BUILDING LONG TERM FISCAL STABILITY - NOVEMBER 19, 2020 - BOARDDOCS
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Building Long Term Fiscal Stability November 19, 2020 1
Fiscal Solvency
State Funding Salaries
Parcel Tax Health Benefits
Partnerships Retirement - STRS &
PERS
Facility Leases
Operational Costs
and Use
Donations
Fiscal solvency is a non-negotiable, but CUSD (currently) controls how we 2
accomplish the stability we must have as a school district.
Review of Structural Deficit
3
Based on our current Budget forecast we face the
following challenges and actions:
● Structural deficit for each of our outlying years
● School closures
● No Salary increases for employees for past two years
and next three years
● Board levers implemented resulting in staff reductions
and program cuts
● Potential class size increases
4
How do we meet the challenges and alter the course
of actions?
Pass (new) parcel tax on the May 2021 ballot:
● Successfully passing and implementing a large parcel tax
will allow CUSD to be fiscally solvent, and will also provide
the strong educational learning environment that we all want
to see continue for our children.
5Based on Passing and Implementing a large
parcel tax in May 2021 CUSD will have:
● No new cuts to programs or positions in 2021-2022
● No school closures for 2021-2024
● 3% employee salary increase for 2021-2022, 2% salary increase in
2022-2023 and 2023-2024
6In addition, passing a new Parcel Tax will allow us to support our
Strategic Plan and students will be provided and engage in
learning experiences that are relevant and rigorous, personalized,
and focused on the development of the whole child.
● Adding Elementary counselors to support student social emotional wellness
● Adding Site Based Literacy Specialists
● Increase staff to provide 2 elective opportunities at all Middle Schools
7The additional revenue generated by the passing of a parcel tax will allow
CUSD to meet its commitments outlined in the Strategic Plan:
Provide Meaningful, Creative, and Innovative Curriculum and Instruction that supports student
engagement and deepen student learning experiences.
Design Dynamic Learning Environments to meet the needs of all students while challenging each to
develop existing skills, interests and understandings, as well as building new ones.
Attract, retain and support high quality staff who are seen as leaders and learners empowered to
inspire our students. Engage Family and Community as partners to actively support and improve the
academic achievement, social and behavioral development, and health of our students.
Ensure District Communication systems are in place in order to connect our schools to our families and
community, celebrate the successes of our students, staff and alumni while attracting and welcoming new
families to the District.
Develop and maintain a District culture and infrastructure that ensures fiscal responsibility and places
highest value on student learning
82021-2022 2022-2023 2023-2024 Beginning Fund Balance $24,515,085 $29,841,515 $39,495,909 Total Revenue as of 45-day $182,811,823 $181,665,393 $178,072,859 Parcel Tax Assumption ($24 million) $ 24,000,000 $24,000,000 $24,000,000 Total Funds Available $231,326,908 $235,506,908 $241,568,768 Potential Reduction in Per Pupil Funding ~$13,000,000 Unknown at this Unknown at by 10% time this time A)Total Expenditure with salary increase (3% $188,485,393 $192,360,999 $194,960,999 = $4M) B)Total Expenditure with additional positions to $199,010,999 $198,765,749 support Strategic Plan (30 FTE = $3.65M) Revenue - Expenditures = $29,841,515 $39,495,909 $42,803,0197
2021-2022 2022-2023 2023-2024 Beginning Fund Balance $24,515,085 $26,841,515 $33,495,909 Total Revenue as of 45-day $182,811,823 $181,665,393 $178,072,859 Parcel Tax Assumption ($21 million) $ 21,000,000 $21,000,000 $21,000,000 Total Funds Available $228,326,908 $229,506,908 $232,568,768 Potential Reduction in Per Pupil Funding ~$13,000,000 Unknown at this Unknown at by 10% time this time A)Total Expenditure with salary increase (3% $188,485,393 $192,360,999 $194,960,999 = $4M) B)Total Expenditure with additional positions to $196,010,999 $198,765,749 support Strategic Plan (30 FTE = $3.65M) Total funds - Expenditures = $26,841,515 $33,495,909 $33,803,0197
2021-2022 2022-2023 2023-2024
Beginning Fund Balance $24,515,085 $21,841,515 $23,495,909
Total Revenue as of 45-day $182,811,823 $181,665,393 $178,072,859
Parcel Tax Assumption ($16 million) $ 16,000,000 $16,000,000 $16,000,000
Total Funds Available $223,326,908 $219,506,908 $217,568,768
Potential Reduction in Per Pupil Funding ~$13,000,000 Unknown at this Unknown at
by 10% time this time
A)Total Expenditure with salary increase (3% $188,485,393 $192,360,999 $194,960,999
= $4M)
B)Total Expenditure with additional positions to $196,010,999 $198,765,749
support Strategic Plan
(30 FTE = $3.65M)
Total funds - Expenditures = $21,841,515 $23,495,909 $18,803,019
11Pause for Questions
12Parcel Tax
(Additional information)
13Responses to Questions from November 19
What would an 8-year model look like with a flat rate of $625 with a Metro CPI
escalator?
Please see the next slide as it provides revenue scenarios for both a Metro CPI escalator and a flat 2% increase. Please also note that
the total revenues are merely assumptions based on data we currently have, however the number of parcels and Metro CPI change
will fluctuate year to year. Over the last ten years CPI increase has been anywhere from 1.1% to 4.36%.
What is the guidance around the escalator to be utilized: CPI, Metro CPI, or 2%?
Which is the best to use and why?
We typically recommend a 2% escalator, as that's what Proposition 13 tied it to, and it provides something that can be modeled 5 to 10
years out. There is a lot of variability with CPI.
1415
To Answer for November 19
How and what type of Cap could be used? Could we model a cap and what
residential would pay to reach $21,000,000?
DTA recommends a cap of around $6,000 for non-residential parcels, as non-res building sq. ft. makes up 18% of all sq. ft. in the
District. Please see the next slide for more detail.
What is the basis for the square footage?
The square footage is from the County roll, equalized as of January 1, 2020.
1617
To Answer for November 19
Is the large square footage all non-residential?
● The next slide has a revised list which is sorted by number of square feet and indicates which properties are residential vs
non-residential. All of the residential properties are multi-family, likely larger apartment complexes.
1819
20
Square 1,500 1,800 2,100 2,400 2,700 3,000
footage of
residential
$8.6 $250 $250 $250 $250 $250 $250
million Flat
Rate
$21 million $625 $625 $625 $625 $625 $625
via Flat
Rate
$21 million $375 $450 $525 $600 $675 $750
via $.25
$24 million $695 $695 $695 $695 $695 $695
via Flat
Rate
$24 million $420 $504 $588 $672 $756 $840
via $.28
21What is the financial impact next steps if the $21 million
Parcel Tax does not pass in May 2021?
● Implement the work of the Citizens Advisory Committee
● Potential School Closures implemented in 2022-2023
● No Employee Salary increase for 3 years (including
2021-2022)
● Staff Layoffs
● Board Levers pulled
22What a parcel tax does not solve:
● Declining Enrollment:
The District will continue to explore how to address small school
enrollment to create viable learning environments for all students
while balancing enrollment across the district
● CLIP having its own school site:
The District will continue to explore potential solutions
to allow CLIP it’s own designated site.
23Clarifications:
● There has been no discussion or decision on moving CLIP to the Nan Allan
site. The mention of Nan Allan was the district staff exploring all options
available to consider. The Nan Allan site would require an extensive amount
of work and cost to accommodate the CLIP program at this time.
● The District is not entertaining selling any of our properties at this time. We
are exploring leasing our Finch property in a partnership with the City.
● The District will maintain our current Elementary area-Middle School
area-High School feeder patterns.
● Information shared in our community surrounding staffing numbers
contributing to a higher than necessary budgetary cost.
24CUSD Staffing 2015-16 through 2020-21
2020-21 2019-20 2018-19 2017-18 2016-17 2015-16
# Count FTE # Count FTE # Count FTE # Count FTE # Count FTE # Count FTE
CEA 800 765.5 840 806.4 869 832.4 903 865.5 935 880.8 953 897.4
CSEA 553 393.8 603 415.4 602 411.8 619 422.0 590 426.3 563 397.1
SEIU 189 159.3 195 168.1 198 170.5 205 176.0 204 177.4 201 159.1
Mgmt 86 85.4 90 89.4 92 91.4 96 95.1 105 103.1 105 102.6
Non-Rep. 94 16.2 125 19.9 124 19.4 0 0.0 0 0.0 0 0.0
TOTAL: 1,722 1,420.1 1,853 1,499.2 1,885 1,525.4 1,823 1,558.7 1,834 1,587.7 1,822 1,556.3
Note:
Data as of the first work day in October of the school year 25
Mgmt = EC + Certificated Mgmt + Classified Mgmt + Confidential + Supervisors (including Kitchen Supervisors)
Non-Represented = Noon Aides + Mental Health Therapists
13-14 = funding model changed to LCFF and common core was implementd that did result in one time money coming in and in CUSD
additional staff were hired to help with implementing CC. This was especially evidences in the number of Instructional coaches brought intoWe need ALL of our school communities support to pass a parcel tax.
Our commitment to delaying any school closures, implementing Board
levers, and additional cuts and reductions is based on all of our energy
and voices being used to support CUSD and pass the parcel tax. If we
continue to be divided and focus our energy on other items, we will not
have the support to pass any parcel tax and CUSD will continue in its
plight of financial struggles.
26Our Promise:
Students will be provided and engage in learning
experiences that are relevant and rigorous,
personalized, and focused on the development of
the whole child.
27BOARD STUDY SESSION
DISCUSSION
● Determine the dollar amount target of the Parcel Tax
initiative to solve for CUSD fiscal solvency
● Consider the implications of a Parcel tax not passing
and the impact on the budget for the multi-years
● Continue to develop a contingency plan to create long
term fiscal stability if a Parcel tax does not pass in 2021.
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