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Mt. Diablo Unified School District. First Interim Budget Report 2011-12 Activity through October 31, 2011 Presented December 13, 2011 Steven Lawrence, Ph.D., Superintendent Bryan Richards, Chief Financial Officer. Why is the ending balance higher than projected last year?. - PowerPoint PPT Presentation
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First Interim Budget Report 2011-12
Activity through October 31, 2011Presented December 13, 2011
Steven Lawrence, Ph.D., Superintendent
Bryan Richards, Chief Financial Officer
WHY IS THE ENDING BALANCE HIGHER THAN PROJECTED LAST YEAR?Revenue 2nd Int Est Act Actuals
Revenue Limit
164,735,676
166,281,005
164,298,896
Federal
337,272
337,273
575,246
State
31,194,239
31,199,245
34,034,994
Local
2,535,869
3,162,628
4,145,444
Interfund
1,572,413
1,572,413
1,572,413
Total Revenue
200,375,469
202,552,564
204,626,993
WHY IS THE ENDING BALANCE HIGHER THAN PROJECTED LAST YEAR?
Expenditures 2nd Int Est Act Actuals
Cert Sal
87,399,211
87,367,899
85,303,132
Clsf Sal
19,807,654
20,241,703
19,756,243
Benefits
31,778,504
31,086,101
29,970,211
Bks/Supp
7,447,827
4,752,810
3,160,474
Svc/Othr
14,860,512
15,614,258
11,173,754
Capital
112,424 92,425
189,526
Interfund
2,925,484
3,425,484
3,475,778
Net Contrib
31,393,058
31,773,090
30,845,512
Total Exps
195,724,674
194,353,770
183,874,630
WHY IS THE OPENING BALANCE HIGH?
Cash Flow & State Deferrals: Deferrals increased by $8.55M Need higher fund balance to maintain positive
cash Programmatic & site budget carryovers $7.5M Late one time revenue payments
2009-10 SDA Adjustment $2M Prior year mandated costs $1.4M State Fiscal Stabilization supplement $1.6M
Held off spending anticipating an across the board cut of $330/ADA, now pending as “trigger cuts”
WHY DO WE NEED A HIGH BALANCE?
The state faces another severe deficit and even steeper reductions in spending on core services, particularly education at all levels. - Contra Costa Times, December 13, 2011
To deal with declining enrollment To deal with cuts to state funding To equip us to keep programs going as long
as we can until the State’s situation turns around
To strive not to have more layoffs
2011-12: NO COLA + TRIGGER CUTS
The 2.24% COLA has been fully offset by an addition to the deficit factor
The county advises planning for no COLA in the next two years as well
County advises planning on mid-year trigger cuts being ongoing
FUNDED REVENUE LIMIT 2011-12 VS. 2010-11
Graph courtesy of School Services of California, Inc.
Mt. Diablo Unified School District
2010-11 2011-12
$6,346.02 $6,489.02
$5,206.08 $5,207.18
Loss due to Deficit Factor
Loss due to Remaining Deficit Factor
Funded Revenue Limit Funded Revenue Limit
$1,281.84
$1,139.94
WHAT DOES A 19.754% CUT LOOK LIKE?
School year is 180 days 19.754% of school year is 35.56 days To cut school by 19.754% we would have to close
after school ended on April 25th A 19.754% reduction of the school day would
equal over 1 hour less instruction daily
10/11 REVENUE LIMIT CUT WIDENS TO $1,282/ADA
5,125
5,528
6,109
6,371 6,346
6,489
6,691
6,879
5,079
5,528
5,780
5,630
4,948
5,206 5,207 5,207 5,207
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
Do
lla
rs $
pe
r A
DA
Year
MDUSD Revenue Limit Funding per ADA
Revenue Limit
Actual 11-12 Budget
DECLINING ENROLLMENT
We are still in declining enrollment funding model
We are projecting a decline of 201.15 ADA in 2011/12 from 2010/11
This does not include effect of potential charter school conversion since district will still have to report their ADA
MDUSD ADA IS STILL DECLINING!
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
P-2 ADA
HOW DOES REVENUE LIMIT FUNDING LOOK?
150,000,000
155,000,000
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
Revenue Limit
*Includes $11M reduction due to CVHS Charter
UNRESTRICTED GENERAL FUND REVENUE
Revenue Limit Sources $ 165,734,968 Federal Revenue 347,273 Other State Revenue 31,848,432 Other Local Revenue 1,893,298 Interfund Transfers In 0 Total Revenue
199,823,972 Less: Net Contrib. to RGF
(40,719,672) Net Available Revenue $
159,104,300
Revenue Limit62.6%
Revenue Limit Contributed to
Restricted20.4%
Federal Revenue0.2%
State Revenue15.9%
Local Revenue0.9%
Interfund Transfers In0.0%
Mt. Diablo Unified School DistrictUnrestricted General Fund Revenues Before Contributions
2011-12 Total = $199,823,971
Revenue Limit is 83% of unrestricted general fund revenue.
UNRESTRICTED GENERAL FUND EXPENDITURES
Certificated Salaries $ 92,623,130 Classified Salaries 19,414,849 Employee Benefits 33,487,888 Books & Supplies 5,538,316 Services & Operating 12,584,907 Capital Outlay 179,420 Other Outgo 0 Interfund Transfers Out 3,904,687 Total Expenditures 167,733,197
Certificated Salaries55.22%
Classified Salaries11.57%
Employee Benefits19.96%
Books and Supplies3.30%
Services & Operating
7.50%
Capital Outlay0.11%
Interfund Transfers Out
2.33%
Mt. Diablo Unified School DistrictUnrestricted General Fund Expenditures and Transfers Out
2011-12 Total = $167,733,197
Salaries and Benefits make up 86.75% of expenditures & transfers out
UNRESTRICTED GENERAL FUND SUMMARY
Net Available Revenue $ 159,104,300
Net Expenditures 167,733,197 Net (decrease) fund bal.
(8,628,897) Beginning Balance, July 1
45,543,430 Projected Ending Balance $
36,914,533
COMPONENTS OF ENDING BALANCE
Revolving Cash $ 300,000 Stores Inventory 419,478 Economic Uncertainties (2%) 5,857,997 IRS Assessment Resolution 533,500 Tier 3 Balances & Site carryovers 6,851,032 State trigger cuts 9,686,366 Undesignated 13,266,160 Ending Balance $ 36,914,533
RESTRICTED GENERAL FUND REVENUE
Revenue Limit Sources $ 7,134,045 Federal Revenue 26,528,680 Other State Revenue 40,072,781 Other Local Revenue 10,130,583 Interfund Transfers In 0 Contribution from Unr. 45,275,298 Total Revenue $129,141,387
Revenue Limit5.52% Federal Revenue
20.54%
State Revenue31.03%
Local Revenue7.84%
Contribution from Unrestricted
35.06%
Mt. Diablo Unified School DistrictRestricted General Fund Revenue
2011-12 Total = $129,141,387
RESTRICTED GENERAL FUND EXPENDITURES
Certificated Salaries $ 37,464,789 Classified Salaries 19,991,549 Employee Benefits 23,038,613 Books & Supplies 14,427,980 Services & Other Operating 27,908,185 Capital Outlay 1,798,331 Other Outgo 1,215,293 Indirect Costs 3,877,515 Total Expenditures $ 129,722,255
Certificated Salaries28.88%
Classified Salaries15.41%
Employee Benefits17.76%
Books & Supplies11.12%
Services & Other Operating
21.51%
Capital Outlay1.39%
Other outgo0.94%
Indirect Costs Xfr Out
2.99%
Mt. Diablo Unified School DistrictRestricted General Fund Expenditures
2011-12 Total = $129,722,255
RESTRICTED GENERAL FUND SUMMARY
Total Revenue $ 129,141,387
Total Expenditures 129,722,255
Net (decrease) in fund bal. ( 580,868)
Beginning Balance, July 1 13,180,547
Projected Ending Balance $ 12,599,679
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 Project Funds (continued)County School Facilities Fund (Developer
Fees) – Fund 35ICapital Project Fund for Blended Component
Units (Mello-Roos Measure A) – Fund 49I Debt Service Funds
Bond Interest & Redemption Fund (Measure C) – Fund 51I
Debt Service Fund for Blended Component Units (Measure A) – Fund 52I
Trust FundsFoundation Private-Purpose Trust Fund –
Fund 73I
SUPPLEMENTAL INFORMATION
Form AI: Average Daily Attendance decrease of (201.15) in 11/12 will decrease funding for 10/11.
Form CASH: Cash Flow – Ending GF cash will be positive but projecting a decline of $9.2M
Form RLI: Revenue Limit Calculations Form 01CSI: Criteria & Standards Form CI: Certification to sign summarizes
Criteria & Standards – QUALIFIED Cert.
CLAYTON VALLEY CONVERSION CHARTER EFFECT – UNRESTRICTED GENERAL FUND
Revenue Limit decrease $ (10,924,996)
Rent on CVHS property 450,649 1% oversight fee 116,536 Certificated Salary decrease 4,591,659 Classified Salary decrease 510,091 Benefits decrease 1,525,846 Books & supplies decrease 71,152 Services & operating decrease 307,349 Tier 3 pass through ($127/ADA) (225,679) Net effect annually $ ( 3,577,393)
Based on 1,777 units of ADA
FORM MYPI: MULTI YEAR PROJECTION Undesignated @ 6/12 $ 13,266,160 Operating Deficit 2012/13 ( 8,657,649) Trigger cut ongoing 12/13 ( 9,626,491) Adjustment in 2% reserve 273,974 Unappropriated Balance 6/13 ( 4,744,006) Operating Deficit 2013/14 (10,793,323) Trigger cut ongoing 13/14 ( 9,465,376) Adjustment in 2% reserve 1,973 Unappropriated Balance 6/13 $ (25,000,732)
Based upon first interim guidance, not today’s DOF numbers
QUALIFIED CERTIFICATION – WHAT DOES IT MEAN? The District projects that it may not meet its
financial obligations for the current fiscal year or two subsequent fiscal years.
We will meet our obligations for this year If necessary, we can issue a TRAN to deal with
cash flow Department of Finance report came out too late to
be included at first interim We may be unable to meet obligations for next
year based on current projections (depending on what form the additional cuts in the Governor’s January budget take, whether Clayton Valley converts to charter status and settlement of outstanding negotiations)
LAO ISSUES BUDGET ASSESSMENT
State Revenues tracking $3.7 Billion below projections
Projected $13 billion problem by June 2013 Projects all Tier 1 and about ¾ of Tier 2 trigger
cuts needed to take place
GOVERNOR & DEPARTMENT OF FINANCE REPORT
State revenues tracking $2.2 Billion below projections
Agrees with LAO on size of cumulative problem over two years
Projects full transportation cut and about 5-7% of the additional Tier 2 cut to the revenue limit
Kicks can to next year for balance of the two year $13B problem
Estimated Revenue Limit decrease of $13/ADA Estimated Transportation decrease of
$35.94/ADA Estimated cut of about $1.6M
WHAT ABOUT SOLAR $?
Solar expected to go online in late Spring 2012
Savings from COP payments being utilized to fund intervention teachers
Savings from electricity helping to ease the deficit issues we see coming in the budget
WHAT NEXT?MORE FROM
SACRAMENTO
Governor Brown’s budget will be announced in JanuaryWill include $7B in new taxes proposed in his measureWill include trigger cuts to re-balance the budget if measure fails
GOVERNOR BROWN: THERE WILL BE MORE CUTS NEXT YEAR
From today’s press conference: “There will be more cuts in the January budget for 2012-13, but not for between January and June of 2012.”
$13B hole; taxes cover $7B; need to cut $6B; will try to protect K-12 on its share of the $6B
“I would like to avoid doubling the cuts which will be the effect if the tax measure fails.”
DOF Mantosantos: “All cuts are ongoing.”