LENNOX SCHOOL DISTRICT 2014-15 Proposed Budget Report to Board of Trustees June 9, 2014 Presentation for the Lennox School Board Juan Navarro, President Angela Fajardo, Vice President Sergio Hernandez Jr., Clerk Shannon Thomas-Allen, Member Mercedes Ibarra, Member Presented By: Kevin Franklin

BUDGET ADOPTION Education Code (EC) Sections 42127(a) and 42127(a)(2) require the Governing Board of each school district to adopt a budget on or before July 1 and file that budget with the county superintendent of schools. The Budget can not be approved without an approved LCAP. The District does not have to self certify for 3rd Interim.

Life Cycle of a Budget Adoption (Budget and LCAP) – June 30th 45 day Revise – Due 45 days after State budget adopted if significant changes from adoption 1st Interim – As of Oct 31st, due by Dec 15th 2nd Interim – As of Jan 31st, due by Mar 15th 3rd Interim – As of Apr 30th, due by June 30th (qualified or negative certifications) Unaudited Actuals – As of June 30th, due by Sept 15th

2014-15 Proposed Budget Goals Maintain fiscal solvency for proposed year and two subsequent years (Certify Positive if had been required for Budget) Restore programs and add supplemental support as determined by the LCAP A balanced budget with expenditures not exceeding revenues (Continue working to eliminate the structural deficit) District Reserves at 3% for Economic Uncertainties and additional reserves as determined by policy and LCFF gap funding

2014-15 Proposed Budget Assumptions Reviewed and produced 2013-14 estimated actuals to create 2014-15 beginning balance Implemented current LCFF revenue figures Adjusted for Additional and Temporary Positions proposed for 2014-15 Adjusted for LCAP for 2014-15 Class sizes kept at the same ratios as 2013-14 K-3 Class sizes are already at the LCFF target of 24:1

2014-15 Proposed Budget Assumptions Followed LACOE recommendations for COLA (0.85%) and for LCFF gap funding(28.06%). QEIA Revenue included only for 2014-15 Enrollment/ADA projected at a loss of 15 for budget year and MYP’s. Cost of step/column/range changes included in current year and MYP’s. Increase in CALSTRS and CALPERS contributions per Governor’s May Revise for budget year and MYP’s.

2015-16 and 2016-17 Proposed Budget Assumptions Followed LACOE recommendations for COLA (2.19%) and for LCFF gap funding (28.06%). Loss of QEIA funding (Approx. $2.9M). Replaced with $2.9M LCFF Supplemental and Concentration funding per the LCAP. 2016-17 Followed LACOE recommendations for COLA (2.14%) and for LCFF gap funding (19.50%).

Past and Projected Enrollment

Change in Enrollment

Summary of Unrestricted General Fund MYP 2014/15 2015/16 2016/17 Revenue $ 37,051,116 $ 39,838,698 $ 41,017,000 Expenditures $ 37,131,354 $ 40,973,585 $ 41,814,393 Surplus/ (Deficit) $ (80,238) $ (1,134,887) $ (797,393) Beginning Balance $ 10,316,071 $ 10,235,833 $ 9,100,946 Ending Balance $ 8,303,553 Reserve for Economic Uncertainties $ 1,610,673 $ 1,678,389 $ 1,712,889 Additional Available Reserves $ 8,625,160 $ 7,422,557 $ 6,590,664 Available Percentage 19.07% 16.09% 14.54%

Other Items of Note This Budget adoption report does not call for a school district positive, qualified, or negative status report 2014-15 Current Bargaining Unit Agreements included in projections. District is currently in negotiations with LTA. LMSTA Estimated Actuals are reported in Fund 09. The 2014-15 LMSTA Budget is reported using their own CDS code and is separate from the District’s budget due to their independence.

Other Items of Note Cafeteria Fund (Fund 13) revenue increased by $1,282,430 from 2012-13. This is mostly due to an increase in capturing completed meal applications from every family and due to an increase in participation. The Jefferson ORG project (Fund 35) is projected to be completed by January 2015

What’s Next? District Negotiations Submit Adopted Budget and LCAP by July 1, 2014 Await Governor’s Signature on Signed Budget Delay in implementation of CALSTRS increases? Additional gap funding based on LAO projections? Additional Common Core funding? Additional slots and elimination of family fees for State Preschool? COLA of 0.85% for Categoricals outside of LCFF?

Questions?