June 23, 2015

PROPOSED BUDGET REPORT

FY 2015/16

DR. ADRIAN PALAZUELOS ANDREA MCNEILL MICHELE REDDY

SUPERINTENDENT ASST. SUPERINTENDENT, DIRECTOR,

BUSINESS SERVICES BUDGET & ACCOUNTING.

District Logo Student Success, whatever it takes

FUSD Mission & Core Values

Mission

Every day we develop high performing students who become

engaged and productive members of society.

Core Values

Accountability

Excellence

Culture

Staff

Respect

Trust

Partnerships

Fiscal Responsibility

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Purpose of Budget Report

It is required by Ed. Code

Provide an Expenditure Plan for the governing board’s

consideration and approval

To certify to the VCOE that the district is able to meet

the state required reserve level for the current and two

subsequent years

Shows evidence of LCAP alignment to Budget

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Budget Assumptions

The budget is often referred to as a “living document ” which must be revised whenever conditions/assumptions

change. We reflect those changes in the Revised Budget and 1st & 2nd Interim Financial Reports.

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Assumptions 2015-2016 2016-2017 2017-2018

Cost of Living Adjustment (COLA) 1.02% 1.60% 2.48%

Funded LCFF Gap (Projected %) 53.08% 37.40% 36.70%

P2 ADA 3614± 3614± 3614±

Enrollment (projecting flat) 3774 3774 3774

Step & Column (1.5 % for certificated, 1.0% for classified) $260K $284K $310K

STRS (currently 8.88%) 10.73% 12.58% 14.43%

PERS (currently 11.771%) 11.847% 13.05% 16.60%

Instructional Days/Prof. Development 180/5 180/5 180/5

Furlough Days 0 0 0

Health and Welfare Costs –all groups 10% incr. 10% incr. 10% incr.

Lottery (Unrestricted) per ADA $128 $128 $128

Lottery (Restricted) per ADA for Prop. 20 $34 $34 $34

By the Numbers..LCFF Components Summary

Projected funding increase will vary each of the 8 years,

Gap closure is determined annually by the state.

Gap is the difference between our final entitlement

(2021) and funds we actually receive until the gap is

closed.

The state promised that no district would lose funding as

a result of LCFF implementation.

Our unduplicated pupil count is 81%

but can change!

Percentage above the 55% threshold

(81 - 55) = 26%

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Component Totals Target Amounts

Base Grant $27,404,738

Grade Span Adjustments $1,112,249 (K3) & (9-12)

Supplemental $4,647,128

Concentration $3,775,649

Transportation $477,844

Entitlement Target

in 8 yrs. Time (2021)

$37,417,608

14/15 Hold Harmless

Amount

$27,823,309

GAP FUNDING $9,594,299

Funding for FY 15/16 is

53.08% of the Gap

$5,092,654

Proportionality PercentageThe percentage an LEA is required to demonstrate improved/or increased services to unduplicated

students - can be qualitative or quantitative measure.

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Factors Amounts

Estimated Base Grant $27,652,621

Estimated Supplemental & Concentration

Grant Funding (all Unrestricted funds)$4,785,498

Minimum Proportionality Percentage 17%

K-3 GSA Calculations - FY 2015/16

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Targeted Grade Span Adjustment

Piru

Mountain

Vista San Cayetano Rio Vista

Prior Year Required Class Size Average 27.0 29.0 28.5 28.0

Minus Target Class Enrollment 24.0 24.0 24.0 24.0

Equals 3.0 5.0 4.5 4.0

2015-16 GAP % (estimated) 53.08% 53.08% 53.08% 53.08%

Minimum Required Reduction over Prior Year 1.6 2.7 2.4 2.1

Maximum Class Size Average to Make Progress 25.5 26.5 26.0 26.0

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One-time Discretionary Funds in FY

15/16 Budget

Estimates

One-time Discretionary - Mandated Cost

3,614 ADA times $601 $2,172,014

Use of One-time Funding

Annual Technology Replacement $140,000

Technology Infrastructure $500,000

21st Century Classroom Technology $500,000

Total Use Planned for 2015-16 $1,140,000

Balance of One-time Discretionary Funds $1,032,014

GENERAL FUND REVENUES

LCFF $32,915,963

Federal Revenue $2,143,892

Other State Revenue $3,562,134

Other Local Revenue $2,889,324

Total Revenue $41,511,313

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$32,915,96379.3%

$2,143,8925.2%

$3,562,1348.6%

$2,889,3247.0%

LCFF Federal Revenue Other State Revenue Other Local Revenue

GENERAL FUND EXPENDITURES

$32M or 75%

of the budget is

spent towards

employees’

Salaries &

Benefits

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$16,477,865 38.3%

$6,129,802 14.2%

$9,551,377 22.2%

$2,655,704 6.2%

$4,669,782 10.9%

$1,628,816 3.8%

$1,715,000 4.0%

$201,521 0.5%

Certificated Salaries Classified Salaries Employee Benefits

Books and Supplies Services, Operating Expenses Capital Outlay

Debt Service Other Outgo/Transfers Out

General Fund Expenditures Total Amount

Certificated Salaries $16,477,865

Classified Salaries $6,129,802

Employee Benefits $9,551,377

Books and Supplies $2,655,704

Services, Operating Expenses $4,669,782

Capital Outlay $1,628,816

Debt Service $1,715,000

Other Outgo/Transfers Out $201,521

Total $43,029,867

General Fund ComparisonFY 14/15 to FY 15/16

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Description

FY 14/15 Estimated

Actuals

FY 15/16

Proposed Difference

REVENUES

LCFF $27,914,318 $32,915,963 $5,001,645

Federal Revenues $2,502,546 $2,143,892 ($358,654)

State Revenues $1,907,230 $3,562,134 $1,654,904

Local Revenues $3,131,134 $2,889,324 ($241,810)

TOTAL REVENUES $35,455,228 $41,511,313 $6,056,085

EXPENDITURES

Certificated Salaries $15,372,653 $16,477,865 $1,105,212

Classified Salaries $4,999,529 $6,129,802 $1,130,273

Employee Benefits $7,832,843 $9,551,377 $1,718,534

Books/Sup/Svcs/Op.Exp $6,641,791 $7,325,486 $683,695

Capital Outlay $214,282 $1,628,816 $1,414,534

Debt Service $0 $1,715,000 $1,715,000

Other Outgo/Transfers Out $201,521 $201,521 $0

TOTAL EXPENDITURES $35,262,619 $43,029,867 $7,767,248

SURPLUS/DEFICIT $192,609 ($1,518,554) ($1,711,163)

Components of Ending Fund Balance

General Fund13

Beginning Fund Balance (Estimated) $4,291,860 * (does not include restricted carryovers and will change

at unaudited actuals)

Revenues $41,511,313

Expenditures $43,029,867

Projected Ending Fund Balance $2,773,306

Assigned $1,452,614

Designated for Economic $1,290,896

Uncertainties - 3% of Expenditures and Transfers Out

Undesignated Ending Fund $29,796

Balance

Reserve for technology replacement, $1,032,014

Other Post Employee Benefits, $418,600

Per SB858 Requirements the Total Assigned and Undesignated balances

above the minimum reserve requirement is $1,482,410.

Multi-Year Projection

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FY 15/16 FY 16/17 FY 17/18

Beginning Fund Balance $4,291,860 $2,773,306 $2,948,459

Revenue $41,511,313 $40,989,449 $42,735,515

Expense $43,029,867 $40,814,296 $42,472,031

Ending Fund Balance $2,773,306 $2,948,459 $3,211,943

Less Restricted & Assigned $1,452,614 $1,452,614 $1,452,614(Technology and Other Post Employment Benefits)

Less Designations $1,290,896 $1,224,429 $1,274,161(3% Reserve Requirement)

Undesignated Balance $29,796 $271,416 $485,168

Budget Certification

FUSD is proposing a Positive Budget Certification.

This means that based on current projections the

district will meet its financial obligations for the

current fiscal year and two subsequent fiscal years.

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Proposition 30 Taxes

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Proposition 30, approved by voters in November 2012,

temporarily increased the state sales tax and income tax

rates for high-income earners.

With current legislation these higher taxes will expire as

follows:

The 0.25% sales tax increase expires in 2016 (i.e., the

2016-17 fiscal year)

The personal income tax increase expires in 2018 (i.e.,

the 2018-19 fiscal year)

Next Steps in the Budget Process 17

July - August

45 Day Update: Based on the Adopted State Budget

Close Year-End

September

Presentation of 2014-15 Unaudited Actuals Report

October

Audit

December

2015-16 1st Interim Report

Submit 2014-15 Audit Report to State Controller’s Office

Questions?

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