JUNE 20, 2019

2019-20 Annual BudgetDr. Leslie Barnes, Chief Business Officer

AgendaBusiness Services – Budget Department

• State Adopted Budget• Impact on PUSD

• Revenues• Enrollment Decline Impact on COLA

• Expenditures• Update on Prior Year FSP• New Expenditures/Impact of Measure J

• Multi-Year Projection• Assumptions• Reductions included in 2020-21 and 2021-22

• Concerns• Best practices/Recommendations• 2020-21 Budget Development

Our Children • Learning Today • Leading Tomorrow

State Budget Revenues

Business Services – Budget Department

• The State Budget is on the Governor’s Desk• Cost of Living Adjustment (COLA) 3.26% approximately $4

million

• Pension Relief • STRS 18.13% to 17.1% (-1.03%)• PERS 20.733% to 19.721% (-1.012%)

• Budget Includes May Revise Proposal• STRS 16.70% (-1.43%), PERS 20.733%

• Special Education• Created statewide base rate of $557 per ADA, PUSD

currently at $513.85• Increase of $42.15 per ADA approximately $715,818

• Grants for districts serving three and four year-olds with IEPs

2019-20 Unrestricted RevenuesBusiness Services – Budget Department

• State Revenue LCFF (Per std funding) $ 159.5 million

• Federal Revenue $ .04 million

• Other State Revenue $ 3.0 million

• Local Revenue (Includes Sales Tax) $ 10.3 million

Total Revenues $ 172.8 million

2019-20 ExpendituresBusiness Services – Budget Department

• Certificated Salaries $ 58.9 million• Classified Salaries $ 18.3 million• Employee Benefits $ 38.0 million• Materials & Supplies $ 3.3 million• Contracted Services $ 21.3 million• Capital Outlay/Other Outgo $ .7 million• Indirect Costs/Interfund Trans $ -3.5 million• Contributions to Restricted Programs $ -39.9 million

Total Expenditures $179.0 million

Reflects Deficit Spending of $6.2 million

Why Deficit Spending ?

Business Services – Budget Department

• COLA 3.26% $ 4.0 million

• Loss in State Funding Due to Decline (-576.51) $ -5.6 million

• Increase in Pension & Health & Welfare $ -2.9 million(does not include automatic step & column or longevity pay increases)

• Net Impact to COLA $ -4.9 million

Increased CostsBusiness Services – Budget Department

• Employee Salary & Benefits• Increases to employer contribution for pensions

• STRS .082%• PERS 1.66%

• District Proposal of 2% bonus for 2018-19 and 3% on-going salary increase for 2019-20 included in the budget.

• Contributions to Restricted Programs• Ongoing Major Maintenance contribution from 2% to 3% • Special Education

Measure JBusiness Services – Budget Department

• Priority Areas

1. Fiscal Stability• Maintain adequate reserves as required by law

2. Continuity of Programs• Restore and maintain existing educational programs that

would otherwise face reduction/elimination, including but not limited to, the following programmatic areas; International Baccalaureate, Duel Language Immersion, Science/Technology/Engineering/Arts/Math (STEM/STEAM), Visual Performing Arts, and International Academy

3. Other District projects and programs that benefit students

Measure JBusiness Services – Budget Department

Measure J Revenue of $5 million included in the Budget

Funds were used for two of the three Priority Areas

1. Fiscal Stability• Funds partially used to off-set loss of ADA revenue: • District reserves 2019-20 7.13% 2021-22 3.04%

2. Continuity of Programs• Potentially Restore 3 Coordinator positions• Able to maintain all existing programs, IB, DLIP, STEM &

STEAM, Visual Performing Arts and International Academy

Prior Year FSP & New PositionsBusiness Services – Budget Department

• The Prior Year FSP has been fully implemented with two exceptions:• Elimination of the Warehouse• Increased Rental Income from Charter Schools

• General Fund Unrestricted• Only 1.11 FTE in additional positions

• Senior Admin Assistant • Department cut their budget in other areas to

accommodate this much needed position• .11 is net effect of FTE changes to several

positions at the site level

New PositionsBusiness Services – Budget Department

• Restricted Funds• The only positions relative to District Administration are:

• M&O Director (RRM)• TOSA II – Data Facilitator (Magnet, Learns, LPSBG)• All others are site related; such as additional 5.4 FTE to

ensure all sites have a full time Academic Coach • Special Education

• Net of 6.45% additional positions• Admin Procurement/Contracts• Teachers 1.5 FTE• Instructional Aide .75 FTE• Nurse .20 FTE• 3 Coordinator I FTEs potentially restored through Measure J

• Fund 67• Director of Risk Management

Multi Year ProjectionAssumptions

Business Services – Budget Department

2019-20 2020-21 2021-22

Funded ADA 15,466 15,079 14,775

Enrollment 16,008 15,736 15,437

Unduplicated Count

10,051 9,951 9,553

Rolling 3 Year Avg 62.89% 62.84% 62.88%

Special Ed Contribution

$32.5 $34.9 $36.4

Reduction Included in Report (FSP)

Business Services – Budget Department

Description Fiscal Year 2020-21 Fiscal Year 2021-22 Total

Reduce 10 FTE Teachers based on Decline $1,069,780 $1,069,780 $2,139,560

Reduce Contracted Services $500,000 $500,000 $1,000,000

Reduce Materials & Supplies $500,000 $500,000 $1,000,000

Capture Efficiencies in Custodial Services $883,424 $883,424 $1,766,848

Shift 7% of Custodial Costs to RRM $575,144 $575,144 $1,150,288

Capture Prior Year FSP cuts not yet implemented $485,611 $485,611 $971,222

Totals $4,013,959 $4,013,595 $8,027,918

Areas of ConcernBusiness Services – Budget Department

• Worker’s Compensation• Growing costs

• Risk Manager• Comprehensive plan to remedy

• Special Education• Growing costs• Comprehensive plan regarding in-house v contracted

services

• Salary & Benefits• Future salary increases for employees• Growing benefit costs, district pays 95% of all costs• Minimum wage increase, impact of salary schedule

• Declining enrollment and too many sites open

Questions & Comments

Our Children • Learning Today • Leading Tomorrow