Alameda Unified School District Budget Development Building Blocks FY08/09 Communicating our budget and budget development process to our staff and our community.
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Alameda Unified School District Budget Development Building Blocks FY08/09 Communicating our budget and budget development process to our staff and our community Purpose This presentation was created with two goals in mind – 1. To present basic information and an overview of the AUSD’s budget development process 2. To inform the community about our district’s finances in a user-friendly format The Checkbook What is a budget? A budget is a spending plan. School districts develop spending plans for every fiscal year (July 1 – June 30). Our spending plan has components similar to your checkbook. It includes estimates of anticipated revenues and planned spending. The Checkbook AUSD Budget Deposits/ Income Revenue Checks Written/ Expenses Expenditures Balance at End of Page Ending Balance Balance Brought Forward to New Page Beginning Balance Our budget is our best guess of the income we will earn and the checks we will write. It changes just like the needs in a household change. The Checkbook What is a multi-year projection? A multi-year projection is our best guess of the income we will earn and the checks we will write over an extended period of time (three years). July 1, 2007 – June 30, 2008 July 1, 2008 – June 30, 2009 July 1, 2009 – June 30, 2010 July 1, 2010 – June 30, 2011 Deposits/ Income Deposits/ Income Deposits/ Income Deposits/ Income Checks Written/ Expenses Checks Written/ Expenses Checks Written/ Expenses Checks Written/ Expenses Balance at End of Page Balance at End of Page Balance at End of Page Balance at End of Page Balance Brought Forward Balance Brought Forward Balance Brought Forward Balance Brought Forward The Annual Budget Cycle At each period, we: • Update budget • Certify our financial condition • Present summary to Board of Education • Submit copies to County Office of Education and State Audited Budget Actuals Adoption Unaudited Revised Actuals Budget Third First Interim Interim Second Interim The Annual Budget Cycle Period Finances as of Description Adopted Budget July 1 The Board of Education is required by law to adopt a budget by July 1. Revised Budget Signing of State Budget Act We are required by law to update our adopted budget within 45 days that the Budget is signed into law. 1st Interim October 31 Update budget and certify the state of our finances 2nd Interim January 31 Update budget and certify the state of our finances 3rd Interim April 30 Applies only to districts with Qualified or Negative Certifications Unaudited Actuals June 30 Includes all transactions processed during the fiscal year Audited Actuals June 30 An independent auditing firm audits the financials statements prepared by the district and issues an opinion regarding their accuracy. Certification Status At Interim Reporting Periods: • Positive – District will be able to meet its financial obligations for the current and two subsequent years • Qualified – District may not be able to meet its financial obligations for the current or two subsequent years • Negative – District will be unable to meet its financial obligations for the current or subsequent year Our District’s Funds The district maintains a total of 12 different funds to record its financial transactions. Each fund is a separate financial entity with its own set of financial records. Most day-to-day financial transactions are recorded in the General Fund (Fund 01). Other funds have very specific purposes and are very limited in use. Consequently, transfers between funds are subject to strict legal limitations and Board policy. Our District’s Funds OPERATING FUNDS CAPITAL FUNDS Fund Description Fund Description 01 General Fund 14 Deferred Maintenance Fund 08 Regional Occupational Program 21 Building Fund 09 Charter School Fund (Alameda Community Learning Center) 25 Capital Facilities Fund 11 Adult Education Fund 35 County Schools Facilities Fund 12 Child Development Fund 40 Capital Reserve 13 Food & Nutrition Services Fund 51 Bond Interest & Redemption Fund Fund 14 – Deferred Maintenance Fund Districts that participate in certain school facility programs are required by state law to establish restricted funds or accounts for facility maintenance purposes. Dollars are set aside in Fund 14 to maintain school facilities. The State makes a dollar for dollar match. Districts must establish a Deferred Maintenance Fund to receive deferred maintenance dollars. This fund is used to account for the State’s apportionment and the District’s contributions. New District Fund – Fund 17 General Fund dollars can be accumulated in Fund 17 for various purposes. These dollars must be transferred into an appropriate fund before expenditures can be made. Fund 17 – Special Reserve for Other Than Capital Outlay Projects. Staff recommends transferring the Reserve for Economic Uncertainties to Fund 17. This transfer will clarify the portion of the General Fund ending balance that is available for other spending priorities and highlight the importance of maintaining our reserves. New District Fund – Fund 17 How much is our Reserve for Economic Uncertainties? Our Reserve for Economic Uncertainties is 3.0% of all General Fund expenditures and other financing uses, or $2.5M. What can $2.5M buy? • Two month’s payroll? • One month’s payroll? • One-half month’s payroll? Our 3.0% Reserve for Economic Uncertainties approximates 47% of the May 2008 payroll. Building Our Budget Many of the items that impact the district’s budget are unknown until AFTER the district is required to adopt a budget. Thus, the district must use a series of assumptions about those items in order to develop the budget. Our district’s budget is only as good as the assumptions used in projecting revenues and expenses. The accuracy of the proposed budget is only as good as the assumptions used in its development. If the assumptions are faulty, the budget will be inaccurate. Accordingly, the initial assumptions are carefully considered and revised throughout the year as more information becomes available. Major Assumptions - Included Assumption Expenditures Enrollment Revenue Average Daily Attendance (ADA) Cost of Living Adjustment (COLA) Step & Column Negotiated Salary Increases Mandatory Benefits Major Assumptions - Included Assumption Expenditures Consumer Price Index (CPI) Utilities Property & Liability Insurance Debt Service Revenue Major Assumptions - Excluded Assumption Expenditures Revenue One-Time X X Carryover X X Growth in Contribution to Special Education Program X Unrestricted General Fund Expenditures Professional Development/Dues 2% Communications 5% Rentals, Leases, and Repairs 2% Books, M aterials and Supplies 12% Non-Capitalized Equipment 1% Unrestricted NonPersonnel Expenditures $5.0M Operation/Housekeeping Services 42% Insurance 14% Professional Services and Operations 22% All figures as of 3rd Interim Excludes ($0.4M) in Direct Cost T ransfers Unrestricted General Fund Expenditures Unrestricted Expenditures Non-Personnnel 9% 48.6M Personnel 4.6M Non-Personnel $53.2M Total Personnel 91% Excludes ($0.7M) in Other Outgo and Support Costs T ransfers Non-Personnel Expenditures 2.1M Utilities 1.1M Professional Services 0.7M Insurance 0.6M Supplies/Materials 0.2M Communications 0.1M Professional Development 0.1M Equipment/Rentals/Repairs (0.3M) Transfers of Direct Costs $4.6M Total All figures as of 3rd Interim Unrestricted General Fund Expenditures – Professional Services Discretionary, $39,845 , 4% One-Time, $289,825 , 27% 155K 46K 45K 17K 7K 16K 4K $290K Parcel Tax Election Parcel Tax Analysis Demographic Study Master Schedule Coach Woodstock Move Legal Settlement Webmaster Total Unavoidable, $728,151 , 69% 149K 108K 99K 71K 63K 47K 33K 37K 36K 26K 25K 17K 10K 5K 2K $728K Legal Financial Information System Hazardous Materials/SC Parcel Tax Assessment & Fee Mandate Cost Services Audit Debt Service Human Resources Software Licensing Asset Inventory Section 504 Plans Assessment Database OPEB Valuation Self Insurance WASC Total Enrollment & School Site Staffing School site staffing is comprised of two types – 1.) Administrative staffing 2.) Enrollment-based staffing Enrollment projections prepared by Cabinet and Principals are used as the basis for staffing allocations. Administrative staffing consists of positions responsible for the operations of the site (e.g., management, clerical, and custodial staff). Enrollment-based staffing consists of positions responsible for instructional and student support at the site (e.g., classroom teachers and clerical staff). School Site Staffing Administrative staffing Enrollment-based staffing Principal Classroom Teacher Vice Principal Other Clerical Office Manager II Health Office Assistant Media/Library Custodial Counselor Mandatory and Employer-Provided Benefits Benefit Item Rate State Teacher Retirement System (STRS) 8.250% Public Employee Retirement System (PERS) 9.306% Federal Insurance Contributions Act (FICA) 6.200% Medicare 1.450% Health &Welfare (H&W) 7.171% State Unemployment Insurance (SUI) 0.050% Workers Compensation 1.850% Public Employee Retirement System Reduction (PERS Reduction) 3.714% Mandatory and Employer-Provided Benefits Other Post Employment Benefits (OPEB) 4% Workers' Compensation 8% State Unemployment Insurance 0% Health & Welfare 33% Public Employee Retirement System (PERS) Reduction 3% State T eacher Retirement System (ST RS) 29% Public Employee Retirement System (PERS) 10% Medicare 13% Enrollment & School Site Discretionary Funds School site discretionary funds are determined by grade-level enrollment projections and gradelevel per pupil allocations. Per Pupil Allocations K-5 $24.76 6-8 $45.77 9-12 $81.73 School site discretionary funds are used to support site operations, such as classroom supplies, office supplies, and copy costs. Approximately $485K is budgeted annually. Enrollment & School Site Custodial Funds School sites are allocated funds for custodial supplies based on use, facility square footage and grade-level enrollment projections. Per Pupil Allocations K-5 $8.00 6-8 $9. 00 9-12 $10. 00 While custodial supplies are budgeted by site, the dollars are managed by Maintenance, Operations and Facilities. Approximately $203K is budgeted annually. Additional Allocations… $59K Summer Cleaning $16K Emergency Supply Stock $40K Contingency General Fund Revenues Our primary source of revenue is the Base Revenue Limit (BRL). Local 6% General Fund Revenue $86.7M Other State 23% Federal 7% Figures reflect adjustments to Local Revenue of ($5.2M) and to State Revenue of +$5.2M to reflect source of funds. Revenue Limit 64% All figures as of 3rd Interim Our BRL is a specific dollar amount the state gives us based on the number of days students attend school. Our income is based on our average daily attendance (ADA) - not the number of students enrolled. AUSD Base Revenue Limit – County Comparison County Average AUSD receives $221 less in per ADA revenue than the County average. Alameda Livermore Fremont Oakland If AUSD received the County average, we would receive an additional $2.1M per year. New Haven Albany Newark AUSD receives $61 less in per ADA revenue than Piedmont. Castro Valley San Lorenzo San Leandro If AUSD received Piedmont's BRL, we would receive an additional $580K per year. Hayward Piedmont Berkeley Sunol Glen Pleasanton Mountain House Emery Dublin 4,500 5,000 5,500 6,000 6,500 7,000 Base Revenue Limit and ADA 10,600 10,498 10,400 10,400 10,200 10,382 10,354 10,203 10,183 10,082 10,000 9,982 10,024 9,952 9,800 Difference between Enrollment and ADA results in a loss in revenue. 9,400 9,912 Loss of 347 ADA 9,756 9,600 9,954 9,471 9,516 9,607 Example for FY07/08 (347) ADA X $5777 BRL = ($2.0M ) 9,200 9,000 8,800 2000-01 2001-02 2002-03 2003-04 2004-05 Enrollment at CBEDS 2005-06 P2 ADA 2006-07 2007-08 Unrestricted General Fund Revenues Our primary source of unrestricted revenue is the Base Revenue Limit (BRL). Local 7% Other State 8% Federal 0% Revenue Limit Revenue Limit Sources Federal Impact Aid Unrestricted Revenue $63.4M $54.0M $0.1M Other State Lottery $1.3M Class Size Reduction - Gr K-3 $3.0M Class Size Reduction - Gr 9 $0.3M Supplemental Instruction $0.3M Local Revenue Limit 85% All figures as of 3rd Interim Parcel Tax $3.3M Interest $0.4M Loss of Federal Impact Aid Revenue (1000s) 2,500 2,191,637 2,000 1,500 1,000 500 55,289 93 94 95 96 97 98 99 00 01 Fiscal Year 02 03 04 05 06 07 Variability of Interest Income $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 $Sep Dec 03 03 Mar 04 Jun 04 Sep Dec 04 04 Mar 05 Jun 05 Sep Dec Mar 05 05 06 Jun 06 Sep Dec 06 06 Mar 07 Jun 07 Sep Dec 07 07 Mar 08 Jun 08 (est) Restricted General Fund Revenues Our primary source of restricted revenue (i.e., categorical funds) is the State. These funds have restrictions on their use. Restricted Revenue $23.3M Local 3% Revenue Limit 10% Federal 25% Revenue Limit Revenue Limit Sources $2.2M Federal Title I $1.4M Special Education $1.7M Other State Gifted and Talented $0.1M Lottery $0.2M Instructional Materials $0.7M School/Library Improvement $0.8M Special Education $5.5M Local Other State 62% Figures reflect adjustments to Local Revenue of ($5.2M) All figures as of 3rd Interim and to State Revenue of +$5.2M to reflect source of funds. Donations $0.4M Contributions to Restricted Programs Restricted programs are like mini-funds and should be selfsustaining – expenditures should match revenues. Special Education Expenditures $15.9M Contributions to Special Education, $6.0 , 38% When expenditures exceed revenues, a contribution is made to the restricted program. Special Education Revenue, $9.9 , 62% All figures as of 3rd Interim Additional Information • Need additional information? Have suggestions about improving this presentation? Please share your thoughts. Luz T. Cázares Chief Financial Officer 510-337-7067 [email protected] • Need prior presentations or budget information? Our budget documents are posted on our website.