Milpitas Unified School District 2018-19 Budget Study June 12, 2018

Process Aligned with District’s Strategic Goals Collaboration with All Stakeholders Governor’s May Revision School Services & Department of Finance’s Recommendation

Overview Finishing Current Year with a Good Ending Fund Balance 2018-19 No Need to Use the Reserve Fund A Balanced Budget in the Subsequent Two Years with the Help of Reserve Funds Deficit Spending Gap Continues to Grow

2017-18 Funding Source

2018-19 General Fund Revenue $116,472,892 5

LCFF Funding Factors

Enrollment Projection

LCFF & Discretionary Funding History

2018-19 General Fund Expenditure $118,559,006

Major Expenditure Changes Certificated Staffing Net Increases $408K: -4.2 FTEs in Regular Ed and Special Ed -2.0 FTEs Administrators -<3.0> FTEs Instructional Coaches Salary Step, Longevity: $1.3M Benefits Increase $2.1M with H&W All Program Carry Overs or One Time Funding are Removed <$6.9M> Operational Cost Increases $393K: Utilities, Insurance Premium Special Ed Program Cost Increases: $518K

Staffing Projections

STRS & PERS Cost Increase

Benefit Rate

Programs Requiring General Fund Contributions Special Education Program Child Development Center (CDC) Student Nutrition

Special Education-Statewide 15

Special Education-MUSD 16

Special Education Program Total Contribution Increase: $1.57M Salaries and Benefits: - 2.2 FTE Teachers: $272K - 0.6875 FTE IA: $26K - Benefits Increase: $504K - Step, Longevity Increase: $250K COE Program, NPS: $518K

CDC Program

Student Nutrition

General Fund MYP Summary

Strategic Reserve Fund

Building Fund Summary

Facility Funding Overview 2012 Measure E Bond Fund will be Closed in 2017-18 Fewer Developer Fee Collections are Expected State Funding is Limited to Address our Facility Needs Building Fund Ending Balance is $10M

The Road Ahead… A Recession is Not Projected, However We Need to be Prepared for Future Economic Down Turns Address Internal Structural Deficit Spending 2018-19 First Interim Update