governors 2010 may revise & districts proposed 2010-11 budget june 15, 2010 steven lawrence,...
TRANSCRIPT
Governor’s 2010 May Revise & District’s Proposed 2010-11
BudgetJune 15, 2010
Steven Lawrence, Ph.D., SuperintendentBryan Richards, Director, Fiscal Services
State Fully Funds COLA!
However, the COLA is NEGATIVE. That means a 0.39% DECREASE in funding;
($25) per ADA (which works out to about ($19.45)/ADA when deficited)
“One Time” Deficit now ongoing!
This year we had a one-time additional deficit of $252.99 per 2008-09 FUNDED ADA (2007-08 actual P-2 ADA) or about $254.13 per funded ADA
Starting next year it will become ongoing and be 3.85% * undeficited revenue limit (including Beginning Teachers and Meals for Needy Adjustments and COE ADA, but with the cut not passed through to the COE for an effective cut of $247.00/ADA
Funded Revenue Limit 2009-10 vs. 2010-11
Graph courtesy of School Services of California, Inc.
Mt. Diablo Unified School District
2009-10 2010-11
$6,371.02 $6,346.02
$4,947.49 $4,936.51
Loss due to Deficit Factor and $254-per-ADA
one-time cut
Loss due to Deficit Factor and 3.85% per-
ADA Reduction
Funded Revenue Limit Funded Revenue Limit
$1,409.51$1,423.53
What does a 22.21% cut look like? School year is 180 days 22.21% of school year is 40 days To cut school by 22.21% we would have
closed after school ended on April 16th
10/11 revenue limit cut deepens to $1,409/ADA
MDUSD Revenue Limit Funding per ADA
6,803
6,617
6,4616,3466,371
6,109
5,125
5,528
5,647
5,482
5,348
5,227
5,079
5,780
5,303
5,1625,041
4,9374,947
5,630
4,750
5,250
5,750
6,250
6,750
2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14
Year
Do
llar
s $
per
AD
A
Revenue Limit
Actual 09-10Budget
May 2010 Revise
Declining Enrollment Less Steep than projected at P-1
At adoption we projected a decline of 184.23 ADA
At P-1 we were down 719.95 ADA For P-2 we are down 550.58 ADA We are down 1.66% from 2008/09
MDUSD Enrollment Declining!P-2 ADA
29,500
30,000
30,500
31,000
31,500
32,000
32,500
33,000
33,500
34,000
34,500
35,000
P-2 ADA
How does revenue limit funding look?Revenue Limit
160,000,000
165,000,000
170,000,000
175,000,000
180,000,000
185,000,000
190,000,000
195,000,000
200,000,000
Revenue Limit
MDUSD
Revenues
Estimated Actuals Proposed Projected
Unrestricted 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12
Revenue Limit 185,833,596 187,893,543 182,218,757 159,012,690 156,460,391 157,660,440
Federal 221,236 605,858 402,858 225,054 232,231 229,989
State 17,346,231 17,404,849 16,894,600 31,683,519 31,510,175 32,031,067
Local 7,750,756 5,667,289 4,524,339 3,490,005 1,123,770 1,123,770
Total Unrestricted 211,151,819 211,571,539 204,040,555 194,411,268 189,326,567 191,045,266
Restricted 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12
Revenue Limit 6,927,065 7,450,041 7,189,798 6,815,118 6,797,720 7,287,766
Federal 16,888,400 15,055,764 28,266,945 35,444,678 20,276,395 20,080,659
State 53,977,961 54,769,197 54,986,527 37,607,078 36,149,946 35,800,976
Local 5,863,773 5,495,204 5,602,383 9,749,285 7,180,556 7,111,239
Total Restricted 83,657,199 82,770,206 96,045,653 89,616,159 70,404,617 70,280,640
Combined 294,809,018 294,341,745 300,086,208 284,027,427 259,731,184 261,325,906
-
20,000,000.00
40,000,000.00
60,000,000.00
80,000,000.00
100,000,000.00
120,000,000.00
140,000,000.00
160,000,000.00
180,000,000.00
200,000,000.00
220,000,000.00
2006-07
2007-08
2008-09
2009-10
2010-11 2011-12
Year
MDUSD Unrestricted Revenue 2006/07 - 2011/12
Local
State
Federal
Revenue Limit
`
-
10,000,000.00
20,000,000.00
30,000,000.00
40,000,000.00
50,000,000.00
60,000,000.00
70,000,000.00
80,000,000.00
90,000,000.00
100,000,000.00
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
Year
MDUSD Restricted Revenue 2006/07 - 2011/12
Local
State
Federal
Revenue Limit
-
50,000,000.00
100,000,000.00
150,000,000.00
200,000,000.00
250,000,000.00
300,000,000.00
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
Year
MDUSD General Fund Revenue 2006/07 - 2011/12
Local
State
Federal
Revenue Limit
Unrestricted General Fund Revenues Revenue Limit Sources $ 156,460,391
Federal Revenue 232,231 Other State Revenue 31,510,175 Other Local Revenue 1,123,770 Total Revenue 189,326,567 Less: Contribution to RGF (39,730,919) Net Available Revenue $ 149,595,648
Mt. Diablo Unified School District Unrestricted General Fund Revenues Before Contributions
2010-11 Total = $189,326,567
Local Revenue0.6%
State Revenue16.6%Federal Revenue
0.1%
Revenue Limit Contributed to
Restricted20.7%
Revenue Limit61.9%
Health rates skyrocketing!Kaiser Rates
0
500
1,000
1,500
2,000
2,500
Year
Mo
nth
ly P
rem
ium
1 party
2 party
3 party
Compounding rate increasesKaiser % Increase
0.0%0.0%
10.0%10.0%10.0%10.0%10.0%23.3%
4.8%8.0%9.2%10.7%9.8%16.1%17.8%
308.1%
271.0%
237.3%
206.6%
178.7%
45.3%
68.8%85.3%
105.2%123.9%
141.9%153.4%
0.0%
40.0%
80.0%
120.0%
160.0%
200.0%
240.0%
280.0%
320.0%
Year
Perc
en
t
y/yinc
incsince02
MDUSD Benefit CostsHealth, Dental, Vision & Post Retirement Benefits
-
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
30,000,000
35,000,000
40,000,000
Year
Am
ou
nt
General Fund
Unrestricted Expenditures Certificated Salaries $ 90,791,443 Classified Salaries 20,344,861 Employee Benefits 33,148,724 Books & Supplies 4,572,599 Services & Operating 12,561,671 Capital Outlay 86,707 Other Outgo 926,781 Interfund Transfers Out 3,486,037 Total Expenditures 165,918,823 Less: Indirect Cost Xfrs In
(4,471,797) Net Expenditures $ 161,447,026
Mt. Diablo Unified School DistrictUnrestricted General Fund Expenditures and Transfers Out
2010-11 Total = $165,807,058
Services & Operating
7.57%Capital Outlay
0.05%
Other outgo0.54%
Interfund Transfers Out
2.10% Books and Supplies
2.76%
Employee Benefits19.98%
Classified Salaries12.26%
Certificated Salaries54.72%
Unrestricted Bottom Line
Net Available Revenue $ 149,595,648 Net Expenditures 161,447,026 Net (decrease) fund bal. (11,851,378) Beginning Balance, July 1 18,725,556 Projected Ending Balance $ 6,874,178
Components of Ending Balance Revolving Cash $ 300,000 Stores Inventory 536,118 Economic Uncertainties (2%) 5,436,671 IRS Audit 533,500 Undesignated Balance 67,889 Ending Balance $ 6,874,178
Restricted Revenue
Revenue Limit Sources $ 6,797,720 Federal Revenue 20,276,395 Other State Revenue 36,149,946 Other Local Revenue 7,180,556 Contribution from UGF 39,730,919 Total Revenue $110,135,536
Mt. Diablo Unified School DistrictRestricted General Fund Revenue
2009-10 Total = $110,135,536
Interfund Transfers0.00%
Local Revenue6.52%
State Revenue32.82%
Federal Revenue18.41%
Revenue Limit6.17%
Contribution from Unrestricted
36.07%
Restricted Expenditures
Certificated Salaries $ 33,678,278 Classified Salaries 18,950,519 Employee Benefits 22,472,480 Books & Supplies 7,702,632 Services & Other Operating 22,075,003 Capital Outlay 216,000 Other Outgo 1,560,284 Indirect Costs Xfr Out 3,731,289 Total Expenditures $ 110,386,485
Mt. Diablo Unified School DistrictRestricted General Fund Expenditures
2010-11 Total = $110,386,485
Interfund Transfers
0.00%
Indirect Costs Xfr Out
3.38%
Books & Supplies6.98% Employee
Benefits20.36%
Classified Salaries17.17%
Certificated Salaries30.51%
Capital Outlay0.20%
Other outgo1.41%
Services & Other Operating
20.00%
Restricted Bottom Line
Total Revenue $ 110,135,536 Total Expenditures 110,386,485 Net (decrease) in fund bal. (250,949) Beginning Balance, July 1 1,892,692 Projected Ending Balance $ 1,641,743
Multi Year Projection
Undesignated + Tier 3 @ 6/10 $11,889,885 Operating Deficit 2010/11 (11,851,378) Eliminate Prepaids 29,382 Unappropriated Balance 6/11 67,889 Operating Deficit 2011/12 (12,124,838) Adjustment in 2% reserve (32,345) Unappropriated Balance 6/12 ($12,089,294)
The end of flexibility is a big problem
Unappropriated Balance 6/12 ($12,089,294) Projected Deficit in 2012/13 ($18,955,554) Unappropriated Balance 6/13 ($31,044,848) Projected Deficit in 2013/14 ($25,913,297) Unappropriated Balance 6/14 ($56,958,145) Projected Deficit in 2014/15 ($27,425,808) Unappropriated Balance 6/15 ($84,383,953)
Average deficit is $19,194,768 per year
How much less must we spend?
Enrollment declines projected to continue through 2014 at rates between 0.78% and 1.43% per year
We must decrease ongoing annual spending by a minimum of $19.2M by 7/1/2010 for the 2010/11 school year to fully address the problems including flexibility loss in 2013/14 OR,
Cut at least $42.9M plus a cushion over three years by 1st interim and plan for substantially deeper cuts to solve the structural deficit as K-3 CSR returns and flexibility goes away.
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 (Local bonds for construction) – Form 21 Capital Facilities (a.k.a. Developer Fees) – Form 25
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
What next?More from
Sacramento
Both houses of legislature sent their versions of the State budget to conference committee
Supposed to be reconciled by June 15 Governor’s signature due June 30 Don’t hold your breath
Meanwhile back in Concord… We must adopt a balanced budget by June
30th
Final Budget Public Hearing will be June 22nd
We must plan an additional contingency if the State doesn’t fund the COLA when it returns to a positive number in 2011-12 (an additional $3,420,000 ongoing cut)
In next week’s season finale… PERS announces the 2011 insurance rates
and benefit changes (meeting is today, information should come out tomorrow)
Will the State Legislature pass a revised budget? Cannot agree on cuts versus revenue increases Today is June 15 deadline, June 30 deadline…
(Julgusepoctemberary)
Events to watch for next season… Will we have a budget out of the legislature by the time school starts?
Will the Governor sign it? The end of ARRA We must conquer our deficit
spending Have a great summer and stay tuned
Starring:
ARNOLD SCHWARZENEGGER
the Governor
MARIA SHRIVER
the State’s First Lady
DARRELL STEINBERG
the Senate President
JOHN PÉREZ
the Assembly Speaker
MAC TAYLOR
the Legislative Analyst
JOHN CHIANG
the State Controller
and
JACK O’CONNELL
the Superintendent of Public Instruction