Presentation: 5-28-2014 - West Contra Costa Unified School District

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West Contra Costa
Unified School District
May 28, 2014
2014-15
Governor’s May Revision
1
May Revision
• State Revenues are positive
– Prop 30
– Positive economic growth
• January 2014 revenue proposals for
schools – no change for the May Revision
• Local Control Funding Formula program
moves forward as planned
2
May Revision
• Revenue volatility remains a concern due
to the temporary nature of Prop 30
– Passed in 2012
– The .25% sales tax expires in 2016
– The personal income tax component expires
in 2018
• 2019-20 the State will no longer be
collecting the $7 billion in Prop 30 funds
• Historically, the economy has not been
stable over that number of years
3
May Revision
• Budget Conference Committee
Considering….
– State Teacher Retiree System Rates
– Career Technical Education Fund
– Common Core Funding
– Transitional Kindergarten
• These debates will likely result in action by
June 15th
4
May Revision
• Biggest issue – State Teacher Retirement
System (STRS)
– STRS has a large unfunded liability
– May Revise includes implementation of the
STRS funding plan in 2014-15 – a year earlier
than previously proposed
– The new implementation plan in the May
revision funds the STRS over 7 years,
January proposal was 30 years
5
STRS Multi Year Rates
May Revise STRS Rates
$25,000,000
$22,632,602
$20,736,677
$18,840,752
$16,944,827
$15,048,903
$13,152,978
11,257,053
$20,000,000
$15,000,000
$10,000,000
$9,775,862
$5,000,000
$8.25%
9.50%
11.10%
12.70%
14.30%
15.90%
17.50%
19.10%
2014-15
2014-15
2015-16
2016-17
2017-18
2018-19
2019-20
2020-21
6
May Revision
• CalPERS contribution rates for the retiree
program also scheduled to increase
CalPERS Rates
$10,000,000
$9,281,986
$9,000,000
$8,465,987
$7,649,989
$8,000,000
$7,000,000
$6,000,000
$6,003,201
$6,425,990
$5,000,000
$4,000,000
$3,000,000
$2,000,000
$1,000,000
$11.77%
12.60%
15.00%
16.60%
18.20%
2014-15
2015-16
2016-17
2017-18
2018-19
7
May Revise
Retirement System Increases
Cost Increase for Employer Contribution
2014-15
2015-16
2016-17
2017-18
2018-19
STRS
$ 1,481,191
$ 1,895,925
$ 1,895,925
$ 1,895,925
$ 1,895,925
PERS
$ 225,420
$ 422,789
$ 1,223,998
$ 815,999
$
Increase over
prior year
$ 1,706,611
$ 2,318,714
$ 3,119,923
$ 2,711,924
$ 2,711,924
$ 4,025,325
$ 7,145,248
$ 9,857,171
$ 12,569,095
Cumulative
Increase
815,999
These estimates do not reflect staffing or step and column adjustments
These rate increases will consume LCFF:
• 14% of new base funding in 2014-15
• 16% of new base funding in 2015-16
• 34% of new base funding in 2016-17
8
May Revise
• Legislature is putting forward an
alternative proposal
– Would lessen the cost slightly in 2014-15
– The concept of funding the retirement liability
remains in place
• Rate increases will be reflected in the Multi
Year Projection for the budget
9
Next Steps
May Revision of Governors Budget
May 28, 2014 Board Meeting
Preliminary Budget and Public Hearing
June 11, 2014 Board Meeting
Budget Adoption
June 25, 2014 Board Meeting
Financial reports available on the web
http://www.wccusd.net/
10
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