1. Golden Valley Unified School District
2014/2015 First interim Report
Golden Valley Unified School District

2. Changes Since Budget Update

3. LCFF Revenue Changes Declining enrollment in the current year.
Previously projected a 10 ADA increase per year
Currently projected flat ADA –
Total decrease of $415,814 over 3 years
LCFF at Budget Update
2014/2015
$14,812,182
2015/2016
$15,432,029
2016/2017
$16,138,415
LCFF at First Interim
2014/2015
$14,746,816
2015/2016
$15,296,018
2016/2017
$15,923,978

4. Other Revenues Mandated Claims Revenue: $196,872 (-$1,134.69)
Carl Perkins: $2,021 increase
Title III Migrant Education: $492.00
Ag Incentive Grant: -$1,807 reduction
ROP Revenue funded at 75% by FCOE: $54,080 vs. $68,668 (-$14,587)
EDEP Revenue increase: $10,755
Tablet insurance revenues: $2,390.65

5. Salary and Benefit Expenses
Salaries:
Certificated teacher sub and additional time changes for professional development: $2,137.93
Counseling staff changes: -$5,424
EDEP Paraprofessional time adjustments for attrition: -$196
Increased hours for Webster Health Clerk: $3,066.12
District office business staffing changes: -$11,648
Benefits:
Net benefit changes associated with salary changes: -$10,591

6. Other Expense Changes
Decreased Ag department expenses due to decreased grant funding: -$3,614
Increased Carl Perkins expenses to match revenues: $2,021
Decreased projected fuel cost: -$2,000
Decreased ROP expenditures due to decrease in revenues
Decrease does not match the decrease in revenues because salaries are fixed; required unrestricted contribution: $7,999.61
Decrease in revenues = $14,587, decrease in expenses = -$6,587.39
Decreased debt service contribution due to increased PG&E rebate received late last fiscal year; creating beginning balance in Fund 56: -$23,718.10
Decrease in flexed deferred maintenance: -$18,693.29
Equipment purchased for custodial staff from ongoing and routine maintenance
Increased equipment replacement in general fund: $18,693.29

7. Multi-Year Projection

8. Multi-Year Projection
2014/2015
2015/2016
2016/2017
Beginning Balance
$2,253,214
$1,693,907
$1,012,458
Revenues
$16,397,370
$16,757,234
$17,385,194
Expenses
$16,956,677
$17,438,683
$17,856,036
Surplus (Deficit)
($559,307)
($681,449)
($470,842)
Ending Balance
$541,616
Economic Reserve*
9.40%
5.30%
3.03%
*Reflects available unrestricted resources
See MYP handout for more detail

9. MYP Revenue Assumptions
2015/2016
LCFF revenue assumptions from the BASC/FCMAT LCFF Calculator
Gap funding: 20.68%
COLA (adjustment to 2020/2021 target funding: 2.190%
Elimination of Federal carry-over: -$6,683.34
Elimination of ROP revenues: -$54,080
Elimination of one-time Mandate Claims payment: -$126,866
Elimination of Ag Incentive Grant carry-over: -$1,710
2016/2017
Gap funding: 25.48%
COLA (adjustment to 2020/2021 target funding: 2.140%

10. 2015/2016 MYP Assumptions Salary and Benefits 2.00% Step/Column
Decrease by 1 certificated FTE due to student enrollment: $64,825.42
5 additional student days (180): $285,737
Return of teacher on leave/eliminate temporary teaching staff: -$12,724
Reduction of additional time for music staff: -$3,244.74
CalSTRS Increase: $152,826
CalPERS Increase: $26,988
DO staff changes: $25,250

11. 2015/2016 MYP Assumptions Other expenses
Reduction of start-up elementary music budget: -$35,000
Elimination of one-time legal settlement: -$75,000
Elimination of early retirement incentive payment: -$93,168.32
Reduction in EdCaliber start-up cost: -$3,000
Elimination of financial services: -$31,758.06
Reduction of election costs: -$14,000
Reduction of parent contribution for tablet insurance: $2,390.65

12. 2016/2017 MYP Assumptions Salaries and Benefits Other Expenses
Certificated Step/Column: 1.70%
Classified Step/Column: 1.60%
Benefit Step/Column: 2.00%
Other Expenses
Increase for Election Costs: $14,000
Reduction of Early Retirement Incentive Payment: -$75,135.62

13. Minimum Reserves
The state fiscal Standards and Criteria established per Education Code (a)(3) establishes criteria for school district minimum reserve that must be maintained in a three year multi-year projection.
Each district must certify that it will meat the minimum reserve requirement at each budget reporting period.
If it does not certify the minimum reserve:
Certify as qualified or negative: county oversight and possible state oversight
Minimum reserve determined by ADA
GVUSD minimum reserve requirement is 3%

14. Proposition 2 – Minimum Reserves
Passed by voters in November 2014
Requires all districts to explain why reserves are higher than the minimum requirement at budget hearing
Proposition 2 requires that all district maintain reserves lower that two times the required minimum reserve ONLY when the state makes a payment into the Proposition 98 reserve account.
GVUSD allowable reserve under Proposition 2 is 6%
The State will only make a payment into the Proposition 98 reserve account when ALL of the requirements are met:
Full repayment of Prop. 98 Maintenance Factor (no money is owed to schools by the state)
Capital gains taxes must be greater than 8% of state general fund revenue (has occurred 7 times in last 16 years)
Prop. 98 must be calculated using Test 1 (has occurred 3 times in the last 26 years)
Prop. 98 must not be suspended (has occurred 2 times in last 26 years)