State Budget and Preliminary Budget Discussion January 11, 2016 Board Work Session

State Budget Update Over the holidays, ‘stopgap’ education budget was passed – emergency funding. 48% of the fiscal year funding was released. We will continue to get any state & federal funding, except Basic Ed and Special Ed Funding. Bad News – Still have no clue how much additional dollars LEAs will see.

Districts only received 50% of BEF and SEF. LASD amount is $3 Districts only received 50% of BEF and SEF. LASD amount is $3.7 Million

2016 – 2017 Budget Timeline January 18th – Approve a Preliminary Budget February 8th – Staff Analysis March 14th – Special Education Programing Review April 11th – Technology May 16th – Approve a Proposed Final Budget June 27th – Approve a Final Budget

Preliminary Budget – 2016/2017 Concerns PSERS Charter School Operational Improvements/Changes PSERS Charter School State Revenue increases not keeping up with State Mandated expenditures Cash Flow Staff Reduction – FY15/16 Did not replace two admin and one elementary teacher Eliminate Occupational Assessment Tax Building Consolidation Lincoln Edge (LIU Cyber School) Studying Alt Ed/EI/Other Health Insurance Change

Preliminary Budget Assumptions No New State Money Flat Departmental Budgeting No change in Personnel Budgeted Contractual increases Capital Projects $150,000 $45,000 for Van, rest TBD Hybrid Transportation Model

Preliminary Budget dividend into Functions, or departments of expense.

Preliminary Budget divided into Objects, or categories, of expense.

FY2016-2017 Exceptions Above 3.1% Index Dollar Amount Tax Increase Percentage PSERS $139,286 1.01% Special Education $568,831 4.09% Total 708,117 5.10%

Option 3 All Exceptions – 8.20% Option 1 Index – 3.1% Option 2 Above Index – 5.12% * Option 3 All Exceptions – 8.20% Revenue $29,778,004 $30,047,478 $30,458,694 Expense $30,788,998 Surplus(Deficit) ($1,010,993) ($741,519) ($330,304) Option 1 – Index Only 3.1% Option 2 – Index (3.1%) plus PSERS exception (1.01%) and part Special Ed exception (1.01%) Option 3 – Index (3.1%) plus PSERS exception (1.01%) and Special Ed exception (4.09%)

Finance Committee Meeting in February?