Transcript John Swett Unified School District

Second Interim Budget Report
March 9, 2010
Steven Lawrence, Ph.D., Superintendent
Bryan Richards, Director, Fiscal Services
Why an Interim Report?
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Ed. Code §42130 requires the Board to certify two
interim budget and financial reports
Certification is either Positive, Qualified or Negative
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Positive – The district will meet its obligations for 3 years
Qualified – The district may not meet its obligations for 3
years
Negative – The district will not meet its obligations in
current or upcoming year
1st Interim with transactions to October 31 due
December 15
2nd Interim with transactions to January 31 due March 15
If 2nd Interim qualified or negative, 3rd Interim with
transactions through April 30 due June 1
Unrestricted General Fund Revenue
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Revenue Limit Sources
$ 158,651,759
Federal Revenue
225,054
Other State Revenue
32,074,592
Other Local Revenue
3,168,461
Total Revenue
194,119,866
Less: Net Contrib. to RGF
(34,730,797)
Net Available Revenue
$ 159,389,069
Mt. Diablo Unified School District
Unrestricted General Fund Revenues Before Contributions
2009-10 Total = $194,119,866
Federal Revenue
0.12%
Revenue Limit
Contributed to
Restricted net of
indirect
17.89%
State Revenue
16.52%
Local Revenue
1.63%
Revenue Limit
63.84%
Revenue Limit is down from 89.8% of revenue to 81.73% because of the deficit.
Unrestricted General Fund Expenditures
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Certificated Salaries
Classified Salaries
Employee Benefits
Books & Supplies
Services & Operating
Capital Outlay
Other Outgo
Interfund Transfers Out
Total Expenditures
$
83,414,261
19,886,215
29,936,365
6,241,695
15,089,883
108,113
929,381
5,452,658
161,058,571
Mt. Diablo Unified School District
Unrestricted General Fund Expenditures and Transfers Out
2009-10 Total = $161,058,571
Certificated Salaries
51.79%
Interfund Transfers
Out
3.39%
Other outgo
0.54%
Capital Outlay
0.07%
Services &
Operating
9.37%
Books and Supplies
3.88%
Employee Benefits
18.59%
Classified Salaries
12.35%
Salaries and Benefits make up 82.73% of expenditures & transfers out
Unrestricted General Fund Summary
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Net Available Revenue
$ 159,389,069
Net Expenditures
161,038,571
Net (decrease) fund bal.
( 1,669,502)
Beginning Balance, July 1
24,529,701
Projected Ending Balance $ 22,860,199
Components of Ending Balance
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Revolving Cash
$
300,000
Stores Inventory
536,118
Economic Uncertainties (2%)
6,036,482
IRS Assessment Resolution
533,550
Tier 3 and Site Carryovers
7,165,062
Undesignated
8,288,987
Ending Balance
$ 22,860,199
Restricted General Fund Revenue
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Revenue Limit Sources
Federal Revenue
Other State Revenue
Other Local Revenue
Interfund Transfers In
Net Contribution from UGF
Total Revenue
$ 6,614,982
31,892,737
37,774,770
8,841,354
0
35,525,361
$120,649,204
Mt. Diablo Unified School District
Restricted General Fund Revenue
2009-10 Total = $120,649,204
Contribution from
Unrestricted
29.45%
Local Revenue
7.33%
Revenue Limit
5.48%
State Revenue
31.31%
Federal Revenue
26.43%
Restricted General Fund Expenditures
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Certificated Salaries
$ 44,454,133
Classified Salaries
21,644,156
Employee Benefits
24,982,365
Books & Supplies
25,374,487
Services & Other Operating
22,256,480
Capital Outlay
343,427
Other Outgo
2,505,016
Transfers Out
0
Total Expenditures
$ 141,560,064
Mt. Diablo Unified School District
Restricted General Fund Expenditures
2009-10 Total = $141,560,064
Services & Other
Operating
15.72%
Capital Outlay
0.24%
Books & Supplies
17.92%
Employee Benefits
17.65%
Other outgo
1.77%
Certificated Salaries
31.40%
Classified Salaries
15.29%
Restricted General Fund Summary
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Total Revenue
$ 120,649,204
Total Expenditures
141,560,064
Net (decrease) in fund bal.
(20,910,860)
Beginning Balance, July 1
22,687,425
Projected Ending Balance $ 1,776,565
Other Funds of the District
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Funds for special purposes excluded from the
General Fund
Special Revenue Funds
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Charter School – Form 09I
Adult Education – Form 11I
Cafeteria – Form 13I
Deferred Maintenance – Form 14I
Capital Projects Funds
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Building (Proceeds of local bonds for construction) –
Form 21I
Capital Facilities (a.k.a. Developer Fees) – Form 25I
Other Funds of the District (cont’d)
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Capital Projects Funds (continued)
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Debt Service Funds
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County School Facilities (State Allocations for construction)
– Form 35I
Capital Project for Blended Component Units (Mello-Roos)
– Form 49I
Bond Interest and Redemption – Form 51I
Debt Service for Blended Component Units (Mello-Roos) –
Form 52I
Foundation Private-Purpose Trust Fund
(Scholarship Fund) – Form 73I
All “Other Funds” projecting positive fund balances
Supplemental Information
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Form AI: Average Daily Attendance decrease of (719.95)
in 09/10 will decrease funding for 10/11.
Form CASH: Cash Flow – to end year positive we sold a
$12M TRAN which closes on March 18 and are pulling
LAIF into County Treasury
Form RLI: This is unchanged since 1st interim except for
the adjustment to PERS reduction due to personnel cost
changes
Form 01CSI: Criteria & Standards
Form CI: Certification to Sign summarizes Criteria &
Standards
Form MYPI: Multi-year Projection – What we can expect
based on what we know now from Sacramento, so it’s
time for another episode of…
One time revenue limit deficit now ongoing!
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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
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This deficit is proposed to be applied to
“administrative” costs. While “administrative” is
undefined in the proposal, current chatter from
Sacramento indicates it will be calculated on function
codes 2100-2199 (instructional supervision), 7000-7999
(central administration and technology) and 8000-8999
(maintenance, operations & security). Reductions
since 2008/09 will count towards the cuts as it will be
used as the base year. However, reductions from
2007/08 into 2008/09 may not. This is not yet finalized
and there is a move to strip the language from the
proposal.
General Outlook for the Future
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Positive Certification (we will meet our obligations for this
year and the next two)
This certification is conditional on the board’s approval of
items on tonight’s cut list as they have been included in the
multi-year projection
Concerns
 State fiscal health is still precarious although January
revenues were up in the first piece of good news out of the
State in a while. However, it hasn’t made up for the shortfalls
to date so the May revise may still have further cuts.
 Health care cost containment is critical. Increases have been
coming in well above the CPI. Our 2011 rate announcement
comes from CalPERS in June.
 Declining enrollment – still a major concern
 DEFICIT – The cuts have significantly lessened our deficit
spending. However, cash is king and we must continue to
monitor it. We will be pulling our LAIF investment into the
County treasury to be sure cash is available.
Cash is king for the State too!
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Additional new deferrals will affect our cash
flow substantially!
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July revenue limit deferred until September
October revenue limit deferred until January
March revenue limit deferred until April 29
Our TRAN payments are in July and August
with a final due date of October 1
We plan to issue next year’s TRAN in
October to be ahead of the second deferral
The 09/10 revenue limit cut $1,423/ADA
MDUSD Revenue Limit Funding per ADA
7,500
6,803
7,000
Dollars $ per ADA
6,617
6,370
6,500
6,346
6,461
6,109
Revenue Limit
2nd May Revise
6,000
5,714
5,780 5,630
5,528
5,400
5,225
5,125
5,273
5,411
5,000
Gov 10-11 budget
5,541
5,528
5,500
5,647
5,482
5,348
5,227
5,079
5,079
4,947
4,980
5,353
5,201
5,074
4,500
2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14
Year
Actual 09-10 Budget
Form MYPI: Multi Year Projection
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Undesignated + Tier 3 @ 6/10
Operating Deficit 2010/11
Adjustment in 2% reserve
Unappropriated Balance 6/11
Operating Deficit 2011/12
Adjustment in 2% reserve
Unappropriated Balance 6/12
$ 8,288,987
( 2,544,379)
709,906
6,454,514
( 1,391,915)
10,373
$ 5,072,972
Cuts substantially curtail the deficit
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Unappropriated Balance 6/12 $ 5,072,972
Deficit & Rsv Adj - 2012/13
($ 1,163,673)
Unappropriated Balance 6/13 $ 3,909,299
Deficit & Rsv Adj - 2013/14
($ 3,580,926)
Unappropriated Balance 6/14 $ 328,373
2013/14 sees the end of flexibility unless
legislation is passed to continue it
What next?
We go back to
Sacramento
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State budget talks underway in legislature
March Government Price Index establishes 2010/11
COLA
April tax receipts tell the State’s fiscal tale
Governor’s May Revise
Thank you. Tune in next time for the next episode of…