Superintendent's Newsletter
January 11, 2020
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Ten Things to Know About the MBUSD Budget
MBUSD is one of the top school districts in the state and the nation. Whether it is our standardized test scores, our achievements in athletics and the arts, college and career preparedness for our students, our school rankings by Newsweek and other organizations, or the array of awards we have received in so many areas, we are proud of our students, our employees, and our community. But as we plan ahead and budget for the next few years, we have financial challenges and shortfalls that must be addressed. Even though next year's state education budget is projected to increase, the expenses all districts (including MBUSD) must incur are rising at a much faster rate.
On
Wednesday, January 15 at 4:30 PM
, the MBUSD Board of Trustees will be holding a workshop to discuss the 2020-21 budget and get community input at that meeting.
A decade ago, when I first came to MBUSD, I wrote a piece called “Ten Things to Know About the MBUSD Budget.” We have had ten excellent years, but our current budget challenges necessitate a 2020 version. So here are
Ten Things to Know About the MBUSD Budget in 2020
:
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1. MBUSD is facing tough decisions this year:
- MBUSD reserves have steadily declined from 28% of the general fund in 2011 to less than the required 3% next year unless we make $3 million in reductions this year and more in future years
- $3 million equates to approximately 30 layoffs for the 2020-21 school year
- These layoffs will be difficult for the entire MBUSD community and particularly for the outstanding employees who will be receiving pink slips
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2. As one of the largest employers in Manhattan Beach, MBUSD has an $88 million budget with 830 employees serving the needs of 6,500 students.
3. Declining enrollment means declining revenue from the state:
- Declining enrollment is a statewide trend
- MBUSD enrollment has decreased by 400 students since 2013-14
4. MBUSD is the 2nd lowest-funded K-12 school district in the state.
- School districts with higher rates of English Learner students, foster youth, and low income students receive more funding
5. The 2018 parcel tax kept painful reductions from happening two years ago:
- The $2.4 million annually generated by Measure MB continues to support our teachers and our students
- Without Measure MB we would have made cuts two years ago, and we would be making much more severe reductions now
6. The Manhattan Beach community provides incredible support for MBUSD students and employees:
- Without MBEF, MBUSD would have far fewer programs for our students and class sizes would be much larger
- MBEF funding has remained steady since 2015, in spite of declining enrollment
- As MBUSD's budget has increased, MBEF's contributions have gone from 10% of MBUSD expenditures to 8%
- MBUSD is grateful for the strong financial support it receives from PTAs, the City of Manhattan Beach, MBX, and community partners
7. MBUSD invests in people:
- 83% of the budget is spent on personnel costs, including salaries, benefits, and pensions for administrators, custodians, office staff, teachers, and all other employees
- MBUSD has already reduced expenditures in all areas outside of personnel. When we have to make reductions, the overwhelming portion of those cuts will have to be in personnel
8. Personnel costs have been increasing over the decade:
- MBUSD contributions toward employee pension costs have quadrupled, going from $2.9M a year in 2011-12 to $12.2M in the 2019-20 school year (employees are also paying more out of their paychecks for pensions)
- After five years of no salary raises, we have provided annual salary increases averaging 2.7% since 2012-13
- Several programs have been returned or added to the budget, including elementary PE teachers, MakerSpace, professional development for teachers, assistant principals, visual arts, and support for MBUSD's Maintenance and Operations department
9. Special Education cost increases have outpaced revenue increases:
- The state and federal governments underfund what is necessary to support this critical program. The federal government pays far less than the 40% they promised in the Individuals with Disabilities Education Act (IDEA) in 1973
- MBUSD currently receives $6.4 million in Special Education funding, while expenditures total $24 million
10. In spite of budget challenges, MBUSD remains one of the top districts in California and the nation:
- Mira Costa is the 384th ranked STEM high school in the nation (out of over 31,000 high schools)
- MBUSD test scores place us at #4 of all of the K-12 school districts in California
- MBUSD math scores have experienced dramatic increases over the last three years
- MBUSD programs such as Athletics, Model United Nations, Orchestra, Band, Drama, Robotics, and more continue to compete with the state's, the nation's, and even the world's best
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Thank you for taking the time to understand our budget. Our community has experienced these challenges before, and in the past we have rallied to address some of those shortfalls. If you have not already donated to MBEF, I strongly encourage you to consider donating. I will keep you informed about our decisions in this difficult process and, if there are any opportunities to generate new revenues to offset some of these reductions next year, I will share that with you as well.
For more detailed information regarding our budget, please click
here
.
Sincerely,
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Mike Matthews
MBUSD Superintendent
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Manhattan Beach Unified School District
325 S. Peck Avenue
Manhattan Beach, CA 90266
310.318.7345
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