palm springs unified school district board meeting june 9, 2015 2015-16 adoption budget

PALM SPRINGS UNIFIED SCHOOL DISTRICT BOARD MEETING JUNE 9, 2015 2015-16 ADOPTION BUDGET

OE COMPLIANCE SUMMARY OE-5 Financial Planning Budget prepared and presented: 1. In summary format for each District fund 2. Clear description of revenues and expenditures 3. Includes current year estimates, budget year and multiyear projections 4. Provides assumption data 5. Budget developed to assure fiscal soundness in future years 6. Reflects salary adjustments 7. Contains conservative assumptions 8. Includes fund balance of no less than 3% of the General Fund 2

STATE BUDGET NEWS- MAY REVISE The May Revision shows Proposition 98 funding increasing $6.1 billion over a three-year period $241 million in 2013-2014 $3.1 billion in 2014-2015 $2.7 billion in 2015-2016 3

In total, the Governor proposes to provide $6.1 billion to further implement LCFF, an increase of $2.1 billion since January Funded COLA of 1.02% (down from the 1.58% estimate in January) A new proposed gap closure percentage of 53.08% (up from the 32.19% estimate in January) 4 STATE BUDGET NEWS- MAY REVISE

LCFF REVENUES PROGRESS TOWARD FULL IMPLEMENTATION

The gap 100% IS EQUAL TO THE 2007-2008 FUNDING LEVEL

LCFF REVENUES PROGRESS TOWARD FULL IMPLEMENTATION 100% IS EQUAL TO THE 2007-2008 FUNDING LEVEL

One-Time Discretionary Funds $3.5 billion, or $601 per ADA 9 STATE BUDGET NEWS- MAY REVISE

Special Education Funding $60 million additional funds, $30 million of which is ongoing to augment the Early Education Program for Infants and Toddlers with Exceptional Needs $12.1 million in one time funds for 2,500 additional part-time preschool slots with priority given to students with disabilities $6 million to increase overall preschool rates by 1% $10 million in one-time funds to assist districts in implementing data-driven systems of support and intervention 10 STATE BUDGET NEWS- MAY REVISE

Career Technical Education (CTE) An additional $150 million over the $250 million over three years for a new transitional CTE Incentive Grant Program $50 million additional in 2016-2017 A reduction of $50 million in 2017-2018 School Facilities No new funding over the $273.4 million in Proposition 98 one-time funds for the Emergency Repair Program A reduction of Proposition 39 appropriation for energy efficiency projects by $6.7 million (to $313.4 million) Technology $100 million in one-time funding to increase internet connectivity and infrastructure projects 11 STATE BUDGET NEWS- MAY REVISE

Federal Programs No major changes Home-to-School Transportation No new proposals STRS and PERS Employer costs still predicted to double over next several years. The May Revision did not address these costs 12 STATE BUDGET NEWS- MAY REVISE

PSUSD Adopted Budget is based on assumptions in the May Revise Adjustments may be required per AB 1200 within 45 days after the State Budget is signed by the Governor 13 STATE BUDGET NEWS- MAY REVISE

ADOPTED BUDGET REVENUE ASSUMPTIONS 2015-2016 Adopted 2016-2017 Projected 2017-2018 Projected Projected LCFF ADA 21,251 ADA Growth/Decline from prior year 11-- PSUSD LCFF $9,432$9,938$10,441 LCFF COLA 1.02%1.60%2.48% Other State Revenues 1.02%1.60%2.48% Lottery Revenues- unrestricted $128 Lottery Revenues- restricted Prop 20 $34 14

ADOPTED BUDGET EXPENDITURE ASSUMPTIONS 2015-2016 Adopted 2016-2017 Projected 2017-2018 Projected Additional Certificated Staff26.409.00- Additional Classified Staff6.074.00- Step and Column CostsIncluded2,732,9062,804,240 STRS/PERS ContributionsIncluded1,906,7052,066,481 Benefits AdjustmentsIncluded243,538156,677 Utility IncreasesIncluded425,583566,528 Election Costs-$90,000- 15

2015-16 MULTIYEAR PROJECTION UNRESTRICTED Description2015-20162016-20172017-2018 Total Revenues $219,583,422 $219,175,508$228,691,849 Total Expenditures 194,278,167 199,179,119 204,300,915 INCREASE (DECREASE) 25,305,255 19,996,389 24,390,934 Other Sources/Transfers In 3,754,773 Other Uses/Transfers Out 4,826,026 1,014,706 Contributions (20,709,250) (20,979,232)(21,912,609) Net INCREASE (DECREASE) 3,524,752 1,757,224 5,218,392 Beginning Balance, July 1 (estimated) 11,964,201 15,488,962 17,246,186 Ending Balance, June 30 15,488,962 17,246,186 22,464,578 Revolving Cash/Stores 270,000 Unassigned- Economic Uncertainties (3%) 7,625,850 7,664,357 7,842,878 LCFF Supplemental and Concentration MPP 3,038,510 6,323,369 10,593,661 Assigned 1,679,006 - 769,579 Textbook Adoptions 2,875,5962,988,460 16

2015-16 MULTIYEAR PROJECTION UNRESTRICTED Description2015-20162016-20172017-2018 Total Revenues $219,583,422 $219,175,508$228,691,849 Total Expenditures 194,278,167 199,179,119 204,300,915 INCREASE (DECREASE) 25,305,255 19,996,389 24,390,934 Other Sources/Transfers In 3,754,773 Other Uses/Transfers Out 4,826,026 1,014,706 Contributions (20,709,250) (20,979,232)(21,912,609) Net INCREASE (DECREASE) 3,524,752 1,757,224 5,218,392 Beginning Balance, July 1 (estimated) 11,964,201 15,488,962 17,246,186 Ending Balance, June 30 15,488,962 17,246,186 22,464,578 Revolving Cash/Stores 270,000 Unassigned- Economic Uncertainties (3%) 7,625,850 7,664,357 7,842,878 LCFF Supplemental and Concentration MPP 3,038,510 6,323,369 10,593,661 Assigned 1,679,006 - 769,579 Textbook Adoptions 2,875,5962,988,460 17 $9,309,800 ($1,493,055) $9,553,837

2015-16 MULTIYEAR PROJECTION RESTRICTED Description2015-20162016-20172017-2018 Total Revenues $31,626,931 $31,790,856 $31,912,595 Total Expenditures 55,090,80955,284,736 56,113,657 INCREASE (DECREASE) (23,463,878) (23,493,880) (24,201,062) Other Sources/Transfers In 2,462,241 2,476,621 2,510,566 Other Uses/Transfers Out --- Contributions 20,709,250 20,979,232 21,912,609 Net INCREASE (DECREASE) (292,387) (38,027) 222,113 Beginning Balance, July 1 (estimated) 774,640 482,253 444,226 Ending Balance, June 30 482,253 444,226 666,339 18

2015-16 MULTIYEAR PROJECTION RESTRICTED Description2015-20162016-20172017-2018 Total Revenues $31,626,931 $31,790,856 $31,912,595 Total Expenditures 55,090,80955,284,736 56,113,657 INCREASE (DECREASE) (23,463,878) (23,493,880) (24,201,062) Other Sources/Transfers In 2,462,241 2,476,621 2,510,566 Other Uses/Transfers Out --- Contributions 20,709,250 20,979,232 21,912,609 Net INCREASE (DECREASE) (292,387) (38,027) 222,113 Beginning Balance, July 1 (estimated) 774,640 482,253 444,226 Ending Balance, June 30 482,253 444,226 666,339 19 ($3,196,716) ($20,194,583) $604,471

2015-16 MULTIYEAR PROJECTION COMBINED Description2015-20162016-20172017-2018 Total Revenues $251,210,353 $250,966,363 $260,604,444 Total Expenditures 249,368,976 254,463,855 260,414,572 INCREASE (DECREASE) 1,841,377 (3,497,492) 189,872 Other Sources/Transfers In 6,217,014 6,231,394 6,265,339 Other Uses/Transfers Out 4,826,026 1,014,706 Contributions --- Net INCREASE (DECREASE) 3,232,365 1,719,196 5,440,505 Beginning Balance, July 1 (estimated) 12,738,851 15,671,216 17,690,412 Ending Balance, June 30 15,971,215 17,690,412 23,130,917 20

2015-16 MULTIYEAR PROJECTION COMBINED Description2015-20162016-20172017-2018 Total Revenues $251,210,353 $250,966,363 $260,604,444 Total Expenditures 249,368,976 254,463,855 260,414,572 INCREASE (DECREASE) 1,841,377 (3,497,492) 189,872 Other Sources/Transfers In 6,217,014 6,231,394 6,265,339 Other Uses/Transfers Out 4,826,026 1,014,706 Contributions --- Net INCREASE (DECREASE) 3,232,365 1,719,196 5,440,505 Beginning Balance, July 1 (estimated) 12,738,851 15,671,216 17,690,412 Ending Balance, June 30 15,971,215 17,690,412 23,130,917 21 198,811,065 209,695,948 ($10,884,883) ($4,689,871) $10,158,309

UNRESTRICTED ENDING FUND BALANCES 22 Thousands Estimated

UNRESTRICTED SALARIES AND BENEFITS AS A PERCENT OF THE UNRESTRICTED BUDGET YearCertificatedClassifiedBenefitsTotal Expenditures % 2015-2016 (Est.) $90,645,867$24,924,396$42,259,762$194,278,16781.24% 2014-2015 (Est.) $83,603,559$22,768,302$37,931,034$173,505,96983.17% 2013-2014$73,586,568$19,262,330$33,573,808$145,708,50586.76% 2012-2013$66,985,938$16,805,035$31,759,760$125,647,02591.96% 2011-2012$65,250,758$16,460,806$30,073,383$123,547,50590.50% 23 YearADA 2015-201621,251 2014-201521,240 2013-201421,318 2012-201321,469 2011-201221,515 Unrestricted salaries and benefits make up approximately 81% of PSUSDs unrestricted general fund budget. Cielo Vista Charter School is reported separately beginning fiscal year 2010-2011

2015-2016 ESTIMATED UNRESTRICTED EXPENDITURES 24

2015-2016 ESTIMATED UNRESTRICTED EXPENDITURES SALARIES AND BENEFITS 25 44.43% 11.17% 7.52% 22.81% 14.07% 85.93%

OTHER FUNDS Description2015-2016 Budgeted Revenues 2015-2016 Budgeted Expenditures 2015-2016 Increase (Decrease) Beginning Balance Ending Balance Charter School Fund 09 6,403,652 7,351,063 (947,411) 2,057,483 1,110,072 Child Development Fund 12 2,250,971 2,250,921 50 26,651 26,701 Cafeteria Special Revenue Fund 13 12,859,800 14,935,074 (2,075,274) 5,662,307 3,587,033 Special Reserve Fund 17 3,842,693 - 4,878,666 8,721,359 Building Fund 21 90,000 35,363,482 (35,273,482) 62,990,090 27,716,608 Capital Facilities Fund 25 2,565,000 7,920,279 (5,355,279) 20,474,223 15,118,944 Special Reserve Fund 40 8,586,436 19,303,258 (10,716,822) 37,972,185 27,255,363 26

SELF INSURANCE FUNDS Description2015-2016 Budgeted Revenues 2015-2016 Budgeted Expenditures 2015-2016 Increase (Decrease) Beginning Balance Ending Balance Workers Compensation Fund 67 5,639,428 2,882,595 2,756,833 2,352,715 5,109,548 Other Post Employment Benefits (OPEB) Fund 68 2,117,382 1,572,670 544,712 7,587,580 8,132,292 Property and Liability Fund 69 983,928 1,045,030 (61,102) 61,102 - Total 8,740,738 5,500,295 3,240,443 10,001,397 13,241,840 27

Starting with the 2015-2016 adopted budgets, school districts are required to provide the following information at the public hearing for the next fiscal years budget adoption: 1.The minimum reserve level required in each year 2.The amount of assigned and unassigned ending fund balance that exceeds the minimum in each year 3.Reasons for the reserve being greater than the minimum 28 SB858- ASSIGNED AND UNASSIGNED ENDING FUND BALANCES

29 SB858- ASSIGNED AND UNASSIGNED ENDING FUND BALANCES 2015-20162016-20172017-2018 1.Minimum reserve level in each year $7,625,850$7,664,357$7,842,878 2. The amount of assigned and unassigned ending fund balance that exceeds the minimum in each year $16,314,471$18,064,561$23,135,805 3. Reasons for the reserve being greater than the minimum Assigned for LCAP (supplemental student services)- $3,038,510 $6,323,369 $10,593,661 Assigned for Textbook Adoptions- $2,875,596 $2,988,460 Designated for increments in CalPERS, CalSTRS, legal services, and equipment replacement- $1,679,006 - $769,579 Designated for opening new schools (Fund 17)- $8,721,359$8,752,732$8,784,105

30 SUMMARY Financial Position is sufficient to meet obligations in 2015-16 and following two fiscal years, justifying a Positive Certification (June 23, 2015) Structural Deficit eliminated Supplemental and Concentration Grant funding is providing additional funding for the Districts students in need

palm springs unified school district board meeting june 9, 2015 2015-16 adoption budget

Documents

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state budget news

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budget year

new funding

onetime funding