1. Budget Study Session Berryessa Union School District April 23, 2008

2. Overview of Funds Fund 01 – General Fund A) Unrestricted Sub Fund 01 Major Operating Fund Sub Fund 02 State Lottery – unrestricted

3. Overview of Funds - continued Fund 01 – General Fund B) Restricted Sub Fund 05 – Restricted Routine Maintenance Account (RRMA) Ongoing and Major Maintenance Sub Fund 06 – Categorical programs Created by the Federal or State legislators to serve the special needs of students that are not covered by the general fund regular education programs. Each categorical program comes with its own program intent, rules, regulations, and exemplary practices. A major component of district and site services.

4. Overview of Funds - continued Fund 01 – General Fund Sub Fund 06 – Categorical Programs Sample of Categorical Programs Title I (Federal) Purpose: Improve teaching and learning of children who are at risk of not meeting challenging academic standards and who reside in areas with high concentration of children from low income families. Economic Impact Aid (State) Purpose: Supplemental funding to support additional programs and services for English Learners and economically disadvantage students.

5. Overview of Funds - continued Fund 01 – General Fund B) Restricted Sub Fund 07 – Transportation Costs associated with transporting students to and from school Sub Fund 08 – Special Education Monitor state, federal and local funded activities related to special education students

6. Overview of Funds - continued Fund 12 – Child Development Fund Account separately for federal, state, and local revenues to operate child development programs Fund 13 – Cafeteria Special Revenue Fund Account separately for federal, state, and local resources used to operate the child nutrition program

7. Overview of Funds - continued Fund 14 – Deferred Maintenance Fund Account separately for state apportionment and local contributions for deferred maintenance purposes Fund 21 – Building Fund Account separately for proceeds from the sale of bonds

8. Overview of Funds - continued Fund 25 – Capital Facilities Fund Account separately for money received from fees levied on developers as a condition of approving a development Fund 40 – Special Reserve Fund for Capital Outlay Projects Proceeds from the sale of the Flickinger site

9. Enrollment vs. Attendance Virtually all funding received by a local educational agencies (LEAs) is based on either enrollment or average daily attendance (ADA). Enrollment is an important variable when deciding how to staff schools and district operations.

10. Enrollment vs. Attendance – continued

11. CBEDS P-2 ADA (7 th School Month) 2004-05 8419 8192.36 2005-06 8342 8148.96 2006-07 8264 8082.07 2007-08 8298 8111.75

12. Review of 2 nd Interim Adopted Budget: 6/30 First Interim Report: Data cut-off 10/31 Report presented to Board on/before 12/15 Report due to COE 12/15 Second Interim Report: Data cut-off 1/31 Report presented to Board on/before 3/15 Report due to COE 3/15

13. Review of 2 nd Interim - continued Positive Certification – The District will be able to meet its financial obligations for the current fiscal year and subsequent two years. Qualified Certification – The District may meet its financial obligations for the current fiscal year or subsequent two years. Negative Declaration – The District will be unable to meet its financial obligations for the remainder of the fiscal year or for the subsequent fiscal year.

14. Revenue Limit Calculation 2008-09 at 10/31/2007 (1 st Interim) COLA (Cost of Living Adjustment) 4.3%, no deficit Base Revenue Limit per ADA: $5,755.67 Projected ADA: 8,073.17 Total Revenue Limit = $46,162,090

15. Revenue Limit Calculation - continued 2008-09 at 1/31/2008 (2 nd Interim) COLA (Cost of Living Adjustment) 4.94% with 6.99% Deficit Base Revenue Limit per ADA: $5,793.67 before deficit; $5,388.69 after deficit Projected ADA: 8,073.17 Projected Total Revenue Limit: $43,187,209

16. Projected Deficit (Governor’s Budget) Revenue Limit Decreased between October 2007 and January 2008: $2,974,000 Projected deficit for State Programs: $387,000 K-3 CSR Deficit: $395,000

17. How Did Things Get So Bad - State Revenue forecasts for 2006-07, 2007-08 and 2008-09 have been downgraded. Spending is higher than anticipated due to lower than expected local property tax collections; firefighting costs; a recent court decision; and unachieved 2007-08 budget savings. An ongoing imbalance between revenues and expenditures.

18. July Apportionment Deferral ABX3 4 – This bill defers a one-time basis $1.1 billion for July Advance Apportionment until September in order to help meet the state’s need for cash. Month Current Ed Code 14041 (a) Under ABX3 4 July6% of annual apportionment 0.9% of annual apportionment August12% of annual apportionment September8% of annual apportionment 13.1% of annual apportionment

19. Circumstances/Legislation That May Change the Deficit AB 1908 – which would give local educational agencies flexibility to spend prior year unencumbered general fund balances in the event that Proposition 98 is suspended AB 2831 – which would give districts the flexibility to transfer prior year unencumbered categorical program funds to the district’s unrestricted general fund for Budget Years 2008-09 and 2009-10 in lieu of full funding

20. Circumstances/Legislation That May Change the Deficit AB 2832 – which would reduce LEAs required contribution to the routine restricted maintenance account from 3% to 1.5% in the 2008-09 and 2009-10 Budget Years in lieu of full funding

21. Latest Information The April tax collections, personal income, sales & use, and corporate, are down from the governor’s January forecasts. Property tax – A survey by County assessors showed the statewide growth for the budget year is sharply below projections. The final numbers will not be known until May.

22. May Revision May Revise – May 14, 2008 Include the latest state revenue forecast factoring in April tax collections Revise January budget Planning for the worst, but hoping for the best.