San Marino Unified School District. Business Services. Pres

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• San Marino Unified School District
• Business Services
• Presents

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• San Marino Unified School District
• Budget Study Session
• April 17, 2007
• Julie Boucher
• Assistant Superintendent, Business Services
• Special thanks to Vangie Lingat and John
  Ziegenhohn for their assistance with this
  presentation.

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The Economy is Doing Well but Stay Tuned

• The economy is doing well but were beginning
  to see signs of weakness
  
• Jobs, consumer spending, and business spending
  remain strong however, we are beginning to see
  a slowing trend
  
• The stock market is still near record levels
• Energy prices are increasing
• Housing market has slowed
• Legislative Analyst forecasts 2007-08 Budget
  deficit of 2.0 billion
  
• State-wide decline in student enrollment
• Lottery sales down

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Governors May Revise Preview

• California Schools are funded 30-40 below other
  States it would take
  
• 15 billion to bring us up to the average.
• State Revenues are down YTD (tax collections,
  personal income taxes, and corporate taxes).
  April tax collections will determine basis for
  2007-08 revenue projections.
• Governor is proposing to add transportation
  dollars to Proposition 98 - which lowers the
  base funding in the budget year.
  
• 2007-08 is looking like a straight forward year
  COLA for all State revenues, no additional
  equalization aid or deficit reduction funding.
  
• 2008-09 is a concern the deficit factor could
  return.

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K-12 Revenue Limits

• 2007-08 Statutory COLA 4.04
• Equal to 225 per Student (3,192 ADA) or
  718,000
  
• No additional funding for districts with
  declining enrollment
  
• In any given year of decline, the State allows
  school districts to use the prior year P2 ADA for
  revenue limit calculations. However, in the
  subsequent year, the Districts revenue limit is
  reduced permanently.

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Proposition 98 Primer

• Under Proposition 98, Education is entitled to a
  determined percentage of State revenues with
  certain caveats, categorized as Tests
  
• Test 1 Education received at least 34.6 of
  State revenues (this test has never been used
  because of the percentage of the States General
  Fund is well over the minimum)
• Test 2 Education receives the same amount as the
  previous year, plus enrollment growth and
  inflation adjustment based on growth in per
  capita personal income. We are currently in Test
  2.
• Test 3 Same as Test 2 except the inflation
  adjustment used is the annual change (increase or
  decrease) in per capita State General Fund
  revenues plus ½ percent. Applied in difficult
  years applies a deficit factor to Education
  funding.
• Source Ed Source Resources 2006

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COLA History and Projections
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Federal Funding in 2006-07

• From 2005-06 to 2006-07 Federal Revenues have
  been reduced. Although, Federal revenues are
  projected to remain constant in 2007-08, the
  basis for funding (i.e. number of limited English
  proficient students) has declined and thus, the
  Districts Federal revenues may decrease further
  in 2007-08.

• Note The District receives very little
  Federal revenue in comparison to other school
  districts. Total Federal revenues in 2006-07
  120,153 (excluding IDEA Special Ed. funds).

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San Marino Unified School DistrictEnrollment and
ADA Trends Projections
Projected
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Enrollment Trends by Site
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Inter-district Transfers Trend
In 2006-07, it is estimated that the District
received 1.5m based on the number of
inter-district transfers, many of which are child
ren of District staff members.
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Staffing Trends Number of Teachers by Site
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San Marino Unified School District Revenue
Sources
The District is dependent on the State for
approximately 80 of its revenues.
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State Lottery
Expected Ongoing s in 1988
148 per ADA (proj.)
148 per ADA (est.)
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2006-07 School Site Block Grants - Update

• DISTRICT one-time grant
• 19 per student or 65,082 received in one-time
  funding. Amount transferred to the Deferred
  Maintenance Fund to fund gym improvements at
  Huntington Middle School and the High School.
• SCHOOL SITES one-time grants
• Arts Music Block Grant (6760) - 16 per
  student, ongoing The Asst. Supt of Instruction
  is working with School Principals on a plan for
  expending the funds in the areas of arts and
  music.
• Discretionary Block Grant (7396 and 7397) - 59
  per student, one-time - allocation determined by
  the School Site Councils (SSCs). Schools will
  use the funds for textbook needs.
• Instr. Material, Library Materials and Ed. Tech
  Grant (7398) - 16 per student, one-time
  allocation determined by the Principals with
  input from the School Site Councils. Schools will
  use the funds for textbook needs.
• Arts Music, Physical Education Supplies,
  Equipment Professional Development Grant (6761)
  Est. 82 per student, one-time. Awaiting funds
  and program information from CDE and LACOE . The
  Asst. Supt of Instruction is working with School
  Principals on a plan for expending the funds in
  the areas of arts, music and physical education.
• Note These funds must supplement (not supplant)
  current programs in place at the schools.
  

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Mandated Cost Revenues

• The District has received reimbursement for
  mandated costs, which were not paid by the State
  (2001-02 2005-06)
  
• Funds are one-time non-recurring
• State Controllers Office has received additional
  funding for audit staff to audit individual
  school districts revenues received
  
• Some school districts have had to return funds
• LACOE and SSC have urged Districts to reserve
  these funds for three years from receipt of
  funds.
  
• LACOE and SSC are also recommending that the
  Districts set a portion of these funds aside for
  Other Post Employment Benefits (SMUSD must comply
  as of July 1, 2008).
• Funding Year Amount Received Reserved Until
• 2005-06 16,297 2008-09
• 2006-07 566,404 2009-10
• 2006-07 13,738 2010-11

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San Marino Unified School District Expenditures
Over 80 of the Districts Budget
Is committed to salaries and benefits.
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Undesignated Ending Balance History
Note In 2002-03, 277,759 represents planned
savings due to unfilled positions, a freeze on
classified substitutes, limits on supplies,
services, conferences, etc. These funds were
committed to funding the ongoing costs of the
Save Our Schools Program.
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Reserve for Economic Uncertainties
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Reserve Needs 2006-07

• Legal Fees Maintenance and Operations Supplies,
  Services and Repairs 300,000
  
• Lottery Revenues Due to a decline in tickets
  sales, K-14 lottery revenues were cut by the
  State in April 2007 by 52,316
  
• Adopted State Budget (per ADA s)
• Unrestricted 125.25
• Restricted 27.90
• Revised State Budget (April 2007)
• Unrestricted 118.00
• Restricted 19.00
• The Reserve for Economic Uncertainties must be
  restored to 3 ASAP.

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Legal Fees 2006-07

• Special Education 20,000
• Personnel Matters 104,000
• Claims 64,000
• Negotiations 6,400
• Real Estate/Construction 20,000
• Board Policies/Counsel 24,000
• Total Expd to-date 238,400
• 2006-07 Projected Total 250,000

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M O Expenditures 2006-07 - Supplies, Services
Equipment

• Custodial Supplies 60,000
• Grounds Supplies 40,000
• Maintenance Supplies 135,000
• Operating Services 190,000
• Major Repairs 260,000
• Girls Field House sewer pump/tank
• Boiler system repair replacement
• HVAC needs repairs
• Fencing needs HS, Val,
• Irrigation and field improvements
• Electrical upgrades
• Carpeting/flooring needs
• Gym bleacher repairs
• Equipment (computers, carts, containers) 30,000

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2007-08 Budget Planning Considerations

• 2007-08 projections reflect a estimated decline
  of 135 students
  
• If enrollment declines by 135 students, revenues
  in 2008-09 will decrease by 760,000.
  
• If excess funds are received from the San Marino
  Schools Foundation, it is recommended that these
  funds be reserved to offset the loss of revenue.
  
• Actual enrollment figures October 2007
• If actual enrollment matches projections, budget
  reductions will be necessary in planning for
  2008-09.
  
• Classroom teacher staffing needs TBD
• Maintaining lower class sizes
• Programmatic Needs TBD

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2007-08 Budget Planning Considerations

• Aligning the Boards Goals with the District
  Budget
  
• How will salary and benefit compensation
  increases (step and column and salary increases)
  be funded?
  
• 1 increase in salary compensation 214,000
• 1 increase in COLA 177,000
• 1 increase in COLA does NOT equal a 1 increase
  in salary compensation
  
• How will Districts share of premium increases be
  funded?
  
• How will step and column costs (est _at_ 260,000)
  be funded?
  
• Will there be savings due to attrition and
  retirements?
  
• What are the staffing needs to maintain lower
  class sizes or to comply with programmatic
  policies for 2007-08?
  
• How will we offset the loss of revenues due to
  declining enrollment?
  
• What are the core needs of the District?
• How will those needs be funded?

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Key Budget Factors

• San Marino USD is the second smallest unified
  school district in Los Angeles County
  
• Our student to teacher ratios, particularly at
  the High School level are lower than other school
  districts
  
• Over 60 of the certificated teachers have 15
  years of experience or more and 30 have more
  than 20 years of experience.
  
• Average teachers salary is 65,700 however in
  comparison to other school districts our
  mid-range and most experienced teachers are paid
  less than comparative school districts.
• We have made a commitment to lower class sizes
  and as a result, the Districts overall teacher
  to student ratio is much lower than comparison
  school districts.
• Yes we receive parcel tax revenues and annual
  contributions from our Schools Foundation
  however, we are still below total revenues of
  other unified school districts by approximately
  1,000 per student.

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2007-08 Unallocated Funding Sources
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2007-08 Required Needs

• From the 500,000 in Unallocated Funds the
  following budgets will require increases as
  expenditures in each of these categories in
  2006-07 exceed the amount budgeted
• Legal Fees 2006-07 Budget 142,250 2007-08
  Projection 250,000. Net difference 107,750.
  
• Maintenance and Operations Supplies 2006-07
  Budget 607,000 2007-08 Projection 765,000. Net
  difference 158,000.
  
• Net amount available for Potential Budget Needs
  234,250
  

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Instructional Material/Textbook Needs

• Ongoing Instructional Materials Funding
• Instructional Materials Realignment Funds -
  55.92 per student
  
• Proposition 20 Lottery - 19.00 per student in
  2006-07
  
• These funds must cover both new and replacement
  textbooks as well as supplemental supplies,
  workbooks and supporting materials.
  
• Textbook Needs Total all schools
• 2006-07 Science 410,000
• 2007-08 Math 388,550
• 2008-09 English Language Arts 400,207
• TOTAL 1,198,757
• Schools will fund with PY savings, parent
  donations, lottery funds, and one-time
  allocations from the State for 2006-07.
  

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2007-08 Potential Budget Needs

• As ranked by Budget Committee and Leadership
  Team
  
• Priority 1 Items Textbooks, offset loss of ADA
  due to declining enrollment and employee salary
  and benefit compensation
  
• Priority 2 Items Offset loss of Federal
  revenues, property and liability insurance,
  teacher sub pay, MO staffing and supplies,
  repairs and services.
• Priority 3 Items Additional teaching staff,
  District operating budgets, legal fees, staff
  development, technology needs, special ed.
  support, deferred maintenance, MO alarm response
  needs, addtl psychologist time, increase
  reserve.
• Priority 4 Items Additional HS security,
  capital projects, additional teachers for world
  languages, public information needs, career
  center support, elementary assistant principal.

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2007-08 Budget Calendar

• April 17th Budget Study Session
• May 8th School Services of California, Inc.
  will provide the District with their
  Fiscal Analysis Report for the San Marino Unified
  School District.
• May 18th Governor Schwarzenegger presents his
  May Revise Report
  
• May 22nd Preliminary Budget for 2007-08
  presented to the Board of Education
  
• June 12th Proposed Adopted Budget presented for
  review, and discussion
  
• June 13th 26th Public comment period
• June 26th Following a public hearing the Board
  of Education will consider adoption of the
  2007-08 Proposed Budget
  
• Oct 1st Present actual enrollment and staffing
  requirements reports
  

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Next Steps

• Board direction on budget planning
• Prioritize budget needs
• Align core values with budget planning and
  priorities
  
• Evaluate staffing levels and programmatic
  decisions
  
• Monitor student enrollment
• Prepare Line Item Budget for 2007-08
• Report actual enrollment and revenues in October
  2007
  
• Board to consider augmentations for budget needs
  November 2007
  

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Summary

• 2006-07 Budget Needs
• Restore reserve for economic uncertainties to
  required 3 level
  
• Funding needs for model technology classroom
  project
  
• 2007-08 Budget Planning
• Closely monitor student enrollment
• Governors May Revise Report
• 2007-08 State Budget
• Unallocated General Funds
• Budget Needs
• 2008-09 Budget Planning
• Budget reductions may be necessary