Simi Valley Unified School District2021-2022 Proposed BudgetJune 29, 2021

Presentation

• Proposed Budget Process• Budget Assumptions• Proposed Budget – Revenue and Expenditures• 2021-2022 Possible Changes• Multi-Year Projection & Assumptions• Areas to be Addressed/Looking Ahead

2021-2022 Proposed BudgetSchool districts throughout California are required to pass their Annual

Budget prior to July 1.

The Proposed Annual Budget is based on information contained in the Governor’s January Proposed State Budget and the Governor’s May Revision.

This Proposed Annual Budget is only a “place holder” budget. The District will be required to adopt a revised budget after the legislature has approved a State Budget and the Governor has signed the budget.

What the Board is approving tonight is due to the “budget process.” There will be changes due to changes in the State

budget.

2021-2022 LCFF Funding: $155,391,9052020 -2021: LCFF $148,190,179C.O.L.A. 5.07% Unduplicated Count Percentage 34.58% (-0.62%)

Supplemental Funds $9,885,383 (+ $308,074)

Minimum Proportionality Percentage (MPP) 6.79% 2021-2022 Funded ADA 15,731 (Based on 2019-2020 Hold Harmless)

Budget Assumptions

Budget Assumptions• Lottery - $207 per ADA (+8)

– Unrestricted $150 – Restricted $ 49

• Step Increase– Certificated: 1.3%– Classified: 1.0%

• STRS (16.15% to 16.92%): $616,257 increase (2020-2021: 17.1% to 16.15%) (2013-2014: 8.25%)

• PERS (20.70% to 22.91%):$606,628 increase (2020-2021: 19.721% to 20.7%) (2013-2014: 11.442%)

• Unemployment Insurance: 0.05 % to 1.23% $340,000 increase– From under $15/employee to around $350/employee

Budget Assumptions

• Budget Reductions - Personnel– Certificated Personnel

• Reduction of 5.0 Teachers–Currently staffed to known enrollment.–Retirements and Temporary Contracts

– Classified• Several Vacant Positions have not been filled

but are budgeted.

Budget Assumptions

AssumptionsK-3 Class Size Reduction: 24:1Class Size Secondary Schools: 180 Student Contacts per

dayHealth & Welfare: 5% increase, approx. $457,607

Health & Welfare is January – December Rates

All Assumptions are subject to change based on Ending Fund Balance, State Budget and Negotiations

Revenue

Revenue Source 2021-2022 Proposed 2020-2021 Est. Actuals

LCFF $155,391,905 $148,190,179

Federal $13,052,512 $16,082,490

Other State $15,253,521 $28,561,769

Local and Transfers $12,726,324 $14,004,812

Total $196,424,262 $206,839,250

ExpendituresItem 2021-2022 Proposed 2020-2021 Est. Actuals

Certificated Salaries $80,033,336 $82,893,054Classified Salaries $30,083,503 $29,711,018Employee Benefits $59,441,863 $55,859,820Books and Supplies $12,352,389 $7,722,102Services $24,239,739 $20,032,450Capital Outlay $2,073,163 $3,300,124Other Outgo $613,637 $345,501Transfers $0 ($472,672)Other Financing Uses $- $-Total $208,837,630 $199,391,397

Ending Fund Balance2021-2022 Proposed Budget

TOTAL REVENUES $196,424,262TOTAL EXPENDITURES $208,837,630EXCESS/DEFICIT ($12,413,368)ENDING FUND BALANCE

Revolving Cash $82,548Stores $53,104Reserve for Economic Uncertainty @4% $8,550,728ESSER 1 (Restricted) $754,277ESSER 2 (Restricted) $6,052,703GEER (Restricted) $696,035Classified Employee Prof Dev. (Restricted) $122,427SB 117 COVID 19 Response (Restricted) $182,099Textbook Replacement $31,135One Time Discretionary $2,093,873Studio Funds $13,083Instructional Materials (Lottery) $6,714,199

ENDING FUND BALANCE TOTAL $28,300,226

Ongoing vs. One Time: 2020-2021 Proposed EXPENDITURES Ongoing One-Time and/or Restricted Combined

Certificated Salaries $75,507,829 $ 4,525,507 $80,033,386

Classified Salaries $26,578,102 $ 3,505,401 $30,083,503

Employee Benefits $48,835,661 $ 10,606,202 $59,441,478

Books and Supplies $8,839,559 $ 3,512,830 $12,352,389

Services & Operating $18,020,825 $ 6,218,914 $24,239,389

Capital Outlay $886,157 $1,187,006 $2,073,163

Other Outgo $613,637 $613,637

Transfer of Indirects (160,185) $160,185

Transfers Out --- $1,000,000 $1,000,000 Total Expenditures $179,121,585 $ 30,716,045 $185,768,462

REVENUE Ongoing One –Time and/or Restricted Combined

Beginning Balance $ 21,515,428 $ 19,613,166 $ 41,128,594

LCFF $155,391,905 $155,391,905Federal Revenue $250,000 $12,802,512 $13,052,512

State Revenue $3,411,873 $11,841,648 $15,253,521Local Revenue $11,436,516 $1,289,808 $12,726,324

Other Sources/Transfers In $585,000 $585,000Total Revenue $171,075,294 $25,933,968 $197,009,262

Total Unrestricted Funds Available

Available One - Time

Total Funds AvailableBeginning Balance plus Revenue

$192,590,722 $ 45,547,134 $238,137,856

Deficit Spending????

• Look at Ongoing Funding vs. One Time Funding– Ongoing does not include discretionary

• Ongoing Funding – Deficit Spending: ($8,046,291)– Textbook Adoption: $4.5 million– STRS and PERS Increases : $1.2 million– Unemployment Insurance Increases: $338,000– Healthcare Increases: $457,000– Beginning Fund Balance was $21,515,428

• One Time Funding – Stimulus Funds– Deadlines for Spending

Stimulus FundingFunding Source Received/In Budget* To be received in

21/22 or 22/23Not in Budget

GEER $696,035 $254,386

In Person Instruction Grant $1,000,000 $1,435,750

Expanded Learning Opportunity $10,325,782

ESSER 1 $794,277 $336,561

ESSER 2 $6,052,703 $117,653

ESSER 3 $13,470,307

COVID LEA Response Funds $182,099

*Almost $8 million received in 2020-2021

Multi-Year ProjectionDescription 2021/2022 2022/2023 2023/2024Revenues $197,009,262 $184,669,415 $187,410,368

Expenditures $209,837,630 $198,328,509 $194,429,094

Net Increase/Decrease

($12,828,368) ($13,659,094) ($7,018,726)

Beginning Balance $41,128,594 $28,300,226 $14,641,132

Ending Balance $28,300,226 $14,641,132 $7,622,406

Assigned $8,852,290 $102,966 $102,966

Restricted $10,561,556 $470,381 $250,000

Reserves $8,550,728 $7,933,140 $5,832,873*

Undesignated $200,000 $6,003,923 $1,305,846

Reminders – This MYP is based on the May Revise

• Goal: Utilize stimulus funds to better serve students• Multiyear Projections are not predictions of the future, they

are not forecasts. They are assumptions based on today’s information and are expected to change.

• They are exactly wrong…but should be approximately right…and school districts must do them.

• 2021-2022 is the Budget of the Unexpected– State Budget– Federal Stimulus

• Out years involves stimulus funds not yet received. Budget only reflects expenditures where funds have been received.

ADA Cliff: 708 ADAReduce LCFF by $3,529,389 Supplement with ESSER to maintain staffing positions and not

compromise quality of education.2023-2024 LCFF will return to same funding level as 2021-2022

Reduce Teacher Staffing to adjust to decline in enrollment decline in 2021-2022: 7 teachers

STRS Increases: $1.9 million – 16.92% to 19.1% PERS Increases: $944,000 – 22.91% to 26.10% H&W Changes: Reduce $1.18 million

To be negotiated

2022-2023 Multi Year Assumptions

ADA Decline of 171With 3.11 % COLA 2023-2024 LCFF will return to

same funding level as 2021-2022

Reduce Teacher Staffing to adjust to decline in enrollment decline in 2021-2022: 6 teachers

STRS Increases: NO CHANGEPERS Increases: $305,000 – 26.1% to 27.1%

2023-2024 Multi Year Assumptions

Multi-Year Assumptions 2023-2024

Projected Declining Enrollment: 171 With 3.11% COLA LCFF Funding returned to 2021-2022 level

Health and Welfare Increase at 5%: $1,200,797Reduce 6 FTE, Declining Enrollment: $489,041STRS no changePERS 26.1% to 27.1% ($201,843 increase)

All Assumptions are subject to change based on Ending Fund Balance, State Budget and Negotiations

Certificated Reduction @ 1%: $586,904 (8-10 FTE) Certificated Mgmt. Reduction @ 4%: $174,569 (2-3 FTE) Operations Staff Reduction @ 5%: $219,641 (6-7 FTE) Maintenance Staff Reduction @ 5%: $272,902 (6-7 FTE) Clerical Staff Reduction @ 5%: $160,207 (6-7 FTE) H&W Reduction due to RIF: $203,925 Classified Ancillaries: $252,811 Certificated Ancillaries: $186,789

TOTAL REDUCTIONS: $2,057,748

2023-2024 Additional Changes/Reductions

Multi-Year Assumptions

All Assumptions are subject to change based on Ending Fund Balance, State Budget and Negotiations

The actuals of the2020/2021 ending fund balance will change. The district will close the books on these funds prior to September 15, 2021. Any remaining balances will be reflected in the ending fund balance.

The State Budget is yet to be approved. The legislature has approved a budget that will be beneficial to school districts.

The changes will be made at a 45 Day Revision or the 1st

Interim Revision

2021-2022 Proposed Budget

• State Budget Changes - Trailer Bills/Legislation• Health & Welfare Cost

– CalPERS Health Benefits rates released• 2022-2023 and 2023-2024 Fiscal year are projections• Deficit Spending• Depletion of Discretionary Fund

– Programs, Professional Development and Projects funded by discretionary funds will come to an end.

• Declining Enrollment• Impact of Loss of Stimulus Funding

Areas to be Addressed

Simi Valley Unified School District

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