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2013-14 Budget. Talk about being stuck!. We will begin the 2013-14 year with one funding method and end with another. We are “stuck” in the middle. This budget is based on the now “old” method of Revenue Limits.
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Talk about being stuck! • We will begin the 2013-14 year with one funding method and end with another. We are “stuck” in the middle.
This budget is based on the now “old” method of Revenue Limits. • The legislature has just passed a new funding distribution method called the “Local Control Funding Formula” or LCFF. • Exactly what that means for us is unclear but it should mean more money for the District.
Basis Budget Assumptions 2013-14 • All budget decisions are made after answering the question: “How does this impact student achievement?” • The budget must maintain fiscal solvency. • Budget decisions should reflect sustaining programs and services of the long term.
Basis Budget Assumptions - State 2013-14 • The deficit factor will be 22.272% • This means that we get only about $.77 for every dollar that we are supposed to receive. • TCOE is requiring the District to budget as if the LCFF did not pass. • This is because we do not have any of the details on how LCFF will work. • The State will not be able to reprogram its financial software for 6 months.
Basic Budget Assumptions - continued • K-3 Class Size Reduction and QEIA continue • They total over $3,000,000. K-3 CSR will become part of the LCFF. • Home-to –School Transportation funds will continue at a reduced rate • The sweep of many categorical programs continues for now (they will become part of the LCFF). • The budget is based on current year ADA
Revenues Most of the District's General Fund revenue is generated from the District's Revenue Limit, which yields funds based on a state-determined dollar amount multiplied by the average number of students who are in attendance throughout the school year. • Other Local • Other State • Revenue Limit • Federal
Expenditures Most of the expenditures of the District are committed to salaries and benefits for employees of the District. It takes people to teach students and in Cutler-Orosi Joint Unified School District, 84% of the District's budgeted expenditures are for employees. Books and Supplies
Total Ending Balance Included within the projected Net Ending Balance is a "Reserve for Economic Uncertainties," which is a minimum balance that the State requires the District to maintain. The State's minimum "Reserve for Economic Uncertainties" for Cutler-Orosi Joint Unified School District is 3% of the total General Fund expenditures.
Cash Flow A TRAN is a Tax Revenue Anticipation Note or in other words, a loan. In 2011-12, the District needed a TRAN of $3,440,000 by February. It is projected that the District will not need a TRAN in 2013-14.
The 2013-14 Budget We are breaking new ground with the LCFF. We believe that we will benefit from the new formula but not all of the details are out. What we think we know is that:
LCFF The LCFF is made from: • A “base” amount for all schools • An “add on” for an unduplicated number of students who are: • In poverty (using Free/Reduced Lunch counts) • English Language Learners There are many rules yet to be written. The LCFF is projected to take 8 years to fully implement.
The 2013-14 Budget Keep your eye on Sacramento. Robin Hood says that he is going to take from the rich and give to the poor. We shall see. The fight for LCFF dollars is now taking place.
The 2012-13 Budget – Final Remarks One thing is for absolutely certain: • There will be changes to the budget. Enrollment, program regulations, revenue – both state and federal, operating costs and more, will all change. The biggest change will be moving to LCFF. We will keep you updated.
