Golden Plains Unified School District Report on the Status of the 2011-12 Unrestricted General Fund Budget & Multi-Year Projections Golden Plains Unified School District Presented by Terry Bradley Fiscal Advisor to Fresno County Superintendent of Schools Cantua Elementary School May 10, 2011 559-217-4888 tbradley@sbcons.com

Topics for Discussion Typical Time-Schedule for Adoption of Budget Multi-Year Unrestricted General Fund Revenue Projections Multi-Year Unrestricted General Fund Expenditure Projections Review of Projected Unrestricted General Fund Balances/Reserves Possible Unrestricted General Fund Budget Reductions Development of Fiscal Recovery Plan (future discussion)

Typical Time-Schedule for Adoption of Budget Event Date Start development of expenditure projections December Announcement of Governor’s proposed budget January 10th Projected revenue based on Governor’s proposed budget End of January Preliminary budget presentation to Governing Board February Adoption of 2nd Interim Report including multi-year projections March Adoption of 3rd Interim Report (if negative certification) May Revise revenue projections based on May Revise proposal Early May Approve expenditure increases/decreases based on May Revise End of May Conduct public hearing on budget (all funds) End of June* Approve budget (all funds) *No Later than June 30th

Multi-Year Unrestricted General Fund Revenue Projections Source 2010-11 2011-12 2012-13 Revenue Limit Sources $11,239,713 $10,366,459 $10,417,880 Federal Revenue Other State Revenue* 1,913,441 1,839,353 Other Local Revenue 258,168 267,602 Other Financing Sources (1,394,710) (1,520,696) (1,601,324) TOTAL $12,016,612 $10,952,718 $10,923,511 *Includes reporting all Tier III categorical (restricted) revenue as unrestricted.

Multi-Year Unrestricted General Fund Expenditure Projections* Category 2010-11 2011-12 2012-13 Certificated Salaries $5,690,051 $5,803,852 $5,919,929 Classified Salaries 1,488,841 1,518,618 1,548,990 Employee Benefits 2,664,231 2,717,516 2,771,866 Books & Supplies 601,150 Services/Operating Exp. 2,150,401 2,360,599 Capital Outlay 104,004 Other Outgo 218,686 Indirect Charges (74,475) Other Financing Uses 120,000 TOTAL $12,962,889 $13,369,950 $13,570,749 *Based on 2nd Interim

Review of Projected Unrestricted General Fund Balances/Reserves Component 2010-11 2011-12 2012-13 Total Revenue & Fin. Sources $12,016,612 $10,952,718 $10,417,881 Total Expenses & Other Uses 12,962,889 13,369,950 13,570,749 Difference $ (946,277) $(2,417,232) $(3,152,868) Beginning Fund Balance, July 1 $2,580,279 $1,634,002 $ (783,230) Increase/Decrease in Fund Bal. (946,277) (2,417,232) (3,152,868) Ending Fund Balance, June 30 $(3,936,098) Recommended Reserve (3%) $ 683,642 $ 695,855 $ 701,879 Over/Under Required Reserve 950,360 (1,479,085) (4,637,977)

Budget Development & Administration Start the process at least seven months before start of fiscal year Project revenue based on Governor’s proposed January budget Report impact on district of Governor’s proposed budget in January to Board members, staff and community Allocate resources based on district goals and priorities Involve staff and community in budget development

Budget Development & Administration Budget Development - Cont’d Budget decisions should not be made in isolation Budget development should be lead by the staff—not Board members Budget recommendations should be developed by Budget committee and presented to the Governing Board in early May Budget documents should be clear and easy to understand by the public Always develop budgets that balance expenses with revenue notwithstanding existing reserves

Budget Development & Administration Budget Administration Revenue and expense budgets should be updated daily as items change Site and district-level administrators should have control of their respective budgets Position control systems should be in place No purchase orders should be approved if adequate resources are not available ADA should be updated no less than monthly

Budget Development & Administration Budget Administration – Cont’d Major budget issues should be reported to impacted staff and to Board members on regular basis Easy to understand budget reports (not SACS) should be made to the Board at least quarterly District and site administrators should be educated on the budget process District and site administrators should be knowledgeable of their respective budgets Once provided the tools, district and site administrators should be held accountable for the effective administration of their budgets

Possible Unrestricted General Fund Budget Reductions Item Est. Unrestricted Exp. Reduction Use Federal Jobs Funds for current employee costs (one time) $409,300 Use SFSF (ARRA) Federal funds for salaries in 10-11 (one time) 158,300 Charge eligible high school teacher costs to restricted funds 116,400 Increase avg. K-3 class size to 26:1 and increase avg. 4-8 class size to 32:1 using multi-grade classes 321,000 Review all Tier III categorical program expenditures to determine possible expenditure reductions TBD Increase high school class size average to 36:1 (5 fewer teachers) 295,500 Close Helm Elementary School 44,200 Reduce work year for all district employees (subject to collective bargaining with employee unions) Reduce district office/operations staffing (certificated and classified) Continued on next slide…

Possible Unrestricted General Fund Budget Reductions – cont’d Item Est. Unrestricted Exp. Reduction Transfer unrestricted expenses to restricted programs as legally permissible TBD Reduce salaries and Increase employee contribution for health benefits (subject to negotiations with employee unions) Reduce supply and material budgets district-wide Eliminate/reduce capital outlay expenses 104,000 Eliminate/reduce conference & travel expenses except for travel deemed “critical to district operations.” 15,000 Charge Title I for transporting students from San Joaquin to Helm Elementary 33,300 Use Adult Ed. (Tier III) funds to cover unrestricted expenses 120,000 Transfer additional salary/benefit costs to QEIA to reflect increased teachers necessary at San Joaquin Elementary 200,000 TOTAL 1,817,000