impact of the governor’s proposal and state budget issues on lodi unified
DESCRIPTION
Impact of the Governor’s Proposal and State Budget Issues on Lodi Unified. Board Study Session January 26, 2010. Table of Contents. DESCRIPTION. PAGE #. Opening Comments Considerations The State Budget Building the Budget Defining the Problems Key Dates Recommendations. 1 1 1 - 5 - PowerPoint PPT PresentationTRANSCRIPT
Impact of the Governor’s Proposal and Impact of the Governor’s Proposal and State Budget Issues on Lodi UnifiedState Budget Issues on Lodi Unified
Board Study SessionJanuary 26, 2010
Table of ContentsTable of Contents
DESCRIPTION PAGE #
A. Opening CommentsB. ConsiderationsC. The State Budget D. Building the BudgetE. Defining the ProblemsF. Key DatesG. Recommendations
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Opening CommentsOpening Comments
The budget shortfall at the State level is expected to be $19.9 billion
For 2009/10 the Governor will call for another special session of the Legislature and ask for reductions totaling $6.6 billion – $2 billion hit to education will be from unspent funding sweeps– If cuts are not made in the special session the budget problem will grow
In 2010/11 the Governor will fully fund the Cola
– Great, except the Cola is expected to be negative (.38%) an expected loss of $840,120 to our District
– He proposes to target reductions in the same areas we’ve been targeting for the last two years
– He is not funding the maintenance factor payback as he promised
A1
ConsiderationsConsiderations
The Board has a fiduciary responsibility to keep the District running for our students
The Board wishes to approach reductions in a Fair and Equitable manner
Weigh efforts against the highest probability for success
Don’t sacrifice income to retain support programs
Recognize with reductions in expenditures comes a reduction in services
B1
The State Budget
C.
$6.6
$12.3
$1.0
$6.6
$12.3
$19.9
$0.0
$5.0
$10.0
$15.0
$20.0
2010/11 Combined
2009/10Budget Shortfall 2010/11 Shortfall Reserve Combined
The State’s Budget GapThe State’s Budget Gap
C1
COLACOLA
K-12 Revenue LimitsK-12 Revenue Limits
Governor’s Governor’s Proposal Proposal
For 2010/11For 2010/11
2009/10 2009/10 AdoptedAdopted
2009-10 Fiscal Year
DeficitDeficit
C2
18.355%
Cola (.38%)
DeficitDeficit 18.355%
$655,46$655,4644
Revenue Limit DeficitRevenue Limit Deficit-7
.84%
11.0
10%
-7.8
4%
-13.
09%
-17.
967%
-18.
36%
-18.
36%
Janua
ry May
Adopted
Janua
ry May
Adopted
Janua
ry May
Adopted
2008/09 2009/10
C3
2010/11
C4
Targeted cuts of $1.2 billion aimed at “school district administration costs” (which is not clearly defined)
Recaptured savings of $.3 billion from “elimination of barriers to contracting out”
Reductions of $1.5 billion would cost the District $201 per ADA– This is over and above the negative Cola and deficit factor– It amounts to another $5,489,511 of lost Revenue Limit income
Authorization for the shorter school year remains
Other Cuts From the GovernorOther Cuts From the Governor
2010/11 Cash Flow2010/11 Cash FlowState Delays Paying Schools
ChangeJuly 09 Oct 09 Dec 09
Aug 09
Sept 09
Oct 09
Nov 09
Jan 10
Feb 10
Mar 10
Apr 10
Dec 09
Jan 10
May 10
Jun 10
Jul 10
Aug 10
Aug 10
C5
Oct 09
Building the BudgetBuilding the Budgetfor 2010/11for 2010/11
D.
Enrollment ProjectionsEnrollment Projections
PROGRAMS
PROJECTEDSTUDENTS CHANGE
2009/10CBEDS ADA
1. Regular K-6 15,172 (149)
2. Regular 7-8 (37)4,222
3. Regular 9-12 (99)7,862
15,023
4,185
(141)
(34)
(91)7,763
4. All Other Programs 2,138 2,138
5. Serna Charter School 290 290
6. Total K-12 Increases 29,399 (285)29,684 (266)
- -
- -
Enrollment is projected to continue Enrollment is projected to continue decliningdeclining D1
Summary of Growth ExpensesSummary of Growth ExpensesJanuary 26, 2010January 26, 2010
DESCRIPTION F.T.E BUDGET
1. Teacher Staffing ($696,553)(11.12)
4. Site Clerical, Noon Duty & Campus Supv.
3. Custodial Support & Bus Drivers
2. Special Ed. Staffing (Cert. & Class.)
5. Per-Pupil Allocations (18,911)
6. Total Growth Expenses6. Total Growth Expenses ($715,464)($715,464)(11.12)(11.12)
There is more declining enrollment projected for There is more declining enrollment projected for 2010/112010/11 D2
Mandatory On-Going ExpensesMandatory On-Going ExpensesJanuary 26, 2010January 26, 2010
Descriptions F.T.E BUDGET
4. Elect., Gas, Heat, Disposal & Sewage 210,541
2. Health & Welfare - Retiree 145,721
7. Total Mandatory On-Going Expenses7. Total Mandatory On-Going Expenses $3,024,107$3,024,107
3. Worker’s Compensation - .25% Increase.25% Increase 163,814
1. Projected Step & Column Costs $2,504,031
6. Technology Maint. Agree. & New Systems n/c
D3
5. Phone & Wide Area Network Services n/c
Mandatory of One-Time ExpensesMandatory of One-Time ExpensesJanuary 26, 2010January 26, 2010
Descriptions F.T.E BUDGET
1. Contingency Reserve – ReplenishReplenish $104,195
3. Total Mandatory One-Time Expenses3. Total Mandatory One-Time Expenses $156,686$156,686-0--0-
2. General Reserve Requirement (3%) 52,491
D4
Discretionary of On-Going ExpensesDiscretionary of On-Going ExpensesJanuary 26, 2010January 26, 2010
Descriptions F.T.E BUDGET
2. Tier III 2,334,011
4. Total Discretionary On-Going Expenses4. Total Discretionary On-Going Expenses $9,553,766$9,553,766
3. Federal ARRA Expenses 6,279,706
1. Categorical Programs that Encroach $940,049
D5
Discretionary of One-Time ExpensesDiscretionary of One-Time ExpensesJanuary 26, 2010January 26, 2010
Descriptions F.T.E BUDGET
2. Total Discretionary One-Time Expenses2. Total Discretionary One-Time Expenses $ 286,613$ 286,613-0--0-
1. General Reserve Requirement (3%) $ 286,613
D6
Summary of Increased CostsSummary of Increased CostsJanuary 26, 2010January 26, 2010
DescriptionDescription F.T.EF.T.E BudgetBudget
A. Growth Costs ($ 715,464)(11.12)
F. Total Estimated Uses $12,305,708$12,305,708(11.12)(11.12)
C. Increased Mandatory One-Time Costs 156,686
B. Increased Mandatory On-Going Costs 3,024,107
D7
D. Additional Discretionary On-Going Costs 9,553,766
E. Additional Discretionary One-Time Costs 286,613
Estimate of Growth Income Estimate of Growth Income January 26, 2010January 26, 2010
A. Net Growth Income ($1,378,612)
B. Special Education Growth (123,336)
Description Budget
C. Class-Size Reduction – Grades K-3 (74,907)
F. Total Estimated New Income ($1,606,115)
D. Interest Income
E. Lottery Income (29,260)
There is declining enrollment this There is declining enrollment this yearyear
D8
Other Funding SourcesOther Funding SourcesJanuary 26, 2010January 26, 2010
DescriptionsDescriptionsON-ON-
GOINGGOING TOTALTOTALONE-ONE-TIMETIME
1. Revenue Limit COLA (-.38%) ($ 655,464) ($ 655,464)
2. Revenue Limit Reduction ($201) (5,489,511) (5,489,511)
3. Other Program COLAs (-.38%) (113,166)(113,166)
D9
4. A.R.R.A. – Title I Carryover (est.) $ 588,337 588,337
5. A.R.R.A. – IDEA Carryover (est.) 1,747,112 1,747,112
7. Total Funding Sources7. Total Funding Sources ($6,258,141)($6,258,141) ($2,978,411)($2,978,411)$3,279,730$3,279,730
6. Reduce 3% General Reserve 944,281 944,281
Defining the ProblemDefining the Problemfor 2010/11for 2010/11
E.
Defining the ProblemDefining the ProblemJanuary 26, 2010January 26, 2010
DescriptionDescription TotalTotalOne Time One Time On GoingOn Going
A. Structural Balancing (Prior) ($13,641,534) ($13,641,534)
B. Funding Sources (1,606,115) (1,606,115)
D. Other Sources (2,978,411)(6,258,141) 3,279,730
E. Total ProblemE. Total Problem ($30,531,768)($30,531,768)($33,368,199)($33,368,199) $2,836,431 $2,836,431
E1
C. Estimated Uses (12,305,708) (11,862,409) ($ 443,299)
Key DatesKey Datesfor 2010/11for 2010/11
F.
Key Dates in the ProcessKey Dates in the Process
January 26, Study Session
February 16, Board Meeting
May 7, Governor’s Revisions May 14, Board Meeting May 18, Board Meeting
June 1, Board Meeting June 15, Board Meeting
Report to the Board on Governor’s budget proposals for 2010/11 & the impact on Lodi USD
Resolution for employee layoff notices
Announcement of May revisionsFinal employee layoff noticesReport on May revisions,
Superintendent’s budget reduction recommendations & preliminary budget plan
Discussion of 2010/11 Budget PlanAdoption of 2010/11 Budget
F1
DateDate ActivityActivity
RecommendationsRecommendations
Acknowledge the severity of the financial problem
Begin preparations for reduction in personnel of approximately 464.70 FTE (includes 11.12 FTE reduction due to enrollment decline)
Continue negotiating with the bargaining groups which could minimize the number of employees that would lose their jobs
Slowing down the ship
Continue to adjust strategies as future events warrant
G1
The EndThe End
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