2008/09 financial planning
DESCRIPTION
2008/09 FINANCIAL PLANNING. Board Meeting January 13, 2009. Prepared by: Douglas Barge. Y:\Business Services/Budget/2009-10/Adopted/Reductions/Strategies for Moving Forward B01-13-09. Executive Summary. - PowerPoint PPT PresentationTRANSCRIPT
2008/09 2008/09 FINANCIAL FINANCIAL PLANNINGPLANNING
Board MeetingBoard Meeting
January 13, 2009January 13, 2009
Prepared by: Douglas Barge
Y:\Business Services/Budget/2009-10/Adopted/Reductions/Strategies for Moving Forward B01-13-09Y:\Business Services/Budget/2009-10/Adopted/Reductions/Strategies for Moving Forward B01-13-09
Executive SummaryExecutive Summary On December 31, 2008, the Governor took the On December 31, 2008, the Governor took the
unusual step of introducing an 18 month budget unusual step of introducing an 18 month budget plan for the Legislature to considerplan for the Legislature to consider
His proposal has considerable negative impact on His proposal has considerable negative impact on our District both this year and nextour District both this year and next
This year the problem will start with “Cash”This year the problem will start with “Cash”
Next year the problem will be a budget shortfall of Next year the problem will be a budget shortfall of $19,670,660$19,670,660
Work has begun on reducing expenses this year Work has begun on reducing expenses this year and nextand next
i
Table of ContentsTable of ContentsDESCRIPTION PAGE #
Introduction Governor’s Budget Proposals 2008/09 State Midyear Reductions Modeling the Impact of Governors
2009/10 Budget Plans District Budget Reduction Planning Next Steps for Moving to Phase III Appendix
A1
ii
B1 – B3C1
D1 – D8
E1F1
IntroductionIntroduction In NovemberIn November
We reported that the economy was in poor We reported that the economy was in poor shapeshape
Student enrollments were significantly Student enrollments were significantly below projectionsbelow projections
The Board also asked for additional studies The Board also asked for additional studies and reportingand reporting
Our cash investments were reported to be in Our cash investments were reported to be in good handsgood hands
We talked about the need to slow down We talked about the need to slow down expendituresexpenditures
The State was supposed to be working on The State was supposed to be working on fixing their budget problem. We predicted fixing their budget problem. We predicted they would not be successfulthey would not be successful
LodiUnified School District
It’s worseIt’s worse
Still decliningStill declining
DoneDone
Good, if we had Good, if we had cashcash
Now it’s time to Now it’s time to stopstop
Bad news, we Bad news, we were rightwere right
StatusStatus
A1
Governor ProposesGovernor ProposesRe-Benching Prop 98 Re-Benching Prop 98
FundingFunding
$1.1B Owed$1.1B Owed
Prop 98 Funding Prop 98 Funding CurrentlyCurrently
2008/09 2008/09 Fiscal Fiscal YearYear
** NetNet result is a permanent loss in on-going funding result is a permanent loss in on-going funding
Prop 98 Prop 98 FundingFunding
2002/03 & 2002/03 & 2003/04 2003/04
Fiscal YearsFiscal Years
$1.1 B of $1.1 B of expensesexpenses
Prop 98 Funding Prop 98 Funding After Redesign.After Redesign.
2009-10 2009-10 Fiscal Fiscal YearYear
B1
Governor’s Budget Governor’s Budget ProposalProposal
Even more deferred cash payments Even more deferred cash payments
The State has no time to generate cash this The State has no time to generate cash this yearyear
There are problems with Revenue Anticipation There are problems with Revenue Anticipation Warrants (RAWs) – I.O.U.sWarrants (RAWs) – I.O.U.s
B2
Cash Flow - DoomsdayCash Flow - Doomsday
($30,000,000)
($20,000,000)
($10,000,000)
$0
$10,000,000
$20,000,000
$30,000,000
$40,000,000
July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. April May June
1st Interim No State Action Governor 12/31/08
State Controller John Chiang – 12/22/08, “State will run out of cash in less than 70 days”State Controller John Chiang – 12/22/08, “State will run out of cash in less than 70 days” B3
2008/092008/09State Mid-Year ReductionsState Mid-Year Reductions
C
Overall 2008/09 Overall 2008/09 BalancingBalancing
DescriptionDescription TotalTotalOne- One- Time Time
B. Funding Sources/Uses (*) ($6,865,112) (8,201,559)
On-On-GoingGoing
1,336,447
D. TotalD. Total ($6,372,549)($6,372,549)($9,876,432)($9,876,432) $3,503,883$3,503,883
C1
A. Structural Balancing (Prior) ($2,167,436) $2,167,436
C. Funding Uses (*) 492,563 492,563
* See the Appendix for further details.
Modeling the Impact of Modeling the Impact of Governors 2009/10 Budget Governors 2009/10 Budget
PlansPlans
D
2009/10 Enrollment 2009/10 Enrollment ProjectionsProjections
A. PROGRAMS
PROJECTEDSTUDENTS GROWTH
2008/09CBEDS (*) ADA
1. Regular K-6 15,354 (232)
2. Regular 7-8 (27)4,262
3. Regular 9-12 (174)7,961
15,122
4,235
(220)
(25)
(160)7,787
4. All Other Programs 2,071 2,071
5. Serna Charter School 297 297
6. Total K-12 Increases 29,512 (433)29,945 (405)
D1* Enrollment as of October 2, 2008
Summary of Growth Summary of Growth ExpensesExpenses
(There is declining enrollment this (There is declining enrollment this year)year)
DESCRIPTION F.T.E BUDGET
1. Teacher Staffing ($1,538,993)(19.15)
4. Site Clerical, Noon Duty & Campus Supv. (51,220)(1.44)
3. Custodial Support & Bus Drivers (115,953)(2.47)
2. Special Ed. Staffing (Cert. & Class.) (315,303)(5.66)
5. Per-Pupil Allocations (29,299)
6. Total Growth Expenses6. Total Growth Expenses ($2,050,768)($2,050,768)(28.72)(28.72)
D2
Summary of Summary of On-GoingOn-Going ExpensesExpenses
Descriptions F.T.E BUDGET
3. Utilities & Fuel 595,162
6. Supply Inflation – School Sites 161,305
2. Health & Welfare - Retiree 194,403
11. Total On-Going Expenses11. Total On-Going Expenses $5,108,345$5,108,345
13.5013.50
4. Worker’s Compensation - .25% Increase.25% Increase 311,629
1. Projected Step & Column Costs $2,600,000
D3
5. Technology Maint. Agree. & New Systems 200,000
7. Lockeford K-8 Conversion 218,3783.00
8. Re-Instate K-6 Teacher Reserve 458,3286.50
9. Re-Instate 7-12 Teacher Reserve 245,1334.00
10. Routine Rest. Maintenance – 3%3% 124,007
Summary of One-Time Summary of One-Time ExpensesExpenses
Descriptions F.T.E BUDGET
1. Construction – Replenish AB87Replenish AB87 $1,000,000
4. Total One-Time Expenses4. Total One-Time Expenses $1,324,007$1,324,007-0--0-
D4
2. New Student Information System 200,000
3. General Reserve Requirement (3%) 124,007
Summary of Increased Summary of Increased CostsCosts
DescriptionDescription F.T.EF.T.E BudgetBudget
B. Growth Costs (2,050,768)(28.72)
D. Total Estimated Uses $4,381,584$4,381,584(15.22)(15.22)
C. One-Time Costs 1,324,007
13.50A. Increased Mandatory Costs $5,108,345
D5
Estimate of Growth Estimate of Growth Income Income
( There is declining enrollment this ( There is declining enrollment this year)year)
A. Net Growth Income ($2,217,699)
B. Special Education Growth (220,198)
Description Budget
C. Class-Size Reduction – Grades K-3 (175,175)
G. Total Estimated New Income ($9,334,626)
F. Unrestricted Ending Fund Balance (6,372,549)
D. Interest Income (300,000)
E. Lottery Income (49,005)
D6
Other Funding SourcesOther Funding Sources
DescriptionsDescriptionsON-ON-
GOINGGOING TOTALTOTALONE-ONE-TIMETIME
1. 08/09 Teachers Above Formula $944,360 $944,360
2. Shock Absorbers from 08/09 $1,312,283 1,312,283
3. Superintendent’s Proposed Reductions within the JAESC (*)
1,665,3391,665,339
4. Total Funding Sources4. Total Funding Sources $2,609,699$2,609,699 $3,921,982$3,921,982$1,312,283$1,312,283
D7* Unrestricted Reductions only
Overall BalancingOverall Balancing
DescriptionDescription TotalTotalOne- One- Time Time
On-On-GoingGoing
A. Structural Balancing (Prior) ($9,876,432) ($9,876,432)
B. Funding Sources/Uses (13,716,210) (6,019,654) ($7,694,556)
C. Other Sources 3,921,9822,609,699 1,312,283
D. TotalD. Total ($19,670,660)($19,670,660)($13,286,387)($13,286,387) ($6,384,273)($6,384,273)
D8
Phases for Phases for Budget Budget
Reduction Reduction PlanningPlanning
E
Steps for Budget Steps for Budget PlanningPlanning
Phase I – Budget Reduction Plan for JAESCPhase I – Budget Reduction Plan for JAESC
Phase II – Brainstorming and Recommendation Phase II – Brainstorming and Recommendation developmentdevelopment
AdministrationAdministration Superintendent’s Budget Advisory CommitteeSuperintendent’s Budget Advisory Committee
Phase III – Superintendent’s Recommendation to the Phase III – Superintendent’s Recommendation to the BoardBoard
Phase IV – Board Approves a PlanPhase IV – Board Approves a Plan
E1
DescriptionDescription
Next Steps for Moving to Next Steps for Moving to Phase IIPhase II
Administration will continue to work on Administration will continue to work on developing recommendationsdeveloping recommendations
Superintendent’s Budget Advisory (SBAC) begins Superintendent’s Budget Advisory (SBAC) begins working on the brainstorming listworking on the brainstorming list
SBAC completes Phase II SBAC completes Phase II
We need to remember we have a $19,670,660 We need to remember we have a $19,670,660 budget problem and will run out of “Cash” this budget problem and will run out of “Cash” this year if we don’t take action now on things that year if we don’t take action now on things that we can controlwe can control
F1
THE THE ENDEND
iii
AppendixAppendix
District Enrollment TrendsDistrict Enrollment Trends
2008/09 Financial Details2008/09 Financial Details
iv
District District Enrollment Enrollment
TrendsTrends
1
Elementary EnrollmentElementary Enrollment
14,700
15,000
15,300
15,600
05/06 Budget 05/06 Actuals 06/07 Budget 06/07 Actuals 07/08 Budget 07/08 Actual
08/09 Budget 08/09 Actual
2
Middle School Middle School EnrollmentEnrollment
4,200
4,250
4,300
4,350
4,400
4,450
1st W
eek
2nd W
eek
3rd W
eek
4th W
eek
5th W
eek
6th W
eek
7th W
eek
8th W
eek
9th W
eek
CBEDSNov.
Dec.
Feb.April
May
05/06 Budget 05/06 Actuals 06/07 Budget 06/07 Actuals 07/08 Budget 07/08 Actual
08/09 Budget 08/09 Actual
3
High School High School EnrollmentEnrollment
7,600
7,800
8,000
8,200
8,400
1st W
eek
2nd W
eek
3rd W
eek
4th W
eek
5th W
eek
6th W
eek
7th W
eek
8th W
eek
9th W
eek
CEBDSNov.
Dec.
Feb.April
May
05/06 Budget 05/06 Actuals 06/07 Budget 06/07 Actuals 07/08 Budget 07/08 Actual
08/09 Budget 08/09 Actual
4
Summary of Summary of On-GoingOn-Going 2008/09 Expenses2008/09 Expenses
Descriptions F.T.E BUDGET
4. Total On-Going Expenses4. Total On-Going Expenses ($492,563)($492,563)
3.523.52
1. COLA Reserve – 0.68%0.68% ($800,463)
2. Teacher Staffing Reductions - Unused (55,387) (0.68)
3. Developer Fee Funded Positions 363,287 4.20
5
Other 2008/09 Funding Other 2008/09 Funding SourcesSources
DescriptionsDescriptionsON-ON-
GOINGGOING TOTALTOTALONE-ONE-TIMETIME
1. Revenue Limit Reduction – Est. 4.5%Est. 4.5% ($7,401,096) ($7,401,096)
2. 08/09 COLA Reduction – 0.68%0.68% (800,463) (800,463)
3. State Categorical Reserves (6.50%)
4. Total Funding Sources4. Total Funding Sources ($8,201,559)($8,201,559) ($6,865,112)($6,865,112)$1,336,447$1,336,447
6
a. AB825 Block Grants $278,598 278,598b. EIA 474,467 474,467c. Transportation 333,725 333,725d. School Safety 29,214 29,214e. Special Education (228,176) (228,176)f. K-3 Class Size Red. 482,398 482,398g. Lottery (Non-Prop 20) (33,779) (33,779)