Junction Elementary School District 2015/16 Adopted Budget and Projections June 18, 2015

Assumptions for 2015/16 Adopted Budget LCFF Gap Funding at the following percentages as recommended by School Services of CA: 2015/16: 53.08% 2016/17: 12.62% 2017/18: 18.24% An additional $601 per ADA of one-time funding was proposed in the May Revised Budget. Because it is unknown how and when these funds will be distributed, or what restrictions may be placed upon them, these have not been included in the June Budget. If the funds are distributed as proposed, the district would receive approximately $144,000 in additional revenues in 2015/16.

Supplemental/Concentration Grant Funding Along with its overall LCFF revenues, the district’s supplemental/concentration funding will increase from $58,061 in 2014/15 to $121,338 in 2015/16 This will increase the district’s obligation for expenditures for additional services to benefit the student population on which the grant is based: Free and reduced lunch-eligible Foster Youth English Language Learners The district is projected to meet this obligation with the services that it plans to provide in 2015/16.

Other Assumptions for 2015/16 Transfer of $97K of accumulated RDA funds from Capital Facilities to General Fund in 2014/15 to reimburse 2014 remediation project. Cafeteria contract as currently constituted. SCOE Business Services contract discontinued June 30, 2015, replaced by current district administrative configuration Expenses related to negotiations budgeted only upon settlement. No SDC class for 2015/16; district’s SDC students to be served via inter-district contracts One NPS student projected for 15/16 and subsequent years No MAA and mandated cost reimbursements; budgeted only on cash receipt Forest Reserve anticipated, but not yet budgeted until revenue amount known STRS employer rate increase from 8.88% to 10.73%. PERS rate at 11.847% from 11.771% Step increases projected for certificated and classified employees Other expenditures as projected in the district’s Local Control Accountability Plan Prop. 39 Clean Energy funds carried over to 2015/16.

Enrollment and ADA Estimates Enrollment Estimates (including County Office) 2015/16 – 249 2016/17 – 249 2017/18 – 247 District ADA Estimates (approx. 96% of enrollment, including NPS and County Office) 2015/16 – 240.55 2016/17 – 239.97 2017/18 – 238.05 LCFF funding for 2015/16 based on current year. Unduplicated Student Enrollment Percentage projected at 46.1% 5 5

Staffing Estimates Projected Certificated Staff, including Special Ed 2015/16 – 13.20 2016/17 – 12.30 (no SDC; music at 0.30 FTE) 2017/18 – 12.30 Classified staff at current levels for the period of the projection. Confidential and administrative staff at current configuration; elimination of SCOE Business Services contract after June 2015 6 6

Budget Projection including Est. Actls.   2014/15 2015/16 2016/17 2017/18 BEGINNING BALANCE 919,236 689,706 543,261 486,276 TOTAL REVENUES 2,461,257 2,433,529 2,454,261 2,487,108 TOTAL EXPENDITURES 2,690,787 2,579,974 2,511,246 2,547,057 NET CHANGE IN FUND BALANCE (229,530) (146,445) (56,985) (59,949) ENDING BALANCE 426,327 Ending Balance as % of Expenditures 21.06% 16.77% 18.82% 16.20%

15/06 Adopted Budget 2015/16 Adopted Budget Unrestricted Restricted   2015/16 Adopted Budget Unrestricted Restricted Total BEGINNING BALANCE 567,523 122,183 689,706 TOTAL REVENUES, TRANSFERS IN 1,844,606 588,923 2,433,529 TOTAL EXPENDITURES, TSFRS OUT 1,881,871 698,103 2,579,974 NET CHANGE IN FUND BALANCE (37,265) (109,180) (146,445) ENDING BALANCE 530,258 13,003 543,261 Components of Unrestricted Fund Balance Amount Cash/Stores/Prepaids 700 Board Assigned Funds 129,000 Economic Uncertainties - 5% 400,558 Total 530,258

Board Assigned and Restricted Ending Balances Components of Restricted Fund Balance Amount Restricted Lottery - Instructional Materials 13,003 Total Board Assignments Amount Donations 1,802 STRS GH Obligation 142,824 Transportation Equipment 100,000 Facility Repairs 70,000 Retiree Health Obligation 47,000 Reserve for Enrollment/ADA Declines 38,932 Total 400,558

Final Notes The district spent a large portion of its General Fund reserve in 2014/15, much of it on one-time expenses to address urgent facility needs. The district’s ongoing projections show continued fund balance declines based on current enrollment, revenue, and expenditure projections. The district will need to find ways to close the remaining gap between revenues and expenditures; it will not be able to draw on its reserves indefinitely As indicated in its assignments of reserve balances, the district has strong reasons to maintain its reserves. Many of the funds once available to districts for capital expenditures, such as the Small Schools Bus Replacement Grant, no longer exist. With the current LCFF formula, it will be the responsibility of districts to accumulate the necessary funds for these expenditures. 10