Albany Unified School District Regular Board Meeting: March 10 th, 2015 Allan Garde, CBO

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1 2 nd Interim Financial Report Albany Unified School District Regular Board Meeting: March 10 th, 2015 Allan Garde, CBO

2 Revenues The First Interim was approved in December. What changed since then? LCFF Funds ($147,402) State Reduced Funding Towards LCFF Parcel Tax Revenues ($76,719) Increased Exemptions Received Career Pathway Trust - $85,522 Facility-Use Rentals - $20,000 Donations - $51,148 Thank you for your support!

3 Expenditures The First Interim was approved in December. What changed since then? Special Education Contribution ($151,164) Partial Year Reduction in Non-Public School Students Non-Public School costs expected to rise next year based on new enrollment and needs Reduced Budgeted Expenses ($448,907) To more closely reflect End of the Year amounts as not all grants or donations are fully utilized each year (From Restricted Sources)

4 Ending Balance The First Interim was approved in December. What changed since then? Unrestricted Restricted 1st Interim $6,532,380 $343,190 Govenror's Proposal $6,406,182 $343,190 2nd Interim $6,556,178 $792,097 Restricted Portion of Ending Balance Proposition 39 Energy Funds Career Pathways Trust Expenses planned next year North Region SELPA Operating Reserve Donations

5 The 11-Step California State Budget Process

6 Currently Proposed Legislation Four bills introduced to repeal or modify the Cap on Reserves: AB Repeal SB Repeal AB Modify AB 1318 Modify Push led by California School Boards Association (CSBA), repeal recommended by the Legislative Analyst s Office (LAO) Nonpartisan Fiscal and Policy Advisor AB 1226 Adds Professional Development as a ninth priority in the LCAP

7 Correcting a message by the State Superintendent of Public Instruction Schools Chief Torlakson Reports Fewer Districts with Budget Problems "This is welcome news," said Torlakson. "It shows that the improving economy and additional revenues ^ TEMPORARY from Proposition 30 have helped pull many school districts out of financial jeopardy, allowing them to ^ FOR NOW concentrate on their most important task educating their students." UNTIL IN A FEW YEARS, FOR SOME DISTRICTS, WHEN THE ADDITIONAL REVENUES BECOME INSUFFICIENT TO COVER THE ADDITIONAL STATE MANDATED COSTS.

8 Where are the additional revenues going? 2014/15 Current Year Gap Funding $2,248,595 State Mandated Commitments Additional Supplemental Grant Funding ($490,734) STRS Increase ($76,269) PERS Increase ($6,150) Total Required Commitments ($573,153) Board Commitments Additional Teacher Hirings Due to Class-Size and Enrollment ($656,359) Common Core Backfill ($125,000) Restricted Routine Maintenance ($200,000) 9-12 CTE Net to Fund 17 ($227,000) Total Board Commitments ($1,208,359) Total Commitments ($1,781,512) Net LCFF Funding $467,083 Net funding available for other cost increases: Step and Column Salary Increases Health and Welfare Increases Consumer Price Index (CPI) Supply and Services Increases

9 All the Other Funds Facilities DESCRIPTION ALBANY UNIFIED SCHOOL DISTRICT BUDGET SUMMARY ALL OTHER FUNDS ND INTERIM REPORT Deferred Maintenance Fund 14 Building Fund 21 Capital Facilities Fund 25 County Schools Facilities Fund 35 Bond and Interest Redemption Fund 51 $ $ $ Total Revenues $ 214,113 $ 10,000 $ 50,475 $ 1 3,685,648 Total Expenditures $ 1,965,713 $ 1,201,482 $ 76,932 $ 3,074,542 3,614,492 Total Sources Financing Sources (Uses) $ 1,275,000 $ - $ - $ (1) - NET INCREASE(DECREASE) IN FUND BALANCE $ (476,600) $ (1,191,482) $ (26,457) $ (3,074,542) $ 71,156 Budgeted Beginning Fund Balance $ 476,600 $ 1,321,132 $ 26,457 $ 3,074,542 $ 2,904,040 Ending Fund Balance $ - $ 129,650 $ - $ - $ 2,975,196 COMPONENTS OF FUND BALANCE Reserved Amounts $ - $ 129,650 $ - $ - $ - Legally Restricted $ - $ - $ - $ - $ 2,975,196 Undesignated Fund Balance $ - $ - $ - $ - $ - Building Fund 21 Measure E Pool Ending Balance The zero ending balances allow us to apply for Financial Hardship for Marin Elementary

10 All the Other Funds Non-Facilities DESCRIPTION ALBANY UNIFIED SCHOOL DISTRICT BUDGET SUMMARY ALL OTHER FUNDS ND INTERIM REPORT SELPA Pas s - Through Fund 10 Child Development Fund 12 Cafeteria Fund 13 Special Reserves Fund 17 Other Post- Employment Benefits Fund 20 $ $ $ Total Revenues $ 17,378,794 $ 2,243,859 $ 1,004,800 $ - 4,463 Total Expenditures $ 17,378,794 $ 2,239,612 $ 1,047,591 $ - - Total Sources Financing Sources (Uses) $ - $ - $ 2,319 $ 227,531 (1,275,000) NET INCREASE(DECREASE) IN FUND BALANCE $ - $ 4,247 $ (40,472) $ 227,531 $ (1,270,537) Budgeted Beginning Fund Balance $ - $ 231, $ 186, $ 250,001 $ 1,270,537 Ending Fund Balance $ - $ 235, $ 145, $ 477,532 $ - COMPONENTS OF FUND BALANCE Reserved Amounts $ - $ 202,547 $ - $ 477,532 $ - Legally Restricted $ - $ 33,407 $ 145,780 $ - $ - Undesignated Fund Balance $ - $ - $ - $ - $ - Fund 12 (Albany Children s Center) Currently reviewing fee schedule to be in line with local area Fund 13 (Food Service) Additional marketing planned to reduce the current projected deficit

11 Multi-Year Projections Unrestricted General Fund Albany Unified School District nd Interim Budget Unrestricted General Fund 2nd Interim Projected Projected Projected Budget Budget Budget Budget Total Revenues $24,244,017 $25,277,585 $26,395,798 $27,522,915 Total Expenditures $24,972,373 $25,847,617 $26,801,633 $27,650,131 Net Increase (Decrease) $(728,356) $(570,032) $(405,835) $(127,216) Beginning Fund Balance $7,309,533 $6,581,178 $6,011,145 $5,605,311 Ending Fund Balance $6,581,178 $6,011,145 $5,605,311 $5,478,094 Reserve for Revolving & Stores 25,000 25,000 25,000 25,000 Reserve for Economic Uncertainties 1,203,729 1,204,111 1,246,913 1,287,542 Additional Supplemental Funds - 375, , ,845 Total Unrestricted Undesignated Reserves 5,352,448 4,406,339 3,732,512 3,376,706 Growth in Supplemental Funds have to be spent on: Low-Socioeconomic, Foster Youth, and English Learners As LCFF gets implemented, these targeted funds will increase

12 Multi-Year Projections Restricted General Fund Albany Unified School District nd Interim Budget Restricted General Fund 2nd Interim Projected Projected Projected Budget Budget Budget Budget Total Revenues $14,905,745 $14,926,266 $15,010,068 $15,049,127 Total Expenditures $15,151,942 $14,289,423 $14,762,128 $15,267,951 Net Increase (Decrease) $(246,197) $636,843 $247,940 $(218,824) Beginning Fund Balance $1,038,295 $792,098 $1,428,941 $1,676,881 Ending Fund Balance $792,098 $1,428,941 $1,676,881 $1,458,057 Why is the Restricted Ending Balance Growing? Restricted Routine Maintenance 3% Requirement Allocated Expenditures not budgeted

13 Multi-Year Projections Combined General Fund Albany Unified School District nd Interim Budget Combined General Fund 2nd Interim Projected Projected Projected Budget Budget Budget Budget Total Revenues $39,149,762 $40,203,850 $41,405,866 $42,572,041 Total Expenditures $40,124,315 $40,137,040 $41,563,761 $42,918,082 Net Increase (Decrease) $(974,553) $66,810 $(157,895) $(346,041) Ending Fund Balance 7,373,276 7,440,086 7,282,191 6,936,150 Total Restricted Reserves 2,020,827 2,658,052 2,948,794 2,770,599 Additional Supplemental Funds Total Unrestricted Undesignated Reserves Current Year Requirement Positive Certification - 375, , ,845 5,352,448 4,406,339 3,732,512 3,376,706 Total Reserves (With Minimum Required 3% and Undesignated Reserves) Unrestricted Reserves 16.34% 13.98% 11.98% 10.87% 13.34% 10.98% 8.98% 7.87% June Budget Adoption Requirement Positive Certification

14 What is Not Included? What Could Change the Financials by the end of the year? CSEA Job Description Review ATA, CSEA, and SEIU Annual Negotiations Updated SELPA Allocations (Special Education) P-2 Attendance Submitted in April Governor s May Revise

15 Next Steps March 10 Approve 2 nd Interim Budget April 7 Budget Work study #3 By May 10 Governor s May Revise May 26 Budget Work study #4 May 26 Board Update on Governor s May Revise June 9 Public Hearing of the 2015/16 LCAP and Budget June 23 Adopt 2015/16 LCAP and Budget Local Control Accountability Plan Advisory Committee Meetings March 11 April 8 May 13