1. LENNOX SCHOOL DISTRICT 2015-16 Proposed Budget Report to Board of Trustees June 8, 2015
Presentation for the Lennox School Board
Sergio Hernandez Jr., President
Shannon Thomas-Allen, Vice President
Mercedes Ibarra., Clerk
Juan Navarro, Member
Angela Fajardo, Member
Kent Taylor, Superintendent
Presented By: Kevin Franklin

2. BUDGET ADOPTION
Education Code (EC) Sections 42127(a) and (a)(2) require the Governing Board of each school district to adopt a budget on or before July 1 and file that budget with the county superintendent of schools.
The Budget can not be approved without an approved LCAP.
The District does not have to self certify for 3rd Interim.

3. Life Cycle of a Budget Adoption (Budget and LCAP) – June 30th
45 day Revise – Due 45 days after State budget adopted if significant changes from adoption
1st Interim – As of Oct 31st, due by Dec 15th
2nd Interim – As of Jan 31st, due by Mar 15th
3rd Interim – As of Apr 30th, due by June 30th (qualified or negative certifications)
Unaudited Actuals – As of June 30th, due by Sept 15th

4. 2015-16 Proposed Budget Goals
Maintain fiscal solvency for proposed year and two subsequent years (Certify Positive if had been required for Budget)
Continue to restore programs and add supplemental support as determined by the LCAP
A balanced budget with expenditures not exceeding revenues (Continue working to eliminate the structural deficit)
District Reserves at 3% for Economic Uncertainties and additional reserves as determined by policy and LCFF gap funding

5. 2015-16 Proposed Budget Assumptions
Reviewed and produced estimated actuals to create beginning balance
Implemented current LCFF revenue figures (May Revise)
Adjusted for Additional and Temporary Positions proposed for and loss of QEIA funds
Adjusted for updated LCAP for
K-3 Class sizes are already at the LCFF target of 24:1

6. 2015-16 Proposed Budget Assumptions
Followed LACOE recommendations for COLA (1.02%) and for LCFF gap funding (53.08%).
Enrollment/ADA projected flat for budget year and MYP’s.
Cost of step/column/range changes included in current year and MYP’s.
Increase in CALSTRS and CALPERS contributions per Governor’s May Revise for budget year and MYP’s.
Loss of QEIA funding (Approx. $3M). Replaced with $2.9M LCFF Supplemental and Concentration funding per the LCAP.

7. 2016-17 and 2017-18 Proposed Budget Assumptions
Followed LACOE recommendations for COLA (1.60%) and for LCFF gap funding (37.40%)
Includes proposed LCAP expenditures
Followed LACOE recommendations for COLA (2.48%) and for LCFF gap funding (36.70%)

8. Past and Projected Enrollment

9. Change in Enrollment

10. Summary of General Fund MYP
2015/16
2016/17
2017/18
Revenue
$ 64,394,270
$ 62,332,963
$ 64,503,779
Expenditures
$ 62,887,163
$ 64,147,948
$ 65,777,997
Surplus/ (Deficit)
$ 1,507,107
$ (1,814,985)
$ (1,274,218)
Beginning Balance
$ 9,543,434
$ 11,050,541
$ 9,235,556
Ending Balance
$ 7,961,337
Reserve for Economic Uncertainties
$ 1,886,614
$ 1,924,438
$ 1,973,339
Additional Available Reserves
$ 9,163,927
$ 7,311,118
$ 5,987,998
Available Percentage
15.72%
12.70%
10.49%

11. Other Items of Note
This Budget adoption report does not call for a school district positive, qualified, or negative status report
Current Bargaining Unit Agreements included in projections. District is currently in negotiations with LTA and CSEA
The Jefferson ORG project (Fund 35) is projected to be fully closed out with
LAWA project (Fund 40) expected to resume in the Summer/Fall 2015

12. What’s Next? District Negotiations
Submit Adopted Budget and LCAP by July 1, 2015
Await Governor’s Signature on Signed Budget
Changes in CALSTRS increases or State contribution?
Gap funding changes?
Sales Tax extension?
State School Facilities Bond?

13. Questions?