palm springs unified school district 2014/15 first interim report as of october 31, 2014
TRANSCRIPT
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Palm Springs Unified School District2014/15 First Interim Report
As of October 31, 2014
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2014/2015 First Interim Report Purpose of the Interim Report:
School districts are required to certify their financial position twice during each fiscal year. The certification addresses a district’s ability to meet its financial obligations for the current and two subsequent fiscal years.
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2014/2015 First Interim Report Certifications include the following options:
“Positive Certification” – will be able to meet financial obligations
“Qualified Certification” – uncertainty around ability to meet obligations
“Negative Certification” – will not be able to meet financial obligations
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2014/2015 First Interim Report Local Control Funding Formula (LCFF)
Provides for a Base Grant for all students Provides a Supplemental Grant based on
English Language Learners (ELL), Free and Reduced Priced Meal (FRPM) eligible students, and foster youth unduplicated count
Provides a Concentration Grant based on ELL, FRPM, and foster youth unduplicated count students above 55% of the District-wide enrollment
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2014/2015 First Interim Report Local Control Funding Formula (LCFF)
Districts are required to develop and monitor the implementation of a Local Control Accountability Plan (LCAP) that aligns the academic plan with the District expenditure plan
LCFF targeted funding is phased in over 8 years through fiscal year 2020/21
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2014/2015 First Interim Report Local Control Funding Formula (LCFF)
Cautions Future LCFF funding levels not guaranteed Implementation over the next seven (7) year period creates uncertainty of
funding Class Size Reduction tied to the funding – 8 year implementation
Categoricals programs rolled into LCFF must still be addressed Considerations
Class size reduction Declining enrollment Implementation of LCAP Bargaining unit compensation Educational goals/programs Utility costs Impact of the sunset of the Education Protection Account Starting 2016/2017 Textbook adoptions starting in 2015/2016 Routine repair and general maintenance increased to 3% from ~1% (1.7M)
starting 2015/2016 STRS/PERS employer contributions increased through 2020/2021…
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2014/2015 First Interim ReportRestricted and Unrestricted (Combined)
1st InterimFY
2014/2015
ProjectedFY
2015/2016
ProjectedFY
2016/2017
Revenues $209,857,517
$218,643,055
$232,452,812
Expenditures $231,242,764
$218,897,709
$224,228,438
Excess/(Deficiency) ($21,385,247)
($254,654) $8,224,384
Transfers In $9,427,223 $3,959,215 $3,975,484
Transfers Out $1,123,475 $1,123,475 $1,123,475
Net Increase(Decrease) ($13,081,499)
$2,581,086 $11,076,393
Beginning Fund Balance $26,118,313 $13,036,814 $15,617,899
Ending Fund Balance $13,036,814
$15,617,899
$26,694,293
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2014/2015 First Interim ReportRestricted and Unrestricted (Combined)
Components of the Ending Fund Balance:1st Interim
FY 2014/2015
ProjectedFY
2015/2016
ProjectedFY
2016/2017
Revolving Cash $100,000 $100,000 $100,000
Stores $170,000 $170,000 $170,000
Legally Restricted $774,640 $32,456 $69,914
Legally Restricted 3% Reserve
$6,970,897 $5,667,897 $5,638,992
Unassigned- Lottery, Unrestricted
$2,653 - -
Assigned- Designated Carryover
$7,500 - -
Unassigned- Unrestricted $2,744,627 - -
Assigned LCAP Reserve Per MPP
$2,266,406 $4,329,232 $11,461,903
Year 2 LCAP Increase $5,318,314 $5,318,314
Year 3 LCAP Increase $3,935,169
Ending Fund Balance $13,036,814
$15,617,899
$26,694,293
2.58% 2.5%
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2014/2015 First Interim ReportUnrestricted
1st InterimFY
2014/2015
ProjectedFY
2015/2016
ProjectedFY
2016/2017
Revenues $174,758,966
$187,047,613
$200,666,826
Expenditures $172,249,336
$168,576,876
$173,711,418
Excess/(Deficiency) $2,509,630 $18,470,737 $26,955,407
Transfers In $7,292,223 $1,814,798 $1,822,411
Transfers Out $1,123,475 $1,123,475 $1,123,475
Contributions ($14,992,803)
($15,838,790)
($16,615,408)
Net Increase(Decrease) ($6,314,425) $3,323,270 $11,038,935
Beginning Fund Balance $18,576,598 $12,262,173 $15,585,443
Ending Fund Balance $12,262,173
$15,585,443
$26,624,378
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2014/2015 First Interim ReportUnrestricted
Components of the Ending Fund Balance:1st Interim
FY 2014/2015
ProjectedFY
2015/2016
ProjectedFY
2016/2017
Revolving Cash $100,000 $100,000 $100,000
Stores $170,000 $170,000 $170,000
Legally Restricted
Legally Restricted 3% Reserve
$6,970,987 $5,667,897 $5,658,992
Unassigned- Lottery, Unrestricted
$2,653
Assigned- Designated Carryover
$7,500
Unassigned- Unrestricted $2,744,627
Assigned LCAP Reserve Per MPP
$2,266,406 $4,329,232 $11,461,903
Year 2 LCAP Increase $5,318,314 $5,318,314
Year 3 LCAP Increase $3,935,169
Ending Fund Balance $12,262,173
$15,585,443
$26,624,378
2.58% 2.5%
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2014/2015 First Interim Report Local Control Funding Formula (LCFF)
Expenditures (% of General Fund)
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2014/2015 First Interim Report Local Control Funding Formula (LCFF)
Salary and Benefit Expenditures (% of General Fund)
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2014/2015 First Interim Report Local Control Funding Formula (LCFF)
Employer Retirement Expenditures (% of General Fund)
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2014/2015 First Interim Report Local Control Funding Formula (LCFF)
As a % of General Fund Expenditures, pension obligations increase from 5.61% in 2014-
2015 to 11.28% in 2020-2021
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2014/2015 First Interim Report CONCLUSIONS
The District can meet it financial obligations for the current fiscal year, and the two following fiscal years using Fund 17.
It is recommended the Board approve the 1st Interim Report with a Positive Certification.
The LCFF financing model has brought about major changes to how we are financed. Uncertainty of the level of funding as well as the other concerns previously discussed will influence our decision-making moving forward over the next 2 ½ years.