Board President Rachel Kertz, Vice President Greg Knell, Trustee Linda M. Jackson, Trustee Maika Llorens Gulati, Trustee Natu Tuatagaloa

Staff and Board will recognize outgoing Chief Business Official Chris Thomas. 

That the Board reviews the services.

BACKGROUND:
The Marin County Schools Data Processing Consortium provides data processing and network services to Marin County Public Schools for QSS (Quintessential School System) business and financial systems This agreement will commence on July 1, 2016 and continue through June 30, 2017.

CURRENT CONSIDERATIONS:
The QSS business and financial systems for the San Rafael Elementary District and the San Rafael High School District includes some of the following services: payroll production, annual W2 and 1099 production, accounts payable production, QSS general ledger, purchasing, financial reports, fixed assets, employee absence tracking, position control, credential reports and problem resolutions. They will also provide hardware and software contract maintenance, user support and help desk.

The Board will consider approval of the employment contract for the Deputy Superintendent from July 1, 2016 - June 30, 2019. 

The positions of Superintendent, Deputy Superintendent Chief Financial Officer are each employed under a contracted employment agreement, and serve at the will of the Board. Each of these positions are funded fifty percent by the Elementary School District and fifty percent by the High School District. 

The term of each employment contract establishes an effective date and an ending date. This board item is for approval of the contract for Deputy Superintendent, Instruction, Equity and Social Justice, beginning July 1, 2016 - June 30, 2019.

The contract will be attached to this item prior to the meeting and will be available for the public at the Board meeting. 

Approval of the contract.

The Board will consider approval of the employment contract for the Assistant Superintendent from July 1, 2016 - June 30, 2019. 

The positions of Superintendent, Deputy Superintendent, Assistant Superintendent and Chief Financial Officer are each employed under a contracted employment agreement, and serve at the will of the Board. Each of these positions are funded fifty percent by the Elementary School District and fifty percent by the High School District. 

The term of each employment contract establishes an effective date and an ending date. This board item is for approval of the contract for Assistant Superintendent, Human Resources beginning July 1, 2016 - June 30, 2019. 

The contract will be attached to this item prior to the meeting and will be available for the public at the Board meeting. 

Approval of the contract.

BACKGROUND:            

Board Policy 3290 Section 1.1 states:

“The Board of Education may accept on behalf of, and in the name of the District, such gifts, donations, bequests and devices as are offered. Such gifts, cash contributions, donations, bequests and devices may be made subject to conditions or restrictions as the Board of Education may prescribe and/or accept.” (Education Code 41030-41032)

The following donations were received for the San Rafael City Schools District, as follows:

CURRENT CONSIDERATIONS: 

This agenda item presents the donations from the sources listed above, for recommended Board acceptance.

COST/FUNDING SOURCE: Total of donations: $980.00          

Acceptance of the donations.

This item presents for Approval of the 2016-2019 Local Control Accountability Plan for the San Rafael Elementary District.

BACKGROUND INFORMATION: The Local Control Funding Formula (LCFF) and Local Control and Accountability Plan (LCAP) together create a direct connection between student outcomes and fiscal expenditures. They were developed as a structure to put into local hands the challenging and essential work of designing a coherent, effective educational system based on measurable strategies and actions. Through a process of data analysis and consultation, districts work with the community to articulate a vision and set priorities.  

The LCAP is a critical part of what makes LCFF work to support student success. The funding formula for education made by LCFF was carefully constructed in order to support the goal of increased transparency and accountability. The development and sharing of the LCAP is how LCFF supports these goals.

The LCAP is first and foremost about creating a comprehensive plan that will guide how a district and its schools support student success. It is intended to be a document that is brief, easy to understand, and contains key information about how the District plans to act and spend funding to address state and local priorities for student success. Similar to a strategic plan, the emphasis is on creating a document that shares the story and context of how the District plans to achieve its mission and vision.

The LCAP must include LCFF funds received by a local educational agency and can include other funds if such information is helpful. Each LCAP is expected to include information about the goals, services, and spending plan that address the needs of all pupils and each targeted population of students.

Furthermore, the LCAP must reflect specific goals for school sites, which may be districtwide or called out by individual site. The LCAP does not replace existing site plans. Rather it is expected that the LCAP and site plans are aligned and that site level advisory groups are informed about and have been engaged in providing input to the development of the LCAP.

The LCFF and LCAP intentionally allow districts the flexibility and authority needed to serve students based on specific need and local context. The very structure of LCAP reinforces the idea that one size does not fit all.

CURRENT CONSIDERATION: Beginning in 2014-15, the State Board of Education (SBE) adopted regulations that offer guiding principles as well as provide an LCAP template that Districts are required to use.

The LCAP must include district annual goals that are aligned to the eight state priorities and specific actions a district will take to ensure that academic performance improves. Student achievement goals will be based on the expectations of the Common Core State Standards, Next Generation Science Standards, and California English Language Development Standards.

The SBE guidance states that the LCAP should be:

• Simple: avoids duplication, jargon, and non-essential information
• Transparent: demonstrates how LCFF funding supports student performance
• Local: expects information to be highly contextual and support a local story
• Performance-focused: emphasizes student performance outcomes and avoids compliance-oriented information

This development guide is based on the three sections of the LCAP:

1. Section 1 – Stakeholder Engagement: asks for information about Stakeholder Engagement and how this has contributed to the development of the LCAP.
2. Section 2 – Goals, Actions, Expenditures, and Progress Indicators: describes goals for the LEA and school sites and explains how progress will be monitored; includes an Annual Update section.
3. Section 3 – Use of Supplemental and Concentration Grant funds and Proportionality: describes how supplemental and concentration grant funds will be used districtwide to address the goals from Section 2 and justifies these expenditures as the most effective use of funds to meet the district’s goals for unduplicated pupils in the state and any local priority areas.

The LCAP must be structured around eight key state priorities:

• Basic Services

Compliance with Williams requirements: appropriate teacher assignment, sufficient instructional materials, and facilities in good repair.

• Implementation of the CCSS

Implementation of the academic content and performance standards adopted by SBE, including how the programs and services will enable English learners to access the common core academic content standards and the English Language Development standards.

• Parental Engagement

Parental involvement, including efforts the school district makes to seek parent input in making decisions for the school district and each individual school site, and including how the school district will promote parental participation in programs for economically disadvantaged pupils, English learners, foster youth, and individuals with exceptional needs.

• Student Achievement

Pupil achievement as measured by multiple indicators including, but not limited to, assessment data, college readiness, and language proficiency.

• Student Engagement

Pupil engagement as measured by multiple indicators including, but not limited to, rates associated with attendance, chronic absenteeism, dropout (middle and high school), and high school graduation.

• School Climate

School climate as measured by multiple indicators including, but not limited to, pupil suspension and expulsion rates as well as other local measures assessing safety and school connectedness.

• Course Access

The extent to which pupils have access to, and are enrolled in, a broad course of study that includes core subject areas (i.e., English, mathematics, social science, science, visual and performing arts, health, physical education, career and technical education, etc.), including the programs and services developed and provided to economically disadvantaged pupils, English learners, foster youth, and individuals with exceptional needs.

• Other Student Outcomes

Pupil outcomes, as available, in the subject areas comprising a broad course of study.

This board item presents for public review and comment the Preliminary Local Control Accountability Plan for the San Rafael Elementary School District. The plan includes a description of the LCAP community engagement and involvement process, goals, progress indicators chosen as metrics, a description of specific actions, services and related expenditures, and an Annual Update.

The PAC was established in 2014-15 as a two-year committee. The PAC continued its work this year, with its initial meeting in December 2015. PAC members were invited to attend and participate in the LCAP Stakeholder Taskforce sessions, which had a series of meetings from January through April 2016. The Taskforce consisted of representatives from various stakeholder groups throughout the District, including parents, teachers, staff, students and community groups. The PAC reconvened in June 2016 to review the draft LCAP and submit questions to the Superintendent. Feedback and input from the PAC, LCAP Stakeholder Taskforce and various stakeholder groups has been incorporated into the presented draft. 

Approval of the 2016-2019 Local Control Accountability Plan for the San Rafael Elementary District.

This item presents for Approval of the 2016-2019 Local Control Accountability Plan for the San Rafael High School District.

BACKGROUND INFORMATION: The Local Control Funding Formula (LCFF) and Local Control and Accountability Plan (LCAP) together create a direct connection between student outcomes and fiscal expenditures. They were developed as a structure to put into local hands the challenging and essential work of designing a coherent, effective educational system based on measurable strategies and actions. Through a process of data analysis and consultation, districts work with the community to articulate a vision and set priorities.  

The LCAP is a critical part of what makes LCFF work to support student success. The funding formula for education made by LCFF was carefully constructed in order to support the goal of increased transparency and accountability. The development and sharing of the LCAP is how LCFF supports these goals.

The LCAP is first and foremost about creating a comprehensive plan that will guide how a district and its schools support student success. It is intended to be a document that is brief, easy to understand, and contains key information about how the District plans to act and spend funding to address state and local priorities for student success. Similar to a strategic plan, the emphasis is on creating a document that shares the story and context of how the District plans to achieve its mission and vision.

The LCAP must include LCFF funds received by a local educational agency and can include other funds if such information is helpful. Each LCAP is expected to include information about the goals, services, and spending plan that address the needs of all pupils and each targeted population of students.

Furthermore, the LCAP must reflect specific goals for school sites, which may be districtwide or called out by individual site. The LCAP does not replace existing site plans. Rather it is expected that the LCAP and site plans are aligned and that site level advisory groups are informed about and have been engaged in providing input to the development of the LCAP.

The LCFF and LCAP intentionally allow districts the flexibility and authority needed to serve students based on specific need and local context. The very structure of LCAP reinforces the idea that one size does not fit all.

CURRENT CONSIDERATION:

Beginning in 2014-15, the State Board of Education (SBE) adopted regulations that offer guiding principles as well as provide an LCAP template that Districts are required to use.

The LCAP must include district annual goals that are aligned to the eight state priorities and specific actions a district will take to ensure that academic performance improves. Student achievement goals will be based on the expectations of the Common Core State Standards, Next Generation Science Standards, and California English Language Development Standards.

The SBE guidance states that the LCAP should be:

• Simple: avoids duplication, jargon, and non-essential information
• Transparent: demonstrates how LCFF funding supports student performance
• Local: expects information to be highly contextual and support a local story
• Performance-focused: emphasizes student performance outcomes and avoids compliance-oriented information

This development guide is based on the three sections of the LCAP:

1. Section 1 – Stakeholder Engagement: asks for information about Stakeholder Engagement and how this has contributed to the development of the LCAP.
2. Section 2 – Goals, Actions, Expenditures, and Progress Indicators: describes goals for the LEA and school sites and explains how progress will be monitored; includes an Annual Update section.
3. Section 3 – Use of Supplemental and Concentration Grant funds and Proportionality: describes how supplemental and concentration grant funds will be used districtwide to address the goals from Section 2 and justifies these expenditures as the most effective use of funds to meet the district’s goals for unduplicated pupils in the state and any local priority areas.

The LCAP must be structured around eight key state priorities:

• Basic Services

Compliance with Williams requirements: appropriate teacher assignment, sufficient instructional materials, and facilities in good repair.

• Implementation of the CCSS

Implementation of the academic content and performance standards adopted by SBE, including how the programs and services will enable English learners to access the common core academic content standards and the English Language Development standards.

• Parental Engagement

Parental involvement, including efforts the school district makes to seek parent input in making decisions for the school district and each individual school site, and including how the school district will promote parental participation in programs for economically disadvantaged pupils, English learners, foster youth, and individuals with exceptional needs.

• Student Achievement

Pupil achievement as measured by multiple indicators including, but not limited to, assessment data, college readiness, and language proficiency.

• Student Engagement

Pupil engagement as measured by multiple indicators including, but not limited to, rates associated with attendance, chronic absenteeism, dropout (middle and high school), and high school graduation.

• School Climate

School climate as measured by multiple indicators including, but not limited to, pupil suspension and expulsion rates as well as other local measures assessing safety and school connectedness.

• Course Access

The extent to which pupils have access to, and are enrolled in, a broad course of study that includes core subject areas (i.e., English, mathematics, social science, science, visual and performing arts, health, physical education, career and technical education, etc.), including the programs and services developed and provided to economically disadvantaged pupils, English learners, foster youth, and individuals with exceptional needs.

• Other Student Outcomes

This board item presents for public review and comment the Preliminary Local Control Accountability Plan for the San Rafael Elementary School District. The plan includes a description of the LCAP community engagement and involvement process, goals, progress indicators chosen as metrics, a description of specific actions, services and related expenditures, and an Annual Update.

The PAC was established in 2014-15 as a two-year committee. The PAC continued its work this year, with its initial meeting in December 2015. PAC members were invited to attend and participate in the LCAP Stakeholder Taskforce sessions, which had a series of meetings from January through April 2016. The Taskforce consisted of representatives from various stakeholder groups throughout the District, including parents, teachers, staff, students and community groups. The PAC reconvened in June 2016 to review the draft LCAP and submit questions to the Superintendent. Feedback and input from the PAC, LCAP Stakeholder Taskforce and various stakeholder groups has been incorporated into the presented draft. 

BACKGROUND:      

The District is required to adopt a budget for all funds prior to June 30th each year.  This action must be taken after the Board has held a “public hearing”, which provides the public with an opportunity to comment on the budget. Under the State regulations for the Local Control Funding Formula (LCFF) and the Local Control Accountability Plan (LCAP), the Public Hearing on the budget and the LCAP must happen at a public Board meeting prior to the meeting in which the Budget and the LCAP will be presented to the Board for formal approval.  In compliance with the Education Code and the Brown Act, the District must provide notice of the Public Hearing 10 days prior to the Board Meeting, and the budget must be available for review 72 hours in advance.  The District provided the appropriate notice and the budget was available for review on Thursday, June 23, 2016.  The public hearing on the Budget was held on June 27, 2016.

The Budget Advisory Committee was convened in October 2015 and has met monthly through May 19th  of this year.  This committee reviewed information on various sources of District revenues, types of expenditures, contractual or mandated obligations and expenditures outside of the control of the District (e.g. utilities, insurance and payroll driven costs) as well as discussing the potential implications of the new Local Control Funding Formula (LCFF) and the new Local Control Accountability Plan (LCAP) that was adopted by the State in July 2013.

The process for the annual update of the new Local Control Accountability Plan (LCAP) started in January, which is when staff began working on Year 0 (2015-16 annual update of Section 2 of the LCAP).

In addition, the Parent Advisory Committee (PAC), required by the State regulations, was established and began meeting in conjunction with the LCAP Task Force.

The LCAP is a three-year plan with 3 sections; Section 1, which describes the process of stakeholder engagement; Section 2, which identifies the District Goals, Progress Indicators that include the needs that were identified and the metrics to measure progress toward addressing these needs.  It also describes the actions, services and expenditures ($$) for all three years to address the District defined goals as well as meeting all Eight State Priorities.  This year, Section 2 adds a new element identified as the “Annual Update” for year 0 in which the District provides information on what was actually accomplished and expended in the current year (2015-16) in support of the Goals from the prior year LCAP – Year 1.  Section 3 specifically articulates how the needs of the target population (EL, Foster Youth, and Low Income Students) are met by providing increased or improved services over the base level of service for all students.  It also includes information on proportionality, in which the District must demonstrate that the funds included in the LCFF specifically generated by the Supplemental and Concentration grants are proportionate to the level of increased or improved services for EL/Low Income & Foster youth students.

It is important to remember that this plan must be affordable and developed in compliance with the State regulations, which require the use of the template. In Section 2 of the LCAP, all of the year 1 actions that are defined and that have a cost or specific expenditure associated with them, must be included in the District’s budget.

The assumptions, which include the expenditures identified in year 1 of Section 2 of the LCAP and other major assumptions have been incorporated into the Adopted Budget and are attached for the upcoming school year. 

The following is a list of the various funds included in the Adopted Budget, all of which are projected to have a positive ending fund balance:

• General Fund                                                                          $  9,583,156

• Child Development Fund 12                                                   $                0

• Cafeteria Fund 13                                                                   $       65,001

• Deferred Maintenance Fund 14                                             $     126,793                                       

• Special Reserve-Post Employee Benefit Fund 20                 $  2,498,714

• Building Fund 21                                                                     $18,765,001

• Capital Facilities Fund 25 (Developer Fees)                          $     131,998

• Building Fund Prop 1A/SB50 Fund 35                                    $                0

• Reserve for Capital Outlay Fund 40   (Facilities Use Fees)   $  1,212,938                                                     

• Debt Service Fund 51 (Pending information from Auditor-Controller’s Office)

CURRENT CONSIDERATIONS:    

The Governor’s May Revise was not significantly different from the Governor’s January budget proposal for K-12 education in concept as there were no new programs added.  The Governor continued to support Local Control Funding Formula (LCFF) as a key component of the State budget proposal with an increase in the percentage of “GAP” funding @ 54.84%.  The State COLA was reduced to 0% and there was new, but reduced one-time funding to support the ongoing implementation of Common Core State Standards (CCSS) and other important programs through a second year of repayment of the old mandate backlog that the State owes to public schools.  This one-time funding is estimated to be $214 (down from $237 in the May Revise) per ADA or approximately $1 million for the SRESD. 

For more detailed information on the Governor’s May Revise, see The Marin Common Message – Executive Summary issued by the Marin County Office of Education attached.

Within this dynamic and ever-changing fiscal environment, staff continue to work to identify changes or modifications in information both from the State and Federal governments that will then be incorporated into the budget during the 1^st budget revision being brought to the Board in the fall.

There were minor changes included in the budget based on new accounting information released from the State, adjustments to the one-time State Mandated funds and related one-time expenditures and feedback received from the Board at the Public Hearing ($25K budget added for facilitation of the Middle School Grades Task Force).  However, there are no significant changes to the Ending Fund Balance.  As the 2016-17 Budget indicates, based on the assumptions included in the Governor’s May Revise and in the School Services of California Dartboard (see detailed assumptions attached), the San Rafael City Elementary School District will be able to meet its financial obligations for the current year.

This agenda item presents the Adopted Budget to the Board for review and approval and in support of the LCAP for the 2016-17 Fiscal Year.

DISTRICT REPORTS:

• Narrative

• Budget Assumptions

• 2016-17 Budget Adoption Reserves Document

• Pie-charts & Bar-graphs

• Comparative Spreadsheets

• Enrollment and ADA Projections

  STATE REPORTS:

• Budget Certifications

• Workers Compensation Certification

• Table of Contents

• General Fund 01 Unrestricted and Restricted

• Fund forms for All Other Funds

• Average Daily Attendance

• Multi-year Projections Schedule of Capital Assets

• Schedule of Long-Term Liabilities

• Cash Flow Schedule

• Summary of Interfund Activities (Budget & Actuals to Date)

• Lottery Report

• Current Expense Formula (Form CEB/CEA)

• Criteria & Standards for the General Fund 01

• Technical Review Checklists (2015-16 Budget and 2014-15 Estimated Actuals)

In addition, staff is recommending the final Budget Revision #4 for the 2015-16 fiscal year that includes minor changes from Budget Revision #3 (approved by the Board on June 13^th) and adjusts various SACS accounts to ensure compliance with the State SACS software and avoid exceptions in the SACS Technical Review (TRC).

COST/FUNDING SOURCE: In compliance with GASB 54, the components of the ending fund balance are as follows:

    Non-spendable

Revolving Cash                                                           $       2,500

            Stores Inventory                                              $              0

            Prepaid Expenditures                                      $              0

    Restricted                                                               $            <1>

    Committed                                                              $              0

    Assigned (Board Designated)

Contingency for Cash Flow                                $ 1,100,000 

Contingency CCSS & SB Assessments                        $ 1,300,000

    Unassigned/Unappropriated

Reserve for Economic Uncertainties                    $ 2,705,182  5% Reserve

Available Balance over Reserves                         $ 4,475,476

Total Ending Fund Balance                                 $9,583,156

Approval of the Adopted Budget for the San Rafael High School District for the 2016-17 Fiscal Year and the final Budget Revision #4 for 2015-16.

That the Board reviews the HSD budget for the 2016-17 fiscal year and Budget Revision #4 for 2015-16, for recommended approval.

BACKGROUND:      

The District is required to adopt a budget for all funds prior to June 30th each year.  This action must be taken after the Board has held a “public hearing”, which provides the public with an opportunity to comment on the budget. Under the State regulations for the Local Control Funding Formula (LCFF) and the Local Control Accountability Plan (LCAP), the Public Hearing on the budget and the LCAP must happen at a public Board meeting prior to the meeting in which the Budget and the LCAP will be presented to the Board for formal approval.  In compliance with the Education Code and the Brown Act, the District must provide notice of the Public Hearing 10 days prior to the Board Meeting, and the budget must be available for review 72 hours in advance.  The District provided the appropriate notice and the budget was available for review on Thursday, June 18, 2015.  The public hearing on the Budget was held on June 22, 2015.

The Budget Advisory Committee was convened in October 2014 and has met monthly through May 20^th of this year.  This committee reviewed information on various sources of District revenues, types of expenditures, contractual or mandated obligations and expenditures outside of the control of the District (e.g. utilities, insurance and payroll driven costs) as well as discussing the potential implications of the new Local Control Funding Formula (LCFF) and the new Local Control Accountability Plan (LCAP) that was adopted by the State in July 2013.  Although the San Rafael City High School District is a “Basic Aid” District, primarily funded by local property taxes and as such, receiving little or no funding from the State, the District is still subject to all of the requirements and obligations for the LCAP.

The process for the annual update of the new Local Control Accountability Plan (LCAP) started in January with the State making numerous revisions to the format for the LCAP until the final version was released in December.  Staff began working on Year 0 (2014-15 annual update of Section II of the LCAP over winter break). Once the new “revised” template was in place, the District started an inclusive process of community meetings and forums to provide information on the LCFF and the LCAP and collect feedback, specifically on the year two (2) (2014-15 LCAP) actions, services, and expenditures, as this would become the foundation for building Year 1 for the 2015-16 LCAP Update. Time was also spent refining the LCAP/District Goals from 9 to 5 goals and gathering input from the community.

In addition, the Parent Advisory Committee (PAC), as required by the State regulations, was established and began meeting in February.

The LCAP is a three-year plan with three sections; section 1, which describes the process of stake holder engagement; section 2, which identifies the District Goals and Progress Indicators that include the student needs and the metrics to measure progress toward addressing these needs.  It also describes the actions, services and expenditures ($$) for all three years to address the District defined goals as well as meeting all Eight State Priorities.  This year, Section II adds a new element identified as the “Annual Update” for year 0 in which the District provides information on what was actually accomplished and expended in the current year (2015-16) in support of the Goals from the prior year LCAP – Year 1. 

Section 3 specifically articulates how the needs of the target population (EL, Foster Youth, and Low Income Students) are met by providing increased or improved services over the base level of service for all students.  It also includes information on proportionality, in which the District must demonstrate that the funds included in the LCFF specifically generated by the Supplemental and Concentration grants are proportionate to the level of increased or improved services for EL/Low Income & Foster Youth students. The funds generated by the supplemental and concentration grants (estimated at $1,258,349) cannot be used for base services including increases in salary and benefits. They must be used to increase or improve services for our target population of students whose ADA provides these supplemental funds through the LCFF. The 2015-18 LCAP Update reflects that the district is improving or increasing services for our target population of students by a total amount of $1,721,300 which exceeds the minimum proportionality by approximately $483,000.

It is important to remember that this plan must be affordable and developed in compliance with State regulations, which require the use of the template. In Section 2 of the LCAP, all of the Year 1 actions that are defined and that have a cost or specific expenditure associated with them, must be included in the District’s budget.

The assumptions, which include the expenditures identified in Year 1 of Section 2 of the LCAP Update and other major assumptions have been incorporated into the 2016-17 Budget and are attached for the upcoming school year. 

The following is a list of the various funds included in the Adopted Budget, all of which are projected to have a positive ending fund balance: 

• General Fund                                                                              $5,658,594
• Adult Education Fund 11                                                            $   167,108
• Cafeteria Fund 13                                                                       $     16,885
• Deferred Maintenance Fund 14                                                  $   133,780
• Special Reserve-Post Employee Benefit Fund 20                      $1,999,799
• Building Fund 21                                                                         $1,455,241
• Capital Facilities Fund 25 (Developer Fees)                               $   166,764
• Special Reserve for Capital Improvements Fund 40(Prop 39)    $             0
• Debt Service Fund 51 (Pending information from Auditor-Controller’s Office)

CURRENT CONSIDERATIONS:    

It is important to note that although the San Rafael High School District is a “basic aid” District and therefore not typically impacted significantly by State budget proposals, the LCFF calculations and the LCAP are still required even though there is no additional funding provided by the State.  It is also important to remember that over the past several years of State budget cuts, Basic Aid Districts were impacted by “fair-share” budget reductions from the State through the reduction and/or elimination of various State categorical programs. These fair-share reductions resulted in the loss of revenues of approximately $1.3 million annually and have not been restored by the LCFF even though these reductions were initially implemented as one-time.

Fortunately, the Marin County housing market is continuing to recover with local property tax estimates estimated to increase by approximately 6% for 2016-17.

While this is welcome news, the level of growth in student population continues to increase creating the need for 3-4.0 FTE teachers as well as other costs associated with educating more students.  That combined with the costs associated with significant STRS rate increases, the ongoing implementation of CCSS and Smarter Balanced Assessment tests, as well as developing the Year 1 actions to address the needs of our target “at-risk” population of students, is creating some fiscal challenges. Many of these Year 1 expenditures also help to ensure that the District can meet the proportionality requirements by demonstrating that the level of increased or improved services for EL/Low Income students is proportionate to the supplemental grant funds calculated by the LCFF ($1,258,349). They must be used to increase or improve services for our target population of students whose ADA provides these supplemental funds through the LCFF. The 2015-18 LCAP Update reflects that the district is improving or increasing services for a total amount of $1,731,200 which exceeds the minimum proportionality by approximately $473,000.

The Governor’s May Revise was not significantly different from the Governor’s January budget proposal for K-12 education in concept as there were no new programs added.  The Governor continued to support Local Control Funding Formula (LCFF) as a key component of the State budget proposal with a large increase in the percentage of “GAP” funding @ 53.08%.  The State COLA was reduced to 1.02% and there was new one-time funding to support the ongoing implementation of Common Core State Standards (CCSS) and other important programs through a repayment of the old mandate backlog that the State owes to public schools.  This one-time funding is estimated to be $601 per ADA or approximately $1.35 million for the SRHSD. 

For more detailed information on the Governor’s May Revise, see The Marin Common Message – Executive Summary issued by the Marin County Office of Education, attached.

As a Basic Aid, and a “District of Choice” District, the San Rafael High School District can expect to receive a slight improvement in revenues from the State.  Although under the LCFF, there is no new revenue for Basic Aid Districts, who will continue to be funded primarily from local property taxes, the funds from the District of Choice program continue to be included for the District of Residence for the students on Inter-District Transfers. This results in approximately $390,000 in additional revenues annually.

For more detailed information on the Governor’s May Revise, see The Marin Common Message – Executive Summary issued by the Marin County Office of Education attached.

Within this dynamic and ever-changing fiscal environment, staff continue to work to identify changes or modifications in information both from the State and Federal governments that will then be incorporated into the budget during the 1^st Budget Revision being brought to the Board in the fall.

There were minor changes included in the budget based on new accounting information released from the State.  However, there are no significant changes to the Ending Fund Balance.  As the Adopted Budget and multi-year projections indicate, based on the assumptions included in the Governor’s May Revise and local property tax estimates, the San Rafael City High School District will be able to meet its financial obligations for the current year and two subsequent fiscal years.

This agenda item presents the Adopted Budget to the Board for review and approval and in support of the LCAP for the 2016-17 Fiscal Year.

            DISTRICT REPORTS:

• Narrative
• Budget Assumptions
• 2016-17 Budget Adoption Reserves Document
• Pie-charts & Bar-graphs
• Comparative Spreadsheets
• Enrollment and ADA Projections

STATE REPORTS:

• Budget Certifications
• Workers Compensation Certification
• Table of Contents
• General Fund 01 Unrestricted and Restricted
• Fund forms for All Other Funds
• Average Daily Attendance
• Multi-year Projections Schedule of Capital Assets
• Schedule of Long-Term Liabilities
• Cash Flow Schedule
• Summary of Interfund Activities (Budget & Actuals to Date)
• Lottery Report
• Criteria & Standards for the General Fund 01
• Current Expense Formula (Form CEB/CEA)
• Technical Review Checklists (2016-17 Budget and 2015-16 Estimated Actuals)

In addition, staff is recommending the final Budget Revision #4 for the 2015-16 fiscal year that includes minor changes from Budget Revision #3 (approved by the Board on June 8^th) and adjusts various SACS accounts to ensure compliance with the State SACS software and avoid exceptions in the SACS Technical Review (TRC).

COST/FUNDING SOURCE:  In compliance with GASB 54, the components of the ending fund balance are as follows:

    Non-spendable

                Revolving Cash                                              $       5,500

            Stores Inventory                                             $              0

            Prepaid Expenditures                                     $              0

    Restricted                                                              $              2

    Committed                                                             $              0

    Assigned (Board Designated)

                Contingency for Cash Flow                           $  1,100,000 

                Contingency CCSS & SB Assessments        $                0

    Unassigned/Unappropriated

                Reserve for Economic Uncertainties             $3,199,365 10% Reserve

                Available Balance over Reserves                  $1,353,729

                Total Ending Fund Balance                            $5,658,594  

Adoption of the HSD budget for the 2016-17 fiscal year and approval of Budget Revision #4 for 2015-16.

The Board will have an opportunity, as needed, to review the status of trustee goals as they relate to operational items that may require a study session.