Transcript Community Budget Forum April 2009 San Rafael Elementary School District 11/6/2015 Purpose & Agenda  Provide an update about San Rafael Elementary District budget for 2009-2010 

Community Budget Forum
April 2009
San Rafael Elementary
School District
11/6/2015
Purpose & Agenda
 Provide an update about San Rafael
Elementary District budget for 2009-2010
 Collect additional feedback
 Timeline
 Summary Information
 On-line survey
 Community Budget Forums
 suggestionbox.srcs.org
Scope of the Budget
 The 2009-10 Budget Act includes both 2008-09 and 2009-10
 The actions proposed for the current year, 2008-09, are incorporated in
the Budget
 The enacted 2009-10 Budget also meets statutory requirements as a
completed Budget for 2009-10
 This historic early adoption was necessary to conclude legislative
agreements for both years simultaneously
 The state has met its obligation to adopt a 2009-10 Budget prior to
June 30, 2009
 But it is unlikely that this Budget will escape the need for significant revisions
 We are in uncharted waters as we watch the Legislature and the Governor
deal with changes to a Budget that has already been enacted
11/6/2015
Why This Budget Crisis is
Different
 Six elements make this budget crisis unlike any other –
and more challenging:
1. A chronic structural budget gap has existed most of this decade
2. The economics are different – this economic downturn is
widespread and the worst we have seen since the Great
3.
4.
5.
6.
Depression
There are more budget “lock-ins” than before
Our politics are deadlocked – gerrymandered legislative districts,
political polarization among Democrats and Republicans, term
limits, etc.
The state’s revenue system is highly volatile
Enormous social and demographic changes – our governance
system has not kept pace with the rapid changes occurring in
California
Major Revisions for 2008-09
 We lose the 0.68% cost-of-living adjustment (COLA) and more in the
current year
 No relaxation of the Designated Reserve for Economic Uncertainties
requirement
 Cuts are now evenly split between revenue limit and categorical
programs
 Cuts come too late to save anything this fiscal year – most districts will
lose the revenue for this fiscal year and then make cuts in the next fiscal
year to restore the reserve
11/6/2015
Major Provisions for 2009-10
 State continues to raise taxes, borrow, and cut programs
 Education again loses COLA and more, and takes further
reductions to categorical funding
 Managing our budget will be difficult
 Cash management continues to be an issue
 We will have the highest deficit factor in California’s
history
-9
19 4
94
-9
19 5
95
-9
19 6
96
-9
19 7
97
-9
19 8
98
-9
19 9
99
-0
20 0
00
-0
20 1
01
-0
20 2
02
-0
20 3
03
-0
20 4
04
-0
20 5
05
-0
20 6
06
-0
20 7
07
-0
20 8
20 08-0
09
-1 9
0e
st
.
19
93
2.000%
0.000%
4.000%
0.000%
0.000%
0.892%
2.143%
3.002%
0.000%
0.000%
0.000%
6.000%
10.120%
8.801%
8.801%
8.801%
7.844%
6.996%
10.000%
12.000%
13.094%
11.010%
8.000%
8.140%
Historical Revenue Limit Deficit Factor
(Not incremental – from 0% deficit to 13% deficit in 2 years)
14.000%
Special Election Ballot Issues
 Six propositions for the May 19, 2009,
statewide special election ballot – the first
three are most significant for local
educational agencies (LEAs)
May 19th Ballot Initiatives
 Proposition 1A: State Finance
This measure would make major changes to the way in which the state
sets aside money in one of its “rainy day” reserve accounts and how
this money is spent.
As a result, Proposition 1A could have significant impacts on the state’s
budgeting practices in the future. The measure would tend to
increase the amount of money set aside in the state’s rainy day
account by increasing how much money is put into this account and
restricting the withdrawal of these funds.
If this measure is approved, several tax increases passed as part of the
February 2009 budget package would be extended by one to two
years. State tax revenues would increase by about $16 billion from
2010-11 through 2012-13.
May 19th Ballot
 Proposition 1B: Education Finance
Amends the State Constitution as it relates to Proposition 98,
providing "supplemental education" payments in place of recent
"maintenance factor" payments. Also provides greater discretion
to the Legislature and Governor regarding how the payments
would be distributed.
 Requires supplemental payments of $9.3 billion over
time, commencing in 2011-12, in lieu of Maintenance
Factor amounts related to fiscal years 2008-09 and
2009-10
 If passed, this proposition guarantees that education
funding will be restored
 If it fails, we must pursue reimbursement by other means
May 19th Ballot Initiatives
 Proposition 1C: California State Lottery
This measure makes major changes to the 1984 voter initiative that
created the California Lottery. These changes could increase
lottery ticket sales and allow the state to borrow $5 billion in the
2009-10 fiscal year from future lottery profits.
In addition to borrowing this $5 billion, the state also could borrow
more from lottery profits in future years. Under the measure,
lottery profits now dedicated to schools and colleges would be
used to pay back the borrowing. The measure would increase
state payments to education from the state General Fund to
make up for the loss of these lottery payments.
May 19th Ballot Initiatives
 Proposition 1D: Budget Act of 2008:
California Children and Families Act: Use of
Funds: Services for Children
 Temporarily allows the redirection of existing money to
fund health and human service programs for children
of up to five years of age
May 19th Ballot Initiatives
 Proposition 1E: The Mental Health Services
Act: Proposition 63 Amendments
 Redirects specified Mental Health Services Act monies
for fiscal years 2009-10 and 2010-11 to support a preexisting mental health program
May 19th Ballot Initiatives
 Proposition 1F: State Officer Salary Increases
 Prohibits salary increases for legislators or other state
officers if the Director of Finance has certified there will
be a negative balance in the Special Fund for
Economic Uncertainties
Impact of Uncertain Election Results
 Much of the State Budget is contingent upon success of
ballot measures
 The Budget relies on issuance of Lottery securitization bonds to
generate $5 billion – creates a shortfall if Proposition 1C fails
 Voters may not want to divert monies from initiatives they
previously passed
 If Proposition 1A, (Budget Stabilization Fund) fails:
 K-14 schools will not automatically get the additional $9.3 billion in
maintenance factor amounts
 Will pursue those monies through alternative means
 Temporary tax increases included in will expire 1-2 years earlier
than if voters approve Proposition 1A
 If Propositions fail, the May Revision could include more cuts
State Budget Impacts
2008-2009 & 2009-2010
(Based on what we know today)
San Rafael Elementary
School District
Undeficited Revenue Limit –
Comparison
$6,200
San Rafael Elementary School District
$6,100
$6,000
$5,855
$5,900
$5,800
$315
COLA
$5,700
$5,600
$6,150
$295
COLA
$315
COLA
$5,540
$5,500
$5,400
$5,300
2007-08
Funded Base
Revenue Limit
2007-08
Funded Base
Revenue Limit
2007-08
Funded Base
Revenue Limit
2007-08
2008-09
2009-10
$5,200
San Rafael Elementary School District
2008-09 Deficit Applied
Apply 2008-09 deficit
of 7.844% to the
expected funding for
2008-09 Revenue
Limit per ADA
$6,500
Funded Revenue Limit After Deficit
$6,300
$6,100
$5,855
$5,855
2008-09
COLA
No COLA
$315
RL Cut
$144
$5,900
$5,700
$5,500
$5,300
Funded Revenue Limit =
$5,855 x (1.0 – 0.07844)
$5,855 x 0.92156 =
$5,396
$5,100
$4,900
SRESD
Funded
Revenue
Limit of
$5.540
Funded
Revenue
Limit
$5,396
$4,700
$4,500
2008-09 Revenue Limit
Before Deficit
2008-09 RL After Deficit
San Rafael Elementary School District
2009-10 Deficit Applied
Apply 2009-10 deficit
factor of 13.094% to the
undeficited 2009-10
Revenue Limit per ADA
$6,400
$6,200
$6,000
$5,800
$5,600
Funded Revenue Limit =
$6,150 x (1.0 – 0.13094)
$6,150 x 0.86906
$5,345
$5,400
$5,200
$5,000
$6,150
$6,150
2009-10
COLA
No 2009-10
COLA
$295
No 2008-09
COLA
$315
2008-09 RL Cut
$144
2009-10 RL
$51
09-10
Funded
Revenue
Limit
$5,345
2008-09
COLA
SRESD 0708
Funded
Revenue
Limit of
$5,540
$4,800
2009-10 Revenue Limit
Before Deficits
2009-10 Revenue Limit
After Deficits
San Rafael Elementary School District
The Incredible Shrinking Ending Fund Balance
2008-09
2009-10
2010-11
$2,442,00
0
$1,745,000
$848,000
Loss of 0.68% COLA
-137,000
-137,000
-137,000
Revenue limit cut of
roughly 2.6%
-560,000
-560,000
-560,000
Revenue limit cut of
roughly 0.94%
—
-200,000
-200,000
$1,745,00
0
*$848,000
*-$ 49,000
Beginning Fund
Balance
Ending Fund Balance
By doing nothing – Our 2nd Interim for 2008-2009 would be Negative
Unable to meet minimum Reserve Requirements for 09-10 or 10-11
San Rafael Elementary School District
 Summary of additional Revenue Reductions in newly adopted State Budget
 Current year 2008-2009, plus next 2 fiscal years
 Does not include loss of COLA already posted (Revenue Limit & Categorical)
Loss of 0.68% COLA
Revenue limit cut of
roughly 2.6%
Revenue limit cut of
roughly 0.94%
Categorical Funding Tier II
& Tier III Programs
(15.38% & 4.46%
reduction)
Total Revenue Limit Loss
2008-09
2009-10
2010-11
$137,000
$137,000
$ 137,000
560,000
560,000
560,000
200,000
200,000
$198,500
$248,500
$248,500
$895,500
$1,145,500
$1,145,500
0
San Rafael Elementary School District
 Total Loss of Revenue including Deficits
 Current plus 2 Years based on Initial Draft Multi-year Projections
2008-09
2009-10
2010-11
Total Revenue Limit without
deficit:
$21,641,976
(COLA @
5.66%)
$23,073,808
(COLA @
5.02%)
$23,234,099
(COLA @
.7%)
Total ADA including est.
Growth for 2009-10 @
58
3,667
3,724
3,724
Deficit Factor (per SSC
Dartboard)
.92156
.86906
.86906
$19,944,379
$20,052,523
$20,191,826
<$1,697,597>
<$3,021,285>
<$3,042,273>
Total Revenue Limit
without deficit:
Loss of Revenue from
Deficit
2007-2008 & 2008-2009
Board Actions to Address Fiscal Crisis
 Cut $1.2 million for 2008-2009
 Provided retirement incentive to
reduce salary/benefit costs
 Initiated efficiency measures to
reduce operating costs:
 Agenda Online
 Connect Ed
 Revised District Website
 Independent Audit – Special
Education
 Reduced supply budgets by
10%
 Revenue Enhancements
 Increase Home:School bus
fees
 Increased Reserve for




Economic Uncertainty from 3%
to 5%
Initiated hiring freeze for nonessential positions (12-1-08)
Initiated spending freeze for
non-essential items (12-1-08)
Reduced site level categorical
funds by 50% (12-1-08)
Reduced all supply budgets by
an additional 15%
Multi Year Projections and Basic Budget Assumptions
 2009-2010 - Basic Budget Assumptions:
 Revenues
 Growth in ADA of 57.6 (60 more students)
 Eliminate one-time revenues (Dental Rebate &
categorical)
 Reduce Interest earnings
 5% COLA on Parcel Tax
 Revenue Limit Information from State on COLA
(5.02%) & Deficit (.86906)
 Further reductions to Tier II & III categorical program
revenues of 4.46%
Multi year Projections and Basic Budget Assumptions
(continued)

2009-10 Expenditures
 Step & Column for all employees
 Increase Certificated Staff by 3.0 FTE for growth
 1% Increase for CSEA – Tentative Agreement
 Increase in Special Ed. Expenditures/Contribution $250,000
 Eliminate one-time costs (MacPhail Property Tax &
carryover)
 Increase for CPI and other costs
 10% increase in Property & Liability
 5% increase in utilities
 $30,000 election costs
Multi year Projections and Basic Budget Assumptions 25
(continued)
 2010-11 Basic Budget Assumptions
 Revenues
 Same ADA as 2009-10 (no growth)
 5% COLA on Parcel Tax
 SSC Dartboard Information on COLA (.7%) & Deficit
(.86906) for Revenue Limit & Categoricals
Multi year Projections and Basic Budget Assumptions
(continued)
2010-2011 Basic Budget Assumptions
 Expenditures
 Step & Column for all employees
 Increase Special Education contribution
by $250,000
 Increase for CPI and other costs
 10% increase in Property & Liability
 5% increase in utilities
Multi year Projections and Basic Budget Assumptions
Board Action – March 23, 2009
Expenditure Reductions - 2008-09 Budget

Further reduce Central Services Materials & Supplies
$15,000

Reduce Telephone Budget (reduce cell phones)
$ 8,000

Reduce contribution to Routine Restricted maintenance
$ 35,000

Reduce budget for Central Services Computer Replacement budget
$ 4,000

Reduce Equipment Repair Budgets
$ 10,600

Reduce postage budget
$ 5,000

Reduce Other Contract Services Budget
$ 15,000
 Total 08-09 Reductions (On-going reductions)
$92,600
Multi year Projections and Basic Budget Assumptions
(Initial Scenario This is not the list of recommended cuts
Expenditure Reductions for consideration:

2009-10

Increase and restructure bus pass up to $450/year
$120,000

Restructure Business Services
$ 60,000

Restructure Technology Dept
$ 40,000

Reduce Library Clerks by 50%
$130,000

Reduce custodial Costs by 12.5%
$100,000

Eliminate Dean Position
$ 89,000

Reduce Site-level computer replacement
$ 40,000

Eliminate Outdoor Education (Teacher Stipends)
$ 10,500

Eliminate 1.0 FTE at DMS
$ 65,000

Increase CSR ratio to 23:1
$287,000
 TOTAL 09-10 Reductions:
$941,500
Ongoing
Multi year Projections and Basic Budget Assumptions
Initial Scenario
Expenditure Reductions for consideration:
2009-10 Reductions
$ 92,600
2009-10 Further Reductions
$941,500
$1,034,100
Programs Affected by
Categorical Reductions
Tier I – No Reduction, No Flexibility
After School Education and Safety
Advancement via Individual
Determination
Child Development
Child Nutrition
Economic Impact Aid
Federal Resources
K-3 Class Size Reduction
Pupil Transportation
Quality Education Investment Act
School Bus Replacement
Special Education
State Lottery, including Proposition 20
Tobacco Use Prevention Education
(TUPE)
Tier II – Funding Reduction, No Flexibility
15.38% in 2008-09 plus an additional 4.46% in 2009-10 - cumulative reduction of 19.84%
Adults in Correctional Facilities
Ag Voc Ed Programs
Apprentice Programs
Charter School Facility Grants
Foster Youth Educational Services
English Language Acquisition Program
Multi-Track Year Round Grant Program
Partnership Academies
Tier III – Reduction and Flexibility
15.38% in 2008-09 plus an additional 4.46% in 2009-10 - cumulative reduction of 19.84%
Administrator Training Program (AB 430)
Adult Education
Advanced Placement Grant
Alternative Credentialing
Arts and Music Block Grant
Bilingual Teacher Training
CAHSEE Intervention Grants
CalSAFE
Center for Civic Education
Certificated Staff Mentoring Program
Charter Schools Categorical Block Grant
Child Oral Health Assessments
COE Williams Audits
Community Based English Tutoring (CBET)
Community Day Schools
Counselors, Grades 7-12
Deferred Maintenance
Education Technology
Gifted and Talented Education (GATE)
High Priority Schools
High School Coaching Training
Indian Education Centers
Immediate Intervention/
Underperforming Schools Program (II/USP)
Instructional Materials Fund
International Baccalaureate
Math & Reading Training (SB 472)
Morgan-Hart Class Size Reduction
National Board Certification Incentive
Peer Assistance and Review (PAR)
Physical Education Teacher Recruitment Grants
Professional Development Block Grant
Pupil Retention Block Grant
ROC/P
SAIT and Corrective Actions
School and Library Improvement Block Grant
School Safety Block Grants (Carl Washington)
School Safety Consolidated Competitive Grant
Specialized Secondary Programs
State Assessments (STAR, CAHSEE, CELDT, etc.)
Supplemental Hourly Programs
Targeted Instructional Improvement Block Grant
Teacher Credentialing Block Grant
Teacher Dismissal Apportionments
Rationale - Board Action
Categorical Flexibility
 Budget assumptions unprecedented
and unknown
 LAO projecting $8 billion deficit (2/09)
 Outcome of May 19, 2009 Election
 Lottery Securitization = $5 billion
 Temporary Revenue Increases
 Impact on Multi-year projections
 SRCS Enrollment Projections Shift
 Increase or decrease in enrollment?
2008-2009 State Categorical Flexibility
San Rafael Elementary School District
Tier III Categorical Programs
 2008-09 Full Flexibility for State Programs:

PE Teacher Incentive Funds
$190,124

California High School Exit Exam Funds
$ 30,415

School Safety Block Grant
$ 20,568

Art & Music Block Grants
$ 24,000

Supplemental School Counseling
$ 51,978

Instructional Materials Funds
$210,000

Gifted & Talented Education (GATE)
$ 20,000

Peer Assistance & Review (PAR)
$ 10,000

Math & Reading Professional Block Grant
$ 12,000

School Library & Improvement Block Grant (SLBIG) $147,000
 TOTAL 08-09 Flexibility Option
$716,085 One-time
2009-2010 State Categorical Flexibility
San Rafael Elementary School District
Tier III Categorical Programs
 2009-10 Full Flexibility for State programs:

PE Teacher Incentive Funds
$115,000

School Safety Block Grant
$

Art & Music Block Grants
$ 48,400

Supplemental School Counseling
$ 35,000

Gifted & Talented Education (GATE)
$ 25,000

School Library & Improvement Block Grant (SLBIG) $125,000
 TOTAL 09-10 Flexibility Option
5,000
$353,400 One-time
Federal Stimulus Package
What We Know Today
San Rafael Elementary
School District
American Recovery and Reinvestment Act of 2009
This is one-time money
 Title I
 Special education
 Other?
 There are many unknowns including:
 How much will reach schools?
 When will we receive it?
 What are the appropriate uses?
May (June) Revise
Planning for the Unknown
May Revision Will Be Delayed
 Normally, the statutory May Revision is completed by
May 15 of each year
 Includes updated economic data
 Statutory COLA for Proposition 98 is recomputed and
finalized
 Governor amends his January Budget to reflect economic
and other changes if desired
 Legislature uses the May Revision as a representation of
the Governor’s final proposal before adoption
May Revise 2009
 This year will be different
 Special election on May 19 affects Budget
significantly
 Budget has already been enacted
 State law amended to move statutory
date for May Revision to June 8
Expected Content for May Revision
 We expect that there will be a May Revision
 Economic data will change
 Tax collections will be known
 Statutory COLA factors will be known
 Results of the special election will be known
 We expect that the 2009-10 Budget will need to be amended
 But, this year, the process will be different because the Budget is
in place
 Will the Governor and the Legislature be eager to reopen the
Budget?
 What happens if it needs to be amended and they elect not to or
can’t agree?
 Again we are in uncharted waters
Future Threats to Cash Flow
 The state will continue to face cash
flow difficulties – as such, they will
undoubtedly pass their problems on to
us
 Districts will face the threat of further
education funding shifts and/or
program funding delays going into the
budget year
Timeline for Budget Development
 APRIL




Community Forums & Feedback
Elementary Budget Advisory Committee
Layoff Hearing – Teachers/Administrators
Board Meeting – April 20th
 Classified Layoff Resolution
 Discussion – budget reductions 2009-2010
 Board Direction given to staff
Timeline for Budget Development
 MAY
 Teacher Layoff Determination
 Board Meeting – May 11
 Draft recommended budget reductions
 Special Election – May 19
 Board Meeting – May 25
 Draft recommended budget reductions
Timeline for Budget Development
 JUNE
 “May Revise”
 Determination of necessary steps to present
and adopt a “balanced” budget by June 30th
 Board Meeting
 Initial 2009-2010 Budget presented
 Public Hearing
 Board Meeting
 Public Hearing
 Adoption of 2009-2010 Budget