LENNOX SCHOOL DISTRICT 2015-16 Proposed Budget Report to Board of Trustees June 8, 2015 Presentation for the Lennox School Board Sergio Hernandez Jr., President Shannon Thomas-Allen, Vice President Mercedes Ibarra., Clerk Juan Navarro, Member Angela Fajardo, Member Kent Taylor, Superintendent 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

2015-16 Proposed Budget Goals Maintain fiscal solvency for proposed year and two subsequent years (Certify Positive if had been required for Budget) Continue to 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

2015-16 Proposed Budget Assumptions Reviewed and produced 2014-15 estimated actuals to create 2015-16 beginning balance Implemented current LCFF revenue figures (May Revise) Adjusted for Additional and Temporary Positions proposed for 2015-16 and loss of QEIA funds Adjusted for updated LCAP for 2015-16 K-3 Class sizes are already at the LCFF target of 24:1

2015-16 Proposed Budget Assumptions Followed LACOE recommendations for COLA (1.02%) and for LCFF gap funding (53.08%). Enrollment/ADA projected flat 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. Loss of QEIA funding (Approx. $3M). Replaced with $2.9M LCFF Supplemental and Concentration funding per the LCAP.

2016-17 and 2017-18 Proposed Budget Assumptions Followed LACOE recommendations for COLA (1.60%) and for LCFF gap funding (37.40%) Includes proposed LCAP expenditures 2017-18 Followed LACOE recommendations for COLA (2.48%) and for LCFF gap funding (36.70%)

Past and Projected Enrollment

Change in Enrollment

Summary of General Fund MYP 2015/16 2016/17 2017/18 Revenue $ 64,394,270 $ 62,332,963 $ 64,503,779 Expenditures $ 62,887,163 $ 64,147,948 $ 65,777,997 Surplus/ (Deficit) $ 1,507,107 $ (1,814,985) $ (1,274,218) Beginning Balance $ 9,543,434 $ 11,050,541 $ 9,235,556 Ending Balance $ 7,961,337 Reserve for Economic Uncertainties $ 1,886,614 $ 1,924,438 $ 1,973,339 Additional Available Reserves $ 9,163,927 $ 7,311,118 $ 5,987,998 Available Percentage 15.72% 12.70% 10.49%

Other Items of Note This Budget adoption report does not call for a school district positive, qualified, or negative status report 2015-16 Current Bargaining Unit Agreements included in projections. District is currently in negotiations with LTA and CSEA The Jefferson ORG project (Fund 35) is projected to be fully closed out with 2015-16 LAWA project (Fund 40) expected to resume in the Summer/Fall 2015

What’s Next? District Negotiations Submit Adopted Budget and LCAP by July 1, 2015 Await Governor’s Signature on Signed Budget Changes in CALSTRS increases or State contribution? Gap funding changes? Sales Tax extension? State School Facilities Bond?

Questions?