1. First Interim Report
Reflects Financial Activity Through October 31, 2016
Budget as of October 31, 2016
Board must certify if the District
– Will Meet(Positive)
– Might Meet(Qualified)
– Will Not Meet(Negative)
Financial Obligations for the current and
two succeeding fiscal years.
WSCUHSD is presenting a Qualified First Interim Budget Report

2. Changes since the Adopted Budget
Revenue
LCFF – Decrease $95,556 due to decrease in Gap percentage (54.84% to 54.18%)
Federal – Increase $28,666 due to posting of carryover.
State – Increase $420,675 due to one-time money received
Local – Increase $208,221 due to SpEd reading grant, movie rental revenue, and miscellaneous increases.

3. Changes since the Adopted Budget
Expenditures
Certificated Salaries – Decrease $9,135
Classified Salaries – Increase $2,138
Health/Welfare Benefits – Decrease $65,000
Books & Supplies – Increase $812,144 due to budgeting of one-time money, Consortium reading grant, textbooks out of reserve, and school site carryover.
Services – Increase $878,663, mostly due to an accounting change in Transportation

4. Multi-Year Planning under LCFF
Factors which will make the MYP more uncertain than in the past:
Projected Gap Funding – how much is the state appropriating?
Projected COLA – applied to the Target, not the current year
Projected Supplemental Grant funding – what will our student population look like in the future?
Increases in STRS and PERS

5. LCFF = More $$ - right? District who Benefit
Districts with not as much Benefit
High Unduplicated Pupil Count
greater than 55%
Low Unduplicated Pupil Count
WSCUHSD 26.1%
Growing Enrollment
Declining Enrollment Slow but steady decline since ADA 2,370
No Structural Deficit
Structural Deficit

6. COLA & GAP PERCENTAGES 2015-16 2016-17 2017-18 2018-19 COLA 1.02% 0%
1.11%
2.42%
DOF GAP %
52.56%
54.18%
72.99%
40.36%
SSC GAP %
19.30%
34.25%

7. Multi-Year Funding per ADA
Gap Funding 52.56% (School Services and DOF agree)
Gap Funding 54.18% (School Services and DOF agree)
Gap Funding 72.99% (School Services 19.30%/Median 46.15%)
Gap Funding 40.36% (School Services 34.25%/Median 37.31%)

8. CHANGES IN LCFF & ADA 2015-16 2016-17 2017-18 2018-19 LCFF per student
$8,799
$9,201
$9,513
$9,684
Increase over PY
$1,071
$402
$312
$171
Funded ADA
Decrease over PY
(66.70)
(56.26)
(45.34)
(71.44)

9. STRS & PERS INCREASES 2015-16 2016-17 2017-18 2018-19 STRS Employer
10.73%
12.58%
14.43%
16.28%
EX: Year-to-Year Increased expense on a salary of $70,000
$1,295
Cumulative Increase in Expense
$2,590
$3,885
$5,180
STRS Employee
9.2%
10.25%
EX: Year-to-Year Decrease Net Pay on a salary of $70,000
$735 $0
Cumulative Decrease in Net Pay
$1,470
PERS Employer
11.847%
13.888%
15.50%
17.10%

10. Declining Enrollment Deficit
Revenue Decline
A decline of 30 $9,201 per ADA = ($276,030)
Expense Decline
A decline of 1 $71,000 total comp = ($71,000)
Deficit = ($205,030) Revenue Loss – Expense Decline

11. Budget Year2016-17 Projected Budget
MYP Summary
First Interim
Budget Year Projected Budget
Using DOF Gap 72.99%
Using DOF Gap 40.36%
Object Codes
Unrestricted
Restricted
Total
COLA (enter percentage)
0.00%
1.11%
2.42%
GAP Funding Rate (enter percentage)
54.18%
72.99%
40.36%
ADA for LCFF purposes (current or prior year)
1,919.53
1,874.19
1,802.75
Total Revenue
19,064,351
5,206,620
24,270,971
18,894,715
5,227,535
24,122,250
18,517,872
5,248,450
23,766,322
Expenditures
Employee Benefits - STRS contribution
886,126
253,943
1,140,069
994,142
335,779
1,329,921
1,103,508
382,616
1,486,124
Employee Beneftis - PERS contribution
218,977
154,855
373,832
264,426
146,241
410,667
294,639
162,951
457,589
Total Expenditures
16,898,598
8,567,909
25,466,507
15,601,236
8,758,351
24,359,587
15,517,978
8,948,279
24,466,257
Excess (Deficiency)
2,165,753
(3,361,290)
(1,195,537)
3,293,479
(3,530,816)
(237,338)
2,999,894
(3,699,829)
(699,935)
Total Transfers/Other Uses
(3,284,532)
3,263,465
(21,067)
(3,348,465)
(85,000)
Net Increase (Decrease)
(1,118,780)
(97,824)
(1,216,604)
(54,987)
(267,351)
(322,338)
(348,571)
(436,364)
(784,935)
Fund Balance
Beginning Balance
2,982,009
1,079,914
4,061,923
1,863,229
982,090
2,845,319
1,808,242
714,739
2,522,982
Audit Adjustment(s) -
Net Ending Balance
1,459,671
278,375
1,738,046
Components of Ending Balance:
Reserves for Economic Uncertainties
9789
766,577
735,288
738,488
Revolving Cash
9711
6,850
Prepaid Expenses
9713
Assigned for Math III Textbook Purchases
9780
53,500
Assigned for Science Textbook Purchase
360,000
Assigned for unspent carryover - school site
150,000
Assigned for difference in midGap to DOF Gap
198,613
143,229
Assigned for deferred maintenance
Assigned for tech. hardware replacement
90,000
Restricted Ending Balance
9740
Unappropriated Ending Balance
9790
436,302
303,992
7,604

12. Deficit Spending
: $689,478 in deficit spending : $1,134,867 positive, primarily due to one-time money received but not spent in 15-16, Mandated Cost money, and Educator Effectiveness money : $1,216,604 in deficit spending (projected) : $322,338 in deficit spending (projected). $772,338 in deficit spending if $450,000 in reductions are not made : $784,935 in deficit spending (projected). $1,488,424 in deficit spending if $703,489 in reductions are not made.

13. Deficit Spending
Ending fund balance for all three years of projection remains positive – above the 3% minimum reserve – if reductions of recommend amounts are implemented.
Reserve levels decrease as a result of deficit spending, and should be considered one-time money.
Reducing or eliminating deficit spending is paramount
to remaining fiscally stable.

14. Next Steps
Continue to be mindful about enrollment projections and expenditure increases.
Only use one-time funds for one-time purposes
Update MYP revenue projections with information from the Governor’s January Budget Proposal
Complete negotiations with Bargaining Units
Begin work on Second Interim updates

15. Questions? Administration requests approval of the Second Interim Report with a Qualified certification.