2016 17 First Interim Report Reflects Financial Activity

2016 -17 First Interim Report Reflects Financial Activity Through October 31, 2016 Budget as of October 31, 2016 Board must certify if the District – Will Meet(Positive) – Might Meet(Qualified) – Will Not Meet(Negative) Financial Obligations for the current and two succeeding fiscal years. WSCUHSD is presenting a Qualified First Interim Budget Report

Changes since the Adopted Budget Revenue LCFF – Decrease $95, 556 due to decrease in Gap percentage (54. 84% to 54. 18%) Federal – Increase $28, 666 due to posting of carryover. State – Increase $420, 675 due to one-time money received Local – Increase $208, 221 due to Sp. Ed reading grant, movie rental revenue, and miscellaneous increases.

Changes since the Adopted Budget Expenditures Certificated Salaries – Decrease $9, 135 Classified Salaries – Increase $2, 138 Health/Welfare Benefits – Decrease $65, 000 Books & Supplies – Increase $812, 144 due to budgeting of one-time money, Consortium reading grant, textbooks out of reserve, and school site carryover. Services – Increase $878, 663, mostly due to an accounting change in Transportation

Multi-Year Planning under LCFF Factors which will make the MYP more uncertain than in the past: Projected Gap Funding – how much is the state appropriating? Projected COLA – applied to the Target, not the current year Projected Supplemental Grant funding – what will our student population look like in the future? Increases in STRS and PERS

LCFF = More $$ - right? District who Benefit Districts with not as much Benefit High Unduplicated Pupil Count greater than 55% Low Unduplicated Pupil Count WSCUHSD 26. 1% Growing Enrollment Declining Enrollment Slow but steady decline since 2006 - ADA 2, 370 No Structural Deficit

COLA & GAP PERCENTAGES 2015 -16 2016 -17 2017 -18 2018 -19 COLA 1. 02% 0% 1. 11% 2. 42% DOF GAP % 52. 56% 54. 18% 72. 99% 40. 36% SSC GAP % 52. 56% 54. 18% 19. 30% 34. 25%

Multi-Year Funding per ADA 10200 9700 DOF Gap % 9200 SSC Gap % Median % 8700 8200 2015 -16 2016 -17 2015 -16 Gap Funding 52. 56% 2016 -17 Gap Funding 54. 18% 2017 -18 Gap Funding 72. 99% 2018 -19 Gap Funding 40. 36% 2017 -18 2018 -19 (School Services and DOF agree) (School Services 19. 30%/Median 46. 15%) (School Services 34. 25%/Median 37. 31%)

CHANGES IN LCFF & ADA 2015 -16 2016 -17 2017 -18 2018 -19 $8, 799 $9, 201 $9, 513 $9, 684 $1, 071 $402 $312 $171 Funded ADA 1975. 79 1919. 53 1874. 19 1802. 75 Decrease over PY (66. 70) (56. 26) (45. 34) (71. 44) LCFF per student Increase over PY

STRS & PERS INCREASES 2015 -16 2016 -17 2017 -18 2018 -19 STRS Employer 10. 73% 12. 58% 14. 43% 16. 28% EX: Year-to-Year Increased expense on a salary of $70, 000 $1, 295 Cumulative Increase in Expense $1, 295 $2, 590 $3, 885 $5, 180 STRS Employee 9. 2% 10. 25% EX: Year-to-Year Decrease Net Pay on a salary of $70, 000 $735 $0 $0 Cumulative Decrease in Net Pay $735 $1, 470 PERS Employer 11. 847% 13. 888% 15. 50% 17. 10%

Declining Enrollment Deficit Revenue Decline A decline of 30 ADA @ $9, 201 per ADA = ($276, 030) Expense Decline A decline of 1 FTE @ $71, 000 total comp = ($71, 000) Deficit = ($205, 030) Revenue Loss – Expense Decline

MYP Summary 2016 -17 First Interim Budget Year 2016 -17 Projected Budget Object Codes COLA (enter percentage) GAP Funding Rate (enter percentage) ADA for LCFF purposes (current or prior year) Total Revenue Expenditures Unrestricted Restricted 2017 -18 Using DOF Gap 72. 99% Total 0. 00% 1. 11% 2. 42% 54. 18% 72. 99% 40. 36% Unrestricted 1, 919. 53 Restricted 2018 -19 Using DOF Gap 40. 36% Total Unrestricted 1, 874. 19 Restricted Total 1, 802. 75 19, 064, 351 5, 206, 620 24, 270, 971 18, 894, 715 5, 227, 535 24, 122, 250 18, 517, 872 5, 248, 450 23, 766, 322 Employee Benefits - STRS contribution 3101 -3102 886, 126 253, 943 1, 140, 069 994, 142 335, 779 1, 329, 921 1, 103, 508 382, 616 1, 486, 124 Employee Beneftis - PERS contribution 3201 -3202 218, 977 154, 855 373, 832 264, 426 146, 241 410, 667 294, 639 162, 951 457, 589 16, 898, 598 8, 567, 909 25, 466, 507 15, 601, 236 8, 758, 351 24, 359, 587 15, 517, 978 8, 948, 279 24, 466, 257 Total Expenditures Excess (Deficiency) 2, 165, 753 (3, 361, 290) (1, 195, 537) 3, 293, 479 (3, 530, 816) (237, 338) 2, 999, 894 (3, 699, 829) (699, 935) Total Transfers/Other Uses (3, 284, 532) 3, 263, 465 (21, 067) (3, 348, 465) 3, 263, 465 (85, 000) (1, 118, 780) (97, 824) (1, 216, 604) (54, 987) (267, 351) (322, 338) (348, 571) (436, 364) (784, 935) Net Increase (Decrease) Fund Balance Beginning Balance 2, 982, 009 1, 079, 914 4, 061, 923 1, 863, 229 982, 090 2, 845, 319 1, 808, 242 714, 739 2, 522, 982 Audit Adjustment(s) - Net Ending Balance 1, 863, 229 982, 090 2, 845, 319 1, 808, 242 714, 739 2, 522, 982 1, 459, 671 278, 375 1, 738, 046 Components of Ending Balance: Reserves for Economic Uncertainties 9789 766, 577 735, 288 738, 488 Revolving Cash 9711 6, 850 6, 850 Prepaid Expenses 9713 - Assigned for Math III Textbook Purchases 9780 53, 500 53, 500 Assigned for Science Textbook Purchase 9780 360, 000 360, 000 Assigned for unspent carryover - school site 9780 150, 000 150, 000 Assigned for difference in mid. Gap to DOF Gap 9780 - 198, 613 143, 229 Assigned for deferred maintenance 9780 - Assigned for tech. hardware replacement 9780 90, 000 - Restricted Ending Balance 9740 982, 090 714, 739 278, 375 Unappropriated Ending Balance 9790 436, 302 - 436, 302 303, 992 7, 604 1, 863, 229 982, 090 2, 845, 319 1, 808, 242 714, 739 2, 522, 982 1, 459, 671 278, 375 1, 738, 046 Net Ending Balance

Deficit Spending 2014 -15: $689, 478 in deficit spending 2015 -16: $1, 134, 867 positive, primarily due to one-time money received but not spent in 15 -16, Mandated Cost money, and Educator Effectiveness money. 2016 -17: $1, 216, 604 in deficit spending (projected) 2017 -18: $322, 338 in deficit spending (projected). $772, 338 in deficit spending if $450, 000 in reductions are not made. 2018 -19: $784, 935 in deficit spending (projected). $1, 488, 424 in deficit spending if $703, 489 in reductions are not made.

Deficit Spending Ending fund balance for all three years of projection remains positive – above the 3% minimum reserve – if reductions of recommend amounts are implemented. Reserve levels decrease as a result of deficit spending, and should be considered one-time money. Reducing or eliminating deficit spending is paramount to remaining fiscally stable.

Next Steps Continue to be mindful about enrollment projections and expenditure increases. Only use one-time funds for one-time purposes Update MYP revenue projections with information from the Governor’s January Budget Proposal Complete negotiations with Bargaining Units Begin work on Second Interim updates

Questions? Administration requests approval of the 2015 -16 Second Interim Report with a Qualified certification.