Transcript Mt. Diablo Unified School District
Governor’s 2010-11 Budget Announcement January 20, 2010 Richard Nicoll, Ph.D., Superintendent Bryan Richards, Director, Fiscal Services
State Fully Funds COLA!
However, the COLA is NEGATIVE.
That means a 0.38% DECREASE in funding; ($24) per ADA (which works out to about ($19.59)/ADA when deficited) or ($636,226) Additionally, we have to subtract the positive COLA previously projected of $848,666 Total effect of negative COLA is $1.5M
“One Time” Deficit to Continue!
This year we have a one-time additional deficit of $252.83 per 2008-09 FUNDED ADA (2007-08 actual P-2 ADA) or about $254.06 per current funded ADA Starting next year it will become
ongoing
and be $201 per current year funded ADA
This deficit is to be applied to “administrative” costs. Unclear how districts such as MDUSD that have already cut administration will be affected by this, nor is “administrative” defined in the proposal.
Declining Enrollment Steepens!
At adoption we projected a decline of 184.23 ADA At CBEDS we adjusted downward by 471.01 ADA to a decline of 655.24 ADA due to enrollment decline At P-1 we are actually down 719.95 ADA so we have projected the P-2 ADA downward again by an additional 64.71 ADA We are now down 2.17% from prior year
Funded Revenue Limit 2009-10 vs. 2010-11
Mt. Diablo Unified School District in dollars per unit of ADA $6,370 Loss due to Deficit Factor and $253-per ADA one-time cut $1,423 $6,346 Loss due to Deficit Factor and $201-per ADA cut to administration $4,980 $1,366 $4,947 Funded Revenue Limit Funded Revenue Limit 2009-10 2010-11
Graph courtesy of School Services of California, Inc.
2009-10 K-12 Revenue Limit – MDUSD
Mt. Diablo Unified for 2009-10 Base Revenue Limit per ADA (A) Proration Factor (B) Funded Base Revenue Limit (C) = (A) x (B) 1.
2008-09 Base Revenue Limit 2.
2009-10 COLA per ADA 3.
2009-10 Base Revenue Limit 4.
2009-10 One-Time Reduction (252.83 x 08/09 funded ADA) $6,109.02
261.00
6,370.02
0.92156
– 0.81645* – 5.
Net 2009-10 Funding (C3 minus C4) 6.
7.
Dollar Change (Line 5, Column C minus Line 1, Column C) Percentage Change (Line 6, Column C divided by Line 1, Column C) $5,629.83
– 5,200.80
<254.06> $4,946.74
<$683.09> <12.13%> *0.81645 = 1 - .18355 (deficit factor)
Chart courtesy of School Services of California, Inc.
2010-11 K-12 Revenue Limits – MDUSD
Mt. Diablo Unified for 2010-11 Base Revenue Limit per ADA (A) Proration Factor (B) Funded Base Revenue Limit (C) = (A) x (B) 1.
2.
3.
4.
5.
6.
7.
8.
2009-10 Base Revenue Limit 2010-11 COLA per ADA 2010-11 Base Revenue Limit 2010-11 Ongoing Administration Cost Reductions $6,370.02
<24.00> 6,346.02
<201.00> 0.81645
– 0.81645* – Net 2010-11 Funding (C3 minus C4) Net 2009-10 Funded Revenue Limit (Slide TK Line 5, Column C) Dollar Change (Line 5, Column C Minus Line 6, Column C) Percentage Change (Line 7, Column C Divided by Line 6, Column C) $5,200.80
– 5,181.21
<201.00> $4,980.21
4,946.74
$33.47
0.6766% *0.81645 = 1 - .18355 (deficit factor)
Chart courtesy of School Services of California, Inc.
The 10/11 revenue limit cut increases from $1,175 to $1,366/ADA
MDUSD Revenue Limit Funding per ADA 7,500 7,000 6,803 6,617 6,370 6,346 6,461 6,500 6,109 6,000 5,500 5,000 5,125 5,079 5,528 5,630 5,411 5,225 5,273 5,227 4,980 4,947 5,400 5,348 5,714 5,541 5,647 5,482 5,201 5,353 5,074 4,500 2005/06 2006/07 2007/08 2008/09 2009/10 Year 2010/11 2011/12 2012/13 2013/14 Revenue Limit 2nd May Revise Actual 09-10 Budget Gov 10-11 budget
Piling it on (what has changed since 1
st
interim?)
Loss of COLA/funding negative COLA $1.5M
Additional student attendance decline $0.3M
Additional cut of $201/ADA $6.5M
Total decline in revenue limit $8.3M
Decline in other State revenues $0.3M
Total State revenue decline $8.6M
Note: All of these cuts are ONGOING
MDUSD Revenues
Unr e st r i c t e d
Revenue Limit Federal St at e Local
2 0 0 6 - 0 7
185,833,596 221,236 17,346,231 7,750,756
2 0 0 7 - 0 8
187,893,543 605,858 17,404,849 5,667,289
2 0 0 8 - 0 9
182,218,757 402,858 16,894,600 4,524,339 1st Int erim
2 0 0 9 - 10
158,651,759 225,054 29,134,910 2,396,999 Gov Prop
2 0 10 - 11
155,744,591 220,166 28,886,425 2,396,999 Gov Prop
2 0 11- 12
157,009,336 218,040 29,266,795 2,396,999 211,571,539 204,040,555 190,408,722 187,248,181 188,891,170
Re st r i c t e d
Revenue Limit Federal St at e Local
2 0 0 6 - 0 7
6,927,065 16,888,400 53,977,961 5,863,773
2 0 0 7 - 0 8
7,450,041 15,055,764 54,769,197 5,495,204
2 0 0 8 - 0 9
7,189,798 28,266,945 54,986,527 5,602,383
2 0 0 9 - 10
6,614,982 31,515,828 35,503,388 7,864,286
2 0 10 - 11
6,928,519 20,009,512 34,732,243 7,693,471
2 0 11- 12
7,054,074 19,574,899 33,977,847 7,526,366 83,657,199 82,770,206 96,045,653 81,498,483 69,363,745 68,133,186
Combi ne d
294,809,018 294,341,745 300,086,208 271,907,205 256,611,926 257,024,356
Multi Year Projection
Undesignated + Tier 3 @ 6/10 Operating Deficit 2010/11 Adjustment in 2% reserve $13,279,341 (21,821,373) 26,853 Unappropriated Balance 6/11 Operating Deficit 2011/12 ( 8,515,179) (27,059,026) Adjustment in 2% reserve 67,882 Unappropriated Balance 6/12 ($35,506,323)
$35,506,000 across 2 years is only the start to fixing the real problem
Unappropriated Balance 6/12 ($35,506,323) Projected Deficit in 2012/13 ($24,431,947) Unappropriated Balance 6/13 ($59,924,712) Projected Deficit in 2013/14 ($28,170,814) Unappropriated Balance 6/14 ($88,182,084) Projected Deficit in 2014/15 ($27,781,521) Unappropriated Balance 6/15 ($115,933,241) Average deficit is $25,852,936 per year
How much less must we spend?
Enrollment declines projected to continue through 2014 at rates between 0.71% and 1.26% per year We must decrease minimum ongoing annual spending by a of $25.85M by 7/1/2010 for the 2010/11 school year OR, Cut at least $35,506,323 over two years by 2 nd interim and plan for even deeper cuts later to solve the rest of the structural deficit. However, the amount of backlog will grow at over $9M per year As promised, the deficits got bigger when the State cut more
What next?
More from Sacramento
Governor’s Budget January 8 & emergency session declared to put budget on agenda School Services update January 12 LAO will issue review of budget to legislature State budget talks begin in legislature
Meanwhile back in Concord…
We must adopt a balanced budget by June 30 th Budget Calendar will come to board January 26 th We must plan an additional contingency if the State doesn’t fund the COLA when it returns to a positive number in 2011-12 (an additional $3,020,000 ongoing cut)