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2021-22 1st Interim Report

Piedmont USD Board of Education

December 8, 2021

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Required Reports

  • The District is required to adopt a budget and provide updates to the Alameda County Office of Education (ACOE) by:
    • July 1 Adopt a budget
    • December 15 1st Period Interim to ACOE
    • March 15 2nd Period Interim to ACOE
    • June 30 Estimated Actuals
    • September 15 Unaudited Actuals

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Headlines

  • 2021-22: The District expects to meet all financial obligations, including the requirement for a 3% reserve.
  • State, Federal and local revenues have enhanced the revenues and expenditures for 2021-22 to allow additional support for students to recover any learning loss from last year.
  • The projections for the next 2 years assume a continued decline in enrollment, rightsizing staff accordingly, and elimination of the one-time revenues and associated programs
  • 2022-23: The District expects to meet all financial obligation
  • 2023-24: the District will need to make additional adjustments of $800,000.

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Revenues

  • 50% is based on the Local Control Funding Formula (LCFF)
  • 38% is locally generated - parcel taxes, PEF, parents

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Changes to

Unrestricted Revenues

There have been a number of significant adjustments to revenues since budget adoption. Splitting out Unrestricted from Restricted revenues clarifies the revenue changes by resource.

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Changes to

Restricted Revenues

Most of the additional revenue is in restricted revenue sources.

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Expenditures

  • 81% of expenditures are salaries and benefits.

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Changes to

Unrestricted Expenditures

The change in Unrestricted expenditures includes the unspent parent and local contributions that were unspent last year and were moved to this year.

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Changes to

Restricted Expenditures

A net total of $1 million in expenditures have been added to restricted budgets. The rest of the restricted resources are left unspent in the fund balance.

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Net Change to Fund Balance

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General Fund - Multiyear

The following assumptions were used in the MYP:

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Assumption

2021-22

2022-23

2023-24

Enrollment

2,348

2,291

2269

Estimated ADA based on enrollment

2,282.14

2,227.39

2,206.11

ADA used for LCFF calculations

2,496.18

2,282.14

2,227.39

Cost of Living Increase (COLA) for LCFF per pupil funding

5.07%

2.48%

3.11%

COLA for increase in other State revenues

1.70%

2.65%

2.36%

COLA for Measure G Funds

2.0%

2.0%

2.0%

Natural progression (Step & Column) in Employee Salaries

APT: 1.45%

CSEA: 1.00%

APT: 1.45%

CSEA: 1.00%

APT: 1.45%

CSEA: 1.00%

STRS Rate

16.92%

19.10%

19.10%

PERS Rate

22.91%

26.10%

27.10%

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Add’l Elements of MYP

To identify whether additional reductions are needed, we start by eliminating those expenditures that we know were one-time, or those that are related to the number of students.

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Assumptions about:

2022-23

2023-24

Certificated Employees

Incorporate savings from new hires

Eliminate one-time positions

Reduce 3.0 FTE for rightsizing

Reduce 2.0 FTE for rightsizing

Classified Employees

Eliminate one-time positions

Reduce 3.0 FTE for rightsizing

Reduce 2.0 FTE for rightsizing

Books and Supplies

Eliminate one-time purchases and spending tied to one-time funds.

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Services & Other Operating Expense

Eliminate one-time contracts and spending tied to one-time funds.

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General Fund - Multiyear

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What happened to the $1.4 M Gap in the June Budget?

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2021-22

2022-23

2023-24

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Original Gap based on 6/23/21 Budget

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-1,400,000

-1,400,000

45 Day Rev

State Unemployment Ins Adj

192,000

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Lottery Revenue Adjust

75,600

73,765

73,028

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UA

Undesignated Balance

948,205

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Oct Update

Enrollment Proj LCFF Adjust

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-570,000

-415,000

Salary & Benefit Adjust

427,000

427,000

427,000

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Enrollment adjustment (higher UPP)

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132,000

131,000

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Salary & Benefit Adjust

-90,000

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Add'l costs in 21-22 (LCAP, Wellness, SPED, etc.)

-300,000

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1st Interim

PEF's Successful Fundraising

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300,000

200,000

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Total Adjustments

1,252,805

362,765

416,028

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Balance Avail (from Prior Year)

0

1,252,805

215,570

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Gap + Adjustments + Balance

1,252,805

215,570

-768,402

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Caution Ahead

Add'l Expenses for 2021-22:

  • Collective bargaining agreements
  • Additional support for Special Needs students

Add'l Expenses for 2022-23 (and beyond):

  • TK expansion (facilities, staff)
  • Universal meals
  • Deferred facilities needs

Add'l Revenues for 2022-23: State revenues appear to be higher than anticipated so far this year, which may result in positive developments for the 2022-23 budget. The Governor will share his preliminary budget for 2022-23 in January.

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Next Steps

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December

  • 1st Interim Report presented with MYP Projections
  • BAC Meeting to review 1st Interim

January

  • Governor’s Budget Proposal released 1/10
  • Board review of how Gov’s Budget will affect PUSD
  • BAC Meeting to review Governor’s Budget Proposal

March

  • BAC Meeting to review 2nd Interim
  • 2nd Interim Report presented with MYP Projections
  • If required, Board takes action on reductions for 2022-23 that involve positions
  • If required, March 15 notices mailed

May

  • Governor releases May Revisions to budget proposal for 2022-23

June

  • Board holds public hearing on draft budget
  • Final budget adopted by Board

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Acknowledgments

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Thank you to the Business Services Team!

Suzanne Binder

Nancy Brahm

Upexa Captan

Cherrie Deangkinay

Cheryl Kaiser

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Julie Kim

Kim Randlett

Cindy Sivilaythong

Jennifer Stahl

Shamaree Worley

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