Budget Update

October 18, 2018

1

The “Silent Recession” (Krausen and Willis, 2018)

“Despite projected increases in state and local education funding between 2017/18 and 2021/22 California school districts face fiscal pressures that threaten to destabilize school district budgets and force reductions in services to students.”

After adjusting for inflation, schools are now only receiving 2007-08 levels of funding.

2

2018-19

Proposed General Fund RevenueSummary

Local Control Funding Formula

85%

Federal Revenue 4%

Other State Revenue

10%

Other Local Revenue

1%

The State Provides 95% of BUSD’s $156.5 Million in Funding

Note: We receive less than $2.4 million from Lottery funding.3

District Contribution to Employee Retirements

2,232 2,443 2,629 3,4023,927 4,650 5,266

6,0104,786 5,535

7,0798,987

10,37911,891

13,43214,168

2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21

DISTRICT CONTRIBUTIONPERS STRSMillions $

An Increase of $13.16 million

4

$7,018

$20,178

….. 2017-18 Unrestricted

2018-19Unrestricted

2019-20 Unrestricted

2020-21Unrestricted

Total LCFF Funding 2,909,737 8,393,191 4,202,523 3,630,758

Less Cost for:STRS (retirement) 1,359,778 1,401,898 1,396,236 741,813

PERS (retirement) 423,202 682,994 747,612 750,688

Step/Column 1,454,130 1,501,538 1,501,538 1,501,538

Class size reduction /Dual Imm

160,000 80,000 -0- -0-

Staff 2% Increase -0- 3,740,728 1,870,364 1,870,364

Contribution Chg: Restricted Maint, Child CareSpecial Ed

-0-634,693

258,044307,791

77,388-0-

390,000

934,007-0-

LCAP Supplemental 19,043 146,940 581,416 967,851

LCFF Balance (1,141,109) 273,258 (2,362,031) (3,135,503)

LCFF 2018-19 New Base Dollars and New GF Expenditures

5

Solution: Districts Only Have Three Options

1. Maximize restricted dollars (Local Control Funding Formula – Supplemental & Concentration Funding)

2. Secure local funding via foundation grants and/or local parcel taxes

3. Raise class sizes, cut programs and services for students, or freeze compensation increases

6

BUSD Receives Less Funding than Surrounding Districts

7

2018-19

Proposed General Fund ExpenditureSummary

88% of the budget is for employee compensation

Certificated Salaries

48%

Classified Salaries 17%

Employee Benefits

23%

Books and Supplies

2%

Services & Other9%

Capital & Other1%

Expenditures

8

Chart1

Certificated Salaries

Classified Salaries

Employee Benefits

Books and Supplies

Services & Other

Capital & Other

Expenditures

Transfers -2%

Other Sources 1%

75778253

26985158

36297348

3798120

13552411

2028217

Sheet1

Expenditures

Certificated Salaries$75,778,25348

Classified Salaries$26,985,15817

Employee Benefits$36,297,34823

Books and Supplies$3,798,1202

Services & Other$13,552,4119

Capital & Other$2,028,2171

Burbank Unified School DistrictThree Year Increase in Maximum Salary for Teachers with Credentials

0

2

4

6

8

10

12

14

16

18

20

Baldwin Park

Burbank

Q3Q2Q1 Q4

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Measure QS – If it passes…Ballot Language: “To attract and retain quality teachers and staff, provide local funding to maintain low class sizes, expand college and career courses, increase mental health support, expand instruction in science, technology, engineering, arts and math programs, shall the Burbank Unified School District levy 10 cents per square foot of improved property annually, providing approximately $9,000,000 in annual local funding the state cannot take away until ended by voters, with senior citizen exemptions and independent oversight/audits?”

Independent Community Oversight Committee would review the budget each year as well as independent audits on expenditures. Sample budget can be found here: https://legistarweb-production.s3.amazonaws.com/uploads/attachment/pdf/184867/Parcel_Tax_050918.pdf

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https://legistarweb-production.s3.amazonaws.com/uploads/attachment/pdf/184867/Parcel_Tax_050918.pdf

Measure QS – If it fails…We will need to begin to cut at least $2.5M

to address our structural deficit

• Potential reductions:• Teacher Professional Development• Assistant Principals• Elementary Music• Middle and High School Arts• College and Career Courses (i.e., Animation, Retail Management,

Stage Tech, etc.)• Gifted and Talented Education (GATE) program• Elementary PE program

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Questions/Comments?

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Budget Update��October 18, 2018The “Silent Recession” (Krausen and Willis, 2018)2018-19 ��Proposed General Fund Revenue�Summary ��District Contribution to Employee RetirementsSlide Number 5Slide Number 6Slide Number 72018-19 ��Proposed General Fund Expenditure�Summary ��Burbank Unified School District�Three Year Increase in Maximum Salary for Teachers with CredentialsMeasure QS – If it passes…���Measure QS – If it fails…�We will need to begin to cut at least $2.5M�to address our structural deficitSlide Number 12