long beach unified school district 2013-14 proposed budget june 18, 2013
TRANSCRIPT
Long Beach UnifiedSchool District
2013-14 Proposed BudgetJune 18, 2013
Governor’s
Budget
January
May Revise
LBUSD Budget Adopti
on
First Interi
m
Second Interi
m
Estimated
Actuals
Independent Audit
Report
Unaudited
Actuals
May
June December
March June
September
December
Budget and Financial Reporting
A Two-Year ProcessState
Budget
Governor’s
Budget
January
May Revise
LBUSD Budget Adopti
on
First Interi
m
Second Interi
m
Estimated
Actuals
Independent Audit
Report
Unaudited
Actuals
May
June December
March June
September
Budget and Financial Reporting
A Two-Year Process
December
State Budget
Governor’s
Budget
January
May Revise
LBUSD Budget Adopti
on
First Interi
m
Second Interi
m
Estimated
Actuals
Independent Audit
Report
Unaudited
Actuals
May
June December
March June
September
Budget and Financial Reporting
A Two-Year Process
December
State Budget
Budget Adoption Based On:
1)Governor’s May Revision
2)Guidance from Los Angeles County Office of Education
State Budget Issues• Budget passed by Legislature June 14,
trailer bills and Governor’s signature are still pending.– Due to the timing of the state budget,
LBUSD budget based on May Revise• Proposition 30 funding has significantly
improved State Revenues• Proposition 98 amount for schools
actually decreases, but only through manipulation of the formula. Proposition 98 Spending at $55.3B for 2013-14 (down from $56.5B in 2012-13).
Governor’s May RevisionState Budget – Major Issues
• Local Control Funding Formula• State Revenues• Cash Deferrals• Common Core Implementation
Governor’s May RevisionState Budget – Major Issues
• Local Control Funding Formula• State Revenues• Cash Deferrals• Common Core Implementation
LCFF - May Revise versus Budget Compromise -Effect on LBUSD
$6,800$7,300
$1,051
$523 $620
$1,714
$0
$2,000
$4,000
$6,000
$8,000
$10,000
Governor's Proposal Compromise
Base Grant Supplemental Grant Concentration Grant
$9,037 $8,971
LCFF - May Revise versus Budget Compromise -Effect on District with High Students in Need (90%)
$6,800$7,300
$1,314
$952 $1,278
$2,142
$0
$2,000
$4,000
$6,000
$8,000
$10,000
Governor's Proposal Compromise
Base Grant Supplemental Grant Concentration Grant
$9,894 $9,892
LCFF - May Revise versus Budget Compromise -Effect on District with 100% Students in Need
$6,800$7,300
$1,460
$1,190 $1,643
$2,380
$0
$2,000
$4,000
$6,000
$8,000
$10,000
Governor's Proposal Compromise
Base Grant Supplemental Grant Concentration Grant
$10,370 $10,403
LCFF - May Revise versus Budget Compromise -Effect on District with Low Students in Need (10%)
$6,800$7,300
$146$238
$0
$2,000
$4,000
$6,000
$8,000
$10,000
Governor's Proposal Compromise
Base Grant Supplemental Grant
$7,038$7,446
LCFF - May Revise versus Budget Compromise -Effect on District with No Students in Need
$6,800$7,300
$0
$2,000
$4,000
$6,000
$8,000
$10,000
Governor's Proposal Compromise
Base Grant
Governor’s May RevisionLCFF – Accountability
• Local Control Accountability Plan (LCAP)• Three-year plan; updated and due July 1• Addresses actions and progress toward
state priorities:– Williams Compliance– State-adopted Content Standards– Parental Involvement– Student Achievement– Pupil Engagement– School Climate– Access to a Broad Curriculum– Student Outcomes
Governor’s May RevisionState Budget
• Local Control Funding Formula• State Revenues• Cash Deferrals• Common Core Implementation
Governor’s May RevisionState Budget – State Revenues
• $97.2 B (Dept of Finance)• $100.4 B (Legislative Analyst Office)• Additional revenue assumed by LAO
is considered volatile, due to its reliance on capital gains and the stock market.
Governor’s May RevisionState Budget
• Local Control Funding Formula• State Revenues• Cash Deferrals• Common Core Implementation
Governor’s May RevisionState Budget – Cash Deferrals
• $4.92 B in reduction of Inter-year Deferrals
• Compromise reduces amount to $4.27 B
• Will significantly reduce likelihood of TRANS borrowing in 2013-14.
Estimated Effect of "Cash Deferrals" (in mi l l ions)
$0
$50,000,000
$100,000,000
$150,000,000
$200,000,000
$250,000,000
$300,000,000
$350,000,000
$400,000,000
$450,000,000
July August
September October
November December January February
March April May June July August
Statutory Method Current Method Budget
After End of Fiscal Year
Governor’s May RevisionState Budget
• Local Control Funding Formula• State Revenues• Cash Deferrals• Common Core Implementation
Governor’s May RevisionState Budget – Common Core
• $1.25 B allocated for Implementation of Common Core
• Funding designated for– Technology– Instructional Materials– Professional Development
LBUSD Budget Assumptions
• Declining Enrollment projected at 1.5% per year.
• Does not include LCFF revenue projections. Current estimate of LCFF is approx. additional $19M.
• Revenue Assumptions:– COLA of 1.56% in 2013-14, 1.8% in
2014-15, and 2.2% in 2015-16.– Federal Revenues reduced
• Sequestration – 5.9% cut in all federal funding
• General Fund carrying costs
LBUSD Budget Assumptions
• Expense Assumptions:– Step and Column is only budgeted
salary increase.– Total Health Benefits projected to
increase 6.2% in 2013-14; 7.0% in 2014-15 and 2015-16.
– Utilities projected to increase 3% in 2013-14, 2014-15 and 2015-16.
Multi-Year Proj. - Unrestricted General Fund Balance (in mi l l ions)
$82.9
$42.7
($4.7)
($65.1)
$61.7
$33.3
($8.1)
$48.90
$52.30
($80)
($60)
($40)
($20)
$0
$20
$40
$60
$80
$100
2012-13 2013-14 2014-15 2015-16
No LCFF Adding 13-14 LCFF Revenue Adding Ongoing LCFF Revenue
SUMMARY
• Many Unknowns– LCFF is biggest unknown; details
will be sorted out in coming months.
• LBUSD Structural Deficit remains.
• State’s commitment to reducing deferrals will lessen cash flow demands, but will not provide additional budget authority.