Transcript 2009-10 First Interim Presentation

First Interim Budget Report
December 8, 2009
Richard Nicoll, 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
When we last left Sacramento…
Revenue Limit Deficit balloons!
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We thought we had it bad when the cut to the
revenue limit was 17.97%
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Has now grown to 22.35%
Unrestricted General Fund Revenue
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Revenue Limit Sources
$ 158,651,759
Federal Revenue
225,054
Other State Revenue
29,134,910
Other Local Revenue
2,396,999
Total Revenue
190,408,722
Less: Net Contrib. to RGF
(37,552,110)
Net Available Revenue
$ 152,856,612
Mt. Diablo Unified School District
Unrestricted General Fund Revenues Before Contributions
2009-10 Total = $190,408,722
Federal Revenue
0.1%
Revenue Limit
Contributed to
Restricted
22.7%
State Revenue
15.3%
Local Revenue
1.3%
Revenue Limit
60.7%
Revenue Limit is down from 89.8% of revenue to 83.4% 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
$
91,188,209
20,374,155
31,947,487
4,349,668
1,716,904
137,720
929,381
6,202,658
156,846,181
Mt. Diablo Unified School District
Unrestricted General Fund Expenditures and Transfers Out
2009-10 Total = $156,846,181
Interfund Transfers
Out
3.95%
Certificated Salaries
58.14%
Other outgo
0.54%
Capital Outlay
0.09%
Services &
Operating
1.09%
Employee Benefits
Classified Salaries
20.37%
Books and Supplies
12.99%
2.77%
Salaries and Benefits make up 91.5% of expenditures & transfers out!
(This will adjust downward slightly as items are identified to ARRA)
Unrestricted General Fund Summary
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Net Available Revenue
$ 152,856,612
Net Expenditures
156,846,181
Net (decrease) fund bal.
( 3,989,569)
Beginning Balance, July 1
24,529,701
Projected Ending Balance $ 20,540,132
Components of Ending Balance
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Revolving Cash
$
300,000
Stores Inventory
536,118
Economic Uncertainties (2%)
5,812,158
IRS Assessment Resolution
533,550
FCMAT Implementation
78,965
Undesignated + Tier 3 Bal.
13,279,341
Ending Balance
$ 20,540,132
Restricted General Fund Revenue
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Revenue Limit Sources
Federal Revenue
Other State Revenue
Other Local Revenue
Interfund Transfers In
Net Contrib. from Unr.
Total Revenue
$ 6,614,982
31,515,828
35,503,387
7,864,286
0
38,349,013
$119,847,496
Contribution from
Unrestricted
34.62%
Local Revenue
6.31%
Mt. Diablo Unified School District
Restricted General Fund Revenue
2009-10 Total = $124,652,858
Revenue Limit
5.31%
Federal Revenue
25.28%
State Revenue
28.48%
Restricted General Fund Expenditures
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Certificated Salaries
$ 34,997,554
Classified Salaries
20,207,208
Employee Benefits
22,597,978
Books & Supplies
20,722,286
Services & Other Operating
33,227,043
Capital Outlay
301,514
Other Outgo
2,505,016
Transfers Out
0
Total Expenditures
$ 134,558,599
Mt. Diablo Unified School District
Restricted General Fund Expenditures
2009-10 Total = $139,363,960
Capital Outlay
0.22%
Services & Other
Operating
23.84%
Books & Supplies
14.87%
Other Outgo
1.80%
Indirect Costs Xfr
Out
3.45%
Employee Benefits
16.22%
Certificated Salaries
25.11%
Classified Salaries
14.50%
Restricted General Fund Summary
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Total Revenue
$ 119,847,496
Total Expenditures
134,558,599
Net (decrease) in fund bal.
(14,711,103)
Beginning Balance, July 1
22,687,425
Projected Ending Balance $ 7,976,322
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
General Outlook for the Future
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Qualified Certification (we may NOT meet our
obligations for this year and the next two)
Concerns
 State fiscal health is precarious. Governor already
suggesting across the board cuts. The new budget
in January could include more mid-year cuts, as
may the May revise.
 Health care expense increases still exceeding CPI
with no COLA to fund them
 Declining enrollment for this year at 2%!!
 DEFICIT – Our deficit spending is back (due to
State cutting our revenue) and must be addressed.
The 09/10 revenue limit cut $1,423/ADA or $47,239,402
MDUSD Revenue Limit Funding per ADA
7,500
6,916
7,000
6,714
Dollars $ per ADA
6,550
6,370
6,500
6,402
6,109
Revenue Limit
6,000
2nd May Revise
5,714
5,780 5,630
5,528
5,541
5,400
5,528
5,500
5,225
5,125
5,273
5,411
5,000
5,348
5,482
5,647
5,227
5,079
5,079
4,947
4,500
2005/06
2006/07
2007/08
2008/09
2009/10
Year
2010/11
2011/12
2012/13
2013/14
Actual Budget
Supplemental Information
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Form AI: Average Daily Attendance decrease of
(655.24) in 09/10 will decrease funding for 10/11.
Form CASH: Cash Flow – to end year positive we
must issue a $28M TRAN (this is double what we
usually issue due to State deferrals)
Form RLI: Revenue Limit Calculations (Additional
State cut of $9,415,303 since adoption from higher
deficit factor and additional deficit #3)
Form 01CSI: Criteria & Standards
Form CI: Certification to Sign summarizes Criteria &
Standards
Form MYPI: Multi Year Projection
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Undesignated + Tier 3 @ 6/10 $13,279,341
Operating Deficit 2010/11
(13,250,623)
Adjustment in 2% reserve
26,406
Unappropriated Balance 6/11
55,124
Operating Deficit 2011/12
(17,396,982)
Adjustment in 2% reserve
67,720
Unappropriated Balance 6/12 ($17,274,138)
$17,274,000 across 2 years is only the start
to fixing the real problem this time around
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Unappropriated Balance 6/12
Projected Deficit in 2012/13
Unappropriated Balance 6/13
Projected Deficit in 2013/14
Unappropriated Balance 6/14
($17,274,138)
($14,396,979)
($31,657,604)
($17,575,150)
($49,319,391)
Average annual deficit over the next 4 years
is $15,655,000 per year
How much less must we spend?
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Enrollment declines projected to continue through
2014 at rates between 0.71% and 1.26% per year
We must decrease ongoing annual spending by a
minimum of $15.7M by 7/1/2010 for the 2010/11
school year OR,
plan for even deeper rounds of cuts later as we will
utilize all reserves by June 30, 2011 at our present
rate $62.8M/4 = $15.7M; $62.8/3 = $20.9M/yr
These deficit numbers will get bigger if the State
cuts more
What next?
We go back to
Sacramento
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Governor’s Budget comes out January 8
School Services updated dartboard based on
the new budget January 12
LAO will issue review to legislature
State budget talks begin in legislature
Thank you and tune in next time for…