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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Transcript Alameda Unified School District Budget Development Building Blocks FY08/09 Communicating our budget and budget development process to our staff and our community.
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.