Transcript MDUSD Budget Update June 2, 2009

MDUSD Budget Update
Bryan Richards
Director of Fiscal Services
June 2, 2009
In last week’s episode…,
► Governor
called for additional reductions of
$225 per ADA for 2008/09 or ($7,496,143)
► Governor called for additional reductions of
$244 per ADA from 2009/10 onward
($8,086,958) increasing annually
► LAO
issued new report showing State Deficit
increased $3 billion after Governor’s report
Tonight…, a Revised May Revise
► Governor
responds with another new round
of cuts
► Good news first… Additional cut for 2008/09
reduced from $225 to $219 per ADA
($7,296,246 instead of $7,496,143)
► Then the bad news… additional cuts for
2009/10 increased from $244 to $353 per
ADA ongoing ($11,699,574 instead of
$8,086,958) increasing annually
► State may run out of cash in 14 days
State Cuts Funding per Student
MDUSD Revenue Limit Funding per ADA
7,500
6,965
Dollars $ per ADA
7,000
6,755
6,370
6,500
6,428
6,583
6,109
Revenue Limit
5,786
6,000
5,780
5,528
5,500
5,125
5,528
5,405
5,411
5,000
5,334
5,225
5,371
5,506
5,273
5,400
5,644
2nd May Revise
5,714
5,541
5,079
4,500
2005/06 2006/07 2007/08 2008/09
2009/10 2010/11 2011/12 2012/13 2013/14
Year
1st May Revise
How much have we lost?
► $698.16
per ADA shortfall in 2008/09 =
$23,260,031
► $1,144.54 per ADA shortfall in 2009/10 =
$37,933,798
► $1,154.96 per ADA shortfall in 2010/11 =
$38,064,560
► $1,182.81 per ADA shortfall in 2011/12 =
$38,771,991
► Total in 4 years = $138,030,380
► Grows over $39,500,000 per year thereafter
What does it mean?
► We
would end 2008/09 $7,239,188 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)
$46,488,062 below the required reserve after all
previously approved cuts enacted
► Fully utilizing State Fiscal Stabilization $8.9M to
plug the gap by transferring expenditures in
2009/10 and 2010/11
► Still need nearly $38M in unrestricted cuts across
the three years 2009/10 – 2011/12
► Additionally, categorical programs must cut to stay
within allotted funding (many down 20%)
What’s next?
► New
proposed reductions to services for
June 2 (at least $12.7M 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
► State
Legislature must pass revised
budget… (Julgusepoctemberary?)
► Once Governor signs, we will amend our
budget 45 days thereafter