1. The Power and Vulnerability of the MYP:
Ways School Finance Leaders Can Maximize this Valuable Tool
CBO Strand
April 2018
The views and opinions expressed in this presentation are those of the authors and do not
necessarily reflect those of CASBO.

2. Your Presenters Keith Butler, Ph.D. Sheila Vickers Kate Lane Mary Hart
Associate Superintendent Vice President
Palos Verdes Peninsula USD School Services of CA, Inc.
Kate Lane Mary Hart
Assistant Superintendent Associate Superintendent Marin COE Santa Cruz COE
Brett W. McFadden
Associate Superintendent
Monterey Peninsula USD

3. The Multi-Year Projection (MYP)
Every Business needs a Plan, or a Roadmap
Where are you heading?
How long will it take you to get there?
How will you know when you arrive?
When did the MYP come into use?
Why?
What it is intended to do?

4. A “positive” MYP
Fund 01 General Fund – Unrestricted and Restricted Funds
First Interim Budget Report
(In millions)

5. A challenged MYP: What’s wrong with this picture?
Beginning Balance
38.58
24.93
17.93
Audit adjustment - finding
(1.87) -
Revenues
202.22
197.58
199.44
Expenditures
214.00
204.58
211.55
Increase/Decrease
(11.78)
(7.00)
(12.11)
Ending Balance
5.82
Revolving Cash/Rest.Bal
12.30
10.88
10.02
3% Reserve
6.36
6.08
6.31
Unapprop Reserve
6.27
0.97
(10.51)

6. County office oversight
All California school districts adhere to the budget adoption process per Education Code
School district budgets and interim reports must contain a three-year fiscal projection – current FY plus two more
County offices of education are responsible for the fiscal oversight of districts within their jurisdiction
County offices are authorized to approve and/or disapprove district budgets

7. County office review categories
Per Education Code, the county office shall review and issue a certification of all school district budget and interim reports
July budget adoption – positive certification, conditional, disapprove
1st and 2nd Interims – positive, qualified, negative
Positive – the district can meets its obligations over the 3-year forecast
Qualified – the district may not be able to meet its obligations over the 3-year forecast
Negative – the district will not be able to meet its obligations over the 3-year forecast
The COE can require the district to adopt fiscal stabilization plans to address current and out-year fiscal shortfalls

8. The MYP: Point #1 The MYP is a projection, … not a forecast. Notes
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The MYP is a projection, … not a forecast.

9. The MYP: Point #2
Notes
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It is a snapshot in time. It will change, and is meant to change.

10. The MYP: Point #3
Notes
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It is based on a set of assumptions. These assumptions will change over the course of a fiscal year. And over the three years.

11. The MYP: Point #4
Notes
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It is the best tool we have to protect our districts It is the only long term projection tool we have

12. Example: Using the MYP to make a point
Real life scenario (yes, this really happened):
Pajaro Valley USD teachers’ union makes proposal, district staff costs out total cost, totals more than $35 million per year, district displays impact in a MYP in public.
Beginning Balance
40.88
-2.09
-45.18
Revenues
177.57
175.05
183.59
Expenditures
185.26
179.84
183.47
PVFT Proposal 09/19/13
35.28
38.3
41.42
Increase/Decrease
-42.97
-43.09
-41.3
Ending Balance
-86.48
Revolving Cash/Rest.Bal
4.92
5.37
5.8
3% Reserve
5.56
5.4
5.5
District budget goes into red
-12.57
-55.95
-97.78
Estimated cost of union proposal
Estimated impact in the MYP

13. The MYP – Highlighting reserves
An appropriate reserve is equally critical to protecting student achievement.
What are three things a good reserve provide to you as a leader?
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NOTE: Overall reserve percentages are typically higher for small school districts.

14. Thank you for attending Please contact any of us for additional assistance