Transcript 2012-13 Budget Outlook

2013-14 Budget
Talk about being stuck!
 We
will begin the 2013-14 year with
one funding method and end with
another. We are “stuck” in the middle.
 This
budget is based on the now “old”
method of Revenue Limits.
 The
legislature has just passed a new
funding distribution method called the
“Local Control Funding Formula” or LCFF.
 Exactly
what that means for us is unclear
but it should mean more money for the
District.
Basis Budget Assumptions
2013-14
 All
budget decisions are made after
answering the question: “How does this
impact student achievement?”
 The
budget must maintain fiscal solvency.
 Budget
decisions should reflect sustaining
programs and services of the long term.
Basis Budget Assumptions - State
2013-14



The deficit factor will be 22.272%
This means that we get only about $.77 for every
dollar that we are supposed to receive.
TCOE is requiring the District to budget as if the
LCFF did not pass.


This is because we do not have any of the details
on how LCFF will work.
The State will not be able to reprogram its financial
software for 6 months.
Basic Budget Assumptions - continued
 K-3

Class Size Reduction and QEIA continue
They total over $3,000,000. K-3 CSR will
become part of the LCFF.
 Home-to
–School Transportation funds will
continue at a reduced rate
 The
sweep of many categorical programs
continues for now (they will become part of
the LCFF).
 The
budget is based on current year ADA
Revenues
Most of the District's General
Fund revenue is generated
from the District's Revenue
Limit, which yields funds
based on a state-determined
dollar amount multiplied by
the average number of
students who are in
attendance throughout the
school year.
Other Local
Other State
General Fund Sources
(In Millions)
Revenue Limit
Revenue Limit
Federal
$21.0
Federal
4.0
Other State
8.9
Other Local
2.3
Total Revenues
36.2
Beginning Balance
10.6
Total General Fund
$46.8
Expenditures
Books and
Supplies
Most of the expenditures of the
District are committed to salaries
and benefits for employees of the
District. It takes people to teach
students and in Cutler-Orosi Joint
Unified School District, 84% of the
District's budgeted expenditures are
for employees.
General Fund Expenditures
(In Millions)
Certificated Salaries
$16.2
Classified Salaries
5.4
Employee Benefits
9.0
Books and Supplies
2.0
Operating Costs
3.4
Capital/Other
0.6
Total Expenditures
$36.6
Total Ending Balance
Included within the projected
Net Ending Balance is a
"Reserve for Economic
Uncertainties," which is a
minimum balance that the
State requires the District to
maintain. The State's
minimum "Reserve for
Economic Uncertainties" for
Cutler-Orosi Joint Unified
School District is 3% of the
total General Fund
expenditures.
Cash Flow
A TRAN is a Tax Revenue Anticipation Note or in other
words, a loan.
In 2011-12, the District needed a TRAN of $3,440,000 by
February.
It is projected that the District will not need a TRAN in 2013-14.
The 2013-14 Budget
We are breaking
new ground with
the LCFF.
We believe that we will benefit from the new formula but not
all of the details are out.
What we think we know is that:
LCFF
The LCFF is made from:
 A “base” amount for all schools
 An “add on” for an unduplicated number of
students who are:


In poverty (using Free/Reduced Lunch counts)
English Language Learners
There are many rules yet to be written.
The LCFF is projected to take 8 years to fully
implement.
The 2013-14 Budget
Keep your eye on Sacramento.
Robin Hood says
that he is going
to take from the
rich and give to
the poor. We
shall see.
The fight for LCFF dollars is now taking place.
The 2012-13 Budget – Final Remarks
One thing is for absolutely certain:
There will be changes to the
budget. Enrollment, program
regulations, revenue – both state
and federal, operating costs and
more, will all change. The biggest
change will be moving to LCFF.
We will keep you updated.