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Orleans Parish School Board Revision #3 – January 2007

January 23, 2007

General Fund Revenues Local Sources

Ad valorem taxes Sales taxes Other local

(A) State Sources

MFP Non-public funds Revenue sharing Professional Improvement Program (PIP) Other State

Federal Sources-ROTC Extraordinary Federal Sources

Displaced Student Funds Restart Funds Community Disaster Loan

Other Sources

Revenue from Services to Charters/RSD Special Revenue Indirect Cost Reimbursement Gulf Tax Credit Bonds

(B) Total Revenues Expenditures & Uses

Salaries Employee benefits Disaster leave group health insurance Sick & vacation liabilities Workers compensation Purchased services Materials & Supplies (office, textbooks & energy) Property MFP and other payments to charter schools & RSD Debt service

(C)

Operating Transfers into Debt Service Fund

(D)

Other Expenditures & Contingencies

Total Expenditures Before Unusual Items Excess Revenue over Expenditures before Unusual Items

Unemployment Compensation Liability to State

(E)

Prior Year Deficit Reduction

Total of Non-Recurring Expenditure Items Net Surplus / (Deficit) FY 2007 Approved Budget Amendments FY 2007 Proposed Amendment #3

$ 60,850,231 61,726,320 28,517,777 3,218,613 159,034 107,791 34,474,961 2,907,960 1,279,246 $ 8,305,462 4,398,480 7,900,000 3,619,307 5,360,321 $ 69,155,693 66,124,800 7,900,000 32,137,084 3,218,613 88,573 159,034 107,791 34,474,961 8,268,281 1,279,246 17,483,326 9,759,995 1,740,099 3,900,000 20,577,360 1,074,563 66,480 87,226,508 731,978 33,438,546 1,685,770 4,302,766 935,739 168,532 185,500 2,970,182 $ 8,569,886 $ 15,645,881 15,645,880 $ 15,645,880 (13,399,401) $ 21,013,683 18,419,066 9,928,527 1,740,099 3,900,000 24,880,126 1,260,063 66,480 87,226,508 731,978 36,408,728 1,692,937 $ 36,659,564 34,413,084 2,246,479 $ 36,659,564 $ 0 $ -

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Footnotes to the Budget Amendment

(A)

- This includes Interest on Cash Balances of $5.4mm; Other Miscellaneous Revenues such as Tax Refunds, Medicaid Reimbursement, Contributions and Donations, and Judgements in favor of OPSB.

(B)

- The FY 2007 General Fund Budget does not show any amounts for the Gulf Tax Credit Bonds even though the total proceeds will be $33,438,546.

This is because these funds are restricted for Debt Service only, and will be remitted directly by the State to the Trustee for the debt being repaid. However, the amount will be included in the end of year financial statements, since they will add to OPSB's total Liability. Of the total amount of Gulf Zone bonds for FY 2007, only $21,159,899 will be used for repayment of principal. The balance of $12,278,648 will be used for interest payments on existing debt. This will contribute to a net increase in liability at the end of the fiscal year by the amount that is used to pay off interest cost on existing debt.

(C)

- The FY 2007 budget amount of $731,978 represents only that portion of debt that is not directly serviced by the proceeds from the Gulf Tax Credit Bonds, but by General Fund proceeds. An additional debt service amount of $33,438,546 is not shown in the revised budget for FY 2007, since the State directly remits the proceeds from the Gulf Tax Credit Bonds to the Trustee for repayment of this debt amount. See (B) above.

(D)

- The revised amount of $36,408,728 reflects the portion of local revenue that has been dedicated to the repayment of debt. Of the total 2007 Ad Valorem millage of 52.9 mills, 7.8 mills is dedicated to the repayment of General Obligation bond debt of the district, and an additional 3.19 mills is dedicated to Facilities Maintenance under Proposition D; of a total of 1 1/2-cents Sales Tax for OPSB, up to a 1/2-cent amount can be used for debt service. Since most of the district's FY 2007 debt is being repaid using proceeds from the Gulf Tax Credit Bonds, the dedicated monies are being transferred to the Debt Service Fund for future debt payments. A portion of this will also be used to repay the accumulated interest on the zero-coupon bond issue.

(E)

- The Unemployment Compensation liability to the State is a result of all the layoffs due to hurricane Katrina. This liability was incurred in FY 2006. Since the State has deferred payment until August 2007, it was recorded in OPSB Long Term Debt fund at June 30, 2006 and this was an expense in our Government wide expenses and related consolidated fund deficit balance. However, due to the payment due date of August 2007, it has now become a current liability for FY 2007 actual General Fund liabilities. The recording of this liability in the General Fund in FY 2007 will increase General Fund expenses and related General Fund deficit. However, the Long term Debt fund will eliminate this liability for FY 2006 (since it has been transferred to the General Fund). Thus, there will be no change in the Government Wide Consolidated fund deficit as a result of the transfer of this liability to the General Fund in FY 2007.

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Explanation of Amendments

CHANGES TO REVENUE Category

Ad Valorem Tax Sales Tax Other Local State MFP Revenue from Billing to RSD

Previous Budget Amendment Revised Budget Reason for Change

60,850,231 8,305,462 61,726,320 4,398,480 69,155,693 $3.9mm from 2006 millage received during FY 2007 (already been booked); $4.4mm additional due to upward revised assessments received from City of NO.

66,124,800 Revised upward based on recent trend in sales tax receipts of $5.5mm per month.

7,900,000 7,900,000 Includes $5.4mm for Interest on General Fund Bank deposits; other small amounts for Misc. Revenues already received for FY 2007 such as prior year tax refunds, donatoins, judgements, etc.

28,517,777 3,619,307 32,137,084 Revised upward based on student counts in October 2006; amount is according to notification from State, and may be further revised based on counts in February 2007.

2,907,960 5,360,321

29,583,569

8,268,281 This increase amount pertains to the invoices that are being sent to RSD for cost of Insurance premiums on RSD properties.

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Explanation of Amendments

CHANGES TO EXPENDITURES Category

Salaries Employee Benefits Management Consultants Legal Services Audit & Accounting Services Technical Services Renting Land & Buildings Telephone & Postage Printing & Binding Travel Expense Reimbursement Office Supplies Electricity & Natural Gas Miscellaneous Expenditures Operating Transfers to Debt Service Unemployment Compensation Prior Year Deficit Reduction

Previous Budget

17,483,326 9,759,995 2,905,029

Amendment

935,739 168,532 2,093,957

Revised Budget

18,419,066 9,928,527 4,998,986

Reason for Change

Most of this change is due to the revised salary structure. Also, some employees that were previously being charged to various grants have been moved over to the General Fund, which has further resulted in a budget increase. In addition, $30,000 has been added for 4 months salary for a new Operations Manager position.

These are increased cost of benefits associated with the revised salary structure and other additions.

This increase reflects the renewed contracts with Alvarez & Marsal, as well as some amounts for MUNIS consultants.

1,200,000 500,000 550,000 1,259,336 550,000 1,103,509 1,700,000 1,100,000 2,362,845 Increase reflects additional payments for anticipated claims against the OPSB.

This is for increased cost associated with Callaway Partners, Personnel Recruiting Group, P&N, etc.

This includes the increased cost for IT services, as well as revised budget for E-rate expenditures.

375,000 25,800 400,800 Cost for additional office space on 4th floor of 3520 Gen DeGaulle.

15,000 10,750 25,750 Increase in Curriculum & Instruction department budget.

25,000 17,917 42,917 Increase in Curriculum & Instruction department budget.

100,000 833 100,833 Increase in Curriculum & Instruction department budget.

50,622 5,500 56,122 Increase in Curriculum & Instruction department budget.

976,982 180,000 1,156,982 Additional amounts required for few properties previously assumed closed.

33,622 33,438,546 7,167 2,970,182 40,789 36,408,728 Increase in Curriculum & Instruction department budget.

The revised amount of $36.4mm reflects the total dedicated revenues that are raised from the 1/2-cent sales tax, as well as the GO millage and Prop D millage.

15,645,880 34,413,084 34,413,084 (13,399,401) 2,246,479 This is the amount that will be paid to the State in August 2007 for Unemployment Claims.

This is the amount that will be used to partially offset the deficit fund balance from previous years. This has reduced since this is a balance amount, and the overall availability of funds has reduced.

29,583,569 4