1. LENNOX SCHOOL DISTRICT 2014-15 First Interim Report to Board of Trustees December 9, 2014
Presentation for the Lennox School Board
Juan Navarro, President
Angela Fajardo, Vice President
Sergio Hernandez Jr., Clerk
Shannon Thomas-Allen, Member
Mercedes Ibarra, Member
Kent Taylor, Superintendent
Presented By: Kevin Franklin

2. Interim Certifications
Education Code (EC) Sections 35035(g), 42130, and require the Governing Board of each school district to certify at least twice a year to the district’s ability to meet its financial obligations for the remainder of that fiscal year and for the subsequent two fiscal years
Positive Certification: A District will meet its obligations in the current and two subsequent years.
Qualified Certification: A District may not meet its obligations in the current or two subsequent years.
Negative Certification: A District will not meet its obligations in the current or two subsequent years
Lennox School District is Self-Certifying Positive
The District does not have to self certify for 3rd Interim.

3. Overview – State General Fund Priorities
The major focus of the State Budget is the Local Control Funding Formula (LCFF)
$4.75 billion to further implement LCFF
Reserves and paying of debt are important priorities
$4.7 billion to buy down K-12 deferrals
CALSTRS – plan is to fully fund in 30 years ($74.5 billion)

4. Planning Considerations
DOF revised their Gap Funding estimates
Largest revision in
Revised from 28.08% to 29.56%
Revised from 30.39% to 20.68%
Revised from 19.50% to 25.48%
No statutory guaranteed increase in any year
LACOE recommends exercising extreme caution in obligating any increase in funds from LCFF
Expiration of temporary tax increases EPA (Prop 30)
Sales tax in 2016 and
Upper-income tax payer in 2018

5. Planning Considerations – CALSTRS/CALPERS
CalSTRS
8.25%
8.88%
10.73%
12.58%
CalPERS
11.442%
11.771%
12.60%
15.00%
CalSTRS
$2,107,364
$2,486,050
$3,059,767
$3,640,934
CalPERS
$824,032
$855,419
$1,008,640
$1,218,774

6. Local Control Funding Formula
COLA is now just one factor that feeds into the district-specific increase in funding
= 0.85%
= 2.19%
= 2.14%
Gap Funding is just one more factor
= 29.56%
= 20.68%
= 25.48%

7. First Interim 2013-14 The District Self-Certifies Positive
First Interim Report Includes QEIA Implementation For only. QEIA is no longer funded after No Proposed Staff Reductions, No Proposed Layoffs, No Proposed Compensation Changes
Current Bargaining Unit Agreements Included In Projections

8. Summary of General Fund MYP
2014/15
2015/16
2016/17
Revenue
$ 56,069,367
$ 52,972,997
$ 55,703,829
Expenditures
$ 57,175,995
$ 55,752,409
$ 56,063,145
Surplus/ (Deficit)
$ (1,106,628)
$ (2,779,412)
$ (359,316)
Beginning Balance
$ 10,886,949
$ 9,780,321
$ 7,000,909
Ending Balance
$ 6,641,593
Reserve For Economic Uncertainties
$ 1,715,280
$ 1,672,572
$ 1,681,894
Additional Available Reserves
$ 6,537,543
$ 4,830,258
$ 4,950,166
Available Percentage
14.43%
11.66%
11.83%

9. Revenues 2015-16 & 2016-17 Projected Declining Enrollment & ADA
Loss of Approx. 7 ADA
Loss of Approx. 7 ADA
QEIA Revenue no longer included in budget
Common Core State Standards Funding ($1M) No longer included
Use of LCFF Flexibility

10. Assumptions for Expenditures
Projected increase in health benefits
Step and column increases
Increased CalSTRS and CalPERS contributions are included
All items included from LCAP

11. What’s Next?
Submit Approved First Interim to LACOE by December 15, 2014
LCAP Analysis
Continue to meet with LTA Planning Committee and LTA Class-Size Committee
Adjust Current Year and Multi Year Budgets as needed
Await News of Release of Governor’s State Budget, January 10, 2015

12. Questions?