Second Interim Board of Education

 
Second Interim
 
March 5, 2024
 
Board of Education
 
Agenda
 
Second Interim
Actual finances through January
Projections through 2025-26
 
Fiscal Projections - 3 years
Shortfall Solutions for 2024-25
Reducing or eliminating certificated and
classified services
 
Certification of Second Interim
 
2
 
Budget
Cycle
 
May
 
Governor’s Revise of
the State Budget
 
 
Final Certificated and
Classified Notices
 
 
June
 
District Budget
Adoption
 
LCAP
 
July
 
 
August
 
September 15
Unaudited Actuals Due
 
October
 
November
 
December
First Interim
 
External Audit
Annual Financial
Statements
FY 2022-23
 
January
Governor's
Proposed Budget
Special Board
Budget
Workshop
January 4
 
February
  Special Board
Budget
Workshop
February 23
 
March
Second Interim Due
 
Preliminary
Certificated and
Classified Notices
 
 
April
 
3
 
OCT.
PLANNING
TEAM
 
Approximately 30
hours spent
analyzing data,
calibrating and
identifying 
$70
million in
potential budget
solutions
 
PRESENT
 
OCT. 6
OPERATIONS
INSTITUTE
 
DEC. 11
SITE LEADER SBB
WORKSHOP
 
JAN.
SITE SBB &
GOVERNOR’S
BUDGET
 
Dr. Jackson‘s
Opening
Sharing the
“Why” of Third
Friday Shifts
Changes to
budget
timeline
 
DEC.
CENTRAL
OFFICE SBB
 
Implement budget
solutions
Federal Program
Monitoring (FPM) and
California Department of
Education (CDE) 
audit
guides
 to understand the
difference between “must
do” and “may do”
Reductions in both
personnel and non-
personnel costs
 
Review of demographer
projections and initial
allocations
Access to Central Office
departments to answer
real-time questions
Collaboration with peers
to brainstorm
adjustments,
communication
protocol, and next steps
 
Central Office identify
further budget solutions
based on the projected
COLA reduction
$24 million in additional
budget solutions
 through
sweep and freeze of
Central Office budgets,
solar revenue, and
further reductions within
individual departments
 
JAN.
LCAP
MID-YEAR
ANALYSIS
 
Teams review
current initiatives
and determine
strategic
abandonment,
refinement, or
keep
 
4
 
Impacts of Governor’s
Proposed Budget
 
Instructional
Continuity
 
Local Control Funding
Formula (LCFF)
 
Risks to Prop 98
 
Decrease Cost-of-Living
Adjustment (COLA) 3.94% to
0.76%
Decrease of approximately
$24M from First Interim for
fiscal year 2024-25
 
Several measures proposed,
including some ADA-based
funding solutions
Wait-and-see if these remain
in the final state budget
 
If state revenues fall or rise, will
impact Prop 98
Currently no deferrals or cuts to
overall Prop 98 funding
 
5
 
In Person Instruction Grant $37.6M
 
Special Education Dispute
Prevention Recovery Support
$10.8M
 
2019-20
 
2020-21
 
2021-22
 
2022-23
 
2023-24
 
2024-25
 
2025-26
 
2026-27
 
CARES  LLMF
$67.1M
 
General Fund
LLMF $8.8M
 
CARES GEER $7.3M
 
CARES ESSER I $30.7M
 
CRSS ESSER II $135.0M
 
Expanded Learning Opportunities Grant $77.8M
 
ARP ESSER III $303.4M
 
Arts, Music, and Instructional Materials Discretionary Block
Grant $57.1M**
 
Learning Recovery Block Grant*
$102.7M**
 
State
$294.8M
 
Federal
$543.5M
 
2027-28
 
Federal Relief
Funds Expiring
 
*Governor’s Budget proposal includes restrictions on Learning Recovery Block Grant funds that would significantly impact allowable use of funds.
**Funds expected to be fully utilized by 2025-26.
 
6
 
Second Interim Development
 
Second Interim is Based ON
 
Covers Fiscal Years
2023-24, 2024-25, and
2025-26
 
Activities from July 1 through
January 31, and projecting to June
30
Governor’s Proposed Budget for
2024-25
Latest guidance from SDCOE
 
7
 
8.22%
 
Planning Factors
 
2023-24
 
2024-25
 
2025-26
 
Contributions
 
Step and Column: Certificated/Classified*
 
Salary Increase
 
CalSTRS Employer Contribution
 
CalPERS Employer Contribution
 
Health & Welfare Premiums*
 
Materials & Supplies (Consumer Price Index-CPI)*
 
Utilities
 
Special Education
 
Restricted Routine Maintenance (RRM)
 
26.68%
 
5.00%
 
3.36%
 
$38.7M
 
($53.9M)
 
0.00%
 
19.10%
 
27.80%
 
6.00%
 
2.83%
 
$38.6M
 
($54.6M)
 
0.00%
 
28.50%
 
7.00%
 
2.70%
 
$40.7M
 
($50.5M)
 
19.10%
 
19.10%
 
5.00%
 
Cost-Of-Living Adjustment (COLA)
 
1.87%/1.47%
 
0.76%
 
2.73%
 
1.84%/1.78%
 
1.84%/1.78%
 
*Year over year change
 
Budget Development Assumptions
 
($274.8M)
 
($313.5M)
 
($319.8M)
 
8
 
General Fund Unrestricted Balance
 
 $163.1M
 
General Fund Unrestricted
 
Revenue
 
Contributions - Special Education, Routine Restricted Maintenance, Other
 
Expenses
 
Solutions Needed to Address Shortfall*
 
($1,061.2M)
 
($374.4M)
 
($1,019.7M)
 
($376.5M)
 
($1,111.7M)
 
$163.7M
 
($332.1M)
 
Beginning Balance
 
 $1,329.5M
 
$42.4M
 
$1,297.5M
 
$1,311.4M
 
Transfers
 
 $13.3M
 
$112.6M
 
$26.4M
 
$10.3M
 
Ending Balance
 
-
 
9
 
*
 
*2024-25 is balanced with $93.7M in solutions reflected in the SACS report.
 
Note: Assume the full utilization of the Arts, Music, and Instructional Materials Discretionary Block Grant and the Learning Recovery Block Grant 2024-25 and 2025-26.
 
Required Reserves (2%)
 
 $ 45.0M
 
 Designated Balance
 
$ 42.4M
 
$39.6M
 
 $67.6M
 
School Site Ending Balances
 
Reserve for Projected Shortfall
 
-
 
-
 
 $2.0M
 
Stores, Prepaid, Revolving Cash
 
 $2.6M
 
$2.6M
 
$2.6M
 
2023-24
 
2024-25
 
2025-26
 
 $112.6M
 
$42.4M
 
$39.6M
 
 $40.4M
 
$37.8M
 
$35.0M
 
 $2.0M
 
 $2.0M
 
2024-25 Solutions*
 
Revenue/
Fund
Balance
 
Funding
Shifts
 
Attrition
 
Prioritizing
School
Sites
 
Solutions focused on four areas:
 
*See January 4th and February 23rd Workshops for review of solutions
 
10
 
Personnel
 
11
 
2025-26
 
Certificated Reductions
 
12
 
648
 
Particular Kind of
Service (PKS)
Non-Reelect
Temp & Leave
Replacement
Known voluntary
exits
 
127
 
Anticipated number
of educators who
will not return in
2024-25
 
234
 
Particular Kind of
Service (PKS)
 
497
 
Particular Kind of
Service (PKS)
Non-Reelect
Temp & Leave
Replacement
 
 
Classified Reductions
 
13
 
370
 
Positions eliminated
Known voluntary
exits
 
123
 
FILLED positions
eliminated
 
250
 
Positions eliminated
 
2024-25
 
2025-26
 
Impacts of Reductions
 
14
 
CERTIFICATED IMPACTS
 
CLASSIFIED IMPACTS
 
PKS reduction may result in:
 
Reassignment from one site to
another in same service/credential
area
 
Reassignment from one
service/credential area to another
(may include site change)
 
Layoff based on credential type
and seniority
 
Position elimination may result in:
 
“Bump” into a vacancy in the same
classification
 
“Bump” into a formerly held
classification
 
Layoff
 
For Classified, “bump chain” often
impacts additional people by a
factor of 3 to 5
 
March 8 through March 13: Site/Department
leaders personally notify impacted employees
March 12: Human Resources mails layoff/bump
notices to impacted employees
May 15: Final layoff/reassignment notices issued
 
Human Resources applies Board-approved tie-
breaking criteria for Certificated staff
Human Resources continues to monitor additional
attrition through remainder of 2023-24 fiscal year
Human Resources will issue notices to employees
no longer affected
Recall rights apply after June 30
 
15
 
Continued
Efforts
 
Attrition
Model
 
Sweep and
Scrutinizing
Expenses
 
Expand Strategy
Plans
 
Expand Zero
Based
Budgeting
 
16
 
Certification Status
 
Three Different Classifications
 
17
 
Recommended Board Actions
 
Approve the Resolution to Reduce or Eliminate Certain
Certificated Services and Classified Positions
 
Approve the Fiscal Year 2023-24 Second Interim
Financial Report with a Positive Certification
 
Based on the resolution going to the board, the District will
meet its financial obligations in the current and subsequent
fiscal years. This will require significant planning in order to
solve the shortfall projected in 2025-26.
 
18
 
Thank  You
Slide Note
Embed
Share

The Second Interim Board of Education meeting on March 5, 2024, covered topics such as actual finances, fiscal projections, budget solutions, and impacts of the Governor's proposed budget on education funding. Discussions included analysis of budget data, potential budget solutions, and review of demographer projections. The meeting also addressed reductions in personnel and non-personnel costs and strategic planning for budget allocations.


Uploaded on Mar 20, 2024 | 1 Views


Download Presentation

Please find below an Image/Link to download the presentation.

The content on the website is provided AS IS for your information and personal use only. It may not be sold, licensed, or shared on other websites without obtaining consent from the author. Download presentation by click this link. If you encounter any issues during the download, it is possible that the publisher has removed the file from their server.

E N D

Presentation Transcript


  1. Second Interim Board of Education March 5, 2024

  2. Agenda Second Interim Actual finances through January Projections through 2025-26 Fiscal Projections - 3 years Shortfall Solutions for 2024-25 Reducing or eliminating certificated and classified services Certification of Second Interim 2

  3. January Governor's Proposed Budget Special Board Budget Workshop January 4 December First Interim External Audit Annual Financial Statements FY 2022-23 February Special Board Budget Workshop February 23 November March Second Interim Due October Budget Cycle Preliminary Certificated and Classified Notices April September 15 Unaudited Actuals Due May Governor s Revise of the State Budget August Final Certificated and Classified Notices June July District Budget Adoption LCAP 3

  4. JAN. LCAP MID-YEAR ANALYSIS JAN. OCT. 6 OCT. DEC. DEC. 11 SITE SBB & GOVERNOR S BUDGET OPERATIONS INSTITUTE PLANNING TEAM CENTRAL OFFICE SBB SITE LEADER SBB WORKSHOP PRESENT Dr. Jackson s Opening Sharing the Why of Third Friday Shifts Changes to budget timeline Approximately 30 hours spent analyzing data, calibrating and identifying $70 million in potential budget solutions Implement budget solutions Federal Program Monitoring (FPM) and California Department of Education (CDE) audit guides to understand the difference between must do and may do Reductions in both personnel and non- personnel costs Review of demographer projections and initial allocations Access to Central Office departments to answer real-time questions Collaboration with peers to brainstorm adjustments, communication protocol, and next steps Central Office identify further budget solutions based on the projected COLA reduction $24 million in additional budget solutions through sweep and freeze of Central Office budgets, solar revenue, and further reductions within individual departments Teams review current initiatives and determine strategic abandonment, refinement, or keep 4

  5. Impacts of Governors Proposed Budget Local Control Funding Formula (LCFF) Instructional Continuity Risks to Prop 98 Decrease Cost-of-Living Adjustment (COLA) 3.94% to 0.76% Decrease of approximately $24M from First Interim for fiscal year 2024-25 Several measures proposed, including some ADA-based funding solutions Wait-and-see if these remain in the final state budget If state revenues fall or rise, will impact Prop 98 Currently no deferrals or cuts to overall Prop 98 funding 5

  6. One-Time State and Federal Funding COVID Related CARES LLMF $67.1M General Fund LLMF $8.8M CARES GEER $7.3M CARES ESSER I $30.7M State $294.8M Federal $543.5M CRSS ESSER II $135.0M Federal Relief Funds Expiring Expanded Learning Opportunities Grant $77.8M In Person Instruction Grant $37.6M ARP ESSER III $303.4M Special Education Dispute Prevention Recovery Support $10.8M Arts, Music, and Instructional Materials Discretionary Block Grant $57.1M** Learning Recovery Block Grant* $102.7M** 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 2025-26 2026-27 2027-28 *Governor s Budget proposal includes restrictions on Learning Recovery Block Grant funds that would significantly impact allowable use of funds. **Funds expected to be fully utilized by 2025-26. 6

  7. Second Interim Development Second Interim is Based ON Activities from July 1 through January 31, and projecting to June 30 Governor s Proposed Budget for 2024-25 Latest guidance from SDCOE Covers Fiscal Years 2023-24, 2024-25, and 2025-26 7

  8. Budget Development Assumptions 2024-25 2025-26 2023-24 Planning Factors 8.22% 0.76% Cost-Of-Living Adjustment (COLA) 2.73% 1.87%/1.47% 1.84%/1.78% 1.84%/1.78% Step and Column: Certificated/Classified* 5.00% 0.00% 0.00% Salary Increase 19.10% 19.10% 19.10% CalSTRS Employer Contribution 26.68% 27.80% 28.50% CalPERS Employer Contribution 5.00% 6.00% 7.00% Health & Welfare Premiums* 3.36% 2.83% 2.70% Materials & Supplies (Consumer Price Index-CPI)* $38.7M $38.6M $40.7M Utilities Contributions ($319.8M) ($274.8M) ($313.5M) Special Education ($53.9M) ($50.5M) ($54.6M) Restricted Routine Maintenance (RRM) *Year over year change 8

  9. General Fund Unrestricted Balance 2023-24 2024-25 2025-26 General Fund Unrestricted $163.1M $112.6M $42.4M Beginning Balance $1,329.5M $1,297.5M $1,311.4M Revenue ($332.1M) ($374.4M) ($376.5M) Contributions - Special Education, Routine Restricted Maintenance, Other ($1,061.2M) ($1,019.7M) ($1,111.7M) Expenses $13.3M $26.4M $10.3M Transfers - * $163.7M Solutions Needed to Address Shortfall* $112.6M $42.4M $39.6M Ending Balance $40.4M $37.8M $35.0M Required Reserves (2%) $2.0M $2.0M $2.0M School Site Ending Balances $2.6M $2.6M $2.6M Stores, Prepaid, Revolving Cash $ 45.0M $ 42.4M Designated Balance $67.6M - - Reserve for Projected Shortfall *2024-25 is balanced with $93.7M in solutions reflected in the SACS report. 9 Note: Assume the full utilization of the Arts, Music, and Instructional Materials Discretionary Block Grant and the Learning Recovery Block Grant 2024-25 and 2025-26.

  10. 2024-25 Solutions* Solutions focused on four areas: Revenue/ Fund Balance Prioritizing School Sites Funding Shifts Attrition *See January 4th and February 23rd Workshops for review of solutions 10

  11. Personnel 11

  12. Certificated Reductions 648 497 234 2025-26 127 Particular Kind of Service (PKS) Non-Reelect Temp & Leave Replacement Known voluntary exits Particular Kind of Service (PKS) Non-Reelect Temp & Leave Replacement Particular Kind of Service (PKS) Anticipated number of educators who will not return in 2024-25 12

  13. Classified Reductions 370 250 123 FILLED positions eliminated Positions eliminated Known voluntary exits Positions eliminated 13

  14. Impacts of Reductions CLASSIFIED IMPACTS CERTIFICATED IMPACTS 2024-25 Position elimination may result in: 2025-26 PKS reduction may result in: Bump into a vacancy in the same classification Reassignment from one site to another in same service/credential area Bump into a formerly held classification Reassignment from one service/credential area to another (may include site change) Layoff For Classified, bump chain often impacts additional people by a factor of 3 to 5 Layoff based on credential type and seniority 14

  15. What Comes Next March 8 through March 13: Site/Department leaders personally notify impacted employees March 12: Human Resources mails layoff/bump notices to impacted employees May 15: Final layoff/reassignment notices issued High-Level Timeline Human Resources applies Board-approved tie- breaking criteria for Certificated staff Human Resources continues to monitor additional attrition through remainder of 2023-24 fiscal year Human Resources will issue notices to employees no longer affected Recall rights apply after June 30 Ongoing Attrition Monitoring 15

  16. Attrition Model Expand Strategy Plans Continued Efforts Sweep and Scrutinizing Expenses Expand Zero Based Budgeting 16

  17. Certification Status Three Different Classifications Qualified: The District may not meet its financial obligations for the current or two subsequent fiscal years Negative: The District will be unable to meet its financial obligations for the remainder of the current year or for the subsequent fiscal year Positive: The district will meet its financial obligations for the current and two subsequent fiscal years 17

  18. Recommended Board Actions Approve the Resolution to Reduce or Eliminate Certain Certificated Services and Classified Positions Resolution Approve the Fiscal Year 2023-24 Second Interim Financial Report with a Positive Certification Second Interim Based on the resolution going to the board, the District will meet its financial obligations in the current and subsequent fiscal years. This will require significant planning in order to solve the shortfall projected in 2025-26. Positive 18

  19. Thank You

Related


More Related Content

giItT1WQy@!-/#giItT1WQy@!-/#giItT1WQy@!-/#giItT1WQy@!-/#giItT1WQy@!-/#giItT1WQy@!-/#giItT1WQy@!-/#