SBUSD Budget Workshop Fall 2014-15
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Transcript of SBUSD Budget Workshop Fall 2014-15
SBUSD BUDGET WORKSHOP FALL
2014-15 Saturday, September 27
South Bay School Library (9-11AM)
Presented By:
Gary Storts, Superintendent
Johnna Emery, Business Manager
Lynette Kerr, Director of Fiscal Services at HCOE
SBUSD MISSION STATEMENTTo prepare today’s student to succeed in tomorrow’s world by doing the following:
• Provide a safe, healthy and nurturing school environment
• Teach the skills necessary to prepare students for success in high school and beyond
• Instill in students a sense of personal and civic responsibility and global awareness
• Provide students with problem solving skills to thrive in a technological world
• Instill in students a desire to be lifelong learners
TODAY’S BUDGET WORKSHOP AGENDA -1. Lynette Kerr – Director of Fiscal Services at HCOE
2. Process and Budget Timelines
3. SBUSD Budget – Past, Present and Future Projections
4. Pressures on the Budget
BUDGET PROCESS AND TIMELINE Building the SBUSD budget is a year around event, beginning in October
with enrollment projections, and ending the next October when the district and school sites must have revised budgets. All activities are influenced by the CA budget process, budget “pressures” which vary from year to year, and change in employee compensation.
October – December Enrollment projections for next school year are prepared
Business Manager uses current enrollment data & trending information to predict ADA Business Manager provides best estimate of revenues Enrollment projections drive allocations 1st Interim Report Due to HCOE
BUDGET PROCESS TIMELINE …
January - February Start of State’s budget process Governor releases state budget document SBUSD gets first look at projected revenues (formal analysis) State legislature begins budget process
March - May 2nd Interim Report due to HCOE Governor’s Office issues “MAY Revise” – more accurate look at CA revenues District Office revises SBUSD budget CA Legislature continues budget discussion
BUDGET PROCESS TIMELINE … May – July
Legislature continues budget discussion 3rd Interim (if required) Constitutional deadline for CA Legislature to pass state budget bill Governor must sign or veto the CA budget bill within 12 days of legislative action Governor may use line-item veto to reduce or eliminate specific expenditures Target date for the governor to sign the CA budget is June 30 of each year SBUSD must pass budget by June 30 of each year – (CA Law) Final CA budget will inform SBUSD what revenues to expect for the next school
year
August 45 Day Revise
SBUSD BUDGET - PAST, PRESENT AND FUTURE
• Chart of Accounts
• Trends over Time
• Where are We Going?
CHART OF ACCOUNTS FUND – A self-balancing set of accounts, recording assets and liabilities.
(Examples: General Fund, Charter School Fund, and Cafeteria Fund)
RESOURCE – “Where” did the money come from? Used to classify revenues & expenditures in accordance with restrictions or special reporting requirements placed on the LEA by law or regulation. (Examples: Lottery, Title I, Special Education, Transportation, After School Education & Safety)
GOAL – “Who” is the target audience? Define the broad purpose or objective(s) of the expenditure. (Examples: Regular Education, Administration, Special Education, Athletics)
FUNCTION – “What” activities or services will be provided? Describes the activities or services performed in order to accomplish the goal. Function refers to activities performed to support one or more goals. (Examples: Instruction, School Administration, Pupil Transportation, Maintenance)
CHART OF ACCOUNTS OBJECT – “What” specific good or service is being purchased? What specific
revenue is earned? This field applies to expenditures, revenues, and balance sheet accounts including assets, liabilities, and fund balances. (Examples: Teacher Salaries, Health & Welfare, Textbooks, Telephone Service, State Lottery Revenue)
SCHOOL – Designates a specific physical school structure or group of structures which form a campus. Refers to a physical location. (Examples: District, South Bay, Pine Hill)
MANAGEMENT – User defined code allows for internal tracking of expenses, projects, etc. This district has assigned staff their own code to track $300 lottery allowance. (Examples: Summer School, GATE, Playground, Pine Hill Portable)
TRENDS OVER TIME - REVENUES
Revenues appear to be growing. 07/08 = 3,981,731 13/14 = 4,419,067 14/15 = 4,487,605
This is misleading.
Includes fluctuating local revenues (fire insurance, etc.)
Doesn’t take into consideration rising ADA, staffing demands, etc.
Need to look at Revenue/ADA
2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15
8010-8099 2119153.9 2128117.26 1869628.45 1964396.48 2106814.6 2236292.76 3010469.27 3213794
8100-8299 519699.3 573586.31 503155.51 594811.4 627621.71 593581.69 616516.16 586495
8300-8599 1093883.31 980539.41 870933.19 877878.46 897399 929196.45 464838.1 367452
8600-8799 249002.97 292258.34 767293.19 518008.46 303806.03 374190.43 327243.73 319864
250,000.00
750,000.00
1,250,000.00
1,750,000.00
2,250,000.00
2,750,000.00
3,250,000.00
Fund 01 Revenues
8010-8099
8100-8299
8300-8599
8600-8799
Revenue Limit
Federal RevenueState Revenue
Local / Misc.
TRENDS OVER TIME - REVENUES
Revenues per ADA were highest in 2007/08.
Bottomed out in 2009/10, then started climbing. 07/08 = 10,453 09/10 = 8,412 13/14 = 9,607 14/15 = 9,409
Still not back to 2007/08 levels per ADA, despite increased expenses and demands on schools.
Does not include 86xx local revenues. Local revenues are not dependent on ADA, and fluctuate from year to year.
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
8010-8099
5934.50922736565
5484.55558991805
4848.87299652472
5112.15447873836
5097.66652955552
5108.02366377341
7068.1566256574
7255.43289310306
8100-8299
1455.37343526842
1478.23903407041
1304.93155765341
1547.93993650133
1518.59882890948
1355.82843764276
1447.49286250939
1324.06592166159
8300-8599
3063.32664034277
2527.03316839338
2258.76132060792
2284.59496174465
2171.35425488156
2122.42222476016
1091.37420172802
829.556383338977
8xxx
10453.2093029768
9489.82779238184
8412.56587478604
8944.68937698433
8787.61961334656
8586.27432617634
9607.02368989482
9409.05519810362
1,000.00
3,000.00
5,000.00
7,000.00
9,000.00
11,000.00
Fund 01 – Revenue / ADA
8010-8099
8100-8299
8300-8599
8xxx
TRENDS OVER TIME - REVENUES
2011-12
2012-13
2013-14
2014-15
2011-12
2012-13
2013-14
2014-15
8010-8099
346665
400890
484569
546079
8100-8299
0 0 0 0
8300-8599
54449
72049.96
50138.29
29239
8600-8799
-27.5
7
58905.42
6922.56
1500
8xxx
401086.4
3
531845.3
8
541629.8
5
576818
(50,000.00)
150,000.00
350,000.00
550,000.00
Charter School Revenues
8010-8099
8100-8299
8300-8599
8600-8799
8xxx
2011-12 2012-13 2013-14 2014-15 2011-12 2012-13 2013-14 2014-15
8010-8099
5360.52265347147
5385.41106931757
6375.06906985923
6642.48874832745
8100-8299
0 0 0 0
8300-8599
841.951445801763
967.89306824288
659.62754900671
355.662328183919
8xxx
6202.47409927323
6353.30413756045
7034.69661886594
6998.15107651137
500.00
1,500.00
2,500.00
3,500.00
4,500.00
5,500.00
6,500.00
7,500.00
Charter School Revenue / ADA
8010-8099
8100-8299
8300-8599
8xxx
TRENDS OVER TIME - EXPENSES
Across General Fund, certificated salaries comprised 42% of the budget.
Classified salaries comprised 17% of the budget.
Benefits comprised 21% of the budget.
Total compensation = 80% leaving 20% for materials and services.
Certificated Salaries
Classified Salaries
Employee Benefits*
Materials & Supplies
Services
Capital ImprovementsOther Outgo
*Includes H&W, SUI, Workers’ Compensation, FICA, Medicare
1xxx42%
2xxx17%
3xxx21%
4xxx7%
5xxx9%
6xxx2%
7xxx2%
2007-08 Unaudited Actuals
1xxx
2xxx
3xxx
4xxx
5xxx
6xxx
7xxx
TRENDS OVER TIME - EXPENSES
Across Operating Funds 01 and 09 (General & Charter), certificated salaries comprised 35% of the budget.
Classified salaries comprised 18% of the budget.
Benefits comprised 19% of the budget.
Total compensation = 72% leaving 28% for materials and services.
1xxx35%
2xxx18%
3xxx19%
4xxx8%
5xxx11%
6xxx2%
7xxx6%
2013-14 UnauditedActuals
1xxx
2xxx
3xxx
4xxx
5xxx
6xxx
7xxx
TRENDS OVER TIME - EXPENSES
Across Operating Funds 01 & 09 (General & Charter) certificated salaries comprised 36% of the budget.
Classified salaries comprised 19% of the budget.
Benefits comprised 21% of the budget.
Total compensation = 76% leaving 24% for materials and services.
1xxx35%
2xxx18%
3xxx19%
4xxx8%
5xxx11%
6xxx7%
7xxx2%
2014-15 Preliminary
1xxx
2xxx
3xxx
4xxx
5xxx
6xxx
7xxx
TRENDS OVER TIME - SPENDINGExpense Vs. Revenues – Fund 01 Year Expenses Revenue Differenc
e
2007/08 4,011,800 3,981,739 (33,061)
2008/09 3,758,860 3,974,501 215,642
2009/10 3,941,977 4,011,010 69,033
2010/11 3,896,814 3,955,095 58,281
2011/12 3,827,934 3,935,641 107,707
2012/13 4,026,904 4,133,261 106,358
2013/14 4,700,539 4,419,067 (281,472)
2014/15 4,710,558 4,487,605 (222,953)2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
-
500,000.00
1,000,000.00
1,500,000.00
2,000,000.00
2,500,000.00
3,000,000.00
3,500,000.00
4,000,000.00
4,500,000.00
5,000,000.00
8xxx
1xxx-7xxx
TRENDS OVER TIME - SPENDINGExpense Vs. Revenues – Fund 09 Year Expenses Revenue Differenc
e
2011/12 376,535 401,086 24,552
2012/13 670,837 531,845 (138,991)
2013/14 614,377 541,630 (72,747)
2014/15 661,732 576,818 (84,914)
2011-12 2012-13 2013-14 2014-15 -
100,000.00
200,000.00
300,000.00
400,000.00
500,000.00
600,000.00
700,000.00
800,000.00
8xxx 1xxx-7xxx
TRENDS OVER TIME - RESERVESReserve Level - % of Budget Reserves – Budgeted Amount
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
14.00%
16.00%
18.00%
6.76%
9.53%
7.91%
10.46%
13.73%
16.46%
12.88%
11.55%
Reserve %
Rlevel
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
-
100,000.00
200,000.00
300,000.00
400,000.00
500,000.00
600,000.00
700,000.00
800,000.00
900,000.00
287,408.72
406,965.40
339,472.04
443,186.08
641,248.13
822,724.42
680,156.10
612,213.00
Reserves
Reserves
TRENDS OVER TIME – ADAAverage Daily Attendance
ADA drives funding as part of the LCFF calculation.
Many of our students are interdistrict transfers.
Charter enrollment is holding steady, but will likely increase.
2014/15 saw influx of 4th grade.
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
ADACS
NaN NaN NaN NaN 64.666
74.443
76.014
82.21
ADASB
357.09
388.02
385.58
384.26
413.29
437.8 425.92
442.947
25
75
125
175
225
275
325
375
425
ADACS
ADASB
WHERE ARE WE GOING? REVENUES – LCFF changed the funding formula, making it challenging to
predict how much to budget. CDE and DOF projections vary substantially (between $200k and $300k per year).
We will soon reach the 2007/08 funding level.
EXPENSES – Total Compensation (salaries & benefits) comprise 76% of the operating budget. This will continue to rise as STRS & PERS rates increase in the future.
In 2013/14 we substantially cut into our reserves by deficit spending in the amount of $281,472 in the General Fund and $72,747 in the Charter Fund.
In 2014/15 we anticipate deficit spending an additional $222,953 in the General Fund and $84,914 in the Charter Fund.
2016/17 is the last year of the Charter School Loan payment of $50,000 annually.
WHERE ARE WE GOING? RESERVES – Our reserves are currently 11.55% for the 2014/15 fiscal year.
We are required to maintain a 4% reserve.
Current projections show a decrease of approximately 1% per year in our reserves if we continue deficit spending at the current rate.
ADA – We currently have a healthy attendance rate. The charter school is averaging 97.38% attendance. Pine Hill is averaging 95.27% and South Bay is averaging 96.88% attendance.
If we maintain these rates, our revenues will increase. We budgeted for a lower attendance rate.
South Bay’s 4th grade class was unexpectedly large. This resulted in the need for a 4/5 combo class and a new teacher, which increased the certificated salary & benefits budget.
WHERE ARE WE GOING? INTERIMS / BUDGET REVISION – It’s time to revise & update the budget for
1st interim. It’s important to communicate any changes in funding, staffing, expenditures, etc. as quickly as possible in order to update the budget and plan accordingly. This includes anticipated multi-year changes.
PRESSURES ON THE BUDGET
Pressures on the budget vary from year to year for a variety of factors, including:
PRESSURES ON THE BUDGET … Increase in STRS & PERS Contributions
Facility needs and updates – what cannot be covered under Prop 39 PH Cafeteria Floor (Williams Compliance finding) Bus Barn (failing) SB Parking Lot (failing) Pine Hill Parking Lot Extension (safety) Painting – PH & SB (school climate) Plumbing (classroom 00 @ PH)
PRESSURES ON THE BUDGET … Special Education (cost rising)
Collective Bargaining Salaries + Health & Welfare = Total Compensation
CA Rainy Day Fund
Proposition 98 Reserve Cap
NO more Common Core Implementation $ after 2014-15
Proposition 30 (ends in 2018) Sales Tax expires 12/31/2016 = 0.25% Income Tax expires 12/31/2018 = 3% on top income earners
HOW TO STAY OUT OF THE FINANCIAL DOG HOUSE Common causes of financial problems:
Overly optimistic estimates of state economics Overly aggressive estimates of enrollment, attendance, and average daily attendance
(ADA) Failure to document budget assumptions Loss of control of staffing levels and costs Underestimating “automatic” cost growth Use of one-time money for ongoing expenses Poor decisions at the negotiating table Failure to consider multiyear impact of budget decisions Failure to follow through on budget decisions Poor budget monitoring Chronic deficit spending Inadequate reserves
FINAL THOUGHTS … Things are getting better, BUT funding is still less than 2007-08
Local Control does NOT mean “no regulations”
The Strategic Planning Process will help determine who we want to be, thus dictating how we budget… so please show up – Oct. 18, 2014
AND…