1. 2018-19 Second Interim Budget
Alum Rock Union Elementary School District
Second Interim Budget
March 14, 2019
Presented by: Kolvira Chheng, Asst. Supt., Business Services

2. Agenda Budget Cycle Purpose/Reason for Interim Reporting
Changes from First to Second 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)
Third Interim (June 2019)

4. Purpose/Reason for Interim Reporting
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 Second Interim includes a snapshot of the District’s financial positions as of January 31, 2019
This Second Interim includes the multiple year projections for current and two subsequent years

5. Purpose/Reason for Interim Reporting
Assumptions changes constantly. Administration utilizes the most current information available and continually monitors significant assumption changes, including but not limited to:
Enrollment and Average Daily Attendance (ADA)
Cost of Living Adjustment (COLA)
Staffing changes
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. Enrollment Projection

8. Changes in LCFF and One-Time Funding per Governor’s 2019-20 Budget Proposal

9. Changes in Unrestricted General Fund

10. Key Assumptions – MYP - Unrestricted General Fund
Revenues
Full implementation of LCFF starting in
Prior year P-2 ADA for District’s LCFF due to declining enrollment
Current year ADA for Aptitud’s 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
Comply with 3% contribution requirement to Routine Restricted Maintenance Account (RRMA) for all three years
Comply with LCAP’s Minimum Proportionality Percentage (MPP) requirement
Implementation of the Supplemental Early Retirement Plan (SERP)
Savings of approx. $5.6M in certificated salaries for
Board approved in February 2019
Savings of approx. $1.5M in classified salaries for
Will be presented for Board’s consideration in April 2019
Savings of approx. $1.9M in employee benefits for
Savings of approx. $1.6M in material and supplies for to align with declining enrollment and district’s needs
Savings of approx. $1.8M in contract services for to align with declining enrollment and district’s needs
Savings of approx. $3.5M in certifcated salaries for 40 FTEs in to align with declining enrollment

11. Multi-Year Projection Unrestricted General Fund

12. Next Steps May Revise Third Interim – June 2019
Public Hearing for Budget and LCAP – June 2019
Adoption of Budget and LCAP – June 2019

13. Thank you and Questions