In an extremely short 58-minute Burbank School Board Meeting at City Hall the key topic was the 45-Day Budget Revision, the 2022-2023 Final State Budget Update, the multi-year projection and questions.
Debbie Kutka, the Assistant Superintendent, Administrative Services, spoke and presented a PowerPoint slide show.
According to the projection, the revenue available for 2022-2023 is $214,690,681.
The expenses and other financing sources and uses are $194,945,763. The operating surplus is $19,744, 918.
The beginning fund balance is $40,760,905 and the ending fund balance is $60,505,822.
The 45-day budget revenue increases for the year are $31,686,744.
For the year 2023-2024 the projected revenue is expected to be $194,930,082 and the expenses are $188,771,562. The operating surplus is $6,158,520.
The beginning fund balance is $60,505,822 and the ending fund balance is $66,664,342.
The 45-day budget revenue increases for the year are $41,672,689.
Projected revenue for the year 2024-2025 is $196,472,371 and the expenses are $192,146,210 and the operating surplus is $4,326,161.
For that same year the beginning fund balance is $66,664,342 and the ending fund balance is $70,990,503.
The 45-day budget revenue increases for the year are $51,544,709.
The Burbank Unified School District’s 2022-2023 budget was developed based on the information from the Governor’s May Revision Budget.
The 2022-2023 Budget Act was signed into law by Governor Gavin Newsom on June 27, 2022, and it contained significant differences from the May revised budget.
With the state looking at possible recession in the future, the impact on the final budget was to provide more one-time funding.
Approximately 60 percent of new total Proposition 98 funding as well as kindergarten through grade 12 and community college new funding is used for the one-time investments.
There is a rule: Don’t spend one-time funding on ongoing expenditures, e.g., salaries.
With regard to the local control funding formula, it is as follows:
1) Final budget increased the cost-of-living adjustment from 6.56 percent to 12.84 percent.
2) Additional benefit from an ongoing provision allowing the average of three prior years’ average daily attendance in calculating apportionments.
3) Districts offering independent study in 2021-2022 may benefit from a one-year ADA [average daily attendance] mitigation to shield them from attendance declines in the 2021-2022 school year.
Another factor is Local Control Funding Formula (LCFF) Declining ADA:
1) Student enrollment decline accelerated due to COVID-19.
2) Attendance rates are also on the decline due in part to COVID-19.
3) The 2022-2023 budget Trailer Bill (Assembly Bill 181) includes two significant changes to ADA used for LCFF funding calculations to mitigate ADA losses for the District.
A) Ongoing change to ADA used for LCFF funding calculation.
B) One-time attendance yields adjustment, with conditions.
There will be available for art, music and instructional materials a discretionary block grant of $8,849,630.