second interim budget report march 9, 2010 steven lawrence, ph.d., superintendent
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Mt. Diablo Unified School District. Second Interim Budget Report March 9, 2010 Steven Lawrence, Ph.D., Superintendent Bryan Richards, Director, Fiscal Services. Why an Interim Report?. Ed. Code §42130 requires the Board to certify two interim budget and financial reports - PowerPoint PPT PresentationTRANSCRIPT
Second Interim Budget ReportMarch 9, 2010
Steven Lawrence, Ph.D., SuperintendentBryan Richards, Director, Fiscal Services
Why an Interim Report? Ed. Code §42130 requires the Board to certify two
interim budget and financial reports Certification is either Positive, Qualified or Negative
Positive – The district will meet its obligations for 3 years Qualified – The district may not meet its obligations for 3
years Negative – The district will not meet its obligations in
current or upcoming year 1st Interim with transactions to October 31 due December
15 2nd Interim with transactions to January 31 due March 15 If 2nd Interim qualified or negative, 3rd Interim with
transactions through April 30 due June 1
Unrestricted General Fund Revenue
Revenue Limit Sources $ 158,651,759 Federal Revenue 225,054 Other State Revenue 32,074,592 Other Local Revenue 3,168,461 Total Revenue 194,119,866 Less: Net Contrib. to RGF (34,730,797) Net Available Revenue $ 159,389,069
Mt. Diablo Unified School District Unrestricted General Fund Revenues Before Contributions
2009-10 Total = $194,119,866
Revenue Limit63.84%
Revenue Limit Contributed to
Restricted net of indirect17.89%
Federal Revenue0.12%
State Revenue16.52%
Local Revenue1.63%
Revenue Limit is down from 89.8% of revenue to 81.73% because of the deficit.
Unrestricted General Fund Expenditures
Certificated Salaries $ 83,414,261 Classified Salaries 19,886,215 Employee Benefits 29,936,365 Books & Supplies 6,241,695 Services & Operating 15,089,883 Capital Outlay 108,113 Other Outgo 929,381 Interfund Transfers Out 5,452,658 Total Expenditures 161,058,571
Mt. Diablo Unified School DistrictUnrestricted General Fund Expenditures and Transfers Out
2009-10 Total = $161,058,571
Services & Operating
9.37%
Capital Outlay0.07%
Other outgo0.54%
Interfund Transfers Out
3.39%
Books and Supplies3.88%
Employee Benefits18.59%
Classified Salaries12.35%
Certificated Salaries51.79%
Salaries and Benefits make up 82.73% of expenditures & transfers out
Unrestricted General Fund Summary
Net Available Revenue $ 159,389,069 Net Expenditures 161,038,571 Net (decrease) fund bal. ( 1,669,502) Beginning Balance, July 1 24,529,701 Projected Ending Balance $ 22,860,199
Components of Ending Balance
Revolving Cash $ 300,000 Stores Inventory 536,118 Economic Uncertainties (2%) 6,036,482 IRS Assessment Resolution 533,550 Tier 3 and Site Carryovers 7,165,062 Undesignated 8,288,987 Ending Balance $ 22,860,199
Restricted General Fund Revenue
Revenue Limit Sources $ 6,614,982 Federal Revenue 31,892,737 Other State Revenue 37,774,770 Other Local Revenue 8,841,354 Interfund Transfers In 0 Net Contribution from UGF 35,525,361 Total Revenue $120,649,204
Mt. Diablo Unified School DistrictRestricted General Fund Revenue
2009-10 Total = $120,649,204Contribution from
Unrestricted29.45%
Revenue Limit5.48% Federal Revenue
26.43%
State Revenue31.31%
Local Revenue7.33%
Restricted General Fund Expenditures Certificated Salaries $ 44,454,133
Classified Salaries 21,644,156 Employee Benefits 24,982,365 Books & Supplies 25,374,487 Services & Other Operating 22,256,480 Capital Outlay 343,427 Other Outgo 2,505,016 Transfers Out 0 Total Expenditures $ 141,560,064
Mt. Diablo Unified School DistrictRestricted General Fund Expenditures
2009-10 Total = $141,560,064
Books & Supplies17.92%
Employee Benefits17.65%
Classified Salaries15.29%
Certificated Salaries31.40%
Capital Outlay0.24%
Other outgo1.77%
Services & Other Operating
15.72%
Restricted General Fund Summary
Total Revenue $ 120,649,204 Total Expenditures 141,560,064 Net (decrease) in fund bal. (20,910,860) Beginning Balance, July 1 22,687,425 Projected Ending Balance $ 1,776,565
Other Funds of the District
Funds for special purposes excluded from the General Fund
Special Revenue Funds Charter School – Form 09I Adult Education – Form 11I Cafeteria – Form 13I Deferred Maintenance – Form 14I
Capital Projects Funds Building (Proceeds of local bonds for construction) –
Form 21I Capital Facilities (a.k.a. Developer Fees) – Form 25I
Other Funds of the District (cont’d) Capital Projects Funds (continued)
County School Facilities (State Allocations for construction) – Form 35I
Capital Project for Blended Component Units (Mello-Roos) – Form 49I
Debt Service Funds Bond Interest and Redemption – Form 51I Debt Service for Blended Component Units (Mello-Roos) –
Form 52I Foundation Private-Purpose Trust Fund
(Scholarship Fund) – Form 73I All “Other Funds” projecting positive fund balances
Supplemental Information Form AI: Average Daily Attendance decrease of (719.95)
in 09/10 will decrease funding for 10/11. Form CASH: Cash Flow – to end year positive we sold a
$12M TRAN which closes on March 18 and are pulling LAIF into County Treasury
Form RLI: This is unchanged since 1st interim except for the adjustment to PERS reduction due to personnel cost changes
Form 01CSI: Criteria & Standards Form CI: Certification to Sign summarizes Criteria &
Standards Form MYPI: Multi-year Projection – What we can expect
based on what we know now from Sacramento, so it’s time for another episode of…
One time revenue limit deficit now ongoing! This year we have a one-time additional deficit of
$252.83 per 2008-09 FUNDED ADA (2007-08 actual P-2 ADA) or about $254.06 per current funded ADA
Starting next year it will become ongoing and be $201 per current year funded ADA This deficit is proposed to be applied to
“administrative” costs. While “administrative” is undefined in the proposal, current chatter from Sacramento indicates it will be calculated on function codes 2100-2199 (instructional supervision), 7000-7999 (central administration and technology) and 8000-8999 (maintenance, operations & security). Reductions since 2008/09 will count towards the cuts as it will be used as the base year. However, reductions from 2007/08 into 2008/09 may not. This is not yet finalized and there is a move to strip the language from the proposal.
General Outlook for the Future Positive Certification (we will meet our obligations for this
year and the next two) This certification is conditional on the board’s approval of
items on tonight’s cut list as they have been included in the multi-year projection
Concerns State fiscal health is still precarious although January
revenues were up in the first piece of good news out of the State in a while. However, it hasn’t made up for the shortfalls to date so the May revise may still have further cuts.
Health care cost containment is critical. Increases have been coming in well above the CPI. Our 2011 rate announcement comes from CalPERS in June.
Declining enrollment – still a major concern DEFICIT – The cuts have significantly lessened our deficit
spending. However, cash is king and we must continue to monitor it. We will be pulling our LAIF investment into the County treasury to be sure cash is available.
Cash is king for the State too! Additional new deferrals will affect our cash
flow substantially! July revenue limit deferred until September October revenue limit deferred until January March revenue limit deferred until April 29
Our TRAN payments are in July and August with a final due date of October 1
We plan to issue next year’s TRAN in October to be ahead of the second deferral
The 09/10 revenue limit cut $1,423/ADAMDUSD Revenue Limit Funding per ADA
5,079
5,528
5,780
5,079
5,528
5,780
6,803
6,617
6,4616,3466,370
6,109
5,125
5,528
5,7145,541
5,4005,2735,225
5,411
5,079
5,647
5,4825,348
5,227
4,947
5,630
5,3535,201
5,0744,980
4,500
5,000
5,500
6,000
6,500
7,000
7,500
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
2nd May Revise
Actual 09-10 Budget
Gov 10-11 budget
Form MYPI: Multi Year Projection
Undesignated + Tier 3 @ 6/10 $ 8,288,987 Operating Deficit 2010/11 ( 2,544,379) Adjustment in 2% reserve 709,906 Unappropriated Balance 6/11 6,454,514 Operating Deficit 2011/12 ( 1,391,915) Adjustment in 2% reserve 10,373 Unappropriated Balance 6/12 $ 5,072,972
Cuts substantially curtail the deficit
Unappropriated Balance 6/12 $ 5,072,972 Deficit & Rsv Adj - 2012/13 ($ 1,163,673)
Unappropriated Balance 6/13 $ 3,909,299 Deficit & Rsv Adj - 2013/14 ($ 3,580,926) Unappropriated Balance 6/14 $ 328,373
2013/14 sees the end of flexibility unless legislation is passed to continue it
What next?We go back to
Sacramento
State budget talks underway in legislature March Government Price Index establishes 2010/11
COLA April tax receipts tell the State’s fiscal tale Governor’s May Revise
Thank you. Tune in next time for the next episode of…