1. Poway Unified School District Governor’s 2019-2020 Budget Proposal
Presented to: Palomar Council PTA
Ron Little, Associate Superintendent
March 5, 2019

2. Agenda California’s Current Economic Trends
Governor’s Budget Proposal for
Impacts to Poway Unified School District

3. California’s Current Economic Trends
Low Unemployment Rates
4.1% (December 2018) down from 12.2% (Fall 2010)
Slowing Job Growth
Robust General Fund Revenues
Personal Income Tax (PIT) - Real Personal Income Growth up 3.6%
Sales and Use Tax exceed projections
Continued Economic Growth
10 years of sustained economic growth
Tech sector remains robust
State’s General Fund Reserves
Rainy day fund for emergencies or recession, BSA levels at 10.7%
Total reserves levels at 12.8%

4. Risks to the California Economy and the State Budget
“It can’t get much better for Gavin Newsom as California’s next Governor. But it’s almost certain to get worse.”
L.A. Times
Risks to the California Economy and the State Budget
Governor Newsom and the UCLA economists identify a different set of key risks to California’s economy – they aren’t mutually exclusive
UCLA
Governor
Unratified tri-party trade agreement between California, Mexico, and Canada
Continued trade tensions between the U.S. and China
Policy conflicts with the federal government
Volatile stock market
An aging population
Housing crisis
2019 School Services of California, Inc.

5. Governor’s Budget Proposal for 2019-20 Education
$80.7 billion in Prop 98 Funding (3.6% year over year increase)
$3 billion (one-time, non-Prop 98) for CalSTRS liabilities offset
$2 billion for LCFF to provide 3.46% COLA (total LCFF $63 billion)
$750 million (one-time, non-Prop 98) for new or retrofitted full-day kindergarten facilities
$576 million ($186 million one-time) for expanded special education services and support
$187 million to provide 3.46% COLA to some categorical programs outside of the LCFF
$20.2 million additional for county offices to provide technical assistance to school districts
Significant investment in early childhood
Prop 98 Funding (in Billions $)
$80-
$70-
$60-
$50-
$40-
$30-
$20-
$0-
Acceleration of Bond sales related to Prop 51
89.0%
11.0%
K-12
CCCs

6. $3 Billion One-Time, Non-Prop 98 Funds
Governor’s Budget Proposal for
Education
$3 Billion One-Time, Non-Prop 98 Funds
Current
(per AB 1469)
Proposed
(per January Budget)
Fiscal Year Change
16.28%
18.13%
17.10%
-1.03
19.10%
18.10%
-1.00
Part 1: Immediate Relief
$700 million applied over two years
Reduce statutory rate increases for employers
Part 2: Prepayment to Achieve Long-Term Savings
$2.3 billion to pay down employers’ unfunded liability
Projected to reduce employer contribution rate 0.5% (ongoing)
Projected to save employers $6.9 billion over the next three decades
Caveat: How will the non-educational agencies react to the Governor utilizing the non-Prop 98 funding bucket?
Source: Capital Advisors Group, LLC

7. Governor’s Budget Proposal for 2019-20 PUSD Impacts
3.46% COLA on LCFF funding
$2.7 million over the 2.57% COLA currently budgeted for in
3.46% COLA for Special Education funding
$160,000 over the 2.57% COLA currently budgeted for
Increase in Mandated Block Grant funding
$60,000 increase over currently budgeted for
$3 billion ‘buy-down’ of STRS liability
Decrease in projected employer-paid STRS of $1.3 million in

8. Governor’s Budget Proposal 2019-20 PUSD Impacts
Net Gain of $4.2 million of ongoing funding in General Fund
Updated enrollment projections based on current year certified enrollment and revised short-term projections
Multi-Year Projections
as per January 17, 2019 Board of Education meeting

9. Thank you