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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
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4 - 11
12 - 13
14 - 16
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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
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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
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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
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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
• Special Reserve for Capital Outlay $ 7,545,338• Bond Interest, Tax Override & Debt Service $24,287,078• Self-Insurance Funds $15,248,474
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State & County State & County ReportingReporting
Section IVSection IV
IVIV
State & County ReportsState & County Reports• County Budget Assumptions
– Required by San Joaquin County Office Education– Details the change from 2008/09 Estimated Actuals
to 2009/10 Budget
• State Reports include Standards & Criteria– Used by county offices of education and the
California Department of Education– To develop, review & assess budgets and interim
financial reports of school districts in California
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State & County Reports - State & County Reports - ContinuedContinued
• State Reports Include Multi-Year ProjectionsState Reports Include Multi-Year Projections
2009/102010-11
– ADA Growth (250) (250)– Revenue COLA (12.45%) (12.45%)– Certificated Step/Col. 1.57% 1.57%– Certificated COLA 0% 0%– Classified Step/Col. 1.70% 1.70%– Classified COLA 0% 0%
• Impact-UnrestrictedImpact-Unrestricted– Change in Fund BalanceChange in Fund Balance ($ 302,708) ($710,989) ($ 302,708) ($710,989)– Ending Fund Balance $8,437,614 $7,726,625
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
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
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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
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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
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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