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DAC-DELACMEETING
February 12, 2019
District’s Fiscal ResponsibilityIs To “Meet Its Fiscal Obligations”
March:
Second
Interim
Report
March:
Second
Interim
Report
September:
Unaudited
Actuals
Report
Three-Year
Fiscal
Certification
June:
Proposed
Budget
Report
December:
First
Interim
Report
3%
Minimum
Reserve for
Economic Uncertainties
(REU)
Positive A district will be able to meet its financial obligations for the current
and subsequent two fiscal years.
Qualified A district may not be able to meet its financial obligations for the
current fiscal year or subsequent two fiscal years.
Negative A district will be unable to meet its financial obligations for the
remainder of the fiscal year or subsequent fiscal year.
State Budget Certifications
NOTE: San Diego County Office of Education (SDCOE) has fiscal
oversight responsibilities over school districts as required by
the State, and can change a district’s self-certification based
upon their review of fiscal data. Negative certification could
trigger a takeover by SDCOE or State.
January 10 – Governor’s Budget Proposal
February – Legislative Analyst Office’s (LAO) Review
State Budget Process
June – Conference Committee
May 15 – Governor’s May Revision
February/March – Legislative Hearings
June 15 – Legislature passes Budget
June 30 – Governor signs Budget
© 2015 School Services of California, Inc.
Governor’s Proposed K-12 2019-20 Education Budget
$2 Billion LCFF Funding
• 3.46% Cost-of-Living, Previously Estimated at 2.57%
$3 Billion Pension Funding
• CalSTRS Employer Rates
2019-20 Decrease from 18.13% to 17.10%
2020-21 Decrease from 19.10% to 18.10%
2021-22 and After: One-Half Percent Proposed Rate Decrease
$576 Million Special Education Grant
• Funding Rates Not Specified
$1.8 Billion Early Childhood Education Funding
• Childcare, Kindergarten Facilities, and Birth to Three Program.
• Universal preschool for low income over three-year period.
Impact of Governor’s
2019-20 Proposed Budget
State
Funding Amount
CVESD Estimated
Funding
(With 200 ADA
Decrease)
LCFF Revenue$2 Billion
(3.46% COLA)
$155K
Estimated Revenue
Increase
CalSTRS Employer
Pension Costs
$3 Billion
2019-20 CalSTRS rate from
18.13% to 17.10%
$1.3 Million
Estimated Expense
Decrease
Special Education
Grant$576 Million To Be Determined
Budget Cuts
Included$1.3M $1.8M $3.5M $7.5M $5.5M $7M
REU % 18.89% 14.75% 11.62% 7.59% 4.41% 3.76%
REU Decrease <$263K> <$10.4M> <$6.9M> <$11.5M> <$9M> <$1.9M>
Governor’s Proposed Budget Impact on 2018-19 First Interim Multiyear Projection Through 2021-22 (Budget Cuts: $7.5M in 2019-20;
$5.5M in 2020-21; $7M in 2021-22) 200 Decrease in 2019-20 ADA
$50,795,227
$40,418,675
$33,464,711
$21,956,615
$12,945,377 $11,021,183
$-
$10,000,000
$20,000,000
$30,000,000
$40,000,000
$50,000,000
$60,000,000
2016/17 2017/18 2018/19 2019/20 2020/21 2021/22
Amount Reserved for Economic Uncertainties vs. 3 Percent Minimum Reserve by Fiscal Year
REU
3% Minimum REU
Revisiting the LCFFGreatly simplifies State funding for Local Educational Agencies (LEAs)
Grade Level
Demographics
(Free/Reduced Price Meal Eligible,
English Learner, and/or Foster
Youth) (Unduplicated)
Supplemental and Concentration Grants
ADJUSTMENTS
$
Source: WestEd
Per Student
Base Amount
Not All Districts Funded at Same LCFF Rate 2017-18 LCFF Revenue Per ADA
Unduplicated
Pupil %59.13% 61.43% 79.12% 60.87% 86.1% 88.5% 90.02%
$8,584.84 $8,689.00
$9,569.53 $9,613.18
$9,952.26 $9,972.63 $10,100.44
$7,500.00
$8,000.00
$8,500.00
$9,000.00
$9,500.00
$10,000.00
$10,500.00
Source: State Attendance Reports
CVESD Attendance District Only (K-6)
23,244.55 23,127.60
23,038.68
22,668.65
22,595.49
22,392.75
21,800.00
22,000.00
22,200.00
22,400.00
22,600.00
22,800.00
23,000.00
23,200.00
23,400.00
2013-14 2014-15 2015-16 2016-17 2017-18 2018-19
Unrestricted General Fund Cumulative Employer CalSTRS and CalPERS Retirement Cost Increase
(Includes Governor’s Pension Rate Reduction in 19-20 and 20-21)
CalSTRS Rate8.88% 10.73% 12.58% 14.43% 16.28% 17.1% 18.1% 18.6% 18.1% 18.1%
CalPERS Rate11.771% 11.847% 13.888% 15.531% 18.062% 20.8% 23.5% 24.6% 25.3% 25.3%
$730,973
$2,075,250
$4,973,549
$8,066,923
$13,000,133
$14,695,446
$17,577,176
$19,127,517 $19,175,854 $19,559,371
$-
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24
Source: 2013-14 through 2017-18 Audited Reports; *2018-19 First Interim Report
$15,341,003
$20,860,264
$23,204,392
$28,944,821
$32,197,462
$36,389,909
$0
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
$35,000,000
$40,000,000
$45,000,000
2013-14 2014-15 2015-16 2016-17 2017-18 2018-19*
CVESD Historical UnrestrictedGeneral Fund Contribution to Special Education
2017-18 and 2018-19Budget Reductions Implemented
2017-18 2018-19
Suspend Transfer to Other Post Employment Benefits (OPEB) Trust
Fund for Retiree Health Costs$1,000,000
Reduce Workers’ Compensation Fund Contribution 800,000
Increase in Non-LCFF Revenues $400,000
Staff Transfers to Restricted Funds 320,000
SDCOE Information Systems Credits
($666K Ongoing Debt Service Reduction; $865K One-time) 1,531,000
Use OPEB Trust Fund for Retiree Health Costs 767,000
Eliminate Bus Equipment Transfer 400,000
ESSC Non-Personnel Savings 100,000
Total $1,800,000 $3,518,000
Glossary ADA (Average Daily Attendance) - Average number of days students attending school, not just
enrolled. Excused absences do not count. Reported three times a year to State. REU (Reserve for Economic Uncertainties) - State required minimum reserve for school
districts based on enrollment. For CVESD REU is 3% of total expenditures. ($280M x 3%= $8.4M). District reserves used to provide funding for future expenditures, economic uncertainties, and other unanticipated costs.
Fiscal Obligations - Ability of District to meet minimum REU for current and next two years. LCFF (Local Control Funding Formula) - State funding formula for school districts. Consists of
base grant funding determined by ADA, and supplemental and concentration grants based on unduplicated student count.
Unduplicated Student Count - number of students at a district that are either foster youth, qualify for free/reduced priced meals, or English Learners. The higher the percentage at a district, the higher the funding for supplemental and concentration funding.
CalSTRS (California State Teachers Retirement System) - pension program for certificated staff. CalPERS (California Public Employee Retirement System) - pension program for classified staff. General Fund - District primary fund for operations. Consists of Unrestricted and Restricted
funds. Restricted Funds are primarily self-supporting and don’t require contribution from the unrestricted fund.
Contributions - transfer of unrestricted general funds to restricted programs to cover overspending of restricted funds. Primarily occurs in special education restricted program.
OPEB (Other Post Employment Benefits) - Health benefit for retirees up to age 65. SDCOE - San Diego County Office of Education, oversight agency for San Diego County schools.
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