1. Prepared by: Shelley Stiles, Business Manager Presented to the Board: June 10, 2015 West Sonoma County Union High School District Proposed 2015-16 Budget

2. Multi-Year Planning under LCFF Factors which will make the MYP less certain than in past: Projected Gap Funding – how much is state appropriating? Using Department of Finance (DOF) in MYP 53.08% for 2015-16, 37.40% for 2016-17, 36.70% for 2017-18 Projected COLA – applied to Target, not current year Projected Supplemental Grant funding – what will our student population look like in future? 27.26% for 2015-16 Potential increases in mandated District contribution to STRS and PERS built into MYP Affordable Care Act – unintended costs to employers - unknown

3. IMPACT of LCFF on WSCUHSD LCFF based on grade level funding bands Target to be reached in 2020-21 – an 8 year transition WSCUHSD Target Funding of $9,281 (increases with COLA) Grade 9 – 12 Target Base:$8,578 Adjustment of 2.6% for CTE:$ 223 Supplemental Grant (27.26%):$ 480 Estimated 2015-16 funding at $8,549 per ADA Estimated 2015-16 supplemental grant funding $719,568 calculated using 53.08% Gap funding rate equaling current year minimum proportionality 4.42% of total funding LCFF funding and minimum proportionality won’t be set until legislature and governor sets state budget for 2015-16

4. LCFF and WSCUHSD

5. Multi-Year Projection - Agenda page 238 2015-16 Preliminary for Public Preview (6/10/2015) Budget Year 2015- 16 Using May Revise Gap 53.08% 2016-17 Using DOF Gap 37.40% 2017-18 Using DOF Gap 36.70% Total COLA (enter percentage) 1.02% 1.60% 2.48% GAP Funding Rate (enter percentage) 53.08% 37.40% 36.70% ADA for LCFF purposes (current or prior year) 1,988.94 1,963.36 1,935.36 6Total Revenue 24,922,593 24,049,359 24,392,7556 7 7 20Total Expenditures 24,154,603 24,445,353 25,146,72520 21 22Excess (Deficiency) 767,990 (395,994) (753,970)22 23 29Total Transfers/Other Uses (225,000) (90,000) (85,000)29 30 31Net Increase (Decrease) 542,990 (485,994) (838,970)31 32Fund Balance 32 33Beginning Balance 2,378,294 2,921,284 2,435,29033 34Audit Adjustment(s) - - -34 35Net Ending Balance 2,921,284 2,435,290 1,596,32035 36Components of Ending Balance: 36 37Reserves for Economic Uncertainties 733,338 738,011 758,90237 38Revolving Cash 6,850 38 39Prepaid Expenses - - -39 40Assigned for Math III Textbook Purchases 120,000 - -40 41Assigned for Science Textbook Purchase 360,000 -41 42Assigned for unspent carryover - school site - - -42 43Assigned for difference in midGap to DOF Gap - 205,605 504,63843 44Assigned for deferred maintenance - - -44 45Assigned for tech. hardware replacement 60,000 90,000 120,00045 46Restricted Ending Balance 750,964 546,508 140,09446 47Unappropriated Ending Balance 890,132 488,316 65,83647 48Net Ending Balance 2,921,284 2,435,290 1,596,32048

6. Other Revenue Projections Detailed in MYP ( page 238 ) and Assumptions ( pages 239,240,241 ) Federal revenues estimated at 2014-15 amounts, onetime grants reduced, Title I eliminated, MediCal (MAA) unrestricted revenue reduced to zero and budgeted upon receipt Other State revenues: Lottery ($162 per ADA) adjusted for declining enrollment, One-time revenue for discretionary spending ($601 per ADA) from May Revise Local revenue includes $1,108,000 for Measure K parcel tax, donation estimates, payments from Consortium partner districts, SCOE CTE/ROP reimbursements, final 6 months of solar incentives

7. Expenditure Projections Detailed in MYP ( page 238 ) and Assumptions ( pages 239,240,241 ) 180 student days, 184 teacher work days Step and Column increased costs 1.0 Certificated FTE reduction in 2016-17 and 2017-18 (5 sections of teaching with no related savings in health benefits each year) Health Benefits increased costs – 2015-16 based on estimates using actual rate changes; 7% annual, or a 9% premium increase for 2016-17 and 2017-18 STRS and PERS rate increases based rates known at May revise Books and supplies – based on site allocations plus $240,000 for Math I and Math II textbook adoptions Services and Operating – 2015-16 based on 2014-15 and adjusted for known changes, then increased 1% overall in 2016-17 and 2017-18 for Special Education placement needs, plus Routine Restricted Maintenance fully budgeted at required 3% contribution Contributions reflect needs of restricted programs

8. One-time expenses – Narrative pg. 11 Math I and Math II Textbook purchase$240,000 Technology – 2 additional Chromebook labs$ 26,000 Field rental and other athletic expenses ( due to stadium construction) $ 75,000 One-Time contribution to Deferred Maintenance$100,000 One-Time contribution to Cafeteria Fund for program changes$ 30,000 Assigned Reserves for Math III Textbooks (spring 2016)$120,000 Assigned Reserves for Science Textbooks (purchase 2017)$360,000 Balance to fall into the unrestricted ending balance$228,979 TOTAL $1,179,979

9. Expenses – Other Outgo & Transfers Out Other Outgo – Transportation excess costs to JPA $878,006 – 100% of excess costs – the JPA will not longer receive revenue direct from CDE beginning in 2015-16. Estimated revenue of $300,000 has been added to LCFF, with increase in expenses of $512,809 from 2014-15. Transfers Out – to other funds Deferred Maintenance Fund (14) $50,000 annually (no longer an assigned reserve) $35,000 annually for turf replacement $100,000 one-time transfer with one-time money Cafeteria Fund (13) $75,000 for 2015-16; $70,000 for 2016-17; $65,000 for 2017-18 $30,000 one time transfer for 2015-16 with one-time money To be used to implement programmatic changes in effort to reduce future years contribution on permanent basis

10. Supplemental expenses Unrestricted LCFF funding includes supplemental targeted funding for English Learners, free or reduced meal eligible, and foster youth. The estimated targeted funding for 2015-16 is $719,568 (4.42% of LCFF revenue) Total Supplemental Grant expenses included in 2015-16 budget: $719,951 Detailed lists included in the LCAP and Budget Narrative on page 9 (see Agenda pg. 228)

11. Deficit Spending ( line 31 of MYP on page 238 ) 2014-15: $ 1,233,240 deficit projected 2014-15: $ 542,290 positive – NO DEFICIT projected 2015-16: $ 485,954 deficit projected 2016-17: $ 838,970 deficit projected Ending fund balance for 2015-16, 2016-17, and 2017-18 remains positive – above the 3% minimum reserve As funding increases with the promises of LCFF and an improving economy, the deficit spending will naturally decrease; however, a plan will need to be developed to address this structural problem in the two subsequent years and be included with the 2015-16 First Interim Report

12. Reserve Levels - Narrative pg. 8 New Public Hearing requirement beginning 2015-16 Fund balances in excess of the 3% minimum reserve must have reasons identified Combined Assigned and Unassigned/Unappropriated Fund Balance: $2,163,470 3% minimum reserve = $733,338 Remaining Balance to Substantiate Need =$1,430,132 Assigned for Math III Textbook Purchase Spring 2016 $ 120,000 Assigned for Common Core Science Textbook Purchase Spring 2017 $360,000 Assigned for Technology Hardware Replacement or New Purchase $60,000 Unassigned/Unappropriated –intended to cover deficit spending in 2016-17 $485,994 Unassigned/Unappropriated –intended to cover deficit spending in 2017-18 $404,138 Total Substantiated Need $1,430,132

13. Impact of LCFF Accountability Each district must adopt a Local Control and Accountability Plan (LCAP) for 2015-16 (including a 3 year plan) and beyond The local school agency goals for the LCAP need to be based on eight state mandated priority areas All goals in the LCAP have been aligned with the 2015-16 Proposed Budget as presented Goal and expenditures tied to the Supplemental funding calculation and the minimum proportionality percentage have been accounted for in the 2015-16 Proposed Budget as presented

14. Next Steps Adjust 2015-16 Budget with any changes necessary from Board and public input from tonight’s LCAP and Budget presentations Present the final 2015-16 Budget for approval on June 24, 2015 Prepare the 45 Day Revise to 2015-16 Budget and present to the Board on August 19 th Work on plan to address Deficit Spending Close books for 2014-15 and finalize 2015-16 beginning balance Present 2014-15 Unaudited Actuals to Board on September 9 th

15. Questions?