MDUSD Budget Update

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					MDUSD Budget Update

        Bryan Richards
   Director of Fiscal Services
         June 2, 2009
        In last week’s episode…,
► Governor called for additional reductions of
  $225 per ADA for 2008/09 or ($7,496,143)
► Governor called for additional reductions of
  $244 per ADA from 2009/10 onward
  ($8,086,958) and up annually

► LAO issued new report showing State Deficit
 increased $3 billion after Governor’s report
Tonight…, a Revised May Revise
► Governor   responds with another new round
  of cuts
► Good news first… Additional reductions for
  2008/09 reduced down from $225 to $219
  per ADA ($7,296,246 instead of $7,496,143)
► Then the bad news… additional reductions
  for 2009/10 increased from $244 to $353
  per ADA ongoing ($11,699,574 instead of
  $8,086,958) and up annually
                    State Funding Cuts per Student
                                                    MDUSD Revenue Limit Funding per ADA

                    7,500
                                                                                                      6,965
                    7,000
                                                                                             6,755
                                                                                     6,583
Dollars $ per ADA




                                                                    6,370    6,428
                    6,500
                                                        6,109                                                 Revenue Limit
                    6,000                                                                             5,786
                                                                                                              1st May Revise
                                                    5,780                                     5,644
                                    5,528                                   5,371    5,506                    2nd May Revise
                                                            5,405   5,334                             5,714
                    5,500                   5,528
                            5,125                                                             5,541
                                                        5,411                5,273   5,400
                                                                    5,225
                    5,000   5,079

                    4,500
                            2005/06 2006/07 2007/08 2008/09         2009/10 2010/11 2011/12 2012/13 2013/14
                                                                     Year
     How much have we lost?
► $698.16  per ADA shortfall in 2008/09 =
  $23,260,031
► $1,144.54 per ADA shortfall in 2009/10 =
  $37,933,798
► $1,154.96 per ADA shortfall in 2010/11 =
  $38,064,560
► $1,182.81 per ADA shortfall in 2011/12 =
  $38,771,991
► Total in 4 years = $138,030,380
► Grows over $39,000,000 per year thereafter
           What does it mean?
► We  would end 2008/09 $7,239,188 below required
  reserve if we were to spend all of the UGF budget
   Tier III balances and spending freeze help us stay afloat
► We   end 2011/12 (third year out in budget)
  $46,488,062 below the required reserve after all
  previously approved cuts enacted
► Fully utilizing State Fiscal Stabilization $8.9M to
  plug the gap by transferring expenditures in
  2009/10 and 2010/11
► Still need nearly $38M in unrestricted cuts across
  the three years 2009/10 – 2011/12
► Additionally, categorical programs must cut to stay
  within allotted funding (many down 20%)
        Upcoming Budget News
► New  proposed reductions to services for
  June 2 (at least $12.7M per year)
► Draft of budget and status update June 16
► Budget adoption June 30
   Unlike U.S. and State, ours must be balanced
    and on time