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Third Interim Financial Report

Third Interim Financial Report. Ramona Unified School District May 27, 2014. Why A Third Interim Report?. With the adoption of the Second Interim Report, Ramona Unified “self-qualified”

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Third Interim Financial Report

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  1. Third Interim Financial Report Ramona Unified School District May 27, 2014

  2. Why A Third Interim Report? • With the adoption of the Second Interim Report, Ramona Unified “self-qualified” • “Qualified” status means the School District is uncertain that it will be able to meet the State’s fiscal requirements • Education Code, as well as the San Diego Office of Education, requires that a school district submit a Third Interim Report

  3. Third Interim Numbers • Revenues $46,152,928 • Expenses $48,292,452 • Difference ($ 2,139,524) • Beginning Balance $ 5,992,299 (July 1, 2013) • Ending Balance $ 3,852,775 (Projected for June 30, 2014) • Fund 17, Special Reserve Fund, has a balance of $1,495,000, and houses the 3% reserve. This amount is not reflected in the above number or in the multi-year projections.

  4. Adjustments of Third Interim Report • Increases in Revenue • Additional Federal Title I dollars for Corrective Action • Planning dollars from Energy Efficiency – Proposition 39 • These revenues can only be used for the purpose of their intentions • As a reminder, staff has yet to receive any confirmation from the State on the actual revenues generated through the LCFF for the current or next fiscal year • This budget and multi-year projections may be conservative

  5. Adjustments of Third Interim Report • Expenditures • Both the additional Title I and the Proposition 39 dollars are restricted • Therefore, corresponding increases to expenses due to increases in these revenue sources are needed • This explains the bulk of the increase to expenses

  6. Multi-Year Projection

  7. Assumptions for 2014-2015 • Revenue • Current year ADA for revenues • Local Control Funding Formula at the 28% increase towards the targeted funding • One-Time revenues are not included • Expenses • 10% increase in health benefits • Honoring “Step and Column” increases • Assuming dollars budgeted in 2013-2014 are spent

  8. General Fund Commitments of the COP Payments - 2014-2015 • COP payment of $1,534,970 from the general fund is now projected • A decrease from the $1,709,632 for the second interim report • An increase in developer fees and lower expenditures than expected • Will continue to adjust as developer fees are received

  9. Assumption for 2014-2015 • Per recent Board conversation, dollars can be designated in the 2014-2015 budget for the renovation of the outside of the District Office • If the Board so desires, the bid process will need to begin with a development of scope of work, bid specs, and approval from the Board to put out to bid • Staff does not have any recommendation, but is looking for direction

  10. Governor Brown’s May Revision • The May Revision was announced on May 13 • This information is NOT incorporated into the multi-year data • State revenues are projected to be $2.4 billion higher • Medical coverage for more Californian’s and the creation of a rainy day fund for the State essentially take all of the new money off the table

  11. Governor Brown’s May Revision While the education community had hoped for more funding for Common Core and mandate payback, as well as higher LCFF funding, these additional monies are nowhere to be found No change from the January budget proposal

  12. CalSTRS The Governor proposes an additional $73.2 million of State contributions to start paying down the $74.4 billion in unfunded liability for the California State Teachers Retirement System (CalSTRS) In the proposal, an increase in contributions from both employees and employers will begin starting July 1, 2014 The employee rate would increase from 8.00% to 8.15% for next year and increases to 10.25% by 2016-2017

  13. CalSTRS For employers, the current contribution rate is 8.25% of qualifying earnings This rate will increase to 9.50% for the 2014-2015 year, and will increase every year until 2020-2021 when the rate will remain at 19.1% This increase in costs to both employees and employers comes with no increase in funding The increase in contributions is estimated to be up to a $300,000 increase for Ramona Unified

  14. What is Next • Governor’s proposal was presented three (3) days ago • Staff will garner more information at the May Revise Workshop presented by School Services of California Inc. • June 11, 2014 when staff will present to the 2014-2015 for public hearing along with the public hearing of the LCAP • Staff will continue to update the budget incorporating the May revision

  15. In Conclusion Staff is recommending the approval of the 3rd Interim Report

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