Transcript MDUSD Budget Update 5-26-2009

MDUSD Budget
News Update
Bryan Richards
Director of Fiscal Services
May 26, 2009
State Political News
► Measures
1A – 1E Fail
► LAO issues new report on statewide deficit now
projected at $24,300,000,000
► State Cash projected to hit negative $40 billion at
low point
► Governor calls for additional reductions of $225
per ADA for 2008/09 - yes the year is about over
($7,496,143)
► Governor calls for additional reductions of $244
per ADA from 2009/10 onward ($8,086,958) and
up annually
State Funding Cuts per Student
MDUSD Revenue Limit Funding per ADA
7,500
6,911
7,000
Dollars $ per ADA
6,577
6,371
6,500
6,416
6,109
6,000
5,528
5,500
6,742
5,125
5,000
5,528
5,780
Revenue Limit
5,780
5,786
5,405
5,334
5,371
5,506
5,644
5,079
4,500
4,000
2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14
Year
Funded Rate
How much have we lost?
► $704.23
per ADA shortfall in 2008/09 =
$23,462,260
► $1,037.37 per ADA shortfall in 2009/10 =
$34,381,834
► $1,044.70 per ADA shortfall in 2010/11 =
$34,430,669
► $1,070.91 per ADA shortfall in 2011/12 =
$35,103,959
► Total in 4 years = $127,378,722
► Grows at over $35,000,000 per year thereafter
Local News
► Measure
D gets Majority Vote @ 59%
 Does not meet 66.7% required to pass
► $7,000,000
in funding will not be provided
► Prior programmatic cuts not restored
What does it mean?
► We
end 2008/09 $7,443,113 below required
reserve if we were to spend all of the UGF budget
 Tier III balances and spending freeze help us stay afloat
► We
end 2011/12 (third year out in budget)
$36,346,805 below the required reserve after all
previously approved cuts enacted
► Fully utilizing State Fiscal Stabilization >$8M to
plug the gap by transferring expenditures in
2009/10 and 2010/11
► Still need $28M in unrestricted cuts across the
three years 2009/10 – 2011/12
► Additionally, categorical programs must cut to stay
within allotted funding
Upcoming Budget News
► New
proposed reductions to services for
June 2 (at least $9.34M per year)
► Draft of budget and status update June 16
► Budget adoption June 30
 Unlike U.S. and State, ours must be balanced
and on time