions 2012-13

All budget decisions are made after answering the question: “How does this impact student achievement?”

The budget must maintain fiscal solvency.

Budget decisions should reflect sustaining programs and services for the long term.

Basic Budget Assumptions - State 2013-14

LCFF is the new game in town.Discussion about revenue is in both

“todays” dollars and “target” dollars.“Target” dollars are only a projection of a

future and moving goal.The exact amount of “todays” revenue is

still a projection and will be for at least one more month.

The 1st Interim Report reflects the best knowledge we have about the new LCFF.

Basic Budget Assumptions - continued

K-3 Class Size Reduction is now a part of the “base grant” with a new class size of 24.This means that there will be a transition from our

current class size of 20

QEIA continues and is now an "add-on” to our LCFF funding. It is scheduled to be discontinued at the end of the

2014-15 school year.

Home-to –School Transportation funds are fixed at a reduced rate and added to our base.

Basic Budget Assumptions - continued

All other state categorical programs have been swept into the base including EIA.

The budget is based on 2012-13 year ADA

Much of our new funding comes from “supplemental” and “concentration” grants based on an unduplicated count of certain categories of students.

Basic Budget Assumptions - continued

It takes all of our LCFF base funding, all of our supplemental funding and a large portion of our concentration funding just to maintain what we currently do now.

Our current concentration percentage is 94% with almost 250 students still outstanding.

There are no guarantees about future funding bringing us up to the “target”. Unanswered is what happens when the sales and income taxes end.

Revenues

Most of the District's General Fund revenue is generated from the District's new LCFF. The LCFF provides a base grant, a supplemental grant and a concentration grant. The base grant is based on a state-determined dollar amount multiplied by the average number of students who are in attendance throughout the school year. The supplemental and concentration grants are based on the enrollment of students in particular categories such as poverty level, English learners, foster children and other factors. Public education—unlike any other public agency—receives most of its revenue based on the population it serves

General Fund Revenue(In Millions)

LCFF $28.5Federal 5.0Other State 4.6Other Local 2.3Total Revenue $40.5

Revenue Limit

Other Local

Other Local

Other State

Federal

LCFF – Old Revenue Limit

71% of the District’s revenue is generated from the new LCFF.

Expenditures

General Fund Expenditures

(In Millions)

Most of the expenditures of the District are committed to salaries and benefits for employees of the District. It takes people to teach students, and in Cutler-Orosi Joint Unified School District, 79% of the District's budgeted expenditures are for employees.

Certificated Non-Management Salaries $15.1Classified Non-Management Salaries 5.2Management Salaries 1.8Employee Benefits 8.2Books and Supplies 2.5Operating 3.9Capital/Other 1.7Total Expenditures 38.3

Classified Salaries

Certificated Salaries

Other

Books and Supplies

Employee Benefits

Operating

Management

Contributions to Restricted Programs

Special Education (Federal) $ 255,035Special Education (State) $ 96,754Special Education Preschool $ 11,685Routine Repair & Maint. $1,173,693

This program has been made an add-on to our base grant and is no longer a categorical program

Home to School Trans. $ 527,901Total projected cost $1,173,693

1

2

3

Page 2

4

5

Page 3

6

7

8

Page 11

9

10

Page 12

11

1213

Page 20

14

15 combined

Page 21

Page 98

17

1819

Page 109

21

20

Page 110

LCFF appears to be helping us

The current year is looking good overall

Our multi-year projection is positive

Our certification to the State is positive

As always, the actual picture will not be known until it’s all over. More LCFF information is coming soon.

We will be working like “dogs” to make adjustments and new information becomes available with both LCFF for this year and next as well as LCAP and the Affordable Healthcare Act.