1. Plumas Lake Elementary School District 2013-14 Second Interim Presentation March 12, 2014

2. Financial Reporting Cycle Annual financial reporting: Budget Adoption – Due July 1, 2013 First Interim – Due December 16, 2013 Second Interim – Due March 17, 2014 Unaudited Actuals – Due September 15, 2014 Budget is developed based on assumptions in June; Assumptions are usually based on the information in the May Revise Assumptions change during the year and we are required to file two interim reports during the year: First Interim – Due December 16, 2013 Second Interim – Due March 17, 2014 Budget Timeline: Governor released his Budget Proposal for 2013-14 in January Governor released the May Revise in May, which is based on updated revenue and expenditure data Legislature met its constitutional deadline and passed the 2013-14 budget and trailer bills on June 15 Local Control Funding Formula -Changes how schools receive State Aid Every district has a unique target base grant that will restore funding to 2007-08 funding levels by full implementation Districts will move toward the target each year Governor signed budget bill in June Budget development is a continuous process

4. Local Control Funding Formula Local Control Funding Formula (LCFF) begins in 2013-14 Department of Finance estimates that achieving full funding levels under the LCFF will take eight years Funding based on the demographic profile of the students in the District Goal is to simplify how state funding is provided Local Control and Accountability Plan (LCAP) is an important component of LCFF District will be required to develop, adopt, and annually update a three year LCAP, beginning in July 1, 2014 California Department of Education (CDE) making system changes to implement the new formula and does not expect to have those completed until July 2014

5. Local Control Funding Formula Local Control Funding Formula (LCFF) has replaced revenue limits and works as follows: “Target Funding “level will be calculated every year Districts will receive a base grant amount based on grade-level Adjustments will be made for class size reduction (grade span) Districts will receive supplemental funding based on percentage of low income, English learners and students in foster youth Economic Recovery Target (ERT) is the difference between what the District would have received under the old funding and the amount the District would receive under the LCFF in 2020-21 (with COLA adjustments) “Funding Floor” will be calculated based on 2012-13 Funding Level Percentage of the “Gap” between the Target and Floor will be funded Categoricals are now a part of the LCFF with the exception of the following: Transportation (add-on and can be used for any educational purpose) Targeted Instructional Improvement Grant (TIIG) (add-on and can be used for any educational purpose) Special Ed Child Nutrition

6. Second Interim Budget Assumptions Budget Development First InterimSecond Interim COLA1.565%1.57% Deficit Factor18.997% GAP Funding Rate11.78% State Categorical Programs COLA 000 Federal COLA000 Average Daily Attendance1056.68 District: 1050.5 County: 6.68 1094.83 District: 1090 County: 4.84 1112.84 District: 1108 County: 4.84 Unduplicated percentage (English Learners, Foster Youth, and Free & Reduced Price Meals) 39.72%

7. Second Interim Budget Assumptions Proposition 39 approved by voters on November 6, 2012 provided: The Schools and Local Public Safety Protection Act of 2012 provides funding through the Education Protection Account (EPA) Not additional funding, State Aid is decreased by this amount District will receive $1,179,455 in funding, which will be used for teachers’ salaries California Clean Energy Jobs Act Funding for clean energy projects – funded for five years District will receive$106,252 in 2013-14 and in subsequent years Common Core State Standards Implementation (CCSSI) Funds – District received $216,437 in one-time funding

8. Budget Revisions Board requested budget revisions: Riverside Meadows – added $10,000 for upgrades Breakfast - $3,000 for free breakfast during testing Infrastructure – Wi-Fi Nodes $5,000 Update District Web site - $5,000

9. 2013-14 Revenue Sources Revenue Source 2013-14 Budget Development 2013-14 Budget First Interim (FI) 2013-14 Budget Second Interim (SI) Changes (SI –FI) Notes Revenue Limit Sources $6,529,5617,441,642$7,629,666$188,024LCFF Changes due to ADA Changes Federal Revenue $277,734$365,256$369,770$4,514Impact Aid Other State Revenue $1,047,997$598,640$602,742$4,102Lottery Other Local Revenue $491,348$444,853$445,468$615Local revenue Interfund Transfers In $23,000 From Fund 52 for CFD Admin costs Total Revenue $8,369,640$8,873,391$9,070,646$197,255

10. 2013-14 Expenditures 2013-14 Budget Adoption 2013-14 Budget First Interim (FI) 2013-14 Budget Second Interim (SI) Changes (SI – FI) Notes Certificated Staff $3,887,597$3,966,261$3,962,758($3,503) Adjusted teachers’ salaries Classified Salaries $1,396,056$1,409,719$1,385,031($24,688) Adjusted para salaries Employee Benefits $1,593,126$1,587,822$1,558,017($29,805) Adjusted statutory benefits and Health, Dental & Vision Books and Supplies $337,067$557,670$462,356($95,314) Added $5K for Wi-Fi nodes, decreased Common Core technology expenditures Services/Op Expenses $1,014,091$1,114,966$1,121,518$6,552 Adjusted inter-fund direct costs (Fund 13) Capital Outlay $0$90,315 Clean energy $ Other Outgo $268,852$301,896$302,035$139 County transfer for SPED Transfers of Indirect ($12,486)($12,524)($12,792)($268) Indirect Fund 13 Interfund Transfers Out $38,711$70,680$70,906$226 Adjusted transfer to Fund 13 Total Expenditures $8,523,014$9,086,805$8,940,144($146,661)

11. General Fund Summary Category2013-14 Budget Development 2013-14 Budget First Interim 2013-14 Budget Second Interim Beginning Balance$2,856,956 Revenue$8,369,640$8,873,391$9,070,646 Expenditures$8,523,014$9,086,805$8,940,144 Net Increase/Decrease($153,374)($213,414)$130,502 Ending Fund Balance$2,703,582$2,643,542$2,987,458 Economic Uncertainty$425,001$454,340$447,007 Revolving Cash$5,100 Restricted Funds$70,388$29,500$157,125 CCSSI - $124,700 Committed - COP Debt Service$410,188 Local Control Funding Formula Impact $193,700 Available for budget shortfalls$1,599,205$1,744,414$1,968,039

12. Multi-Year Projections (MYP) Budget Assumptions 2013-14 Budget Second Interim 2014-15 Projection 2015-16 Projection Statutory COLA1.565%1.87% 0.86%1.99% 2.12% Gap Funding11.78%16.49% 28.05%18.69% 33.95% Average Daily Attendance (ADA) K-8 District County Special Ed 1090 1108 4.84 1090 1108 4.84 1090 1108 4.84 California CPI2.3% 2.2%2.5% 2.4% COLA State Categoricals1.80% 0.86%2.3% 2.2% Federal COLA000 Common Core State Standards Implementation Funds Revenue: $216,437 Expenditures: $91,737 Revenue: 0 Expenditures: $124,700 N/A Prop 39 Clean Energy Jobs Act$106,252

13. Multi-Year Projections Multi-year projections are based on the Governor’s Budget released in January Governor will revise his budget in May May revise projections will be used to develop budget for the 2014-15 school year Step increases included for all eligible employees No changes to Health, Dental, and Vision

14. Multi-Year Projections – Second Interim 2013-14 Projection2014-15 Projection2015-16 Projection Beginning Fund Balance$2,856,956$2,987,458$3,138,649 Revenue$9,070,646$9,269,365$9,750,198 Expenditures$8,940,144$9,118,174$9,154,231 Net Increase (Decrease) in Fund Balance $130,502$151,191$595,967 Ending Fund Balance$2,987,458$3,138,649$3,734,616 Revolving Fund & Restricted$157,125 (CCSSI - $124,700) $32,423 Reserved for Economic Uncertainty$447,007$455,909$457,712 Certificates of Participation Debt Service $410,188$409,563$408,788 Available for Budget Shortfalls$1,968,039$2,235,654$2,830,593

15. Cash Deferrals are still in the budget, cash is monitored every month State Budget included funding to buy back most deferrals Remaining Deferrals: April - 38% of the apportionment deferred to July May – 97% of the apportionment deferred to July June – 100% of the apportionment deferred to July Education Protection Account (EPA) –approximately 20 percent of our State Aid that will be paid on a quarterly basis

17. Fund 13 - Cafeteria Fund Category2013-14 Budget Development 2013-14 Budget First Interim (FI) 2013-14 Budget Second Interim (SI) Changes (SI – FI) Notes Beginning Balance$500 Audit Adjustment($944) Revenue$427,512 $427,515 Transfer In$38,711$38,471$38,697$226Contribution from General Fund Expenditures$466,223$465,983$465,765($218)Adjusted Salaries and Direct costs Net Increase (Decrease) in Fund Balance $0 $444 Ending Balance$500

19. Fund 14 - Deferred Maintenance Category2013-14 Budget Development 2013-14 Budget First Interim 2013-14 Budget Second Interim ChangeNotes Beginning Balance$86,098 Revenue$34,482$1,100 Transfers In (From General Fund) 0$32,209 Expenditures$35,000 Net Increase (Decrease) in Fund Balance ($518)(1,691) - Ending Fund Balance $85,580$84,407

21. Fund 25 – Capital Facilities Fund Category2013-14 Budget Development 2013-14 Budget First Interim 2013-14 Budget Second Interim ChangeNotes Beginning Balance$883,784 Revenue$59,445$60,945$67,314$6,369Developer Fees Transfers In$526,035 From Fund 52 Expenditures$585,480$1,412,407 Net Increase (Decrease) in Fund Balance $0($825,427)($819,058) Ending Fund Balance $883,784$58,357$64,726 Cash with fiscal agent $6,512$1.621.62 Cash with county$877,273$58,355$64,724

23. Fund 52 – Debt Service Fund for Blended Component Units Category2013-14 Budget Development 2013-14 Budget First Interim ChangeNote Beginning Balance$1,175,302 Revenue$681,572$681,752 Expenditures$397,392 Interfund Transfers Out $549,035 Net Increase (Decrease) ($264,855) Ending Fund Balance$910,447 Cash w/ fiscal agent$402,714 $402,695 Assigned – Debt Service $507,733 $507,752

24. Summary and Recommendation Second Interim projections show an operating surplus of $132,466 in the General Fund for the current year Based on multi-year projections and current assumptions staff recommend the Board approve Second Interim with a positive certification and the budget adjustments within

25. Any questions?