Governors 2010 May Revise & Districts Proposed 2010-11 Budget June 15, 2010 Steven Lawrence, Ph.D., Superintendent Bryan Richards, Director, Fiscal Services.

Governor’s 2010 May Revise & District’s Proposed 2010-11

BudgetJune 15, 2010

Steven Lawrence, Ph.D., SuperintendentBryan Richards, Director, Fiscal Services

State Fully Funds COLA!

However, the COLA is NEGATIVE. That means a 0.39% DECREASE in funding;

($25) per ADA (which works out to about ($19.45)/ADA when deficited)

“One Time” Deficit now ongoing!

This year we had a one-time additional deficit of $252.99 per 2008-09 FUNDED ADA (2007-08 actual P-2 ADA) or about $254.13 per funded ADA

Starting next year it will become ongoing and be 3.85% * undeficited revenue limit (including Beginning Teachers and Meals for Needy Adjustments and COE ADA, but with the cut not passed through to the COE for an effective cut of $247.00/ADA

Funded Revenue Limit 2009-10 vs. 2010-11

Graph courtesy of School Services of California, Inc.

Mt. Diablo Unified School District

2009-10 2010-11

$6,371.02 $6,346.02

$4,947.49 $4,936.51

Loss due to Deficit Factor and $254-per-ADA

one-time cut

Loss due to Deficit Factor and 3.85% per-

ADA Reduction

Funded Revenue Limit Funded Revenue Limit

$1,409.51$1,423.53

What does a 22.21% cut look like? School year is 180 days 22.21% of school year is 40 days To cut school by 22.21% we would have

closed after school ended on April 16th

10/11 revenue limit cut deepens to $1,409/ADA

MDUSD Revenue Limit Funding per ADA

6,803

6,617

6,4616,3466,371

6,109

5,125

5,528

5,647

5,482

5,348

5,227

5,079

5,780

5,303

5,1625,041

4,9374,947

5,630

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

Year

Do

llar

s $

per

AD

A

Revenue Limit

Actual 09-10Budget

May 2010 Revise

Declining Enrollment Less Steep than projected at P-1

At adoption we projected a decline of 184.23 ADA

At P-1 we were down 719.95 ADA For P-2 we are down 550.58 ADA We are down 1.66% from 2008/09

MDUSD Enrollment Declining!P-2 ADA

29,500

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

How does revenue limit funding look?Revenue Limit

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

MDUSD

Revenues

Estimated Actuals Proposed Projected

Unrestricted 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12

Revenue Limit 185,833,596 187,893,543 182,218,757 159,012,690 156,460,391 157,660,440

Federal 221,236 605,858 402,858 225,054 232,231 229,989

State 17,346,231 17,404,849 16,894,600 31,683,519 31,510,175 32,031,067

Local 7,750,756 5,667,289 4,524,339 3,490,005 1,123,770 1,123,770

Total Unrestricted 211,151,819 211,571,539 204,040,555 194,411,268 189,326,567 191,045,266

Restricted 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12

Revenue Limit 6,927,065 7,450,041 7,189,798 6,815,118 6,797,720 7,287,766

Federal 16,888,400 15,055,764 28,266,945 35,444,678 20,276,395 20,080,659

State 53,977,961 54,769,197 54,986,527 37,607,078 36,149,946 35,800,976

Local 5,863,773 5,495,204 5,602,383 9,749,285 7,180,556 7,111,239

Total Restricted 83,657,199 82,770,206 96,045,653 89,616,159 70,404,617 70,280,640

Combined 294,809,018 294,341,745 300,086,208 284,027,427 259,731,184 261,325,906

-

20,000,000.00

40,000,000.00

60,000,000.00

80,000,000.00

100,000,000.00

120,000,000.00

140,000,000.00

160,000,000.00

180,000,000.00

200,000,000.00

220,000,000.00

2006-07

2007-08

2008-09

2009-10

2010-11 2011-12

Year

MDUSD Unrestricted Revenue 2006/07 - 2011/12

Local

State

Federal

Revenue Limit

`

-

10,000,000.00

20,000,000.00

30,000,000.00

40,000,000.00

50,000,000.00

60,000,000.00

70,000,000.00

80,000,000.00

90,000,000.00

100,000,000.00

2006-07

2007-08

2008-09

2009-10

2010-11

2011-12

Year

MDUSD Restricted Revenue 2006/07 - 2011/12

Local

State

Federal

Revenue Limit

-

50,000,000.00

100,000,000.00

150,000,000.00

200,000,000.00

250,000,000.00

300,000,000.00

2006-07

2007-08

2008-09

2009-10

2010-11

2011-12

Year

MDUSD General Fund Revenue 2006/07 - 2011/12

Local

State

Federal

Revenue Limit

Unrestricted General Fund Revenues Revenue Limit Sources $ 156,460,391

Federal Revenue 232,231 Other State Revenue 31,510,175 Other Local Revenue 1,123,770 Total Revenue 189,326,567 Less: Contribution to RGF (39,730,919) Net Available Revenue $ 149,595,648

Mt. Diablo Unified School District Unrestricted General Fund Revenues Before Contributions

2010-11 Total = $189,326,567

Local Revenue0.6%

State Revenue16.6%Federal Revenue

0.1%

Revenue Limit Contributed to

Restricted20.7%

Revenue Limit61.9%

Health rates skyrocketing!Kaiser Rates

0

500

1,000

1,500

2,000

2,500

Year

Mo

nth

ly P

rem

ium

1 party

2 party

3 party

Compounding rate increasesKaiser % Increase

0.0%0.0%

10.0%10.0%10.0%10.0%10.0%23.3%

4.8%8.0%9.2%10.7%9.8%16.1%17.8%

308.1%

271.0%

237.3%

206.6%

178.7%

45.3%

68.8%85.3%

105.2%123.9%

141.9%153.4%

0.0%

40.0%

80.0%

120.0%

160.0%

200.0%

240.0%

280.0%

320.0%

Year

Perc

en

t

y/yinc

incsince02

MDUSD Benefit CostsHealth, Dental, Vision & Post Retirement Benefits

-

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

30,000,000

35,000,000

40,000,000

Year

Am

ou

nt

General Fund

Unrestricted Expenditures Certificated Salaries $ 90,791,443 Classified Salaries 20,344,861 Employee Benefits 33,148,724 Books & Supplies 4,572,599 Services & Operating 12,561,671 Capital Outlay 86,707 Other Outgo 926,781 Interfund Transfers Out 3,486,037 Total Expenditures 165,918,823 Less: Indirect Cost Xfrs In

(4,471,797) Net Expenditures $ 161,447,026

Mt. Diablo Unified School DistrictUnrestricted General Fund Expenditures and Transfers Out

2010-11 Total = $165,807,058

Services & Operating

7.57%Capital Outlay

0.05%

Other outgo0.54%

Interfund Transfers Out

2.10% Books and Supplies

2.76%

Employee Benefits19.98%

Classified Salaries12.26%

Certificated Salaries54.72%

Unrestricted Bottom Line

Net Available Revenue $ 149,595,648 Net Expenditures 161,447,026 Net (decrease) fund bal. (11,851,378) Beginning Balance, July 1 18,725,556 Projected Ending Balance $ 6,874,178

Components of Ending Balance Revolving Cash $ 300,000 Stores Inventory 536,118 Economic Uncertainties (2%) 5,436,671 IRS Audit 533,500 Undesignated Balance 67,889 Ending Balance $ 6,874,178

Restricted Revenue

Revenue Limit Sources $ 6,797,720 Federal Revenue 20,276,395 Other State Revenue 36,149,946 Other Local Revenue 7,180,556 Contribution from UGF 39,730,919 Total Revenue $110,135,536

Mt. Diablo Unified School DistrictRestricted General Fund Revenue

2009-10 Total = $110,135,536

Interfund Transfers0.00%

Local Revenue6.52%

State Revenue32.82%

Federal Revenue18.41%

Revenue Limit6.17%

Contribution from Unrestricted

36.07%

Restricted Expenditures

Certificated Salaries $ 33,678,278 Classified Salaries 18,950,519 Employee Benefits 22,472,480 Books & Supplies 7,702,632 Services & Other Operating 22,075,003 Capital Outlay 216,000 Other Outgo 1,560,284 Indirect Costs Xfr Out 3,731,289 Total Expenditures $ 110,386,485

Mt. Diablo Unified School DistrictRestricted General Fund Expenditures

2010-11 Total = $110,386,485

Interfund Transfers

0.00%

Indirect Costs Xfr Out

3.38%

Books & Supplies6.98% Employee

Benefits20.36%

Classified Salaries17.17%

Certificated Salaries30.51%

Capital Outlay0.20%

Other outgo1.41%

Services & Other Operating

20.00%

Restricted Bottom Line

Total Revenue $ 110,135,536 Total Expenditures 110,386,485 Net (decrease) in fund bal. (250,949) Beginning Balance, July 1 1,892,692 Projected Ending Balance $ 1,641,743

Multi Year Projection

Undesignated + Tier 3 @ 6/10 $11,889,885 Operating Deficit 2010/11 (11,851,378) Eliminate Prepaids 29,382 Unappropriated Balance 6/11 67,889 Operating Deficit 2011/12 (12,124,838) Adjustment in 2% reserve (32,345) Unappropriated Balance 6/12 ($12,089,294)

The end of flexibility is a big problem

Unappropriated Balance 6/12 ($12,089,294) Projected Deficit in 2012/13 ($18,955,554) Unappropriated Balance 6/13 ($31,044,848) Projected Deficit in 2013/14 ($25,913,297) Unappropriated Balance 6/14 ($56,958,145) Projected Deficit in 2014/15 ($27,425,808) Unappropriated Balance 6/15 ($84,383,953)

Average deficit is $19,194,768 per year

How much less must we spend?

Enrollment declines projected to continue through 2014 at rates between 0.78% and 1.43% per year

We must decrease ongoing annual spending by a minimum of $19.2M by 7/1/2010 for the 2010/11 school year to fully address the problems including flexibility loss in 2013/14 OR,

Cut at least $42.9M plus a cushion over three years by 1st interim and plan for substantially deeper cuts to solve the structural deficit as K-3 CSR returns and flexibility goes away.

Other Funds Funds for special purposes excluded from the

General Fund Special Revenue Funds

Charter School – Form 09 Adult Education – Form 11 Cafeteria – Form 13 Deferred Maintenance – Form 14

Capital Projects Funds Building (Local bonds for construction) – Form 21 Capital Facilities (a.k.a. Developer Fees) – Form 25

Other Funds Capital Projects Funds (continued)

County School Facilities (State Allocations for construction) – Form 35

Capital Project for Blended Component Units (Mello-Roos) – Form 49

Debt Service Funds Bond Interest and Redemption – Form 51 Debt Service for Blended Component Units (Mello-

Roos) – Form 52 Foundation Private-Purpose Trust Fund

(Scholarship Fund) – Form 73 All “Other Funds” projecting positive fund

balances

What next?More from

Sacramento

Both houses of legislature sent their versions of the State budget to conference committee

Supposed to be reconciled by June 15 Governor’s signature due June 30 Don’t hold your breath

Meanwhile back in Concord… We must adopt a balanced budget by June

30th

Final Budget Public Hearing will be June 22nd

We must plan an additional contingency if the State doesn’t fund the COLA when it returns to a positive number in 2011-12 (an additional $3,420,000 ongoing cut)

In next week’s season finale… PERS announces the 2011 insurance rates

and benefit changes (meeting is today, information should come out tomorrow)

Will the State Legislature pass a revised budget? Cannot agree on cuts versus revenue increases Today is June 15 deadline, June 30 deadline…

(Julgusepoctemberary)

Events to watch for next season… Will we have a budget out of the legislature by the time school starts?

Will the Governor sign it? The end of ARRA We must conquer our deficit

spending Have a great summer and stay tuned

Starring:

ARNOLD SCHWARZENEGGER

the Governor

MARIA SHRIVER

the State’s First Lady

DARRELL STEINBERG

the Senate President

JOHN PÉREZ

the Assembly Speaker

MAC TAYLOR

the Legislative Analyst

JOHN CHIANG

the State Controller

and

JACK O’CONNELL

the Superintendent of Public Instruction