Transcript MDUSD Budget Update 6/16/2009

MDUSD Budget Update
Bryan Richards
Director of Fiscal Services
June 16, 2009
In our last episode…,
► Governor’s
second round of cuts called for
additional reductions of $219 per ADA for 2008/09
or ($7,296,246)
► Governor’s cuts also called for reductions of $353
per ADA from 2009/10 onward ($11,699,574)
increasing annually
► State Controller John Chiang
indicated the State could run out of
cash by today
► Would Sacramento drive the State
over a cliff?
No, for tonight…, the wheels fall off
► In
addition to the cuts announced two
weeks ago, the Governor has proposed a
65% cut in Home-to-School and Special
Education Transportation
► Ongoing cut of $1,832,000 per
year for MDUSD
► Chiang says State runs out of cash in 42
days (July 28) the same day the
apportionment deferrals are due
If transportation were part of the ADA
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
6,000
5,714
5,780
5,528
5,500
5,125
5,528
5,411
5,225
5,273
5,411
5,000
5,079
5,217
5,400
5,344
with Transp. Cut
5,541
5,485
5,658
5,170
4,500
2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14
Year
2nd 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 + $1,832,000 trans = $39.8M
► $1,154.96 per ADA shortfall in 2010/11 =
$38,064,560 + $1,832,000 = $39.9M
► $1,182.81 per ADA shortfall in 2011/12 =
$38,771,991 + $1,832,000 = $40.6M
► Total in 4 years = $143,526,380
► Grows over $41,300,000 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 $51,954,062 below the required
reserve before June 2 cuts enacted
► Using $8,900,000 of Round 1 SFSF funds
► June 2 cuts $30,690,000 across 3 years 2009-12
► Still need nearly $12.6M in unrestricted cuts
across 3 years 2009/10 – 2011/12
► Categorical programs must cut to stay within
allotted funding (many down 20%)
Budget Development
► Position
Control uploaded (may be adjusted
tomorrow based on tonight’s actions)
► Cafeteria Fund is complete
► Categorical program budgets being
reviewed against reduced revenue for
finalization
► Effects of Tier III transition being reviewed
Donations Update
► Donations
received since the “hat”
campaign began total:
Some words from the
► State’s
request for a bailout turned down
► Second round of State Fiscal Stabilization
Funding released last Friday night at 5 p.m.
► MDUSD will get $4,239,269
► Eagle Peak will get $12,607
► This is one time money
► Expenditures will be transferred here to
provide a small cushion for two years
against further mid-year cuts from the State
In our upcoming episodes…
► MDUSD
Budget adoption June 30
► State Legislature must pass revised budget
 Cannot agree on cuts versus revenue increases
 Already missed June 15 deadline…
(Julgusepoctemberary?)
► Once
Governor signs, we will amend our
budget 45 days thereafter
Stay tuned for