Amador County Public Schools

Governor's Proposals for the 2019-20 State Budget and K-12 Education

~a K. •

Amador County Public Schools

Budget Development Workshop

Business Services Department Jared Critchfield

Cl 2019 School StlVlcn of Caifomla. Inc.

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INC. "' An Employee-Owned Company

Governor's Proposals for the 2019-20 State Budget and

K-12 Education Presented by

School Services of California, Inc., Staff

© 2019 School StlVlcts of CalWomia, Inc.

© 2019 School Services of California, Inc.


';=~ Agenda 'fii ~

o How the Budget Supports the LCAP o Budget Development Process and Timeline

o State Budget Perspective and the Economy

O Local Control Funding Formula (LCFF)

o County Office of Education Operations Grant

o Impact of Employee Retirement Systems (CalSTRS & CalPERS)

o Discretionary Grant Funding (One-time Funds)

o Special Education

o Base I Core and Supplemental Services

o Multi-Year Projections

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0 2019 School Slfvices of Califotm, Inc.

3 "it=~ Coming Into Focus - A Coherent System y ~ O 2019 School Sorvicn of Cailomla. Inc.

o 2018-19 State Budget investments, changes to the Local Control and Accountability Plan (LCAP) template, and additional transparency requirements are helping to make a single, coherent, local, state, and federal accountability system a reality

© LCAP Dashboard

@ Federal Addendum © Systems of Support



4 ,'f==~ A Coherent System - LCAP ...._,.. ~ 2019 School StnriCff of Ctlifomla, Inc

o The LCAP remains the centerpiece of our accountability system

o Describes an LEA's goals, actions, services, and expenditures to support positive student outcomes

o The LCAP continues to evolve with the goal of making it more user friendly while incorporating other reporting requirements

u New budget overview for parents

o New prompts to identify and detail plans for schools identified for comprehensive support and improvement as required by the Every Student Succeeds Act

~· A Coherent System - LCFF Budget Overview for Parents '1 ~

5

,........ 0 2019 School StnricH of Caifomoa, Inc

LCF, ...... OoteMitwtorP.,.....:Dl!Jtrc>-t LCFF ....... Owmtwtor,.,.._:N&nfltlveR~ PtQe

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Budget Development Process! 2019-20 6

© 2il19 School Servic11 of Califomla, Inc.

' J I

January 2019

February -March 2019

April 2019

May 2019

June 12, 2019

June 26, 2019

Governor releases budget proposal Staff begins work on revenue and expenditure estimates

Identify staffing needs for 2019-20 Certify 2•d Interim Report Board discussion on district I county goals Stakeholder feedback and input (Staff and community meetings, surveys, etc.)

Board discussion - Budget priorities Preliminary decisions I recommendations regarding staffing for 2019-20

Governor proposes 2019-20 state budget revisions known as the 'May Revise' Staff makes adjustments based on 'May Revise"

Preliminary 2019-20 LCAP and Budget draft presented to the Board

Public Hearing on 2019-20 proposed budget Board adopts the LCAP and Budget for 2019-20

7 --==~ Themes for the 2019-20 Governor's Budget 'f ~ © 2019 School Senriua of Catifomla, Inc.

o Governor Gavin Newsom's first State Budget lays the groundwork and signals his governing philosophy and outlook for the next four years

O The economy continues to outperform expectations, but the recovery from the Great Recession is in its tenth year and some fear a downturn is looming

o The growth in Proposition 98 for 2019-20 is meager even though state revenues are outpacing the forecast

o Local educational agencies (LEAs) will continue to face budget challenges as Local Control Funding Formula (LCFF) funding flattens and costs rise

o The education budget contains some new proposals, but Governor Newsom's early childhood education initiative will take center stage

o Accountability remains a priority as the California School Dashboard (Dashboard) and other metrics continue to evolve



"==~ The Economy and Revenues Still Strong s , 71

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o Former Governor Jerry Brown inherited a State Budget mired in red ink, focusing his attention on restoring the state's fiscal health

o Governor Newsom starts his term with a record reserve and proposes to build upon that

w The Budget seeks to, increase the reserve to $15.3 billion in 2019-20, exceeding the 10% target established by Proposition 2

lJ The Budget also allocates most of the new funds to one-time expenditures

o Like his predecessor, Governor Newsom's Budget notes the General Fund revenue loss if a recession were to occur

==i $70 billion loss over three years, with Proposition 98 absorbing $30 billion

o For now the broader economic outlook is positive, but risks are always present

"tj .....

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o Governor Brown's position on funding and legislation was well known, so legislators have waited him out on certain hot topics, expecting more receptive perspectives from Governor Newsom on:

o Charter schools tJ Early childhood education u Facilities

O And while Democrats control both houses and the Governor's office, they are not all the same shade of blue

u The wave election brought in Democrats from historically conservative areas, making them less likely to be progressive

o Governor Newsom encounters a seasoned Legislature with term limits longer than his own and leaders that have been through State Budget negotiations before u These dynamics could make for more interesting State Budget dynamics than under

Governor Brown



- • Accountability in 2019 ..... ~ 10

~ © 2019 School Services of C11ifomi•, Inc.

o Governor Newsom has indicated that he intends to continue former Governor Brown's signature school funding program and believes that continued successful implementation of the LCFF and its accountability and continuous improvement system are key next steps for the state's public education system

o With the Dashboard now in place and the LCFF officially meeting its funding targets in fiscal year 2018-19, there will be a much larger emphasis on outputs and accountability for the K-12 system moving forward

tJ Policymakers and stakeholders will become increasingly interested in the LCFF's efficacy

O How and when will we know if it is working?

o New transparency requirements and 2018-19 State Budget investments in technical assistance, community engagement, and Multitiered Systems of Support (MTSS) bring us one step closer to reaching the state's aspirational goal of a single coherent system of support

-==~ UCLA's Economic Outlook "j ~

o UCLA economists forecast a "3-2-1" economy

u 3% GDP growth in 2018

o 2018 second quarter U.S. GDP was 4.1%



o However, as the economy slows, the chances of a recession increase

u One-sixth chance of a recession in 2019

u One-third chance of a recession in 2020


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© 2019 School Setvict1 of C11ifomi1, Inc.


12 "'==: The California Economy , r "wtttiiiir 0 2019 Schoof Servieff of C11ifoml1, Inc.

o The California economy continues to grow but at a slower rate than the immediate years following the Great Recession

o Continued growth of the economy will rely on three major factors, which may be difficult to achieve

o The Budget assumes steady job growth and a more balanced distribution of wage increases across all workers

13 ,'t== Historically Low Unemployment for California .,....,.. C 2019 School S«vlces of Cllfomi1, Inc.

o While above the national rate, California's unemployment rate of 4.1% represents an historic low

12.0"'-

10.0"!.-

8.0'Mo-

6.0 .... -

'.0~-

2.0%-• C1hror"'a

• u~.

Unemployment Rate

197519n 1979 1981 19E3 19€5 1987 1989 1991 1993 1995 1997 19~9 20ll 2003 2005 2C07 2C09 2011 2013 2015 2017 2019

Source: Employment Development Department



14 Big Three Revenues - Personal Income, Sales

liiiii•ll7

and Use, and Corporation Taxes ......,, © 2019 School Selvlc11 of C11ifoml1, Inc .

s1so.o I $145.0

$140.0

$135.0

$130.0

$125.0

$120.0

$115.0

$110.0

$105.0

$100.0 l 2018-19

(in billions)

2019·20 2020·21

o LAO, November 2018 (Growth Scenario)

o LAO, November 2018 (Recession Scenario)

E:!I January State Budget Proposal

15 "==~ Risks to the California Economy and the State Budget 7

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O Governor Newsom and the UCLA economists identify a different set of key risks to California's economy- they aren't mutually exclusive

Governor

• Policy conflicts with the federal government

• Volatile stock market

• An aging population

• Housing crisis

UCLA • Unratified tri-party trade

agreement between California, Mexico, and Canada

• Continued trade tensions between the U.S. and China

L.__ ~--· ---- --

o The health of the economy drives state revenues and thus the State Budget

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- • What's Not in the Budget? 16 , .., •a• r F c 2019 School Strvic" o1 cal!lomla. inc.

o Not surprisingly when a new Administration takes office, there is little time to flush out the details of all the proposals contained in the Governor's Budget

o Over the course of the legislative hearings, additional specificity is expected for:

The $576 million funding various Special Education proposals

o The Early Childhood Education proposals

o While new funding is provided for Special Education, funding for equalization of rates is not included in the 1Budget

o The LCFF targets have been achieved, but this is a modest goal; higher LCFF aspirational targets are not included in the Budget

O The Budget does not provide any funds for one-time discretionary grants

o A $2.8 billion (3.6%) increase from last year's revised State Budget

O The minimum guarantee has declined from the 2018 Budget Act for both 2017-18 and 2018-19

~a K. •

o Due to lower-than-anticipated ADA and year-over-year decline in General Fund revenue growth from 2017-18 to 2018-19

u However, funding remains level due to maintaining a $44 million "over-appropriation" for 2017·18 and using settle up payments to offset unfunded 2018-19 obligations


'JANIA REP" --~

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Cl 2019 School s.MeH of Caldomja. lne

2018-19 $77.9 billion

I


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© 2019 School s.Mces of C1ffomia, Inc.

$85.0

$80.0

$75.0 .. ,g $70.0

~ $65.0

$60.0

$55.0

$50.0

$45.0

$51.7 $49.2 $49.7

Proposition 98 Funding Over Time 2008·09 to 2019·20

$47.3

L I

$58.1 $59.0

$67.1 $69.1

$80.7 $n.9

$75.5

$71.6

2008-09 2009·10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016·17 2017-18 2018-19 2019-20

Source: 2019·20 Governor's Budget, page 32

19 '\i=~ 2019-20 Local Control Funding Formula I 'f

........... 0 2019 School Semen of California. Inc.

o The State Budget proposes $2 billion towards LCFF to fund the 3.46% statutory COLA

u This brings LCFF funding to $63 billion (up from $61 billion in 2018·19)

o 2019-20 LCFF growth provides an average increase in per-pupil funding of an estimated $343 per ADA, or 3.37% (individual results will vary)

o The lower 3.37% increase takes into consideration that no COLA is provided for Targeted Instructional Improvement Grant (TllG), Transportation, or Economic Recovery Target



"1: 1: 2019-20 LCFF Funding Factors 20 , -r

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o The K-12 COLA is 3.46% for 2019·20 and is applied to the LCFF base grants for each grade span

Grade Span 2018·19 Ba11 Grant 3.46%COLA Per ADA

K·3 $7,459

4-6 $7,571

1·8 $7,796

9·12 $9,034

- • 2019-20 LCFF Funding Factors , ... ~

$258

$262

$270

$313

2019-20 Bae Grant Per ADA

$7,717

$7,833

$8,066

$9,347

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~ C 2019 School s.Mcn ct CH1om11. 1nc.

O Two grade span adjustments (GSAs) are applied as percentage increases against the adjusted base grant, also receiving the benefit of a 3.46% COLA in 2019·20

o Grade K-3 -10.4% increase for smaller average class sizes

o Grades 9-12- 2.6% increase in recognition of the costs of Career Technical Education (CTE) coursework

Grade Span

K-3

4-6

1·8

9-12

2019·20 Base Grant Per ADA

$7,717

$7,833

$8,066

$9,347

GSA

$803

$243

2019-20 Adjusted Base Grant

$8,520

$7,833

$8,066

$9,590



22 ~\iii== 2019-20 LCFF Funding Factors ~ 0 2019 School Services of C11ifom11, Inc.

o Supplemental and concentration (S/C) grants are calculated based on the percentage of an LEA's enrolled students who are English learners, free and reduced-price meal program eligible, or foster youth - the unduplicated pupil percentage (UPP)

Grade Span 2019-20 Adjusted 20% Supplemental 50% Concentration Grants Per ADA Grant - Total UPP Grant - UPP Above 55%

K·3 $8,520 $1,704 $4,260

4-6 $7,833 $1,567 $3,917

7-8 $8,066 $1,613 $4,033

9-12 $9,590 $1,918 $4,795

2019-20 LCFF Funding Factors - ACUSD 23

C 2019 School s.Mcn of Caifomi1, Inc.

Grade Span 2019-20 Adjusted

ACUSD 20% Supplemental A CU SD

Grants Per ADA Grant-Total UPP UPP=46%

K·3 $8,520 $10,351,800 $1,704 $952,365

4·6 $7,833 $6,579,720 $1,567 $605,489

1·8 $8,066 $5,162,240 $1,613 $474,867

9·12 $9,590 $11,412,100 $1,918 $1 ,049,913

Total LCFF $33,505,860 Total LCAP $3,082,634 Base



"' Cl)

25%

~ 20% ~ u .E 15'/• LL LL 0 a: 10% > ~ ~ 5% w

0%

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O 2019 School Sonricn of Clilifomi1, Inc.

Actual LCFF Increases During Implementation Phase

nnl nnl nnl nn1 2013·14 (1.57%) 2014·15 (0.85%) 2015-16 (1.02%) 2016-17 (0.00%) 2017·18 (1.56%) 2018·19 (3.70%) 2019·20 (3.46%)

COLA Applied to LCFF Targets

o Low (10% UPP) o Medium (50% UPP) • High (90% UPP)

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© 2019 School Services of C11ifomi1, Inc.

As districts worked to reach their targets, the UPP of a district played a significant role in the

amount of funding received



COE funding has been minimally increased/or flat

since 2015-16

All county office of education (COEs) were at or exceeded

LCFF targets in 2014-15

COEs at their LCFF targets will receive a 3.46% COLA

in 2019-20, but may result in no new funding

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COEs also receive transportation and TllG

add-ons

-==: County Office of Education Funding - Operations Grant 21 , ~ C 2019 School Services of Cllilomoa, Inc.

o The operations grant includes three components - a base grant for each COE, a uniform amount per district in the county, and per-ADA amounts based on countywide ADA

Funding Component 2019-20 Rates ACOE

For each county $721,177 $721,177

For each school district $120,196 ,per school $120,196

within the county district

Countywide ADA: 0 - 30,000 $76.97 per ADA $299,028

Total $1, 140,401



County Office of Education Funding-Alternative Education - •, Grant

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........ O 2019 School s.Mcu of C11itomia, Inc .

o The alternative education grant is calculated on the following factors:

UPP based on eligible students enrolled in COE programs meeting eligibility criteria for SIC grants

Base Grant

2019-20 base grant of $12,334 per ADA (includes the 3.46% COLA)

Supplemental Grant

Equal to 35% of the 2019-20 base grant for eligible students ($4,317 per student), including all juvenile court school students

Concentration Grant

Equal to 35% of the 2019-20 base grant for eligible students exceeding 50% of enrollment ($4,317 per student); or 17.5% of the 2019-20 base grant for all juvenile court school student$ ($2, 158 per student)

29 ·=~ CalSTRS - Employer Contributions 'tj ~ O 2019 School Semen of Coifomla, Inc.

O The State Budget recognizes the cost pressures LEAs face with rising the California State Teachers' Retirement System (CalSTRS) employer contribution rates

$3 billion one-time

non-Proposition 98 to reduce liabilities

for employers

/

/

$700 million to reduce the employer contribution rate in

both 2019-20 and 2020-21

$2.3 billion towa.rds employers' liability, which is expected to

reduce the out-year employer contribution

rate by approximately 0.5%



CalSTRS Employer Contribution Rates - Current Law 30 'i=:r Versus Governor's Proposal

~ Cl 2019 School Sttvict1 of C1lifomla, Inc.

20.00"!.

19.00°1. 18.60%

18.00% 618.10%

6 18.10% --- 18.10% -- 6 17.60%

17.00'/o 617.10%

16.00"/o

15.00%

14.00"/1 2018-19 2019·20 2020-21 2021-22' 2022-23'

oQooAssembly Bill (AB) 1469 c. Proposal

'Beginning In 2021·22, the CalSTRS Board h11 1uthority lo inc1H1eldecre11e the employer contribution rite (with some restrictions) to fully fund the unfunded li1bility by 2(M6

- • Discretionary Grant Funding 31

'f 7 s Ii) 2019 School Sttvict1 of CU!omta, Inc.

O During the last four years of the economic recovery, school districts have experienced major upward revisions of the current-year Proposition 98 guarantee, providing huge one-time discretionary grants in the following year

LJ 2018-19: $1.1 billion or $184 per ADA

u 2017-18: $877 million or $147 per ADA

u 2016-17: $1 .3 billion or $214 per ADA

o 2015-16: $3.2 billion or $530 per ADA

a In contrast, the Governor's Budget indicates that Proposition 98 has been revised downward in the current year and therefore no discretionary grant funding is proposed for 2019·20

u Nor does Governor Newsom use other one-time funds for discretionary grant funding

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32 - - Special Education .. _~ ~ 0 2019 School Setvices of CaMomia, Inc

o While former Governor Brown was hesitant to make additional investments in Special Education, Governor Newsom, in his inaugural State Budget, has made a significant funding proposal for students with disabilities (SWDs)

u Governor Newsom notes that school funding mechanisms should be equitable, transparent, easy to understand, and focused on the needs of students

u He also raised concerns that early intervention services can be cost prohibitive, with the federal government providing only a fraction of the funding necessary to support mandated services for preschool-age children with disabilities

u And finally, he notes many school districts cite a lack of resources as a barrier to providing supports for pre-kindergarten and early elementary students who may benefit from services in addition to those identified in an Individualized Education Program (IEP), or who may not otherwise qualify for Special Education services

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o In attempts to address these issues, Governor Newsom proposes $576 million (of which $186 million is one time) to support expanded Special Education services and school readiness supports at LEAs with high percentages of both SWDs and unduplicated students

o Eligible LEAs may use these grants to fund supplemental services not currently included in an IEP for a student with disabilities and for preventative services that may reduce the need for additional services in future years

o Noting that school districts were most likely to be identified as needing support because of poor performance on student outcome indicators for SWDs, this funding could also be used to adopt strategies to improve Special Education student outcomes identified through the statewide system of support and/or other activities to build upon or expand local MTSS efforts

u These funds would be allocated outside of the current Assembly Bill (AB) 602 funding formula



34 .::..~=~- Special Education 'f ~ ~ 0 2019 Scl>ool StMcH of Calilomia, Inc.

O In addition to this funding proposal, Governor Newsom proposes an ongoing 3.46% cost-of -living increase, estimated at $18.67 per ADA

o The 2019-20 estimated AB 602 Statewide Target Rate increases to $558.35 per ADA

o An official 2018-19 AB 602 Statewide Target Rate has not yet been released as the California Department of Education (COE) is still calculating the effect of separating the Program Specialists and Regionalized Services funding out of the existing formula in the 2018·19 State Budget

o No funding is proposed to increase and equalize AB 602 base rates

O Finally, the Administration intends to pursue policy changes to improve coordination regarding Medi-Cal billing to better leverage available federal funding for medically related Special Education costs

o This has been a lo,ng-standing policy issue in past years

Special Education 35

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o In addition to Governor Newsom's funding proposal, he also proposes to strengthen accountability for the outcomes of SWOs by pursuing statewide policies to improve all of the following:

o Coordination between general education and Special Education programs

u Transparency around local planning for regional Special Education services

o Transitions between regional centers and LEAs for three-year-old children with exceptional needs

0 These policies would follow on those already being implemented in the 2018-19 State Budget to increase Special Education budget transparency and accountability



- • Meeting the MPP Requirement 36 .. 71 s 0 2019 School SoMcn ol Calif0mta, Inc.

o For LEAs facing the proportionality conundrum, it is more important than ever to measure resources and quantify how those resources come to bear on student achievement- this is the challenge and opportunity of the LCFF and the LCAP

What supplemental Utilize the SSC Define Your Measure services are LCAP Decision-

Core Services achieving results? Making Tree

~ J ~ " See Fiscal Repott articles "Part 1: Proportionality-Past, Present, and Future," "Part II: Proportlonllity-Helpl I've Fallen (Into the Proportionality Conundrum) and Can't Get Up," and "Part Ill: Proportionality-The Principle of Subsidiarity Comes Home to Roost" In the wonsllop moun:es

37 -==~ Identifying Core and Supplemental Services ¥ 71 s C 2019 School Strvicn of Califomia, Inc.

Progr1ms and/or Services

EXAMPLE: Elementary Math Coaches

SIC Grant Checklist Snapshot

Requir.d by law?

N

SIC Gr1nt Elpendllur1 Crllaril 111111

Identified lllCl'Nlt or need improvement

111pporl911 by lbovt whit dill? ii pnMdld

to ll?

y y

Relllld to one oflllt .... prlori!les?

y

Tlfglled ICl!oolwldt or dlslrlc:t·

wldt?

Oistrictwide


Summary a Conclusions

111111 progl1ft\lteAice 111ppllnllnltl? Can JOU Ult SIC gr111t funclln9 to

lllpporl th• progrl!WterVlct? I so, should you? Wiiy or wlly not?

Thia is a supplemental program and we believe we can expend SIC grant

dollars to fund the existing program and to expand it. Our stakeholders support the program as it is already

demonstrating results.


38 ,,,;tS ssc Dartboard ~ 0 2019 School StMCH of California, Inc.

o The· complete SSC Dartboard is included in our materials at the end of this section

u Accumulation of assumptions from various sources

Factor K·3 4-6 7-8 9-12

2019·20 Base Grants $7,717 $7,833 $8,066 $9,347

GSAs $803 $243

2019-20 Adjusted Base Grants $8,520 $7,833 $8,066 $9,590

Factor 2018-19 2019-20 2020·21 2021·22

Department of Finance 100.00% Gap Funding Percentage Statutory COLA 3.70%* 3.46% 2.86% 2.92% ' Includes statutory COLA of 2.71% plus 1n additional 0.99"/o represented by an lddition11 $670 million

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O 2019 School Services of Ctlifomit, Inc.

Assumption

COLA%

CalSTRS Rate

Change From First Interim to Second Interim

2018-19 2019·20 2020-21 Applied to

0.00% 0.89% 0.19%

0.00% , -1.03% -1.00%

• LCFF • Special Education and other

categorical programs • MBG

• Certificated salaries

O Many LEAs in declining enrollment may be able to partially reduce estimated out-year budget cuts


Governor's Proposals, for the 2019-20 State Budget and K-12 Education

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C 2019 School SeMces of CalfonU, Inc.

S700

$600

ssoo

S400

S300

$200

S100

$666

SCG<owllt ------------, $117 I I

I I

: Spedlt Edwc.ltion l : ContribvtiOft I

I 1 : I I I I I I $343 I I

f----------- sco-~-181 SS ... -Mii ... _ -

.. ----------. I I I I

l Sptcl• Eduealion : I Coftlribution I

l 1 : I I I I I I I I

k----------lal - 1114

-.. ,

.----------, I I I I

: $pedll£~ : I CoM1bl.ltbl I I ? I I I I I I I I I I I

~~-... $303

SCG$111

---LCFF Growth R......,ut1 Ellpondlturtt LCFF Growth Rt vtnuts Ellpondlturts LCFF Growth RtvtnUH Expondlturtt LCFF Growth R1vtnut1 Ei.pondtt.Jrtt

3.l'll. COLA + Gtp Funding

201'·19

3.46% COLA

2019-20

2.Hll. COlA 2.92" COLA

2020.21 2021-22

41 "==~ Is COLA-Only Environment Our Future? "§ ~ Q 2019 School Stlvices of Caltfomla, Inc,

o Definitions:

LI Statutory COLA- Annual percentage change in the "Implicit Price Deflator" for state and local governments for the United States as published by the U.S. Department of Commerce

u Consumer Price Index (CPI) -Annual change in the price of goods and services purchased by urban consumers

2018·19 2019-20 2020·21 2021·22 2022·23 Compounded

Effect

Statutory COLA 2.71% 3.46% 2.86% 2.92% 2.90% 15.76% California CPI 3.58% 3.18% r-3.05% 2.92% 3.15% r 16.92%



42 ';=: Local Agency Reserves 7 1 s e 2019 School 54Mcts of California, Inc.

o Underestimated state revenues resulted in one-time funds owed to LEAs

u However, reserves increased in the past will quickly subside

o A larger reserve is recommended because of:

o State economic crisis

u Fast growth

u Smaller district

w Declining enrollment

8 Deficit spending

u Basic aid district

o Remember, the state-required minimum reserve is just that- a minimum u All local agencies in California need more

43

0 2019 School SoMct1 of Callfomi1, Inc.

Component

Committed Monies

Assigned Monies

Description

Amount that can be used for any purpose, but has been designated for ·specific future uses by the local school board

Amount that can be used for any purpose but has been designated for specific future uses by a district employee

Amount that can be used for any purpose and has Unassigned not been designated for any specific future use -

Monies Includes Reserve for Economic Uncertainties

Example

Unspent funds set aside by the school board to repaint a building next year

Unspent funds set aside by the superintendent to replace computers next year

Unspent funds not yet designated for any specific future use



44 , 7' -==: Minimum Wage Increases ~ 0 2019 Schools.Mus of Clifom1a, Inc.

o Effective January 1, 2019, minimum wage increased to $12 per hour for employers with !11!2!! than 25 employees

O Employers with 25 employees or fewer were required to comply with the $11 per hour minimum wage starting January 1, 2019

Effective Date: Efrectlve Date: Exempt Minimum Exempt Minimum Exempt Minimum Minimum W.gt

> 25 Employett ~ 25 EmployMI S1llry S1l1ry S1l1ry (Weekly) (Monthly) (Annually)

$12.00/hour January 1, 2019 January 1, 2020 $960 $4,160 $49,920

$13.00/hour January 1, 2020 January 1, 2021 $1,040 $4,507 $54,080



Note: There are many cities and counties in California that have an ordinance requiring a higher minimum wage than the state

45 "==~ CalPERS Rate Increases 'f ~ e 2019 School Ser.tees of C1llfomt1, Inc.

O The employer contribution to CalPERS is proposed to increase to 20.7% in 2019-20, up from 18.062% in 2018-19

o Classic members continue to pay 7 .0%, while new members also pay 7 .0% which may fluctuate from year to year based on the PEPRA requirement to pay half the normal cost rate

Actual Projected

2018-19 2019-20 2020-21 2021·22 2022-23 2023-24 2024-25

18.062% 2.0.7% 23.4% 24.5% 25.0% 25.5% 25.7%

~a K •



46

0 2019 School Semen of Cllilom11, Inc.

o The Budget proposal includes $3 billion in one-time non-Proposition 98 funds to reduce the longterm liability for employers towards CalSTRS

.i $700 million would buy down the employer contribution rates in 2019-20 and 2020-21

..J The remaining $2.3 billion would be paid toward the employers' long-term unfunded liability

CalSTRS Rates

Current Statutory Proposed Year Employer Rate Employer Rate

2019-20 18.13% 17.10%

2020-21 19.10% 18.10%

o See SSC Dartboard for future employer contribution rates beyond 2020-21

47

e 2019 School SeMcn of Cailomi1. Inc.

2018-19

COLA 2.7'1%- Estimated at $14.24 per ADA

Statewide Target Rate $539.68 Per ADA*

2019·20 Proposed Budget

COLA 3.46%- Estimated at $18.6'7 per ADA

Statewide Target Rate $558.35 Per ADA*

'Calculated after removing the 2017·18 Regionalized Services/Program Specialists funding from the AB 602 calculation

D No funding proposed to increase or equalize AB 602 funding rates

D One-time and ongoing funding proposed to be used for Special Education services and school readiness services not currently specified in the IEP and/or additional support for MTSS



"==~ FCMAT Multiyear Projections - ACUSD

' 7 ....,...,

Revenues $41,462,846 $42,425,039 Expenditures $42,669,853 $42,223,336 Excess (Deficiency) ($1 ,207,007) $201,703 Projected Unrestricted Ending ($172, 151) $29,551 Fund Balance

Projected Qualified Qualified Certification

Revenues $12,555,763 $12,646,764 Expenditures $13,113,293 $12,963,231

Excess (Deficiency) ($557,530) ($316,467) Projected Unrestricted Ending ($29,275) ($340, 711) Fund Balance

Projected Negative Negative

Certification


48

0 2019 School SIMCH of C11fo<ni1, Inc

$44,501,202 $43,287,890

$1,213,312

$1,242,862

Positive

49

C 2019 School s.Mcn of Cllifomia. lne.

$12,830,951 $13,821,704

($990,753)

($791 ,465)

Negative


50 - - The Road Ahead iqp -~ ~ © 2019 School Servicn of California, Inc.

o Remember that the Governor's State Budget proposal marks the beginning of the process, not the end

O We expect the Legislature to push back on the Governor's priorities and propose their own o As the various proposals are considered by legislative committees, we can expect both

confrontation and compromise O The key difference this year will be the unknown dynamic between a new Governor and a

well-established legislative leadership with a strong Democratic majority o Both Senate President pro Tempore Toni Atkins and Assembly Speaker Rendon have been

through State Budget negotiations before and both could be in their positions for several years to come

O This makes them formidable at the negotiating table Q Consistency from January to the May Revision to the enacted State Budget was a hallmark of

former Governor Brown -this is an unknown variable in 2019

51 ~¥==~ Closing Thoughts ~ © 2019 School Services of California, Inc.

Q Governor Newsom is making his mark and distinguishing himself in his proposed 2019-20 State Budget

o While respecting the education reform of Brown's LCFF, he is charting his own course in addressing the whole child through:

o Early childhood education u Parental leave o Health care LJ Housing insecurity

o And he has gone out on a limb to dedicate significant non Proposition 98 funds to help education through pension system solvency, K-12 facilities funding, and investments to make children better prepared to learn when they reach our schools

a We look forward to continuing to see the new vision Governor Newsom has for the state of California and wish him well as we all take this journey together



Thank you &h90I ~eryices '2!tali tornia

INC. "' An Employee-Owned Company

@:1 2019 School Se<vitH of Caifornla, Inc.


Documents

Amador County Public Schools