California Estimates from Federal Stimulus Package

• The American Recovery and Reinvestment Act (ARRA) includes the following for California:– Title I: $1.591 billion– IDEA: $1.422 billion– Construction: $2.43 billion

• Educational Technology $106 million

– Child Care Development: $220 million– Head Start: $82.5 million

ARRA funding for Glendale Unified

2009 Funding• Title I-A increase $3,666,400• Construction: $9,947,800• IDEA increase $3,685,100• Total 2009: $17,299,2002010 Funding• Title I-A increase $3,666,400• IDEA increases: $4,227,700• Total 2010: $7,894,200Total 2009, 2010 Funding $25,193,400

Will Federal Stimulus Dollars Directly Benefit Glendale Unified?

Federal StimulusPackage (ARRA)American Recoveryand Reinvestment

Act

State of California

Glendale UnifiedSchool District

Combined Restricted and Unrestricted General FundsBeginning Fund Balance and Revenue

(2008-09)

$85 million

Unrestricted

Restricted

Need for Budget Flexibility

$186 million

31%

69%

$271 million

Restricted GeneralFund (2008-09)

Types of ExpendituresSalaries and BenefitsOver 100 Programs

Federal ProgramsTechnologyNew Discretionary GrantsSpecial EducationEconomic Impact Aid (EIA)

Limitations of Some Restricted ProgramsRules and RegulationsLimited or No Personnel ExpendituresOne-Time FundingSite-Determined UsesSpecific Uses

$85 Million

Need for Budget Flexibility

Need for Budget Flexibility

Restricted Budget Unrestricted Budget

State 70%

Federal30%

Salaries & Benefits 90%

Other10%

Need for Budget FlexibilityUnrestricted Budget

Salaries & Benefits

90%

Other 10%

Governor’s Proposed Cuts12.3% (2008-09, 2009-10)

Salaries & Benefits

90%

Other10%

Need for Budget Flexibility

Restricted Budget Unrestricted Budget

State 70%

Federal30%

Flexibility

Details of Governor’s Proposal & Potential Phase 1 Adjustments

Governor's Proposal 2008-09 2009-10 2010-112008-09 - Eliminate the .68% COLA and a 4.5% Revenue Reduction (8.0) (8.0) (8.0)

2009-10 - Additional 2.5% Revenue Limit Reduction (3.8) (3.8)

2010-11 - Additional 3% Revenue Limit Reduction (4.5)

On-going Expenditure Reductions and/or Revenues - Phase 1Stop GASB 45 Contribution for Future Costs 1.2 1.2 1.2

Charge Food Service for Indirect Costs 0.3 0.3 0.3

One-time Reductions and/or Revenues - Phase 1Sweep Unrestricted General Fund Carry Over 1.0 JPA Workers Compensation Refund 3.1

Net Budget Adjustment (2.4) (10.3) (14.8)

Does Not Include:Flexibility Options - Categorical & Restricted Maint TransferReduced Spending & Staffing ReductionsSweep of Categorical ProgramsChanges to K-3 CSR

Detail of Governor's Proposal & Potential Phase 1 Adjustments

Summary Impacts of Governor’s Proposed Budget & Potential Phase 1 Adjustments

2008-09 2009-10 2010-11

Ending Fund Balance Projection (First Interim 2008-09) 22.1 18.2 14.1 Impact of 2008-09 Adjustments (2.4) (2.4) (2.4) Impact of 2009-10 Adjustments (10.3) (10.3) Impact of 2010-11 Adjustments (14.8)

Adjusted Ending Fund Balance Projection 19.7 5.5 (13.4)

Designated and Restricted Portion:Inventory & Revolving Cash Account (0.2) (0.2) (0.2) Fund Balance Designation (0.6) (0.6) (0.6)

3% Mandated Reserve for Economic Uncertainties (6.8) (6.8) (6.8) Balance in Excess of 3% 12.1 (2.1) (21.0)

Summary Impacts of Governor's Proposed Budget & Potential Phase 1 Adjustments