1. Alum Rock Union Elementary School District
First Interim Budget
December 13, 2018
Presented by: Kolvira Chheng, Asst. Supt., Business Services

2. Agenda Budget Cycle Purpose/Reason for First Interim Reporting
Changes from Adopted Budget to First Interim
Multi- Year Projections
Next Steps

3. Budget Cycle Adopted Budget (June 2018) First Interim (December 2018)
Second Interim (March 2019)
Unaudited Actuals (September 2019)
Audited Financials (December 2019)

4. Purpose/Reason for 1st Interim
School Boards are required to certify projected year end and subsequent years’ financial condition twice a year:
Using “Interim Reports” (Ed Code and 35035)
Typically During December and March of each year
The First Interim includes a snapshot of the District’s financial positions as of October 31, 2018
This First Interim includes the multiple year projections for current and two subsequent years

5. Purpose/Reason for 1st Interim
Assumptions changes constantly. Administration utilizes the most current information available and continually monitors significant assumption changes, including but not limited to:
Enrollment and ADA (Average Daily Attendance)
Funding per ADA and COLA
Staffing changes
State Budget
Federal, State and Local funding amounts (LCFF, Lottery, Parcel Tax, Property Tax, Title I)
Labor negotiations
Cash flow
New laws impacting financials

6. Enrollment History

7. Changes in Enrollment from Adopted Budget to First Interim

8. Changes in Revenues and Expenditures in Unrestricted General Fund
LFCC
Budget
1st Interim
Difference
COLA
3.00%
3.70%
0.70%
2.57%
0.00%
2.67%
-0.33%
LCFF Entitlement-ARUSD
101,274,699
101,338,038
63,339
100,900,169
99,818,676
(1,081,493)
101,000,525
99,496,194
(1,504,331)
LCFF Entitlement-Aptitud
4,521,018
4,310,213
(210,805)
4,639,102
4,405,348
(233,754)
4,759,938
4,504,829
(255,109)
Total LCFF Entitlement
105,795,717
105,648,251
(147,466)
105,539,271
104,224,024
(1,315,247)
105,760,463
104,001,023
(1,759,440)
One Time Funding
One Time Funding Amount
3,196,933
1,699,380
(1,497,553) -
One Time Funding Rate per ADA
344
184
(160)
Summary of Revenues
Changes to Revenues on the Aggregate
(1,645,019)
(2,960,266)
(4,719,706)
Summary of Expenditures
Savings Not Materialized*
5,624,366
4,218,275
1,406,092
Note: *At Budget Adoption, the district assumed on not filling 44 certificated vacancies in 18/19; however, the district was able to not fill 33 of the vacancies.

9. Changes in Unrestricted General Fund

10. Key Assumptions – MYP -Unrestricted General Fund
Revenues
Prior year P-2 ADA due to declining enrollment for LCFF calculation
COLA based on DOF’s recommendation
Remove one-time funds
Expenditures
Increase Step and Column for all three years
Increase STRS and PERS rates for all three years
Increase contribution for Special Education Program for all three years
Maintain same level of contribution to Routine Restricted Maintenance Account (RRMA) for all three years
Comply with LCAP’s Minimum Proportionality Percentage (MPP) requirements
Savings in for 40 certificated positions at an average salary of $85K through attrition to align with declining enrollment
Savings in for 40 certificated positions at an average salary of $85K through attrition to align with declining enrollment
Saving of $454K in classified salaries and benefits in through attrition to align with declining enrollment and district’s needs
Saving of $3.8M starting in in contract services to align with declining enrollment and district’s needs
Savings of $5.7M in to be determined pending on outcome of SERP and Governor’s January budget proposal
Savings of $6.6M in to be determined pending on outcome of SERP and Governor’s January budget proposal

11. Multi-Year Projection Unrestricted General Fund

12. Per ADA Revenues vs. Expenditures, by SSC, Inc.

13. Changes in CalPERS Rate

14. Changes in CalSTRS Rate

15. Special Education Contribution

16. Unrestricted General Fund Historical Trend
Addt’l revenue is mainly from the increase in STRS On-Behalf and reimbursement for Mathson fire.
Expenditures: unspent funds from Educator Effectiveness, Med-Cal, Lottery, RMA, Mental Health and Grant and Donation.

17. Next Steps January Governor’s Budget Proposal
Budget Development Process Begins – January 2019
Second Interim – March 2019
Collaborative Efforts with Academic Services to Develop LCAP
May Revise
Public Hearing for Budget and LCAP – June 2019
Adoption of Budget and LCAP – June 2019

18. Thank you and Questions