IT’S NO LONGER YOUR TYPICAL MYP
The views and opinions expressed in this presentation are those of the authors and do not
necessarily reflect those of CASBO.
Sacramento Section Contributors
Catherine Hawes, Sutter County Superintendent of Schools
Terri Ryland, Ryland | School Business Consulting
Jennifer Stahlheber, Sutter County Superintendent of Schools
2017 CASBO ANNUAL CONFERENCE & CALIFORNIA SCHOOL BUSINESS EXPO
Introduction
Why This Topic?
What Are the Issues?
Components and Approach
Hints
Presenting Clearly
2017 CASBO ANNUAL CONFERENCE & CALIFORNIA SCHOOL BUSINESS EXPO
Why MYP?
Planning is a good idea!
Yes, the numbers in your MYP will be wrong
 But, we need to have a financial plan
We take the latest, most reasonable assumptions and apply them to our revised
budget to look at the future for our LEA
Without this planning tool, there are too many surprises that can impede or
completely stop educational progress in the budget or future years
2017 CASBO ANNUAL CONFERENCE & CALIFORNIA SCHOOL BUSINESS EXPO
What is the Big Deal?
Revenue projections are volatile
 We must get a good idea of the current year projections, then we can make
assumptions for the future
 We need a tool that we can update quickly to reflect changes that occur all year
 While AB1200 requires a current year plus two-year projection, it is just a best
practice
2017 CASBO ANNUAL CONFERENCE & CALIFORNIA SCHOOL BUSINESS EXPO
What to Have Before You Get Started
Assumptions included in the current revised budget
Enrollment projections, ADA trends
LCFF calculator
List or identification of one-time revenues and expenditures
Staffing ratios and projected FTE changes for budget year
Cost of step, column, retirement incentives, retirement increases
Impact of negotiations, minimum wage implications
Board approved budget reductions
LCAP priorities and changes
2017 CASBO ANNUAL CONFERENCE & CALIFORNIA SCHOOL BUSINESS EXPO
Set Up MYP Template
Set up workbook so the assumptions tab feeds the MYP tab
Identify assumptions (changes between years) by
 Object code and
 Unrestricted/ Restricted
Add third ‘out year’
 With recent, and future, changes to gap funding and economic factors, showing the third year
at interim reporting times will prevent surprises when it shows up as the second year out in
May/June for Adopted Budget
Have charts, graphs, summaries, and trends that feed off of the MYP numbers
2017 CASBO ANNUAL CONFERENCE & CALIFORNIA SCHOOL BUSINESS EXPO
Assumptions to Include
Revenue
 LCFF changes between years (gap funding and/or property taxes, net of enrollment changes)
 One-time funds added and removed
 Changes in contributions to restricted programs
 Reduced revenues in restricted programs
 Increased costs of employees
 RRM back to 3% level
 Federal budget cuts?
2017 CASBO ANNUAL CONFERENCE & CALIFORNIA SCHOOL BUSINESS EXPO
Assumptions to Include
Expenditures
 FTE changes
 Negotiated changes
 STRS/PERS increases
 Minimum wage implications each year
 Health benefit cap changes
 Step/column increases
 Remove/add one-time expenditures
 Curriculum, capital expenditures, professional development
 Reflect board-approved budget reductions and/or new programs
 Include LCAP priorities
2017 CASBO ANNUAL CONFERENCE & CALIFORNIA SCHOOL BUSINESS EXPO
Assumptions by Object Code
 Unrestricted assumptions include revenues, salary changes, one-time contracts, budget
reductions…
2017 CASBO ANNUAL CONFERENCE & CALIFORNIA SCHOOL BUSINESS EXPO
Link the Assumptions to the MYP
Bring in a summary of assumptions by object code
2017 CASBO ANNUAL CONFERENCE & CALIFORNIA SCHOOL BUSINESS EXPO
Format of a MYP
Be sure to have one page in a SACS format that shows all three years
 It’s a lot of numbers, but one slide with the full picture isn’t a bad idea!
2017 CASBO ANNUAL CONFERENCE & CALIFORNIA SCHOOL BUSINESS EXPO
What Are Some Common Mistakes?
Not listing assumptions prominently
 The math is easy; it is all up to the assumptions
 Be clear
Not adjusting for one-time revenues and expenditures
 Textbook adoption one year and not the other
 One-time mandated cost revenue
Not using updated enrollment/ADA projections for revenue and staffing
Over-estimating property tax increases
 Basic Aid and cash flow implications
Padding budgets and ending up with too much budget savings
“Fixing” the problem yourself by shaving costs or assuming things will be better
without listing or discussing those critical changes
2017 CASBO ANNUAL CONFERENCE & CALIFORNIA SCHOOL BUSINESS EXPO
Extras For a Better Product
Add the third year out to reduce surprises
 Many boards were shocked last May/June when they saw the bottom drop out of
their budgets in 2018-19
 Unless they had been shown current plus THREE, they had no idea things looked so
grim once Prop 30 was projected to go away
LCAP MYP
Charts, graphs and summaries
2017 CASBO ANNUAL CONFERENCE & CALIFORNIA SCHOOL BUSINESS EXPO
LCAP MYP
Projecting supp/conc funds that have been spent and are to be spent to be sure
meeting MPP
2017 CASBO ANNUAL CONFERENCE & CALIFORNIA SCHOOL BUSINESS EXPO
Charts, Graphs, Summaries
Be clear on enrollment and ADA trends
Enrollment and ADA Trends Indicate
Decline of 22% Since 2009-10 But Flat Enrollment Going Forward
2,400
2,200
98.00%
2184
2,000
97.00%
2081
1984
1933 1920
1862 1872 1870 1865 1874 1869
96.00%
1,800
95.00%
1,600
94.00%
1,400
93.00%
1,200
92.00%
1,000
91.00%
Enrollment
2017 CASBO ANNUAL CONFERENCE & CALIFORNIA SCHOOL BUSINESS EXPO
ADA
Yield
Explaining the “Gap”
Use a chart to explain LCFF funding
2017 CASBO ANNUAL CONFERENCE & CALIFORNIA SCHOOL BUSINESS EXPO
Have A Summary Budget to Discuss
While we focus on Unrestricted, be sure the board and cabinet understand that
categorical programs are part of the “General Fund”
Revised General Fund Budget 2016-17
Description
Unrestricted
Restricted
Total Revenues
Total Expenditures
Excess/(Deficiency)
Other Sources/Uses
Total
42,805,092
36,718,358
6,086,734
(7,581,170)
12,829,822
21,201,984
(8,372,162)
6,530,793
55,634,914
57,920,342
(2,285,428)
(1,050,377)
Net Increase/(Decrease)
(1,494,436)
(1,841,369)
(3,335,805)
Add: Beginning Fund Balance
12,244,139
2,065,402
14,309,541
10,749,703
224,033
10,973,736
Ending Fund Balance
2017 CASBO ANNUAL CONFERENCE & CALIFORNIA SCHOOL BUSINESS EXPO
Then Summarize the MYP
Highlight surplus/(deficit) and ending fund balance
Description
Revised Multi-Year Projection (Total GF)
2016-17 Revised
Projected
Budget
2017-18
Total Revenues
Total Expenditures
Excess/(Deficiency)
Other Sources/Uses
Projected
2018-19
$55,634,914.00
$57,920,342.00
-$2,285,428.00
-$1,050,377.00
$55,947,303.68
$56,033,809.96
-$86,506.28
-$1,050,377.00
$57,795,303.68
$57,399,375.46
$395,928.22
-$1,050,377.00
Net Increase/(Decrease)
-$3,335,805.00
-$1,136,883.28
-$654,448.78
Add: Beginning Fund Balance
$14,309,541.00
$10,973,736.00
$9,836,852.72
$10,973,736.00
$9,836,852.72
$9,182,403.94
Ending Fund Balance
2017 CASBO ANNUAL CONFERENCE & CALIFORNIA SCHOOL BUSINESS EXPO
Compare Rates and Assumptions
Showing the changes between periods, sometimes significant changes such as
the gap funding change this year, reminds everyone of the fluid nature of our
budgets
 This helps explain why our numbers are always “wrong”!
2017 CASBO ANNUAL CONFERENCE & CALIFORNIA SCHOOL BUSINESS EXPO
Analyze the Change Between Periods
Being able to explain the
changes will assure yourself
that you understand and
confirm that the numbers are
solid
2017 CASBO ANNUAL CONFERENCE & CALIFORNIA SCHOOL BUSINESS EXPO
PERS and STRS Changes Must Be Clear
Keep the updated rates in front of the board and unions
 Total compensation is increasing dramatically
CalSTRS Rates per EC§ 22901.7 and 22950.5
2014-15 Actual
2015-16 Actual
2016-17 Actual 2017-18 Projected 2018-19 Projected 2019-20 Projected
2020-21
Projected
Employer
8.880%
10.73%
12.58%
14.43%
16.28%
18.13%
19.10%
Member (2% at 60)
8.150%
9.20%
10.25%
10.25%
10.25%
10.25%
10.25%
Member (2% at 62)
8.150%
8.56%
9.205%
9.205%
9.205%
9.205%
9.205%
increase
1.85%
1.85%
1.85%
1.85%
0.97%
0.97%
CalPERS Actual and Projected Rates
2014-15 Actual
Employer
2015-16 Actual
2016-17 Actual 2017-18 Projected 2018-19 Projected 2019-20 Projected
2020-21
Projected
11.771%
11.85%
13.05%
16.60%
18.20%
19.90%
20.40%
Increase
0.079%
1.200%
3.550%
1.600%
1.700%
0.500%
2017 CASBO ANNUAL CONFERENCE & CALIFORNIA SCHOOL BUSINESS EXPO
Compare STRS/PERS Current to Future
Find a way to demonstrate the more than doubling of the rates/costs
2017 CASBO ANNUAL CONFERENCE & CALIFORNIA SCHOOL BUSINESS EXPO
Contributions
Highlight contributions to restricted programs
 Make sure only board-approved contributions are made
 i.e. if board policy is that only special education and routine maintenance have contributions, be sure
other programs stay within their revenue allocations
2017 CASBO ANNUAL CONFERENCE & CALIFORNIA SCHOOL BUSINESS EXPO
Components of Fund Balance
At budget adoption, disclose the components of fund balance and justify the
reserves
2017 CASBO ANNUAL CONFERENCE & CALIFORNIA SCHOOL BUSINESS EXPO
Surpluses and Deficits
Deficit spending should be shown in context and trends are helpful for
explaining
Surpluses and (Deficits) Indicate Change to Fund Balance
District Must Focus on Eliminating Deficit Spending
and Move to a Balanced Budget
2,000,000
1,000,000
(1,000,000)
(2,000,000)
2010-11
Actual
2011-12
Actual
2012-13
Actual
2013-14
Actual
2014-15
Unaudited
Actual
2015-16
Budget
(3,000,000)
(4,000,000)
(5,000,000)
(6,000,000)
2017 CASBO ANNUAL CONFERENCE & CALIFORNIA SCHOOL BUSINESS EXPO
2016-17
Proj
2017-18
Proj
LCFF Funding
Compare LCFF funding between periods
2017 CASBO ANNUAL CONFERENCE & CALIFORNIA SCHOOL BUSINESS EXPO
It’s Not Your Mother’s MYP
 Be clear, concise, and forthcoming
 No budget padding allowed!
There are a lot of moving parts
Stay up to date on the latest State and Local economic indicators and
assumptions
Revisit the projections regularly
 Run “what ifs” for negotiations or funding scenarios
The MYP can be a useful teaching tool with community groups, unions, and
administrators
2017 CASBO ANNUAL CONFERENCE & CALIFORNIA SCHOOL BUSINESS EXPO
Questions and Contact Info
Questions?
Catherine and Jennifer
 (530) 822-2942 Catherine and (530) 822-2928 Jennifer
 [email protected]
 [email protected]
Terri
 (916)652-7165
 [email protected]
 www.rylandsbc.com
2017 CASBO ANNUAL CONFERENCE & CALIFORNIA SCHOOL BUSINESS EXPO