Transcript John Swett Unified School District

Governor’s 2010-11 Budget Announcement
January 12, 2010
Richard Nicoll, Ph.D., Superintendent
Bryan Richards, Director, Fiscal Services
State Fully Funds COLA!
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However, the COLA is NEGATIVE.
That means a 0.38% DECREASE in funding;
($24) per ADA (which works out to about
($19.59)/ADA when deficited) or ($636,226)
Additionally, we have to subtract the positive
COLA previously projected of $848,666
Total effect of negative COLA is $1.5M
“One Time” Deficit to Continue!
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This year we have a one-time additional
deficit of $252.83 per 2008-09 FUNDED ADA
(2007-08 actual P-2 ADA) or about $254.06
per current funded ADA
Starting next year it will become ongoing
and be $201 per current year funded ADA
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This deficit is to be applied to “administrative”
costs. Unclear how districts such as MDUSD
that have already cut administration will be
affected by this, nor is “administrative”
defined in the proposal.
Declining Enrollment Steepens!
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At adoption we projected a decline of 184.23
ADA
At CBEDS we adjusted downward by 471.01
ADA to a decline of 655.24 ADA due to
enrollment decline
At P-1 we are actually down 719.95 ADA so
we have projected the P-2 ADA downward
again by an additional 64.71 ADA
We are now down 2.17% from prior year
Funded Revenue Limit 2009-10 vs. 2010-11
Mt. Diablo Unified School District
in dollars per unit of ADA
$6,370
Loss due to Deficit
Factor and $253-perADA one-time cut
$6,346
$1,423
Loss due to Deficit
Factor and $201-perADA cut to
administration
$4,980
$4,947
Funded Revenue Limit
Funded Revenue Limit
2009-10
2010-11
Graph courtesy of School Services of California, Inc.
$1,366
2009-10 K-12 Revenue Limit – MDUSD
Mt. Diablo Unified
for 2009-10
Base Revenue
Limit per ADA
(A)
Proration
Factor
(B)
Funded Base
Revenue Limit
(C) = (A) x (B)
$6,109.02
0.92156
$5,629.83
261.00
–
–
6,370.02
0.81645*
5,200.80
–
<254.06>
1.
2008-09 Base Revenue Limit
2.
2009-10 COLA per ADA
3.
2009-10 Base Revenue Limit
4.
2009-10 One-Time Reduction
(252.83 x 08/09 funded ADA)
5.
Net 2009-10 Funding (C3 minus C4)
$4,946.74
6.
Dollar Change (Line 5, Column C minus Line 1, Column C)
<$683.09>
7.
Percentage Change (Line 6, Column C divided by Line 1, Column
C)
<12.13%>
*0.81645 = 1 - .18355 (deficit factor)
Chart courtesy of School Services of California, Inc.
2010-11 K-12 Revenue Limits – MDUSD
Mt. Diablo Unified
for 2010-11
Base Revenue
Limit per ADA
(A)
Proration
Factor
(B)
Funded Base
Revenue Limit
(C) = (A) x (B)
$6,370.02
0.81645
$5,200.80
1.
2009-10 Base Revenue Limit
2.
2010-11 COLA per ADA
<24.00>
–
–
3.
2010-11 Base Revenue Limit
6,346.02
0.81645*
5,181.21
4.
2010-11 Ongoing
Administration Cost
Reductions
<201.00>
–
<201.00>
5.
Net 2010-11 Funding (C3 minus C4)
$4,980.21
6.
Net 2009-10 Funded Revenue Limit (Slide TK Line 5, Column C)
4,946.74
7.
Dollar Change (Line 5, Column C Minus Line 6, Column C)
8.
Percentage Change (Line 7, Column C Divided by Line 6, Column
C)
*0.81645 = 1 - .18355 (deficit factor)
$33.47
0.6766%
Chart courtesy of School Services of California, Inc.
The 10/11 revenue limit cut increases from $1,175 to $1,366/ADA
MDUSD Revenue Limit Funding per ADA
7,500
6,803
7,000
Dollars $ per ADA
6,617
6,370
6,500
6,346
6,461
6,109
Revenue Limit
2nd May Revise
6,000
5,714
5,780 5,630
5,528
5,400
5,225
5,125
5,273
5,411
5,000
Gov 10-11 budget
5,541
5,528
5,500
5,647
5,482
5,348
5,227
5,079
5,079
4,947
4,980
5,353
5,201
5,074
4,500
2005/06
2006/07
2007/08
2008/09
2009/10
Year
2010/11
2011/12
2012/13
Actual 09-10 Budget
2013/14
Piling it on (what has changed since 1st interim?)
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Loss of COLA/funding negative COLA $1.5M
Additional student attendance decline $0.3M
Additional cut of $201/ADA
$6.5M
Total decline in revenue limit
$8.3M
Decline in other State revenues
$0.3M
Total State revenue decline
$8.6M
Note: All of these cuts are ONGOING
Multi Year Projection
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Undesignated + Tier 3 @ 6/10 $13,279,341
Operating Deficit 2010/11
(21,821,373)
Adjustment in 2% reserve
26,853
Unappropriated Balance 6/11 ( 8,515,179)
Operating Deficit 2011/12
(27,059,026)
Adjustment in 2% reserve
67,882
Unappropriated Balance 6/12 ($35,506,323)
$35,506,000 across 2 years is only the start
to fixing the real problem
Unappropriated Balance 6/12 ($35,506,323)
 Projected Deficit in 2012/13
($24,431,947)
 Unappropriated Balance 6/13 ($59,924,712)
 Projected Deficit in 2013/14
($28,170,814)
 Unappropriated Balance 6/14 ($88,182,084)
 Projected Deficit in 2014/15
($27,781,521)
 Unappropriated Balance 6/15 ($115,933,241)
Average deficit is $25,852,936 per year
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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 $25.85M by 7/1/2010 for the 2010/11
school year OR,
Cut at least $35,506,323 over two years by 2nd
interim and plan for even deeper cuts later to solve
the rest of the structural deficit. However, the
amount of backlog will grow at over $9M per year
As promised, the deficits got bigger when the State
cut more
What next?
More from
Sacramento
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Governor’s Budget came out January 8
School Services updated dartboard based on
the new budget January 12
LAO will issue review of budget to legislature
State budget talks begin in legislature
Meanwhile back in Concord…
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We must adopt a balanced budget by June
30th
Budget Calendar will come to board January
26th
We must plan an additional contingency if the
State doesn’t fund the COLA when it returns
to a positive number in 2011-12 (an additional
$3,020,000 ongoing cut)
Thank you and tune in next time for…