💰 Budget study session: the May Revision and CVUSD's 2020/2021 budget

On Tuesday, June 2, 2020, the Chino Valley Unified Board of Education held a special meeting, a budget study session, with Andrew Cruz, Christina Gagnier, Irene Hernandez-Blair, James Na and Joe Schaffer all attending via Zoom 1. The only study item was "Governor's May Revision and Impact on CVUSD Budget 2020/2021 Budget and Beyond" 2. Superintendent Norm Enfield gave an overview of the session's objectives, and Associate Superintendent of Business Services Sandra Chen presented an in-depth PowerPoint on the district's trends and patterns, the drivers of its revenues and expenditures, the governor's May revision, the 2020/2021 budget and beyond, and next steps 11. The minutes record no action and no board discussion of the item 1.

This page follows the signed minutes, which the board approved on June 18, 2020 3. Names appear only where those minutes put them. Dollar figures and percentages come from the meeting recording; the slides are not in this archive, and the captions garble some numbers.

🧭 Why the session was held

In the overview the minutes credit to Superintendent Enfield, the recording explains that districts must bring a budget to their boards in June, before the state's final budget is settled, so they build that first proposal on the governor's May Revision 4. He called it "not the final budget": the projection would come to the board as an information item on Thursday, June 4, with approval sought on June 18 44. Once the state had a final budget, staff planned another study session showing the actual cuts, likely in July or August, with the income tax deadline moved to July 15 adding to the wait 44.

The governor had released the May Revision on May 14 against what the California School Boards Association called a pandemic-induced $54 billion state budget deficit, and CSBA reported Governor Gavin Newsom's statement that if the federal government acted, "these cuts would go away" 5.

📉 Trends and cost drivers

Chen's presentation began with the district's history:

• Enrollment. Enrollment has declined for years, and because the state funds districts on attendance rather than enrollment, the decline means fewer resources even with attendance near 96.5 percent of enrollment 66.
• Revenue. Estimated 2019/2020 revenues were just under $307 million, and the Local Control Funding Formula (LCFF) supplies about 95 percent of the unrestricted side 6.
• Spending. Salaries and benefits take 87 percent of unrestricted expenditures 7, and the employer contribution rate for CalSTRS had reached 17.1 percent 8.

🏛️ What the May Revision would mean for CVUSD

Chen said the state's main revenue sources had each fallen by more than 20 percent, leaving a projected $54 billion state deficit 9. The proposals that reach school districts were suspending the cost-of-living adjustment, a 10 percent LCFF cut, a 50 percent cut to many categorical programs, and deferred cash payments 10.

• LCFF. The net effect was a 7.92 percent cut in LCFF revenue, roughly $23 million a year and ongoing, though the cuts would be "triggered off" if federal money arrived 11.
• Cash deferral. Holding the June apportionment until July, which Chen called a "budgeting gimmick," would delay about $26 million to the district by roughly ten days 1212.
• Relief. The governor proposed buying down two years of CalPERS and CalSTRS rates 13 and raising the special education base grant, worth about $2.1 million to CVUSD 13. Federal CARES Act money could add about $3.8 million one-time if the district's application succeeded, plus about $6.8 million one-time for students with disabilities 131414.

On the hope of more federal help, Chen told the board that "school districts do not have the luxury of building a budget based on hope," so the district would build on the May Revision's assumptions 1414.

📊 The multi-year projection

• Reserve. The reserve for economic uncertainty was set at $25 million, which Chen described as a little above the statutory minimum but "not even enough for a one month expenditure" 15.
• Deficit spending. The projection showed $16.8 million of deficit spending in 2020/2021, closer to $27 million without the roughly $11 million of one-time revenue that offsets it 16.
• Third year. By the third year the district could not show the county its required reserve, which the recording calls a "third year insolvency" 16.

Chen listed concerns sharpened by COVID-19: a state budget that could still change, the uncertain pace of economic recovery, employer pension contributions, cash flow, the cost of reopening schools, and continued declining enrollment 1717.

⏭️ Next steps

Chen said the board had to approve a budget by July 1, the county would report its approval status by August 15, and a budget showing a third-year deficit would need a plan shared with the county by the first interim report in December 1717. Board policy sets the same deadline: "The Board shall adopt the District budget on or before July 1 of each year" 18.

The session drew comment from employee leaders two days later. According to the June 4 minutes, A.C.T. President Brenda Walker thanked the District and Sandra Chen for the comprehensive budget study session 19. CSEA President Danny Hernandez spoke about the study session and hoped for some federal and state relief 19. CHAMP President Tom Mackessy acknowledged staff on the budget presentation 19. The public hearing on the 2020/2021 budget that night drew no speakers 19. On June 18 the board adopted the 2020/2021 budget for all funds 20.

📧 Public comment

One email comment was read into the record 1. The minutes record that K. Lou submitted an email comment regarding budget cuts and preserving elementary intervention teacher positions 1. Because the minutes list a single commenter, this page does not summarize the comment beyond that description.

🕰️ Meeting record

President Schaffer called the meeting to order at 4:30 p.m., and Irene Hernandez-Blair led the Pledge of Allegiance 1. Six administrators attended virtually, including Superintendent Enfield and Associate Superintendent Chen 1. Under the pandemic advisory, the public could comment by email between noon and 2 p.m. that day, with comments read into the record 2. The meeting adjourned at 5:40 p.m. 1. This page does not summarize the rest of the recording.