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Executive Summary  Lodi Unified School District is experiencing a decline in new home building, enrollment growth and funding from the State/Federal governments.

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Presentation on theme: "Executive Summary  Lodi Unified School District is experiencing a decline in new home building, enrollment growth and funding from the State/Federal governments."— Presentation transcript:

1 Executive Summary  Lodi Unified School District is experiencing a decline in new home building, enrollment growth and funding from the State/Federal governments  In January the District was facing an $8.2 million reduction in its major unrestricted funding sources  Planning began to reduce the District’s budget  In May the Governor revised his plans for education which reduced the required cuts to an estimated $4.5 million for Lodi  Recommendations were developed and presented to the Board for comment  Based on Board comments adjustments have been made to the list of recommended reductions  With the recommended reductions the $269,845,419 $269,837,331 General Fund budget is now balanced and can be approved by the Board  All other funds are also balanced and are ready for approval  Staff is recommending approval of the 2008/09 Budget Plan for Lodi USD

2 2008/08 Adopted Budget Presentation Board Meeting June 17, 2008 LODI UNIFIED SCHOOL DISTRICT Business Services Prepared by: Mr. Len Casanega Mr. Douglas Barge Mrs. Carrie Hargis & Staff Y: Business Service/Budget/ /Adopted/Meeting/B /Adopted Budget B

3 Table of Contents Executive Summary I. Introduction II. The Budget Process III. Requests for Information IV. Modeling – Board Discussion V. The 2008/09 Budget VI. State & County Reporting VII. Future Work VIII. Recommendations & Discussion IX. Appendix i SECTIONDESCRIPTION i 1 PAGE #

4 Introduction  On June 3, the Board reviewed a report showing how the District could adopt a balanced budget for 2008/09  The report included the Superintendent’s recommendations for reductions that would be needed  The Board discussed the report and requested more information  Direction was provided to staff for making changes to the budget-balancing model  Staff was also directed to bring some items back for further discussion by the Board  School district governing boards are required by Education Code to adopt a budget on or before July 1 of each fiscal year To meet this requirement, staff has provided information on; –Major Changes since the last Board Report –Assumptions for the 2008/09 Proposed Budget –Overview of the 2008/09 Proposed Budget –Required Reporting Elements i 1

5 The Budget Process Section II

6 The District’s Adopted Process The ProcessThe Process –December 11, 2007, Enrollment projections for 2008/09 were approved –January 29, 2008, Reviewed Governor’s Proposals for 2008/09, Budget Guidelines and the effect on Lodi Unified –June 3, 2008, Impact of Governor’s May Revisions and Budget update –June 3, 2008, Superintendent’s Budget Advisory Committee Annual Report –Tonight, –Tonight, 2008/09 Adopted Budget 2 2

7 The Process, Continued The budget process continues with:The budget process continues with: –District adopting the 2008/09 budget (June 17, 2008) –State budget adoption –Closing the District’s books for 2007/08 –Updating the District’s budget to reflect The state budget Actual ending balances Actual 2008/09 enrollments (CBEDs) Mid-year adjustments –Budgets are revised as needed at each Board business meeting throughout the year –Begin projections for 2009/10 3 3

8 Requests For Information Section III

9 Additional Information - Requested by the Board 1.A complete detailed list of reductions the SBAC had been discussing when the estimated budget reductions were $8.2 million 2.Finger printing profit/loss summary 3.Class-size report for comprehensive high school English classes a.October, 2007 b.April, How long has the psychologist (.50 FTE) vacancy been open?  This position has been open the entire year 4

10 SBAC List of Reductions (*) 5 $7,147,266G. Total Summary of Reductions 929,944 1,544,756 2,873,240 C. Special Education D. Instructional Support B. Instruction 1,027, ,305 E. Business Services F. Facilities & Planning $608,415A. 2007/08 Set-Asides CommitteeDescription * Estimated reduction of $8.2 million were based on Governor’s January Budget proposals. As of May 21, the Committee had agreed upon some of the reductions needed.

11 Vacant Positions 6 A report was provided showing the vacant positions at a point in time. –This information is not readily available in a readable format –The original report was put together within a very short amount of time –Our concern has always been that descriptions and headings could easily lead to invalid conclusions For example, several employees listed at the JAESC (e.g. Speech Therapists) actually work at school sites Staff has taken that report and included further clarification We have highlighted those positions in which a Board member had particular interest This information will be much clearer once our new financial system is completely implemented

12 Modeling Board Discussion Section IV

13 Summary of Reductions 7 $608, ,944 1,012, ,189 $4,498, , ,305 $608, ,944 1,012, ,452 $4,513, , ,305 A. 2007/08 Set Asides C. Special Education D. Instructional Support E. Business Services G. Total Summary of Reductions B. Instruction F. Facilities & Planning BoardSuperintendentDescription

14 Modeling Update - Reductions Summary of Board ChangesSummary of Board Changes K-6 Vice Principals changed from a reduction of 4.50 FTE to a reduction of 2.50 FTE. This will retain 2.00 FTE for site use. Criteria for allocation of this resource will be developed by staff for Board review Reduce Secondary staffing reserve by 2.00 FTE Reduce Textbook Reserves Superintendent’s recommendation contrasted with Board discussion Net changes 8 ($208,094) 123,758 68,737 15,599 $ 0

15

16 The 2008/09 Budget Section V

17 Assumptions We used the Budget Guidelines as the foundation for developing the budget. We began with the Governor’s January budget proposals for 2008/09 We used enrollment projections reviewed by the administration and approved by the Board. We included assumptions that the County requires us to use We incorporate the changes presented at the June 3, 2008 Board meeting –Changes from Governor’s May Revision –Recommended Budget Reductions 6 9

18 General Fund Summary UnrestrictedRestrictedTotal Uses Sources 1. Beginning Balance$7,352, Revenues83,900, Total Sources$91,253,573 $ 20,091,817 $178,583, ,491,941 $27,444, ,392,886 $269,837, Expenditures 3. Total Uses 2. Ending Fund Balances $166,403,461 $178,583,758 12,182,297 $249,623,596 $269,837,331 20,213,735 $83,220,135 $91,253,573 8,003,

19 Sources 1. Revenue Limit Sources $158,489,771$5,881,869$164,371, Federal Revenue15,825, Other State Revenue 14,742,13042,862,775 57,604, Other Local Revenue 2,561,436 2,029,731 4,591,167 (17,301,396) 17,301,3965. Contrib. to Rest. Programs 7. TOTAL SOURCES $178,583,758 $91,253,573 $269,837,331 UnrestrictedRestrictedTotal Description 6. Beginning Fund Balances 20,091,8177,352,628 27,444,

20 Total General Fund Resources 12

21 Uses 1. Certificated Salaries $131,517,721 $100,872,318 $30,645, Classified Salaries 21,179,175 17,727,346 38,906, Employee Benefits 32,823,117 14,919,115 47,742, Supplies 2,834,980 7,351,907 10,186, Contracted Services 10,168,512 8,026,234 18,194, Other Outgo (1,474,641) 4,387,640 2,912,999 UnrestrictedRestrictedTotal 8. Ending Fund Balance12,180,297 20,213,735 8,033, Capital Outlay 162, TOTAL $91,253,573 $269,837, TOTAL $178,583,

22 Total General Fund Expenditures & Reserves 14

23 Ending Fund Balance 1. Assets$419, Economic Uncertainties 7,767, Contingencies 300, TOTAL ENDING FUND BALANCE$ 20,213, Designated Reserves a. AB 87 Reserves1,894,233 c. Total Designated Reserves 3,694,233 b. Carryover Reserve1,800, Categorical Reserves 8,033,

24 Proposed Reductions - Summary A. Instruction$836,405 B. Special Education929,944 C. Instructional Support1,012,884 D. Business Operations987,189 E. Facilities & Planning123,305 F. Total Proposed 2008/09 Reductions$3,889,727 III. Total Proposed Reductions $4,498,142 II. PROPOSED 2008/09 REDUCTIONS I. RESOURCES RETAINED FROM 2007/08$ 608, DescriptionFTEBudget 16

25 The Other Funds Joe Serna, Jr. Charter School $ 2,150,408 Adult Education Fund$ 2,105,637 –Includes COLA & Deficit Child Development Fund$ 3,390,376 Cafeteria $19,677,872 –Staffing Changes & Increased Revenue Deferred Maintenance$ 1,962,224 –Reflects lost State Revenues Facilities $35,277,910 –Project Balances Brought Forward Special Reserve for Capital Outlay$ 5,776,229 Bond Interest, Tax Override & Debt Service$25,768,362 Self-Insurance Funds$16,325,

26 State & County Reporting Section VI

27 State & County Reports County Budget Assumptions –Required by San Joaquin County Office Education –Details the change from 2007/08 Estimated Actuals to 2008/09 Budget State Reports include Standards & Criteria –Used by county offices of education and the California Department of Education –To develop, review & assess budgets and interim financial reports of school districts in California 14 18

28 State & County Reports - Continued State Reports Include Multi-Year ProjectionsState Reports Include Multi-Year Projections 2009/ – –ADA Growth 0.25%0.25% – –Revenue COLA 0%2.70% – –Certificated Step/Col.1.54%1.54% – –Certificated COLA 0% 0% – –Classified Step/Col.1.55%1.55% – –Classified COLA 0% 0% – –Utility Increase.50%.50% Impact-UnrestrictedImpact-Unrestricted –Change in Fund Balance ($ 4,229,439) $ 19,598 – –Ending Fund Balance $12,180,297 $7,950,

29 Future Work Section VII

30 Future Work Review Vice-Principal Formula Implement Vice-Principal Allocations Budget Process –Use of Budget Revisions to make adjustments as requested by the Board 20

31 Recommendations & Discussion Section VIII

32 Timeline & Possibilities i 21 REDUCTIONS YES OPTION #2 Approved as submitted with Board direction to make changes on 7/01/08 via a Budget Revision OPTION #1 Adopted / SACS 6/17/08 NO

33 Recommendation Board Adopt the 2008/09 Budget with the changes discussed at the June 3, 2008 meeting Any additional changes will be made using the budget revision process –Could start with the July 1, 2008 Board Meeting Changes to budget resource allocations be placed on the agenda for planning future budgets Prioritize items to be restored if additional funding is received The Superintendent and Staff recommend that the Board of Education approve the 2008/09 Budget as presented. 22

34 Appendix A. A.Updated Budget Modeling B. B.Budget Reductions C. C.SBAC Budget Reductions D. D.Finger Printing Program E. E.English Class Size F. F.Vacant Positions G. G.Additional Reductions if Necessary H. H.Other Staffing Changes I. I.Required State Reporting J. J.County Office of Education Reporting Section IX

35 A. Budget Modeling

36 2008/09 Enrollment Projections A. PROGRAMS PROJECTED STUDENTS GROWTH 2007/08 CBEDS ADA 1. Regular K-6 15, Regular 7-8(6)4, Regular ,057 15,666 4, (6) 398, All Other Programs 2, Serna Charter School Total K-12 Increases 30, , A1

37 Summary of Growth Expenses DESCRIPTIONF.T.EBUDGET 1. Teacher Staffing$597, Podesta Elem. Start-Up 4. Principals & Secretaries – Podesta Elem. Start-Up 119, Custodial Support & Bus Drivers 53, Special Ed. Staffing (Cert. & Class.)115, Per-Pupil Allocations11, Total Growth Expenses $939, Instructional Support Staff - Formula13, Operations Support Staff - Formula13, Site Clerical, Noon Duty & Campus Supv.15, A2

38 Summary of On-Going Expenses DescriptionsF.T.EBUDGET 3. Retiree Benefit Costs (pay as you go)232, Utilities & Insurance (182,096) 7. Technology100, Cost of Negotiated Settlements for 08/09 1,670, Total On-Going Expenses $5,309, Routine Restricted Maintenance (3%)191, Projected Step & Column Costs $2,632, Fuel (transportation) 63, Secondary Teacher Staffing Reserve374, Health Services61, Operations Costs137, Home Instruction28,500 A3

39 Summary of One-Time Expenses DescriptionsF.T.EBUDGET 1. General Reserve Requirement (3%) $191, Total One-Time Expenses $516, Energy Conservation Programs 325,000 A4

40 Summary of Increased Costs DescriptionF.T.EBudget 7.50 B. Growth Costs939, D. Total Estimated Uses$6,766, C. One-Time Costs516,494 A. Increased Mandatory Costs$5,309,736 A5

41 Estimate of Growth Income A. Net Growth Income$1,033,097 B. Special Education Growth98,657 DescriptionBudget C. Class-Size Reduction – Grades K-3124,124 E. Total Estimated New Income$1,278,021 D. Lottery Income ($122.50)22,143 A6

42 COLA & Other Funding Sources Descriptions ON-GOING TOTAL ONE-TIME 1. Class-Size Reduction K-3 (deficit) (625,800) 2. Transportation COLA (deficit) (333,684) 3. Routine Restricted Maint. (3%) 294, General Reserve (3%) 294, Total Funding Sources ($664,995)($370,506) $294,489 A7

43 Overall Structural Balancing DescriptionTotal One- Time Time B. Funding Sources/Uses (5,488,091) (4,971,597) On-Going C. Other Sources (370,506) (664,995) D. Total D. Total ($4,498,142) ($4,276,137) A. Structural Balancing (Prior) $1,360,455 ($222,005) ($222,005) ($516,494) 294,489 A8 E. Proposed Reductions (4,498,142) (3,809,133) ($689,009) F. Funding Sources/Uses $ 0 ($467,004) $467,004

44 B. Budget Reductions

45 Budgets Retained From 2007/08 B1

46 Instruction, On-Going Options B2

47 Special Education, On-Going B3

48 Instructional Support, On-Going B4

49 Instructional Support, On-Going B5

50 Instructional Support, One-Time B6

51 Business Operations, On-Going B7

52 Business Operations, On-Going B8

53 Business Operations, One-Time B9

54 Facilities & Planning, On-Going B10

55 C. SBAC Budget Reductions

56 SBAC - Work The Superintendent’s Budget Advisor Committee (SBAC) began its work with a goal of reducing the budget by $8.2M. Using staff’s list and adding their own thoughts, a $7.1M potential reduction list was in progress. The Committee had not completed nor taken action on this list prior to the Governors May revision. After the May Revise it was determined the necessary reductions would be $4.5M. The SBAC was given this new goal and completed its work with a recommendation for the Superintendent’s consideration. The SBAC took further action on $1M and prioritized that list, should more reductions be necessary. C1

57 Budgets Retained From 2007/08 C2

58 Instruction, On-Going Options C3

59 Instruction, On-Going Options C4

60 Special Education, On-Going C5

61 Instructional Support, On-Going C6

62 Instructional Support, On-Going C7

63 Instructional Support, One-Time C8

64 Business Operations, On-Going C9

65 Business Operations, On-Going C10

66 Business Operations, One-Time C11

67 Facilities & Planning, On-Going C12

68 D. Finger Printing Program

69 Finger Printing Program D1

70 E. English Class Size

71 English Class Size Ninth Grade Tenth Grade Eleventh Grade Twelfth Grade Other Programs Bear Creek Description Oct. Apr Lodi High Oct. Apr. E1

72 English Class Size Ninth Grade Tenth Grade Eleventh Grade Twelfth Grade Other Programs McNair Description Oct. Apr Tokay Oct. Apr. E2

73 F. Vacant Positions

74 Position Control Vacancies F1

75 Position Control Vacancies F2

76 Position Control Vacancies F3

77 Position Control Vacancies F4

78 Position Control Vacancies F5

79 Position Control Vacancies F6

80 Position Control Vacancies F7

81 Position Control Vacancies F8

82 Position Control Vacancies F9

83 Position Control Vacancies F10

84 Position Control Vacancies F11

85 G. Additional Reductions If Necessary

86 SBAC – If Additional Cuts Are Necessary G1

87 H. Other Staffing Changes

88 Summary of Staffing Changes – Other Funds A. Cafeteria Manager I – Podesta$36,562 B. Cafeteria Assistant I - Podesta41,858 C. Cafeteria Assistant I - Millswood(31,394) I. FOOD SERVICES (.75) DescriptionFTEBudget H1 G. Total Food Services$36, D. Cafeteria Assistant II - Millswood39,270 E. Contracted Sub38, F. Various Vacant Positions(88,446)(2.12)

89 Summary of Staffing Changes – Other Resources A. Facilities & Planning Technician$68,308 B. Typist Clerk II12,116 E. Total Routine Restricted Maintenance$85,906 III. ROUTINE RESTRICTED MAINTENANCE DescriptionFTEBudget H2 C. Maintenance I(64,385) D. Maintenance II69,867 (1.00) 1.00 II. SELF INSURANCE FUND A. Risk Manager($46,646) (.50) B. Total Self Insurance Fund($46,646)(.50)

90 I. Required State Reports *See Attachment in Board Item

91 J. County Office of Education Reports *See Attachment in Board Item


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