1. Red Bluff Joint Union High School District’s Second Interim Report 2016-17
Based on most current budget data and actual expenditures through January 31, 2017

2. Financial Reporting
Education Code requires the Board to certify whether or not the District will be able to meet its financial obligations
The purpose of the reports is to ensure the Board is informed of budget conditions and alerted to any financial issues
There are 4 reporting periods throughout a fiscal school year
2nd Interim is the third reporting period for

3. Enrollment
CBEDS enrollment number as of October 5, 2016 was 1,630 students district wide – with Average Daily Attendance(ADA) being projected at 1,496 or 91.78%
Enrollment projections for October 2017 are projected to be 1,657 with ADA at 1,520
Enrollment projections for October 2018 are projected to be 1,702 with ADA at 1,561

4. Local Control Funding Formula
LCFF is in the fourth year of an eight year phase in process
Has reached 96% implementation
COLA only years after full implementation
“Gap funding” percentages fluctuate every financial reporting period
Reporting
Periods
Budget
(June 2016)
54.84%
73.96%
41.22%
1stInterim
(Oct 2016)
54.18%
72.99%
40.36%
2ndInterim
(Jan 2017)
55.28%
23.67%
53.85%

5. Governor’s Budget Proposal 2017-18
Slowdown of CA’s fiscal recovery from recession
Passage of Prop 55 maintains education funding, does not increase – replaces Prop 30
At the Federal level – may see more bias towards charter schools and voucher programs
COLA only years after full LCFF implementation
COLA for 2017/18 is projected to be 1.48%

6. Governor’s Budget Projections
GAP funding percentage is projected to decrease from 72.99% to 23.67% - only enough to cover the COLA – which means a reduction of over $377k in projected revenues for
Projected to receive One-Time Discretionary funds at $48 per ADA or $70k – pays down mandate claims still outstanding at $1.9billion state wide
Cash Deferrals Back – Approximately $118k of June’s State apportionment will be deferred (delayed) until July
CalSTRS and CalPERS rates continue to rise due to rate of return on investments at State level

7. LCFF Gap Funding Calculation 2017-18
LCFF (Base, Supp, Conc) $15,844,178
(Target amount to be reached by )
Rate $15,078,054
Difference (GAP) $ ,124
GAP Funding Percentage $ ,194 $ ,342
(was at 72.99%) (now at 23.67%)
Rate $15,078,054 $15,078,054
Gap Funding $ ,194 $ ,342
Equals the LCFF State Funding $15,637,248 $15,259,396

10. CalSTRS Employer Rates
Fiscal Year
Employer Rate
Cost Increase
Over Prior Year
8.88%
$48,488
10.73%
$154,931
12.58%
$172,852
14.43%
$148,754
16.28%
$169,607
18.13%
$173,336
19.10%
$103,646
Total Projected Cost
$971,614

11. CalPERS Employer Rates
Fiscal Year
Current Employer Rate Schedule
Proposed Employer Rate Schedule
Cost Increase Over Prior Year
11.771%
$25,689
11.847%
$20,909
13.888%
$72,960
15.80%
$62,730
17.70%
18.70%
$112,875
19.70%
21.60%
$116,348
21.10%
24.90%
$134,668
n/a
26.40%
27.40%
28.20%
Total Projected Cost
$546,179

12. Combined CalSTRS/CalPERS
Fiscal Year
CalSTRS Actuals/Projected Increases
CalPERS Actuals/Projected Increases
Totals
$48,488
$25,689
$74,177
$154,931
$20,909
$175,840
$172,852
$72,960
$245,812
$148,754
$62,730
$211,484
$169,607
$112,875
$282,482
$173,336
$116,348
$289,684
$103,646
$134,668
$238,314
$971,614
$546,179
$1,517,793

13. Multi-Year Projection
Summarizes Revenues and Expenditures
- Current budget
- Projects next two years of budgets
Requirement per AB 1200 & AB 2756
Gives the District a look at what the future holds if all variables remained status quo

14. Multi-Year Projections (cont’d)
LCFF Revenues have increased in the current year by $56k since First Interim due to the State increasing the GAP funding percentage by 1.1%
LCFF Revenues decrease in due to the projected GAP percentage decrease of 49.32% and then increase in due to projected enrollment increases and GAP percentage increase of 13.49%
Federal revenues increase in the current year slightly due to small carryovers and then decrease in the out years due to reduced Sp Ed funding, reduced Title I funding, and no ASSETS carryover funds

15. Multi-Year Projections (cont’d)
State revenues increased slightly in the current year since First Interim and then decrease drastically in the out years due to the loss of the one-time discretionary funds, CTEIG funding, and College Readiness funding
Local revenues increased since First Interim by $25k due to an increase in Adult Ed funds and additional State Sp Ed funding (but lost it on the Federal revenue side)

16. Multi-Year Projections (cont’d)
Step and Column costs have been added to all salaries
Retirements, non-reelects, and potential program closure have been accounted for
STRS and PERS rate changes have been budgeted
Materials/Supplies and Services/Operating budgets have decreased in the current year to account for planned carryovers into and deferring expenses
Capital Outlay budgets have been reduced in the out years with anticipation of bond funding
Other Outgo has increased in current year due to Café contribution and in the out years for planned contributions to support transportation and deferred maintenance

17. Multi-Year Projection
Beginning Fund Balance
3,195,347
2,491,564
1,702,885
Revenues
19,476,236
18,409,226
19,274,469
Expenses
20,180,019
19,197,905
19,552,811
Net Increase/(Decrease)
(703,783)
(788,679)
(278,342)
Projected Ending Fund Balance
1,424,543
Less – Restricted or Assigned
(276,422)
(i.e. – Prop 39, College Readiness)
Designated for Economic Uncertainties (3%)
(606,601)
(575,937)
(586,584)
Undesignated
1,608,541
1,126,948
837,959

18. Changes in Deficit Spending
Items budgeted to be spent and then not actually spent by end of fiscal year for various reasons
Example – ASSETS (After School Program)
Does not follow fiscal year but allows 18 months to spend the funds
Required to budget funds in expense categories
At end of fiscal year unspent funds are moved from budget amount to available ending
balance and carried over to following year to spend within the following 6 months

19. Multi-Year Projections (cont’d)
The Multi-Year Projection shows the District can issue a “Positive” certification for the Second Interim report
This means the District predicts it will be able to meet its financial obligations for the current and next two fiscal years
MYP includes projected enrollment growth but also deficit spending due to increased costs

20. Revenues vs Cost
Costs continue to rise for Step/Column and CalPERS/CalSTRS contributions
Minimum wage increases
Ongoing revenues rise by only 1.48% COLA for
Ongoing costs for most districts are likely to exceed 4% (State-wide average)
New revenues will not cover new costs
There is no “new targeted money” for GAP closure in
Bottom line, most districts will have difficulty sustaining commitments made in prior years in the face of lower state revenue projections

21. Preparing for the Future
There is no such thing as a good budget without an adequate reserve
Equally important, there is no such thing as a good plan without an adequate backup plan if things don’t go as planned
Preparing for the future includes:
Maintaining an adequate reserve
Building positive relationships
Implementing the LCAP with fidelity
Building community confidence in the district and its programs
And most of all, ensuring that every student is given a full measure of opportunity for success

22. Upcoming Budget Events
P-2 Attendance will be reported as of April 15th
April’s State revenues will a have big impact on whether the Governor’s May Revise looks better or worse
Governor’s May Revise Workshop is on May 18th
Meeting with stakeholders to gather input for preparation of the LCAP and Budget
LCAP and Budget will be presented at two different meetings in May and/or June, one for review and the other for adoption

23. Questions?