Placentia-Yorba Linda school district trustees approve report with 'positive certification' for finances; reserves will be needed to balance budget

A state-required report on finances has been approved by the Placentia-Yorba Linda school district's five elected trustees with a “positive certification,” indicating the district will meet its financial obligations for the current fiscal year and two subsequent fiscal years.

The report, the first of two mandated documents for 2018-19, was submitted to Orange County Superintendent of Schools Al Mijares by a mid-December deadline, with figures “based upon current projections.”

Again this year, the district will use a portion of a fund designated as a “reserve for future deficits” to balance the budget that anticipates spending some $5.6 million more than the district projects in revenue by the end of the fiscal year June 30.

Next year's estimated shortfall is nearly $4.6 million and a bit more than $5 million the year after. The total of all reserve funds balances this year is projected to be about $33.1 million, dropping to some $27.9 million next year and about $22 million the year after.

The district estimates that a fund “designated for economic uncertainties” will remain at about $14 million, or 5 percent of expenditures, throughout the three-year period. This year's spend-ing is expected to be about $286 million and $280 million and $285 million the next two years.

Most expenses are for salaries and benefits. This year's certificated salaries are pegged at nearly $123 million, classified salaries a bit more than $41 million and employee benefits at nearly $74 million. The “books and supplies” budget line is projected at nearly $19.5 million.

The report's “summary of facts and assumptions” section notes average daily attendance for this year is estimated at 24,390, dropping a bit to 24,267 next year and 24,144 the year after.

Also noteworthy in the report are the various payroll expense rates. The district's contribution to the State Teachers' Retirement System is 16.28 percent this year, rising to 18.13 next year and 19.1 percent the year after.

The Public Employee Retirement System rate is 18.062 percent this year, 20.7 percent next year and 23.4 percent the year after. Others: 6.2 percent Social Security, 1.45 percent Medi-care, 0.05 percent unemployment insurance and 1.3 percent workers compensation.

The report was prepared for trustees by district directors Dinah Neri (business services) and Phuong Tran (fiscal services).

Although the current contract with the district's teachers runs through June 2020, the district and teacher bargaining unit are opening the wages and benefits section for negotiations this year.

The posted salary schedule for this school year ranges from $50,145 for a fully credentialed first-year teacher to $108,802 for a 28-year veteran with specific graduate education credits.

Also, trustees have renewed an incentive for teachers for early notification of resignation or retirement: $2,000 if provided by Jan. 11 and $1,000 if provided by March 1.