District Budget News
We encourage you to visit this site on a regular basis in order to obtain up-to-date
information on the District’s budget. 
 
 
June 21, 2017
 

GOVERNOR’S MAY REVISE FOR 2017-18 STATE BUDGET

On May 11, 2017, the Governor issued his May Revise for the 2017-18 State Budget. For this proposal, the Department of Finance updates its revenue projections, expenditure estimates, and economic forecast for the current year and next several years with most State Revenue already received for the current year. Below is a summary of key figures contained in this proposal that impact K-12 public education and the Santee School District.

The Economy

 

Measure

Level

2016

2017

2018

Real GDP Growth

National

1.6%

2.4%

2.2%

Unemployment Rate

National

4.9%

4.5%

4.3%

 

State

5.4%

5.1%

5.0%

Personal Income Growth

National

3.6%

4.4%

4.6%

 

State

4.4%

4.5%

4.5%

Inflation (CPI)

National

1.3%

2.3%

2.3%

 

State Revenues

  • 2015-16 = $115.66 billion; up $0.16 billion from January Proposal
  • 2016-17 = $118.54 billion; down $0.225 billion from January Proposal
  • 2017-18 = $125.19 billion; up $1.88 billion from January Proposal
    • 7.0% increase from prior year for Personal Income Tax
    • 0.1% decrease from prior year for Sales and Use Tax
    • 6.7% increase from prior year for Corporation Tax

 

Proposition 98

  • Guarantee Calculations:
    • 2015-16 = $69.1 billion; $0.4 billion higher than estimate in January proposal and same as estimate in 2016-17 Budget Act
    • 2016-17 = $71.4 billion; same as January proposal and $0.5 billion lower than estimate in 2016-17 Budget Act
    • 2017-18 = $74.6 billion; $1.1 billion higher than January Proposal and 4.5% increase from prior year revised
  • Distribution to K-12:
    • $1.4 billion to LCFF; an additional $661 million from January Proposal. Funds 1.56% COLA plus some progress to closing the GAP (97% of full implementation).
    • $290 million (same as January proposal) for one-time discretionary funds to reduce prior year Mandated Cost Reimbursement Claims, distributed on a per ADA basis
      • IMPORTANT NOTE: The Governor included an additional $750 million in the May Revise for one-time discretionary funding. However, the payment of these funds is not scheduled until May 2019 in the 2018-19 fiscal year AND is contingent upon a State revenue accounting for 2017-18. Consequently, due to the tenuous nature of this appropriation, School Services is recommending NOT including this in the 2017-18 District budget or in the Multi-Year projection
    • No deferral as was proposed in January. However, In order to increase Proposition 98 funding and eliminate the deferral in this economic climate, the Governor proposes to suspend the statutory Proposition 98 Test 3B supplemental appropriation in 2016-17, in addition to the 2018-19 through 2020-21 fiscal years. Although the budget summary asserts that funding reduced through this mechanism will be automatically added to the maintenance factor obligation, which ensures that school funding is restored in the long term, there are still some unanswered questions about this strategy and the future outlook of Proposition 98 funding.
    • $376.2 million for Prop 39 Energy Efficiency; $46.7 million lower than January Proposal
    • 1.56% COLA for categorical programs outside the LCFF

 

Other Provisions:

  • Special Education
    • Continue to examine issues related to Special Education funding to chart a path forward that will maximize resources to serve students while increasing transparency and accountability

 

 

2017-18 Adopted Budget

The District adopted its budget for the 2017-18 fiscal year on June 20, 2017. The 2017-18 Adopted Budget includes the following multi-year projections based on the most recent set of assumptions:

Factor

2017-18

2018-19

2019-20

Projected K – 8 Enrollment

6,901

7,120

7,324

Projected Average Daily Attendance (ADA)

6,531

6,531

6,531

Estimated % Increase in Total LCFF Revenue Over the Prior Year

2.71%

2.06%

2.29%

Estimated Difference Between Unrestricted General Fund Total Income and Total Outgo [BLACK = Operating Surplus, (RED) = Operating Deficit)

($1,486,185)

($3,367,614)

($3,576,607)

Estimated Difference Between Unrestricted General Fund On-Going Income and On-Going Outgo (BLACK = Structural Surplus, (RED) = Structural Deficit)

($281,527)

($1,758,304)

($2,991,582)

Projected End of Year Reserve as a Percentage of Total General Fund Outgo

17.49%

11.92%

6.52%

 

Click here for more details on the District’s 2017-18 Adopted Budget.

 
 
March 22, 2017 
 
2016-17 2nd Interim Report
 

The District adopted its budget for the 2016-17 fiscal year on June 21, 2016. The District is required to do two interim budget reports during each fiscal year; the 1st Interim Report for the period through October 31 and the 2nd Interim Report for the period through January 31. The 2016-17 2nd Interim Report includes the following multi-year projections based on the most recent set of assumptions:

 

Factor

2016-17

2017-18

2018-19

Projected K – 8 Enrollment

6,761

6,901

7,120

Projected Average Daily Attendance (ADA)

6,512

6,512

6,512

Estimated % Increase in Total LCFF Revenue Over the Prior Year

5.36%

1.34%

2.30%

Estimated Difference Between Unrestricted General Fund Total Income and Total Outgo [BLACK = Operating Surplus, (RED) = Operating Deficit)

($2,505,577)

($2,444,011)

($3,839,317)

Estimated Difference Between Unrestricted General Fund On-Going Income and On-Going Outgo (BLACK = Structural Surplus, (RED) = Structural Deficit)

$593,656

($1,448,263)

($2,335,809)

Projected End of Year Reserve as a Percentage of Total General Fund Outgo

18.83%

15.67%

9.32%

 

Click here for more details on the District’s 2016-17 2nd Interim Report.

 

January 31, 2017

 
GOVERNOR’S JANUARY STATE BUDGET PROPOSAL FOR 2017-18
 

On January 10, 2017, the Governor issued his initial proposal for the 2017-18 State Budget. For this proposal, the Department of Finance updates its revenue projections, expenditure estimates, and economic forecast for the current year and next several years. Below is a summary of key figures contained in this proposal that impact K-12 public education and the Santee School District.

 

The Economy:

 

 

Measure

Level

2016

2017

2018

Real GDP Growth

National

1.5%

2.2%

2.2%

Unemployment Rate

National

4.9%

4.7%

4.6%

 

State

5.5%

5.5%

5.5%

Personal Income Growth

National

3.3%

4.3%

4.9%

 

State

4.1%

4.4%

4.3%

Inflation (CPI)

National

1.3%

2.1%

2.3%

 

State Revenues:

 

  • 2015-16 = $115.5 billion; down $1.50 billion from 2016-17 Budget Act
  • 2016-17 = $118.8 billion; down $1.55 billion from 2016-17 Budget Act
  • 2017-18 = $124.0 billion; down $2.74 billion from 2016-17 Budget Act
    • 3.3% annual increase for Personal Income Tax
    • 0.7% annual increase for Sales and Use Tax
    • 4.7% annual increase for Corporation Tax
  • Capital Gains Revenue as a Percent of General Fund Tax Revenues:

Proposition 98: A funding calculation that determines the amount of State funding and local property taxes that are to be spent on K-14 public education (i.e. elementary school, middle school, high school, and community colleges)


  • Guarantee Calculations:
    • 2015-16 = $68.7 billion; $0.4 billion lower than estimate in 2016-17 Budget Act
    • 2016-17 = $71.4 billion; $0.5 billion lower than estimate in 2016-17 Budget Act
    • 2017-18 = $73.5 billion; 2.9% increase from prior year revised
  • Distribution to K-12 public education: 
    • $744 million to Local Control Funding Formula (LCFF); funds 1.48% COLA only, no progress to closing the GAP
    • $287 million for one-time discretionary funds to reduce prior year Mandated Cost Reimbursement Claims, distributed on a per Average Daily Attendance (ADA) basis
    • Defer $859.1 million of LCFF funding from June 2017 to July 2017
    • Shift $310 million of one-time discretionary funding attributable to 2015-16 to 2016-17
    • $422.9 million for Prop 39 Energy Efficiency; $24 million higher than 2016-17 funding
    • 1.48% COLA for categorical programs outside the LCFF

 

District and Charter School LCFF Funding and Gap Closure Estimates
(Dollars in Millions)

 

2014-15

2015-16

2016-17

2017-18

2018-19

2019-20

2020-21

LCFF Funding

$4,722

$5,994

$2,942

$744

$1,904

$2,022

$2,294

Gap Closure %

30.16%

52.56%

55.28%

23.67%

53.85%

68.94%

100.00%

COLA

0.85%

1.02%

0.00%

1.48%

2.40%

2.53%

2.66%

 

Other Provisions:

 

  • School Facilities Bond Funds
    • Work with State Allocation Board and Office of Public School Construction to revise policies and regulations to implement front-end agreements that define basic terms, conditions, and accountability measures for participants that request funding through the School Facilities Program
    • Introduce legislation requiring facility bond expenditures from State funds to be included in the Annual K-12 Audit Guide
  • Special Education
    • Engage stakeholders throughout the spring budget process for feedback on the current special education finance system and the recommendations included in the two most recent evaluations conducted
 

December 2, 2016


STATE BUDGET NEWS:

On June 27, 2016, the Governor signed the 2016-17 State Budget. This budget included significant revenue increases for K-12 public school districts including:

    $2.94 billion for Local Control Funding Formula (LCFF) GAP Funding
    $1.28 billion in one-time discretionary funds


Since enactment of the State Budget, the actual revenue received by the State through October is below the forecast by nearly $2 billion (2015-16 since May Revise and 2016-17 through October). On January 10, 2017, the Governor will release his proposal for the 2017-18 State Budget which will include revised revenue forecasts.

On November 8, 2016, California voters passed Proposition 55 which extends the temporary increase to personal income taxes for high income earners (i.e. household income of $250,000 or more) enacted by Proposition 30 in 2012 for another 10 years. This does not provide any new revenue for school districts but merely operates to maintain revenues already being received.

 

DISTRICT BUDGET NEWS:

 2016-17 1st Interim Report

The District adopted its budget for the 2016-17 fiscal year on June 21, 2016. The District is required to do two interim budget reports during each fiscal year; the 1st Interim Report for the period through October 31 and the 2nd Interim Report for the period through January 31. The 2016-17 1st Interim Report includes the following projections:

Factor

2016-17

2017-18

2018-19

Projected K – 8 Enrollment

6,763

6,902

7,121

Projected Average Daily Attendance (ADA)

6,457

6,457

6,457

Estimated % Increase in Total LCFF Revenue Over the Prior Year

5.18%

2.46%

0.52%

Estimated Difference Between Unrestricted General Fund Total Income and Total Outgo [BLACK = Operating Surplus, (RED) = Operating Deficit)

($2,765,868)

($2,471,292)

($3,553,065)

Estimated Difference Between Unrestricted General Fund On-Going Income and On-Going Outgo (BLACK = Structural Surplus, (RED) = Structural Deficit)

$299,474

($1,192,622)

($2,849,557)

Projected End of Year Reserve as a Percentage of Total General Fund Outgo

18.34%

14.93%

9.19%

 
Click
here for more details on the District’s 2016-17 1st Interim Report.

Last Modified on June 21, 2017
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