Assistant Superintendent, Business Services
2018-19 Adopted Budget Message
The District’s revenue projections are reflective of the K-12 revenues contained in the May Revision of the Governor’s 2018 Budget Proposal as well as the projected student enrollment for the 2018-19 school year.
The May Revision reflects higher State General Fund revenues above the January estimates for 2018-19 by $68 million due to increases in General Fund and personal income taxes, bringing a projected Proposition 98 funding to a total of $78.4 billion. Based on the Local Control Funding Formula, the State’s K-12 Revenue Allocation, and the current Department of Finance revenue assumptions, the following factors were utilized to build our 2018-19 Adopted Budget:
- COLA is presented in the Governor’s May Revision proposal and for 2018-19 the rate used to calculate LCFF funding is increased from 2.51% to 3.00%.
- State Aid is increased by $0.3 billion for the Local Control Funding Formula [LCFF], bringing the total increase for 2018-19 to $3.2 billion [approximately $587 per ADA]. This provides funding to move 97% implementation to fully close the funding gap, two years earlier from the 2020-21 implementation date.
- One-time discretionary funding is increased by $286 million, bringing the total increase for 2018-19 to $2.04 billion [approximately $344 per ADA].
Santa Ana Unified forecasts an increase in overall ongoing funding in the adopted budget primarily due to the full implementation of the LCFF funding offset with our current declining enrollment projections. The District continues to project an ongoing enrollment loss of 1,528 students in 2019-20 and 2020-21. As the LCFF is fully funded in 2018-19, the District will receive a cost of living adjustment only in the out years. Taking into consideration of these two factors, the District projects an ongoing loss in LCFF funding in the out years. The adopted budget includes the one-time discretionary funding. The 2018-19 adopted budget projects an unrestricted ending fund balance of $68.4 million.
SAUSD Long-range Planning
This budget is a numerical depiction of the Santa Ana Unified School District’s academic program and strategic Local Control Accountability Plan goals as well as fiscal solvency. Our four LCAP goals, developed through our LCAP stakeholder input, include 1) Teaching and Learning, 2) Engagement, 3) School Climate and Safety, and 4) Targeted Support.
The District continues to monitor and plan for long-range external pressures that will result in increased costs such as contribution to employee health & welfare insurance benefits as well as employee retirement contributions (STRS and PERS), Other Post Employment Benefit Obligations (OPEB), technology refresh, textbooks adoptions, negotiated labor cost, routine and deferred maintenance and other items.
While the District has demonstrated the ability to manage these and other costs through the 2020-21 school year, we continue to forecast and monitor projected changes in future years. The goal is to ensure efficient District operations and services while maintaining fiscal solvency. Ultimately, budget and programmatic priorities for new or redirected dollars are determined by the Board of Education with considerable input by our community stakeholders through the LCAP process.
This budget will be adopted according to statute, prior to June 30, 2018. Once the State Budget is adopted, a revision of this budget including revenue assumptions will be presented in conformance with the Education Code, if necessary.
Manoj Roychowdhury, Assistant Superintendent, Business Services