Initial Budget Riverside Unified School District June Riverside Unified by qtipp

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									           2008-09
         Initial Budget
      Riverside Unified School District
               June 16, 2008




1 1         Riverside Unified School District
              Riverside Unified School District     June 5, 2006
                                                  June 18, 2007
                  2008-09 Initial Budget


No Progress To-Date on State Budget

     •   Conference Committee actions will set the stage for negotiations
         with the “Big 5”

     •   Budget gap and revenue sources continue to be key debate

45-Day Revision

     •   Revisions available for public review and Board adoption 45 days
         from approval of State Budget

Tonight’s Adoption

     •   Approval of Initial Budget – revenue, expenditures and reserves

     •   Incorporates previously approved budget reductions

     •   Incorporates June 2 action – May Revised Revenue, “automatic”
         expenditure increases, and budget restorations
2                          Riverside Unified School District       June 18, 2007
                       2008-09 Initial Budget
                        May Revised Review

May Revised has positive implications on unrestricted revenue levels

                                                                                       $ in millions

    2008-09 – W/O Budget Adjust                         January           May       Difference
    Revenues                                               $336.2         $343.4           $7.2
    Expenditures                                             357.4         357.4                0
    Other Financing Sources/Uses                               (2.4)        (2.4)               0
    Net Increase/(Decrease) in Funds                         (23.6)        (16.4)            7.2
    Fund Balance (Ending)                                        5.3        12.5             7.2




 “January” data as of Second Period Interim Report
 Amounts represent combined unrestricted and restricted General Fund


3                                     Riverside Unified School District                  June 18, 2007
                  2008-09 Initial Budget
                   May Revised Review

May Revised is not the State Budget – no matter what course we select,
the numbers and details will change
On June 2, the Board of Education approved the “Restore Some, Save
Some” option with a three step approach on utilizing the $7.2 million
revenue improvement over January
    •   Allocate $1.3 million for recurring unfunded compensation
        settlement costs beginning in 2008-09
    •   Allocate $3.0 million to restore previously approved budget
        reductions that are a high priority for restoration
    •   Allocate $2.9 million for savings as mitigation to the unknown risks
        until a State Budget is adopted – designated in fund balance




4                           Riverside Unified School District         June 18, 2007
            2008-09 Initial Budget
           State Budget Assumptions
Revenue Limits
  • Cost of Living Adjustment (COLA) 5.66% - $329 per-ADA
  • Deficit applied at 5.357% (equivalent to 5.66% COLA)
  • Growth ADA funded

Categoricals
  • COLA @ 5.66% (state programs)
  • Growth Funding at state average – which is a negative .52%
  • Across-the-board cut of 10.9% (6.5% reduction from 07-08 levels)
  • Supplementary Instruction (hourly programs) @ $4.08, but with
    varying deficits ranging from 0% for CAHSEE to 43% for Core

Mandate Reimbursements
 • No funding, no audit resolution
 • Court decision on one case due any day
5                      Riverside Unified School District    June 18, 2007
             2008-09 Initial Budget
            State Budget Assumptions
Special Education
  • No COLA, no across-the-board cut = “level funding”
  • Growth funding at 07-08 levels

Adult Education and Child Development
 • COLA @ 5.66%
 • Deficit applied at 5.36% (equivalent to 5.66% COLA)
 • Growth funding at 2.5% statutory rate (Ad Ed) and actual (Child Dev)
 • Across-the-board cut of 10.9%

Deferred Maintenance and Local Flexibility
  • No Deferred Maintenance funding and no local match
  • Routine Restricted Maintenance @ 2.5% instead of 3.0% (risk)
  • No other local flexibility used at this time, but needed to mitigate
    some impacts
6                       Riverside Unified School District        June 18, 2007
                2008-09 Initial Budget
                Enrollment Assumptions

Enrollment (w/ NPS)

     •   PreSchool                                         704
     •   Elementary                                     28,954
     •   Secondary                                      14,588
     •   Total                                          44,246

Enrollment Growth

     •   Elementary                                            109
     •   Secondary                                             100
     •   Total                                                 209
                                                                         With
P2 ADA                                                        Base   ADA Initiative

     •   Revenue Limit Base                             41,168          41,243
     •   ADA Growth                                        157             232

 7                        Riverside Unified School District                  June 18, 2007
                 2008-09 Initial Budget
                 Revenue Limit Sources

Revenue Limit
                                                         Statutory       Funded
     •   2007-08 Base Revenue Limit                     $5,790.34       $5,790.34

     •   2008-09 COLA                                          329.00        0.00

     •   2008-09 Base Revenue Limit                     $6,119.34       $5,790.34


Total Revenue Limit Funding

     •   Local Property Taxes                       $55,275,466           23.2%

     •   State Aid                                  183,355,685           76.8%

     •   Total Revenue Limit Funding              $238,631,151           100.0%


 8                         Riverside Unified School District                June 18, 2007
                 2008-09 Initial Budget
                     New Revenue

Initial Budget includes the following new/changed revenue:

     •   Revenue Limits
          – ADA growth of 232 ADA = $1.34
          – 232 ADA = 157 growth + 75 attendance rate improvement

     •   Special Education
          - ADA growth = $0.42

     •   ADA Initiative – Attend for Success
          – Maintains (not new) .5% or 204 ADA from 07-08 P2 = $1.20

     •   Categorical Programs (state)
          – Decreases of 6.5% from 07-08 revenue levels
          – Revenue budgeted at varying levels of 65% - 95%

                                                               $ in Millions

 9                         Riverside Unified School District    June 18, 2007
                  2008-09 Initial Budget
                    New Expenditures

Initial Budget includes the following new expenditures:

      •   Growth Positions Due to Student Growth – $0.94
           – 10.0 Additional Teacher FTEs – $0.67
           – 4.0 Additional Sp Ed Teachers - $0.27

      •   Compensation Related - $7.61
           – Step and Column - $3.74
           – H&W – Second Half of 2008 Plan Year - $0.19
           – H&W – First Half of 2009 Plan Year - $1.02
           – 1% July 1 Compensation Adjustment - $2.22
           – SLP and Nurse Schedules - $0.44



                                                                $ in Millions

 10                         Riverside Unified School District    June 18, 2007
                   2008-09 Initial Budget
                     New Expenditures

Initial Budget includes the following new expenditures:

      •   New Facilities - $0.11
           – Frank A. Miller MS Startup Staffing - $0.11

      •   Other - $0.93
           – Transportation - $0.39
           – Utilities (Water and Electric Rates, Hawthorne ES) - $0.30
           – Fuel - $0.24

      •   Debit Service - $.68
           – Escalating to $2.4 in 2009-10 due to lower mitigation fees



                                                                  $ in Millions

 11                         Riverside Unified School District      June 18, 2007
                          2008-09 Initial Budget
                           Budget Reduction Plan

Initial Budget includes the following budget reductions from 2007-08 levels:

                                                     Recurring      One-Time
      •     Approved Reductions                          $15.08       $9.06


      •     Approved Restorations (less)                     4.13         .02


      •     Net 2008-09 Reductions                       $10.95       $9.04




          Details attached.                                            $ in Millions

 12                            Riverside Unified School District        June 18, 2007
                           2008-09 Initial Budget
                           General Fund Revenues

                                                                     Lottery
                                 State Categorical                 1.79% / $5.9      Interest Income
                                   17.82% / $59.1
                                                                                      0.30% / $1.0

     Federal Categorical
                                                                                        Other Local
       6.69% / $22.2                                                                    1.01% / $3.3




                            Revenue Limit                                 Unrestricted $250.5        75.58%
                           72.39% / $240.0                                Restricted   $ 80.9        24.42%
                                                                          Total        $ 331.4      100.00%


13                                    Riverside Unified School District                          June 18, 2007
                       2008-09 Initial Budget
                      General Fund Expenditures
                                             Books & Supplies
                                               4.09% / $13.8        Contract & Operating Exp
           Employee Benefits                                           11.39% / $38.3
                                                                                           Capital Outlay
             20.34% / $68.3                                                                 .14% / $.5

                                                                                               Other Outgo
                                                                                                .04% / $.1




Classified Salaries
 13.42% / $45.1




                                                                            Certificated Salaries
                                                                              50.58% / $170.0
 Personnel     $283.4       84.34%
 Non-Personnel $ 52.6       15.66%
 Total         $336.0      100.00%

 14                                  Riverside Unified School District                              June 18, 2007
               2008-09 Initial Budget
                General Fund Balance
 Beginning Fund Balance (estimate)                    $45,390,326
 Projected Revenues                                   331,477,482
 Projected Expenditures                              (335,517,964)
 Net Other Sources/(Uses)                                     (428,147)
 Ending Fund Balance                                  $40,921,697


 Ending Fund Balance Designations
     Stores and Revolving Cash                                $650,000
     Designated Economic Uncertainties                    6,748,951       2.00%
     Categorical & Schools Balance                      17,993,270
     Other Designations                                 15,529,476        See Detail
     Total Ending Fund Balance                        $40,921,697
15                        Riverside Unified School District                    June 18, 2007
                2008-09 Initial Budget
                 General Fund Balance

 Other Designations (Detail)
      Trash Truck Replacement                                    $60,000
      Mandated Cost Contingency                                 4,612,939
      May Revised Pending                                       2,900,000
      2007-08 Estimated Freeze Savings                          7,956,537
      Total Other Designations                              $15,529,476

 The following funds remain in 2007-08 estimated actual expenditures
 and have not been reclassified to ending fund balance but will be part
 of the final ending fund balance:
     1% Compensation Allowance                                  $2,100,000
     2% CSEA Compensation Allowance                              $825,070
     Total Estimated Additional Fund Balance                    $2,925,070

16                          Riverside Unified School District                June 18, 2007
                 2008-09 Initial Budget
                 Deficit Spending Details
 Unrestricted General Fund Deficit Spending is $4.5 million
     • 2008-09 Budget Reduction Plan includes use of one-time reserves
     • Such use is reflected as deficit spending in the year used
           – $2,893,997 – AB1754 (2004)
           – $1,130,860 - SB18x1 (2004)
     • Remaining $0.5 million are miscellaneous timing matters that will be
       resolved as the year progresses




17                          Riverside Unified School District       June 18, 2007
                2008-09 Initial Budget
                     Cash Flow
                                                                  Monthly Cash Balance



         $70.0
         $60.0
         $50.0
         $40.0
         $30.0
         $20.0
         $10.0
           $0.0
                     Jul-08   Sep-08     Nov-08      Jan-09       Mar-09   May-09


                              Receipts         Disbursements
     Dollars in Millions                                                     General Fund

18                            Riverside Unified School District                          June 18, 2007
                 2008-09 Initial Budget
                  Capital Facilities Fund

The Capital Facilities Fund is the only non-General Fund where revenue
reductions are impacting the General Fund
     •   Fees are anticipated to decline 2/3 to $1.5 million in 2008-09
         − A 76% decline from 2005-06
     •   Funds historically used for:
         – Debt Service on Relocatable Buildings, Nutrition Services
           Building, and Energy Retrofit Programs
         – Student Housing for growth
     •   2008-09 funds will be used solely for:
         − Student Housing for growth and demographic changes
     •   Debt Service moved to General Fund
         − $680,000 in 2008-09
         − $2,388,679 in 2009-10
         − $2,390,431 in 2010-11
19                         Riverside Unified School District       June 18, 2007
                 2008-09 Initial Budget
                   Insurance Reserves
Self Funded Insurance Reserves

     •   Insurance reserves are adequate based on current actuarial
         requirements.
     •   Although there is not a current GASB 45 contribution from the
         General Fund, the District is ahead of the funding requirements.
     •   Estimates as of June 30, 2009 are as follows:
                                          Requirement           Reserve
     Workers’ Compensation                 $2,661,661          $2,661,661
     Health and Welfare                         900,000           900,000
     Property and Liability                  1,000,000          1,000,000
     H&W Medical IBNR                        2,666,168          2,666,168
     GASB 45 OPEB                        $40,377,730          $25,903,912

20                        Riverside Unified School District            June 18, 2007
                   2008-09 Initial Budget
                    Future Considerations

     •   Final State Budget
               – What will be the final Proposition 98 funding levels?
               – What will be the details of the funding?

     •   Declining Rate of Growth – District and State

     •   Cash Management impacts from the State

     •   Future School Openings

     •   STRS Rate Increases
             – ½ of 1% per year increase up to 13% beginning FY2009

     •   Categorical Program resources

     •   Prepare for a summer of uncertainty

     •   Expect changes


21                           Riverside Unified School District           June 18, 2007

								
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