The complexity of managing a school district budget today necessitates the development of a budget calendar that encompasses the majority of the year.  The process begins early so that timely decisions can be made and culminates in June when the District adopts its annual budget as required by Education Code 42127.

The Level I fees are $3.79 for residential and $0.61 commercial/industrial. State Allocation Board will be reassessing the fees in January 2020. 

Pursuant to Government Code 7906, the District is required to annually adopt a resolution identifying the estimated appropriations limit for the current year and the actual appropriations limit for the preceding year.  Based on the attached calculations, the 2018-19 Gann Limit is $69,273,380.90 and the estimated 2019-20 Gann Limit is $71,940,406.06. The District did exceed its appropriation limit in 2018-19.

On January 22, 2019, Staff issued a formal Request for Qualifications/Proposals ("RFQ/P") for architectural services to further design and implement the Multipurpose room at Jackson Academy based on the site specific master plan and in accordance with the District's educational specifications. On February 4, 2019 RFQ/P's were received for the project.

Staff has reviewed the proposals for accuracy and recommends the approval of McKim Design Group.

Compensation to the underwriter is contingent on the sale of bonds and will be paid only at the time of the sale of such bonds. If the 2020 bond measure is unsuccessful or if the bonds are never sold, the underwriters would receive no compensation.

Payment of any fee to Bond Counsel is contingent on the successful election and issuance of bonds. Bond fees for these services will be paid out of proceeds received by the District from the sale of bonds.

The attached document lists the contracts executed by the Superintendent or designee for the month of July 2019.

The Morgan Hill Unified School District (District) and the Morgan Hill Federation of Teachers (MHFT) entered into negotiations in April 2019 over articles of interest to both parties.  On August 10, 2019, the parties reached tentative agreement.

The members of MHFT ratified the tentative agreement by site elections by August 29, 2019. After conducting the public hearing, staff recommends that the District also ratify the agreement.

Below is a summary of the major components of the tentative agreement.  Attached are the specific language changes that have been agreed to.

Article 4 Compensation

• 1.5% salary increase for 2019-20

• 1.5% salary increase for 2020-21

Article 9 Health & Welfare Benefits

• Two-year step away from use of District contribution toward voluntary (fringe) benefits

• All MHFT employees enrolled in a guaranteed-issue $10,000 life insurance policy paid by the District (beneficiary selected by employee)

• Instead of a flat $9,000 annual contribution for all MHFT employees, there is a new tier structure created which will go into effect January 1, 2020, which increases the District contribution for medical, dental, and vision benefits for MHFT employees who have dependents. 

Article 15 Class Size

• A lowered ratio for students to counselors from 700:1 to 500:1

In addition, the parties also agree:

1. To form a joint Funds Available Committee (Article 4)

2. To participate in a Health Benefits Committee (Article 9)

3. To review mutual matters of concern related to Special Education

4. To consider the contract closed until June 2021 unless mutual agreement to reopen any of the articles

In accordance with Education Code Section 42100, the Board of Education must approve the Unaudited Actuals Financial Report, which reflects the prior year activity and ending fund balances.  These reports are subsequently filed with the Santa Clara County Office of Education and audited by the District's independent auditing firm, Vavrinek, Trine, Day & Co., LLP, and presented to the Board no later than January 30, 2020 as Audited Actuals.

For the fiscal year ending June 30, 2019, the unappropriated General Fund balance is $17,291,451.01.  For the fiscal year ending June 30, 2020, the unappropriated General Fund balance is $15,435,189.24.  Included in both years are set-asides for the required 3% Reserve for Economic Uncertainties and site carryover. 

When the Board approved the 2019-20 Adopted Budget, the beginning fund balances represented an estimate of the ending fund balance for 2018-19.  Now that the District has closed the prior fiscal year, the 2019-20 Budget has been updated to reflect the actual beginning fund balances.

Closing of 2018-19 financial records for the General Fund and Restricted Non-General Funds

Understanding that Special Education is a high-need area, Human Resources held three informational sessions during the 2018-19 year for current classified staff to learn more about entering a credential program.  These efforts have yielded several intern-ready candidates.

Despite increasing the pipeline with internal candidates, attending recruiting fairs, and posting positions on EdJoin, Indeed, LinkedIn, MHUSD website, and on our partner universities’ job boards, the District has not received enough fully credentialed applicants to fill the vacant positions.

Human Resources has conducted ten rounds of interviews between May 14 and August 6, 2019. Because it is difficult to hire fully credentialed teachers in the high-need credential area such as Special Education,  the District has already submitted a Declaration of Need with the Santa Clara County Office of Education and have sent three other candidates for their PIPs after approval granted from the August 6, 2019 Board of Education meeting. The District still has one part-time vacancy in our Special Education program. 

Lily Medina is ready to assume a 60% assignment as a Resource Specially at Jackson Academy of Math and Music.