SONOMA COUNTY OFFICE OF EDUCATION

SCOE BIZ

Business Services

Bulletin No. 18-02 July 2017

July 27, 2017

To: District/Charter Business Services

From: Judy Thomson, Director Fiscal Services

State of the State

The 2017-18 fiscal year began July 1. For the fiscal year that ended June 30, total revenues of $121.91 billion missed May Revision estimates by $295.7 million, or 0.2%. The fiscal year total was $2.68 billion lower than anticipated in the 2016-17 budget signed last summer, with all of the “big three” revenue sources missing the mark.

  • Personal income tax (PIT) receipts for June of $10.94 billion were $161.0 million shy of May estimates, or 1.5%. For the fiscal year, PIT receipts of $82.72 billion lagged May estimates by just $196.3 million, or 0.2 %.
  • Corporation tax receipts for June of $2.42 billion were $344.4 million lower than anticipated in the May Revision, or 12.5 %. The fiscal year total of $10.11 billion in corporation taxes was $283.1 million less than expected in the May Revision.
  • Retail sales and use tax receipts for June of $2.32 billion were $57.2 million, or 2.5 percent, higher than May estimates. For FY 2016-17, total sales tax receipts of $24.71 billion topped May Revision assumptions by $126.7 million, or 0.5%.

On the economic front, the Finance Bulletin indicates that the United States gross domestic product (GDP) performed better than previously thought. First quarter growth for 2017 was revised up from 1.2% to 1.4%, close to the 2016 annual real GDP growth of 1.6%.

The statewide median home price in May increased to $550,200, up 2.3% compared to April.

2016-17 P-2 Principal Apportionment

2016-17 P-2 Principal Apportionments are now available as well as the Local Control Funding Formula Snapshot. Both can be accessed through links at http://www.cde.ca.gov/fg/aa/pa/pa1617.asp .

2017-18 Advance Apportionment is now available

The 2017–18 Advance Principal Apportionment (Advance) has been certified. The Advance is based primarily on prior year funding and establishes each LEA’s monthly state aid payment amount for July 2017 through January 2018. Because this apportionment is merely a means to begin allocating funds in accordance with Education Code 41330, it should not be used by LEAs for budgeting.

Detail information regarding the 2017-18 Advance Principal Apportionment is available on the CDE’s Web site at http://www.cde.ca.gov/fg/aa/pa/pa1718.asp and is also attached.

The following 2017–18 Principal Apportionment resources are available on the CDE Web site, to assist in 2017–18 planning: 2017–18 Funding Rates and Information ~ http://www.cde.ca.gov/fg/aa/pa/ratesandinfo.asp

2017–18 Princ Apportmt At-A-Glance Calendar of Key Deadlines ~ http://www.cde.ca.gov/re/ca/fc/

IRS penalties and interest on 941-X filings

When applicable, district IRS penalties and interest on 941-X filings for FIT, OASDI and/or Medicare will be posted to: 01-0000-0-0000-7100-5800-000-FEES. This is the same account where STRS P&I are posted.

SCOE IT/ Business Services Calendar ~ We’ve gone paperless!

Where is the SCOE IT/ Business Services calendar located?

http://www.scoe.org/pub/htdocs/business_calendar_of_events.html

How do you add it to your calendar?

If you use a google calendar, just click on the “ + Google Calendar “ on the bottom right of the monthly calendar. The SCOE IT/Business Calendar of Events will automatically be added to your personal calendar!

California Clean Energy Jobs Act, resource 6230

If your LEA has approved Energy Expenditure Plans (EEPs), you are required to submit an Annual Progress Report for each approved EEP until all eligible energy measures within the approved plan are completed. The reports must be submitted by September 30, 2017, and should include activities that occurred in the previous fiscal year. Per CDE, no contribution is needed to Resource 6230 due to the apportionments crossing fiscal years; a negative ending fund balance is allowable with explanation in the technical checks

More information can be found on the Proposition 39 website under the heading “Annual Progress Reporting Resources.”www.energy.ca.gov/efficiency/proposition39/

Commodities Reporting ~ Object 8221, Donated Food Commodities

LEAs should recognize the receipt of donated food commodities at their fair market value in the period when all eligibility requirements are met (typically, at the time of donation) by crediting revenue and debiting expenditures or inventory. If the receipt of the food commodities was based on eligibility requirements of a certain district, the certain district should record the revenue (object 8221) and the corresponding inventory/expense.

Example Scenario:

District A receives federal food commodities that go straight to another district (District K).

District K then reduces the cost of providing District A's meal service by the amount of District A's federal food commodities.

Assuming a there is no leftover inventory, District A should record the revenue and expense of their donated food commodities at fair market value.

DEBIT

Fund ~ 13

Resource ~ 5310

Goal ~ 0000

Function ~ 3700

Object ~ 4710

CREDIT

Fund ~ 13

Resource ~ 5310

Object ~ 8221

Federal Cash Management Data Collection ~ Reporting in Fiscal Year 2017-2018*

Reporting Period / Reporting Start Date / Reporting Deadline
1 / 07/10/2017 / 07/31/2017
2 / 10/10/2017 / 10/31/2017
3 / 01/10/2018 / 01/31/2018
4 / 04/10/2018 / 04/30/2018

*Cash balance to be reported regardless of the fiscal year from which it originated.

Federal Cash Management Data Collection (CMDC) System July 10, 2017 toJuly 31, 2017. Submit cash balance data for the Title I, Part A; Title I, Part D; Title II, Part A; Title III, Immigrant; and Title III, EL programs in order to receive funds in the September apportionment. For more detailed information, see: http://www.cde.ca.gov/fg/aa/cm/

Mandate Block Grant

Watch for information about when the online application will be open. Annually each LEA makes a choice to receive funds through the grant or through the claim reimbursement process. Last year the letter announcing the application for funding came out 7-29-16 and application had to be submitted by 8-30-16.

The Mandate Block Grant is located at: http://www.cde.ca.gov/fg/aa/ca/mandatebg.asp

SB 96 (State Government Budget Trailer Bill – Public Works Monitoring) ~ Amends Department of Industrial Relations prevailing wage monitoring program for public works projects

Effective July 1, 2017, changes to the Department of Industrial Relations (DIR) Prevailing Wage Monitoring Program were codified in Labor Code 1725.5 and 1770 et seq. Following are some of the changes:

1.  The DIR must be notified within 30 days from the award of the contract, but no later than the first day in which a contractor has workers employed upon the public work, to file the PWC-100 form with DIR.

2.  PWC-100 forms must now be filed for public works projects (construction, alteration, demolition, installation, or repair work) over $25,000 (previously$1,000). PWC-100 forms must be filed for maintenance projects over $15,000 (previously$1,000).

3.  Labor Commissioner will now be able to assess penalties of up to $8,000 against public works contractors for failing to register with DIR. Public works contractors will also be assessed penalties of up to $10,000 for hiring unregisteredsubcontractors.

4.  LEAs will now be subject to penalties of up to $10,000, for hiring an unregistered contractor to perform work on a public worksproject.

5.  Final payment due to a public works contractor must be withheld until at least 30 days after the PWC-100 form and all required information has been submitted to DIR. If the local educational agency makes final payment to the contractor after the 30 days and an unregistered contractor or subcontractor is found to have worked on the project, the local educational agency is subject to a fine of $100 for each full calendar day of noncompliance, for a period of up to 100 days, for each unregistered contractor orsubcontractor.

Please see the School & College Legal Services of California, Legal Update, Changes to DIR Prevailing Wage Monitoring Program (K-12) on their website http://www.sclscal.org/legal-updates for greater detail.

Dates to Remember:

08/08/2017 Open Lab

08/25/2017 DBUG

NOTE: Documents presented at DBUG may be found at dp.scoe.org website under the "DBUG/SCOE Bulletins" tab.