Public Hearing for The Budget Adoption 2014-2015

1. Public Hearing for The Budget Adoption 2014-2015 Ramona Unified School District June 11, 2014

2. Opening Comments The 2014-2015 July 1 budget is the beginning of a journey which ends over a year from now. It starts with assumptions that can change throughout the year. Some examples are: • The final State of California Budget adoption and changes from current law • The actual enrollment in August • The number of sections taught at the high school and the number of elementary classrooms needed • The dollars from school sites not spent in the 2013-2014 year which need to be accounted for • The State certification of the LCFF formula • The actual cost of increases in health benefits • Other assumptions may also change Other assumptions may also change

3. 2014-2015 RUSD Projection • Revenues $47,342,102 • Expenses $50,151,721 • Difference (structural imbalance) ($ 2,809,619) • Projected Beginning Balance $ 4,008,900 (July 1, 2014) • Ending Balance $ 1,199,281 (Projected for June 30, 2015) • Fund 17, Special Reserve Fund, houses the 3% reserve -- or $1,504,552 -- which is not reflected in the above number or in the multi-year projections

4. Assumptions for Revenues • Revenues are based on Governor Brown’s May Revision to his proposed State Budget • Local Control Funding Formula is funded to receive 28% of revenues to meet the targeted funding level • COLA to the target and the revenues are included (0.85%) • Current Year ADA for revenue • Any one-time revenues are removed • Does not include any revenues due to discussion in Sacramento between competing interests (such as additional dollars to common core, transportation, or to the LCFF itself)

5. Assumptions for Expenses 10% increase in health benefits Step and column increases Ramona Teachers Association tentative agreement Additional two teachers to meet class size requirements Budget for the possible purchase of new Math textbooks Increased cost of fuel, electricity, and water A payment of $1,534,970 towards the COP is incorporated into the expense budget CALStrs increase based upon the May Revision Assuming dollars budgeted in 2013-2014 are spent

6. Multi-Year Projections2014-2015 Budget

7. Assumptions Through 2017 • The LCFF funding continues at the same rate, or flat funding • COLA is built into the model • Certain scenarios show the LCFF grows in 2015-16, which could mean additional revenues to Ramona • Payment for COP increases to $1.77 million in 2015-2016 and $1.86 million in 2016-2017 • Decline of enrollment continues • In 2015-2016, Routine Restricted Maintenance Account (RMMA) resumes • An additional $500,000 is included to meet the requirements of this account

8. Ramona’s Five-Point Plan • At the January 25, 2014 Community Workshop, a plan was released to address the District’s Fiscal Health • The plan included: • 1. Improved revenues due to California Economy • 2. The selling of two District Properties • 3. Continue to decrease staff due to declining enrollment • 4. Eliminate the payments due to the Certificates of Participation with the passage of a General Obligation Bond in November 2014 • 5. Maintain lower health care costs

9. Conclusion • Looking at the current multi-year figures, staff determination is: • An increase in revenues due to a continued strong State economy and the elimination of the COP payments would drastically improve the “bottom line,” making it positive

10. What Is Next? This is the Public Hearing for the budget The final adoption of the budget, along with the LCAP, will be held on June 26 Staff is expecting an on-time budget and, depending on the signing of it, will try to incorporate any changes which could occur Closes the presentation prior to the Public Hearing