Budget Workshop

Prepared by: Shelley Stiles, Business ManagerPresented to the Board: June 10, 2015

West Sonoma County Union High School DistrictProposed 2015-16 BudgetMulti-Year Planning under LCFFFactors which will make the MYP less certain than in past:Projected Gap Funding how much is state appropriating? Using Department of Finance (DOF) in MYP53.08% for 2015-16, 37.40% for 2016-17, 36.70% for 2017-18Projected COLA applied to Target, not current yearProjected Supplemental Grant funding what will our student population look like in future? 27.26% for 2015-16Potential increases in mandated District contribution to STRS and PERS built into MYPAffordable Care Act unintended costs to employers - unknownIMPACT of LCFF on WSCUHSDLCFF based on grade level funding bands Target to be reached in 2020-21 an 8 year transitionWSCUHSD Target Funding of $9,281 (increases with COLA)Grade 9 12 Target Base:$8,578Adjustment of 2.6% for CTE:$ 223Supplemental Grant (27.26%):$ 480Estimated 2015-16 funding at $8,549 per ADAEstimated 2015-16 supplemental grant funding $719,568 calculated using 53.08% Gap funding rate equaling current year minimum proportionality 4.42% of total fundingLCFF funding and minimum proportionality wont be set until legislature and governor sets state budget for 2015-16

LCFF and WSCUHSDMulti-Year Projection - Agenda page 238

2015-16 Preliminary for Public Preview (6/10/2015) Budget Year 2015-16 Using May Revise Gap 53.08% 2016-17 Using DOF Gap 37.40% 2017-18 Using DOF Gap 36.70% Total Total Total COLA (enter percentage)1.02%1.60%2.48%GAP Funding Rate (enter percentage)53.08%37.40%36.70%ADA for LCFF purposes (current or prior year)1,988.94 1,963.36 1,935.36 6Total Revenue 24,922,593 24,049,359 24,392,755 67720Total Expenditures 24,154,603 24,445,353 25,146,725 20212122Excess (Deficiency) 767,990 (395,994) (753,970)22232329Total Transfers/Other Uses (225,000) (90,000) (85,000)29303031Net Increase (Decrease) 542,990 (485,994) (838,970)3132Fund Balance3233Beginning Balance 2,378,294 2,921,284 2,435,290 3334Audit Adjustment(s) - - - 3435Net Ending Balance 2,921,284 2,435,290 1,596,320 3536Components of Ending Balance:3637Reserves for Economic Uncertainties 733,338 738,011 758,902 3738Revolving Cash 6,850 6,850 6,850 3839Prepaid Expenses - - - 3940Assigned for Math III Textbook Purchases 120,000 - - 4041Assigned for Science Textbook Purchase 360,000 360,000 - 4142Assigned for unspent carryover - school site - - - 4243Assigned for difference in midGap to DOF Gap - 205,605 504,638 4344Assigned for deferred maintenance - - - 4445Assigned for tech. hardware replacement 60,000 90,000 120,000 4546Restricted Ending Balance 750,964 546,508 140,094 4647Unappropriated Ending Balance 890,132 488,316 65,836 4748Net Ending Balance 2,921,284 2,435,290 1,596,320 48Other Revenue Projections Detailed in MYP (page 238) and Assumptions (pages 239,240,241)Federal revenues estimated at 2014-15 amounts, onetime grants reduced, Title I eliminated, MediCal (MAA) unrestricted revenue reduced to zero and budgeted upon receipt Other State revenues: Lottery ($162 per ADA) adjusted for declining enrollment, One-time revenue for discretionary spending ($601 per ADA) from May ReviseLocal revenue includes $1,108,000 for Measure K parcel tax, donation estimates, payments from Consortium partner districts, SCOE CTE/ROP reimbursements, final 6 months of solar incentives

Expenditure ProjectionsDetailed in MYP (page 238) and Assumptions (pages 239,240,241)180 student days, 184 teacher work daysStep and Column increased costs1.0 Certificated FTE reduction in 2016-17 and 2017-18 (5 sections of teaching with no related savings in health benefits each year)Health Benefits increased costs 2015-16 based on estimates using actual rate changes; 7% annual, or a 9% premium increase for 2016-17 and 2017-18STRS and PERS rate increases based rates known at May revise Books and supplies based on site allocations plus $240,000 for Math I and Math II textbook adoptionsServices and Operating 2015-16 based on 2014-15 and adjusted for known changes, then increased 1% overall in 2016-17 and 2017-18 for Special Education placement needs, plus Routine Restricted Maintenance fully budgeted at required 3% contributionContributions reflect needs of restricted programs

One-time expenses Narrative pg. 11Math I and Math II Textbook purchase$240,000Technology 2 additional Chromebook labs$ 26,000Field rental and other athletic expenses (due to stadium construction)$ 75,000One-Time contribution to Deferred Maintenance$100,000One-Time contribution to Cafeteria Fund for program changes$ 30,000Assigned Reserves for Math III Textbooks (spring 2016)$120,000Assigned Reserves for Science Textbooks (purchase 2017)$360,000Balance to fall into the unrestricted ending balance$228,979TOTAL $1,179,979

Expenses Other Outgo & Transfers OutOther Outgo Transportation excess costs to JPA$878,006 100% of excess costs the JPA will not longer receive revenue direct from CDE beginning in 2015-16. Estimated revenue of $300,000 has been added to LCFF, with increase in expenses of $512,809 from 2014-15.Transfers Out to other fundsDeferred Maintenance Fund (14) $50,000 annually (no longer an assigned reserve)$35,000 annually for turf replacement$100,000 one-time transfer with one-time moneyCafeteria Fund (13)$75,000 for 2015-16; $70,000 for 2016-17; $65,000 for 2017-18$30,000 one time transfer for 2015-16 with one-time moneyTo be used to implement programmatic changes in effort to reduce future years contribution on permanent basisSupplemental expensesUnrestricted LCFF funding includes supplemental targeted funding for English Learners, free or reduced meal eligible, and foster youth. The estimated targeted funding for 2015-16 is $719,568 (4.42% of LCFF revenue)

Total Supplemental Grant expenses included in 2015-16 budget: $719,951

Detailed lists included in the LCAP and Budget Narrative on page 9 (see Agenda pg. 228)

Deficit Spending (line 31 of MYP on page 238)2014-15: $ 1,233,240 deficit projected2014-15: $ 542,290 positive NO DEFICIT projected2015-16: $ 485,954 deficit projected2016-17: $ 838,970 deficit projected

Ending fund balance for 2015-16, 2016-17, and 2017-18 remains positive above the 3% minimum reserveAs funding increases with the promises of LCFF and an improving economy, the deficit spending will naturally decrease; however, a plan will need to be developed to address this structural problem in the two subsequent years and be included with the 2015-16 First Interim ReportReserve Levels - Narrative pg. 8New Public Hearing requirement beginning 2015-16 Fund balances in excess of the 3% minimum reserve must have reasons identified

Combined Assigned and Unassigned/Unappropriated Fund Balance: $2,163,4703% minimum reserve = $733,338 Remaining Balance to Substantiate Need =$1,430,132Assigned for Math III Textbook Purchase Spring 2016 $ 120,000Assigned for Common Core Science Textbook Purchase Spring 2017 $360,000Assigned for Technology Hardware Replacement or New Purchase $60,000Unassigned/Unappropriated intended to cover deficit spending in 2016-17 $485,994Unassigned/Unappropriated intended to cover deficit spending in 2017-18 $404,138 Total Substantiated Need $1,430,132

Impact of LCFFAccountabilityEach district must adopt a Local Control and Accountability Plan (LCAP) for 2015-16 (including a 3 year plan) and beyondThe local school agency goals for the LCAP need to be based on eight state mandated priority areasAll goals in the LCAP have been aligned with the 2015-16 Proposed Budget as presented Goal and expenditures tied to the Supplemental funding calculation and the minimum proportionality percentage have been accounted for in the 2015-16 Proposed Budget as presented

Next StepsAdjust 2015-16 Budget with any changes necessary from Board and public input from tonights LCAP and Budget presentationsPresent the final 2015-16 Budget for approval on June 24, 2015Prepare the 45 Day Revise to 2015-16 Budget and present to the Board on August 19thWork on plan to address Deficit Spending Close books for 2014-15 and finalize 2015-16 beginning balancePresent 2014-15 Unaudited Actuals to Board on September 9thQuestions?