Governor’s January 2017 Proposal for 2017-18 Impact on District Budget

STRS and PERS Increases General Fund Impact (millions) 13-14 14-15 15-16 16-17 17-18 18-19 19-20 20-21 STRS % 8.25% 8.88% 10.73% 12.58% 14.43% 16.28% 18.13% 19.20% PERS % (est.) 11.442% 11.771% 11.85% 13.89% 15.5% 17.1% 17.7% 18.6% 19.7% 20.4% 21.10% Annual Increase - $0.5 $1.3 $1.8 $1.7 $1.9 $1.2 Cumulative Increase $3.6 $5.3 $7.0 $7.2 $8.7 $9.0 $10.0 $10.2 Compounded Increase $2.3 $5.9 $11.2 $18.2 $18.4 $26.9 $27.5 $36.9 $37.7 In January, the Governor acknowledged the $80.4 billion shortfall within CalSTRS, but did not provide a proposal to address the shortfall CalSTRS is projected to run out of money in 2046

Average Daily Attendance Declining enrollment trend (based on October enrollment) is projected to continue 2016-17 Budgeted ADA was 14,000 (flat enrollment) 2016-17 Projected ADA based on current enrollment is 13,685

2017-18 Governor’s Budget Proposal 2017-18 Statewide decrease of $953 million from the DOF forecast 1.48% COLA only funded – LCFF remains at 96% of Target 2017-18 District Impact Revised Projection for 2017-18 is now $149.1 million ($3.2 less than previously projected for 2017-18) $0.5 million less than 2016-17 – the 1.48% COLA isn’t sufficient to offset the impact of the decline in enrollment

2016-17 MYP adjusted for the Governor’s 2017-18 Budget Proposal   2016-17 2017-18 2018-19 Revenues: 134,106,250 129,411,479 132,708,282 Expenditures 133,530,703 133,534,522 135,343,630 Increase/(Deficit) 575,547 (4,123,043) (2,635,348) Beginning Fund Balance 15,864,354 16,439,901 12,316,858 Ending Fund Balance 9,681,510 % Reserves 9.23% 5.95% 2.19%   2016-17 2017-18 2018-19 Revenues: 134,106,250 132,594,969 132,369,362 Expenditures 133,530,703 133,534,522 135,343,630 Increase/(Deficit) 575,547 (939,553) (2,974,268) Beginning Fund Balance 15,864,354 16,439,901 15,500,349 Ending Fund Balance 15,500,348 12,526,081 % Reserves 9.23% 5.91% 3.07% One month’s salaries and benefits are about $11.65 million

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