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:
Governor’s May Revise May 28,
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?
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
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
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
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