INFORMATION/DISCUSSION/ACTION

Details: Published: 21 May 2018; Hits: 1599

May 23, 2018 CUSD BOT Meeting: INFORMATION/DISCUSSION/ACTION

AGENDA ITEM #38 PRESENTATION FROM THE SCHOOL FACILITIES AND FINANCE ADVISORY COMMITTEE:

AGENDA ITEM #39 #CAPOFORWARD REIMAGINING PROJECT UPDATE

AGENDA ITEM #40 2018-2019 LOCAL CONTROL ACCOUNTABILITY PLAN UPDATE

AGENDA ITEM #41 RECOMMENDATION OF TENTATIVE AGREEMENT WITH CALIFORNIA SCHOOL EMPLOYEES ASSOCIATION (CSEA), AND ITS CAPISTRANO CHAPTER 224, FOR JULY 1, 2016 – JUNE 30, 2018

and

New Term Agreement with the duration of July 1, 2018 – June 30, 2021

Board Agenda page 1,107

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RETROACTIVE 3-year pay increase that will cost the district $3,825,200 per year.

AGENDA ITEM #30 2018-2019 PROPOSED BUDGET ADOPTION

Board Agenda page 1,134

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THIS IS AN INFORMATION DISCUSSION ITEM ONLY - NO BOARD ACTION WILL BE TAKEN

BUDGET ASSUMPTIONS

Enrollment projections 2018-19

Declining Enrollment projected loss of 848 students in 2018-19. Enrollment 47,051

Funding per ADA will be based on enrollment of 46,461.19

LCFF is proposed to be $8,796 per student and will only increase going forward by (COLA)

CUSDWatch Comment

CUSD future per pupil funding is limited to 2007-08 levels + COLA ($8,796 + COLA)

Site Supply Budget Formula

K - 5 $21 / student

6 - 8 $25 / student

9 - 12 $33 / student

Staffing Formula

K = 30.5 : 1

1 – 3 = 30:1

4-5 = 31.5 : 1

6 – 8 = 32.5 : 1 (includes prep periods and electives)

9 – 12 = 34.5 : 1 (includes prep periods and electives)

CUSDWatch Comment

These are NOT MAXIMUM class sizes!

REVENUE ASSUMPTIONS

2.51% COLA

Lottery Funds $146 per ADA. Unrestricted Lottery Funds $7 million

CUSDWatch Comment

Read The Truth About the Lottery Funds... there is not an education revenue stream that adult jobs has not stolen

EXPENDITURE ASSUMPTIONS

Step & Column

Salary

CUEA 1.5%

CSEA 2.0%

CUMA 1.5%

Teamsters 2%

PERS rates reflecting a change from a 30 year amortization policy to a 20 year amortization policy and lower returns on investments were approved by the CalPERS Board on April 17, 2018.

STRS costs are projected to increase to:

16.28% in 2018-2019, 18.13% in 2019-2020, 19.10% in 2020-2021 and future years.

CUSDWatch Comment

The State is passing increased CalSTRS and CalPERS cost down to the local school districts rather than to the State or Employees. By 2021 this cost is expected to represent 19% of CUSDs entire budget. Employee Compensation is at 89%. CUSD will be forced to deficit spend just to pay employees. AB2808 (Muratsuchi) to increase LCFF targets by $5,000 per student. While this sounds great and is needed; like Prop 30 and the Extension of Prop 30 this money will never reach the students. It will increase as needed to pay increased pension costs so that districts will not go bankrupt.

NON- SALARY EXPENDITURES

Non salary expenditures are expected to increase between 2% and 5% in 2018-19

BENEFITS

STRS 16.28 %

PERS 18.06 %

OASDI 6.200 %

Medicare 1.450 %

Workers Comp 1.500 %

Unemployment 0.050 %

OPEB – Active 0.80%

OPEB – All 0.27%

HEALTH & WELFARE BENEFITS

Health and Welfare Benefits are projected to be $46 million

LIABILITY INSURANCE

Liability insurance is expected to increase by 2% to $3 million

DEBT SERVICE AND MAJOR LEASE PAYMENTS

ENERGY BOND $1.5 million debt service

CUSDWatch Comment

CUSD will be taking $1.5 million from the General Fund to pay for CUSDs Energy Bond. Humm save $200,000 - $300,000 per year energy savings/solar projects but pay $1.5 million per year to service the debt?

EARLY RETIREMENTS

Early Retirements will cost CUSD $3.25 million per year, offset by lower paid salaries of new employees.

TEXT BOOKS

Text book funding is budgeted at $6.7 million

SUMMER SCHOOL

Summer School is budgeted at $50,000.