Vacaville USD California Budget Crisis January 17, 2008
Impact on Vacaville Unified School District
Governor declares California Budget Emergency, 2007-08
2007-08 State Budget shortfall – $3.3 billion 2007-08 Prop 98 current appropriation is $1.4 billion above minimum requirement. Governor proposes that $360 million of the $1.4 billion be cut from current year K-12 appropriations. This would come from unspent categorical funds that would be redirected. However, .5% BRL for current year is advised for District Budget revision. 2nd Interim Report will reflect new Budget assumptions. “Qualified Certification” is possible, due to Multi-Year projection. Action Plan for VUSD – adjust budget plan for 2008-09. Reminder - This is Governor’s proposal, it must be approved by Legislature. Changes can yet occur.
VUSD Informal “Budget Crisis” Projection 2007-08
Assumptions for Projection: .5% Deficit Factor 4.5% Compensation Increase - All contracted employees Fall-out of unspent funds for July thru December, contracted personnel costs and utilities.
1st Interim Unrestricted End of Year Projection Jan 17, 2008 Unrestricted 66,515,465 0 6,502,865 2,155,142 75,173,472 38,149,296 8,337,802 12,966,513 1,955,658 5,017,477 303,496 -1,498,724 65,231,518 9,670,358 7,857,316 Differences
Revenue Limit Federal Revenue Other State Other Local Total Revenue Certificated Salaries Classified Salaries Benefits Books/Supplies Services Capital Outlay Other Outgo Total Expenditures Beginning Fund Balance Ending Fund Balance
66,872,120 0 6,502,865 2,155,142 75,530,127 35,715,458 8,458,573 12,809,701 2,051,423 5,108,579 307,349 -2473279 61,977,804 9,670,358 11,027,404
.5% Deficit Factor
4.5% Increase
Utilities +Spec Ed + Bandwidth
VUSD Informal “Budget Crisis” Projection, 2007-2008 Components of Unrestricted Ending Fund Balance
Unrestricted 1st Interim, 12/13/2007 Stores Revolving Cash Restricted Programs 3% Min State Reserve – Unrestricted Designated Unrestricted Lottery VTA Health Benefit One- time Unrestricted MC Reimbursement Due to “01”, Due from “13” Undesignated Unrestricted Total End Fund Balance 162,202 50,000 0 2,868,065
Projected Unrestricted Ending Balance, 1/16/2008 162,202 50,000 0 2,865,528
516,266 468,812 1,054,520 565,000 5,342,539 11,027,404
614,433 468,812 1,054,520 565,000 2,076,821 7,857,316
California 2008-09 Governor’s Budget Proposal
14.5 billion state deficit projected for June 09. Governor proposes Budget Stabilization Act Governor proposes 10% reduction in funding across all State funded programs and services , including K-12 Education Impact on VUSD
Revenue Limit – eliminate COLA, 4.94%; rollback 2.4%; 6.99% deficit factor State Categoricals – eliminate COLA, 4.94%, rollback 6.5%, except QEIA, CalWORKS stage 2 and 3 childcare Special Education – eliminate COLA, 6.5% rollback Child Nutrition – reduce state reimbursement from $.21 to $.19 per lunch
This is a most severe revenue reduction for VUSD.
VUSD Budget Crisis 2008-2009 Projection
End of Year Projection Jan 17, 2008 Unrestricted 2007-08 Revenue Limit Federal Revenue Other State Other Local Total Revenue Certificated Salaries Classified Salaries Benefits Books/Supplies Services Capital Outlay Other Outgo Total Expenditures Beginning Fund Balance Ending Fund Balance 66,515,465 0 6,502,865 2,155,142 75,173,472 38,149,296 8,337,802 12,966,513 1,955,658 5,017,477 303,496 -1,498,724 65,231,518 9,670,358 7,857,316 End of Year Projection Jan 17, 2008 Unrestricted 2008-09 63,298,466 0 6,502,865 1,678,080 71,479,411 37,943,148 8,411,235 12,966,513 1,700,274 4,786,799 287,496 -1,455,746 64,639,719 7,857,316 2,347,792 Differences
6.99% Deficit Factor; -200 ADA
-10 FTE; Step and Column
VUSD “Budget Crisis” Projection, 2008-2009 Components of Unrestricted Fund Balance
2008-09 Ending Balance Obligations
Stores Revolving Cash Restricted Programs 3% Min State Reserve – Unrestricted Designated Unrestricted Lottery VTA Health Benefit One- time Unrestricted MC Reimbursement Due to “01”, Due from “13” Undesignated Unrestricted Projected End Fund Balance 162,202 50,000 0 2,865,528
Shortfall
(162,202) (50,000) 0 (517,736)
614,433 468,812 1,054,520 565,000 0 2,347,792
(614,433) (468,812) (1,054,520) (565,000)
VUSD Impact, 2008-2009 Governor’s Proposal
All State Categoricals
No COLA, and 6.5% funding rollback from current year. Will cause $215,693 increased encroachment for Special Education CSR, K-3 and 9 and Home-to-School Transportation encroachment increase $378,527
VUSD Budget Crisis Summary
Current 14.5 billion shortfall for 2008-09 can grow. Governor’s proposal is assumed to be “worst scenerio” for planning. VUSD revenue reduction for Unrestricted is 5 to 5.5 million. VUSD revenue for Restricted funds are reduced 6.5%, expenditures to be contracted.
VUSD Budget Crisis Summary
State funding reduction is unprecedented in magnitude. Focus to maintain VUSD organizational stability, and, constancy of program, staffing and services. Budget adjustment of $5 to $5.5 million must include 3 elements: Reserve reduction, Expenditure reduction, Revenue enhancement