Lodi Unified School DistrictLodi Unified School District2013-14 Proposed Budget2013-14 Proposed Budget

--June 18, 2013June 18, 2013

“We didn't actually overspend our budget. The allocation simply fell short of our expenditure.”

― Keith Davis

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What is a Budget?What is a Budget?In its simplest form: A proposed plan for revenues and expenditures for the following fiscal year.In typical form: A proposed plan for revenues and expenditures in a format that meets county and state requirements.In optimum form: A policy document to reflect the philosophy of the Board, the Administration, & the Education Community within the resources available.A financial plan: To show where you've been and where you are going.An operations guide: To guide administrative decisions and actions throughout the year. It is a living document that changes.A communications device: To share with the community the fiscal strengths and challenges of the instructional program.

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Budget ProcessDecember – Enrollment Projections and Staffing Ratios are determined for Budget Year.

April 1st – Roll current year Board approved Unrestricted budgets AND Position Control into Budget Development.

April – Remove One Time funds from proposed budget, such as, carry over and donations. Adjust school site budgets to reflect new year allocations.

April - May – Analyze all Other Funds and Restricted budgets to determine if funds are continuing. Work with Program Managers to plan budgets for specialized programs.

May – Revenue Limit calculations are finalized with the County Office for budget year and 2 subsequent years.

May – Estimated Beginning Fund Balance for the budget year is projected. The 3 year Multi Year Projection is completed with all known revenue and expenditure changes, including bargaining unit agreements.

June – All funds and resources are balanced. Data is uploaded into State SACS reporting software. Technical Review Checks are processed and Criteria and Standards and County required Assumptions are also completed.

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After 41 Years Change?After 41 Years Change?We have created a budget under current statute.The Revenue will change and will be reflected in future budget updates.Multi Year Revenue Projections will be updated as information becomes available.2013-14 will be a year of Conversion to the new Budget Process.The State will develop Procedures and Regulations (Trailer Bills).A new process will include:

Local Control and Accountability Plan (LCAP). Will be part of the Budget Adoption.

Parent Advisory Committee (PAC). Will Review and make Recommendations to the Board.

LCFF will provide an increase of Revenue of approximately $9,336,492 for 2013-14, but we will continue to deficit spend.

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BRL Revenue BRL Revenue $214,814,800$214,814,800

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23% ($81,345,706) Local Property Tax Contribution to Base Revenue Limit 15% to total revenue.

Multi-Year ComparisonBase Revenue Limit (BRL) vs. Local Control Funding Formula

(LCFF)

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Total Loss of ADA 1,324.74-7.1 Million Dollars

Average Loss 331 ADA

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Expenditure $224,889,030Expenditure $224,889,030

1000 Certificated Personnel

2000 Classified Personnel

3000 Benefits

4000 Supplies

5000 Contracted Services

6000 Capital Items

7000 Net Indirect & Debt Service

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Deficit Spending ($10,074,230)

LCFF *($737,738)

*Approximation Only

Changes in Expenditures from 2012-Changes in Expenditures from 2012-1313

4.5% Increase in Certificated Salary6.6% Increase in Classified Salary2.6% Increase in Benefits4000-5000 Percentage Decline10% Increase Contribution to Special Education2% Reduction in Contribution to Transportation10 FTE CSR 28:1 K-316.4 FTE above formula to balance Class Size and Reduce Combos Up from 12 FTE 9

=85% of Budget

Designated ReservesDesignated ReservesEnding Fund BalanceEnding Fund Balance

Stores, Revolving, & Prepaid $ 795,979Restricted $ 3,795,496Contingency Reserve $ 150,000Capitol Outlay (AB87) $ 279,920Programmatic Reserve $ 1,171,693Unforeseen Special Education $ 2,000,000Carry Over Reserves $ 2,500,000State Deferred/Deficit Spending $22,754,497State Required 3% $ 7,000,000

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TotalBRL $40,447,585LCFF $ 9,336,492 Total $49,784,077

Estimated DeficitBRL vs. LCFFBased on Traditional COLA

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Ending Fund Balance LCFF v. BRLOne-time Dollars

12Assumption that designated reserves do not change

State History Deficit Factor5 Years of fully funded out of 23

What will happen when Prop 30 Expires?

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… …to be continuedto be continued

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2013-14 Budget Part II

Special ThanksSpecial Thanks

Angel Murnan, Director of Budgets, and the Budget Department

Maria Fong, Controller, and the Accounting Department

And,

to the Board of Education

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