2009/10 Adopted 2009/10 Adopted Budget PresentationBudget Presentation

Board MeetingBoard MeetingJune 16, 2009June 16, 2009

BUSINESS SERVICES

Prepared by: Dr. Cathy Washer Mr. Douglas Barge Mrs. Carrie Hargis & Staff

Y: Business Service/Budget/2009-10/Adopted/Meeting/B06-16-09/Adopoted Budget B06-16-09

Table of ContentsTable of Contents

I. Introduction

II. The Budget Process

III. The 2009/10 Budget

IV. State & County Reporting

V. Future Work

VI. Fine Tuning Our Work

VII. Recommendations & Discussion

VIII. Appendix

SECTION DESCRIPTION

ii

1

PAGE #

2 - 3

4 - 11

12 - 13

14 - 16

17

18

21 - 22

IntroductionIntroduction School district governing boards are required by Education Code

42127 to adopt a budget on or before July 1 of each fiscal year

To meet this requirement, staff has provided information on:– Major Changes since the last Board Report– Assumptions for the 2009/10 Proposed Budget– Overview of the 2009/10 Proposed Budget– Required Reporting Elements

On June 9, the Board reviewed a report showing how the District could adopt a balanced budget for 2009/10

The report included the Superintendent’s recommendations for reductions that would be needed

The Board discussed the report and requested clarification on the implementation of some of the strategies within the budget plan A discussion of those strategies is included in this report

11

The Budget ProcessThe Budget Process

Section IISection II

IIII

How We Got HereHow We Got Here

• Budget problems began arriving early this year– Late State budget adoption– Sudden drop in enrollment – Rapid deterioration of the national, state and local economies

• Early on the District worked to define the problems, develop solutions and project student enrollments for next year

• The Superintendent’s Budget Advisory Committee worked hard to develop recommendations

– Their meetings were long and more frequent than in past years– They received much more input than past committees

• Board meetings were well attended during this budget development process– Input from the community and other stakeholders was lengthy and required, at

times, alternative facility arrangements

22

How We Got HereHow We Got Here

• The Superintendent worked hard with her staff to develop strategies for resolving concerns that came out of the various meetings

• During this time everyone had to deal with the uncertainty of:– A January Governor’s budget proposal that was DOA– A State adopted budget plan for 2008/09 and 2009/10 which was out of balance

before the ink had dried– Three separate May budget proposal revisions that had to be changed before the

Legislature took action on any one of them– And a fourth proposal that is still unfolding

• Through all of this the District and its Board have been able to put together a budget plan that can be approved knowing that changes will come

33

The 2009/10 BudgetThe 2009/10 Budget

Section IIISection III

IIIIII

AssumptionsAssumptions• The Budget Guidelines were used as the foundation for

developing the budget

• The process began with the Governor’s January budget proposals for 2009/10

• Enrollment projections were reviewed by the administration and approved by the Board

• County required assumptions are incorporated

• All of the changes presented at the June 9, 2009 Board meeting are part of this budget package– Changes from Governor’s May Revision– Recommended Budget Reductions

44

General Fund SummaryGeneral Fund Summary

Unrestricted

Restricted Total

UsesUses

SourcesSources1. Beginning Balance $3,433,514

2. Revenues 73,060,519

3. Total Sources $76,494,033

$ 18,344,102

$170,029,821

151,685,719

$21,777,616

224,746,238

$246,523,854

1. Expenditures

3. Total Uses

2. Ending Fund Balances

$161,289,499

$170,029,821

8,740,322

$234,716,264

$246,523,854

11,807,590

$73,426,765

$76,494,033

3,067,268

55

SourcesSources

1. Revenue Limit Sources $143,359,258 $4,576,097 $147,935,355

2. Federal Revenue 16,797,855 16,797,855

3. Other State Revenue 24,220,981 32,640,022 56,861,003

4. Other Local Revenue 1,558,293 1,593,732 3,152,025

(17,452,813) 17,452,8135. Contrib. to Rest. Programs

7. TOTAL SOURCES $170,029,821 $76,494,033

$246,523,854

Unrestricted

Restricted TotalDescription

6. Beginning Fund Balances 18,344,102 3,433,514 21,777,616

66

Total General Fund ResourcesTotal General Fund Resources

Revenue Limit67%

Federal7%

State24%

Lottery1%

Local1%

Revenue Limit Federal State Lottery Local

77

UsesUses

1. Certificated Salaries $120,105,172

$93,591,193 $26,513,979

2. Classified Salaries 20,659,028 16,635,987

37,295,015

3. Employee Benefits 31,714,014 14,070,164 45,784,178

4. Supplies 3,430,615 5,310,672 8,741,287

5. Contracted Services 11,431,778 6,813,412 18,245,190

7. Other Outgo 462,871 3,907,091 4,369,962

Unrestricted

Restricted Total

8. Ending Fund Balance 8,740,322 11,807,590 3,067,268

6. Capital Outlay 175,460 175,460

9. TOTAL $76,494,033 $246,523,8549. TOTAL $170,029,821

88

Total General Fund Expenditures & Total General Fund Expenditures & ReservesReserves

0%Other Outgo

2%

Certificated48%

Classified15%

Benefits19%

Supplies4%

Reserves5%

Contract Services7%

Certificated Classified Benefits Supplies Contract Services Capital Outlay Other Outgo Reserves

99

Ending Fund BalanceEnding Fund Balance

1. Assets $ 431,690

2. Economic Uncertainties 7,314,566

3. Contingencies 150,000

6. TOTAL ENDING FUND BALANCE $ 11,807,590

4. Designated Reserves

a. AB 87 Reserves $ 844,066

c. Total Designated Reserves 844,066

b. Carryover Reserve 0

5. Categorical Reserves 3,067,268

1010

The Other FundsThe Other Funds

• Joe Serna, Jr. Charter School $ 2,075,305• Adult Education Fund $ 1,211,373

– Includes COLA & Deficit

• Child Development Fund $ 2,976,513• Cafeteria $18,150,134

– Staffing Changes & Increased Revenue

• Deferred Maintenance $ 2,946,978– Reflects lost State Revenues

• Facilities $29,146,670– Project Balances Brought Forward

• Special Reserve for Capital Outlay $ 7,545,338• Bond Interest, Tax Override & Debt Service $24,287,078• Self-Insurance Funds $15,248,474

1111

State & County State & County ReportingReporting

Section IVSection IV

IVIV

State & County ReportsState & County Reports• County Budget Assumptions

– Required by San Joaquin County Office Education– Details the change from 2008/09 Estimated Actuals

to 2009/10 Budget

• State Reports include Standards & Criteria– Used by county offices of education and the

California Department of Education– To develop, review & assess budgets and interim

financial reports of school districts in California

1212

State & County Reports - State & County Reports - ContinuedContinued

• State Reports Include Multi-Year ProjectionsState Reports Include Multi-Year Projections

2009/102010-11

– ADA Growth (250) (250)– Revenue COLA (12.45%) (12.45%)– Certificated Step/Col. 1.57% 1.57%– Certificated COLA 0% 0%– Classified Step/Col. 1.70% 1.70%– Classified COLA 0% 0%

• Impact-UnrestrictedImpact-Unrestricted– Change in Fund BalanceChange in Fund Balance ($ 302,708) ($710,989) ($ 302,708) ($710,989)– Ending Fund Balance $8,437,614 $7,726,625

1313

Future WorkFuture Work

Section VSection V

VV

Positions, Funding & TimingPositions, Funding & Timing

$561,387$416,816$187,818Federal IDEA Funds – Declared 7/7/097/7/09

Plan

Half Year

$280,694$416,816

Temporary Use of AB87 Construction Reserves – 7/7/097/7/09 Budget Revision

Back

up

$561,387$416,816Federal Categorical Stabilization Funds – Declared Declared upon receiptupon receipt

B.

$187,818IDEA Funds – Declared 7/7/097/7/09

A.

Library Assistants($561,387)

Librarians

($406,816)

RSP Para-Educators

($187,818)Funding Source

1414

ImplementationImplementation

Programs, Funds & TimingPrograms, Funds & Timing1.1. Para-Educators ($187,818)Para-Educators ($187,818)

The Plan: Personnel will notify affected employees that their hours of services will remain

unchanged beginning with the start of their normal calendar work year IDEA funding will be declared on 7/7/09 with the approval of the Board, via a

budget revision

2.2. Librarians ($406,816)Librarians ($406,816) The Plan:

Personnel will notify affected employees of their continued employment Temporarily – Federal IDEA resources (50%) will be used to fund these positions The Board will declare these resources on 7/7/09, via a budget revision Once Federal Categorical Stimulus resources become available, these positions

will be moved to this funding source and IDEA resources will be allocated to other needs

We have contingency plans as well

1515

Programs, Funds & TimingPrograms, Funds & Timing3.3. Library Assistants ($561,387)Library Assistants ($561,387)

The Plan: Personnel will notify affected employees of their continued employment Temporarily – Federal IDEA resources (50%) will be used to fund these

positions The Board will declare these resources on 7/7/09, via a budget revision, Once Federal Categorical Stimulus resources become available these

positions will be moved to this funding source and IDEA resources will be allocated to other needs

The Contingency Plans: If Federal IDEA resources become problematic AB87 Capital Reserves would

be used This will require Board action to implement and funding will not cover the

entire year (approximately one-half year) Once Federal Categorical Stimulus resources become available, the Board

will be asked to declare those resources and return the AB87 resources

1616

Fine Tuning Our Fine Tuning Our WorkWorkSection VISection VI

VIVI

Future WorkFuture Work• Dealing with the future decline of State revenues

($115/ADA)– Base Revenue Limit– Categorical Resources

• Dealing with the possible loss (65%) of State Transportation revenues

• To fine tune our budget we will use our budget revision process– Budget Revisions give the District the tools necessary to make

adjustments as dictated by the State and/or requested by the Board

1717

RecommendationsRecommendationsSection VIISection VII

VIIVII

RecommendationRecommendation

o The Superintendent and Staff recommend that the Board of Education approve the 2009/10 Budget as presented including:o All supporting documentation required by the State and County Office of

Education

o Included in this recommendation is the approval of: The list of budget reductions developed by the Board over a number of

meetings Budget guidelines Enrollment projections

o In addition, Staff recommends that any further changes be made using the budget revision process This process could start as early as the July 7, 2009 Board Meeting

1818

AppendixAppendix

Section VIIISection VIII

VIIIVIII

AppendixAppendix

A. Budget Reductions

B. Required State Reporting

C. County Office of Education Reporting

IX.IX.

A. Budget ReductionsA. Budget Reductions

*See Attachment in Board Item*See Attachment in Board Item

AA

B. Required State ReportsB. Required State Reports

*See Attachment in Board Item*See Attachment in Board Item

BB

C. County Office ofC. County Office of Education Reports Education Reports

*See Attachment in Board Item*See Attachment in Board Item

CC