Ramona Unified School District July 1 st Budget Adoption For The Fiscal Year June 18, 2009

Tonight’s Discussion  Update on the many changes that have happened since May Federal Stimulus Dollars Governor’s Budget Revision  Flexibility Program  Major Changes Already Occurring  Looking Ahead to  Other Funds

Update from May  P-2 Reporting Period P-2 (average daily attendance) is the basis of the revenue limit The actual P-2 report was higher than estimated From 6,271 estimate in May to the actual 6,348.2 in June Effect is an increase in revenues  Federal Stimulus Dollars $1,729,000 for State Stabilization is infused into budget  2 nd apportionment figures have been released 20% of IDEA Federal Stimulus dollars for , with the other 80% into the budget  $1,494,000 total IDEA Federal Stimulus funding

Update from May  May 14 th Governor’s Revision In February the State enacted a budget for Since then state revenues have continued to decline more than projected, causing the need for further adjustments Over the two-year period, and , the Governor has proposed additional revenue limit cuts of $2.9 million to RUSD  All three of these significant factors are incorporated into the budget

July 1st Budget  Total Revenues$50,682,879  Total Expenses$51,094,471  Difference$ ( 411,592)  Estimated Ending Balance $2,812,499  Estimated Ending Balance $2,400,906

Assumptions  Budget Reduction Plan is still in place with no changes Staffing remains the same  P-2 changes  Federal Stimulus Dollars are in revenues and on expenditure side This funding is able to backfill proposed State revenue cuts Eliminates the need to use the second layoff window and allows RUSD to continue to preserve the jobs that are already in place  No carryover of site, departmental or categorical budgets -- which means there is no ending balance to move forward. All budgets are spent in and in  Health and Welfare Increase remains the same  Lottery, based upon School Services of California, Inc. estimates, are significantly lower

Assumptions  Services (5000’s) Utilities  Electrical $1,038,400  Water $ 352,000  Propane $ 99,000  Trash $ 77,000 Insurance (Property and Liability) $ 318,889  Books and Supplies (4000’s) Textbooks ( Includes Lottery) $ 465,031 After School Programs $ 591,636 School and Library (SLIP) $ 197,885 Site and Department Allocations $ 201,817 Federal Programs (Title 1, IDEA) $ 747,123

Flexibility  The current enacted budget gives LEAs the ability to use categorical programs to backfill in for the cuts RUSD plan for flexibility for includes:  Arts and Music Grants ($ 25,000)  Arts, Music, & PE Supplies ($100,000)  Adult Education ($100,000)  District and Site Block Grant ($ 67,000)  Oral Health ($ 11,500)  Community Based English Language ($ 35,000) Tutoring (CBET)  School Safety Block Grant ($ 25,000)  Gifted and Talented Education ($ 48,000)  NCPDF/BTSA ($ 45,000)  Peer Assistance Review ($ 15,000)  Library Materials and Ed Technology Grant ($ 11,000)  Instructional Materials (IMFRP) ($200,000)  Deferred Maintenance ($226,000) TOTAL for ($908,500)

Flexibility  Flexed Categorical Programs RUSD plan for flexibility for includes:  Instructional Materials (IMFRP) ($200,000)  Supplemental Hourly Programs and ($200,000) Summer School  Class Size Reduction Grade 9 ($ 68,586)  Deferred Maintenance ($226,000)  Peer Assistance Review ($ 3,500) TOTAL for ($698,086)  $1,606,586 combined total for the two years

Governor’s Revise to the Proposed Revisions  On May 14 th, the Governor released a preliminary May revision. Since then, the State budget gap has continued to grow another $3 billion to a $24 billion gap  Additional cut to revenue limit  A new cut to home-to-school transportation  Combined losses of $1,214,000 to RUSD  These additional cuts are not incorporated into the budget per SDCOE direction  Legislators have to act on this and the Governor’s original proposal

Other Developments  Health Benefit renewals are coming in lower than anticipated  2 nd half of the State Fiscal Stabilization Fund has been announced by California Department of Education Ramona to receive an additional $523,000 in one-time funding  Miscellaneous adjustments to Special Education revenues, insurance adjustment  This is a normal process of budget changes; however, any changes are heightened due to the current economic crisis  RUSD will get final worker’s compensation and property and liability insurance tomorrow, the day after the budget is passed

Summary of Current Developments  Estimated Ending Balance$2,400,906  Additional State Cuts ($1,214,000)  2 nd Half of SSFP$523,000  Decrease to Health Increase$100,000  Misc. Adjustments($34,000)  Ending Balance$1,775,906

Looking Past  Over $2.5 million of Federal dollars will be used in and to offset the new rounds of cuts  The ending balance should provide a cushion for any additional unknown cuts to revenues  In , with no changes occurring, and with the loss of federal funding, declining enrollment, and increased costs, additional budget cuts will be necessary

Still Have Uncertainties  Enrollment How many students, what grades levels, and which schools will they attend  Economy  Revision of Approved Budget What are the flexibilities of the Governor’s new proposal? How will the Legislators react? How long will it take to come to a vote?  Federal Stimulus Dollars Any more dollars or bailouts in the future?

What’s Next  Continue what we have been doing Trying to stay on top of the changing information Keep the reductions as far away from programs and children as possible Keep the Board, staff, parents, and community informed

Other Funds  Food Services Revenues$2,047,000 Expenses$2,074,437 Ending Balance $586,820  Capital Facilities (Dev. Fees) Revenues $350,000 Expenses $264,595 Ending Balance $10,073,709  Cash with Fiscal Agent $ 6,096,351  Balance of and Reserve Fund of COPs  Remaining Balance $ 3,977,358

Other Funds  Health Ben. Fund (Fund 16) Revenues $566,000 Expenses $565,000 Ending Balance $347,281  Required Reserve Fund (17) Revenues $100,000 Expenses $100,000 Ending Balance $3,121,829