Encinitas Union School District

1
Encinitas Union School District

• 2007-08 Proposed Budget

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Overview of the2007-08 Budget
1-1

• The May Revision represents the Governors final
  recommended Budget
• Revenues, which have been volatile, are up to
  projections
• Budget gap is slightly higher than January level,
  but not significantly 1.8 billion vs. 2.5
  billion
• As in January, there are no major cuts to
  education
• Major elements of the May Revision for K-12
  Education
• Increased cost-of-living adjustment (COLA)
  fully funded
• Some new categorical programs
• No additional equalization
• Future mandates still not funded
• No softer landing for declining enrollment
• Some issues on the non 98 side of the Budget
• This is a maintenance of effort year, not a
  year for great gains

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January vs. May Proposals
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May Revision The Big News

• Good news
• Increased COLA funded
• More money for career-technical education,
  nutrition, teacher preparation, preschool, and
  school safety
• No current-year cuts
• Some new categorical programs
• Transportation shift modified
• Bad news
• LAOs claimed budget error
• Mandates still not funded
• Budget-year deficits in hourly programs not
  funded
• No additional equalization
• Still have bifurcated special education COLA
• Child care shift still proposed
• No funding for declining enrollment relief

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Budget Year Program Proposals

• Themes for new programs
• School Safety
• Teacher Quality
• Career-Technical Education
• Supplemental Instruction
• Nutrition
• Pre-Kindergarten
• Information and Technology
• And county offices of education play a major role
  in the delivery of the new program proposals

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Budget Year Program Proposals

• And a few new programs (all one-time funding)
  proposed in January remain
• CBO Training
• Charter School Facility Loans
• CAHSEE Supplemental Materials
• Partnerships for Success
• Program Improvement Management
• Low-Performing School Block Grant
• National Forest Area School Loans

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4.53 Statutory COLA
3-5

• Proposed 2007-08 statutory COLA is 4.53
• 4.53 COLA applies to revenue limits, special
  education, and virtually all state categorical
  programs

For special education, only the state and local
share of funding receives the COLA
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K-12 Revenue Limits
3-6

• No Revenue Limit deficit
• No K-12 equalization aid
• No changes to Declining Enrollment Adjustment.

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Charter Schools
3-17

• Estimated 2007-2008 funding rates for charter
  schools are
• General purpose rates are based on statewide
  average revenue limits
• Rates reflect COLA, and other changes and will
  fluctuate
• Categorical rate was increased to 500 per ADA in
  2007-08 by AB 740 this rate will not change,
  but could be subject to a deficit
• The categorical rate grows by COLA only starting
  2008-09

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Special Education
3-18

• No COLA on Federal Local Assistance of Special
  Education. This will actually reduce the funding
  for Special Education from estimated 4.53 to
  3.3
• State aid
• 4.53 COLA and growth funded but only on
  state/local share of special education funding
• COLA is estimated 20.17 per ADA
• Growth is estimated 465.43 per unit of growth
  ADA
• Estimated 5.22 per SELPA ADA for Mental Health
  Pre-referral
• Funding of growth and COLA for the Out-of-Home
  Care Funding Model

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2007-08 Home-To-School Transportation
3-23

• The January Budget proposed a manipulation of
  Proposition 98 to free up General Fund resources
  for non-Proposition 98 programs
• Home-to-School Transportation (HTST) would have
  been funded from the Public Transportation
  Account (PTA) rather than the General Fund
• Proposition 98 guarantee would have been
  re-benched down by 627 million, thus freeing up
  an equivalent amount for other state programs
• The May Revision withdraws this proposal
• HTST will be funded within the guarantee with no
  re-benching
• The Governor, nevertheless, proposed to use PTA
  funds to reimburse the General Fund for HTST
  costs in both the current year (200 million) and
  budget year (269 million)
• This may be prohibited by law

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Deferred Maintenance
3-44

• The May Revise continues full funding of Deferred
  Maintenance in 2007-08 277 million
• Districts should plan to contribute the full
  match one-half of one percent of total General
  Fund expenditures
• Remember, the .5 Deferred Maintenance match
  counts toward the 3 Routine Restricted
  Maintenance requirement
• Full funding, as in past years, means that up to
  10 of the state appropriation will be held by
  the SAB for emergency projects and the remaining
  90 will be distributed to districts
• Because the SAB usually spends less than the
  allowed percentage on emergency projects, full
  funding usually results in a distribution of92
  to 95

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Federal Programs 2007-08
3-52

• Overall, the federal funding level decreases from
  2006-07 to 2007-08
• Some programs will stay the same, while others
  shrink
• 5.44 decrease for Title I, Part A
• 1.02 decrease for Title II, Part A
• 6.7 decrease for Title II, Part D (Enhancing
  Education Through Technology
• 1.26 increase for Title III - LEP
• No Change for Title IV (Safe and drug Free
  Schools)
• .80 increase for Title V

Caution The slow growth and contraction of
federal programs combined with a healthy COLA for
state programs can lead to unintentional
encroachment especially when the primary
expenditures are for personnel
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Federal Programs Future Outlook
3-55

• Some programs may go away in future years
• Even Start (effective 2008-09)
• Title IV Safe and Drug-Free Schools (effective
  2008-09)
• Title II Education Technology (effective
  2008-09)
• Vocational Education (effective 2008-09)

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Budget Assumptions for 2007-08
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2007-08 Budget Assumptions
4-2
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2007-08 Budget Assumptions
4-2
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2007-08 Budget Assumptions
4-5

• Annual Property Liability Premium of 280,000
• Total Regular Ed. FTE budgeted is 248 (based on
  5,546 students)
• Step and Column is budgeted for Certificated and
  Classified employees
• No salary increases included for any bargaining
  units
• Staffing _at_ 201 for K-3 and 301 for 4-6
• Maintain retiree benefits as they now exist
• Employer Labor Related Costs
• STRS 8.25
• PERS 9.308
• Social Security 6.20
• Medicare 1.45
• SUI 0.05
• Workers Comp. 2.318
• Health Welfare 9,192

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2007-08 Budget Assumptions
4-5

• Utilities Increase of 15
• Funding of 32,000 for safety monitor positions
• Transfer of 250,700 toward state match for the
  Deferred Maintenance Program
• Site allocation of 31 per prior year CBEDS
  enrollment (will be adjusted at 2007-08 CBEDS)
• 10 days of teacher sick leave per FTE
• Custodial supplies of 265 per classroom
• Routine Restricted Maintenance to be funded at 3
  of total General Fund expenditures
• Transportation expense of 464,276

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Average Daily Attendance
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Unrestricted General
Fund Revenues, Expenditures, and Changes in Fund
Balance June 30, 2007
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Unrestricted General Fund
Revenues
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Unrestricted General Fund
Expenditures
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Unrestricted General Fund Analysis of Ending Fund
Balances June 30, 2007
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Restricted General
Fund Revenues, Expenditures, and Changes in Fund
Balance June 30, 2007
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Restricted General Fund Revenues
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Restricted General Fund
Expenditures
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General Fund Expenditures(Unrestricted
Restricted)
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District Expenditures by
Function
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Child Nutrition Fund June 30, 2007
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Deferred Maintenance Fund June 30, 2007
32
Special Reserve-Non Capital Fund June 30, 2007
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Special Reserve Fund For Post Employment
Benefits June 30, 2007
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Building Fund June 30, 2007
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Capital Facilities Fund 25-18 June 30, 2006
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Capital Facilities Fund 25-19 June 30, 2007
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Special Reserve-Capital Outlay Fund June 30,
2007
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Paul Ecke Central Trust Fund June 30, 2007