Post on 04-Jul-2020
SAN DIEGO UNIFIED SCHOOL DISTRICT
2019-20 First Interim Financial Report
Board of EducationDecember 10, 2019
Budget Development Timeline
We Are Here
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Projections Guidance
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● Guidance on the multi-year calculations and projections is provided by the California Department of Education (CDE) and provided directly by the San Diego County Office of Education (SDCOE).
● The CDE and SDCOE are the legal overseers of district budgets, which make following their guidance a recommended approach.
LAO Guidance
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● On November 20, 2019 the Legislative Analyst’s Office (LAO) announced a fiscal picture, particularly, for K-12 education, that is optimistic for the coming year.
● As much as $7 billion surplus available to state in 2020-21● Estimates as much as $2.1 billion more in ongoing funding
beyond COLA to school districts
General Fund Multi-Year Assumptions Revenues
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Description 2019-20 2020-21 2021-22
LCFF/State Funding Model Declining Enrollment 102,243 100,709 99,199
COLA 3.26% 3.00% 2.80%
Federal: Impact Aid $10.0M $10.0M $10.0M
Other State
Mandated Block Grant $ 3.99M $ 4.08M $ 4.15M
Lottery (GFU $153; GFR $54) $207/ADA $207/ADA $207/ADA
Transfers In $21.3M $21.1M $16.1M
General Fund Multi-Year Assumptions Expenditures
*Includes: Restoration of the work year effective 7/1/2019 and 3.7% effective 1/1/2020. **Year over year increase.***Assumes solutions in 2020-21 are ongoing.
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Description 2019-20 2020-21 2021-22
Salaries and Benefits
Step and Column: Certificated/Classified** 1.85% / 1.05% 1.85% / 1.05% 1.85% / 1.05%Salary Increase* 3.7% 0% 0%STRS 17.10% 18.40% 18.10%
PERS 19.72% 22.70% 24.60%
Health & Welfare Premiums** 6.00% 6.00% 6.00%
Materials & Supplies (Consumer Price Index-CPI)** 3.33% 3.14% 3.02%
Utilities $24.9M $24.9M $24.9MBoard Solutions/Budget Shortfall*** $70.1M $41.4M
Contributions
Special Education $233.6M $249.0M $257.6M
Restricted Routine Maintenance (RRM) $43.9M $41.8M $41.2M
Increased Expenses
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Year-Over-Year Increase ~ $44M
Employer Pension Increased Costs
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GFU Impact$77 Million
$ - Mil $3 Mil $10 Mil $14 Mil $13 Mil $14 Mil $8 Mil $13 Mil $2 Mil
Solutions
● Increase revenues● Reduce expenses
○ Program Shifts○ Identify and implement greater efficiencies within
programs and services○ Spending freeze○ Reinstitute/continue hiring freeze
● Other reductions as necessary
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Note: Solutions may require bargaining
Potential Shifts
● Governor’s Budget released in January, May, June● Impacts of collective bargaining● Strategic layoffs of certificated/classified as needed in March ● Additional unexpected costs or revenues● Minimum wage analysis● CalPERS Rate● Special Education Costs
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Recommended Board Action
● Approve the First Interim Financial Report and Resolution Reflecting the District’s Financial Status from July 1 through October 31, 2019.
● Certify that the District’s Projected Financial Outlook for the current and subsequent two years is Positive◦ Positive Certification: The District WILL MEET their financial
obligations for the current and two (2) subsequent fiscal years.● To balance the budget, the Board of Education will direct the Executive
team to lead a process to identify and implement greater efficiencies within programs and services along with other needed adjustments.
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Questions and Comments
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