Second Interim Budget Report for 2010/2011

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Second Interim Budget Report for 2010/2011 Powered By Docstoc
					Gilroy Unified School District
 Second Interim Report and
    Multi-Year Projection


   Presented to the Board of Trustees
            March 17, 2011
                 Agenda
   Current Year Budget
   Cash Flow and Deferrals
   Multi-Year Projection Assumptions
   Second Interim Certification
   Next Steps
           Current Year Budget
           Changes in Revenue
   $160,000 in additional mandated cost revenues
   $124,000 in prior-year revenue limit adjustments
   $464,000 in State Fiscal Stabilization Funds
   $526,000 in local grants (Packard Foundation,
    Microsoft Voucher Program, College Access
    Foundation)
            Current Year Budget
          Changes in Expenditures
   Increase of $208,000 in services and
    contracts
   Changes in contributions
                                    Contributions
                                        2010-11 First       2010-11 First
                                           Interim            Interim        Variance
Mount Madonna Continuation            $        342,147    $        371,692 $      (29,545)
Regional Occupational Program (ROP)   $          62,806   $         38,184 $       24,622
Rountine Repair & Maintenance         $      1,907,115    $      1,899,537 $        7,578
Special Education                     $      3,987,785    $      4,147,666 $     (159,881)
Transportation: Home to School        $        472,487    $        382,044 $       90,443
Transportation: Special Education     $        876,802    $        894,625 $      (17,823)
   Current Year General Fund
   Unrestricted Expenditures
                         Services
                           9%

 Books & Supplies
       3%
                                           Certificated Salaries
                                                    49%

 Contributions
     12%



Employee Benefits
      17%
                                      Contributions are the third
                                    largest expenditure category!!
   Classified Salaries
          10%
      Current Year General Fund
Restricted & Unrestricted Expenditures
                  Capital Outlay
                                   Other Outgo   Other Financing
                       0%
                                       2%              0%
             Services
              12%



      Books & Supplies                                                 Certificated Salaries
            5%                                                                  48%




 Employee Benefits
       18%

                                                               Salaries & Benefits = 81%

         Classified Salaries
                15%
Cash Flow Concepts
   Cash needs to be available at the time an
    obligation is due
   Cash is volatile – it changes daily!
   It is possible to maintain the mandated level
    of economic reserves, yet be out of cash
   Agencies with prudent reserves are having to
    actively manage cash to get through the
    negative cash months
Historical June Cash Balance
        General Fund
$6,000,000

$5,000,000

$4,000,000

$3,000,000

$2,000,000

$1,000,000

         $-
                                                                  9



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                           6



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              5




                                                               -0



                                                                            -1



                                                                                         -1
                        -0



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           -0




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                                               07
                     05
        04




                                                                      20



                                                                                   20
                               20



                                            20



                                                         20
     20



                  20
        2010-11 General Fund
End of Month Projected Cash Balance
$17,500,000
$15,000,000
$12,500,000
$10,000,000
 $7,500,000
 $5,000,000
 $2,500,000
         $-
$(2,500,000)
$(5,000,000)
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                                  N
Managing Cash
   Understand the principles of cash transactions and
    accounting treatment
   Understand and verify cash reconciliations
   Prepare monthly cash flow updates
   Implement a spending/hiring freeze
   Delay replacing positions
   Accelerate collection of accounts receivable
   Extend vendor payments
   Prepare for borrowing (if necessary)
      Multi-Year Projections
          Assumptions
                                  2010-2011      2011-2012      2012-13
Revenue Limit COLA                      -0.39%         1.70%         1.90%
Deficit Factor                        17.963%        19.608%       19.608%
Unrestricted Lottery per ADA           $112.50        $111.00       $110.00
Restricted Lottery per ADA              $17.50         $17.50        $17.20

Enrollment - GUSD                      11,109         11,109        11,165

ADA - GUSD                           10,530.00      10,499.00     10,552.00
ADA - County Office of Ed                62.00          62.00         62.00
Total ADA                            10,592.00      10,561.00     10,614.00

Base Revenue Limit
GUSD Revenue Limit/ADA                 $6,344         $6,451        $6,568
Revenue Limit/ADA After deficit        $5,205         $4,856        $4,950
                  Revenue Limit Funding
                                                                                           1st Interim
                                                                                           2nd Interim
                  $5,600
Funding Per ADA




                                                                          $5,395
                  $5,400    $5,205
                                       $5,294

                  $5,200
                            $5,205              T a x e xt e nt io ns a re no t

                  $5,000                                                          $4,950

                  $4,800                 $4,856
                  $4,600
                  $4,400
                           2010-11     2011-12   2012-13
                                     Fiscal Year
ADA Projection for Revenue Limit
12,000


11,500


11,000                                   10,794
                           10,688
         10,592
                                                       1st Interim
10,500            10,592        10,561        10,613   2nd Interim



10,000
                                                       A 1% decrease
                                                         in revenue
 9,500
                                                           limit is
                                                       approximately
 9,000
                                                        $513,000 for
         2010-11           2011-12        2012-13
                                                           2011-12
Base Revenue Limit Funding
                 $7,000

                                                                                                    $6,568
                                                                                      $6,451
                                                       $6,369           $6,344
                 $6,500
                                         $6,107                                                               Loss of Cost-
                                                                                                                of-Living
Dollar per ADA




                                                                                                               Adjustm ent
                 $6,000                                                                                          (COLA)

                          $5,778

                 $5,500
                                          $5,628                                                               Loss of
                                                                                                               baseline
                                                                                                     $5,280     funds

                 $5,000                                                 $5,205       $5,186

                                                        $4,947                                      $4,950
                                                                                     $4,856
                 $4,500
                               2007-08      2008-09   2009-10           2010-11     2011-12         2012-13
                                                                 Year
                           Base Revenue Limit                           Funded Base Revenue Limit
                           Flat Funding                                 If Tax Extentions Fail
           First Interim
     MYP Revenue Assumptions

                                       2010-11      2011-12      2012-13
Enrollment                          0.85% Growth 0.00% Growth 0.50% Growth
Enrollment to ADA                         94.70%        94.50%       94.50%
Charter School loss of ADA          not applicable     Included     included
Cost of Living Adjustment (COLA)           -0.39%        1.67%        1.80%
Deficit Factor                           17.963%      19.608%      19.608%
Mandated Cost Funding                   $475,000            $0           $0
Additional federal stimulus funds     $2,464,000   not included not included
K-3 Class Size Reduction Funding      $2,130,000   $1,650,000   $1,648,000
Tier 3 Categorical Fund Sweeps           included      included     included
          First Interim
   MYP Expenditure Assumptions
                                      2010-11      2011-12       2012-13
Step & Column                           $934,000      $934,000      $934,000
Enrollment Growth Teachers                    $0            $0      $122,300
Carryover Funds                       $3,100,000            $0            $0
AB3632 (mental health) expenditures           $0      $336,000      $336,000
Reduction in SELPA Costs                      $0     -$493,000     -$493,000




          Also included are the Board approved budget reduction items
                     Budget Recommendations if the Tax
                             Extensions Pass
                            Target = $2.8 Million
                                                                                                       Full Time   Requires    Ongoing or
                                                                                                                                                         Cumulative
                Description                                      Notes/Action                          Equivalent Negotiations One-time     Savings
                                                                                                                                                          Savings
                                                                                                         (FTE)        Y/N       Savings
Implement spending freeze in current year   Estimate based on prior year savings                          0.00         N        One-time  $    100,000 $      100,000
Sweep 2010-11 Adult Education Funds         Utilize Tier III flexibility for General Fund activities      0.00         N        One-time  $     90,000 $      190,000
Request refund from SCCSIG Safety Credit    Funds set-aside for reimbursement of safety
                                                                                                          0.00        N         One-time      $     75,000 $      265,000
Program                                     related items. Current balance available is
                                                                                                                                           One-time Savings $     265,000
Implement Furlough Days                     Three furlough days for all groups                          All Staff     Y         Ongoing       $    918,000 $     1,183,000
                                            Reduce Site and Department supply and contract
Reduce Site and Department Budgets                                                                        0.00        N         Ongoing       $    125,000 $     1,308,000
                                            budgets by 5%
Opt-out of participating in SCCSIG Safety   District is currently contributing 5% of workers
                                                                                                          0.00        N         Ongoing       $     35,000 $     1,343,000
Credit Program beginning 2011-2012          compensation premiums or $50,000
Offer Supplemental Early Retirement Plan
                                            Estimate based on prior year savings.                       10.00 +       Y         Ongoing       $    100,000 $     1,443,000
(SERP)
District Office                             Reorganization and Downsizing                                TBD          N         Ongoing       $    500,000   $   1,943,000
Adult Education                             Utilize Tier III flexibility for General Fund activities     0.00         N         Ongoing       $     90,000   $   2,033,000
Secondary School Administrative Positions   Reduce staffing                                              2.00         N         Ongoing       $    240,000   $   2,273,000
Instructional Materials Funding (IMF)       Utilize Tier III flexibility for General Fund activities     0.00         N         Ongoing       $    150,000   $   2,423,000
Routine, Repair & Maintenance               Reduce contracted services                                   0.00         N         Ongoing       $    100,000   $   2,523,000
Home to School Transportation               Reduction in program.                                        TBD          N         Ongoing       $    250,000   $   2,773,000
                                            Reduce 0.40 FTE. Staffing to be 1.0 FTE at GHS,
Reduce Independent Study Program                                                                          0.40        Y         Ongoing       $     26,000 $     2,799,000
                                            CHS and Mt. Madonna for 2011-2012
                    Budget Recommendations if the Tax
                      Extensions Are Not Approved
                           Target = $6.7 Million
                                                                                                         Full Time        Requires Ongoing or
                                                                                                                                                                          Expected     Cumulative
                Description                                        Notes/Action                          Equivalent      Negotiations One-time            Amount
                                                                                                                                                                          Savings       Savings
                                                                                                           (FTE)             Y/N      Savings
Mt. Madonna                                  Increase class sizes to 25:1                                   2.00              Y       Ongoing         $     124,461   $      124,461   $ 2,923,461
Grades K-3 Class Size Increase               Increase class sizes to 30:1                                  21.00              Y       Ongoing         $     970,000   $      873,000   $ 3,796,461
Grades 4-5 Class Size Increase               Increase class sizes to 33:1                                   1.60              Y       Ongoing         $     104,000   $       93,600   $ 3,890,061
Grades 4-5 Class Size Increase               Increase class sizes to 34:1                                   3.10              Y       Ongoing         $     201,500   $      181,350
Grades 4-5 Class Size Increase               Increase class sizes to 35:1                                   4.50              Y       Ongoing         $     292,500   $      263,250
Grades 6-8 Class Size Increase               Increase class sizes to 34:1                                   5.30              Y       Ongoing         $     344,500   $      310,050
Grades 6-8 Class Size Increase               Increase class sizes to 35:1                                   7.70              Y       Ongoing         $     500,500   $      450,450   $ 4,340,511
Grades 6-8 Class Size Increase               Increase class sizes to 36:1                                  10.00              Y       Ongoing         $     650,000   $      585,000

Grades 9-12 Class Size Increase            Increase class sizes to 36:1                                         5.50          Y         Ongoing $          357,500 $        321,750
Grades 9-12 Class Size Increase            Increase class sizes to 37:1                                         8.10          Y         Ongoing $          526,500 $        473,850 $ 4,814,361
Grades 9-12 Class Size Increase            Increase class sizes to 38:1                                         10.50         Y         Ongoing $          682,500 $        614,250
Freeze step, column, and longevity         No step, column or longevity increases                             All Staff       Y         One-time $         934,000 $        934,000
Elementary Music Prep                      Eliminate General Fund Support for music prep                        1.60          Y         Ongoing $          126,929 $        126,929
Elementary PE Prep                         Eliminate General Fund Support for PE prep                           2.00          Y         Ongoing $          185,351 $        185,351
                                           Reduce Extended Work Year for all certificated staff to         23 employees
Reduce Extended Work Year                                                                                                     Y         Ongoing $          110,900 $        110,900
                                           the teacher calendar                                               effected
Adult Education                            Utilize Tier III flexibility for General Fund activities             0.00          N         Ongoing $          160,000 $        160,000
Implement Furlough Days                    Reduce number of workdays
                                                                                                    1 Days     All Staff      Y         Ongoing $          306,000 $        306,000
                                                                                                    2 Days     All Staff      Y         Ongoing $          612,000 $        612,000
                                                                                                    3 Days     All Staff      Y         Ongoing $          918,000 $        918,000
                                                                                                    4 Days     All Staff      Y         Ongoing $ 1,224,000 $ 1,224,000
                                                                                                    5 Days     All Staff      Y         Ongoing $ 1,530,000 $ 1,530,000 $ 6,344,361
Across-the-Board Salary Reduction          Reduce annual salaries of all staff by a percentage.
                                            $                                                  62,380,000
                                                                                                       1%      All Staff      Y         Ongoing $          623,800 $        623,800
                                                                                                       2%      All Staff      Y         Ongoing $ 1,247,600 $ 1,247,600
                                                                                                       3%      All Staff      Y         Ongoing $ 1,871,400 $ 1,871,400
                                                                                                       4%      All Staff      Y         Ongoing $ 2,495,200 $ 2,495,200
                                                                                                       5%      All Staff      Y         Ongoing $ 3,119,000 $ 3,119,000
Note: The “Expected Savings” differs from the “Amount” for the class size changes to reflect an expectation that only about 90% of the calculated potential savings will be realized due to the fact
that class sizes must be balanced and cannot all be exactly at the larger class sizes proposed.

                         **Grey shaded items are Board approved reductions**
                      **Cumulative budget reductions are $355,639 short of target**
                   General Fund Unrestricted
                        Revenue Limit


                                $53,793,928              $53,937,628
54,000,000



53,000,000

             $51,760,142
52,000,000
                                                                                                    $51,270,055


51,000,000
                                                                                $50,048,752

50,000,000



49,000,000



48,000,000
             2010-11 Adopted   2010-11 First Interim   2010-11 Second Interim   2011-12 Projected   2012-13 Projected
             General Fund Restricted Revenues



34,000,000
                                                              $31,043,724
32,000,000
                                     $29,957,108

30,000,000


28,000,000
                 $25,233,168                                                                            $25,299,900
                                                                                    $24,920,700
26,000,000


24,000,000


22,000,000


20,000,000
             2010-11 Adopted   2010-11 First Interim   2010-11 Second Interim   2011-12 Projected   2012-13 Projected
             Total General Fund Unrestricted
                    Salary & Benefits

52,000,000

                 $51,243,820          $51,225,779

                                                               $50,790,790
51,000,000




50,000,000



                                                                                                         $48,741,749
49,000,000


                                                                                     $47,856,849
48,000,000




47,000,000




46,000,000
              2010-11 Adopted   2010-11 First Interim   2010-11 Second Interim   2011-12 Projected   2012-13 Projected
       Overall Revenue and
          Expenditures

$90,000,000

$87,000,000

$84,000,000
                                                Revenues
$81,000,000                                     Expenditures
$78,000,000

$75,000,000
              2010-11   2011-12   2012-13
                                  Deficit spending is occurring
                                         in all three year!
               Unrestricted & Restricted
                Ending Fund Balance
                                   Federal Stimulus funds!!
12,000,000
                                $10,719,975


10,000,000


 8,000,000
                                                $6,528,953

 6,000,000      $4,982,479
                                                                                  $4,603,633
                                                                 $4,107,385

 4,000,000
                                                                                                 $2,134,338

 2,000,000                                                                                                      $332,644



        0
             2007-08 Audited 2008-09 Audited 2009-10 Audited   2010-11 First   2010-11 Second    2011-12       2012-13
                 Actuals         Actuals         Actuals          Interim          Interim      Projected     Projected
Second Interim Certification
   Ending Fund Projections at second interim are as follows:
                                         2010-11        2011-12         2012-13
       Total Available Reserves         $4,468,634     $1,999,336      $197,643
       Reserve Percentage                 5.00%          2.51%           0.25%
       Unrestricted Deficit Spending   ($1,365,682)   ($2,469,297)   ($1,801,694)


   Based on continued deficit spending and not meeting the
    required reserve for 2011-12 and 2012-13 staff is
    recommending a qualified certification
          Qualified Certification: shall be assigned for those
           Local Education Agencies (LEAs) that MAY NOT
           MEET their financial obligations for the current or
           two subsequent years.
           Downside Risks in
          Multi-Year Projections
   State Budget is predicated upon voter approval of
    a five year extension of the temporary tax
    increases
       Will there even be a June 2011 Special Election?
   Additional cash deferrals
       Ability of State to sell Revenue Anticipation Notes
        (RANs) given bond rating
       As the District’s reserves are expended, the cash
        balance decreases as well
   Ability of State to fund the positive COLA (1.80%
    in 2012-13)
   Enrollment Projections
                   Next Steps
   March 15th – District submits Budget Reduction Plan to
    Santa Clara County Office of Education
   May – Governor’s May Budget Proposal Released
   May 19th – Third Interim Budget Report presented to the
    Board and submitted to Santa Clara County Office of
    Education
   June 7th ?? – California Special Election seeking voter
    approval to extend temporary tax increases for five years
   June 16th – Adopted Budget for 2011-12 presented to
    the Board of Education

				
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