Irvine Unified School District Elementary Schools ... - IUSD
IRVINE UNIFIED SCHOOL DISTRICT - IUSD
Transcript of IRVINE UNIFIED SCHOOL DISTRICT - IUSD
Agenda
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Discussion and recommendation for approval of 2015-16 Local Control
Accountability Plan (LCAP)
Overview of 2015-16 Final State Education Budget
Discussion and recommendation for approval of IUSD 2015-16 Budget
2015-16 Budget Development Process
Estimated Local Control Funding Formula (LCFF) allocations
Detailed Budget Assumptions
2015-16 “Initial” Budget Financial Projections
Multiyear Projections
Updates to the LCAP
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Since the June 2 public hearing, cabinet has made several minor revisions to the
Local Control Accountability Plan (LCAP):
Increased funding to support professional learning for classified
instructional staff
Up to eight hours of training beyond regular working hours
Additional administrative assistant support at the district level
.25 FTE Math and Science
.50 FTE Student Support Services
LCAP revisions to enhance readability
Renumbering of LCAP actions
Incorporating an index summarizing LCAP actions
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Updates to the LCAP
This past May the State significantly revised its budget projections providing
IUSD with approximately $13 million of additional one-time funding and $10
million of ongoing funding. Throughout the summer of 2015, staff will continue
to plan actions to support LCAP goals and to prioritize proposed actions
received in 2014-15 from stakeholder feedback.
Planned actions for summer 2015:
Continue to build on our five focus areas
Direct Student Instructional Support
Mental Health Support
Increase School Site Funding
California Standards Aligned Materials and Support
Equity and Safety
Seek feedback from stakeholders on additional actions
Update School Board throughout summer
Overview of 2015-16
State Education Budget
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On June 16, the Governor announced an agreement with the Legislature on a
2015-16 State Budget
The central area of contention remains the availability of additional state
revenues based on differences between the Department of Finance (DOF)
and the Legislative Analyst’s Office (LAO)
In May the Legislative Analyst’s Office (LAO) forecast state revenues of
approximately $3 billion more than the Governor’s May Revised 2015-16
State Budget Proposal
Legislative Budget Conference Committee reached a compromise with
Governor’s Administration, agreeing to stay within the limits of the
Department of Finance’s lower revenue projections
California General Fund Revenues
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$106,000
$108,000
$110,000
$112,000
$114,000
$116,000
$118,000
$120,000
$122,000
$124,000
$126,000
2015-16 2016-17 2017-18
LAO Administration
$120.5
$113.3
$118.5
$124.4
$122.2
$116.3
State General Fund Revenues(In Billions)
Highlights of 2015-16
State Education Budget
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The 2015-16 Final State Budget includes increases of approximately:
$100 million to augment State funded Preschool
$165 million to augment State funded Childcare
$500 million in one-time funding for a teacher effectiveness block grant
Although very few details have been provided, these allocations may reduce
the May Revise allocations for the one-time mandate reimbursement and may
reduce the LCFF allocation
2015-16 Budget Development
Process
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On May 14, 2015, the Governor released the May Revision to his 2015-16
January Budget proposal
Due to timing constraints and in the absence of a Final State Adopted Budget,
Districts typically build Budgets based on the Governor’s May Revision
Budgets are updated throughout the year
First Interim – December
Second Interim – March
Budget assumptions are developed with guidance from:
The Orange County Department of Education (OCDE)
School Services of California (SSC)
The California Association of School Business Officials (CASBO)
A variety of other sources…
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Recap of 2015-16 May Revise Assumptions
included in IUSD’s Budget
Over $6 billion added to 2014-15 and 2015-16 due to increases in State revenues
Additional $3.3 billion in education funding for 2013-14 and 2014-15 – treated as “one-time”Ongoing increase in Proposition 98 of $2.7 billion in 2015-16
Governor’s proposal allocates $2.4 billion of prior years “one time” revenues to the repayment of prior years mandate reimbursement, bringing the total for 2015-16 to $3.5 billion or $601/per ADA
For IUSD this represents approximately $18.4 million (increase of approximately $13 million from January State Budget Proposal)
Governor’s proposal allocates $2.1 billion of the ongoing increase to the continued implementation of the Local Control Funding Formula (LCFF)
Sufficient to eliminate approximately 53% of the remaining gap in LCFF funding statewideFor IUSD represents $28.9 million in 2015-16 “gap” LCFF funding (increase of approximately $10 million from January State Budget Proposal)
Estimated LCFF Gap Funding per
ADA
$6,702
$7,604
$7,707
$7,883
$5,600
$6,100
$6,600
$7,100
$7,600
$8,100
$8,600
2014-15 2015-16 2016-17 2017-18
Est Funding - DOF Est. Funding - SSC
53.08% of Gap$28.9M Increase 12.62% of Gap
$4.0M Increase
$8,229
29.97% of Gap$21.4M Increase
37.40% of Gap$11.8M Increase
$7,944
18.24% of Gap$6.7M Increase
36.74% of Gap$10.5M Increase
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IUSD Estimated LCFF Funding
2015-16 thru 2017-18
IUSD LCFF2015-16
Projection
2016-17
Projection
2017-18
Projection
LCFF Target(Actual Target to be Reached in 2020-21)
$265,945,160 $282,042,200 $302,861,823
LCFF Floor(2012-13 Actual Funding Adjusted for ADA Growth &
any LCFF Funding Received)
$211,442,034 $250,468,540 $266,102,914
LCFF Gap =(Difference Between Target & Floor)
$54,503,126 $31,573,660 $36,758,909
Gap Funding Rate =(% of Gap to be Funded)
53.08% 12.62% 18.24%
Gap Funding Amount =(Anticipated Additional Funds)
$28,930,259 $3,984,596 $6,704,825
Total LCFF Funding = $240,372,293 $254,453,136 $272,807,739
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$0
$50
$100
$150
$200
$250
2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15Projected
2015-16Projected
2016-17Projected
2017-18Projected
Millions
IUSD’s Property Tax Revenue -
History
$183.6
million
$193.6
million
$206.5
million
$216.4
million
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2015-16 Revenue Budget
Assumptions
Description 2015-16 2016-17 2017-18
ADA Growth 976 1403 1592
COLA 1.02% 1.60% 2.48%
GAP Funding Rate 53.08% 12.62% 18.24%
Property Tax Growth 7% 7% 5%
RIMD Revenues $4,854,939 $4,952,038 $5,051,079
Redevelopment Revenues $750,000 $750,000 $750,000
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2015-16 Expenditure Budget
Assumptions
Description 2015-16 2016-17 2017-18
Step and Column Increases 2% 2% 2%
Additional Teacher FTE – Growth 30 50 53
Average New Teacher Cost $75,208 $76,712 $78,246
PERS Rate 11.847% 13.050% 16.600%
STRS Rate 10.73% 12.58% 14.43%
Health Insurance Contribution $10,143 $10,143 $10,143
Workers Compensation Rate 3.00% 3.00% 3.00%
Utility Increases 5% 5% 5%
Special Education Underfunding $28,843,468 $30,073,049 $31,644,776
Deferred Maintenance Transfer $1,500,000 $0 $0
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Updated Budget Prioritization Process
(Utilization of Ongoing and One-Time Resources)
April 2015
Study Session
Description $ in millions $ in millions
Ongoing Available Funding $5.1 $15.1
One-Time Available Funding
2014-15 Projected Unrestricted EFB: $28.4 $34.1
State Mandated Reserves @ 2% <$6.3> <$6.1>
Contingency Reserve (approved in 2014-15 LCAP) <$5.0> <$5.0>
2014-15 Deferred LCAP Allocation <$2.0> -------
2014-15 Site and Department Carryover <$4.0>
One-Time Available Reserves in 2015-16 $15.1 $19.0
One-Time Mandate Reimbursement $5.1 $18.4
Updated
May Revise
Updated Projections based on 2015-16 May Revise
2015-16 Expenditure Budget
Assumptions – LCAP Prioritization
Summary
DescriptionOngoing
AllocationOne-Time Allocation
2015-16 2015-16 2016-17
Summary by Major Category:
Direct Student Instructional Support: $2,190,000 $496,760
Mental Health Support: $565,457
School-Site Funding: $365,000 $610,000
Standards Aligned Materials: $307,027 $5,169,191 $3,250,000
Equity and Safety: $1,283,211 $3,903,991
Totals: $4,710,695 $10,179,942 $3,250,000
Unallocated: $10,389,305 $23,970,059
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2015-16 Adopted Budget & Multiyear
Projected Unrestricted General Fund
Description2014-15
Estimated
2015-16
Projected
2016-17
Projected
2017-18
Projected
Total Revenues $218,091,489 $271,824,806 $268,694,412 $287,201,944
Total Expenditures ($193,274,909) ($210,346,986) ($217,803,779) ($229,012,437)
EXCESS (DEFICIENCY) $24,816,580 $61,477,820 $50,890,633 $58,189,507
Other Sources/Uses ($36,059,880) ($41,251,545) ($39,921,288) ($41,618,423)
Net Increase/(Decrease) ($11,243,300) $20,226,275 $10,969,345 $16,571,084
Beginning Balance $45,702,340 $34,459,040 $54,685,315 $65,654,660
Projected Ending Balance $34,459,040 $54,685,315 $65,654,660 $82,225,744
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2015-16 Adopted Budget & Multiyear
Components of Ending Fund Balance
Description2014-15
Projected
2015-16
Projected
2016-17
Projected
2017-18
Projected
Estimated Ending Fund
Balance$34,459,040 $54,685,315 $65,654,660 $82,225,744
Components of Ending Fund
Balance:
Revolving Cash/Stores $525,000 $525,000 $525,000 $525,000
State Recommended
Minimum DEU$5,537,564 $5,651,945 $5,939,785 $6,023,843
Contingency Reserve $5,000,000 $5,000,000 $5,000,000 $5,000,000
Deferred LCAP Allocation $3,250,000
Site Carryover $4,000,000 $4,000,000 $4,000,000 $4,000,000
Other Assigned $19,396,476 $36,258,370 $50,189,875 $66,676,901
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2015-16 Adopted Budget & Multiyear
Unrestricted General Fund
With Unallocated Allocations
Description2014-15
Estimated
2015-16
Projected
2016-17
Projected
2017-18
Projected
Total Revenues $218,091,489 $271,824,806 $268,694,412 $287,201,944
Total Expenditures ($193,274,909) ($210,346,986) ($217,803,779) ($229,012,437)
Currently Unallocated Ongoing ----------------- $10,389,305 $10,389,305 $10,389,305
Currently Unallocated One-Time ----------------- $27,970,059* $3,250,000
Revised Total Expenditures ($193,616,910) ($248,706,350) ($231,443,084) ($239,401,742)
EXCESS (DEFFICIENCY) $24,816,580 $23,118,456 $37,251,328 $47,800,202
Total Other Sources/Uses ($36,059,880) ($41,251,545) ($39,921,288) ($41,618,423)
NET INCREASE (DECREASE) ($11,243,300) ($18,133,089) ($2,669,960) $6,181,779
Beginning Balance $45,702,340 $34,459,040 $16,325,951 $13,655,991
Ending Balance $34,459,040 $16,325,951 $13,655,991 $19,837,770
* Unallocated amount in 2015-16 includes $4 million in site carryover from 2014-15 19
2015-16 Adopted Budget & Multiyear
Components of Ending Fund Balance
With Unallocated Allocations
Description2014-15
Projected
2015-16
Projected
2016-17
Projected
2017-18
Projected
Estimated Ending Fund
Balance$34,459,040 $16,325,951 $13,655,991 $19,837,770
Components of Ending Fund
Balance:
Revolving Cash/Stores $525,000 $525,000 $525,000 $525,000
State Recommended
Minimum DEU$5,537,564 $6,419,132* $6,212,571* $6,231,629*
Contingency Reserve $5,000,000 $5,000,000 $5,000,000 $5,000,000
Deferred LCAP Allocation $3,250,000
Site Carryover $4,000,000
Other Assigned $19,396,476 $1,131,819 $1,918,420 $8,081,141
* State minimum reserves increased due to proposed expenditure increases 20
Unknowns/Challenges
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Proposition 30 continues to be a “temporary” tax generating approximately
$7- 8 billion in revenue annually
Recent gains in Proposition 98 have been largely driven by the repayment of
the maintenance factor
At its peak, maintenance factor reached $11.2 billion
Maintenance factor likely eliminated by 2016-17
Annual growth in Proposition 98 likely reduced to 2% - 4%
CalPERS and CalSTRS increases
LCFF was intended to restore 2007-08 purchasing power by 2020-21
By full implementation $4.5 billion in pension cost increases funded by
districts out of LCFF…..
Increasing pressure to increase funding for non-Proposition 98 programs