Palm Springs Unified School District
2014/15 First Interim Report
As of October 31, 2014
2014/2015 First Interim Report
 Purpose
 School
of the Interim Report:
districts are required to certify their financial
position twice during each fiscal year. The certification
addresses a district’s ability to meet its financial obligations
for the current and two subsequent fiscal years.
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2014/2015 First Interim Report
 Certifications
 “Positive
include the following options:
Certification” – will be able to meet financial
obligations
 “Qualified Certification” – uncertainty around ability to
meet obligations
 “Negative Certification” – will not be able to meet financial
obligations
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2014/2015 First Interim Report
 Local
Control Funding Formula (LCFF)
 Provides
for a Base Grant for all students
 Provides a Supplemental Grant based on English
Language Learners (ELL), Free and Reduced Priced Meal
(FRPM) eligible students, and foster youth unduplicated
count
 Provides a Concentration Grant based on ELL, FRPM, and
foster youth unduplicated count students above 55% of the
District-wide enrollment
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2014/2015 First Interim Report
 Local
Control Funding Formula (LCFF)
 Districts
are required to develop and monitor the
implementation of a Local Control Accountability Plan
(LCAP) that aligns the academic plan with the District
expenditure plan
 LCFF targeted funding is phased in over 8 years through
fiscal year 2020/21
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2014/2015 First Interim Report

Local Control Funding Formula (LCFF)
 Cautions





Categoricals programs rolled into LCFF must still be addressed
Considerations

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



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Future LCFF funding levels not guaranteed
Implementation over the next seven (7) year period creates uncertainty of funding
Class Size Reduction tied to the funding – 8 year implementation
Class size reduction
Declining enrollment
Implementation of LCAP
Bargaining unit compensation
Educational goals/programs
Utility costs
Impact of the sunset of the Education Protection Account Starting 2016/2017
Textbook adoptions starting in 2015/2016
Routine repair and general maintenance increased to 3% from ~1% (1.7M) starting
2015/2016
STRS/PERS employer contributions increased through 2020/2021…
2014/2015 First Interim Report
Restricted and Unrestricted (Combined)
1st Interim
FY 2014/2015
Projected
FY 2015/2016
Projected
FY 2016/2017
Revenues
$209,857,517
$218,643,055
$232,452,812
Expenditures
$231,242,764
$218,897,709
$224,228,438
Excess/(Deficiency)
($21,385,247)
($254,654)
$8,224,384
Transfers In
$9,427,223
$3,959,215
$3,975,484
Transfers Out
$1,123,475
$1,123,475
$1,123,475
Net Increase(Decrease)
($13,081,499)
$2,581,086
$11,076,393
Beginning Fund Balance
$26,118,313
$13,036,814
$15,617,899
$13,036,814
$15,617,899
$26,694,293
Ending Fund Balance
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2014/2015 First Interim Report
Restricted and Unrestricted (Combined)
Components of the Ending Fund Balance:
1st Interim
Projected
FY 2014/2015 FY 2015/2016
Projected
FY 2016/2017
Revolving Cash
$100,000
$100,000
$100,000
Stores
$170,000
$170,000
$170,000
Legally Restricted
$774,640
$32,456
$69,914
$6,970,897
$5,667,897
$5,638,992
Legally Restricted 3% Reserve
Unassigned- Lottery, Unrestricted
$2,653
Assigned- Designated Carryover
$7,500
Unassigned- Unrestricted
$2,744,627
Assigned LCAP Reserve Per MPP
$2,266,406
Year 2 LCAP Increase
-
- 2.58%
2.5%
-
-
-
$4,329,232
$11,461,903
$5,318,314
$5,318,314
Year 3 LCAP Increase
Ending Fund Balance
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$3,935,169
$13,036,814
$15,617,899
$26,694,293
2014/2015 First Interim Report
Unrestricted
1st Interim
FY 2014/2015
Projected
FY 2015/2016
Projected
FY 2016/2017
Revenues
$174,758,966
$187,047,613
$200,666,826
Expenditures
$172,249,336
$168,576,876
$173,711,418
Excess/(Deficiency)
$2,509,630
$18,470,737
$26,955,407
Transfers In
$7,292,223
$1,814,798
$1,822,411
Transfers Out
$1,123,475
$1,123,475
$1,123,475
Contributions
($14,992,803)
($15,838,790)
($16,615,408)
Net Increase(Decrease)
($6,314,425)
$3,323,270
$11,038,935
Beginning Fund Balance
$18,576,598
$12,262,173
$15,585,443
$12,262,173
$15,585,443
$26,624,378
Ending Fund Balance
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2014/2015 First Interim Report
Unrestricted
Components of the Ending Fund Balance:
1st Interim
FY 2014/2015
Projected
FY 2015/2016
Projected
FY 2016/2017
Revolving Cash
$100,000
$100,000
$100,000
Stores
$170,000
$170,000
$170,000
$6,970,987
$5,667,897
$5,658,992
Legally Restricted
Legally Restricted 3% Reserve
Unassigned- Lottery, Unrestricted
$2,653
Assigned- Designated Carryover
$7,500
Unassigned- Unrestricted
$2,744,627
Assigned LCAP Reserve Per MPP
$2,266,406
Year 2 LCAP Increase
2.58%
$4,329,232
$11,461,903
$5,318,314
$5,318,314
Year 3 LCAP Increase
Ending Fund Balance
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2.5%
$3,935,169
$12,262,173
$15,585,443
$26,624,378
2014/2015 First Interim Report
 Local
Control Funding Formula (LCFF)
Expenditures (% of General Fund)
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2014/2015 First Interim Report
 Local
Control Funding Formula (LCFF)
Salary and Benefit Expenditures (% of General Fund)
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2014/2015 First Interim Report
 Local
Control Funding Formula (LCFF)
Employer Retirement Expenditures (% of General Fund)
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2014/2015 First Interim Report
 Local
Control Funding Formula (LCFF)
As a % of General Fund
Expenditures, pension
obligations increase
from 5.61% in 20142015 to 11.28% in
2020-2021
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2014/2015 First Interim Report
 CONCLUSIONS
 The
District can meet it financial obligations for the current
fiscal year, and the two following fiscal years using Fund 17.
 It is recommended the Board approve the 1st Interim
Report with a Positive Certification.
 The LCFF financing model has brought about major changes
to how we are financed. Uncertainty of the level of funding
as well as the other concerns previously discussed will
influence our decision-making moving forward over the next
2 ½ years.
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