Plumas Lake Elementary School District
2013-14 Second Interim Presentation
March 12, 2014
Financial Reporting Cycle
Budget
development
is a
continuous
process
• Annual financial reporting:
• Budget Adoption – Due July 1, 2013
• First Interim – Due December 16, 2013
• Second Interim – Due March 17, 2014
• Unaudited Actuals – Due September 15, 2014
• Budget is developed based on assumptions in June;
• Assumptions are usually based on the information in the May Revise
• Assumptions change during the year and we are required to file two interim reports during the
year:
• First Interim – Due December 16, 2013
• Second Interim – Due March 17, 2014
• Budget Timeline:
• Governor released his Budget Proposal for 2013-14 in January
• Governor released the May Revise in May, which is based on updated revenue and expenditure
data
• Legislature met its constitutional deadline and passed the 2013-14 budget and trailer bills on
June 15
• Local Control Funding Formula -Changes how schools receive State Aid
• Every district has a unique target base grant that will restore funding to 2007-08 funding
levels by full implementation
• Districts will move toward the target each year
• Governor signed budget bill in June
Local Control Funding Formula
• Local Control Funding Formula (LCFF) begins in 2013-14
• Department of Finance estimates that achieving full funding levels under the LCFF
will take eight years
• Funding based on the demographic profile of the students in the District
• Goal is to simplify how state funding is provided
• Local Control and Accountability Plan (LCAP) is an important component of LCFF
• District will be required to develop, adopt, and annually update a three year LCAP,
beginning in July 1, 2014
• California Department of Education (CDE) making system changes to
implement the new formula and does not expect to have those completed
until July 2014
Local Control Funding Formula
• Local Control Funding Formula (LCFF) has replaced revenue limits and works as
follows:
• “Target Funding “level will be calculated every year
•
•
•
Districts will receive a base grant amount based on grade-level
Adjustments will be made for class size reduction (grade span)
Districts will receive supplemental funding based on percentage of low income, English learners and
students in foster youth
• Economic Recovery Target (ERT) is the difference between what the District would have
received under the old funding and the amount the District would receive under the LCFF in
2020-21 (with COLA adjustments)
• “Funding Floor” will be calculated based on 2012-13 Funding Level
• Percentage of the “Gap” between the Target and Floor will be funded
• Categoricals are now a part of the LCFF with the exception of the following:
• Transportation (add-on and can be used for any educational purpose)
• Targeted Instructional Improvement Grant (TIIG) (add-on and can be used for any educational
purpose)
• Special Ed
• Child Nutrition
Second Interim Budget
Assumptions
Budget
Development
First Interim
Second Interim
COLA
1.565%
1.57%
1.57%
Deficit Factor
18.997%
11.78%
11.78%
GAP Funding Rate
State Categorical Programs
COLA
0
0
0
Federal COLA
0
0
0
Average Daily Attendance
1056.68
District: 1050.5
County: 6.68
1094.83
1112.84
Unduplicated percentage
(English Learners, Foster
Youth, and Free & Reduced
Price Meals)
District: 1090
County: 4.84
39.72%
District: 1108
County: 4.84
39.72%
Second Interim Budget
Assumptions
• Proposition 39 approved by voters on November 6, 2012
provided:
• The Schools and Local Public Safety Protection Act of 2012 provides
funding through the Education Protection Account (EPA)
• Not additional funding, State Aid is decreased by this amount
• District will receive $1,179,455 in funding, which will be used for
teachers’ salaries
• California Clean Energy Jobs Act
• Funding for clean energy projects – funded for five years
• District will receive$106,252 in 2013-14 and in subsequent years
• Common Core State Standards Implementation (CCSSI) Funds –
District received $216,437 in one-time funding
Budget Revisions
• Board requested budget revisions:
•
•
•
•
Riverside Meadows – added $10,000 for upgrades
Breakfast - $3,000 for free breakfast during testing
Infrastructure – Wi-Fi Nodes $5,000
Update District Web site - $5,000
2013-14 Revenue Sources
Revenue
Source
2013-14
Budget
Development
2013-14 Budget
First Interim (FI)
2013-14 Budget
Second Interim
(SI)
Changes
(SI –FI)
Notes
Revenue
Limit Sources
$6,529,561
7,441,642
$7,629,666
$188,024
LCFF Changes
due to
ADA Changes
Federal
Revenue
$277,734
$365,256
$369,770
$4,514
Impact Aid
Other State
Revenue
$1,047,997
$598,640
$602,742
$4,102
Lottery
Other Local
Revenue
$491,348
$444,853
$445,468
$615
Local revenue
Interfund
Transfers In
$23,000
$23,000
$23,000
Total
Revenue
$8,369,640
$8,873,391
$9,070,646
From Fund 52
for CFD Admin
costs
$197,255
2013-14 Expenditures
2013-14
Budget
Adoption
2013-14
Budget First
Interim (FI)
2013-14
Budget
Second
Interim (SI)
Changes
(SI – FI)
Notes
Certificated Staff
$3,887,597
$3,966,261
$3,962,758
($3,503)
Adjusted teachers’ salaries
Classified Salaries
$1,396,056
$1,409,719
$1,385,031
($24,688)
Adjusted para salaries
Employee Benefits
$1,593,126
$1,587,822
$1,558,017
($29,805)
Adjusted statutory benefits and
Health, Dental & Vision
Books and
Supplies
$337,067
$557,670
$462,356
($95,314)
Added $5K for Wi-Fi nodes,
decreased Common Core
technology expenditures
Services/Op
Expenses
$1,014,091
$1,114,966
$1,121,518
$6,552
Adjusted inter-fund direct costs
(Fund 13)
Capital Outlay
$0
$90,315
$90,315
Other Outgo
$268,852
$301,896
$302,035
$139
County transfer for SPED
Transfers of
Indirect
($12,486)
($12,524)
($12,792)
($268)
Indirect Fund 13
Interfund Transfers
Out
$38,711
$70,680
$70,906
$226
Adjusted transfer to Fund 13
Total Expenditures
$8,523,014
$9,086,805
$8,940,144
($146,661)
Clean energy $
General Fund Summary
Category
2013-14
Budget
Development
2013-14
Budget First
Interim
2013-14 Budget Second
Interim
Beginning Balance
$2,856,956
$2,856,956
$2,856,956
Revenue
$8,369,640
$8,873,391
$9,070,646
Expenditures
$8,523,014
$9,086,805
$8,940,144
Net Increase/Decrease
($153,374)
($213,414)
$130,502
Ending Fund Balance
$2,703,582
$2,643,542
$2,987,458
$454,340
$447,007
Revolving Cash $5,100
$5,100
$5,100
Restricted Funds $70,388
$29,500
$157,125
CCSSI - $124,700
$410,188
$410,188
$1,744,414
$1,968,039
Economic Uncertainty $425,001
Committed - COP Debt Service $410,188
Local Control Funding Formula $193,700
Impact
Available for budget shortfalls $1,599,205
Multi-Year Projections (MYP) Budget Assumptions
2013-14 Budget Second
Interim
2014-15
Projection
2015-16
Projection
Statutory COLA
1.565%
1.87% 0.86%
1.99% 2.12%
Gap Funding
11.78%
16.49% 28.05%
18.69% 33.95%
Average Daily Attendance
(ADA)
K-8 District
County Special Ed
1090 1108
4.84
1090 1108
4.84
1090 1108
4.84
California CPI
2.3% 2.2%
2.5% 2.4%
COLA State Categoricals
1.80% 0.86%
2.3% 2.2%
Federal COLA
0
0
0
Common Core State Standards
Implementation Funds
Revenue: $216,437
Expenditures: $91,737
Revenue: 0
Expenditures: $124,700
N/A
Prop 39 Clean Energy Jobs Act
$106,252
$106,252
$106,252
Multi-Year Projections
• Multi-year projections are based on the Governor’s Budget
released in January
• Governor will revise his budget in May
• May revise projections will be used to develop budget for the
2014-15 school year
• Step increases included for all eligible employees
• No changes to Health, Dental, and Vision
Multi-Year Projections – Second Interim
2013-14 Projection
2014-15 Projection
2015-16 Projection
Beginning Fund Balance
$2,856,956
$2,987,458
$3,138,649
Revenue
$9,070,646
$9,269,365
$9,750,198
Expenditures
$8,940,144
$9,118,174
$9,154,231
Net Increase (Decrease) in Fund
Balance
$130,502
$151,191
$595,967
Ending Fund Balance
$2,987,458
$3,138,649
$3,734,616
Revolving Fund & Restricted $157,125
(CCSSI - $124,700)
$32,423
$32,423
Reserved for Economic Uncertainty
$447,007
$455,909
$457,712
Certificates of Participation Debt
Service
$410,188
$409,563
$408,788
Available for Budget Shortfalls
$1,968,039
$2,235,654
$2,830,593
Cash
• Deferrals are still in the budget, cash is monitored every month
• State Budget included funding to buy back most deferrals
• Remaining Deferrals:
• April - 38% of the apportionment deferred to July
• May – 97% of the apportionment deferred to July
• June – 100% of the apportionment deferred to July
• Education Protection Account (EPA) –approximately 20 percent of
our State Aid that will be paid on a quarterly basis
Fund 13 - Cafeteria Fund
Category
2013-14
Budget
Development
2013-14
Budget
First
Interim (FI)
2013-14
Budget
Second
Interim (SI)
Beginning Balance
$500
$500
$500
Audit Adjustment
Changes
(SI – FI)
Notes
($944)
Revenue
$427,512
$427,512
$427,515
Transfer In
$38,711
$38,471
$38,697
$226
Contribution
from General
Fund
Expenditures
$466,223
$465,983
$465,765
($218)
Adjusted
Salaries and
Direct costs
Net Increase
(Decrease) in Fund
Balance
$0
$0
$444
Ending Balance
$500
$500
$500
Fund 14 - Deferred Maintenance
Category
2013-14 Budget 2013-14
Development
Budget First
Interim
2013-14 Budget
Second Interim
Beginning Balance
$86,098
$86,098
$86,098
Revenue
$34,482
$1,100
$1,100
Transfers In (From
General Fund)
0
$32,209
$32,209
Expenditures
$35,000
$35,000
$35,000
Net Increase
(Decrease) in Fund
Balance
($518)
(1,691)
(1,691)
Ending Fund
Balance
$85,580
$84,407
$84,407
Change
Notes
-
Fund 25 – Capital Facilities Fund
Category
2013-14
Budget
Development
2013-14
Budget First
Interim
2013-14 Budget
Second Interim
Beginning Balance
$883,784
$883,784
$883,784
Revenue
$59,445
$60,945
$67,314
Transfers In
$526,035
$526,035
$526,035
Expenditures
$585,480
$1,412,407
$1,412,407
Net Increase
(Decrease) in Fund
Balance
$0
($825,427)
($819,058)
Ending Fund
Balance
$883,784
$58,357
$64,726
Cash with fiscal
agent
$6,512
$1.62
1.62
Cash with county
$877,273
$58,355
$64,724
Change
Notes
$6,369
Developer
Fees
From Fund 52
Fund 52 – Debt Service Fund for Blended
Component Units
Category
2013-14 Budget
Development
2013-14
Budget First
Interim
2013-14 Budget
First Interim
Beginning Balance
$1,175,302
$1,175,302
$1,175,302
Revenue
$681,572
$681,752
$681,752
Expenditures
$397,392
$397,392
$397,392
Interfund Transfers
Out
$549,035
$549,035
$549,035
Net Increase
(Decrease)
($264,855)
($264,855)
($264,855)
Ending Fund Balance
$910,447
$910,447
$910,447
Cash w/ fiscal agent
$402,714
$402,714
$402,695
Assigned – Debt
Service
$507,733
$507,733
$507,752
Change
Note
Summary and Recommendation
• Second Interim projections show an operating surplus of
$132,466 in the General Fund for the current year
• Based on multi-year projections and current assumptions staff
recommend the Board approve Second Interim with a positive
certification and the budget adjustments within
Any questions?