Board Briefs for Tuesday, December 11, 2018
At a reception before the meeting, newly re-elected Board members Linda Canlas and Sarabjit Cheema were honored and sworn in.
At Tuesday night’s meeting, the Board elected its new President and Clerk. Sharan Kaur, a member of the Board since 2016, was elected to serve as the Board’s President. Linda Canlas, a member of the Board since 2010, was elected to serve as the Board’s Clerk.
The Board also voted to keep the scheduled Board meeting dates and Open Session start time of 6:30 p.m. but did vote to move up the start time of Closed Session from 5:45 p.m. to 5:30 p.m. in order to accommodate the Board’s business.
At that same meeting, Chief Business Officer Annette Heldman presented the 2018-19 First Interim Report for approval. The First Interim Report represents our District's financial activities from the beginning of the fiscal year through the end of October.
In her report, Ms. Heldman highlighted the ongoing pressures on the budget which include the years-long trend of declining enrollment and the District’s increasing obligation to the State’s pension fund. Ms. Heldman reminded the Board that unless the funding model changes, no “new monies” other than Cost of Living Adjustments (COLA) are expected in 2019-20 and beyond, as the State had met its statutory funding level this year under the Local Control Funding Formula (LCFF). To New Haven, based on current State revenue projections and District enrollment and attendance data, the COLA for 2019-20 is approximately $400,000.
Ms. Heldman shared that the first interim report includes budget adjustments that increased the projected ending balance by $2.1 million, $1.2 million of which was derived from higher than estimated ending balance from the previous year. The $2.1 million increase in net position however was offset by $1.1 million in cost increases that transpired after the budget was adopted. This results in net savings of approximately $1 million. Ms. Heldman explained that while this improved the ending balance, it’s not nearly enough to offset the projected deficit for the 2019-20 school year.
Based on the updated revenues and expenditures, the District is projecting a $4 million budget shortfall for fiscal year 2019-20. In addition to the $4 million budget shortfall, the First Interim Report includes a designation of $1 million to address District priorities as determined by the Board. However, the aforementioned shortfall will increase to $5 million should the Board decide to allocate these funds.
Ms. Heldman warned that failure to make the necessary cuts for the 19-20 school year would only exacerbate the problem in the out years possibly impeding the District’s ability to certify a three-year balanced budget, which would in the District going into State receivership.
The agenda for Tuesday night’s meeting can be found here.
The Board will hold their regularly scheduled meetings on the first and third Tuesday of the month. Please see the list of dates below:
January 15, 2019
February 5, 2019
February 19, 2019
March 5, 2019
April 16, 2019
May 7, 2019
June 4, 2019
June 18, 2019