Centralia School District The Proposed Budget 2017-2018 Presentation to the Board of Trustees June 7, 2017

MISSION STATEMENT Centralia School District is committed to meeting the diverse educational needs of all students and creating lifelong learners by providing exceptional staff and opportunities for family and community involvement in a safe and nurturing environment.

State Economy Overview May Revise shows improvement over January Budget Increased LCFF “Gap” percentage to 43.97% Prop 98 Deferral is gone One-time funds delayed until May 2019 STRS & PERS still biggest issue facing schools 2017/18 revenue projected to grow by $3B Uncertainty remains Growth mostly projected on increased personal income tax Update

Governor’s Revenue Assumptions Update

State Economy Overview Update

2017-2018 Budget Revenue LCFF Revenue Federal Revenue Gap implementation 43.97% COLA 1.56% Federal Revenue Slight decrease due to uncertainty Other State Revenue Decreased approximately $3M due to no one-time revenues Other Local Revenue Decreased due to one-time swing in MAA revenue

Change as a % of Total Rev 2017-2018 Budget Revenue Revenues 2016-17 Estimated Actuals 2017-18 Proposed Budget $ Change Change as a % of Total Rev LCFF/Revenue Limit Sources $37,099,217 $37,741,360 $642,143 1.25% Federal Sources $2,452,322 $2,322,496 ($129,826) -0.25% Other State Revenue $ 8,690,769 $5,512,618 ($3,178,151) -6.20% Other Local Revenue $2,956,818 $1,975,548 ($981,270) -1.92% Total Revenues $51,199,126 $47,552,022 ($3,647,104) -7.12%

2017-2018 Budget Revenue

2017-2018 Budget Expenditures Salaries & Benefits Books & Supplies Includes Step & Column Includes increases to PERS & STRS contribution rate Books & Supplies Decreased due to ELA text book adoption in 2016/17 Services & Other Decreased due to reduction in contracted labor and enforcing cost containment

Change as a % of Total Exp 2017-18 Budget Expenditures Expenditures 2016-17 Estimated Actuals 2017-18 Proposed Budget $ Change Change as a % of Total Exp Certificated Salaries $21,571,404 $22,115,815 $544,411 1.10% Classified Salaries $8,109,234 $8,096,449 ($12,785) -0.03% Employee Benefits $10,190,538 $10,319,209 $128,671 0.26% Books & Supplies $4,096,155 $2,362,976 ($1,733,179) -3.49% Services/Other Oper Expenditures $5,119,412 $3,958,154 ($1,161,258) -2.34 % Capital Outlay $104,950 $96,000 ($8,950) -0.02% Other Outgo (exclude indirect Cost Transfers) $644,000 $657,000 $13,000 0.03% Other Outgo - Indirect Costs Transfers ($210,143) ($233,143) ($23,000) -0.05% Total Expenditures $49,625,550 $47,372,460 $2,253,090 4.54%

2017-2018 Budget Expenditures

General Fund Balance General Fund 2016-17 Estimated Actuals 2017-18 Proposed Budget Beginning Fund Balance $ 8,103,901 $9,677,477 Surplus/<Deficit> Rev - Exp $1,573,576 $179,562 Ending Fund Balance $ 9,857,039

Components of the Ending Fund Balance Combined Assigned & Unassigned Ending Fund Balance 2017-18 Proposed Budget Percent of Expenditures Non-spendable $88,679 0.2% Restricted $2,011,530 4.3% Assigned $3,200,000 6.8% Committed $665,562 1.4% Reserve for Economic Uncertainty $1,421,174 3.0% Unassigned/Unappropriated $2,470,094 5.2% Ending Fund Balance $ 9,857,039 20.8%

Risk Factors for the Future Costs Associated with: Increasing PERS and STRS contributions Uncertain State & Federal Revenues Declining enrollment Implementing the LCAP – increased or improved services Slower Local Control Funding Formula growth

State Economy Overview Update

Multi-Year Budget Projections 2017-2018 2018-2019 2019-2020 Gap Funding % 43.97% 55.28% 57.51% Gap Funding $ $640,000 $975,000 $985,000 STRS & PERS Increase $540,000 $625,000 Step & Column $375,000 $380,000 $385,000 Total Revenue $47,552,022 $48,577,338 $49,618,522 Total Expenditures $47,372,460 $50,019,585 $49,362,384 Surplus/Deficit $179,562 ($1,442,247) $256,138 No revenue from the Fund 40 investment is assumed No transfer in from Fund 40 Used SSC gap closure percents in 2016-17 & 2017-2018

Budget & LCAP Approval Timeline Budgeting for a school district is a continuous, year-round process. Projections continually change based on new and changing information. June 28, 2016 Adopt 2016-2017 Budget December 13, 2016 First Interim (Data as of October) January18, 2017 Governor’s 2017-2018 Budget Proposal March 08, 2017 Second Interim (Data as of January) May 18, 2017 Governor’s May Revise June 07, 2017 Public Hearing for LCAP & Budget June 14, 2017 Board Adopts 2017-18 Budget June 15, 2017 Legislature Adopts Balanced State Budget

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