2. MDUSD Proposed Budget Bryan Richards Director of Fiscal Services June 30, 2009

4. In our last episode…, ► Governor blew the tires off of the bus by slashing transportation funding 65% ► Decimated School Districts begin piecing together how to react to a devastating 17.967% deficit factor ► State Controller John Chiang indicated the State could run out indicated the State could run out of cash by July 28 of cash by July 28

5. And tonight…, ► Legislature passes parts of amended budget package including education without 2/3 majority ► Governor threatens veto on all bills without 2/3 majority ► All sides appear to have dug in their heels ► Chiang says State will start issuing registered warrants (funny money) on Thursday July 2 without budget. on Thursday July 2 without budget.

6. What the cut looks like

7. How much have we lost? ► $698.16 per ADA shortfall in 2008/09 = $23,260,031 ► $1,144.54 per ADA shortfall in 2009/10 = $37,933,798 + $1,832,000 trans = $39.8M ► $1,154.96 per ADA shortfall in 2010/11 = $38,064,560 + $1,832,000 = $39.9M ► $1,182.81 per ADA shortfall in 2011/12 = $38,771,991 + $1,832,000 = $40.6M ► Total in 4 years = $143,526,380 ► Grows over $41,300,000 per year thereafter

8. Unrestricted General Fund Revenues ► Revenue Limit Sources $ 169,680,193 ► Federal Revenue 225,054 ► Other State Revenue 27,789,772 ► Other Local Revenue 1,531,495 ► Total Revenue 199,226,514 ► Less: Net Contrib. to RGF (44,444,290) ► Net Available Revenue $ 154,782,224

10. Unrestricted Expenditures ► Certificated Salaries $ 91,336,704 ► Classified Salaries 20,648,127 ► Employee Benefits 31,988,187 ► Books & Supplies 5,131,265 ► Services & Operating 495,581 ► Capital Outlay 137,720 ► Other Outgo 929,381 ► Interfund Transfers Out 6,409,846 ► Total Expenditures 157,076,811 ► Less: Indirect Cost Xfrs In (4,460,130) ► Net Expenditures $152,616,681

12. Unrestricted Bottom Line ► Net Available Revenue $154,782,224 ► Net Expenditures 152,616,681 ► Net (decrease) fund bal. 2,165,543 ► Beginning Balance, July 1 5,061,119 ► Projected Ending Balance $ 7,226,662

13. Components of Ending Balance ► Revolving Cash$ 300,000 ► Stores Inventory 250,000 ► Economic Uncertainties (2%) 5,472,456 ► Undesignated Balance 1,204,206 ► Ending Balance$ 7,226,662

14. Restricted Revenue ► Revenue Limit Sources $ 5,036,550 ► Federal Revenue 22,521,397 ► Other State Revenue 33,100,968 ► Other Local Revenue 6,922,640 ► Net Contrib. from Unr. 44,444,290 ► Total Revenue $112,025,845

16. Restricted Expenditures ► Certificated Salaries $ 32,326,414 ► Classified Salaries 19,594,642 ► Employee Benefits 21,719,245 ► Books & Supplies 7,642,026 ► Services & Other Operating 33,467,868 ► Capital Outlay 55,000 ► Other Outgo 2,505,016 ► Indirect Costs Xfr Out 3,695,907 ► Total Expenditures $ 121,006,118

18. Restricted Bottom Line ► Total Revenue $ 112,025,845 ► Total Expenditures 121,006,118 ► Net (decrease) in fund bal. ( 8,980,273) ► Beginning Balance, July 1 9,099,954 ► Projected Ending Balance $ 119,681

19. Donations Update ► Donations received since the “hat” campaign began total:

20. Other Funds ► Funds for special purposes excluded from the General Fund ► Special Revenue Funds  Charter School – Form 09  Adult Education – Form 11  Cafeteria – Form 13  Deferred Maintenance – Form 14 ► Capital Projects Funds  Building (Proceeds of local bonds for construction) – Form 21  Capital Facilities (a.k.a. Developer Fees) – Form 25

21. Other Funds ► Capital Projects Funds (continued)  County School Facilities (State Allocations for construction) – Form 35  Capital Project for Blended Component Units (Mello- Roos) – Form 49 ► Debt Service Funds  Bond Interest and Redemption – Form 51  Debt Service for Blended Component Units (Mello-Roos) – Form 52 ► Foundation Private-Purpose Trust Fund (Scholarship Fund) – Form 73 ► All “Other Funds” projecting positive fund balances

22. Events to watch for next season… ► Will the State Legislature pass a revised budget?  Cannot agree on cuts versus revenue increases  Already missed June 15 deadline, June 30 deadline… (Julgusepoctemberary 32 nd ?) ► Will the Governor sign it? ► Health care increases lower, but still above CPI and COLA ► ARRA goes away after 2010/11 ► We go back to deficit spending in the out years ► Have a great summer and stay tuned