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

This item presents an Agreement for Services between San Rafael City Schools, Venetia Valley and SLAM Consults for two days of coaching and professional development in Restorative Practices and Using Circles Effectively during the 2018-2019 school year, for Board review and recommended approval.

Background: Venetia Valley Student Engagement & School Climate Goal:  Venetia Valley staff recognize, validate, and celebrate students, families and one another for who they already are and support each stakeholder, with every available resource, to become all that they aspire to be. With a growth mindset, staff are committed to providing a rigorous, differentiated, and culturally-relevant academic experience that empowers students and fosters the skills, traits, and mindsets needed for college and career readiness.

From day one, participants will learn a range of strategies they can use every day to build on Venetia Valley Student Engagement & School Climate Goals. They'll learn how to set high expectations while being supportive for each stakeholder. They will practice how to provide direct feedback and how to ask questions that foster accountability and growth mindset.  They will also learn the most effective methods to resolve common conflicts.

Steven Lam of SLAM Consult will devote the second day entirely to teaching attendees to facilitate restorative circles. Circles are an essential process for building social capital, resolving social problems and responding when harm occurs. Circles create a positive learning environment. They will learn by participating in circles with other attendees, taking turns to learn how to facilitate. By the end of the day, participants will be prepared to return to their setting and run their first circle.

In addition to the two day training, Steven will provide several hours consulting/coaching services to Lauren Menchavez and/or one other instructional coach regarding implementation of Restorative Practices. Steven will look over the schools strategic plan for school culture and climate and provide feedback in regards to Restorative Practices Implementation for the school year. 

Current Consideration: Approval of Agreement for Services between San Rafael City Schools, Venetia Valley and SLAM Consults for two days of coaching and professional development in Restorative Practices and Using Circles Effectively during the 2018-2019 school year.

Exhibit A 

Cost of services not to exceed $5,000 to be paid from Venetia Valley site funds.

01-0910-0-5200.00-1511-1000-092-120-000

Approval of Agreement for Services between San Rafael City Schools, Venetia Valley and SLAM Consults for two days of coaching and professional development in Restorative Practices and Using Circles Effectively during the 2018-2019 school year.

This item presents the Independent Contractor Agreement for Special Services between San Rafael City Schools, San Pedro and Kelsey Chandler for coaching and professional development focused on implementing social emotional and trauma informed practices August 2018-June 2019, for Board review and recommended approval.

Background: Kelsey Chandler has worked in education for the last 9 years, where she has led school and program-wide development and implementation of Social Emotional Learning (SEL), Trauma-Informed Practices and Restorative Practices (RP). Her work focuses on integrating social, emotional, and relational elements into classroom practice and the entire school community through a student-centered approach. Kelsey's work has included: Co-founding a school site Wellness Center, strategic design and implementation of SEL practices, coaching and consultation with site administrators and teachers, facilitation of social emotional and social justice focused curricula for whole classes and small groups of students. Kelsey has also provided professional development in Social Emotional Learning, Trauma-Informed Practices, and Restorative Practices.  

Current Consideration: This item presents the Independent Contractor Agreement for Special Services between San Rafael City Schools, San Pedro and Kelsey Chandler for coaching and professional development focused on implementing social emotional and trauma informed practices August 2018-June 2019 for Board review and recommended approval. 

Exhibit A - Independent Contractor Agreement for Special Services  

Cost of coaching and professional development services not to exceed $70,000 to be paid from site funds.

01-0910-0-5840.00-1110-1000-095-120-000

Approval of the Independent Contractor Agreement for Special Services between San Rafael City Schools, San Pedro and Kelsey Chandler for coaching and professional development focused on implementing social emotional and trauma informed practices August 2018-June 2019. 

This item presents Independent Contractor Agreement for Special Services between San Rafael City Schools, Bahia Vista and Soul Shoppe for school-wide social emotional learning program during the 2018-2019 school year, for Board review and recommended approval.

Background: Soul Shoppe's mission is to create safe learning environments that bring forth a culture of compassion, connection and curiosity—eliminating bullying at the roots. Innovative, interactive and highly effective programs give the entire school community an experience of empathy, transforming not only behaviors, but the very ways we see each other.

Soul Shoppe programs support kids by giving conflict resolution tools that allow them to support each other as allies.  In addition to working with students, Soul Shoppe supports the entire school community through the creation and facilitation of dynamic staff-development training that give teachers the necessary tools to foster academic growth and social-emotional learning, as well as parent workshops and resources.

Soul Shoppe-inspired paradigm shift creates a sustained climate of safety. Fun, easily-integrated training allow people to embody what they’ve learned on a daily basis, from one interaction to the next.

Current Consideration: The Peacemaker Program is a Student Leadership program that trains a team of 3rd, 4th and 5th grade Peacemakers to solve problems and provide ally ship and communication support on the playground and in the classroom. The Program  includes yard duty/classified training, liaison support meetings, and a recess support day.

Program Description: Plus Elevate Empathy Package, Peacemaker Program, Staff In-Service, and Parent Night.

Approval of Independent Contractor Agreement for Special Services Between San Rafael City Schools, Bahia Vista and Soul Shoppe for School-wide Social Emotional Learning Program During the 2018-2019 School Year. 

Exhibit A

Cost of services not to exceed $18,050 to be paid by site PTA funds.

01-0001-0-5740.00-1110-3600-090-120-000

Approval of Independent Contractor Agreement for Special Services between San Rafael City Schools, Bahia Vista and Soul Shoppe for school-wide social emotional learning program during the 2018-2019 school year.

The Board and Public are provided an opportunity for the second reading of revisions to the BP and AR 1250 Visitors, for recommended approval. 

BACKGROUND: This policy and regulation are being udpated to reflect changes in the law regarding the presence of sex offender on campus and the principal indicating on the written permission the date(s) and times for which permission has been granted to reflect Penal Code 626.81, as amended by SB 326 (Ch. 279, Statutes of 2013). The policy revision also adds Board philosophy about the importance of parent/guardian and community involvement in school programs and activities, and encourages individuals to use complaint procedures and to avoid disruptive behavior on school grounds.  The reorganized regulation adds requirement to post school hours.

Also included in this revision is model policy statement language from the Attorney General regarding all visitors, which would include immigration officers, to register at the school office. 

None.

Approval of revisions to the BP and AR Visitors

The Board and public are provided an opportunity for a second review of revisions to the BP and AR 1312.3 UCP, with recommendation for Board approval. 

None.

Approval of revisions to Board Policy and Administrative Regulation 1312.3 Uniform Complaint Procedure

The Board and public are provided with an opportunity for a second reading review of revisions to the Board Policy and the deletion of Administrative Regulation 5111 Admission, for recommended approval. 

BACKGROUND: This policy is being updated to reflect state law prohibiting the collection of social security numbers or the last four digits of the social security numbers of students or their parents/guardians, unless otherwise required by law. The policy also reflects new law (AB 699) which prohibits districts from inquiring into students' citizenship or immigration status and the California Attorney General's model policy which provides that, under the limited circumstances when such information must be collected to comply with eligibility requirements for special state or federal programs, such information should be collected separately from the school enrollment process. The policy update also reflects a requirement of the Attorney General's model policy that prohibits districts from requiring documentation that may indicate a student's national origin or immigration status, such as a passport, to the exclusion of other permissible documentation. It also  reflects the authority to accept a parent/guardian affidavit as evidence of a child's age when other documentation is not available.

After consultation with legal counsel, language from the regulation has been incorporated into the policy and  is recommended for deletion.

None. 

Approval of revisions to BP 5111 and deletion of AR. 

This item presents the 2017-2020 Local Control Accountability Plan for the San Rafael Elementary District, for recommended approval. 

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 LCFF and LCAP intentionally allow districts the flexibility and authority needed to serve students based on specific need and local context.

CURRENT CONSIDERATION:

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.

The SBE unanimously adopted a new and improved LCAP template, which went into effect for the 2017-18 school year. This template remains for the LCAP this year. The template contains the following sections:

1. Plan Summary
2. Annual Update
3. Stakeholder Engagement
4. Goals, Actions and Services: An updated and fixed (non-rolling) three-year display
5. Improved Services for Unduplicated Students
6. Instructions

The LCAP must be structured around eight key state priorities:

• Basic Services
• Implementation of the CCSS
• Parental Engagement
• Student Achievement
• Student Engagement
• School Climate
• Course Access
• Other Student Outcomes

It is important to note that the LCAP is no longer a "rolling plan;" it is instead a “fixed” three-year document with two annual updates. This year, it is considered an "annual update" year, which allows us to focus on analyzing the plan and making modifications as appropriate. It had been a rolling three-year document, rewritten every year. Now, most planning and priority setting will take place every three years. As such, the document remains the “2017-2020 Local Control Accountability Plan,” with updates to all sections except for the 2017-18 columns in the Goals, Actions and Services section.

To help shape these documents, SRCS leadership and staff have engaged the SRCS community. The center of our engagement work this year was our LCAP Stakeholder Engagement Taskforce. The Taskforce was comprised of representatives for parents, teachers, students, labor management, Board members, community members and administration. They met several times throughout the school year.

Additionally, the LCAP Parent Advisory Committee (PAC) consults, reviews and comments on the District’s LCAP. The PAC meetings are designed specifically for SRCS parents to give input on the goals, actions and services in the LCAP. They held an initial meeting in January to provide feedback on the goals. A second meeting was held on May 31 with the Superintendent to review and provide feedback on the draft LCAP.

Furthermore, as part of our engagement work, we have conducted sessions for teachers, staff and students, and leveraged existing committees, such as DELAC and Budget Advisory Committees.

This year, a significant aspect of the stakeholder engagement and revisions were dedicated to streamlining and organizing initiatives so the documents better reflect how we are serving students and teachers and how we can improve.

Due to the large file size, the Preliminary 2017-2020 Local Control Accountability Plan for the Elementary School District document can be viewed in the link below. 

Google Drive via the following link: 

https://drive.google.com/drive/folders/12RqFrEsruZesXrz2uvopaPd2MNIwHQ8j?usp=sharing

Approval of the 2017-2020 Local Control Accountability Plan for the San Rafael Elementary District.

This item presents the 2017-2020 Local Control Accountability Plan for the San Rafael High School District, for recommended approval.

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 LCFF and LCAP intentionally allow districts the flexibility and authority needed to serve students based on specific need and local context.

CURRENT CONSIDERATION:

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.

The SBE unanimously adopted a new and improved LCAP template, which went into effect for the 2017-18 school year. This template remains for the LCAP this year. The template contains the following sections:

1. Plan Summary
2. Annual Update
3. Stakeholder Engagement
4. Goals, Actions and Services: An updated and fixed (non-rolling) three-year display
5. Improved Services for Unduplicated Students
6. Instructions

The LCAP must be structured around eight key state priorities:

• Basic Services
• Implementation of the CCSS
• Parental Engagement
• Student Achievement
• Student Engagement
• School Climate
• Course Access
• Other Student Outcomes

It is important to note that the LCAP is no longer a "rolling plan;" it is instead a “fixed” three-year document with two annual updates. This year, it is considered an "annual update" year, which allows us to focus on analyzing the plan and making modifications as appropriate. It had been a rolling three-year document, rewritten every year. Now, most planning and priority setting will take place every three years. As such, the document remains the “2017-2020 Local Control Accountability Plan,” with updates to all sections except for the 2017-18 columns in the Goals, Actions and Services section.

To help shape these documents, SRCS leadership and staff have engaged the SRCS community. The center of our engagement work this year was our LCAP Stakeholder Engagement Taskforce. The Taskforce was comprised of representatives for parents, teachers, students, labor management, Board members, community members and administration. They met several times throughout the school year.

Additionally, the LCAP Parent Advisory Committee (PAC) consults, reviews and comments on the District’s LCAP. The PAC meetings are designed specifically for SRCS parents to give input on the goals, actions and services in the LCAP. They held an initial meeting in January to provide feedback on the goals. A second meeting was held on May 31 with the Superintendent to review and provide feedback on the draft LCAP.

Furthermore, as part of our engagement work, we have conducted sessions for teachers, staff and students, and leveraged existing committees, such as DELAC and Budget Advisory Committees.

This year, a significant aspect of the stakeholder engagement and revisions were dedicated to streamlining and organizing initiatives so the documents better reflect how we are serving students and teachers and how we can improve.

Due to the large file size, the Preliminary 2017-2020 Local Control Accountability Plan for the Elementary School District document can be viewed in the link below. 

Google Drive via the following link: 

https://drive.google.com/drive/folders/12RqFrEsruZesXrz2uvopaPd2MNIwHQ8j?usp=sharing

Approval of the 2017-2020 Local Control Accountability Plan for the San Rafael High School District.

A Public Hearing was held on June 25, 2018 for the community and Board to hear and review the Elementary School District draft budget for the 2018-19 fiscal year. The Board is presented with the  Elementary School District Adopted Budget for the 2018-2019 fiscal year, for recommended approval. 

2017-18 Budget Revisions

In June of each year, the Board of Education will adopt the Budget for all funds within the District.  During the fiscal year, the “working” budget for all funds in the District are monitored on a regular basis.  Individual accounts are revised throughout the year in response to changes in information from external sources such as the State & Federal governments or the Marin County Office of Education; from local sources, such as local granting agencies; and from internal sources, such as staffing changes in both classified and certificated positions within the District.         

The revised budget is then brought before the Board of Education at various times throughout the year for review and approval of the changes between the major revenue and expenditure accounts.  These modifications are brought before the Board in the form of a “Budget Revision” incorporated into the 1^st and 2^nd Interim Reports. 

The following are details of some changes since the 2^nd Interim Report:

Unrestricted & Restricted Revenues:

The Local Control Funding Formula (LCFF) revenue has been recalculated based on P-2 ADA and the percentage of students eligible for Free & Reduced Meal (FRM). In addition, the budgets for the property tax estimates, which were provided in the J-29B from the MCOE and the Marin County Auditor-Controller’s Office in May, have been updated to reflect this information with an offset to State Aid.  The District will receive final information on these taxes during the closing process this summer. 

The budgets for State Aid (8011) have been adjusted for the revised LCFF calculations along with Education Protection Account Funds (8012). 

The budget for Mandated Cost Reimbursements has been adjusted based on actual receipts (one-time) for the mandate backlog and lottery has been adjusted based on current estimates. 

The budgets for Other State/Federal Revenues were adjusted for updated information. 

The budgets for Interest Earnings were adjusted based on year-to-date receipts. Other local revenues have increased due to local donations received by the various school sites and budgeted accordingly.   

The budget for Parcel Tax revenues was adjusted based on current estimates and an increase in the number of senior exemptions.

Contributions to restricted programs increased in large part due to revised estimates for special education transportation and increases to the Excess Cost Billback from MCOE. 

Expenditures & Restricted Programs:

During the past several weeks, the budgets for Salaries and Employee Benefits have been revised to reflect staffing changes for both certificated and classified staff including reductions for open positions.  The District continues to monitor and reconcile Position Control to Human Resources records and Payroll and the budget has been updated accordingly. Since this is the final budget revision of the year some step placement changes have also occurred. 

Negotiations have not been settled with the certificated SRTA and classified CSEA bargaining groups or unrepresented employees for 2018-19.  The salaries and statutory benefits have been adjusted for the cost of step and column increases for all employees.

The budgets for Materials & Supplies and Other Operating Expenditures have been reviewed and updated for current estimates.  The budget in the restricted programs has been adjusted in order to budget estimated carryover for materials and supplies for the upcoming school year as well as Parcel Tax carryover to support programs in 2018-19. The restricted budget for Grants was reduced in order to be included in the 2018-19 Adopted Budget.   

The budgets for Services and Other Operating Expenditures have been adjusted for current estimates based on site and department requests and specifically, as local donations have been received.  In addition, the budget has been adjusted for increases and/or decreases in special education contracts, settlement agreements, and special education transportation. The unrestricted budget for Professional Consulting Services was increased to include contracts specifically aligned to the LCAP and for Professional Development. Substitute costs were adjusted with a saving offset from open positions not filled. The restricted budget for Other Contract Services, Professional Consulting Services, Sub-Agreements and Travel and Conferences include adjustments in various grants. 

The budget for “All Other Transfers” was increased for the transfer of former HSD Marin Pupil Transportation Authority (MPTA) funds that will flow through the San Rafael City Elementary District in order to avoid having the funds “swept” via the Fair Share calculations for the San Rafael City High School District (- $153,718).                                                                                               

CURRENT CONSIDERATIONS: As the 2017-18 Budget revision indicates, San Rafael City Elementary School District’s General Fund Budget reflects a positive ending fund balance.  It does, however, also reflect deficit financing in both the “unrestricted” and “restricted” General Fund Budget.  This is created in large part by one-time expenditures, “spending down” prior year carryover and will be eliminated in the upcoming budget year. Included are revisions for the General Fund and all of the Other Funds.  All of the ending fund balances are projected to be positive. 

 2018-19 Budget and Assumptions

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 21, 2018. This Adopted Budget is being presented to the Board for final review and approval.

During the months prior to June, the staff works diligently to collect data necessary to be included in the upcoming budget.  This information comes from several sources, including the State, the Federal Government, and the Marin County Office of Education, the SELPA, the County of Marin, the Marin Schools Insurance Authority and other various local sources.  This information is incorporated into the budget in the form of budget assumptions.  Some of these assumptions are preliminary and may change once information is finalized at the State, Federal & local levels.

The Budget Advisory Committee was convened in October 2017 and has met monthly through May 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 approved by the State on September 15, 2017.

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

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 continues 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 Interim budget revision being brought to the Board in the fall.

As the Budget indicates, based on the assumptions included in the Governor’s May Revise, the MCOE LCFF Calculator and the Marin Common Message, the San Rafael City Elementary School District will be able to meet its financial obligations for the current and two subsequent years.

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

Approval of the 2017-18 Budget revisions the adopt approval of the final San Rafael Elementary School District 2018-19 Budget.

A Public Hearing was held on June 25, 2018 for the community and Board to hear and review the High School District draft budget for the 2018-19 fiscal year. The Board is presented with the High School District Adopted Budget for the 2018-2019 fiscal year and Budget Revisions for the 2017-18 fiscal year, for recommended approval. 

2017-18 Budget Revisions

BACKGROUND:   In June of each year, the Board of Education will adopt the Budget for all funds within the District.  During the fiscal year, the “working” budget for all funds in the District are monitored on a regular basis.  Individual accounts are revised throughout the year in response to changes in information from external sources such as the State & Federal governments or the Marin County Office of Education; from local sources, such as local granting agencies; and from internal sources, such as staffing changes in both classified and certificated positions within the District.

The revised budget is then brought before the Board of Education at various times throughout the year for review and approval of the changes between the major revenue and expenditure accounts.  These modifications are brought before the Board in the form “Budget Revision” incorporated into the 1^st Interim and 2^nd Interim Reports.

Unrestricted & Restricted Revenues:

The Local Control Funding Formula (LCFF) has been recalculated based on P-2 ADA and the percentage of students eligible for Free & Reduced Meal (FRM). District of Choice calculations have been adjusted in line with current projections.  Once the P-2 Certification with District of Residence information is released in August, the LCFF estimates will be used for the final calculations.

The LCFF calculations confirm that the San Rafael High School District will continue to be a “Basic Aid” District with funding from the State for District of Choice student (DOC) attendance being reduced from 70% to 25% effective 7/1/2017.  As a “Basic Aid” District, the majority of funding comes from property tax estimates.  The budgets for property tax revenues have been adjusted for information provided in the J-29B from the MCOE and the Marin County Auditor-Controller’s office in May.  The District will receive final information on these taxes during the closing process and will calculate the final LCFF based on the tax information, P-2 and annual ADA for MCOE Special Education (NPS & SDC) and District of Choice ADA along with other factors included in the LCFF calculations.

With the passage of Proposition 30, a new account was added last year in order to account for these funds.  It is important to note that although Proposition 30 did not generate any new funds for LCFF funded Districts, it did increase the minimum guarantee by $200 per ADA.  This increase benefited Basic Aid districts by generating additional revenue and creating a new fund to account for the revenues and expenditures of these funds.  This is reflected in the Education Protection Account (8012).

The budget for Mandated Cost Reimbursements has been adjusted based on actual receipts (one-time) for the mandate backlog and lottery has been adjusted based on current estimates.

The budgets for Other State/Federal Revenues were adjusted for updated information with only minor adjustments necessary.

The budgets for Interest Earnings were adjusted based on year-to-date receipts.  Other local revenues have increased due to local donations received by the various school sites and budgeted accordingly. 

The budget for Parcel Tax revenues was adjusted based on current estimates and an increase in the number of senior exemptions.

Contributions to restricted programs increased in large part due to changes in estimated costs for Special Education transportation, increases in MCOE Excess Cost for "Billback" program and services and adjustments in contract services budgeted for NPS and NPA.

Expenditures & Restricted Programs:

During the past several weeks, the budget for Salaries and Employee Benefits has been revised to reflect staffing changes for both certificated and classified staff including reductions for open positions.  The District continues to monitor and reconcile position control to Human Resources records and Payroll and the budget has been updated accordingly. 

Negotiations have not been settled with the certificated SRFT and classified CSEA bargaining groups or unrepresented employees for 2018-19. Due to the current and ongoing deficit spending in the HSD budget, District staff are not able to budget or assign funds for future COLA increases. The salaries and statutory benefits have been adjusted for the cost of step and column increases for all employees 

The budgets for Materials & Supplies have been reviewed and updated for current estimates along with local donations to support purchases at the school sites.  In addition, restricted program budgets have been reduced in order to budget estimated carryover for materials and supplies for the upcoming school year as well as Parcel Tax carryover to support programs in 2018-19.  The restricted budget for Grants was also reduced in order to be included in the 2018-19 Adopted Budget. 

The budgets for Services and Other Operating Expenditures have been adjusted for current estimates based on site and department requests and specifically as local donations have been received.  In addition, the restricted budget has been adjusted for increases and/or decreases in special education contracts, settlement agreements, MCOE Billback, and transportation.

A budget transfer was recognized for $153,718 for the reallocation of former HSD Marin Pupil Transportation Authority (MPTA) funds that flow through the SRESD in order to avoid having the funds “swept” via the Fair Share calculations.

CURRENT CONSIDERATIONS: As the 2017-18 Budget revisions indicate, the SRHSD General Fund Budget continues to reflect deficit spending. Although the District was able to recognize savings from items mentioned above, the projected unrestricted budget deficit is projected to be ($1,736,087) in comparison to our 2^nd Interim reported deficit of ($1,970,991).

2018-19 Adopted Budget

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 21, 2018. This Adopted Budget is being presented to the Board for final review and approval.

During the months prior to June, staff works diligently to collect data necessary to be included in the upcoming budget.  This information comes from several sources, including the State, Federal Government, Marin County Office of Education, SELPA, County of Marin, Marin Schools Insurance Authority and other various local sources.  This information is incorporated into the budget in the form of budget assumptions.  Some of these assumptions are preliminary and may change once information is finalized at the State, Federal & local levels.

The Budget Advisory Committee was convened in October and has met monthly through May 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 September 15, 2017.

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

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 $1.3 million annually and are not restored by the LCFF even though these reductions were initially implemented as one-time. Fortunately, the Marin County housing market is recovering with the May 31st tax estimates from the County Tax Assessors Office estimating increases of approximately 5.38% (net HSD increase projected at 5%) for 2018-19. 

While this is welcome news, the level of growth in student population continues to increase creating the need for 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 developing actions to address the needs of our target “at-risk” population of students, is creating fiscal challenges.  Many of the expenditures included in the budget were identified during the LCAP process and needs assessment and were based on community input.  Many of these 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.

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 to fully fund LCFF and eliminate the “GAP” funding. The State COLA is proposed to be 2.71% 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 $168 per ADA or approximately $430,000 for the HSD.

For the HSD, changes to general purpose revenues are primarily due to estimated changes in property tax revenues based on a 5% growth rate. EPA State funding is projected to remain unchanged. The HSD is also authorized as a Basic Aid “District of Choice” District. The original District of Choice (DOC) legislation was scheduled to sunset on 6/30/17 and provide 70% funding for current DOC students enrolled through 6/30/18. DOC was reauthorized with the 2017 Budget Adoption but reduce funding from 70% to 25% effective 7/1/2017. This new DOC funding formula reduces revenues from $284,000 in 16-17, to approx. $90,000 in 2017-18 and is projected to be $40,000 in 18-19. The District will follow Board Policy for existing and future DOC Interdistrict student placement within 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.

Within this dynamic and ever-changing fiscal environment, staff continues 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.

As the Preliminary Budget indicates, based on the assumptions included in the Governor’s May Revise, the MCOE LCFF Calculator and the MCOE Common Message, the San Rafael City High School District will be able to meet its financial obligations for the current and two subsequent years. 

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

Approval of the Adopted Budget for the San Rafael High School District for the 2018-19 fiscal year and the final Budget Revision for the 2017-18 fiscal year.