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BUDGET WORKSHOP

Manhattan Beach Unified School District

325 S. Peck Avenue

Manhattan Beach, CA 90266

Phone: (310) 318-7345, x5900

Budget Workshop - January 15, 2020

BUDGET WORKSHOP FORMAT

Budget Workshop – January 15, 2020

• Budget Report

• Governor’s Budget Update

• Possible Reductions

• Timeline

• Open Workshop Discussion

2

GUIDING QUESTIONS

• Questions/comments about the

budget

• Ongoing revenue generating ideas

• Program reductions that would

most significantly alter the MBUSD

experience

• What have we missed?

Budget Workshop – January 15, 2020

3

4

ENROLLMENT

K-5 6-8 9-12 Total

2014-15 2818 1528 2544 6890

2015-16 2760 1555 2459 6774

2016-17 2754 1473 2547 6776

2017-18 2636 1438 2573 6647

2018-19 2562 1440 2581 6583

2019-20* 2514 1433 2566 6513

*preliminary census day enrollment count


5

SCHOOL FUNDING - LCFF

Grade Span 2019-20 Base Grant Augmentation Grant Total Base Grant

TK-3 $7,702 $801 $8,503

4-6 $7,818 $0 $7,818

7-8 $8,050 $0 $8,050

9-12 $9,329 $243 $9,572

Grade Span

Supplemental Grant20% of Base Grant for

Every High Needs

Student

Concentration Grant50% of Base Grant for

Every High Needs

Student over 55% of

District Enrollment

TK-3 $1,701 $4,252

4-6 $1,564 $3,909

7-8 $1,610 $4,025

9-12 $1,914 $4,786


6

SCHOOL FUNDING - LCFFDistrict Type Basic Aid UPP

Lennox Elementary N 96.28%

Hawthorne Elementary N 89.40%

Centinela Valley High School N 85.63%

Inglewood Unified N 84.92%

Lawndale Elementary N 84.80%

Wiseburn Unified N 46.01%

Torrance Unified Unified N 38.18%

Culver City Unified N 37.23%

Santa Monica-Malibu Unified N 28.60%

South Pasadena Unified N 19.74%

Redondo Beach Unified N 19.10%

El Segundo Unified N 16.00%

Beverly Hills Unified Y 15.60%

San Marino Unified N 15.26%

Palos Verdes Peninsula Unified N 11.95%

La Canada Unified N 8.00%

Manhattan Beach Unified N 5.32%

Hermosa Beach City Elementary N 4.89%


+MBUSD’S BUDGET

Local Funding

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$0.0

$1.0

$2.0

$3.0

$4.0

$5.0

$6.0

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-09

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-10

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-11

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-13

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Grants to the District (in millions)


+MBUSD’S BUDGET

Local Funding

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◼ $225 per parcel

◼ 12,879 taxable parcels

◼ 13.9% exemption rate

◼ $2.49 million in local

revenue from 2018-19

through 2023-24

◼ 27 teaching positions in

2018-19; 23.5 positions in

2019-20


+MBUSD’S BUDGET

Local Funding – Other Key Partners

9

In 2018-19

◼ The City of Manhattan Beach contributed $788,455.50

through the Shared Use Agreement for the use of MBUSD

fields and facilities

◼ PTA’s/PTSA’s contributed $707,803.29 to support site-specific

projects

◼ MBX contributed $92,250.41 to support athletic and extra

curricular activities, plus incredible School Connected

Organization support

◼ Chevron, Skechers, and other local partners generously

support the schools through MBEF and other grant programs


10

PENSIONSCalPERS Actuals/

Current Projection

CalSTRS Actuals/

Legislative Limit

2010-11 10.707% 8.250%

2011-12 10.923% 8.250%

2012-13 11.417% 8.250%

2013-14 11.442% 8.250%

2014-15 11.771% 8.880%

2015-16 11.847% 10.730%

2016-17 13.888% 12.580%

2017-18 15.532% 14.430%

2018-19 18.062% 16.280%

2019-20 19.721% 17.100%

2020-21 22.800% 18.400%

2021-22 24.900% 18.100%

2022-23 25.900% 18.100%

2023-24 26.600% can increase by up to 1% per year

to a maximum employer

contribution rate of 20.25%;

unfunded actuarial obligation to be

eliminated by 2046

2024-25 27.000%

2025-26 26.800%

2026-27 26.700%


11

HEALTH CARE

Health Benefits

Costs

2016-17 $5,201,486

2017-18 $6,109,605

2018-19 $6,999,664

2019-20* $7,473,308

*projected at first interim.


12

SPECIAL EDUCATION

Revenue Expense

2016-17 $4,813,147 $17,915,974

2017-18 $4,960,701 $19,253,987

2018-19 $6,328,070 $22,601,161

2019-20* $6,425,146 $23,954,604

*projected at first interim.


13

REVENUE

LCFF

Revenue

$56,553,075

66%

Federal

Revenue

$2,140,522

2%

Other State

Revenue

$9,952,111

12%

Local

Revenue

$16,932,523

20%


14

EXPENSE

Certificated

Salary

$36,740,469

41%

Classified

Salary

$15,031,654

17%

Benefits

$22,641,552

25%

Supplies

$2,777,237

3%

Services

$12,085,482

14%

Capital

Outlay

$20,000

0%

Other

Outgo/

Indirect

$399,086

0%


15

LCFF GROWTH / COST INCREASES


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MULTI-YEAR PROJECTION

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

Beg Balance $11,149,419 $8,324,150 $4,206,901 ($1,282,700)

Revenues $85,707,344 $85,578,231 $86,345,472 $85,831,491

Expenses $88,558,943 $89,695,480 $91,835,072 $93,557,396

Net Inc/(Dec) ($2,851,599) ($4,117,249) ($5,489,600) ($7,725,902)

Ending Bal $8,324,150 $4,206,901 ($1,282,700) ($9,008,602)

Undesignated

Ending Bal.$1,276,290 $1,089,412 ($4,067,752) ($11,845,323)


17

EXPENDITURE REDUCTIONS

Fiscal Year Amount

2020-21 $3,949,274

2021-22 $3,601,474

Note: additional reductions would be needed in

subsequent years; first interim estimates place

additional 2022-23 reductions at $1.5 million


18

MULTI-YEAR PROJECTION

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

Beg Balance $11,149,419 $8,324,150 $4,206,901 $2,685,629

Revenues $85,707,344 $85,578,231 $86,345,472 $85,831,491

Expenses $88,558,943 $89,695,480 $87,866,744 $85,887,511

Net Inc/(Dec) ($2,851,599) ($4,117,249) ($1,521,272) ($56,020)

Ending Bal $8,324,150 $4,206,901 $2,685,629 $2,629,609

Undesignated

Ending Bal.$1,276,290 $1,089,412 $19,626 $22,984

Note: projections based on anticipated reductions in 2020-21 and 2021-22


19MULTI-YEAR PROJECTIONENDING FUND BALANCE

$-

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

$6,000,000

$7,000,000

$8,000,000

$9,000,000

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

3-Year Escrow

Restricted

REU (5%)

REU (3%)

Undesignated

Amount


20


Previously budgeted reductions

• The district’s professional development budget was reduced

by nearly $260,000

• The district’s instructional materials budget was reduced by

$400,000

• The district’s technology budget was reduced by just over

$400,000 (reducing the technology replacement budget by

over $315,000 and ongoing services by nearly $100,000)

• The district’s legal services budget was reduced by almost

$135,000

• The district’s overtime budget was reduced by nearly $120,000

• The district’s budgets for other departments was reduced by

approximately $75,000


21

COLA

First

Interim

Current

Projection*

Projected

CPI

2019-20 3.26% 3.26% 3.33%

2020-21 3.00% 2.29% 3.14%

2021-22 2.80% 2.71% 3.02%

2022-23 3.16% 2.82% 3.13%


*Based on the Governor’s January Budget Proposal

22

LCFF

First

Interim

Current

Projection*Difference

2019-20 $56,553,075 $56,553,075

2020-21 $57,852,074 $57,472,365 ($379,709)

2021-22 $57,330,081 $57,282,277 ($47,804)

2022-23 $57,647,685 $57,460,408 ($187,277)


*Based on the Governor’s January Budget Proposal

23

SPECIAL EDUCATION


• For 2019-20, the state invested an additional $152.6 million

in Special Education, which brought all SELPAs to the

statewide target rate for base special education funding,

approximately $557 per ADA

• For 2020-21, the Governor proposes increasing the amount

of General Fund revenue put towards Special education by

15%.

• Early estimates are that this will bring funding to the 90th

percentile and will bring the per-ADA funding rate to

somewhere between $640 and $680

• This will likely bring additional revenue to MBUSD, but it is

too early to know what the estimated budget will be.

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OTHER PROPOSALS


• Funding for students with disabilities age 3-5 will be less

($250 million statewide, as compared with $493 million in

2019-20) and may be more restricted

• Other proposals create prescriptive, almost “categorical”

funding streams for very specific purposes

• The proposal focuses on maintaining 2019-20s commitment

to pension relief, with no additional investment

• The proposal does not include any new funds for education

outside of Proposition 98

• Legislators are focused on pension relief, mental health,

special education reform, low performing subgroups, and

LCFF targets.

• Education related ballot measures will include a new school

facilities bond and the Schools and Communities First

initiative.

25

ADOPTED-UNAUDITED “SWING”

Adopted Budget Unaudited Actuals Total Change

2011-12 ($2,176,236) ($1,078,135) $1,098,101

2012-13 ($5,682,446.00) ($2,956,204.00) $2,726,242

2013-14 ($2,977,006.00) $1,127,733.00 $4,104,739

2014-15 ($3,211,807.00) ($1,402,405.95) $1,809,401

2015-16 ($683,646.00) $79,099.47 $762,745

2016-17 ($3,339,507) ($373,275) $2,966,232

2017-18 ($3,303,012) ($2,300,560) $1,002,452

2018-19 ($145,480) ($2,851,599) ($1,468,980)

2019-20 ($3,771,859) ($4,117,249) ($345,390)*

*year-to-date projected “swing” at first interim.


26


Fiscal Year Amount

2020-21 $3,949,274

2021-22 $3,601,474

Note: additional reductions would be needed in

subsequent years; first interim estimates place

additional 2022-23 reductions at $1.5 million


POSSIBLE REDUCTIONSTotal $6,176,500.00

Reduce staffing for enrollment K-12 $ 1,100,000.00

TOSA: Literacy/Tech/Math $ 339,000.00

Assistant Principals (3) $ 400,000.00

Program Specialist $ 45,000.00

Libraries $ 463,000.00

Physical Education $ 480,000.00

MakerSpace $ 150,000.00

Elementary Music $ 495,500.00

Elementary Arts $ 100,000.00

Reading Specialists $ 465,000.00

Science Specialists $ 309,000.00

Zero Period at MBMS and MCHS $ 600,000.00

Class Size Increases in Grade 6-12 $ 600,000.00

Counseling $ 600,000.00


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NEXT STEPS• February 5 and 26

Board Meetings - discuss budget priorities and areas for reduction;

determine a budgetary reduction target

• March 4 (tentative)

Board Meeting - determine areas for reduction

• March 15

Legislative deadline to provide preliminary certificated layoff

notices; note that classified reductions generally require a 60-day

notice timeline

• May 6

Board Meeting – Board action to rescind/finalize layoffs

• May 15

Legislative deadline to provide final certificated layoff notices

• Ongoing

Ongoing funding opportunities to reduce or rescind layoffs


GUIDING QUESTIONS

• Questions/comments about the

budget

• Ongoing revenue generating ideas

• Program reductions that would

most significantly alter the MBUSD

experience

• What have we missed?

MBUSD Budget Workshop – January 15, 2020

+

BUDGET WORKSHOP

Manhattan Beach Unified School District

325 S. Peck Avenue

Manhattan Beach, CA 90266

Phone: (310) 318-7345, x5900


Documents

BUDGET WORKSHOP - BoardDocs, a Diligent Brand...MakerSpace $ 150,000.00 Elementary Music $ 495,500.00 Elementary Arts $ 100,000.00 Reading Specialists $ 465,000.00 Science Specialists