1. Bassett USD 2019-20 Proposed Budget June 25, 2019
Linda Bermudez, Executive Director of Business Services
Daniel Menyon,
Fiscal Consultant
Both

2. Presentation Outline Budget Hearing and Adoption Requirements
National & State Budget Highlights
BUSD Trends
Key Assumptions & Budget
Multi-Year Projections
Ongoing Stabilization Plan
Q & A LB

3. Budget Cycle Year-End Closing 2018-19 (July-Aug)
1st Interim Financial Report (Dec)
Data & Info Collection (Jan-Feb)
2nd Interim Report (Mar)
Preliminary Budget (Apr)
May Revise Budget Workshop
Adopt LCAP & Budget (Jun)
Budget Cycle LB

4. Budget Adoption Process
Public hearings on the LCAP and the budget shall be held before the budget adoption
School districts shall adopt a budget by July 1
The governing board shall file the budget with the County Superintendent
By August 15 the County Superintendent shall approve or disapprove the adopted budget
Budget Adoption Process LB

5. National & State Budget Outlook
Global economy is starting to show signs of weakness
California economy ranks 5th in the world
Low unemployment 4.3%
Forecast for Personal Income Tax Revenue is higher in 2019, but lower 2020
CA’s Rainy Day Fund Reserve is projected to be $16.5 billion in and $18.7 billion by year-end LB

6. CA School Funding- Underfunding
California’s per capita personal income ($44,173) is above the national average, but it provides only $34 for each $1,000 of personal income to support schools
By contrast, New York had a comparable per capita personal income ($46,445), but provided $55 for each $1,000 of personal income – 62% higher funding than California
New Mexico, with considerably lower per capita personal income ($36,814) nevertheless provided $48 for each $1,000 of personal income – 41% higher funding than California LB

7. Governor’s Proposed Budget 2019-20
Three items have emerged from the Governor’s Budget for have a positive effect on BUSD’s multi-year budget:
Increased funding due to COLA
State assistance with increasing STRS (State Teacher Retirement System) district contributions
Increased funding for Special Education
Absent from the proposed budget is any mention of one-time funding from the state which was the norm in previous budgets. LB

8. Since FY until FY , the district has lost an enrollment of 2,661 students. This equates to the loss in revenue of approximately $25 million. LB

9. Enrollment, Attendance, & Attendance RatioMA
District receives LCFF revenues on the attendance (ADA) reported every year during the month of April commonly known as P-2

10. STRS & PERS CONTRIBUTION RATES
STRS & PERS Contribution History ONTRIBUTION RATES used for budget
STRS & PERS CONTRIBUTION RATES
STRS
14.43%
16.28%
16.70%
18.10%
17.80%
PERS
15.53%
18.06%
20.73%
23.60%
24.90%
Continue increases to STRS and PERS contributions MA

11. General Fund Budget Assumptions (Based on May Revise)
Description
BUSD P-2 Funded ADA
3,403.36
LCFF Statutory COLA
3.26%
Unduplicated Count (3-year rolling average)
53.90%
LCFF Gap Funding
None planned for the future
One-Time Discretionary Funding $0
LCFF Per ADA
$9,194
Lottery Per ADA
$204 LB

12. Governor’s Proposed Budget 2019-20
Description
Funded ADA
3,403.36
LCFF Statutory COLA
3.26%
Unduplicated Count (3-year rolling average)
53.90%
LCFF Gap Funding
None planned for the future LB

13. General Fund Budget Assumptions (Based on May Revise)
Description
Unrestricted Certificated Step and Column Increase
$734,589
Unrestricted Classified Step Increase
$299,241
Current Employee Health & Welfare Premium Cap
Sgl/2P $16,600
Family $17,400
District Unrestricted STRS Contribution
16.70%
$2,382,075
District Unrestricted PERS Contribution
20.733%
$1,047,814 LB

14. General Fund Balance/ Reserves Multi Year
Estimates
Budget
Projections
Projections
Beg. Balance
$3,832,684
$4,151,765
$6,177,080
$5,568,698
Surplus/(Deficit)
$ 319,081
$2,025,315
$(608,392)
$ (2,816,909)
End. Balance
$2,751,789
Audit Adjustments
Components
Reserves for bus repairs & replacement $0
$ 100,000
$100,000
Reserve for textbook adoption
$1,000,000
Statutory 3%
$1,392,973
$1,368,937
$1,420,794
$1,453,391
Carryover/ Restricted Reserves
$2,567,924
$2,851,431
$2,515,578
$139,905
Assigned Designations
---
Unappropriated/ Deficit Reduction
$190,868
$856,712
$1,532,326
$1,058,494
Total Components
$4,201,197 MA

15. Bassett Unified School District Multi Year Projections ($ Millions)
Estimated Actuals Proposed Budget Projections Projects
Beg Balance – July 1 $ 3.83 $ 4.15 $ 6.18 $ 5.57
Revenues $ $ $ $ 45.63
Less: Expenditures $(46.43) $(45.63) $(47.36) $(48.45)
Spending: Surplus/(Deficit) $ $ $ (0.61) $ (2.82) _________________________________________________________________________________________________________
Ending Balance – Jun 30 $ 4.15 $ $ 5.57 $ 2.75 MA
*In order to restore the reserve balances and give a surplus of $337,000 to the ending fund balance in FY , projected adjustments in reductions through attrition, layoffs, overtime cost, etc. are factored in.

16. 2019-20 Sources of Funds (Revenues)MA

17. 2019-20 Uses of Funds (Expenditures)MA

18. Capital Outlay & Transfers
How do we spend our funding? 77% of the unrestricted budget is allocated to staff salaries and benefit costs.
Capital Outlay & Transfers 4% MA

19. Statutory Requirements
Interim Reports provide opportunity to reflect changes since Budget Adoption and revised projections must certify financial condition:
Positive
Will meet financial obligations in current and 2 subsequent fiscal years
Qualified
May not meet financial obligations in current and two subsequent fiscal years
Negative
Will not meet financial obligations in current and one subsequent fiscal year
Positive Certification
We will have sufficient funds to meet financial obligations and maintain minimum 3% reserves in through LB

20. Key Budget Challenges Unsustainable Deficit Spending
Declining enrollment
Average daily attendance
STRS and PERS increases
Multi-year considerations
Tax revenues are variable LB

21. Ongoing Fiscal Recovery Stabilization Plan
The area(s) of focus are as follows:
Optional Program Expenditure Reductions
Mandated Program Reductions
Ongoing Staffing Analysis
Outsourcing Analysis
Positive Certification, but additional stabilization is required… LB

22. Revenue & Expenditures 2019-2020
NO One-Time Revenue
NO LCFF GAP Funding (Shut-off in )
COLA
STEP & COLUMN INCREASES
STRS/PERS
INCREASES
Gen. Fund
ADA FUNDING LOSS
CONTRIBUTION INCREASES

23. Thank You! Q&A Linda Bermudez Executive Director of Business Services
Daniel Menyon
Fiscal Services Consultant
Both