FY 2016-17 FIRST INTERIM BUDGET Berkeley Unified School District

Changes Since Adoption Deficit/Surplus Multi-Year Projections AGENDA 1 Budget Highlights Changes Since Adoption Deficit/Surplus Multi-Year Projections Other Considerations Good EVENING – Javetta and I will be presenting the preliminary budget and will bring the adopted budget back on June 24 First the highlights – Significant highlights Increased funding due to gap closure and one time funding We negoitated a raise for BFT effective 15-16 (thanks to all on the negotiating team) and the budget includes an increase for ALL employees Significant contribution to BSEP CSR as the measure sunsets in 16-17 We are asking the board to pass a resolution to commit funds for

First Interim Budget Highlights 2 Positive Certification Measure E1 passed by voters by 88.86% and will replace Measure A effective FY 2017-18 Impact of Measure E1 will be discussed in Multi-Year Projections Proposition 55 approved by state voters. Will extend high income tax rates for an additional 12 years, through 2030 Undesignated Fund Balance of $5.3 million after designations of $.7 million, for an Ending Fund Balance of $6 million The change in fund balance since Adoption is an increase of $357,00 The governor signed the state budget today, and significant changes that impact our budget will need to bring back to the board a revised budget within the 45 day window which has to be on or before August 8. Significant change will include the impact of the on-going additional state funding for special education. WE get to keep $2.7 million instead of transferring it to the general fund. BFT negotiations included a clause that if we received the adult education program funding we will give a 2% salary increase for fy 2016-17. This will be included in the MYPP in the 45 day revision, There are changes to gap funding based on the DOF calculator, which will also be included in the 45 day revise

Changes Since Adoption Deficit/Surplus Multi-Year Projections AGENDA 3 Budget Highlights Changes Since Adoption Deficit/Surplus Multi-Year Projections Other Considerations Good EVENING – Javetta and I will be presenting the preliminary budget and will bring the adopted budget back on June 24 First the highlights – Significant highlights Increased funding due to gap closure and one time funding We negoitated a raise for BFT effective 15-16 (thanks to all on the negotiating team) and the budget includes an increase for ALL employees Significant contribution to BSEP CSR as the measure sunsets in 16-17 We are asking the board to pass a resolution to commit funds for

Changes Since Adoption 4 0.66% reduction in gap funding resulted in $32,289 reduction in base funding Loss of 303 students in Unduplicated Student count which resulted in $87,342 reduction in Supplemental Revenue Net savings of $403,646 in expenditures (details on following slide) Contribution to Special Education Transportation in the amount of $72,988 The governor signed the state budget today, and significant changes that impact our budget will need to bring back to the board a revised budget within the 45 day window which has to be on or before August 8. Significant change will include the impact of the on-going additional state funding for special education. WE get to keep $2.7 million instead of transferring it to the general fund. BFT negotiations included a clause that if we received the adult education program funding we will give a 2% salary increase for fy 2016-17. This will be included in the MYPP in the 45 day revision, There are changes to gap funding based on the DOF calculator, which will also be included in the 45 day revise

Changes Since Adoption 5 The governor signed the state budget today, and significant changes that impact our budget will need to bring back to the board a revised budget within the 45 day window which has to be on or before August 8. Significant change will include the impact of the on-going additional state funding for special education. WE get to keep $2.7 million instead of transferring it to the general fund. BFT negotiations included a clause that if we received the adult education program funding we will give a 2% salary increase for fy 2016-17. This will be included in the MYPP in the 45 day revision, There are changes to gap funding based on the DOF calculator, which will also be included in the 45 day revise

Changes Since Adoption 6 Restricted State Funding New funding for College Preparation and College going rate $140 per ADA for Unduplicated Students in grades 9-12 Estimated funding for College Readiness is $150,982

Changes Since Adoption Deficit/Surplus Multi-Year Projections AGENDA 7 Budget Highlights Changes Since Adoption Deficit/Surplus Multi-Year Projections Other Considerations Good EVENING – Javetta and I will be presenting the preliminary budget and will bring the adopted budget back on June 24 First the highlights – Significant highlights Increased funding due to gap closure and one time funding We negoitated a raise for BFT effective 15-16 (thanks to all on the negotiating team) and the budget includes an increase for ALL employees Significant contribution to BSEP CSR as the measure sunsets in 16-17 We are asking the board to pass a resolution to commit funds for

Structural Deficit 8

Changes Since Adoption Deficit/Surplus Multi-Year Projections AGENDA 9 Budget Highlights Changes Since Adoption Deficit/Surplus Multi-Year Projections Other Considerations Good EVENING – Javetta and I will be presenting the preliminary budget and will bring the adopted budget back on June 24 First the highlights – Significant highlights Increased funding due to gap closure and one time funding We negoitated a raise for BFT effective 15-16 (thanks to all on the negotiating team) and the budget includes an increase for ALL employees Significant contribution to BSEP CSR as the measure sunsets in 16-17 We are asking the board to pass a resolution to commit funds for

Multi-Year Projections 10

Multi-Year Projections 11

Multi-Year Projections 12 FY 2017-18 First year of Measure E1 Decrease in CSR transfer from BSEP based on model due to one-time bonus excluded from teacher average One time contribution to Adult Education, one time revenue and expenses removed Surplus of $.3 million Increase in STRS/PERS estimated to be $1.2 million FY 2018-19 Salaries and Benefits for BTSA included Deficit spending by $1.2 million Increase in STRS/PERS estimated to be $1.1 million

Changes Since Adoption Deficit/Surplus Multi-Year Projections AGENDA 13 Budget Highlights Changes Since Adoption Deficit/Surplus Multi-Year Projections Other Considerations Good EVENING – Javetta and I will be presenting the preliminary budget and will bring the adopted budget back on June 24 First the highlights – Significant highlights Increased funding due to gap closure and one time funding We negoitated a raise for BFT effective 15-16 (thanks to all on the negotiating team) and the budget includes an increase for ALL employees Significant contribution to BSEP CSR as the measure sunsets in 16-17 We are asking the board to pass a resolution to commit funds for

Other Considerations 14 The following were not included in FY 2017-18 in the Multi-Year Projections Future negotiated salary increases Possible Berkeley High School redesign

Questions?