Brian McDonald, Superintendent June 22, 2017 2017-2018 Original Budget Brian McDonald, Superintendent Bernadette Y. Griggs, Chief Business Officer

Mr. Roy Boulghourjian, President Mr. Lawrence Torres, Vice President 2017-2018 Original Budget BOARD OF EDUCATION Division: Business Services Mr. Roy Boulghourjian, President Mr. Lawrence Torres, Vice President Mr. Patrick Cahalan, Member Dr. Elizabeth Pomeroy, Member Ms. Kimberly Kenne, Member Mr. Scott Phelps, Member Ms. Michelle Richardson Bailey, Member Our Children • Learning Today • Leading Tomorrow

Overview of Information Presented: 2017-2018 Original Budget INTRODUCTION Division: Business Services Overview of Information Presented: Budget Assumptions General Fund Revenues General Fund Expenditures Our Children • Learning Today • Leading Tomorrow

Our Children • Learning Today • Leading Tomorrow 2017-2018 Original Budget INTRODUCTION Division: Business Services Multiyear Projections (MYP) Other Funds Summary State Forms Budget is being presented to the board for approval for submission to LACOE by June 30, 2017 Our Children • Learning Today • Leading Tomorrow

Our Children • Learning Today • Leading Tomorrow 2017-2018 Original Budget FY18, FY19, FY20 Assumptions Division: Business Services Category 2016-2017 Adopted Second Interim Estimated Actuals 2017-2018 Original 2018-2019 Projected 2019-2020  Projected Enrollment  16,825 17,022 16,852 16,683 16,516 Funded ADA 16,356 16,408 16,386 16,280 16,119 15,957 Supplemental & Concentration LCFF Total 68.48% $23,335,137 $153,826,182 67.31% $22,774,364 $153,585,097 67.32% $22,807,762 $153,569,223 65.66% $23,358,584 $155,627,296 64.72% $23,435,909 $158,536,659 $23,686,430 $160,918,672   GAP Funding 54.84% $8,020,090 54.47% $7,303,087 55.03% $7,452,826 43.97% $2,910,412 71.53% $4,238,141 $73.51% $3,763,343 Base Lottery $2,388,803 $2,454,168 $2,451,168 $2,426,688 $2,402,352 $2,378,304 One Time/ Mandated Cost $4,509,371 $4,083,038 $4,092,047 $2,947,251 $587,015 COLA 0% 1.56% 2.15% 2.35% Step & Column Approx. 1% $923,845 $300,000 $802,223 $801,377 $775,890 PERS 13.88% 15.531% 18.10% 20.80% STRS 12.58% 14.43% 16.28% 18.13% SPED Contribution $21,000,000 $23,951,919 $26,215,077 $26,762,829 Our Children • Learning Today • Leading Tomorrow

Our Children • Learning Today • Leading Tomorrow 2017-2018 Original Budget FY18, FY19, FY20 Assumptions Division: Business Services Additional Notes: Restricted programs have been adjusted for those grants and programs that are scheduled to end in the next two fiscal years Assumptions do not include any salary increases for the next two years are included Some vacant positions have been funded Our Children • Learning Today • Leading Tomorrow

Total General Fund Revenues 2017-2018 Original Budget Total General Fund Revenues Division: Business Services LCFF $ 155,627,296 75.48% Federal Revenue 17,582,442 8.52% Other State Revenue 27,799,697 13.48% Other Local Revenue 5,196,195 2.52% Total Revenues $ 206,205,630 100.00% Our Children • Learning Today • Leading Tomorrow

Total General Fund Expenditures 2017-2018 Original Budget Total General Fund Expenditures Division: Business Services Certificated Salaries $ 79,766,309 37.63% Classified Salaries 37,467,312 17.68% Employee Benefits 52,835,140 24.96% Books and Supplies 7,027,538 3.32% Services, Other Operating Expenditures 35,127,307 16.57% Capital Outlay 105,000 .04% Other Outgo ( 352,934) (.17%) Total Expenditures $ 211,975,672 100.00% Our Children • Learning Today • Leading Tomorrow

Combined Multiyear Revenue & Expenses 2017-2018 Original Budget Combined Multiyear Revenue & Expenses Division: Business Services   FY2016-2017 FY 2016-2017 FY2017-2018 2018-2019  2019-2020  Description Original Budget Estimated Actuals Projected Budget Beginning Balance $10,447,338 $19,131,138 $16,462,480 $10,692,438 $9,428,815 Revenues $210,288,148 $213,776,004 $206,205,630 $204,538,251 $204,383,281 Expenditures $210,120,822 $216,444,662 $211,975,672 $205,801,874 $207,440,779 Net Revenue & Expenditures $167,326 ($2,668,658) ($5,770,042) $(1,263,623) ($3,057,498) Estimated Fund Balance $10,614,664 $6,371,317

COMBINED GENERAL FUND – FUND BALANCE ANALYSIS 2017-2018 Original Budget Combined Multiyear Fund Balance Division: Business Services COMBINED GENERAL FUND – FUND BALANCE ANALYSIS   2016-2017 2017-2018 2018-2019  2019-2020 Original Budget Estimated Actuals Projected Budget Reserves: Deficit /Surplus From Operations $167,326 ($2,668,658) ($5,770,042) ($1,263,623) ($3,057,498 Beginning Balance (from Prior Year) $10,447,338 $19,131,138 $16,482,480 $10,692,438 $9,428,815 Projected Fund Balance (Current Year) $10,614,664 $16,462,480 $6,371,317 Restricted Fund Balance $1,146,084 $5,874,700 $4,172,264 $3,111,768 $52,665 Reserve for Economic Uncertainty-3% $6,303,625 $6,485,840 $6,359,271 $6,174,057 $6,223,224 Other Non spendable Amounts $300,000 $362,429 $150,000 Assigned Fund Balance $3,739,511  Unassigned Fund Balance $2,564,955 $10,903 $142,990 $95,438 Ending Fund Balance

Our Children • Learning Today • Leading Tomorrow 2017-2018 Original Budget Other Funds Division: Business Services Fund TITLE BUDGET   12.0 Child Development $ 5,079,484 13.0 Cafeteria 9,322,676 21.1 Measure TT 111,459,850 25.0 Capital Facilities 286,059 40.2 Special Reserve Capital 216,670 67.0 Self-Insurance 9,792,083 Other Funds Total $136,156,822 Our Children • Learning Today • Leading Tomorrow

Our Children • Learning Today • Leading Tomorrow 2017-2018 Original Budget Summary Division: Business Services Areas of Concern Sustainability of Enrollment and all other programs in the future There must be right sizing as available resources cannot sustain status quo Increase in Special Education funding 2017-2018 deficit spending and unrestricted contribution. Unrestricted Fund Balance and Reserve Our Children • Learning Today • Leading Tomorrow

Our Children • Learning Today • Leading Tomorrow 2017-2018 Original Budget Summary Division: Business Services Recommendations Moving Forward Major decisions to be made regarding 2018-19 and 2019-20 budget reductions Identify what adjustments must be made to implement the budget reduction proposed in the FY19 and FY20 Our Children • Learning Today • Leading Tomorrow

Our Children • Learning Today • Leading Tomorrow 2017-2018 Original Budget Summary Division: Business Services Recommendations Moving Forward Reduction needed in FY 2019 is $10-12m We must weigh every spending decision to determine return on investments as well as how the expenses support goals and focus areas Possible school Consolidation Review Programs and narrow our focus Cost sharing increases in Health & Welfare Our Children • Learning Today • Leading Tomorrow

Our Children • Learning Today • Leading Tomorrow 2017-2018 Original Budget Wrap Up Division: Business Services The budget presented along with the State SACS financial printouts represent the 2017-18 Proposed Original Budget for the various funds of the District. Request board approval for submission to the Los Angeles County Office of Education by June 30, 2017 Our Children • Learning Today • Leading Tomorrow

Our Children • Learning Today • Leading Tomorrow Questions & Comments Our Children • Learning Today • Leading Tomorrow