The Budget Timeline
The budget process of a school district requires the district to produce and adopt a budget by June 30 for the upcoming year. The Board is required to certify twice each year that the district is able to meet its financial obligations during the year. The two intermediary reports afford the district the opportunity to adjust the budget’s revenues and expenditures based on the current climate and events. The First Interim Report reflects activities for July 1 – October 31 and is adopted by December 15. The Second Interim Report covers July 1 – January 31 and is adopted by March 15. By September 15, the district publishes the Unaudited Actual based on July 1 – June 30 of the previous year.
2018 – 2019 Budget Highlights
The projected General Fund Unrestricted ending balance for 2018-2019 is $25,600,399, which is a 34.37% reserve, with total revenues at $74,863,972 and total expenditures at $74,495,201. The surplus for the 2018-2019 year is $368,771.
A few of the more material changes to the ongoing budget include: addition of an elementary Math Coach, changing the middle school schedule to eight-period days for more flexibility for electives and the addition of co-teaching, continuation of Sheltered Instruction Observation Protocol (SIOP), creation of Parent Engagement Program to fund Parent University and other parent education programs, and the increase to one full-time School Community Engagement Facilitator (SCEF) at each site. The proposed budget also includes the additional four At-Risk Supervisors to support the elementary schools (2018-2019 school year only).
Multi-Year Projection (MYP) and Reserves
The District relies heavily on the local property tax growth for projected revenues, as a community-funded district. The past three years saw double-digit growth in the assessed valuation of Mountain View. As of budget adoption, the growth over prior year as of May 1, 2018 for the upcoming school year is 4.3%. The District has used 7% as the assumption for growth for the 2018-2019 budget.
The reserve calculation continues to be a point of significance. The recommendation from various education organizations, such as School Services of California, the California Association of School Business Officials, and the Association of California School Administrators, is for districts to carry higher than minimum reserves due to the volatility of State revenues; cash management; and dependency on parcel taxes, to name a few. School Services of California and the Government Finance Officers Association both recommend a minimum of 17% reserves. The Board of Trustees approved Resolution number 1664.1/18 on January 4, 2018 to establish unrestricted reserve levels be between 17%-20% in year three of any budget adoption or interim budget report.
The 2018-2019 May Revision from Governor Brown and Department of Finance warn of the pending economic downturn, as a positive 2018-2019 will tie the longest recovery period in California. In the next two years, many events could significantly affect MVWSD.
- Changing needs of students and families
- Curriculum adoption
- Local assessed value and property tax growth
- Continued STRS and PERS increases
- Labor negotiations
- Strategic Plan implementation
- Developer Fee revenues
- COP Annual payments
- Boundary implementation and facilities’ needs
- Continued growth in Mountain View housing construction
Staff presented the draft 2018-2019 Budget Adoption at the May 31, 2018 board meeting and conducted a public hearing.
Fund 01 General Fund:
Unrestricted Beginning Balance: $24,669,335
Total Revenues: $74,863,972
Total Expenditures: $74,495,201
Unrestricted Ending Balance: $25,600,399
Estimated Reserve: 34.4%
That the Board of Trustees approve the 2018-2019 Budget, as presented.