2015-2016

1

BUDGET DEVELOPMENT PROCESS

Enrollment Projections – Fall 2014

Governor’s Budget Release – January 2015

Enrollment Projections Updated – January 2015

2015-16 Staffing Needs Determined – February 2015

NFT Early Retirement Incentive – March 2015

School Site Plans developed – 2 years with budget

information

2

BUDGET DEVELOPMENT PROCESS

LCFF funding estimated based on Governor’s Budget – Feb 2015

Input for development of LCAP – ADCO – Feb 2015

LCAP Survey distributed – March 2015

LCAP Community Meeting – March 2015

Site Budgets developed – April 2015

Position Control roll – April 2015

3

BUDGET DEVELOPMENT PROCESS

Governor’s May Revise – May 2015

Draft LCAP to Board – May 2015

Preliminary LCAP – June 16, 2015

Preliminary Budget – June 16, 2015

LCAP Board adoption – June 23, 2015

Budget Board adoption – June 23, 2015

August 15, 2015 – 45 day Budget Revision

4

BUDGET DEVELOPMENT PROCESS

2015-2016 Budget and Local Control Accountability Plan

(LCAP) Calendar

Click to Launch

5

MULTI-YEAR PROJECTIONS FISCAL YEARS 2015-2016

AND 2016-2017 BUDGET ASSUMPTIONS

DOF GAP funding LCFF (net/decline) 32.19% (2015-2016) and 23.17% (2016-2017)

Effective increase in total LCFF

Funding with decline in ADA 6.14% (2015-2016) and 2.91% (2016-2017)

Estimated Enrollment 7,675 (2015-2016), 7,595 (2016-2017)

Estimated NUSD P2 ADA 7,390.26 (2015-2016), 7,310.26 (2016-2017)

Funded ADA NUSD (Prior Year) 7,470.46 (2015-2016) and 7,390.26 (2016-2017)

Plus NUSD ADA transfer to MCOE 63.42 ADA (2015-2016 & 2016-2017)

State Revenues Zero COLA; removal of all one-time revenue

Federal Revenue Zero COLA; removal of all one-time/carryover

Local Revenues Removed all one-time revenues/expenditures

6

MULTI-YEAR PROJECTIONS FISCAL YEARS 2015-2016

AND 2016-2017 BUDGET ASSUMPTIONS

Changes in Enrollment (87) 2015-2016 and (80) 2016-2017

Staffing Changes (4 FTE) 2015-2016 and (2 FTE) 2016-2017

Certificated Step/Column Increase 1.5% Increase

Classified Step Increase 2% Increase

Retirement Incentive $100,000 (2015-2016) and $100,000 (2016-2017)

Payroll Related Costs New STRS/PERS Rates

Health/Welfare New Rates/Employer Cap

Increase (payroll/HW costs) 9.27% (2015-2016) and 7.83% (2016-2017)

Books/Supplies Removed carryover 2%

Operating Expenditures Removed carryover 5%

Capital Outlay None budgeted

Indirect Cost Rate 5%

Contributions/Restricted Programs 5% Increase

Reserve for Economic Uncertainty 3% Reserve

7

Funded ADA 7,533.88

Base Grant $54,834,461

Supplement Grant $2,770,924

English Learners

Low Income 38.3%

Foster Youth

Concentration Grant $0

Must have more than 55% underserved

8

LOCAL CONTROL FUNDING FORMULA (LCFF)

2015-2016

2015-2016 PROJECTED ENROLLMENT School K 1 2 3 4 5 6 7 8 9 10 11 12 Total

Hamilton 65 57 95 82 89 93 60 56 62 659

Loma Verde 75 55 78 65 49 66 388

Lu Sutton 65 57 49 52 51 44 318

Lynwood 50 44 44 53 71 66 328

Olive 60 49 45 46 72 57 329

PV 95 89 81 88 86 83 522

Rancho 80 67 77 86 93 83 486

San Ramon 75 72 73 84 84 75 463

San Jose 285 265 257 807

Sinaloa 276 296 295 867

Novato 358 353 314 287 1,312

San Marin 242 277 242 267 1,028

Marin Oaks 4 10 16 30 60

Nexus 3 3

NOVA 2 8 20 30 60

NPS 3 1 6 3 4 6 6 4 12 45

Total (2015-2016) 565 490 542 556 598 568 627 620 621 612 654 596 626 7,675

2014-15 CALPADS 595 542 556 602 560 595 604 622 599 646 600 627 614 7,762

Change -30 -52 -14 -46 38 -27 23 -2 22 -34 54 -31 12 -87

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10

2015-2016 PROJECTED P2 & FUNDED ADA

2014-2015 P2

(Projected) 2015-2016 P2

(Projected)

2015-2016 NPS, CDS & COE

(Projected)

2014-2015 Funded ADA

(Projected)

Grade Span

Grades TK-3 2,210.31 2,076.26 11.61 2,221.92

Grades 4-6 1,697.08 1,730.06 23.56 1,720.64

Grades 7-8 1,172.44 1,196.91 16.09 1,188.53

Grades 9-12 2,343.93 2,340.33 58.86 2,402.79

Total 7,423.76 7,343.56

Change From Prior Year (80.20)

Declining or Increasing ADA Decline

Total ADA 7,423.76 7,343.56 110.12 7,533.88

The State allows for districts to use the higher of current year or prior year ADA. Current year ADA attributed to NPS (Non Public Schools) and County Operated Programs, COE (County Office of Education) and CDS (Community Day School) is added on and included in the total "funded ADA".

$54,270,821

$3,464,520

$2,501,818

$11,185,221

Projected Revenues 2014-2015

LCFF/Revenue Limit

Sources

Federal Revenues

Other State Revenues

Other Local Revenues

11 Combined Total Projected Revenue: $71,422,380

$57,605,385

$2,950,000

$1,911,865

$10,410,364

Estimated Revenues 2015-2016

LCFF/Revenue Limit

Sources

Federal Revenues

Other State Revenues

Other Local Revenues

12 Combined Total Projected Revenue: $72,877,614

$59,279,343

$2,950,000

$1,911,865

$10,410,364

Projected Revenues 2016-2017

LCFF/Revenue Limit

Sources

Federal Revenues

Other State Revenues

Other Local Revenues

13 Combined Total Projected Revenue: $74,551,572

14

LCFF FUNDING

$52,383,105

$54,834,461 $56,062,976

$1,887,716

$2,770,924

$3,216,367

2014-15 2015-16 2016-17

Supplemental

Grant

Base Grant

$59,279,343

$57,605,385

$54,270,821

Certificated Salaries $34.5 M 46.7%

Classified Salaries $11.0 M 14.9%

Benefits $13.6 M * 18.3%

Books and Supplies $ 3.5 M 4.8%

Services $ 9.5 M 12.8%

Capital Outlay $ 0 M 0.0%

Other outgo/transfers $ 1.9M 2.5%

Projected Total $ 74.0 M 100.0%

*Includes PERS/STRs increase of $519,979

15

GENERAL FUND EXPENDITURES 2015-2016 PROJECTED

16

STRS Projected Increase

2014-2015 $2.98 M

Rate 8.8%

2015-2016 $3.33 M

Rate 10.73% Increase: $350,331

2016-2017 $4.01 M

Rate 12.58% Increase: $679,211

PERS Projected Increase

2014-2015 $1.1 M

Rate 11.77%

2015-2016 $1.2 M

Rate 12.6% Increase: $113,014

2016-2017 $1.4 M

Rate 15.0% Increase: $293,651

STRS/PERS INCREASES

17

STRS/PERS INCREASES

CalPERS Actual and Projected Rates

2014-15 Projected

2015-16 Projected

2016-17 Projected

2017-18 Projected

2018-19 Projected

2019-20 Projected

2020-21 Projected

11.771% 12.6% 15.0% 16.6% 18.2% 19.9% 20.4%

CalSTRS Rates per Education Code Sections 22901.7 and 22950.5

2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21

Employer 8.88% 10.73% 12.58% 14.43% 16.28% 18.13% 19.1%

Member (2% at 60)

8.15% 9.20% 10.25% 10.25% 10.25% 10.25% 10.25%

Member (2% at 62)

8.15% 8.56% 9.205% 9.205% 9.205% 9.205% 9.205%

OTHER STATE FUNDING 2015-2016

Governor’s Proposed Budget provides for mandated costs

funding $1,356,286

These are new dollars for 2015-2016 budget

Suggested Use is Common Core

2013-2015 Common Core Funding $1,568,112

Two year Program

Professional Development, Instructional Materials,

Technology

All funds will be fully expended by June 30, 2015

18

19

COMMON CORE STATE STANDARD IMPLEMENTATION FUNDING

2013-2014 & 2014-2015 EXPENDITURES

2013-2014

Actuals

2014-2015

Projected Total

Professional Development $207,243 $282,110 $489,353

Instructional Materials $471,701 $235,773 $707,474

Technology $187,856 $183,429 $371,285

Total $866,800 $701,312 $1,568,112

Mandated Costs – suggested use was Common Core

Implementation

Total received $502,687

Funded Wireless Project – summer of 2015

Total cost $1,097,048

Funded with Mandated Costs $502,687

Funded with GF Ending Balance $594,361

One time project

20

MANDATED COSTS/COMMON CORE FUNDING

2014-2015

LOCAL CONTROL

ACCOUNTIBILTY PLAN

DRIVES

NUSD BUDGET

PRIORTIES

21

22

Goal #1

Instructional Coaches

Goal #2

Reduced Class Size –

Grades 4 & 5

Goal #3

Professional Development

Goal #4

Tech Mentor Stipends

Supplemental LCFF

Supplemental LCFF

Base Grant - LCFF

Base Grant - LCFF

LCFF FUNDS

23

Goal #5

Salaries and benefits

Goal #6

Maintenance of facilities

Goal #7

Community Liaisons

Goal #8

Community Liaisons

LCFF Base grant

LCFF Base Grant

LCFF Supplemental Grant

LCFF Supplemental Grant

LCFF FUNDS

24

Goal #9

Subsidy FANS services

Goal #10

Consultants – EL

LCFF Base Grant

LCFF Supplemental Grant

LCFF FUNDS

25

2014-2015 2015-2016

National Equity Project $100,000

ELD Teacher (1 FTE) - Hill Ed Center $65,000

Social/Emotional/Crisis Counselors (School Based-Non Academic) TBD

Instructional Coaches (6 FTE) (3 Elementary/3 Secondary) $593,571 $550,402

Camp University $45,037 $84,800

Kevin Clark - ELD Program $87,000

Career Counseling for Middle Schools TBD

English Learner (EL) Coordinator (1 FTE) $118,897

Community Liaisons $214,542 $218,833

CURRENT AND FUTURE NEEDS OF NUSD

26

CURRENT AND FUTURE NEEDS OF NUSD (CONTINUED) 2014-2015 2015-2016

Bilingual Tutors TBD

Spanish Classes (all students) Elementary TBD

Preschool at all Elementary Sites Outside Agency

Cost Outside Agency

Cost

Step & Column Increases 1.5-2% 1.5-2%

Salary Increase $1,936,445 TBD

Health Benefits Adjustments (Result of the Affordable Care Act/ACA) TBD

Facilities Improvement - General Fund Cost $1,097,048

(Wi- Fi Project) Fund 14, 21, 40

27

MULTI-YEAR PROJECTIONS

COMBINED GENERAL FUND

FISCAL YEARS 2015-2016 & 2016-2017

2014-2015 2015-2016 2016-2017

Revenue $71,422,380 $72,877,614 $74,551,572

Expenditures $76,070,069 $73,886,284 $75,271,859

Net Increase (Decrease) in Fund Balance ($4,647,689) ($1,008,670) ($720,287)

Beginning Fund Balance, July 1 $17,792,593 $13,144,904 $12,136,234

Projected Ending Fund Balance, June 30 $13,144,904 $12,136,234 $11,415,947

FUND BALANCE

Goal is 15%

Budgeted End Fund Balance (EFB) at June 30, 2015 --- 17.2%

Proposition 2

Requires disclosure of components of Ending Fund Balance and

Designations

Could require a EFB of no greater than 6% if triggers are pulled

Budgeted deficit spending of <$4,647,689> will not be realized due

to site and department carryovers of approximately $2 million

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29

10-YEAR HISTORY OF REVENUE, EXPENSES AND FUND BALANCE

UNRESTRICTED GENERAL FUND

Unrestricted 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013 2013-2014

Revenue $41,290,427 $42,753,509 $48,622,905 $47,650,670 $46,766,924 $44,864,439 $46,935,876 $46,696,612 $47,334,188 $52,505,358

Expenditures $34,247,462 $36,234,512 $39,055,747 $38,726,702 $38,500,988 $37,868,434 $40,128,137 $39,973,493 $41,592,410 $44,989,378

Excess/Deficiency $7,042,965 $6,518,997 $9,567,158 $8,923,968 $8,265,936 $6,996,005 $6,807,739 $6,723,118 $5,741,778 $7,515,980

Trans In $73,277 $16,848 $349,794 $600 $0 $1,256,646 $0 $30,000 $0 $0

Trans Out -$203,775 -$152,855 -$72,855 -$172,117 -$72,855 -$146,173 -$179,704 -$1,708,532 -$521,259 -$375,484

Sources $0 $0 $0 $0 $0 $0 $0 $0 $0

Contributions -$6,008,894 -$6,211,065 -$6,800,750 -$7,633,245 -$5,847,939 -$5,192,448 -$6,149,723 -$5,983,655 -$5,392,314 -$6,883,700

Total, Trans In/Out,

Sources/Uses &

Contributions -$6,139,392 -$6,347,072 -$6,523,811 -$7,804,763 -$5,920,794 -$4,081,975 -$6,329,427 -$7,662,187 -$5,913,573 -$7,259,184

Net Increase/

Decrease $903,573 $171,925 $3,043,347 $1,119,206 $2,345,142 $2,914,030 $478,312 -$939,069 -$171,795 $256,796

Beg. Fund Balance $3,964,917 $4,769,566 $4,941,491 $7,984,838 $8,980,764 $11,325,906 $13,690,618 $14,168,930 $13,229,861 $13,058,066

Audit Adjustment -$98,925 $0 $0 -$123,279 $0 -$549,318 $0 $0 $0 $0

Ending

Fund Balance $4,769,566 $4,941,491 $7,984,838 $8,980,764 $11,325,906 $13,690,618 $14,168,930 $13,229,861 $13,058,066 $13,314,862

Total Exp+Outgo $40,386,854 $42,581,583 $45,579,558 $46,531,464 $44,421,782 $41,950,409 $46,457,564 $47,635,681 $47,505,983 $52,248,562

Percent Reserve

(URGF) 11.81% 11.60% 17.52% 19.30% 25.50% 32.64% 30.50% 27.77% 27.49% 25.48%

Percent of Reserve

(GF) 11.06% 13.21% 20.17% 21.74% 26.53% 27.78% 26.68% 24.12% 24.32% 26.84%