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Grossmont Union High School District
March 1, 2007
Board of Education
Budget Study
Workshop
Fiscal Year 2007/08
BOARD OF EDUCATION BUDGET STUDY WORKSHOP – MARCH 1, 2007
Agenda
I. Budget Development Calendar
II Revenue & Expenditure Summary, 2006‐2007
III. Proposed Guiding Principles
IV. Projected Enrollments
V. Governor’s Budget Overview
VI. Revenue & Expenditure Assumptions
VII. Multi‐Year Comparison—General Fund
VIII. Unrestricted Ending Balances
IX. Cost of 1% Salary Increase
BOARD OF EDUCATION BUDGET STUDY WORKSHOP – MARCH 1, 2007
Budget
Development
Calendar
BOARD OF EDUCATION BUDGET STUDY WORKSHOP – MARCH 1, 2007
2007‐2008 Budget Development Calendar
• 01/16/07 Governor’s January Budget Conference
• 02/02 – Budget Meetings with Cabinet
05/18/07
• 02/07/07 Enrollment Projections for 2007‐2008
• 02/08/07 Board Meeting
• 02/16/07 Finalize budget development informa‐
tion for all responsibility code holders
• 02/16/07 Distribute budget development
information via email to users not in the
centralized process
BOARD OF EDUCATION BUDGET STUDY WORKSHOP – MARCH 1, 2007
2007‐2008 Budget Development Calendar (Cont.)
• 03/01/07 Budget Study Workshop
• 03/08/07 Board Meeting: Second Interim
Financial Report
• 03/09/07 Preliminary salary projections by
employee to sites
• 03/16/07 Budgets are due from sites and
departments to Fiscal Services
• 04/02/07 Human Resources completes all
updates and corrections to Escape
Personnel module
• 04/13/07 Monthly salary and benefit projections
complete
BOARD OF EDUCATION BUDGET STUDY WORKSHOP – MARCH 1, 2007
2007‐2008 Budget Development Calendar (Cont.)
• 04/19/07 Board Meeting
• 05/01/07 Fiscal Services complete revenue and
expense projections
• 05/10/07 Fiscal Services reviews preliminary
budget with Deputy Superintendent
• 05/10/07 Board Meeting
• 05/15/07 May Revise
• 05/22/07 May Revise Conference
• 05/23/07 Update Enrollment Projections for
2007‐2008
BOARD OF EDUCATION BUDGET STUDY WORKSHOP – MARCH 1, 2007
2007‐2008 Budget Development Calendar (Cont.)
• 05/31/07 Potential Second Budget Study Workshop
• 05/31/07 Update 2007‐08 Budget based on May Revise
• 06/04/07 Final budget to Print Shop
• 06/07/07‐ Final budget available for Public
06/08/07 Inspection
• 06/07/07 Final budget submitted for inclusion in the
June Governing Board meeting
• 06/14/07 Adopted Budget presented to Governing Board
for approval
• 06/30/07 Legislature approves and adopts the state
budget for 2007‐2008 (maybe)
BOARD OF EDUCATION BUDGET STUDY WORKSHOP – MARCH 1, 2007
Revenue &
Expenditure
Summary
2006 ‐ 2007
BOARD OF EDUCATION BUDGET STUDY WORKSHOP – MARCH 1, 2007
BOARD OF EDUCATION BUDGET STUDY WORKSHOP – MARCH 1, 2007
BOARD OF EDUCATION BUDGET STUDY WORKSHOP – MARCH 1, 2007
Proposed Guiding
Principles
BOARD OF EDUCATION BUDGET STUDY WORKSHOP – MARCH 1, 2007
Proposed Guiding Principles
• Focus Resources on Student Achievement
• Provide Appropriate & Affordable Employee Compensation
• Maintain Reserve for Economic Uncertainties at 3% or Greater
• Maintain Restricted Maintenance Account at 3% or Greater
• Deficit Spending in Two Consecutive Years Should be
Avoided
•
•
•
•
BOARD OF EDUCATION BUDGET STUDY WORKSHOP – MARCH 1, 2007
Projected
Enrollment
BOARD OF EDUCATION BUDGET STUDY WORKSHOP – MARCH 1, 2007
BOARD OF EDUCATION BUDGET STUDY WORKSHOP – MARCH 1, 2007
Governor’s Budget
Overview
BOARD OF EDUCATION BUDGET STUDY WORKSHOP – MARCH 1, 2007
Highlights of the Governor’s Budget
• The proposed COLA is 4.04%
• The average net increase for a high school district is
$259/ADA
• The deficit on the revenue limit was eliminated in 06/07
• No additional funding for equalization aid, but 06/07 aid
is ongoing
• Categorical programs (including Adult Education and
ROP) are proposed to receive the 4.04% COLA
BOARD OF EDUCATION BUDGET STUDY WORKSHOP – MARCH 1, 2007
Highlights of the Governor’s Budget (Cont.)
• Special Education COLA of 4.04% is on state and local
share of funding only, netting a funded COLA of 2.8%
• All hourly programs (summer school, supplemental
hourly) receive the 4.04% COLA, with an estimated
hourly rate of $4.06
• Proposes to fund 92%‐95% of the maximum basic
match for Deferred Maintenance
BOARD OF EDUCATION BUDGET STUDY WORKSHOP – MARCH 1, 2007
Highlights of the Governor’s Budget (Cont.)
• Projected lottery revenues are $123.20 per prior year
annual ADA
• Proposition 20 – Instructional materials lottery revenue
is projected to be $24.80 per prior year annual ADA
• Instructional Materials Realignment Program funds are
projected at $65 per prior year CBEDS enrollment
• The 4.04% COLA is applied to 9th Grade CSR, making
the rate $212 per eligible pupil per subject
BOARD OF EDUCATION BUDGET STUDY WORKSHOP – MARCH 1, 2007
Highlights of the Governor’s Budget (Cont.)
SIGNIFICANT LEFT OUTS:
• Does not address declining enrollment, which
impacts half of the districts in the state
• Does not include funding to reach full equalization
• Does not include COLA on federal portion of special
education funds
• Defers state reimbursement for all education
mandates
BOARD OF EDUCATION BUDGET STUDY WORKSHOP – MARCH 1, 2007
Highlights of the Governor’s Budget (Cont.)
CONTROVERSIAL:
• Home to School Funding shift to Public
Transportation Account ($627 million out of
Prop 98)
• CalWorks Child Care shift to Prop 98 (Reduces
Prop 98 funding availability by $269 million)
BOARD OF EDUCATION BUDGET STUDY WORKSHOP – MARCH 1, 2007
Revenue &
Expenditure
Assumptions
BOARD OF EDUCATION BUDGET STUDY WORKSHOP – MARCH 1, 2007
2004‐2005 2005‐2006 2006‐2007 2007‐2008 2008‐2009
REVENUE ACTUALS ACTUALS JANUARY PROJECTED PROJECTED
1. COLA per SSC 2.41% 4.23% 5.92% 4.04% 2.70%
Calculated RL Rate per ADA $ 5,734.35 $ 5,977.35 $ 6,403.27 $ 6,662.27 $ 6,842.27
Enrollment Projection 22,299 22,345 22,406 19,870 19,303
Enrollment Growth/(Decline) 3 46 61 (378) (567)
Loss from Steele Canyon (2,158)
Factor of Enrollment to P2 ADA 93.47% 92.49% 92.68% 92.88% 92.88%
P2 ADA 20,843 20,667 20,765 18,455 17,929
ADA for Funding* 19,190 18,344
2. Categorical COLA per SSC 2.41% 4.23% 5.92% 4.04% 2.70%
3. Special Ed COLA per SSC 2.41% 4.23% 4.10% 2.80% 1.90%
(Bifurcation)
4. Lottery ‐ Regular $ 119.69 $ 126.66 $ 123.25 $ 123.20 $ 123.05
‐ Instructional Materials $ 22.34 $ 28.96 $ 24.75 $ 24.80 $ 24.95
5. Equalization Aid $ 23.11 $ 0.00 $ 71.92 $ 0.00 $ 0.00
6. Deficit Reduction on R. L. 2.143% 0.892% N/A N/A N/A
*Revenue Limit funding is based on declining enrollment formula;
Steele Canyon Revenue Loss: 2007‐2008 75%; 2008‐2009 100%
BOARD OF EDUCATION BUDGET STUDY WORKSHOP – MARCH 1, 2007
2004‐2005 2005‐2006 2006‐2007 2007‐2008 2008‐2009
EXPENDITURES ACTUALS ACTUALS JANUARY PROJECTED PROJECTED
1. Step and Column‐All Groups In Actuals In Actuals $1.6 M $1.5 M $1.5 M
2. Health & Welfare Increases In Actuals In Actuals 11% 12% 12%
$ .9 M $1.0 M $1.1 M
Annual Health Insurance $5,320 $6,243 $6,928 $7,759 $8,690
(Per Employee)
3. Fringe Benefit Rates
STRS State Teachers Retirement 8.25% 8.25% 8.25% 8.25% 8.25%
PERS Public Employees Retirement 9.952% 9.116% 9.124% 9.124% 9.124%
PERS Rate Reduction 3.068% 3.904% 3.896% 3.896% 3.896%
PERS Total 13.020% 13.020% 13.020% 13.020% 13.020%
Social Security 6.20% 6.20% 6.20% 6.20% 6.20%
Medicare 1.45% 1.45% 1.45% 1.45% 1.45%
State Unemployment 0.65% 0.45% 0.05% 0.05% 0.05%
Workerʹs Compensation 2.94% 2.45% 1.73% 1.73% 1.73
Retiree Medical** Lump Sum Lump Sum Lump Sum 1.33% 1.33%
** Converting to % of salary 2007‐2008 and forward
BOARD OF EDUCATION BUDGET STUDY WORKSHOP – MARCH 1, 2007
2004‐2005 2005‐2006 2006‐2007 2007‐2008 2008‐2009
EXPENDITURES (Cont.) ACTUALS ACTUALS JANUARY PROJECTED PROJECTED
4. Salary Increases 0.00% 4.00% 6.89% 0.00% 0.00
5. Utility Increases 4.33% 2.13% 10.48% 6% 6%
$189K $98K $488K $309K $327K
6. Supplies & Oth. Opr. Exp. Inc. 0 0 0 0 0
7. School Formula Allocations
Per student enrollment
Books, Supplies, Equipment $60.00 $60.00 $60.00 $60.00 $60.00
Instructional Materials $20.00 $20.00 $20.00 $20.00 $20.00
Hourly Allocation $50.52 $31.00 $35.10 $37.52 $38.65
8. Categorical Increase 2.41% 4.23% 5.92% 4.04% 2.70%
9. Special Ed Growth 6.57% 7.78% 5.62% 5.00% 5.00%
$1.9 M $2.4 M $1.9 M $1.7 M $1.8 M
10. Projected Unexpended Amount $7.9 M In Base In Base
(other than vacancy savings)
11. Vacancy Savings $1.6 M In Base In Base
BOARD OF EDUCATION BUDGET STUDY WORKSHOP – MARCH 1, 2007
Multi‐Year
Comparison
—General Fund—
BOARD OF EDUCATION BUDGET STUDY WORKSHOP – MARCH 1, 2007
BOARD OF EDUCATION BUDGET STUDY WORKSHOP – MARCH 1, 2007
2004‐2005 2005‐2006 2006‐2007 2007‐2008 2008‐2009
ACTUALS ACTUALS JAN PROJ. PROJECTED PROJECTED
4.04% COLA 2.7% COLA
REVENUE 178,103,271 184,252,608 215,498,037 200,696,645 200,411,859
EXPENDITURES 171,629,265 179,628,173 197,397,771 197,026,048 203,225,922
EXCESS (DEFICIENCY) OF 6,474,006 4,624,435 18,100,266 3,670,597 ‐2,814,063
REVENUES OVER EXPENDI‐
TURES BEFORE OTHER
FINANCING SOURCES AND USES
TRANSFERS IN 31,279 811,520 50,000 50,000 50,000
TRANSFERS OUT 2,356,351 3,948,744 12,988,841 1,200,000 1,300,000
TOTAL OTHER FINANCING/ ‐2,325,072 ‐3,137,224 ‐12,938,841 ‐1,150,000 ‐1,250,000
USES
NET INCREASE (DECREASE)
IN FUND BALANCE 4,148,934 1,487,211 5,161,425 2,520,597 ‐4,064,063
BOARD OF EDUCATION BUDGET STUDY WORKSHOP – MARCH 1, 2007
2004‐2005 2005‐2006 2006‐2007 2007‐2008 2008‐2009
ACTUALS ACTUALS JAN PROJ. PROJECTED PROJECTED
4.04% COLA 2.7% COLA
FUND BALANCE, RESERVES
1) Beginning Balance, July 1 14,796,160 18,945,094 20,432,305 25,593,730 28,114,327
2) Ending Balance, June 30 18,945,094 20,432,305 25,593,730 28,114,327 24,050,264
Components of Fund Balance
State Required 3% 5,219,569 5,507,308 6,311,599 5,946,782 6,080,794
Revolving Cash/Stores/Prepaid 528,971 525,301 521,616 521,616 521,616
ROP Capital Reserve 1,200,000 1,200,000 1,200,000 1,200,000 1,200,000
School Carryover 509,038 420,792
All other 1,044,220 1,065,876
Mandated Costs 127,950 502,085
Insurance Benefits 857,844
Student System 1,100,000 894,258 1,012,774 1,012,774 1,012,774
Budget Flexibility Reserve 4,904,053 7,789,467 3,591,392
Vacancy Savings Reserve 798,822 798,822 798,822
BOARD OF EDUCATION BUDGET STUDY WORKSHOP – MARCH 1, 2007
2004‐2005 2005‐2006 2006‐2007 2007‐2008 2008‐2009
ACTUALS ACTUALS JAN PROJ. PROJECTED PROJECTED
4.04% COLA 2.7% COLA
FUND BALANCE, RESERVES (Cont.)
Legally Restricted (Categoricals) 5,295,496 3,645,437
Food Services Point of Sale 400,000 400,000
MAA 1,099,918 1,639,374
Capital Equipment/Vehicles 1,000,000 538,774 538,774 538,774
Capital Facilities Outlay 1,000,000 1,000,000 1,000,000 1,000,000
ROP Carryover 682,973
Projected Unexpended Amount 7,938,067 7,938,067 7,938,067
Prop H Teacher Moves 68,025 68,025 68,025
GASB 45 Retiree Medical 1,300,000 1,300,000 1,300,000
Funding Reserve
Undesignated 1,562,088 1,948,901 0 0 0
Total Components of Fund Balance 18,945,094 20,432,305 25,593,730 28,114,327 24,050,264
BOARD OF EDUCATION BUDGET STUDY WORKSHOP – MARCH 1, 2007
Unrestricted
Ending Balances
BOARD OF EDUCATION BUDGET STUDY WORKSHOP – MARCH 1, 2007
Unrestricted Ending Balance
25000000
20000000
15000000
10000000
5000000
0
2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09
Projected Projected Projected
Unrestricted Ending Balance Mandated Costs
BOARD OF EDUCATION BUDGET STUDY WORKSHOP – MARCH 1, 2007
Components of Unrestricted Ending Balance
Fiscal Year 2002‐2003 2003‐2004 2004‐2005 2005‐2006 2006‐2007 2007‐2008 2008‐2009
(Est.) (Est.) (Est.)
Economic $5,177,331 $5,156,483 $5,219,569 $5,507,308 $6,311,599 $5,946,782 $6,080,794
Uncertainties (3%)
Revolving Cash 60,000 60,000 60,000 60,000 60,000 60,000 60,000
Stores 216,324 195,493 230,176 198,402 194,717 194,717 194,717
Prepaid Insurance 194,068 216,237 238,795 266,899 266,899 266,899 266,899
Student System 1,922,000 1,100,000 894,258 1,012,774 1,012,774 1,012,774
Flexibility Reserve 4,904,053 7,789,467 3,591,392
Vacancy Savings Reserve 798,822 798,822 798,822
Capital Equipment/ 1,000,000 538,774 538,774 538,774
Vehicle Reserve
Capital Facilities Outlay 1,000,000 1,000,000 1,000,000 1,000,000
Reserve
Components of Unrestricted Ending Balance (Cont.)
Fiscal Year 2002‐2003 2003‐2004 2004‐2005 2005‐2006 2006‐2007 2007‐2008 2008‐2009
(Est.) (Est.) (Est.)
Budget Projected 2,400,000 2,400,000 2,400,000
Unexpended Amount
Prop H Teacher Moves 172,500 68,025 68,025 68,025
GASB 45 Retiree 1,300,000 1,300,000 1,300,000
MAA 1,099,917 1,639,374
Food Services Point 400,000 400,000
of Sale
Proceeds from 85,693
Capital Leases
Long Term Debt 1,000,000
ECREC 117,386
BOARD OF EDUCATION BUDGET STUDY WORKSHOP – MARCH 1, 2007
Components of Unrestricted Ending Balance (Cont.)
Fiscal Year 2002‐2003 2003‐2004 2004‐2005 2005‐2006 2006‐2007 2007‐2008 2008‐2009
(Est.) (Est.) (Est.)
Mandated Costs 506,959 127,950 127,950 502,085
Purchase Orders 147,172 479,676 263,801 146,936 TBD TBD TBD
Insurance Benefits 1,078,278 532,284 857,844
School Carryover 2,018,428 610,298 509,038 420,792 TBD TBD TBD
Program/Dept. 337,641 702,352 705,636 582,926 TBD TBD TBD
Carryover
School Lottery 142,204 92,473 47,170 43,945 TBD TBD TBD
Testing Grants 27,613 119,569
All Other 304,895 134,512
Undesignated 4,419,516 1,108,906 1,562,088 1,948,900
Total $15,805,895 $11,338,664 $12,449,597 $14,903,894 $18,855,663 $21,376,260 $17,312,197
BOARD OF EDUCATION BUDGET STUDY WORKSHOP – MARCH 1, 2007
Cost of 1%
Salary Increase
BOARD OF EDUCATION BUDGET STUDY WORKSHOP – MARCH 1, 2007
2006‐2007 General Fund Cost for 1% by Bargaining Unit
Bargaining Unit Salaries(1) Benefits Cost of 1%
CSEA $272,632 $64,832 $337,464
SEIU 36,499 8,679 45,178
GEA 705,472 90,371 795,843
Confidential 6,833 1,625 8,458
Classified Supervisor 12,285 2,921 15,206
Management 95,849 15,288 111,137
Totals $1,129,570 $183,716 $1,313,286
(1) Salaries are based on projections as of January 31, 2007
Does not include Helix Charter or Adult
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