Agenda Item
Meeting Date: 5/28/2020 - 4:00 PM
Category: Business/Action Items
Type: Action
Subject: 11.6 MDUSD 2019-20 Third Interim Report
LCAP (Local Control Accountability Plan) Goal:
Goal 1: All students will receive a high quality education in a safe and welcoming environment with equitable and high expectations, access to technology, and instruction in the California State Standards that prepare them for college and/or career.
Goal 2: High quality, culturally proficient, and responsive staff will provide engaging instruction respectful of all students' backgrounds to ensure they are college and/or career ready.
Goal 3: Parents, family, and community will be informed, engaged and empowered as partners with Mt. Diablo Unified to support student learning.
Policy:
Enclosure: 19-20 Third Interim Report
19-20 Third Interim Presentation
File Attachment:
2019-20 Third Interim Report.pdf
MDUSD 3rd Interim & May Revise.pdf
Summary: The District’s Third Interim Report for 2019-20 covers the financial and budgetary status of the district for the period ending April 30, 2020.

Education Code Section 42130 requires school districts to prepare interim financial reports each year. The First Interim Report covers the period ending October 31; the Second Interim Report covers the period ending January 31; and Third Interim Report covers the period ending April 30, 2020. This report does not fully capture the impact of COVID-19 as the shutdown impacted the full reconciliation of all accounts which will be completed at the unaudited actuals. These financial reports are subject to standards and criteria adopted by the State Board of Education to monitor the fiscal stability of local educational agencies.

The district shall certify whether it is able to meet its financial obligations for the current fiscal year and, based on current forecasts, for the two subsequent years. A positive certification shall be assigned when a district meets its financial obligations for the current fiscal year and two subsequent fiscal years. A qualified certification shall be assigned when a district may not meet its financial obligations for the current fiscal year and subsequent two years. A negative certification shall be assigned when a district will be unable to meet its financial obligations for the remainder of the fiscal year.

The District will still need to identify additional cuts for the 2021-22 school year based on the Governor’s May Revision and COVID-19 impacts on the economy are finalized. In a best-case scenario of a 2.31% COLA and a further reduction of 10%, the District will need to identify cuts of approximately $10 million for the 2020-2021 school year.

The new magnitude of the State and national economy will alter the target and require the District to take more measures to remain fiscally solvent including all efforts to maintain reserves to mitigate unexpected reductions of State funding. While the scope of the State budget crisis could be indeed dire, there is still many methods that the State could utilize to maintain viability of K-12 education and the fact that the most information may not be available until early in the Fall there is not enough finite information to adjust the current financial certification of the district lower than qualified.
Funding:
Fiscal Impact None
Recommendation: Based upon the need to continue to make reductions for the 2021-2022 school year and the anticipated reduction of funding from the State the recommendation is approval of the Third Interim Report for 2019-20 with a Qualified Budget Certification.
Approvals:
Recommended By:
Signed By:
Niccole Helton - Administrative Assistant
Signed By:
Dr. Lisa Gonzales - Chief Business Officer
Signed By:
Robert Martinez - Superintendent