1. Governor’s January 2017 Proposal for 2017-18 Impact on District Budget

2. STRS and PERS Increases
General Fund Impact (millions)
13-14
14-15
15-16
16-17
17-18
18-19
19-20
20-21
STRS %
8.25%
8.88%
10.73%
12.58%
14.43%
16.28%
18.13%
19.20%
PERS % (est.)
11.442%
11.771%
11.85%
13.89%
15.5%
17.1%
17.7%
18.6%
19.7%
20.4%
21.10%
Annual Increase -
$0.5
$1.3
$1.8
$1.7
$1.9
$1.2
Cumulative Increase
$3.6
$5.3
$7.0
$7.2
$8.7
$9.0
$10.0
$10.2
Compounded Increase
$2.3
$5.9
$11.2
$18.2
$18.4
$26.9
$27.5
$36.9
$37.7
In January, the Governor acknowledged the $80.4 billion shortfall within CalSTRS, but did not provide a proposal to address the shortfall
CalSTRS is projected to run out of money in 2046

3. Average Daily Attendance
Declining enrollment trend (based on October enrollment) is projected to continue
Budgeted ADA was 14,000 (flat enrollment)
Projected ADA based on current enrollment is 13,685

4. 2017-18 Governor’s Budget Proposal
Statewide decrease of $953 million from the DOF forecast
1.48% COLA only funded – LCFF remains at 96% of Target
District Impact
Revised Projection for is now $149.1 million ($3.2 less than previously projected for )
$0.5 million less than – the 1.48% COLA isn’t sufficient to offset the impact of the decline in enrollment

5. 2016-17 MYP adjusted for the Governor’s 2017-18 Budget Proposal
Revenues:
134,106,250
129,411,479
132,708,282
Expenditures
133,530,703
133,534,522
135,343,630
Increase/(Deficit)
575,547
(4,123,043)
(2,635,348)
Beginning Fund Balance
15,864,354
16,439,901
12,316,858
Ending Fund Balance
9,681,510
% Reserves
9.23%
5.95%
2.19%
Revenues:
134,106,250
132,594,969
132,369,362
Expenditures
133,530,703
133,534,522
135,343,630
Increase/(Deficit)
575,547
(939,553)
(2,974,268)
Beginning Fund Balance
15,864,354
16,439,901
15,500,349
Ending Fund Balance
15,500,348
12,526,081
% Reserves
9.23%
5.91%
3.07%
One month’s salaries and benefits are about $11.65 million

6. QUESTIONS?