Alum Rock School District 2015/16 First Interim Report

Dr. Hilaria Bauer, Superintendent

Prepared and Presented By: Sandra J. Harrington,

Assistant Superintendent Business Services Accuracy, Transparency, Communication, Collaboration, Customer Service

Budget: What, Who, Why

General Fund: What Changed?

Assumptions: The Why

Multi-Year Projections & Assumptions

Areas of Interest, Opportunity, Recognition and Concern Questions

Agenda

AB1200 County Oversight (1992)

Defines Budget Process

Going Concern

Certification

Public Disclosure

County/State interventions

Why: Fiscal Accountability

Description Adopted 15/16 1st Interim 15/16

Difference

Beginning Fund Balance

$11,001,762. $14,677,796. $3,676,034.

Revenues $117,087,172. $116,122,010. <$965,162.>

Expenditures $97,272,902. $96,648,023. <$624,879.>

Contributions $19,355,851. $19,355,851. No change

Surplus $458,419. $118,136. <$340,283.>

Ending Fund Balance

$11,460,181. $14,795,932. $3,335,751.

General Fund (Unrestricted) – A

Comparative

Local Control Funding Formula (LCFF) Gap Funding Percentage: 53.08% to 51.52%

ARUESD: <$344,459>; Aptitud: $231,030

LCFF Net Loss <$113,429>

One-Time Discretionary and Mandated Reimbursements Discretionary $580 per ADA to $530 per ADA

ARUESD: <$762,352>; Aptitud $213,170

Mandated Block Grant <$304,569> To be adjusted/increased @ 2nd Interim

One-Time/Mandated Net Loss <$851,733>

Total Net Loss Revenue General Fund Unrestricted <$965,162>

Revenue Assumptions – The “Why”

LCFF - State Aid & EPA $83,225,910 72%

LCFF - Property Taxes $19,713,366 17%

Other State Revenues $7,275,526 6%

Other Local Revenues $5,907,208 5%

Alum Rock Union Elementary School District 2015-16 First Interim Unrestricted General Fund Revenue Sources

General Fund “Unrestricted” Revenue

LCFF - State Aid & EPA $83,225,910 63%

LCFF - Property Taxes $19,713,366 15%

Federal & State Categorical Grants $16,473,822 13%

Other State Revenues $5,778,810 4%

Other Local Revenues $5,949,137 5%

Alum Rock Union Elementary School District 2015-16 First Interim Combined General Fund Revenue Sources

General Fund “Combined” Revenue

Certificated Salaries $586,111 Increased FTE

Classified Salaries $193,492

Benefits <$250,111> Alignment to Salaries

Materials & Supplies $136,569

Operating Expenditures $801,697 Transfer Costs Capital Outlay

Capital Outlay <$2,046,225>

Transfer of Costs Operating Expenditures Classified FTE

Other Outgo $46,412

Expenditure Assumptions: The “Why”

Certificated Salaries 48.7%

Classified Salaries 13.7%

Employee Benefits 20.9%

Books and Supplies 4.8%

Services and Other Operating Expenditures

9.8%

Capital Outlay 3.5% Other Outgo (1,337,833)

-1.4%

2015-16 First Interim Unrestricted General Fund Expenditures by Object Code

General Fund “Unrestricted” Expenditures

Certificated Salaries 43.7%

Classified Salaries 13.0%

Employee Benefits 18.8%

Books and Supplies 7.1%

Services and Other Operating Expenditures

14.4%

Capital Outlay 2.6%

Other Outgo 492,566

0.4%

2015-16 First Interim Combined General Fund Expenditures by Object Code

General Fund “Combined” Expenditures

Description 1st Interim 2015-16 Projection 16-17 Projection 17-18

Beginning Balance $14,677,796 $14,795,930 $10,382,383

Revenues $116,122,010 $111,402,354 $112,660,145

Expenditures <$96,848,025> <$95,984,453> <$98,235,167>

Contributions <$19,155,851> <$19,831,448> <$20,428,401>

Surplus/<Deficit> $118,133 <$4,413,547> <$6,003,423>

Ending Fund Balance

$14,795,930. $10,382,383. $4,378,960.

General Fund (Unrestricted) Multi-Year Projections

LCFF Declining Enrollment 16/17 <$2.7 million> & 17/18 <$2.6 million>

Salaries Step & Column only

Does not include potential negotiated settlements Does not include attrition

Statutory Benefits STRS: Increased Costs 16/17 $799k & 17/18 $960k PERS: Increased Costs 16/17 $280k & 17/18 $510k

One time Dollars Educator Effectiveness <$954k> Williams Settlement <$2.4 million> Discretionary <$5.7 million>

Multi-Year Assumptions

Revenue

Enrollment/Attendance – T4 students

Attrition

Mandated Block Grant 2015/16 only

Expenditures

Affordable Care Act - Cadillac Tax 2017/18

E Rate Adjustment

2nd Interim Adjustments

Local Control Accountability Plan (LCAP) Areas of Interest, Opportunity and Recognition

Total Budgeted $19,007,163. Expenditures-to-Date $10,098,280

Goal 1: Provide all students with rigorous, challenging and innovative instructional program that prepare them for college-readiness and for excellence in the 21st century. Budgeted $5,875,999.

Goal 2: English Learners will have the

required skills to reach grade level standards/proficiency. Budgeted $135,000.

**Expenditures also included within goal 1

Goal 1: Teacher Recruitment, Support & Retention, Extended learning, Professional Development, Technology Expenditures-to-Date $3,664,211.

Goal 2: PD for EL support, CELDT, Data management system, Summer Bridge to Kindergarten Expenditures-to-Date $132,395.**

Local Control Accountability Plan (LCAP)

Areas of Interest, Opportunity and Recognition Total Budgeted: $19,007,163 Expenditures-to-Date $10,098,280.

Goal 3: Provide all students and families a safe, welcoming, and caring environment conducive to learning. Budgeted $11,639,010.

Goal 4: Engage Stakeholders in a

meaningful way that promotes a positive learning, working, and community environment that is geared toward student achievement. Budgeted $1,108,196.

Goal 3: Custodial support, PBIS, Mariachi & Jazz, Nurses, Library Assistants, Health Assistants, Music Program, After School Sports, Administrative Support Middles Schools, Facilities Expenditures-to-Date $5,433,902.

Goal 4: Parent/Community Involvement

Opportunities, Parent Outreach & Training, Translation, Parent University, Community Liaisons for all schools Expenditures-to-Date $943,339.

0

2000

4000

6000

8000

10000

12000

14000

2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

13323 13483 13456 13003 12668 12541

12077 11777 11328 10923

Enro

llme

nt

Fiscal Year

Alum Rock Union Elementary School District Chart 1: Ten Year Enrollment History

Declining Enrollment: Historical Trends

Local Control Funding Formula

Declining Enrollment = Loss of Revenue

2016/17

Projection of student loss 278

Estimated LCFF funding loss <$2,758,316>

2017/18

Projection of student loss 261

Estimated LCFF funding loss <$2,692,998>

Declining enrollment: Future & Ongoing Concern

Declining Enrollment

Affordable Care Act

Professional Development

Technology Replacement

Expansion of TK for 4 y/o

Attrition

Health Plan

Facilities

Areas of Concern/Opportunity

January Governors Budget Projections

Budget Development Begins

Collaborative Effort – Align with LCAP

2nd Interim

LCAP – continued Collaboration

May Revise

Public Hearing

Budget Adoption

Next Steps – Budget Timeline

Questions Thank you