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. 

 

2017 – 2018 Budget Highlights

The projected General Fund Unrestricted ending balance for 2017-2018 is $18,852,081, which is a 27.1% reserve, with total revenues at $66,641,072 and total expenditures at $69,607,311.  The operational deficit for the 2017-2018 year is $2,966,239.

 

For the new school year, some major changes will take place.  The District will add a second Assistant Principal at Graham and counselors at both middle schools.  The expansion of the Response to Instruction program to all elementary sites includes the addition of 8 full time teachers.  The budget also assumes the adoption of an early language acquisition program. The 2017-2018 budget adoption cycle includes the 2019-2020 school year, which will see the opening of Slater Elementary School with an approximate $700,000 annual operational cost for ancillary staff only. 

 

Multi-Year Projection (MYP)

On May 2, 2017, Mountain View voters supported Measure B Parcel Tax at 71.97% approval.  The new parcel tax will contribute approximately $2.8 million per year for ten years (2017-2027).  The additional revenue will help the overall financial picture of the District, as local property tax growth has started to wane.  As a community-funded district (basic aid), the District relies heavily on the local property tax growth for projected revenues to address increasing expenditures.  The past two years saw double-digit growth in the assessed valuation of Mountain View.  As of budget adoption, the growth as of May 1, 2017 for the upcoming school year is 5.5%. 

 

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 recommends approximately 17% reserves.

 

The 2017-2018 May Revision from Governor Brown and Department of Finance warn of the pending economic downturn and “cuts are coming over the new few years.”  The Association of California School Administrators advises, “…fiscal discipline and restraint while issuing several warnings of risks to state’s economy.”  In the next two years, many events could significantly affect MVWSD:

• Local assessed value and property tax growth
• Continued STRS and PERS increases
• Labor negotiations
• Strategic Plan implementation
• Developer Fee revenues
• COP annual payments