1. Business Services October 13, 2010
State Budget
Business Services
October 13, 2010

2. Month 1 Enrollment History

3. FUSD Revenue Limit Per ADA

4. FUSD General Fund Revenue
Revenue in Millions

5. Federal Jobs Bill - Senate Bill (SB) 847
SB 847 provides the California Department of Education (CDE) with the authority to allocate $1.2 billion from the federal Education Jobs Fund to school districts. These funds will be distributed based on the state's revenue limit formulas.

6. Federal Jobs Bill - Senate Bill (SB) 847
Approximately $6 Million is earmarked for Fremont Unified School District
The District received $5.4 Million on Monday

7. 2010-11 State Budget Highlights
No cuts to revenue limits
Negative COLA will reduce the deficit factor, but not reduce revenue limits
$ per ADA or about $9 million more dollars for Fremont USD

8. Revised Revenue Limit for 2010-11

9. 2010-11 State Budget Highlights
$100 million in payments to districts for the mandate payments
$200 million allocated to districts on a per ADA basis. This money will go to all LEAs, but will count toward any outstanding mandate claims, starting with the oldest claims first. But even if a district has no claims, the money will still go out per ADA

10. 2010-11 State Budget Highlights
It is a “Get Out Of Town” Budget
It is very reminiscent of the State Budget of two years ago, that was great until February when the mid year cuts came to pass
It assumes over $5.3 Billion in revenue from the Federal Government

11. 2010-11 State Budget Highlights
It assumes that the State will raise over a billion dollars from sale of state buildings that they will lease back
It depends on an improving economy in
It defers $1.7 Billion into

12. Revised 2010-11 Deferrals * Inclusive of categorical funds
Note: An additional deferral for K-12 of $1.7 billion from into fiscal year

13. Tax Revenue Anticipation Note (TRAN)
CASH FLOW PROBLEM
SOLUTION
Tax Revenue Anticipation Note (TRAN)

14. PROBLEM
PAYBACK

15. Moody’s Investor Services addressed concern in a recent publication, “Application of Moody’s Short-Term Note Methodology to California TRAN Issues.” Moody’s states that “the primary risk associated with a TRAN is the predictability and sufficiency of the deferred revenues as a source of repayment is weak at best.”

16. FLEXIBILITY
CONCLUDES

17. Categoricals – Now and Later
1/3 of the Budget
Five years is almost up
K-3 CSR flexibility goes away for in the Multiyear Projection (MYP)
All the rest goes away for the June 2013 district budget
Proposed end dates are causing deeper cuts now
Will they be extended?

18. CONCLUSION State Budget does not solve State nor FUSD problems
There are more adjustments required