Print Meeting Minutes for Regular Virtual School Board Meeting
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Print Meeting Minutes for Regular Virtual School Board Meeting https://simbli.eboardsolutions.com/Meetings/PrintMinutes.aspx?S=3603...
Adopted/Approved - The 2021 LCAP Local Performance Indicators.
This agenda item was submitted by Travis Burke, Director, Special Projects, Co-Curricular
Activities, and Compliance.
6. ADOPT 2021/2022 Adopted Budget
A motion was made to adopt the District's 2021/2022 Budget.
Motion made by: Michael Baker
Motion seconded by: Bob Bastian
Voting:
Michelle Rivas - Yes
Michael Baker - Yes
Basim Elkarra - Yes
Bob Bastian - Yes
Linda Fowler J.D. - Yes
Christine Jefferson - Yes
Rebecca Sandoval - Yes
Motion passed by unanimous vote.
Adopted - The District's 2021/2022 Budget.
This agenda item was submitted by Dr. Kristen Coates and Kate Ingersoll, Executive Director
of Fiscal Services.
Kula Koenig of Social Justice PolitiCorps stated concern that the School-to-Prison Pipeline is
not mentioned in the LCAP, there is no support of Trustee Sandoval when asking basic
questions about funding allocations, asked where is the funding coming from within the
budget, and stated concern about police interaction with students as well as
transparency concerns. She also addressed the Board about continual use of the virtual
board meeting option and the use of a raise hand feature for call-in comments.
Maria Elena of Padres Organized Community stated that the public has been misinformed on
social media by some people from the district about when the Board would be taking action
on the budget. She stated concern about LCAP allocations and parent involvement and
engagement information.
Trustee Sandoval asked fo clari�cation regarding why the salary increases for CSEA and the
Twin Rivers Police are lumped together when they were voted on separately when approved.
She stated that this is a concern as well as how much that has been negotiated is lumped
together for salaries and bene�ts.
Dr. Martinez will work with staff to provide clari�cation as requested by Trustee Sandoval.
Vice President Baker asked about input from the Budget Advisory Committee and the
Parent Advisory Committee and requested that in the future their thoughts and input be
considered with this budget. He also asked that the Board be provided comments and
suggestions from Budget Advisory Committee representatives of each of the Trustee Areas,
along with budget submissions.
Dr. Coates shared how input is received from the Budget Advisory Committee and the
Parent Advisory Committee, using the LCAP process.
7. PRESENT and APPROVE - Intent to Hire on the Basis of a Waiver
A motion was made to approve the intent to hire on the basis of a waiver.
Motion made by: Michael Baker
Motion seconded by: Michelle Rivas
8 of 11 9/13/2021, 3:37 PMTWIN RIVERS UNIFIED SCHOOL DISTRICT
FISCAL SERVICES
2021/2022
Adopted Budget
EXECUTIVE SUMMARY
The District is required to adopt a budget prior to July 1 of each year in order to authorize the expenditure
of funds. Since the preparation of this budget occurs before the Governor’s final action, and before
actual expenditures are known for the current year, estimates of proposed revenues and expenditures are
based on the most reasonable assumptions and recent information available at the time of the
preparation. The budget is a dynamic document which will change as the assumptions and estimates
used to develop it change.
On May 14, 2021 the Governor presented an overview of the May Revision. The Governor’s May
Revision is reflective of a strong economic turnaround, projecting unprecedented funding for K-12
public education. This budget provides for a super COLA and several one-time funding opportunities,
with the creation of California for All Kids, a roadmap to address the gaps in early education, school
nutrition, teacher support, class size, broadband access, and wraparound services. The final State budget
should be approved by the end of June. Any changes from the May Revision will be included in our
First Interim Budget revision.
The General Fund expenditures are greater than the revenues by $65 million. However, when the one-
time $66.2 million restricted funds are taken into consideration there is not a deficit. The $6.7 million
of on-going staffing costs and the $1.7 million unemployment insurance covered by COVID funds is
why we do not have a deficit in 2021/2022. We have enough of an ending fund balance to meet our
Board Policy intent to maintain a minimum reserve of economic uncertainties equal to at least one month
of the general fund payroll expenditures ($19 million) or 6% of the general fund expenditures and other
financing sources ($26.5 million).
The 2022/2023 year does not reflect a deficit due to the $6.7 million of on-going staffing costs covered
by COVID funds. In the following year (2023/2024), there is a structural deficit of $4.9 million. Please
see multiyear projections for additional information on the out years.
Local Control and Accountability Plan (LCAP)
The 2013 Budget Act established the Local Control Funding Formula (LCFF) which expands local
control, reduces state bureaucracy, and ensures that students needs drive the allocation of resources. The
funding also includes increased transparency and accountability by the use of the Local Control
Accountability Plan (LCAP). School districts are required to develop, adopt, and annually update a
three-year LCAP, using the California State Board of Education’s adopted template. The LCAP is
required to identify goals and measure progress for student subgroups across multiple performance
indicators. Additionally, the regulations require school districts “to increase and improve” services for
targeted students (by way of supplemental and concentration grant funding within the LCFF). With our
high percentage of targeted students, the regulations provide authority for school districts to spend funds
“school-wide” when significant populations of those students attend a school. The budget is aligned
with our LCAPs.General Fund – Budget Assumptions
BEGINNING FUND BALANCE
The beginning fund balance is estimated to be $99,937,885; $32.5 million unrestricted and $67.4
restricted (mostly ESSER II). The unrestricted beginning fund balance includes $4.8 million for
estimated program carryover funds ($3 million is instructional materials). However, with the close of
the 2020/2021 fiscal year the actual ending fund balance will increase from additional unrestricted
program carryover funds and unspent restricted categorical programs. The actual 2021/2022 beginning
fund balance will be updated at First Interim (after the 2020/2021 financial records are closed).
REVENUE ASSUMPTIONS
The Local Control Funding Formula (LCFF) consists of base, supplemental, concentration and add-on
funds that primarily focus resources based on a district’s student demographics. Each school district
receives the same per pupil base amount by grade span: K-3, 4-6, 7-8, and 9-12. Supplemental and
concentration funds are based on the unduplicated number of English Learners, students eligible for free
and reduced meals, and foster youth students.
The LCFF Sources (major assumptions):
o Average Daily Attendance (ADA) “funded” is 21,516 (estimated “funded” P2 ADA of
21,419 + 97 for SCOE classes). The “funded” ADA decrease is 234 ADA due to the
partial use of the declining enrollment calculation. The declining enrollment calculation
softens and delays a portion of the revenue reduction to the following year. With no P2
ADA report in the prior year (2020/2021) due to COVID, we are using the P2 ADA
from 2 years ago (2019/2020).
o The projected P2 ADA is 20,610 (decrease of 1,140 ADA from the last reported P2
ADA in 2019/2020).
o District Charter ADA is estimated at 2,182 (57 ADA decrease from the last reported P2
ADA in 2019/2020).
o Estimated Unduplicated Pupil Percentage (3 year rolling average):
Twin Rivers – 90.92%
Creative Connections Arts Academy – 76.81%
Smythe Academy of Arts & Science – 93.67%
Westside Preparatory – 79.69%
o Add-ons for transportation and TIIBG 2012/2013 awards = $9,932,217
o Cost of Living Adjustment (COLA) = 5.07% super COLA
1.7% statutory COLA for 2021/2022
2.31% statutory COLA unfunded in 2020/2021
1.00% additional compounded COLA per May Revise
o Property taxes are estimated at 2020/2021 P2 levels.
o Education Protection Account (EPA) is estimated at $28.7 million (the LCFF revenue
is reduced by this amount). The EPA funds will be used on salaries and benefits for
instruction.
The combined LCFF sources compared to 2020/2021 Second Interim is an increase of:
o $7.7 million base funding
o $3.9 million supplemental/concentration funding
Federal Revenue includes the reduction of prior year carryover funds ($5.8 million), the
elimination of various COVID one-time funds ($96.3 million), the reduction of $851 thousand
of Title I funds and various other smaller grant changes. We anticipate $7 million in unearned
revenue to carryover; expenditures will be budgeted in the First Interim after the 2020/2021
financial records are closed and the actual amounts are known. The ARP Act ESSER III funds
are not in the budget as they have not been allocated to districts yet. We anticipate to receive
$121 million and will incorporate into the budget as soon as CDE allocates the funds. Other State Revenue includes the reduction of $1.1 million of prior year carryover funds and
$6.8 million for one-time grants. The significant one-time grant reductions are Learning
Community for $1.4 million, Learning Loss Mitigation of $2.4 million, Ca. Energy Commission
of $2.2 million, and Early Literacy of $315 thousand. Additionally the Career Technical
Education for $577 thousand and K-12 Strong Workforce for $762 thousand are eliminated, but
grant applications have been submitted for 2021/2022. The on-behalf CalSTRS contribution is
in the budget for $14.3 million; an increase $1.3 million. Special Education Local Plan Area
(SELPA) revenue is estimated with a $35 thousand increase. The state-wide per ADA amount
is proposed to increase 4.05%, but the 1,081 decline in student ADA offsets the increase in
funding. All other grants are at or close to their 2020/2021 grant award levels.
Effective with the close of the books for 2014/2015, the state’s contribution to CalSTRS on-
behalf of district employees must be recorded in the district’s SACS financial records. The
entry to recognize the State’s on-behalf pension contribution accounts for both the revenue and
expenditure of the financial assistance represented by the state’s contribution; thus there is no
impact to the bottom line. The on-behalf STRS contribution is projected to be $14.3 million.
Other Local revenue includes the reduction of various one-time donations and grants of about
$4.7 million. The significant one-time reductions are SMAQMD of $2.7 million for busses and
$700 thousand E-Rate funding. The largest revenue sources are interest income for $650,000
and MOUs with our independent charter schools for $2.2 million for facility use and required
administrative support services.
Transfers In include the annual rent from Adult Education.
Contributions from unrestricted to restricted programs is $43.5 million ($3.3 million increase to
support programs) for the Special Education and Routine Restricted Maintenance programs.
EXPENDITURE ASSUMPTIONS
Certificated salaries and benefits reflect current position control. Position control includes a
1.30% increase for step/column and a 3% salary schedule increase. The unrestricted certificated
salaries net increase of $600 thousand and the restricted certificated salaries net increase of $3.5
million compared to the 2020/2021 Estimated Actuals is due to:
o Step/column increases
o 3% salary schedule increase
o 15 FTE less teaching positions (due to declining enrollment)
o 1.0 FTE Director Equity, Diversity and Inclusion
o 1.0 FTE VP Special Education
o 3.0 FTE Counselors
o Substitute and stipend increase (one-time prior year reduction due to COVID)
Classified salaries and benefits reflect current position control. Position control includes a
2.14% increase for step, 3% salary schedule increase for management and confidential and a
1% salary schedule increase for CSEA staff. Additionally, a 2% salary schedule increase for
CSEA is set aside in the budget. The unrestricted classified salaries net increase of $2 million
and the restricted classified salaries net increase of $1 million compared 2020/2021 Estimated
Actuals is due to:
o Step/column increases
o Salary schedule increases (see above)
o 4 FTE IT User Support Technicians (two years COVID funded)
o Substitute increase (one-time prior year reduction due to COVID) Payroll driven benefit expenditures are budgeted at the following rates:
o STRS – 15.92% (an additional 1% o OASDI – 6.20%
manually added to the budget = 16.92%) o MC – 1.45%
o PERS – 22.91% (+2.21%) o WC – 1.595%
o UI – 1.23% (+1.18%)
We did not include 2020/2021 categorical carryover expenditures. We balanced the categorical
entitlements so that the current year revenues equal the expenditures.
The Routine Restricted Maintenance Account (RRMA) is projected at $11.6 million. This is an
increase of $1.4 million. Education Code Section 17070.75(b)(2) A) requires 3% of total
general fund expenditures less STRS On-behalf and Federal COVID funds.
Encumbrance carryovers and one-time budgets are eliminated.
Books and Supplies increase $1 million in unrestricted and significantly decrease ($24 million)
in restricted mainly due to the elimination of one-time budgets (mostly COVID funds).
Services and Other Operating Expenditures decrease in both unrestricted and restricted
programs due to the elimination of one-time carryover budgets.
Capital Outlay significantly increases for facility projects in restricted using ESSER II carryover
funds.
Other Outgo decrease is in unrestricted and is mainly from a partial year reduction of a facility
capital lease.
Interfund Transfers Out are budgeted at $10 million from Supplemental/Concentration to Fund
14 for high needs facility projects and $15 million to Fund 40 towards the construction of the
school in Northlake area.
ENDING FUND BALANCE
The ending fund balance of $34,937,158 is reported within the following classifications:
Nonspendable - revolving cash and stores inventory is estimated at $2,508,834.
Restricted – legally restricted categorical programs are $1,125,252.
Assigned – $4,759,146
o $3,000,000 – Instructional Materials carryover
o $926,807 – Charter Supplemental/ Concentration carryover
o $300,000 – Supplemental/ Concentration carryover
o $246,156 – Visual and Performing Arts carryover
o $156,054 – Site Base Allocation carryover
o $130,129 – various other department/program carryovers
Unassigned –
o $26,543,925 Reserve for Economic Uncertainty (6% of expenditures)
Board Policy intent to maintain a minimum reserve of economic uncertainties equal to
at least one month of the general fund payroll expenditures ($19 million) or 6% of the
general fund expenditures and other financing sources ($26.5 million)
o $2 UnappropriatedOther Funds – Budget Assumptions ADULT EDUCATION FUND The beginning fund balance is estimated at $1,644,772. Revenue from Federal categorical programs are budgeted at approximately 75% of the prior years’ awards and one-time carryover is removed. Actual award and carryover amounts will be known and reflected at First Interim. Other State revenue represents the California Adult Education Program (CAEP) in the amount of $2.7 million to run the Adult Education programs for English as a Second Language (ESL), high school completion, pre-apprenticeship and Career Technical Education (CTE) classes. CalWORKS funds are provided by the Department of Social Services for education and training and is projected at $131,602. The STRS on-behalf contribution for district employees is projected to be $123,884. The revenue contribution has a corresponding STRS expenditure for the same amount; there is no impact to the bottom line of the finances. There is no Other Local Revenue for student fees; fees for adult education classes have not been charged since January 1, 2016. Interest in budgeted at $7,263. Certificated and classified salaries and benefits reflect current position control which includes step/column increases, a 3% salary schedule increase, STRS/PERS increases and the STRS on-behalf of district employees. Salaries and benefits have been budgeted for staff that may be needed to teach ESL and HSC classes not budgeted through position control. A decrease in Refugee grant funding reflects a decrease to the variable pay for classified salaries. We anticipate to be notified in September of increased Refugee funding which would then allow for additional variable time/pay towards the program. Books and Supplies and Services and Other Operating expenditures include all amounts needed to operate the program as well as IT technology fees, rent for facilities and indirect costs. Other Operating expenditures have been adjusted to reflect the changes in appropriations in programs including the reduction of purchases of online instructional programs and the issuance of supportive services to Refugee clients. The ending fund balance is projected at $1,593,471. CHILD DEVELOPMENT FUND The beginning fund balance is estimated at $981,885. Federal revenue is budgeted at the following anticipated award amounts: Head Start at $2,255,261, Early Head Start at $1,005,011, Head Start Training & Technical Assistance at $29,642, Head Start COVID at $66,042 and General Child Care and Development Program (CCTR) at $27,427. Any carryover amounts will be known and reflected at First Interim. Other State revenue includes CCTR, the California State Preschool program (CSPP) and the pre- Kindergarten and Family Literacy Program Support program (CPKS); projected State Preschool revenues total $6,423,510. Other State revenue also includes QRIS funds at $96,727 and IEEEP funds at $281,811. Actual award amounts will be known and reflected at First Interim along with any carryover amounts. The STRS on-behalf for district employees is projected to be $266,031. The revenue contribution has a corresponding STRS expenditure for the same amount; there is no impact to the bottom line of the finances.
Other Local Revenue includes the First Five program funded at $461,583. Certificated and classified salaries and benefits reflect current position control which includes step/column increases, a 3% salary schedule increase, STRS/PERS increases and STRS on-behalf of district employees. Books and Supplies and Services and Other Operating Expenditures include all amounts needed to operate the program and have been adjusted to reflect the changes in appropriations of Federal and State funded programs. The projected ending fund balance of $981,885 is Restricted and can only be used with State approval. CAFETERIA FUND The beginning fund balance is estimated at $1,315,432. Federal and State revenue projections are estimated at $21 million, representing a 4.7% increase over 2020/2021 Estimated Actuals which is affected by the COVID-19 pandemic. The projected increase is based on the return to normal operations and increased participation due to the extended USDA waivers. Other Local revenues are reduced in the anticipation of less other types of food sales. Salaries and benefits reflect current position control which includes step increases, a 3% salary schedule increase and PERS increases. Open positions and the cost to fill site and program needs were evaluated and charged against variable salary costs. Food is the largest operating expense after staffing. The estimated cost for food reflects a decrease from the prior year for anticipated price stabilization after COVID; cost adjustment through availability of commodity group items, USDA operating waivers and food production estimates. Services and Other Operating costs decrease due to investments into new equipment and major maintenance done in the previous year. Equipment costs reflect a decrease due to one-time purchases in the prior year utilizing the Federal Breakfast Grant intended for equipment acquisition. The indirect cost is calculated using the approved CDE rate of 5.48% and excludes food costs in the calculated formula to reflect the CDE requirements. The total projected ending fund balance of $1,758,440 is Restricted for the use of nutritional services. None of the programs are deficit spending. DEFERRED MAINTENANCE FUND The beginning fund balance is estimated at $4,000,000. LCFF Sources represent a transfer from the General Fund in the amount of $1,896,380 to be used for facility maintenance projects. Other Local Revenue represents interest income. Interfund Transfers In are budgeted at $10 million from Supplemental/Concentration funds (in the General Fund) for high needs facility projects. Expenditures are budgeted based on the District’s Facility Master plan. The ending fund balance is projected at $0. Carryover amounts will be known after the prior books are closed and reflected at First Interim.
SPECIAL RESERVE FUND FOR POSTEMPLOYMENT BENEFITS The beginning fund balance is estimated at $1,585,879. Interest income is budgeted under Other Local Revenue. The ending fund balance is projected at $1,615,879 and is Assigned for future postemployment benefits. BUILDING FUND The beginning fund balance is estimated at $16,265. Interest income is budgeted under Other Local Revenue. Expenditures reflect bond administrative fees. The ending fund balance is projected at $12,908 and is to be used for future bond administrative fees. CAPITAL FACILITIES - DEVELOPER FEE FUND The beginning fund balance is estimated at $11,052,016. Other Local Revenue includes estimated calculations for redevelopment and developer fees. Expenditures are budgeted to reflect current known projects. The ending fund balance is projected at $9,037,431 and is restricted for capital facilities. COUNTY SCHOOL FACILITIES FUND The beginning fund balance is estimated at $18,794,438. Other Local Revenue is for interest income. Expenditures are budgeted based on the Modernization projects which are included in the District’s Facility Master Plan. The ending fund balance is projected at $8,693,664 and will be allocated to facility projects at First Interim. SPECIAL RESERVE FUND FOR CAPITAL OUTLAY PROJECTS The beginning fund balance is estimated at $18,079,315. Other Local Revenue includes interest income and MOU with Gateway Community Charter (GCC) for maintenance of Ben Ali site location. Interfund Transfers In of $15 million is from the General Fund (one-time COVID savings) to go towards the construction of the school in Northlake area. Expenditures are budgeted for facility projects utilizing prior year sale of surplus property income. The ending fund balance is projected at $29,423,716 to be used for future facility projects. $25 million is held to go towards the construction of the school in Northlake area.
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