AMPS Board Financial Update KELLY ELLIS AIDAN BARRYOWEN

AMPS Board Financial Update KELLY ELLIS AIDAN BARRY-OWEN APRIL 22, 2020

Contents 1. FY 2019 -20 March Forecast Update A. ADA Updates B. Updated Annual Forecast C. Updated Cash Flow Forecast 2. COVID-19 Updates 3. FY 2020 -21 Budget Draft v 1 A. Budget Development B. ADA Assumptions C. Major Revenue Updates D. Major Expense Updates E. Budget Comparison 4. FY 2020 -21 Without John Henry A. Outlook if Denied by State B. Budget Comparison C. FY 2020 -21 Outlook 2 2

FY 2019 -20 March Financial Update

P-2 ADA Update 4 4 P-2 ADA not yet official for Richmond sites Sites Jan Forecast (P-2 Est. ) Current Forecast (P-2 Est. ) Difference BJE 458. 7 455. 9 (2. 8) DCA 320. 6 320. 4 (0. 2) JHHS 302. 0 301. 1 (0. 9) OCA 242. 1 239. 4 (2. 7) OCHS 447. 4 444. 3 (3. 1) RCA 250. 8 248. 8 (2. 0) 2, 021. 6 2, 009. 7 (11. 9) AMPS Total

P-2 ADA Update 5 5 Month 6 – 7 ADA not yet official 2060 2, 043 2040 2, 034 2, 029 2020 2000 1, 999 1, 995 1980 1, 968 1960 M 1 M 2 M 3 Jan M 4 Current M 5 Monthly ADA M 6 M 7

2019 -20 March Forecast Update Forecasted income decreased to (112 k) due largely to loss of the Federal Expansion Grant 6 6

Thousands 2019 -20 Monthly Cash Balance Projection 7 7 $3, 000 $2, 500 $2, 000 $1, 500 $1, 000 $500 $0 Jul Aug Sep Oct Nov Dec Jan Feb Mar Cash Balance - Actual Cash Balance - Forecast 1 Months Payroll 1 Months Expense Apr May Jun Chance of $2. 8 M PPP Loan could significantly help but need to conserve cash now still to help with next year cash flow

COVID-19 Updates

Other Impacts of Senate Bill 117 and Exec Order N-33 -20 Partial suspension of Brown Act provisions Essential staff permitted to work on site; schools should support remote work as much as possible Timeline extension/cancellation for EL, CAASPP, SPED, PE Public lottery should be held by livestream and recorded One-time funding available for PPE equipment, cleaning supplies, labor 9 9

Coronavirus Aid, Relief & Economic Security (CARES) Act $13. 28 billion for K 12 Can be used for broad purposes Application to be created, State to apply CARE S Act Formula allocation based on Title I Up to Governor whether to include LEAs with no Title I 10 10

Current Rocky Landscape Timing and amount of CARES Act revenue Unknown length of crisis & economic impact 11 11 June: Workload budget, formality State reliance on tax income August: State Budget Revision July 15: Tax deadline

What Now? 12 12 Multi Track Budgeting Build at least two budget scenarios: Using -5% as the base case Cash Position Current cash position is important (maintain & improve) Possibility of Deferrals How does cash hold up with deferrals in any budgeting scenario? Explore Working Capital Prepare for cash management solutions, range of options

Flashback to 2010 -11 Deferrals 5 months with 0% paid & 36% of State Aid disbursed after the fiscal year 13 13

FY 2020 -21 Budget Draft v 1

Budget Development 15 15 Process begins in late winter/early spring with budget approval by June 30 Revisions January Board approval Board Update & First Draft Assumption development February/M arch Initial State Budget is passed Final Revisions April/May June Board Meeting June

ADA Assumptions 16 16 Current forecast assumes similar ADA assumptions to current FY Sites 2019 -20 P-2 2020 -21 Budget Difference Total Enrollment 2, 099 2, 107 8 Avg. Attendance 95. 7% - UPP 83% 83. 5% 0. 5% ADA 2, 010 2, 017 7

Major Revenue Assumptions 17 17 Revenue Description / Notes FY 20 LCFF Originally, State was projecting a 2. 29% increase, now most likely scenario is a 5% drop due to COVID-19 $10, 794/ ADA $10, 241/ ADA CARES Revenue Additional Federal revenue due to COVID -19 - $476 K CSI Grant AMPS will not receive this next FY $125 K - SB 740 Proration increased from 95% to 85% of lease costs $2. 35 M $2. 29 M Local Revenue/Grants Includes mostly misc. one time grants, uniforms and other local sales and E-rate (~144 k) is only for FY 20 $590 K $113 K Total Variance FY 21 ($1. 29 M)

Major Expense Assumptions Expense Description / Notes Compensation & Benefits Numerous factors at play, but only amounts to ~1% increase. Includes 2% increase for staff. ELD Curriculum 18 18 FY 20 FY 21 $14. 9 M $15. 1 M Spending 20 k per site for new curriculum - $120 K COVID-19 Made reductions due to school closures that don’t apply to next FY; including travel, utilities, substitutes, etc. ($377 K) - Rent Assumes 3% growth $ 4. 7 M $ 4. 8 M Custodians Moving custodian contractors to payroll due to AB-5, does not create savings, just shifts costs $164 K - Prior Year Write Offs of accruals from prior years, partly offset by associated revenue $456 K - Total Variance +106 K

Budget Comparison Does not include likely adjustment to FY 20 Beginning Fund balance of - 19 19

FY 2020 -21 Without John Henry

Outlook If Denied by State Assuming worse case scenario, with no revenue and full facilities costs Revenue Will not receive any revenue for JHHS Will still have to pay some expenses, most significantly; rent and CAM fees Expenses Facilities Assuming JHHS will still be bearing the full facilities costs, meaning no subtenant is found for FY 21 21 21

Budget Comparison 22 22

FY 2020 -21 Outlook 23 23 Accomplishments § First draft of the FY 21 budget complete § PPP application submitted Next Steps § Look into negotiating lowered lease and CAM fees § Review staffing § Review expenses for savings § Look for ways to increase revenues Goals & Horizon Issues § Balance the second draft of the FY 21 budget § COVID-19 creating a lot of uncertainty, especially with operations and State funding § Continue to contingency plan based off unknown of JHHS

Thank You