Transcript John Swett Unified School District

State Budget 2010-11 &
District’s 2010-11 Budget
First Interim
December 14, 2010
Steven Lawrence, Ph.D., Superintendent
Bryan Richards, Chief Financial Officer
Negative COLA & Deficits




A 0.39% DECREASE in funding; ($25) per
ADA
However, deficit factor is being decreased to
offset the effect of the negative COLA
The one time extra deficit of $250*ADA has
been returned to one time status and will not
continue in 2010/11 (cue small sigh of relief)
LAO recommends taking it back (cue groan)
Funded Revenue Limit 2009-10 vs. 2010-11
Mt. Diablo Unified School District
$6,371.02
Loss due to Deficit
Factor and $254-per-ADA
one-time cut
$6,346.02
$1,423.49
Loss due to Remaining
Deficit Factor
$5,206.08
$4,947.53
Funded Revenue Limit
Funded Revenue Limit
2009-10
2010-11
Graph courtesy of School Services of California, Inc.
$1,139.94
What does a 17.96% cut look like?
At least it is better than a 22.21% cut




School year is 180 days
17.96% of school year is 32.33 days
To cut school by 17.96% we would have to
close after school ended on April 18th (April
25th in a year when the Spring break falls
earlier & about 7 days plus a minimum day
later than with a 22.21% cut)
A 17.96% reduction of the school day would
equal just over 1 hour less instruction daily
10/11 revenue limit cut narrows to $1,140/ADA
MDUSD Revenue Limit Funding per ADA
6,803
6,750
6,617
6,371
6,109
6,250
Dollars $ per ADA
6,461
6,346
Revenue Limit
Actual 09-10
Budget
5,780
5,750
5,528
5,647
5,630
5,482
5,348
5,250
5,306
5,227
5,125
5,206
5,079
4,937
2009/10
2010/11
5,303
5,206
5,041
4,947
5,413
5,162
4,750
2005/06
2006/07 2007/08
2008/09
Year
2011/12 2012/13
2013/14
May 2010 Revise
Actual 10-11
Budget
Declining enrollment less steep than
projected at adoption




For P-2 in 2009/10 we were down
550.58 ADA
We are still declining so this is our
funding model
We are projecting a decline of 291.32
ADA in 2010/11 from 2009/10
ADA projection is based on our last 3
years average attendance of 94.8%
rather than last year’s 95.3% until we
know current ADA percentage
MDUSD ADA is still declining!
P-2 ADA
35,000
34,500
34,000
33,500
33,000
32,500
P-2 ADA
32,000
31,500
31,000
30,500
30,000
15
20
14
/
14
20
13
/
13
20
12
/
12
20
11
/
11
20
10
/
10
20
09
/
09
20
08
/
08
20
07
/
07
20
06
/
06
05
/
20
20
04
/
05
29,500
How does revenue limit funding look?
Revenue Limit
200,000,000
195,000,000
190,000,000
185,000,000
180,000,000
Revenue Limit
175,000,000
170,000,000
165,000,000
15
20
14
/
14
20
13
/
13
20
12
/
12
20
11
/
11
20
10
/
10
20
09
/
09
20
08
/
08
20
07
/
07
20
06
/
06
05
/
20
20
04
/
05
160,000,000
20
CY 02
20
CY 03
20
0
CY 4
20
CY 05
20
CY 06
20
CY 07
20
CY 08
20
CY 09
20
CY 10
CY
20
11
20
CY 12 p
20 roj
CY 13 p
20 roj
CY 14 p
20 roj
15
pr
oj
CY
Monthly Premium
Health rates skyrocketing!
Kaiser Rates
2,500
2,000
1,500
1 party
2 party
1,000
3 party
500
0
Year
Compounding rate increases
Kaiser % Increase
296.4%
300.0%
260.3%
227.6%
197.8%
170.7%
153.4%
141.9%
123.9%
105.2%
85.3%
68.8%
45.3%
200.0%
150.0%
100.0%
50.0%
23.3%
0.0%
17.8% 16.1%
9.8% 10.7% 9.2% 8.0% 4.8% 6.8%
10.0% 10.0% 10.0% 10.0%
Y
20
C 02
Y
20
C 03
Y
20
C 04
Y
20
C 05
Y
20
C 06
Y
20
C 07
Y
20
C 08
Y
20
C 09
Y
20
C 10
Y
C
2
Y
20 0 1
C 12 1
Y
20 p ro
C 13 j
Y
20 p ro
C 14 j
Y
20 p ro
15 j
pr
oj
0.0%
C
Percent Increase
250.0%
Year
y/y
inc
inc
since
02
MDUSD Benefit Costs
Health, Dental, Vision & Post Retirement Benefits
40,000,000
35,000,000
25,000,000
General Fund
20,000,000
15,000,000
10,000,000
5,000,000
20
01
/
20 02
02
/
20 03
03
/
20 04
04
/
20 05
05
/
20 06
06
/
20 07
07
/
20 08
08
/
20 09
0
20 9/1
10 0
/
20 11(
11 b)
/
20 12(
12 b)
/1
3(
b)
Amount
30,000,000
Year
Unrestricted General Fund Revenue








Revenue Limit Sources
$ 164,735,676
Federal Revenue
232,231
Other State Revenue
31,529,952
Other Local Revenue
1,801,379
Interfund Transfers In
1,572,413
Total Revenue
199,871,651
Less: Net Contrib. to RGF
(35,996,512)
Net Available Revenue
$ 163,875,139
Mt. Diablo Unified School District
Unrestricted General Fund Revenues Before Contributions
2010-11 Total = $199,871,651
Federal Revenue
0.1%
Revenue Limit
Contributed to
Restricted
16.8%
State Revenue
15.8%
Local Revenue
Interfund Transfers In
0.9%
0.8%
Revenue Limit
65.6%
Revenue Limit is down to 82.4% of revenue because of the deficit.
Unrestricted General Fund Expenditures









Certificated Salaries
Classified Salaries
Employee Benefits
Books & Supplies
Services & Operating
Capital Outlay
Other Outgo
Interfund Transfers Out
Total Expenditures
$
88,043,398
20,000,007
32,446,736
9,576,956
13,466,415
153,732
0
3,486,037
167,173,281
Mt. Diablo Unified School District
Unrestricted General Fund Expenditures and Transfers Out
2010-11 Total = $167,173,281
Certificated Salaries
52.67%
Interfund Transfers
Out
2.09%
Capital Outlay
0.09%
Services & Operating Books and Supplies
5.73%
8.06%
Employee Benefits
19.41%
Classified Salaries
11.96%
Salaries and Benefits make up 84.04% of expenditures & transfers out
Down slightly from average due to effects of Ed Jobs Fund
Unrestricted General Fund Summary





Net Available Revenue
$ 163,875,139
Net Expenditures
167,173,281
Net (decrease) fund bal.
( 3,298,142)
Beginning Balance, July 1
24,791,068
Projected Ending Balance $ 21,492,926
Components of Ending Balance








Revolving Cash
$
300,000
Stores Inventory
447,156
Economic Uncertainties (2%)
6,021,147
IRS Assessment Resolution
533,550
Tier 3 Balances
1,520,144
LAO rec. cut to RL
8,523,367
Undesignated
4,147,612
Ending Balance
$ 21,492,926
Restricted General Fund Revenue







Revenue Limit Sources
Federal Revenue
Other State Revenue
Other Local Revenue
Interfund Transfers In
Contribution from Unr.
Total Revenue
$ 7,071,893
37,894,638
37,414,612
9,269,004
0
41,701,785
$133,351,932
Mt. Diablo Unified School District
Restricted General Fund Revenue
2010-11 Total = $133,351,932
Contribution from
Unrestricted
31.27%
Local Revenue
6.95%
Revenue Limit
5.30%
State Revenue
28.06%
Federal Revenue
28.42%
Restricted General Fund Expenditures









Certificated Salaries
$ 40,814,438
Classified Salaries
19,253,879
Employee Benefits
23,900,109
Books & Supplies
25,163,720
Services & Other Operating
26,481,664
Capital Outlay
276,212
Other Outgo
1,355,536
Indirect Costs
4,974,934
Total Expenditures
$ 142,220,491
Mt. Diablo Unified School District
Restricted General Fund Expenditures
2010-11 Total = $142,220,492
Capital Outlay Other outgo
0.19%
0.95% Indirect Costs Xfrs
Services & Other
3.50%
Operating
18.62%
Books & Supplies
17.69%
Employee Benefits
16.80%
Certificated Salaries
28.70%
Classified Salaries
13.54%
Restricted General Fund Summary





Total Revenue
$ 133,351,932
Total Expenditures
142,220,492
Net (decrease) in fund bal.
( 8,868,560)
Beginning Balance, July 1
10,343,950
Projected Ending Balance $ 1,475,390
Other Funds of the District


Funds for special purposes excluded from the
General Fund
Special Revenue Funds





Charter School – Form 09I
Adult Education – Form 11I
Cafeteria – Form 13I
Deferred Maintenance – Form 14I
Capital Projects Funds


Building (Proceeds of local bonds for construction) –
Form 21I
Capital Facilities (a.k.a. Developer Fees) – Form 25I
Supplemental Information





Form AI: Average Daily Attendance decrease
of (291.32) in 10/11 will decrease funding for
11/12.
Form CASH: Cash Flow – Ending GF cash
projected to be NEGATIVE for the first time
Form RLI: Revenue Limit Calculations
Form 01CSI: Criteria & Standards
Form CI: Certification to sign summarizes
Criteria & Standards – QUALIFIED Cert.
Form MYPI: Multi Year Projection








Undesignated @ 6/11
$ 4,143,552
Operating Deficit 2011/12
(10,303,960)
Adjustment in 2% reserve
344,162
Unappropriated Balance 6/12 ( 5,816,246)
Operating Deficit 2012/13
(12,594,211)
Adjustment in 2% reserve
(121,131)
Unappropriated Balance 6/13 ($18,531,588)
If we keep 8.5M bal 6/13
($10,008,221)
Qualified Certification – What does it mean?



The District projects that it may not meet its
financial obligations for the current fiscal year
or two subsequent fiscal years.
We will meet our obligations for this year by
issuing a TRAN or borrowing for summer
cash flow from the building fund if necessary.
We may be unable to meet obligations for
next year based on current projections
(depends on the LAO recommendation being
implemented or not, and AB3632 being one
time or ongoing).
One time solutions cannot completely
solve ongoing problems…

Federal Jobs Funds $6.4M


School Improvement Grants for four schools


Recommendation – as with SFSF fund days for
site based employees to restore general fund for
cuts to revenue limit
Helpful, but for 2 years only at most
The State deficits are ongoing and rising for
Revenue Limit funding
Other Concerns



Governor & Legislature could take LAO
recommended reduction AND make it
ongoing (future years) = $8.5M each
AB 3632 blue pencil veto, if extended, will be
$4.9M per year of new ongoing expenses
that have not been the District’s responsibility
before
FCMAT indicating possible zero COLA for
2012/13 = $3.25M
LAO Issues Budget Assessment




State Budget Imbalance of $25.4 Billion (now
revised to $28.1 billion)
Federal Revenue assumptions overstated
Measure prohibiting fuel tax and other county tax
shifts approved by voters, protects county tax base,
but leaves State less flexibility to fund education
Calls for rollback of budget to level of May Revise


Reduces our revenue limit funds by $8.5 Million
Recommend reserving additional revenue limit
funding until after the January budget and special
session are complete, possibly until May revise if the
January budget punts the decision until then
What about Solar $?



Solar expected to go online in late Spring
2012
Savings from electricity and initiative credits
will come just in time to bring back CSR in
2012/13
Savings from COP payments being utilized
starting in 2011/12 to fund Intervention
teachers
What next?
More from
Sacramento
Governor Schwarzenegger calls special session
Democrats in Legislature initially indicate they will wait for
Governor-Elect Brown to take office before they address
$28.1 BILLION deficit
Governor-Elect Brown had a session today on education
Mid year cuts or a very tough January budget expected
Governor-elect Brown: There will be cuts


From today’s UCLA Newsroom: "We will do
everything we can to minimize cuts to public
schools," Brown told about 200 school officials and
education leaders in Ackerman Union. "I can't
promise you there won't be more cuts because there
will be.“
State Treasurer Bill Lockyer, who dubbed himself
the "town grouch" for his dire warnings,
cautioned that Sacramento budget
solutions "are largely from the tooth fairy." "You still
have a multi-billion-dollar hole … you can't keep
ducking this," he chastised. "It's time to make cuts,
deep cuts. I'd do 25 percent across the board."
Will the State budget hold through the
January revision?... Tune in next time for
sacramento
-----
-----------