Presentation on theme: "First Interim Budget Report 2011-12 Activity through October 31, 2011 Presented December 13, 2011 Steven Lawrence, Ph.D., Superintendent Bryan Richards,"— Presentation transcript:
First Interim Budget Report Activity through October 31, 2011 Presented December 13, 2011 Steven Lawrence, Ph.D., Superintendent Bryan Richards, Chief Financial Officer
W HY IS THE ENDING BALANCE HIGHER THAN PROJECTED LAST YEAR ? Revenue2nd IntEst ActActuals Revenue Limit 164,735, ,281, ,298,896 Federal 337, , ,246 State 31,194,239 31,199,245 34,034,994 Local 2,535,869 3,162,628 4,145,444 Interfund 1,572,413 Total Revenue 200,375, ,552, ,626,993
W HY IS THE ENDING BALANCE HIGHER THAN PROJECTED LAST YEAR ? Expenditures2nd IntEst ActActuals Cert Sal 87,399,211 87,367,899 85,303,132 Clsf Sal 19,807,654 20,241,703 19,756,243 Benefits 31,778,504 31,086,101 29,970,211 Bks/Supp 7,447,827 4,752,810 3,160,474 Svc/Othr 14,860,512 15,614,258 11,173,754 Capital 112,424 92, ,526 Interfund 2,925,484 3,425,484 3,475,778 Net Contrib 31,393,058 31,773,090 30,845,512 Total Exps 195,724, ,353, ,874,630
W HY IS THE OPENING BALANCE HIGH ? Cash Flow & State Deferrals: Deferrals increased by $8.55M Need higher fund balance to maintain positive cash Programmatic & site budget carryovers $7.5M Late one time revenue payments SDA Adjustment $2M Prior year mandated costs $1.4M State Fiscal Stabilization supplement $1.6M Held off spending anticipating an across the board cut of $330/ADA, now pending as trigger cuts
W HY DO WE NEED A HIGH BALANCE ? The state faces another severe deficit and even steeper reductions in spending on core services, particularly education at all levels. - Contra Costa Times, December 13, 2011 To deal with declining enrollment To deal with cuts to state funding To equip us to keep programs going as long as we can until the States situation turns around To strive not to have more layoffs
: N O COLA + T RIGGER C UTS The 2.24% COLA has been fully offset by an addition to the deficit factor The county advises planning for no COLA in the next two years as well County advises planning on mid-year trigger cuts being ongoing
F UNDED R EVENUE L IMIT VS Graph courtesy of School Services of California, Inc.
W HAT DOES A % CUT LOOK LIKE ? School year is 180 days % of school year is days To cut school by % we would have to close after school ended on April 25 th A % reduction of the school day would equal over 1 hour less instruction daily
10/11 REVENUE LIMIT CUT WIDENS TO $1,282/ADA
D ECLINING ENROLLMENT We are still in declining enrollment funding model We are projecting a decline of ADA in 2011/12 from 2010/11 This does not include effect of potential charter school conversion since district will still have to report their ADA
MDUSD ADA IS STILL DECLINING !
H OW DOES REVENUE LIMIT FUNDING LOOK ? *Includes $11M reduction due to CVHS Charter
U NRESTRICTED G ENERAL F UND R EVENUE Revenue Limit Sources$ 165,734,968 Federal Revenue 347,273 Other State Revenue 31,848,432 Other Local Revenue 1,893,298 Interfund Transfers In 0 Total Revenue 199,823,972 Less: Net Contrib. to RGF (40,719,672) Net Available Revenue $ 159,104,300
Revenue Limit is 83% of unrestricted general fund revenue.
U NRESTRICTED G ENERAL F UND E XPENDITURES Certificated Salaries $ 92,623,130 Classified Salaries 19,414,849 Employee Benefits 33,487,888 Books & Supplies 5,538,316 Services & Operating 12,584,907 Capital Outlay 179,420 Other Outgo 0 Interfund Transfers Out 3,904,687 Total Expenditures 167,733,197
Salaries and Benefits make up 86.75% of expenditures & transfers out
U NRESTRICTED G ENERAL F UND S UMMARY Net Available Revenue $ 159,104,300 Net Expenditures 167,733,197 Net (decrease) fund bal. (8,628,897) Beginning Balance, July 1 45,543,430 Projected Ending Balance $ 36,914,533
C OMPONENTS OF E NDING B ALANCE Revolving Cash $ 300,000 Stores Inventory 419,478 Economic Uncertainties (2%) 5,857,997 IRS Assessment Resolution 533,500 Tier 3 Balances & Site carryovers 6,851,032 State trigger cuts 9,686,366 Undesignated 13,266,160 Ending Balance $ 36,914,533
R ESTRICTED G ENERAL F UND R EVENUE Revenue Limit Sources $ 7,134,045 Federal Revenue 26,528,680 Other State Revenue 40,072,781 Other Local Revenue 10,130,583 Interfund Transfers In 0 Contribution from Unr. 45,275,298 Total Revenue $129,141,387
R ESTRICTED G ENERAL F UND E XPENDITURES Certificated Salaries $ 37,464,789 Classified Salaries 19,991,549 Employee Benefits 23,038,613 Books & Supplies 14,427,980 Services & Other Operating 27,908,185 Capital Outlay 1,798,331 Other Outgo 1,215,293 Indirect Costs 3,877,515 Total Expenditures $ 129,722,255
R ESTRICTED G ENERAL F UND S UMMARY Total Revenue $ 129,141,387 Total Expenditures 129,722,255 Net (decrease) in fund bal. ( 580,868) Beginning Balance, July 1 13,180,547 Projected Ending Balance $ 12,599,679
O THER F UNDS OF THE D ISTRICT Funds for special purposes excluded from the General Fund Special Revenue Funds Charter School – Form 09I Adult Education – Form 11I Cafeteria – Form 13I Deferred Maintenance – Form 14I Capital Projects Funds Building (Proceeds of local bonds for construction) – Form 21I Capital Facilities (a.k.a. Developer Fees) – Form 25I
O THER F UNDS OF THE D ISTRICT ( CONT D ) Capital Project Funds (continued) County School Facilities Fund (Developer Fees) – Fund 35I Capital Project Fund for Blended Component Units (Mello-Roos Measure A) – Fund 49I Debt Service Funds Bond Interest & Redemption Fund (Measure C) – Fund 51I Debt Service Fund for Blended Component Units (Measure A) – Fund 52I Trust Funds Foundation Private-Purpose Trust Fund – Fund 73I
S UPPLEMENTAL I NFORMATION Form AI: Average Daily Attendance decrease of (201.15) in 11/12 will decrease funding for 10/11. Form CASH: Cash Flow – Ending GF cash will be positive but projecting a decline of $9.2M Form RLI: Revenue Limit Calculations Form 01CSI: Criteria & Standards Form CI: Certification to sign summarizes Criteria & Standards – QUALIFIED Cert.
C LAYTON V ALLEY C ONVERSION C HARTER E FFECT – U NRESTRICTED G ENERAL F UND Revenue Limit decrease$ (10,924,996) Rent on CVHS property 450,649 1% oversight fee 116,536 Certificated Salary decrease 4,591,659 Classified Salary decrease 510,091 Benefits decrease 1,525,846 Books & supplies decrease 71,152 Services & operating decrease 307,349 Tier 3 pass through ($127/ADA) (225,679) Net effect annually $ ( 3,577,393) Based on 1,777 units of ADA
F ORM MYPI: M ULTI Y EAR P ROJECTION 6/12 $ 13,266,160 Operating Deficit 2012/13 ( 8,657,649) Trigger cut ongoing 12/13 ( 9,626,491) Adjustment in 2% reserve 273,974 Unappropriated Balance 6/13 ( 4,744,006) Operating Deficit 2013/14 (10,793,323) Trigger cut ongoing 13/14 ( 9,465,376) Adjustment in 2% reserve 1,973 Unappropriated Balance 6/13 $ (25,000,732) Based upon first interim guidance, not todays DOF numbers
Q UALIFIED C ERTIFICATION – W HAT DOES IT MEAN ? The District projects that it may not meet its financial obligations for the current fiscal year or two subsequent fiscal years. We will meet our obligations for this year If necessary, we can issue a TRAN to deal with cash flow Department of Finance report came out too late to be included at first interim We may be unable to meet obligations for next year based on current projections (depending on what form the additional cuts in the Governors January budget take, whether Clayton Valley converts to charter status and settlement of outstanding negotiations)
LAO I SSUES B UDGET A SSESSMENT State Revenues tracking $3.7 Billion below projections Projected $13 billion problem by June 2013 Projects all Tier 1 and about ¾ of Tier 2 trigger cuts needed to take place
G OVERNOR & D EPARTMENT OF F INANCE R EPORT State revenues tracking $2.2 Billion below projections Agrees with LAO on size of cumulative problem over two years Projects full transportation cut and about 5-7% of the additional Tier 2 cut to the revenue limit Kicks can to next year for balance of the two year $13B problem Estimated Revenue Limit decrease of $13/ADA Estimated Transportation decrease of $35.94/ADA Estimated cut of about $1.6M
W HAT ABOUT S OLAR $? Solar expected to go online in late Spring 2012 Savings from COP payments being utilized to fund intervention teachers Savings from electricity helping to ease the deficit issues we see coming in the budget
W HAT NEXT ? M ORE FROM S ACRAMENTO Governor Browns budget will be announced in January Will include $7B in new taxes proposed in his measure Will include trigger cuts to re-balance the budget if measure fails
G OVERNOR B ROWN : T HERE WILL BE MORE CUTS NEXT YEAR From todays press conference: There will be more cuts in the January budget for , but not for between January and June of $13B hole; taxes cover $7B; need to cut $6B; will try to protect K-12 on its share of the $6B I would like to avoid doubling the cuts which will be the effect if the tax measure fails. DOF Mantosantos: All cuts are ongoing.