1. RIM OF THE WORLD UNIFIED SCHOOL DISTRICT
REPORT OF ENROLLMENT AND SECOND INTERIM FINANCIAL POSITION

2. Purpose of Report - Review data related to:
Enrollment
Attendance
Financial activity
July 1, 2018 – January 31, 2019
Various financial assumptions
Multi–Year Projections
Revised Budget Update
Must be approved by the Governing Board by March 15, certifying the Financial position to the County Office of Education per Education Code: , 42131(a)1

3. There are three types of Certification:
POSITIVE:
A District will meet its financial obligations for the current fiscal year and subsequent two fiscal years
QUALIFIED:
A District may not meet its financial obligations for the current fiscal year and subsequent two fiscal years
NEGATIVE:
A District will be unable to meet its financial obligations for remainder of the current fiscal year or and subsequent fiscal year
Rim of the World Unified School District is submitting a Positive Certification.

4. Acronyms LCFF – Local Control Funding Formula
ADA – Average Daily Attendance
UPP – Unduplicated Pupil Percentage
MYP – Multi-year projections
CBEDS – California Basic Educational Data System

5. DISTRICT Goal VI: Budget, Infrastructure, and Resources: The District prioritizes and allocates resources effectively to support all goals while maintaining fiscal responsibility and building sustainability.

10. Local Control Funding Formula (LCFF)
Governor Brown proposed an 8 year funding model
Full implementation was planned by Full implementation is now effective in the fiscal year. The goal was to bring districts to funding levels
This does not fund increases in operating costs out of the control of school districts i.e.: STRS and PERS increases
LCFF is an allocation method to distribute funds to school districts.
The allocation of total LCFF dollars are comprised of:
A school Districts ADA
The percent of students identified as UPP (Low Income, Foster Youth, Homeless and English learner)
Grade Span adjustment funds for students in TK-3 and 9-12

15. Summary of LCFF Revenue:

16. Add-ons (Transportation/TIG)
Every Day Counts! Missed School days not only impacts learning, but it decreases the funds to service students. Below is the daily rate for missed school. Depending on the grade level, one day missed can equal $54.66 per student.
Per Funded ADA:
Per Day Funding
Base Grant
25,026,417.00
8,017.77
44.54
Grade Span Adjustment
938,369.00
300.63
1.67
Supplemental Grant
2,970,890.00
951.79
5.29
Concentration Grant
286,910.00
91.92
0.51
Add-ons (Transportation/TIG)
1,490,634.00
477.56
2.65
30,713,220.00
9,839.66
54.66

17. UPP% Increases held in reserves – pending final audit
Our Enrollment and UPP are certified each year. Supplemental and Concentration grant funds are dependent on the UPP. This year, the district had a significant jump in our UPP. However, the district is still working on certifying that number with our auditors. Our Second Interim is currently based on a 62% UPP. The resulting increase to revenue is being held in reserves each year until the audit is completed (May 2019).
18/19 - $407,032
19/20 - $591,896
20/21 - $621,868

19. Cal STRS & Cal PERS rates continue to rise

21. Multi-year Projections

22. Multi-year Projections

23. Multi-year Projections

24. Multi-year Ending Fund Balance – assumes current spending and revenue

27. Significant Changes Since First Interim
There are no changes in factors for the fiscal year. However, the proposed State Budget will affect multiyear projection factors. Projected COLAs for and have increased to 3.46% and 2.86%, respectively.
A total of $3 billion in one-time non-Proposition 98 funding is proposed to address increasing CalSTRS costs. A $700 million one-time allocation to reduce the CalSTRS liability for school employers is proposed to lower the current statutory increase of the employers’ rate in and by approximately 1%. An additional $2.3 billion investment may lower future rates by an estimated 0.5%.
The Governor’s proposal includes special education concentration grants, providing additional resources for interventions and support of LEAs with both high concentrations of Students with Disabilities and unduplicated pupils.
District specific changes: Increase to LCFF Revenue due to Concentration Grant; Increase to budgeted Salaries and Benefits; Increase to Special Ed Contribution.

28. Economic Risks Rising Health care costs
Slow Housing and construction with higher home prices
Trade Issues
Nature of California’s tax structure – volatile
Wild Fires and Recent storms
California ranks 41st in per-pupil spending while being the 5th largest economy in the world
Declining enrollment
Low attendance rates

29. Continue to monitor enrollment and attendance; continue with attendance incentives
Governors May revise budget proposal for ; Unknown changes due to new leadership; budget will be based on May revise state budget assumptions
Multi-year assumptions will be revised as our situation changes
The District will continue to collaborate with employees regarding funding scenarios for the current and future years
Next steps: