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

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 , 37.40% for , 36.70% for Projected COLA – applied to Target, not current year Projected Supplemental Grant funding – what will our student population look like in future? 27.26% for Potential increases in mandated District contribution to STRS and PERS built into MYP Affordable Care Act – unintended costs to employers - unknown

IMPACT of LCFF on WSCUHSD LCFF based on grade level funding bands Target to be reached in – 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 funding at $8,549 per ADA Estimated 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

LCFF and WSCUHSD

Multi-Year Projection - Agenda page Preliminary for Public Preview (6/10/2015) Budget Year Using May Revise Gap 53.08% Using DOF Gap 37.40% 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, , , Total Revenue 24,922,593 24,049,359 24,392, Total Expenditures 24,154,603 24,445,353 25,146, Excess (Deficiency) 767,990 (395,994) (753,970) Total Transfers/Other Uses (225,000) (90,000) (85,000) Net Increase (Decrease) 542,990 (485,994) (838,970)31 32Fund Balance 32 33Beginning Balance 2,378,294 2,921,284 2,435, Audit Adjustment(s) Net Ending Balance 2,921,284 2,435,290 1,596, Components of Ending Balance: 36 37Reserves for Economic Uncertainties 733, , , Revolving Cash 6, Prepaid Expenses Assigned for Math III Textbook Purchases 120, Assigned for Science Textbook Purchase 360, Assigned for unspent carryover - school site Assigned for difference in midGap to DOF Gap - 205, , Assigned for deferred maintenance Assigned for tech. hardware replacement 60,000 90, , Restricted Ending Balance 750, , , Unappropriated Ending Balance 890, ,316 65, Net Ending Balance 2,921,284 2,435,290 1,596,32048

Other Revenue Projections Detailed in MYP ( page 238 ) and Assumptions ( pages 239,240,241 ) Federal revenues estimated at 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

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 and (5 sections of teaching with no related savings in health benefits each year) Health Benefits increased costs – based on estimates using actual rate changes; 7% annual, or a 9% premium increase for and 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 – based on and adjusted for known changes, then increased 1% overall in and for Special Education placement needs, plus Routine Restricted Maintenance fully budgeted at required 3% contribution Contributions reflect needs of restricted programs

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

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 Estimated revenue of $300,000 has been added to LCFF, with increase in expenses of $512,809 from 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 ; $70,000 for ; $65,000 for $30,000 one time transfer for with one-time money To be used to implement programmatic changes in effort to reduce future years contribution on permanent basis

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 is $719,568 (4.42% of LCFF revenue) Total Supplemental Grant expenses included in budget: $719,951 Detailed lists included in the LCAP and Budget Narrative on page 9 (see Agenda pg. 228)

Deficit Spending ( line 31 of MYP on page 238 ) : $ 1,233,240 deficit projected : $ 542,290 positive – NO DEFICIT projected : $ 485,954 deficit projected : $ 838,970 deficit projected Ending fund balance for , , and 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 First Interim Report

Reserve Levels - Narrative pg. 8 New Public Hearing requirement beginning 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 $485,994 Unassigned/Unappropriated –intended to cover deficit spending in $404,138 Total Substantiated Need $1,430,132

Impact of LCFF Accountability Each district must adopt a Local Control and Accountability Plan (LCAP) for (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 Proposed Budget as presented Goal and expenditures tied to the Supplemental funding calculation and the minimum proportionality percentage have been accounted for in the Proposed Budget as presented

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

Questions?