1. West Sonoma County Union High School District Proposed 2016-17 Budget
Prepared by: Denise Calvert, Interim Business Manager
Presented to the Board: June 15, 2016

2. OVERALL FISCAL CONDITION
The District will meet the minimum reserve requirements in
The District will not meet the minimum reserve requirements in the two subsequent years and without expenditure reductions.
The MYP includes a reduction of 3 FTE for and an additional reduction of 3 FTE for and an additional $450,000 reduction in expenditures for that will carry forward to

3. ADA & LCFF
Projected Gap Funding – Department of Finance (DOF) in MYP
54.84% for , 73.96% for , 41.22% for
Projected COLA – 0% - at 2nd Interim Projected .47%
Projected Supplemental Grant funding
26.2% for
Average Daily Attendance – based on prior year ( ) = – a decline of 39 from 2nd Interim representing a decrease in the projected revenue of ($348,270)

4. Other Revenue Projections
Detailed in MYP (page 159) and Assumptions (pages )
Federal revenues estimated at amounts, onetime grants reduced, MediCal (MAA) unrestricted revenue reduced to zero and budgeted upon receipt
Other State revenues: Lottery ($181 per ADA) adjusted for declining enrollment, One-time revenue for discretionary spending from May Revise not included ($237/ADA)
Local revenue includes $1,108,000 for Measure K parcel tax, donation estimates, payments from Consortium partner districts
SCOE CTE/ROP reimbursements and final 6 months of solar incentives ended in

5. Expenditure Projections
Detailed in MYP (page 159) and Assumptions (pages )
180 student days, 184 teacher work days
Step and Column increased costs
3.0 Certificated FTE reduction in and 3.0 reduction in
Health Benefits increased costs – based on estimates using actual rate changes; 3.5% certificated and 4.5% classified
STRS and PERS rate increases based rates known at May revise
Books and supplies – based on site allocations Textbook purchases are not budgeted, will be budgeted at 45 day revision.
Services and Operating – based on and adjusted for known changes, then increased 1% overall in and for Special Education placement needs, plus Routine Restricted Maintenance fully budgeted at required 3% contribution
Increase of $102,253 for payment to SCOE for staffing
Contributions reflect needs of restricted programs

6. Expenses – Other Outgo & Transfers Out
Other Outgo – Transportation excess costs to JPA
$833,591 – 100% of excess costs. Estimated revenue of $512,282 has been added to LCFF.
Transfers Out – to other funds
Deferred Maintenance Fund (14)
$50,000 annually (no longer an assigned reserve)
$35,000 annually for turf replacement
Cafeteria Fund (13)
$86,067 for ; $70,000 for ; $65,000 for

7. Supplemental expenses
Unrestricted LCFF funding includes supplemental targeted funding for English Learners, free or reduced meal eligible, and foster youth. The estimated targeted funding for is $842,887 (5.05% of LCFF revenue)
Total Supplemental Grant expenses included in budget: $842,887
Detailed lists included in the LCAP and Budget Narrative on page 9 (see Agenda pg. 149)

8. Multi-Year Projection - Agenda page 159
Adopted Budget
Budget Year Projected Budget
Using DOF Gap 73.96%
Using DOF Gap 41.22%
Object Codes
Total
COLA (enter percentage)
0.00%
1.11%
2.42%
GAP Funding Rate (enter percentage)
54.84%
73.96%
41.22%
ADA for LCFF purposes (current or prior year)
1,919.53
1,883.80
1,813.30 6
Total Revenue
23,708,965
23,985,706
23,643,111 7 8
Expenditures 20
Total Expenditures
24,358,664
24,213,098
24,477,972 21 22
Excess (Deficiency)
(649,699)
(227,392)
(834,861) 23 29
Total Transfers/Other Uses
(106,067)
(85,000) 30 31
Net Increase (Decrease)
(755,766)
(312,392)
(919,861) 32
Fund Balance 33
Beginning Balance
3,144,914
2,389,148
2,076,757 34
Audit Adjustment(s) - 35
Net Ending Balance
1,156,896 36
Components of Ending Balance: 37
Reserves for Economic Uncertainties
9789
735,892
730,893
738,839 38
Revolving Cash
9711
6,850 39
Prepaid Expenses
9713 40
Assigned for Math III Textbook Purchases
9780
120,000 41
Assigned for Science Textbook Purchase
360,000 42
Assigned for unspent carryover - school site
150,000 43
Assigned for difference in midGap to DOF Gap
204,283
149,488 44
Assigned for deferred maintenance 45
Assigned for tech. hardware replacement
90,000 46
Restricted Ending Balance
9740
904,741
785,875
498,991 47
Unappropriated Ending Balance
9790
21,665
228,855
(357,272) 48

9. Deficit Spending (line 31 of MYP on page 159)
: $ 217,858 positive projected, due to one-time funds not budgeted. This is estimated to be at least $300,000 higher due to site allocations unspent.
: $ ,766 deficit projected
: $ ,392 deficit projected
: $ ,861 deficit projected
Ending fund balance for and remains positive – above the 3% minimum reserve is not positive.
A plan will need to be developed to address this structural problem in the two subsequent years and will need to be included with the First Interim Report.

10. Reserve Levels - Narrative pg. 8
Fund balances in excess of the 3% minimum reserve must have reasons identified
Combined Assigned and Unassigned/Unappropriated Fund Balance: $1,484,407
3% minimum reserve = $735,892
Remaining Balance to Substantiate Need =$ 748,516
Assigned for Math III Textbook Purchase Summer $ 120,000
Assigned for Common Core Science Textbook Purchase Spring $360,000
Assigned for Technology Hardware Replacement or New Purchase $90,000
Unassigned/Unappropriated –intended to cover deficit spending in ,516
Total Substantiated Need $1,484,408

11. Impact of LCFF Accountability
Each district must adopt a Local Control and Accountability Plan (LCAP) for (including a 3 year plan) and beyond
The local school agency goals for the LCAP need to be based on eight state mandated priority areas
All goals in the LCAP have been aligned with the Proposed Budget as presented
Goal and expenditures tied to the Supplemental funding calculation and the minimum proportionality percentage have been accounted for in the Proposed Budget as presented

12. Next Steps
Adjust Budget with any changes necessary from Board and public input from tonight’s LCAP and Budget presentations
Present the final Budget for approval on June 29, 2016
Prepare the 45 Day Revise to Budget and present to the Board on August 24th
Work on plan to address Deficit Spending
Close books for and finalize beginning balance
Present Unaudited Actuals to Board on September 14th

13. Questions?