Transcript Budget Update Powerpoint

Budget Update:
GOVERNOR’S JANUARY BUDGET PROPOSAL
January 18, 2011
Governor’s January Budget Proposals
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No mid-year cuts to schools for 2010-11;
Budget assumes temporary taxes are extended by
voters for five more years;
 Option One: Budget assumptions will not change –
Education continues the funding level contained in the
enacted Budget for 2010-11 into 2011-12
 Option Two: Additional $330 per ADA ongoing loss of
revenue;
Tier III flexibility extended two years;
K-3 CSR reduced penalties extended for two additional
years;
Expand prior year funding deferrals by additional $2.1B
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Brings total deferrals to $10B for K-14 Education:
• Equates to approximately 45% of State’s share of revenue limit
funding.
Budget Assumptions – Option
One and Option Two
2010-11
2011-12
2012-13
Statutory COLA
-0.39%
1.67%
1.80%
Deficit Factor
17.963%
$0.82037 per $1.00
19.608%
$0.80392 per $1.00
19.608%
$0.80392 per $1.00
Revenue Limit (RL) w/ COLA
RL w/ deficit
Loss per ADA
$6,573.35
$5,392.58
($1,180.77)
$6,675.35
$5,366.45
($1,308.90)
$6,787.13
$5,456.31
($1,330.82)
OPTION ONE: FLAT
FUNDING
“FLAT FUNDING” = loss of additional $26.13 per ADA
(if tax extensions approved by voters)
OPTION TWO: IF TAX
2010-11
2011-12
2012-13
EXTENSIONS FAIL
Per ADA Reduction
Funded Revenue Limit
($330.00) per ADA
$5,392.58
$5,036.45
$5,456.31
Base Revenue Limit History
7000
6500
6000
5500
5000
4500
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
Base Revenue Limit
Net Funding
RL If Tax Extensions Fail
Multi-Year Projections –
New Assumptions
Assumptions
Financial Report
Budget
Adoption
First Interim
Second
Interim
Budget
Adoption
First Interim
Second
Interim
Fiscal Year
2011-12
2011-12
2011-12
2012-13
2012-13
2012-13
COLA
2.10%
1.70%
1.67%
2.40%
1.90%
1.80%
Deficit Factor
Funded amount
18.355%
$0.81645 per
$1.00
17.963%
$0.82037 per
$1.00
19.608%
$0.80392
per $1.00
18.355%
$0.81645 per
$1.00
17.963%
$0.82037 per
$1.00
19.608%
$0.80392 per
$1.00
Revenue Limit (RL)
Deficited RL
Dollar loss per ADA
$6,701.61
$5,471.53
($1,230.08)
$6,677.19
$5,477.76
($1,199.43)
$6,675.35
$5,366.45
($1,308.90)
$6,851.28
$5,593.73
($1,257.52)
$6,795.21
$5,574.59
($1,220.62)
$6,787.13
$5,456.31
($1,330.82)
Other Revenue
Limit Adjustments
3.85% deficit
applied to RL
State Categorical
Programs
2.10%
0.0%
0.0%
2.4%
1.90%
1.80%
ADA
1021.86
1021.86
994.99 (P1)?
1021.86
1021.86
994.99 ?
3.85% deficit
applied to RL