HESPERIA UNIFIED SCHOOL DISTRICT
HESPERIA UNIFIED SCHOOL DISTRICT 2017/18 Unaudited Actuals 2018/19 Approved Budget
•
Governing Board -
•
District Administration -
•
David Olney, Superintendent Jovy Yankaskas, Deputy Superintendent, Educational Services Dr. George Landon, Assistant Superintendent, Business Services Karen Kelly-Pelayes, Assistant Superintendent, Personnel Robert McCollum, Assistant Superintendent, Innovative Technology and Communication
Report prepared by: –
•
Niccole Petersen Eric Swanson Lee Rogers Cody Gregg Marcy Kittinger
Kortney Grimm, Director, Fiscal Services
Board Meeting Date: - September 10, 2018
15576 Main St., Hesperia, CA 92345 (760) 244-4411 www.hesperiausd.org
1
Hesperia Unified School District 2017/2018 Unaudited Actuals and 2018/2019 Approved Budget Preparing Today’s Students for Tomorrow’s World #IMPACTtheFutureHUSD Business Services Dr. George Landon Kortney Grimm September 10, 2018
Purpose of Report ▶
Unaudited Actuals ▶
▶
Actuals – July 1, 2017 – June 30, 2018
Budget ▶
Various financial assumptions ▶
2018/2019
▶
2019/2020
▶ 2020/2021
2
Student Priority Goals and Fiscal Stabilization ▶
Maximize student achievement
▶
Alignment of the Local Control Accountability Plan (LCAP) and Budget to the eight priority areas ▶
Student Achievement, Student Engagement, State Standards, Course Access, School Climate, Other Student Outcomes, Basic Services, Parent Involvement
▶
Establish a 3% cash balance (approximately $6 million) on hand every month during each fiscal year
▶
Eliminate deficit spending for each fiscal year
▶
Align staffing to enrollment of schools
▶
Maintain a State required 3% unrestricted reserve level for all financial reports
▶
Update progress of the Stabilization Plan with Interim Reports
3
2018/2019 Projected Grade Span Funding ▶
Grade span funding per average daily attendance (ADA) within LCFF model ▶
▶
Base Funding at full implementation ▶
TK - 3 = $8,235 ($7,459 GS plus $776 CSR)
▶
4-6
▶
7 – 8 = $7,796
▶
9 – 12 = $9,269 ($9,034 GS plus $235 CTE)
= $7,571
Unduplicated % = 80.25% ▶
Supplemental - $1,279 avg.
▶
Concentration - $936 avg.
4
Average Daily Attendance ●
17/18 P2 = 20,526
5
Projected Rate Increases for STRS Pre–Reform Year
Employer
Post- Reform
Employee
6
State
2013/2014
8.25%
8.00%
8.00%
3.041%
2014/2015
8.88%
8.15%
8.150%
3.454%
2015/2016
10.73%
9.20%
8.560%
4.891%
2016/2017
12.58%
10.25%
9.205%
8.328%
2017/2018
14.43%
10.25%
10.205%
9.328%
2018/2019
*16.28%
10.25%
10.205%
9.328%
2019/2020
*18.13%
10.25%
10.205%
9.328%
2020/2021
*19.10%
10.25%
10.205%
9.328%
2021/2022
18.60%
10.25%
10.205%
9.328%
Projected increase in STRS rates will be funded by the District’s LCFF allocation
Year
Projected Cost Increases
Cumulative Total
2015/2016 $ 2,594,753
$ 9,442,785
2016/2017 $ 2,252,792
$ 11,695,577
2017/2018 $ 2,339,725
$ 14,035,302
2018/2019 $ 1,882,713
$ 15,918,015
2019/2020 $ 2,002,367
$ 17,920,382
2020/2021 $ 1,051,944
$ 18,972,326
*These costs are included in the district’s budget
Projected Rate Increases for PERS Year
Employer
2013/2014
11.442%
2014/2015
11.771%
2015/2016
11.847%
2016/2017
13.888%
2017/2018
15.531%
2018/2019
*18.062%
2019/2020
*20.800%
2015/2016 $
366,184
$ 3,783,981
2020/2021
*23.500%
2016/2017 $
753,522
$ 4,537,503
2021/2022
24.600%
2017/2018 $
970,050
$ 5,507,553
2022/2023
25.300%
2018/2019 $ 1,272,140
$ 6,779,693
2023/2024
25.800%
2019/2020 $
992,922
$ 7,772,615
2024/2025
26.000%
2020/2021 $
992,826
$ 8,765,441
Projected increase in PERS rates will be funded by the District’s LCFF allocation Year
Projected Cost Increases
Cumulative Total
*These costs are included in the district’s budget
7
Utilities 2013/14 Gas
$
265,009
Electricity
$
Water/Sewer
2014/15 $
2015/16
8 2016/17
355,050
$
284,852
$
238,544
3,679,712
$ 3,801,376
$
3,480,443
$
$
1,092,378
$ 1,090,765
$
980,118
Waste Disposal
$
708,088
$
685,667
$
Total
$
5,745,187
$ 5,932,858
$
2017/18 $
2018/19 (Budget)
180,646
$
288,418
3,383,849
$ 2,677,156
$
3,651,834
$
1,077,651
$ 1,185,573
$
1,068,882
621,262
$
629,685
$
646,040
$
670,787
5,366,675
$
5,329,729
$ 4,689,415
$
5,679,921
9
Substitutes/Extra Duty Unrestricted 2013/14
2014/15
2015/16
2016/17
2017/18
Substitutes
$ 3,033,419
$ 3,180,404
$ 3,710,854
$ 3,713,409
$4,195,258
2018/19 (Budget) $3,268,267
Extra Duty/Stipends
$ 2,361,840
$ 2,319,396
$ 2,735,510
$ 3,054,953
$3,554,722
$2,302,995
Total
$ 5,395,259
$ 5,499,800 $ 6,446,364 $ 6,768,362
$7,749,980 $5,571,262
Routine Repair and Maintenance 2016/17
2017/18
10
2013/14
2014/15
2015/16
2018/19 (Budget)
3% of General Fund
$ 5,057,493
$ 6,072,455
$ 7,207,581
$ 7,158,947
$7,082,966
$7,501,241
Expense
$ 3,892,763
$ 4,316,030
$ 5,350,554
$ 5,543,278
$6,757,990
$7,920,000
11
Special Education 2013/14 Cost of Services
2014/15
2015/16
$ 19,223,063 $ 22,962,719 $ 26,484,524
2016/17
2017/18
$ 29,905,202 $ 32,664,995
2018/19 (Budget) $35,040,304
Transportation 2013/14
2014/15
2015/16
12
2016/17
2017/18
2018/19 (Budget)
Revenues
$ 1,934,918
$ 1,934,918
$ 1,934,918
$ 1,934,918
$ 1,934,918
$ 1,934,918
Expenses
$ 5,824,371
$ 5,445,926
$ 5,749,542
$ 6,238,973
$6,696,664
$7,425,773
Contribution
$ 3,889,453
$ 3,511,008
$ 3,814,624
$ 4,304,055 $4,761,746
$5,490,855
•Totals are inclusive of Home-To-School and Special Education transportation services •Funding for transportation is an add on to the Local Control Funding Formula (LCFF)
Salaries and Benefits 17/18
13
18/19
Salaries & Benefits
$ 191,955,076
Salaries & Benefits
$ 203,805,947
Other
$ 52,970,584
Other
$ 57,250,592
Total
$ 244,925,660
Total
$ 261,056,539
20/21
19/20
Salaries & Benefits
$ 209,738,188
Salaries & Benefits
$ 214,651,278
Other
$ 54,626,637
Other
$ 53,365,090
Total
$ 264,364,825
Total
$ 268,016,368 13
Six Year History of Salary and Benefits Administration Year
Salary
Benefits
Certificated Salary
Classified Benefits
Salary
Benefits
2018/2019
3.92% - 7/1/18
Tiered Caps Single - $7,900 Two-Party - $13,000 Family -$15,500
3.00% - 7/1/18
$1,000 increase to District Cap - $14,516
3.92% - 7/1/18
Tiered Caps Single - $7,750 Two Party - $12,750 Family - $15,500
2017/2018
3.54% - 7/1/17
$500 increase to District Cap - $13,330
4.00% - 7/1/17
No change to District Cap - $13,516
3.54% - 7/1/17
$500 increase to District Cap - $12,942.20
2016/2017
3.25% - 7/1/16 0.25% - 1/1/17 2.00% - off schedule
$1,500 increase to District Cap $12,830
3.25% - 7/1/16 0.25% - 1/1/17 2.00% - off schedule
$1,500 increase to District Cap - $13,516
3.25% - 7/1/16 0.25% - 1/1/17 2.00% - off schedule
$1,500 increase to District Cap - $12,442.20
2015/2016
7.5% - 7/1/15
$1,000 increase to District Cap - $11,330
7.5% - 7/1/15
$1,000 increase to District Cap - $12,016
7.5% - 7/1/15
$1,000 increase to District Cap - $10,942.20
2014/2015
5% - 7/1/14
$1,000 increase to District Cap - $10,330
5% - 7/1/14
$1,000 increase to District Cap - $11,016
5% - 7/1/14 1.25% - off schedule Return of 5 furlough days
$500 increase to District Cap - $9,942.20 6.0 hr employees 100% Cap eligible
2013/2014
Restored 6 furlough days (7%)
District Cap - $9,330
Restored 6 furlough days (7%)
District Cap - $10,016
Restored 5 furlough days Restored two steps (7%)
District Cap - $9,442.20
Total
30.46% ongoing 2.00% off schedule
$4,000 increase to cap
30.00% ongoing 2.00% off schedule
$4,500 increase to cap
30.46% ongoing 3.25% off schedule
$3,500 increase to cap
14
Change in Gap and COLA Percentages Description
2017/2018 Actual
2018/2019 Actual
2019/2020 Projected
2020/2021 Projected
2021/2022 Projected
COLA
1.56%
3.70%*
2.57%
2.67%
3.42%
Gap %
44.97%
100%
100%
100%
100%
Description
January - Governor’s Preliminary Budget for 2018/2019
May - Governor’s May Revision for 2018/2019
June - State Adopted Budget
*Cost-of-Living Adj. (COLA)
2.51%
2.71% + 0.29% = 3.00%
2.71% + 0.99% = 3.70%
$295 per ADA
$344 per ADA
$184 per ADA
One-time Funding
15
Trigger Language Grade Span
HUSD’s LCFF Base Amount @ Ratification
HUSD’s LCFF Base Amount @ State Budget
Difference
2017/2018 P2 ADA
Potential Additional Funding
TK - 3
$ 8,141
$ 8,235
$ 94
6,003.49
$
564,328.06
4-6
$ 7,484
$ 7,571
$ 87
4,903.94
$
426,642.78
7-8
$ 7,707
$ 7,796
$ 89
3,192.90
$
284,168.10
9 -12
$ 9,163
$ 9,269
$ 106
6,425.65
$
681,118.90
Total
20,525.98
One-Time
$
295
$ 184
$ (111)
$ 1,956,257.84 $ (2,278,383.78)
Total Additional Funding for 2018/2019
$
Cost of 1% for All Employees after increased compensation for 2017/2018
$ 1,858,076.00
Potential Compensation for All Employees
(322,125.94)
(0.17%)
Staff is not recommending decreasing compensation for all employees. 16
Financial Multi-Year Assumptions Description
2017/18
2018/19
2019/20
2020/2021
COLA
1.56%
2.71% + 0.99% = 3.70%
2.57% estimated
2.67% estimated
Funding Gap %
42.97%
100%
100%
100%
Unduplicated %
80.24%
80.25%
80.25%
80.25%
ADA for LCFF Calculation
P2 - 20,526
20,526
20,526
20,526
Salary Step (all eligible employees)
$2,253,193
$2,253,193
$2,253,193
$2,253,193
Column Salary Advancement (teachers)
$235,357
$235,357
$235,357
$235,357
Teacher Signing Bonus
$150,000
$150,000
$150,000
$150,000
Class Sizes
TK-3 (24:1) avg.
TK-3 (24:1) avg.
TK-3 (24:1) avg.
TK- (24:1) avg.
Additional FTEs (General)
8 FTEs - $840,000
-5 FTEs ($540,000)
-10 FTEs ($1,080,000)
-16 FTEs ($1,728,000)
Additional FTEs (Special Ed)
1 FTE - $108,000
5 FTEs $540,000
2 FTEs $216,000
2 FTEs $216,000
Reduction of Combination Classes
15 FTEs $1,620,000
Transfer to Deferred Maintenance
$1,500,000
$1,500,000
$1,500,000
$1,500,000
Transfer to Debt Service
$2,500,000+RDA+Energy
$2,500,000+RDA+Energy
$2,500,000+RDA+Energy
$2,500,000+RDA+Energy
Transfer to Special Reserve
$2,000,000
$2,000,000
$2,000,000
$0
Routine Restricted Maintenance
3.0%
3.0%
3.0%
3.0%
Workers’ Compensation Rate
3.41%
2.73%
2.73%
2.73%
One-Time Mandated Cost Revenue
$3,066,419*
$3,776,780 projected
$0
$0
Election Costs
$
$
$
$
Special Education Costs
$ 250,000
$ 250,000
$ 250,000
$ 250,000
Professional Development
$ 105,000
$ 126,000
Eagle Plaza Rent
$ 209,092
$ 209,092
$ 209,092
$ 209,092
*Funds used for the 17/18 ELA adoption.
17
Proposed Use of Projected 2018/2019 One-Time Funds
Description
Amount
Projected Revenue ($184 x 20,526.38)
$ 3,776,780
$26.59 per Enrollment for Each School
$
Future Textbook Adoption
$ 2,000,000
Portables for Reducing Combination Classes
$ 1,200,920
Total Expenses
$ 3,776,780
575,860
18
COLA Funding Description Projected LCFF Base Revenue Increase
Step Advancement for All Employees
2019/2020 - 2.57% $
4,416,066
2020/2021 - 2.67% $
4,692,055
2,253,193
2,253,193
Column Advancement for Teachers
235,357
235,357
Signing Bonus for Teachers
150,000
150,000
STRS Percentage Increase
2,002,367
1,051,944
992,922
992,826
5,633,839
4,683,320
PERS Increase Total Obligations
Excess/(Deficit)
$ (1,217,773)
$
8,735
Does not include implementing new programs, increased compensation, or increased costs for goods/services.
19
Multi-Year Projections Unrestricted/Restricted 2017/2018 Unaudited Actuals
20
2018/2019 **Budget
2019/2020 **Projected
2020/2021 **Projected
$ 33,734,865
$ 33,328,599
$ 31,195,561
$ 27,085,472
Revenues
$ 244,519,394
$258,923,501
$ 260,254,736
$ 266,265,906
Expenditures
$ 236,098,980
$250,041,369
$ 255,146,526
$ 260,754,824
Excess/(Deficit)
$
$
$
5,108,210
$
5,511,082
Sources/Uses
$ (8,826,781)
$ (11,015,170)
$
(9,218,299)
$
(7,261,544)
$ 33,328,599
$ 31,195,561
$ 27,085,472
Beginning Balance
Ending Balance
8,420,414
8,882,132
$ 25,334,910
**Based on LCFF being funded at 100% for 18/19, 19/20, and 20/21.
20
Components of Ending Fund Balance Unrestricted/Restricted 2017/2018 Unaudited Actuals
2018/2019 Budget
2019/2020 Projected
21
2020/2021 Projected
Revolving Cash Fund
$
75,000
$
75,000
$
75,000
$
75,000
Inventory
$
43,943
$
50,000
$
50,000
$
50,000
Legally Restricted
$
2,663,795
$
2,312,026
$
3,479,018
$
2,979,018
Economic Uncertainties (3%)
$
7,391,837
$
7,831,697
$
7,945,610
$
8,175,731
Prepaid Expenditures
Other Commitments: Assigned
$ 22,971,132
$ 20,926,838
$ 15,660,844
$ 14,055,161
Other Assignments
$
$
$
$
0
0
0
0 21
Impact of State Adopted Budget 2017/2018 Estimated Actuals
Beginning Balance
2018/2019 Adopted Budget
$ 33,734,866
$ 33,328,599
200,650,913
216,823,576
14,366,870
13,497,539
State
, 18,232,274
20,005,478
Local
11,299,337
8,596,908
2018/2019 State Adopted Revisions
2018/2019 District Revised Budget
2019/2020 Budget
2020/2021 Budget
$ 33,328,599
$ 29,867,663
$ 25,757,574
218,779,834
225,304,836
231,316,006
13,497,539
13,497,539
13,497,539
16,721,322
12,855,453
12,855,453
8,596,908
8,596,908
8,596,908
257,595,603
260,254,736
266,265,906
Revenue LCFF Sources Federal
Total Revenue
$ 1,956,258
(3,284,156)
244,519,394
258,923,501
(1,327,898)
101,468,511
108,423,568
108,423,568
108,236,046
108,447,820
Classified
35,464,449
38,065,740
38,065,740
38,579,256
39,118,447
Benefits
55,022,116
57,316,639
57,316,639
62,922,886
67,085,011
Books and Supplies
11,265,733
11,741,222
11,741,222
10,665,362
11,005,583
Services/Operating
30,048,929
32,171,023
32,171,023
32,559,073
32,914,060
877,767
439,274
439,274
300,000
300,000
(526,186)
(580,415)
(580,415)
(580,415)
(580,415)
236,098,880
250,041,369
250,041,369
255,146,526
260,754,824
Excess/(Deficit)
8,420,514
8,882,132
7,554,234
5,108,210
5,511,082
Sources/(Uses)
(8,826,781)
(11,015,170)
(11,015,170)
(9,218,299)
(7,261,544)
Net Increase
(406,267)
(2,133,038)
(3,460,936)
(4,110,089)
(1,750,462)
$ 25,757,574
$ 24,007,112
Expenditures Certificated
Capital Outlay Indirects Total Expenditures
Ending Fund Balance
$ 33,328,599
$ 31,195,561
$
29,867,663
22
Other Projected Ending Fund Balances as of: June 30, 2018 Description
23
Amount
Adult Ed Fund (Fund 11)
$
1,035,464
Cafeteria (Fund 13)
$
7,420,779
Deferred Maintenance Fund (Fund 14)
$
1,680,203*
Special Reserve (Fund 17)
$
Capital Facilities (Fund 25)
$
State School (Fund 30)
$
614
County School (Fund 35)
$
7
Special Reserve (Fund 40)
$
74,106
Debt Service (Fund 56)
$
33,743,365
Total
$
66,927,980
16,737,463 6,235,979*
*Will be spent down for Summer 2019 facility projects. 23
What can we expect? ▶
Full implementation of the Local Control Funding Formula (LCFF)
▶
2017/18 Year End Audit will be performed the week of September 10th ▶
First Interim Report will be presented on December 10, 2018
▶
The new Governor will present their preliminary State Budget in January 2019 for the 2019/2020 fiscal year
▶
The District will continue to collaborate with HTA and CSEA regarding funding scenarios for 2019/2020 and beyond
▶
Implement and monitor the Fiscal Stabilization Plan at it relates to HUSD goals, students, operations and cash needs of the District
24
Recommendation Approve the 2017/2018 Unaudited Actuals and 2018/2019 Revised Budget
25
26
Questions??
•
Governing Board -
•
District Administration -
•
David Olney, Superintendent Jovy Yankaskas, Deputy Superintendent, Educational Services Dr. George Landon, Assistant Superintendent, Business Services Karen Kelly-Pelayes, Assistant Superintendent, Personnel Robert McCollum, Assistant Superintendent, Innovative Technology and Communication
Report prepared by: –
•
Niccole Petersen Eric Swanson Lee Rogers Cody Gregg Marcy Kittinger
Kortney Grimm, Director, Fiscal Services
Board Meeting Date: - September 10, 2018
15576 Main St., Hesperia, CA 92345 (760) 244-4411 www.hesperiausd.org
1
Hesperia Unified School District 2017/2018 Unaudited Actuals and 2018/2019 Approved Budget Preparing Today’s Students for Tomorrow’s World #IMPACTtheFutureHUSD Business Services Dr. George Landon Kortney Grimm September 10, 2018
Purpose of Report ▶
Unaudited Actuals ▶
▶
Actuals – July 1, 2017 – June 30, 2018
Budget ▶
Various financial assumptions ▶
2018/2019
▶
2019/2020
▶ 2020/2021
2
Student Priority Goals and Fiscal Stabilization ▶
Maximize student achievement
▶
Alignment of the Local Control Accountability Plan (LCAP) and Budget to the eight priority areas ▶
Student Achievement, Student Engagement, State Standards, Course Access, School Climate, Other Student Outcomes, Basic Services, Parent Involvement
▶
Establish a 3% cash balance (approximately $6 million) on hand every month during each fiscal year
▶
Eliminate deficit spending for each fiscal year
▶
Align staffing to enrollment of schools
▶
Maintain a State required 3% unrestricted reserve level for all financial reports
▶
Update progress of the Stabilization Plan with Interim Reports
3
2018/2019 Projected Grade Span Funding ▶
Grade span funding per average daily attendance (ADA) within LCFF model ▶
▶
Base Funding at full implementation ▶
TK - 3 = $8,235 ($7,459 GS plus $776 CSR)
▶
4-6
▶
7 – 8 = $7,796
▶
9 – 12 = $9,269 ($9,034 GS plus $235 CTE)
= $7,571
Unduplicated % = 80.25% ▶
Supplemental - $1,279 avg.
▶
Concentration - $936 avg.
4
Average Daily Attendance ●
17/18 P2 = 20,526
5
Projected Rate Increases for STRS Pre–Reform Year
Employer
Post- Reform
Employee
6
State
2013/2014
8.25%
8.00%
8.00%
3.041%
2014/2015
8.88%
8.15%
8.150%
3.454%
2015/2016
10.73%
9.20%
8.560%
4.891%
2016/2017
12.58%
10.25%
9.205%
8.328%
2017/2018
14.43%
10.25%
10.205%
9.328%
2018/2019
*16.28%
10.25%
10.205%
9.328%
2019/2020
*18.13%
10.25%
10.205%
9.328%
2020/2021
*19.10%
10.25%
10.205%
9.328%
2021/2022
18.60%
10.25%
10.205%
9.328%
Projected increase in STRS rates will be funded by the District’s LCFF allocation
Year
Projected Cost Increases
Cumulative Total
2015/2016 $ 2,594,753
$ 9,442,785
2016/2017 $ 2,252,792
$ 11,695,577
2017/2018 $ 2,339,725
$ 14,035,302
2018/2019 $ 1,882,713
$ 15,918,015
2019/2020 $ 2,002,367
$ 17,920,382
2020/2021 $ 1,051,944
$ 18,972,326
*These costs are included in the district’s budget
Projected Rate Increases for PERS Year
Employer
2013/2014
11.442%
2014/2015
11.771%
2015/2016
11.847%
2016/2017
13.888%
2017/2018
15.531%
2018/2019
*18.062%
2019/2020
*20.800%
2015/2016 $
366,184
$ 3,783,981
2020/2021
*23.500%
2016/2017 $
753,522
$ 4,537,503
2021/2022
24.600%
2017/2018 $
970,050
$ 5,507,553
2022/2023
25.300%
2018/2019 $ 1,272,140
$ 6,779,693
2023/2024
25.800%
2019/2020 $
992,922
$ 7,772,615
2024/2025
26.000%
2020/2021 $
992,826
$ 8,765,441
Projected increase in PERS rates will be funded by the District’s LCFF allocation Year
Projected Cost Increases
Cumulative Total
*These costs are included in the district’s budget
7
Utilities 2013/14 Gas
$
265,009
Electricity
$
Water/Sewer
2014/15 $
2015/16
8 2016/17
355,050
$
284,852
$
238,544
3,679,712
$ 3,801,376
$
3,480,443
$
$
1,092,378
$ 1,090,765
$
980,118
Waste Disposal
$
708,088
$
685,667
$
Total
$
5,745,187
$ 5,932,858
$
2017/18 $
2018/19 (Budget)
180,646
$
288,418
3,383,849
$ 2,677,156
$
3,651,834
$
1,077,651
$ 1,185,573
$
1,068,882
621,262
$
629,685
$
646,040
$
670,787
5,366,675
$
5,329,729
$ 4,689,415
$
5,679,921
9
Substitutes/Extra Duty Unrestricted 2013/14
2014/15
2015/16
2016/17
2017/18
Substitutes
$ 3,033,419
$ 3,180,404
$ 3,710,854
$ 3,713,409
$4,195,258
2018/19 (Budget) $3,268,267
Extra Duty/Stipends
$ 2,361,840
$ 2,319,396
$ 2,735,510
$ 3,054,953
$3,554,722
$2,302,995
Total
$ 5,395,259
$ 5,499,800 $ 6,446,364 $ 6,768,362
$7,749,980 $5,571,262
Routine Repair and Maintenance 2016/17
2017/18
10
2013/14
2014/15
2015/16
2018/19 (Budget)
3% of General Fund
$ 5,057,493
$ 6,072,455
$ 7,207,581
$ 7,158,947
$7,082,966
$7,501,241
Expense
$ 3,892,763
$ 4,316,030
$ 5,350,554
$ 5,543,278
$6,757,990
$7,920,000
11
Special Education 2013/14 Cost of Services
2014/15
2015/16
$ 19,223,063 $ 22,962,719 $ 26,484,524
2016/17
2017/18
$ 29,905,202 $ 32,664,995
2018/19 (Budget) $35,040,304
Transportation 2013/14
2014/15
2015/16
12
2016/17
2017/18
2018/19 (Budget)
Revenues
$ 1,934,918
$ 1,934,918
$ 1,934,918
$ 1,934,918
$ 1,934,918
$ 1,934,918
Expenses
$ 5,824,371
$ 5,445,926
$ 5,749,542
$ 6,238,973
$6,696,664
$7,425,773
Contribution
$ 3,889,453
$ 3,511,008
$ 3,814,624
$ 4,304,055 $4,761,746
$5,490,855
•Totals are inclusive of Home-To-School and Special Education transportation services •Funding for transportation is an add on to the Local Control Funding Formula (LCFF)
Salaries and Benefits 17/18
13
18/19
Salaries & Benefits
$ 191,955,076
Salaries & Benefits
$ 203,805,947
Other
$ 52,970,584
Other
$ 57,250,592
Total
$ 244,925,660
Total
$ 261,056,539
20/21
19/20
Salaries & Benefits
$ 209,738,188
Salaries & Benefits
$ 214,651,278
Other
$ 54,626,637
Other
$ 53,365,090
Total
$ 264,364,825
Total
$ 268,016,368 13
Six Year History of Salary and Benefits Administration Year
Salary
Benefits
Certificated Salary
Classified Benefits
Salary
Benefits
2018/2019
3.92% - 7/1/18
Tiered Caps Single - $7,900 Two-Party - $13,000 Family -$15,500
3.00% - 7/1/18
$1,000 increase to District Cap - $14,516
3.92% - 7/1/18
Tiered Caps Single - $7,750 Two Party - $12,750 Family - $15,500
2017/2018
3.54% - 7/1/17
$500 increase to District Cap - $13,330
4.00% - 7/1/17
No change to District Cap - $13,516
3.54% - 7/1/17
$500 increase to District Cap - $12,942.20
2016/2017
3.25% - 7/1/16 0.25% - 1/1/17 2.00% - off schedule
$1,500 increase to District Cap $12,830
3.25% - 7/1/16 0.25% - 1/1/17 2.00% - off schedule
$1,500 increase to District Cap - $13,516
3.25% - 7/1/16 0.25% - 1/1/17 2.00% - off schedule
$1,500 increase to District Cap - $12,442.20
2015/2016
7.5% - 7/1/15
$1,000 increase to District Cap - $11,330
7.5% - 7/1/15
$1,000 increase to District Cap - $12,016
7.5% - 7/1/15
$1,000 increase to District Cap - $10,942.20
2014/2015
5% - 7/1/14
$1,000 increase to District Cap - $10,330
5% - 7/1/14
$1,000 increase to District Cap - $11,016
5% - 7/1/14 1.25% - off schedule Return of 5 furlough days
$500 increase to District Cap - $9,942.20 6.0 hr employees 100% Cap eligible
2013/2014
Restored 6 furlough days (7%)
District Cap - $9,330
Restored 6 furlough days (7%)
District Cap - $10,016
Restored 5 furlough days Restored two steps (7%)
District Cap - $9,442.20
Total
30.46% ongoing 2.00% off schedule
$4,000 increase to cap
30.00% ongoing 2.00% off schedule
$4,500 increase to cap
30.46% ongoing 3.25% off schedule
$3,500 increase to cap
14
Change in Gap and COLA Percentages Description
2017/2018 Actual
2018/2019 Actual
2019/2020 Projected
2020/2021 Projected
2021/2022 Projected
COLA
1.56%
3.70%*
2.57%
2.67%
3.42%
Gap %
44.97%
100%
100%
100%
100%
Description
January - Governor’s Preliminary Budget for 2018/2019
May - Governor’s May Revision for 2018/2019
June - State Adopted Budget
*Cost-of-Living Adj. (COLA)
2.51%
2.71% + 0.29% = 3.00%
2.71% + 0.99% = 3.70%
$295 per ADA
$344 per ADA
$184 per ADA
One-time Funding
15
Trigger Language Grade Span
HUSD’s LCFF Base Amount @ Ratification
HUSD’s LCFF Base Amount @ State Budget
Difference
2017/2018 P2 ADA
Potential Additional Funding
TK - 3
$ 8,141
$ 8,235
$ 94
6,003.49
$
564,328.06
4-6
$ 7,484
$ 7,571
$ 87
4,903.94
$
426,642.78
7-8
$ 7,707
$ 7,796
$ 89
3,192.90
$
284,168.10
9 -12
$ 9,163
$ 9,269
$ 106
6,425.65
$
681,118.90
Total
20,525.98
One-Time
$
295
$ 184
$ (111)
$ 1,956,257.84 $ (2,278,383.78)
Total Additional Funding for 2018/2019
$
Cost of 1% for All Employees after increased compensation for 2017/2018
$ 1,858,076.00
Potential Compensation for All Employees
(322,125.94)
(0.17%)
Staff is not recommending decreasing compensation for all employees. 16
Financial Multi-Year Assumptions Description
2017/18
2018/19
2019/20
2020/2021
COLA
1.56%
2.71% + 0.99% = 3.70%
2.57% estimated
2.67% estimated
Funding Gap %
42.97%
100%
100%
100%
Unduplicated %
80.24%
80.25%
80.25%
80.25%
ADA for LCFF Calculation
P2 - 20,526
20,526
20,526
20,526
Salary Step (all eligible employees)
$2,253,193
$2,253,193
$2,253,193
$2,253,193
Column Salary Advancement (teachers)
$235,357
$235,357
$235,357
$235,357
Teacher Signing Bonus
$150,000
$150,000
$150,000
$150,000
Class Sizes
TK-3 (24:1) avg.
TK-3 (24:1) avg.
TK-3 (24:1) avg.
TK- (24:1) avg.
Additional FTEs (General)
8 FTEs - $840,000
-5 FTEs ($540,000)
-10 FTEs ($1,080,000)
-16 FTEs ($1,728,000)
Additional FTEs (Special Ed)
1 FTE - $108,000
5 FTEs $540,000
2 FTEs $216,000
2 FTEs $216,000
Reduction of Combination Classes
15 FTEs $1,620,000
Transfer to Deferred Maintenance
$1,500,000
$1,500,000
$1,500,000
$1,500,000
Transfer to Debt Service
$2,500,000+RDA+Energy
$2,500,000+RDA+Energy
$2,500,000+RDA+Energy
$2,500,000+RDA+Energy
Transfer to Special Reserve
$2,000,000
$2,000,000
$2,000,000
$0
Routine Restricted Maintenance
3.0%
3.0%
3.0%
3.0%
Workers’ Compensation Rate
3.41%
2.73%
2.73%
2.73%
One-Time Mandated Cost Revenue
$3,066,419*
$3,776,780 projected
$0
$0
Election Costs
$
$
$
$
Special Education Costs
$ 250,000
$ 250,000
$ 250,000
$ 250,000
Professional Development
$ 105,000
$ 126,000
Eagle Plaza Rent
$ 209,092
$ 209,092
$ 209,092
$ 209,092
*Funds used for the 17/18 ELA adoption.
17
Proposed Use of Projected 2018/2019 One-Time Funds
Description
Amount
Projected Revenue ($184 x 20,526.38)
$ 3,776,780
$26.59 per Enrollment for Each School
$
Future Textbook Adoption
$ 2,000,000
Portables for Reducing Combination Classes
$ 1,200,920
Total Expenses
$ 3,776,780
575,860
18
COLA Funding Description Projected LCFF Base Revenue Increase
Step Advancement for All Employees
2019/2020 - 2.57% $
4,416,066
2020/2021 - 2.67% $
4,692,055
2,253,193
2,253,193
Column Advancement for Teachers
235,357
235,357
Signing Bonus for Teachers
150,000
150,000
STRS Percentage Increase
2,002,367
1,051,944
992,922
992,826
5,633,839
4,683,320
PERS Increase Total Obligations
Excess/(Deficit)
$ (1,217,773)
$
8,735
Does not include implementing new programs, increased compensation, or increased costs for goods/services.
19
Multi-Year Projections Unrestricted/Restricted 2017/2018 Unaudited Actuals
20
2018/2019 **Budget
2019/2020 **Projected
2020/2021 **Projected
$ 33,734,865
$ 33,328,599
$ 31,195,561
$ 27,085,472
Revenues
$ 244,519,394
$258,923,501
$ 260,254,736
$ 266,265,906
Expenditures
$ 236,098,980
$250,041,369
$ 255,146,526
$ 260,754,824
Excess/(Deficit)
$
$
$
5,108,210
$
5,511,082
Sources/Uses
$ (8,826,781)
$ (11,015,170)
$
(9,218,299)
$
(7,261,544)
$ 33,328,599
$ 31,195,561
$ 27,085,472
Beginning Balance
Ending Balance
8,420,414
8,882,132
$ 25,334,910
**Based on LCFF being funded at 100% for 18/19, 19/20, and 20/21.
20
Components of Ending Fund Balance Unrestricted/Restricted 2017/2018 Unaudited Actuals
2018/2019 Budget
2019/2020 Projected
21
2020/2021 Projected
Revolving Cash Fund
$
75,000
$
75,000
$
75,000
$
75,000
Inventory
$
43,943
$
50,000
$
50,000
$
50,000
Legally Restricted
$
2,663,795
$
2,312,026
$
3,479,018
$
2,979,018
Economic Uncertainties (3%)
$
7,391,837
$
7,831,697
$
7,945,610
$
8,175,731
Prepaid Expenditures
Other Commitments: Assigned
$ 22,971,132
$ 20,926,838
$ 15,660,844
$ 14,055,161
Other Assignments
$
$
$
$
0
0
0
0 21
Impact of State Adopted Budget 2017/2018 Estimated Actuals
Beginning Balance
2018/2019 Adopted Budget
$ 33,734,866
$ 33,328,599
200,650,913
216,823,576
14,366,870
13,497,539
State
, 18,232,274
20,005,478
Local
11,299,337
8,596,908
2018/2019 State Adopted Revisions
2018/2019 District Revised Budget
2019/2020 Budget
2020/2021 Budget
$ 33,328,599
$ 29,867,663
$ 25,757,574
218,779,834
225,304,836
231,316,006
13,497,539
13,497,539
13,497,539
16,721,322
12,855,453
12,855,453
8,596,908
8,596,908
8,596,908
257,595,603
260,254,736
266,265,906
Revenue LCFF Sources Federal
Total Revenue
$ 1,956,258
(3,284,156)
244,519,394
258,923,501
(1,327,898)
101,468,511
108,423,568
108,423,568
108,236,046
108,447,820
Classified
35,464,449
38,065,740
38,065,740
38,579,256
39,118,447
Benefits
55,022,116
57,316,639
57,316,639
62,922,886
67,085,011
Books and Supplies
11,265,733
11,741,222
11,741,222
10,665,362
11,005,583
Services/Operating
30,048,929
32,171,023
32,171,023
32,559,073
32,914,060
877,767
439,274
439,274
300,000
300,000
(526,186)
(580,415)
(580,415)
(580,415)
(580,415)
236,098,880
250,041,369
250,041,369
255,146,526
260,754,824
Excess/(Deficit)
8,420,514
8,882,132
7,554,234
5,108,210
5,511,082
Sources/(Uses)
(8,826,781)
(11,015,170)
(11,015,170)
(9,218,299)
(7,261,544)
Net Increase
(406,267)
(2,133,038)
(3,460,936)
(4,110,089)
(1,750,462)
$ 25,757,574
$ 24,007,112
Expenditures Certificated
Capital Outlay Indirects Total Expenditures
Ending Fund Balance
$ 33,328,599
$ 31,195,561
$
29,867,663
22
Other Projected Ending Fund Balances as of: June 30, 2018 Description
23
Amount
Adult Ed Fund (Fund 11)
$
1,035,464
Cafeteria (Fund 13)
$
7,420,779
Deferred Maintenance Fund (Fund 14)
$
1,680,203*
Special Reserve (Fund 17)
$
Capital Facilities (Fund 25)
$
State School (Fund 30)
$
614
County School (Fund 35)
$
7
Special Reserve (Fund 40)
$
74,106
Debt Service (Fund 56)
$
33,743,365
Total
$
66,927,980
16,737,463 6,235,979*
*Will be spent down for Summer 2019 facility projects. 23
What can we expect? ▶
Full implementation of the Local Control Funding Formula (LCFF)
▶
2017/18 Year End Audit will be performed the week of September 10th ▶
First Interim Report will be presented on December 10, 2018
▶
The new Governor will present their preliminary State Budget in January 2019 for the 2019/2020 fiscal year
▶
The District will continue to collaborate with HTA and CSEA regarding funding scenarios for 2019/2020 and beyond
▶
Implement and monitor the Fiscal Stabilization Plan at it relates to HUSD goals, students, operations and cash needs of the District
24
Recommendation Approve the 2017/2018 Unaudited Actuals and 2018/2019 Revised Budget
25
26
Questions??
