PALM SPRINGS UNIFIED SCHOOL DISTRICT BOARD MEETING JUNE 9, ADOPTION BUDGET

OE COMPLIANCE SUMMARY OE-5 Financial Planning Budget prepared and presented: 1. In summary format for each District fund 2. Clear description of revenues and expenditures 3. Includes current year estimates, budget year and multiyear projections 4. Provides assumption data 5. Budget developed to assure fiscal soundness in future years 6. Reflects salary adjustments 7. Contains conservative assumptions 8. Includes fund balance of no less than 3% of the General Fund 2

STATE BUDGET NEWS- MAY REVISE The May Revision shows Proposition 98 funding increasing $6.1 billion over a three-year period $241 million in $3.1 billion in $2.7 billion in

In total, the Governor proposes to provide $6.1 billion to further implement LCFF, an increase of $2.1 billion since January Funded COLA of 1.02% (down from the 1.58% estimate in January) A new proposed gap closure percentage of 53.08% (up from the 32.19% estimate in January) 4 STATE BUDGET NEWS- MAY REVISE

LCFF REVENUES PROGRESS TOWARD FULL IMPLEMENTATION

The “gap” 100% IS EQUAL TO THE FUNDING LEVEL

LCFF REVENUES PROGRESS TOWARD FULL IMPLEMENTATION 100% IS EQUAL TO THE FUNDING LEVEL

LCFF REVENUES PROGRESS TOWARD FULL IMPLEMENTATION 100% IS EQUAL TO THE FUNDING LEVEL

One-Time Discretionary Funds $3.5 billion, or $601 per ADA 9 STATE BUDGET NEWS- MAY REVISE

Special Education Funding $60 million additional funds, $30 million of which is ongoing to augment the Early Education Program for Infants and Toddlers with Exceptional Needs $12.1 million in one time funds for 2,500 additional part-time preschool slots with priority given to students with disabilities $6 million to increase overall preschool rates by 1% $10 million in one-time funds to assist districts in implementing data-driven systems of support and intervention 10 STATE BUDGET NEWS- MAY REVISE

Career Technical Education (CTE) An additional $150 million over the $250 million over three years for a new transitional CTE Incentive Grant Program $50 million additional in A reduction of $50 million in School Facilities No new funding over the $273.4 million in Proposition 98 one-time funds for the Emergency Repair Program A reduction of Proposition 39 appropriation for energy efficiency projects by $6.7 million (to $313.4 million) Technology $100 million in one-time funding to increase internet connectivity and infrastructure projects 11 STATE BUDGET NEWS- MAY REVISE

Federal Programs No major changes Home-to-School Transportation No new proposals STRS and PERS Employer costs still predicted to double over next several years. The May Revision did not address these costs 12 STATE BUDGET NEWS- MAY REVISE

PSUSD Adopted Budget is based on assumptions in the May Revise Adjustments may be required per AB 1200 within 45 days after the State Budget is signed by the Governor 13 STATE BUDGET NEWS- MAY REVISE

ADOPTED BUDGET REVENUE ASSUMPTIONS Adopted Projected Projected Projected LCFF ADA 21,251 ADA Growth/Decline from prior year 11-- PSUSD LCFF $9,432$9,938$10,441 LCFF COLA 1.02%1.60%2.48% Other State Revenues 1.02%1.60%2.48% Lottery Revenues- unrestricted $128 Lottery Revenues- restricted Prop 20 $34 14

ADOPTED BUDGET EXPENDITURE ASSUMPTIONS Adopted Projected Projected Additional Certificated Staff Additional Classified Staff Step and Column CostsIncluded2,732,9062,804,240 STRS/PERS ContributionsIncluded1,906,7052,066,481 Benefits AdjustmentsIncluded243,538156,677 Utility IncreasesIncluded425,583566,528 Election Costs-$90,

MULTIYEAR PROJECTION – UNRESTRICTED Description Total Revenues $219,583,422 $219,175,508$228,691,849 Total Expenditures 194,278, ,179, ,300,915 INCREASE (DECREASE) 25,305,255 19,996,389 24,390,934 Other Sources/Transfers In 3,754,773 Other Uses/Transfers Out 4,826,026 1,014,706 Contributions (20,709,250) (20,979,232)(21,912,609) Net INCREASE (DECREASE) 3,524,752 1,757,224 5,218,392 Beginning Balance, July 1 (estimated) 11,964,201 15,488,962 17,246,186 Ending Balance, June 30 15,488,962 17,246,186 22,464,578 Revolving Cash/Stores 270,000 Unassigned- Economic Uncertainties (3%) 7,625,850 7,664,357 7,842,878 LCFF Supplemental and Concentration MPP 3,038,510 6,323,369 10,593,661 Assigned 1,679, ,579 Textbook Adoptions 2,875,5962,988,460 16

MULTIYEAR PROJECTION – UNRESTRICTED Description Total Revenues $219,583,422 $219,175,508$228,691,849 Total Expenditures 194,278, ,179, ,300,915 INCREASE (DECREASE) 25,305,255 19,996,389 24,390,934 Other Sources/Transfers In 3,754,773 Other Uses/Transfers Out 4,826,026 1,014,706 Contributions (20,709,250) (20,979,232)(21,912,609) Net INCREASE (DECREASE) 3,524,752 1,757,224 5,218,392 Beginning Balance, July 1 (estimated) 11,964,201 15,488,962 17,246,186 Ending Balance, June 30 15,488,962 17,246,186 22,464,578 Revolving Cash/Stores 270,000 Unassigned- Economic Uncertainties (3%) 7,625,850 7,664,357 7,842,878 LCFF Supplemental and Concentration MPP 3,038,510 6,323,369 10,593,661 Assigned 1,679, ,579 Textbook Adoptions 2,875,5962,988, $9,309,800 ($1,493,055) $9,553,837

MULTIYEAR PROJECTION – RESTRICTED Description Total Revenues $31,626,931 $31,790,856 $31,912,595 Total Expenditures 55,090,80955,284,736 56,113,657 INCREASE (DECREASE) (23,463,878) (23,493,880) (24,201,062) Other Sources/Transfers In 2,462,241 2,476,621 2,510,566 Other Uses/Transfers Out --- Contributions 20,709,250 20,979,232 21,912,609 Net INCREASE (DECREASE) (292,387) (38,027) 222,113 Beginning Balance, July 1 (estimated) 774, , ,226 Ending Balance, June , , ,339 18

MULTIYEAR PROJECTION – RESTRICTED Description Total Revenues $31,626,931 $31,790,856 $31,912,595 Total Expenditures 55,090,80955,284,736 56,113,657 INCREASE (DECREASE) (23,463,878) (23,493,880) (24,201,062) Other Sources/Transfers In 2,462,241 2,476,621 2,510,566 Other Uses/Transfers Out --- Contributions 20,709,250 20,979,232 21,912,609 Net INCREASE (DECREASE) (292,387) (38,027) 222,113 Beginning Balance, July 1 (estimated) 774, , ,226 Ending Balance, June , , , ($3,196,716) ($20,194,583) $604,471

MULTIYEAR PROJECTION – COMBINED Description Total Revenues $251,210,353 $250,966,363 $260,604,444 Total Expenditures 249,368, ,463, ,414,572 INCREASE (DECREASE) 1,841,377 (3,497,492) 189,872 Other Sources/Transfers In 6,217,014 6,231,394 6,265,339 Other Uses/Transfers Out 4,826,026 1,014,706 Contributions --- Net INCREASE (DECREASE) 3,232,365 1,719,196 5,440,505 Beginning Balance, July 1 (estimated) 12,738,851 15,671,216 17,690,412 Ending Balance, June 30 15,971,215 17,690,412 23,130,917 20

MULTIYEAR PROJECTION – COMBINED Description Total Revenues $251,210,353 $250,966,363 $260,604,444 Total Expenditures 249,368, ,463, ,414,572 INCREASE (DECREASE) 1,841,377 (3,497,492) 189,872 Other Sources/Transfers In 6,217,014 6,231,394 6,265,339 Other Uses/Transfers Out 4,826,026 1,014,706 Contributions --- Net INCREASE (DECREASE) 3,232,365 1,719,196 5,440,505 Beginning Balance, July 1 (estimated) 12,738,851 15,671,216 17,690,412 Ending Balance, June 30 15,971,215 17,690,412 23,130, ,811, ,695,948 ($10,884,883) ($4,689,871) $10,158,309

UNRESTRICTED ENDING FUND BALANCES 22 Thousands Estimated

UNRESTRICTED SALARIES AND BENEFITS AS A PERCENT OF THE UNRESTRICTED BUDGET YearCertificatedClassifiedBenefitsTotal Expenditures % (Est.) $90,645,867$24,924,396$42,259,762$194,278, % (Est.) $83,603,559$22,768,302$37,931,034$173,505, % $73,586,568$19,262,330$33,573,808$145,708, % $66,985,938$16,805,035$31,759,760$125,647, % $65,250,758$16,460,806$30,073,383$123,547, % 23 YearADA , , , , ,515 Unrestricted salaries and benefits make up approximately 81% of PSUSD’s unrestricted general fund budget. Cielo Vista Charter School is reported separately beginning fiscal year

ESTIMATED UNRESTRICTED EXPENDITURES 24

ESTIMATED UNRESTRICTED EXPENDITURES SALARIES AND BENEFITS % 11.17% 7.52% 22.81% 14.07% 85.93%

OTHER FUNDS Description Budgeted Revenues Budgeted Expenditures Increase (Decrease) Beginning Balance Ending Balance Charter School Fund 09 6,403,652 7,351,063 (947,411) 2,057,483 1,110,072 Child Development Fund 12 2,250,971 2,250, ,651 26,701 Cafeteria Special Revenue Fund 13 12,859,800 14,935,074 (2,075,274) 5,662,307 3,587,033 Special Reserve Fund 17 3,842, ,878,666 8,721,359 Building Fund 21 90,000 35,363,482 (35,273,482) 62,990,090 27,716,608 Capital Facilities Fund 25 2,565,000 7,920,279 (5,355,279) 20,474,223 15,118,944 Special Reserve Fund 40 8,586,436 19,303,258 (10,716,822) 37,972,185 27,255,363 26

SELF INSURANCE FUNDS Description Budgeted Revenues Budgeted Expenditures Increase (Decrease) Beginning Balance Ending Balance Workers Compensation Fund 67 5,639,428 2,882,595 2,756,833 2,352,715 5,109,548 Other Post Employment Benefits (OPEB) Fund 68 2,117,382 1,572, ,712 7,587,580 8,132,292 Property and Liability Fund ,928 1,045,030 (61,102) 61,102 - Total 8,740,738 5,500,295 3,240,443 10,001,397 13,241,840 27

Starting with the adopted budgets, school districts are required to provide the following information at the public hearing for the next fiscal year’s budget adoption: 1.The minimum reserve level required in each year 2.The amount of assigned and unassigned ending fund balance that exceeds the minimum in each year 3.Reasons for the reserve being greater than the minimum 28 SB858- ASSIGNED AND UNASSIGNED ENDING FUND BALANCES

29 SB858- ASSIGNED AND UNASSIGNED ENDING FUND BALANCES Minimum reserve level in each year $7,625,850$7,664,357$7,842, The amount of assigned and unassigned ending fund balance that exceeds the minimum in each year $16,314,471$18,064,561$23,135, Reasons for the reserve being greater than the minimum Assigned for LCAP (supplemental student services)- $3,038,510 $6,323,369 $10,593,661 Assigned for Textbook Adoptions- $2,875,596 $2,988,460 Designated for increments in CalPERS, CalSTRS, legal services, and equipment replacement- $1,679,006 - $769,579 Designated for opening new schools (Fund 17)- $8,721,359$8,752,732$8,784,105

30 SUMMARY Financial Position is sufficient to meet obligations in and following two fiscal years, justifying a Positive Certification (June 23, 2015) Structural Deficit eliminated Supplemental and Concentration Grant funding is providing additional funding for the District’s students in need