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Governor’s May Revise May 28, 2013 1. The News from Sacramento 2  2012-13 State revenues are up $4.5 B  The Governor’s May Revision paints a more pessimistic.

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Presentation on theme: "Governor’s May Revise May 28, 2013 1. The News from Sacramento 2  2012-13 State revenues are up $4.5 B  The Governor’s May Revision paints a more pessimistic."— Presentation transcript:

1 Governor’s May Revise May 28,

2 The News from Sacramento 2  State revenues are up $4.5 B  The Governor’s May Revision paints a more pessimistic economic outlook in 2013 and 2014  Is this really the case?  Could the State be manipulating the numbers downward?  The LAO does not agree with the Governor  LAO predicts stronger revenues to continue in  When will we know? How do we plan?

3 General Fund Revenues in © 2013 School Services of California, Inc. Source: Governor’s Budget May Revision , page 10 3

4 Proposition 98 Changes Dramatic swings in Proposition 98 estimates, but little change in ongoing K-12  Further reduce deferrals $2.5 B  Fund Common Core implementation$1.0 B  Estimate of $170 per student in  Increase LCFF first year dollars$240M  Adult Education$270M  Special Ed backfill of sequestration cuts$ 61M 4

5 © 2013 School Services of California, Inc. 5

6 Revenue Projections 6 Revenue LimitDeficit Funded Revenue Limit Base Revenue Limit$6, $5, COLA Base Revenue Limit$6, $5, Increase in Revenue Limit$ Guidance from RCOE and School Services recommends utilizing the lower of the two estimates for revenues until the State Budget is adopted: 1.Local Control Funding Formula 2.Revenue Limit Funding $ x 21,488 ADA = $6,6,69,231 in additional revenue for $1.9M was the original estimate for additional revenues based on 1.65% COLA

7 Multiyear Projection Unrestricted Funds – 2 nd Interim Report data including revised revenue 7 Description nd Interim Projected Projected Total Revenues/Other Sources$122,618,573$129,207,829$128,599,795 Total Expenditures/Other Uses($131,785,238)($130,982,885)($133,210,092) NET INCREASE (DECREASE)($9,166,665)($1,775,056)($4,610,297) Beginning Balance, July 1$26,194,630$17,027,965$15,252,909 Ending Balance, June 30$17,027,965$15,252,909$10,642,612 Ending Fund Balance Components Revolving Cash/Stores$270,000 Unassigned - Economic Uncertainties$6,001,054$5,793,807$5,862,353 Assigned – MAA & Dell Refund$1,321,973$1,143,371$786,476 Estimated Excess / (Shortfall)$9,434,938$8,045,731$3,723,783

8 Final Thoughts 8  The economic outlook is much brighter  Revenue limit increases are projected at $4.4M  $1.9 M was already included  ADA projections have been reduced to reflect zero growth  This is our 3 rd year of declining enrollment  LCFF may provide additional revenues  Board and cabinet priorities are aligned and include:  Employee compensation  Program development  Reduction of class sizes


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