At its March 8th meeting, The FUSD Board of Education:
Received 2016-17 Second Interim Budget Report - The attached budget analysis shows the detailed explanation of the changes from the First Interim Budget Report to the Second Interim Budget Report. As a result of the changes in the revenues and expenditures, the ending fund balance is projected to decrease by approximately $1.1 million from the First Interim Budget Report. The designation of ending fund balance is projected to decrease by $1.3 million, which leaves a reserve of approximately $7.4 million or 2.09%, an increase of $0.2 million from the First Interim Budget Report.
The General Fund is made up of unrestricted and restricted funds. The District’s unrestricted general fund contributes $51.6 million to the restricted general fund. These are made up of contributions to cover the deficit in the Special Education program for $41.1 million and the required contribution to Routine Restricted Maintenance program for $10.5 million. The unrestricted general fund is projecting a deficit of $3.0. This will result in an ending fund balance of $35.5 million. A portion of the ending fund balance must be designated ($0.8 million) for revolving cash, and stores/prepaid expenditures. The district has set aside $1.6 million towards the replacement of the Mission San Jose High School swimming pool, $10.0 million as a supplemental contribution for the new school, $0.8 for California School Employees Association (CSEA) 2% salary increase, $3.6 million for Career Technical Education, and $9.6 million one-time expenditures to be determined. The projected reserve, after all the designations, is $7.4 million or 2.09%. To be compliant with the state law, the district must maintain at least 2% reserve.
In order to maintain a 4% reserve in 2017-18 and 2018-19, the District must reduce its expenditures and/or enhance its revenues by $23.1 million in 2017-18. These amounts are based on the latest (January 2017) State budget projections from the Department of Finance. The Governor will announce any revision to the 2017-18 budget proposal in May 2017, and these amounts may change accordingly based on the funding for Proposition 98. Please see page 94 of the Second Interim Budget Report for details. Staff recommends a "Positive Certification" which certifies that, based upon current projections and sets of assumptions, the District will meet its financial obligations for the current fiscal year and subsequent two fiscal years. See full presentation here.
Approved proposed expenditure reductions and other recommended budget solutions - Following the direction of the Board, staff revised the proposed budget reductions and developed other recommended solutions for consideration. The following documents, attached to this agenda item, are set forth as Exhibits A-D:
Exhibit A - Alternative Budget Cut Proposals 2017-18 Revised Clean Copy
Exhibit B - Proposed Budget Cuts 2017-18 - incorporates original budget recommendations from February 22, 2017 with proposed alternatives highlighted in bold/underline format
Exhibit C - Proposed Budget Cuts Presentation - Revised Clean Copy
Exhibit D - Proposed Budget Cuts Presentation - incorporates original budget recommendations from February 22, 2017 with proposed alternatives highlighted in bold/underline format
Board votes to accept proposal and to maintain current class size of 24:1 TK-2 and 28:1 grade 3, and sweep the CTE so it is proportionately the same for the next three years at 3%.
Approved reduction of particular kinds of services for Certificated Employees - Staff recommended the issuance of a layoff for two Elementary Assistant Principals; Leitch and Parkmont. This recommended reduction in staffing has been appropriately processed pursuant to the California Education Code. Read Resolution here.
Received information about the California School Dashboard - The California School Dashboard is part of California's new accountability and continuous improvement system that provides information about how local educational agencies and schools are meeting the needs of California's diverse student population based on a concise set of measures. The Dashboard contains reports that display the performance of local educational agencies (LEAs), schools, and student groups on a set of state and local measures to assist in identifying strengths, weaknesses, and areas in need of improvement. See presentation here.
Authorized staff to enter into an agreement with Vavrinek, Trine, Day and Company for Auditing Services - The District is required to have its financial statements audited on an annual basis. The auditor conducts an audit in accordance with auditing standards generally accepted in the United States, government auditing standards issued by the Comptroller General of the United States, and standards and procedures for audits of California K-12 local educational agencies. The District issued a request for proposal for annual audits for a period of three years with the option to renew for up to two, one-year renewal options. Bid documents can be accessed by clicking here. On February 10, 2017, at 2:00 PM, eight (8) sealed proposals were submitted to the District to provide auditing services (pricing chart attached). Upon evaluation of the proposals and contacting references, staff recommends entering into an agreement with VTD for auditing services.
Approved the revised Citizens' Bond Oversight Committee (CBOC) Bylaws - At the February 1, 2017, CBOC meeting, the members voted unanimously to recommend changes to the committee bylaws to cover attendance. The revised language on page 5 is included in the attachment.
See Video of entire meeting here
The Board’s next Regular Meeting is scheduled for Wednesday, March 22nd, 6:30pm (time subject to change), at the District Office Board Room – 4210 Technology Dr. – in Fremont.