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May 23, 2018 CUSD BOT Meeting Agenda Item #42 2018-19 PROPOSED BUDGET ADOPTIONS

Board Agenda page 1134

ADULT JOBS not EDUCATING STUDENTS

 

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 and are as follows:

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.