Second Interim ReportContext Slides
Scott S. Price, Ph.D.
March 13, 2018
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Budget Calendar
Governor’s January Budget
Second Interim Budget
School Budget
Development
Governor’s May Revise
Final Budget
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Ending Balance Reserves
3
Second Interim Updates – 2017-18 to 2019-20(including Governor’s January Budget Proposal)
Full Funding ofLocal Control Funding Formula
$137 m
Discretionary Funds($295 per student)
$140 m
Raising Cost of Living (2.15% to 2.51%)
$40 m
Health Care Agreement Savings
~$200 m
Fund Other Post Employment Benefits (OPEB)
$150 m= one-time funds 4
Each New Budget Adds a Subsequent Third Year
2017-18 2018-19 2019-20
2020-212018-19 2019-20
2017-18 Budget
2018-19 Budget
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2017-18 Budget Required a Fiscal Stabilization Plan
2017-18 2018-19 2019-20
2020-212018-19 2019-20
2017-18 Budget
2018-19 Budget
FiscalStabilization
Plan
6
The 2018-19 Budget Will Require an AdditionalFiscal Stabilization Plan for the Year 2020-21
2017-18 2018-19 2019-20
2020-212018-19 2019-20
2017-18 Budget
2018-19 Budget
FiscalStabilization
Plan
FiscalStabilization
Plan 7
Growth in LCFF Revenues
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Growth in LCFF Revenues
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Enrollment Decline
556,115 542,433
528,065
513,875 500,782
484,830
469,467 457,111
350,000
400,000
450,000
500,000
550,000
600,000
2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21
Enrollment
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Final Budget Second Interim
Fiscal Stabilization Plan ElementsAdopted 2017-18
Adopted 2018-19
Adopted 2019-20
Revised 2017-18
Revised 2018-19
Revised 2019-20
Central Office Reduction and Efficiencies $ 79.9 $ 79.9 $ 79.9 $ 79.9 $ 79.9 $ 79.9 Implemented in 2017-18 - Ongoing
Central Office Clerical Reduction allocated to school sites
$ (4.1) $ (4.1) $ (4.1) $ (4.1) $ (4.1) $ (4.1) Implemented in 2017-18 - Ongoing
Resolution of Disproportionality Issue $ 20.0 $ 20.0 $ 20.0 $ 20.0 $ 20.0 $ 20.0 Implemented in 2017-18 - Ongoing
Shifting of Telecom Maintenance Funding $ 4.4 $ 4.7 $ 5.0 $ 4.4 $ 4.7 $ 5.0 Implemented in 2017-18 - Ongoing
Change in RRGM Funding $ 5.0 $ 5.0 $ 5.0 $ 5.0 $ 5.0 $ 5.0 Implemented in 2017-18 - Ongoing
Elimination of scheduled Other Post Employment Benefits (OPEB)
$ - $ 150.0 $ 200.0 $ - $ 150.0 $ 200.0 Assign portion of OPEB contribution for
2018-19 and 2019-20
Redirection of School Site Carryover $ - $ - $ 246.0 $ - $ - $ - Postpone until 2020-21
Equivalent to Class Size Increase by 4 (approximately 1,000 FTE)
$ - $ - $ 76.0 $ - $ - $ - Reversed at First Interim
Total Fiscal Stabilization Plan $ 105.2 $ 255.5 $ 627.8 $ 105.2 $ 255.5 $ 305.8
Completed
Reversed
Fiscal Stabilization Plan
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Other Considerations
• Second Interim “positive” certification is temporary.
• A Fiscal Stabilization Plan will be needed in June 2018.
• Collective Bargaining is ongoing and not reflected in Second Interim.
• Federal funding uncertainties exist.
• May Revision changes are still anticipated.
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Questions?
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