1 / 29

2008/09 FINANCIAL PLANNING

2008/09 FINANCIAL PLANNING. Board Meeting January 13, 2009. Prepared by: Douglas Barge. Y:Business Services/Budget/2009-10/Adopted/Reductions/Strategies for Moving Forward B01-13-09. Executive Summary.

nairi
Download Presentation

2008/09 FINANCIAL PLANNING

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. 2008/09 FINANCIAL PLANNING Board Meeting January 13, 2009 Prepared by: Douglas Barge Y:\Business Services/Budget/2009-10/Adopted/Reductions/Strategies for Moving Forward B01-13-09

  2. Executive Summary • On December 31, 2008, the Governor took the unusual step of introducing an 18 month budget plan for the Legislature to consider • His proposal has considerable negative impact on our District both this year and next • This year the problem will start with “Cash” • Next year the problem will be a budget shortfall of $19,670,660 • Work has begun on reducing expenses this year and next i

  3. Table of Contents DESCRIPTION PAGE # A1 • Introduction • Governor’s Budget Proposals • 2008/09 State Midyear Reductions • Modeling the Impact of Governors 2009/10 Budget Plans • District Budget Reduction Planning • Next Steps for Moving to Phase III • Appendix B1 – B3 C1 D1 – D8 E1 F1 ii

  4. Lodi Unified School District Introduction Status • It’s worse • Still declining • Done • Good, if we had cash • Now it’s time to stop • Bad news, we were right In November • We reported that the economy was in poor shape • Student enrollments were significantly below projections • The Board also asked for additional studies and reporting • Our cash investments were reported to be in good hands • We talked about the need to slow down expenditures • The State was supposed to be working on fixing their budget problem. We predicted they would not be successful A1

  5. $1.1B Owed 2002/03 & 2003/04 Fiscal Years Prop 98 Funding Governor ProposesRe-Benching Prop 98 Funding $1.1 B of expenses 2008/09 Fiscal Year 2009-10 Fiscal Year Prop 98 Funding After Redesign. Prop 98 Funding Currently *Net result is a permanent loss in on-going funding B1

  6. Governor’s Budget Proposal • Even more deferred cash payments • The State has no time to generate cash this year • There are problems with Revenue Anticipation Warrants (RAWs) – I.O.U.s B2

  7. Cash Flow - Doomsday B3 State Controller John Chiang – 12/22/08, “State will run out of cash in less than 70 days”

  8. 2008/09State Mid-Year Reductions C

  9. A. Structural Balancing (Prior) ($2,167,436) $2,167,436 ($9,876,432) $3,503,883 ($6,372,549) D. Total Overall 2008/09 Balancing One- Time On- Going Description Total B. Funding Sources/Uses (*) ($6,865,112) (8,201,559) 1,336,447 C. Funding Uses (*) 492,563 492,563 * See the Appendix for further details. C1

  10. Modeling the Impact of Governors 2009/10 Budget Plans D

  11. 2009/10 Enrollment Projections 2008/09 CBEDS (*) PROJECTED STUDENTS GROWTH ADA A. PROGRAMS 15,354 1. Regular K-6 15,122 (232) (220) 2. Regular 7-8 4,262 4,235 (27) (25) 7,961 7,787 (174) (160) 3. Regular 9-12 4. All Other Programs 2,071 2,071 5. Serna Charter School 297 297 6. Total K-12 Increases 29,945 29,512 (433) (405) * Enrollment as of October 2, 2008 D1

  12. 1. Teacher Staffing (19.15) ($1,538,993) 2. Special Ed. Staffing (Cert. & Class.) (5.66) (315,303) 3. Custodial Support & Bus Drivers (115,953) (2.47) 4. Site Clerical, Noon Duty & Campus Supv. (1.44) (51,220) 6. Total Growth Expenses ($2,050,768) (28.72) 5. Per-Pupil Allocations (29,299) Summary of Growth Expenses(There is declining enrollment this year) DESCRIPTION F.T.E BUDGET D2

  13. 1. Projected Step & Column Costs 2. Health & Welfare - Retiree $2,600,000 194,403 3. Utilities & Fuel 595,162 8. Re-Instate K-6 Teacher Reserve 7. Lockeford K-8 Conversion 458,328 218,378 3.00 6.50 4. Worker’s Compensation - .25% Increase 311,629 6. Supply Inflation – School Sites 161,305 5. Technology Maint. Agree. & New Systems 200,000 9. Re-Instate 7-12 Teacher Reserve 10. Routine Rest. Maintenance – 3% 4.00 245,133 124,007 11. Total On-Going Expenses $5,108,345 13.50 Summary of On-Going Expenses Descriptions F.T.E BUDGET D3

  14. 1. Construction – Replenish AB87 2. New Student Information System 3. General Reserve Requirement (3%) $1,000,000 200,000 124,007 -0- 4. Total One-Time Expenses $1,324,007 Summary of One-Time Expenses Descriptions F.T.E BUDGET D4

  15. C. One-Time Costs 1,324,007 A. Increased Mandatory Costs $5,108,345 13.50 (28.72) B. Growth Costs (2,050,768) D.Total Estimated Uses (15.22) $4,381,584 Summary of Increased Costs Description F.T.E Budget D5

  16. A. Net Growth Income ($2,217,699) B. Special Education Growth (220,198) F. Unrestricted Ending Fund Balance (6,372,549) G.Total Estimated New Income ($9,334,626) Estimate of Growth Income ( There is declining enrollment this year) Description Budget C. Class-Size Reduction – Grades K-3 (175,175) D. Interest Income (300,000) E. Lottery Income (49,005) D6

  17. $944,360 1. 08/09 Teachers Above Formula $944,360 2. Shock Absorbers from 08/09 1,312,283 $1,312,283 1,665,339 1,665,339 3. Superintendent’s Proposed Reductions within the JAESC (*) 4. Total Funding Sources $2,609,699 $3,921,982 $1,312,283 Other Funding Sources ONE- TIME ON- GOING Descriptions TOTAL * Unrestricted Reductions only D7

  18. A. Structural Balancing (Prior) ($9,876,432) ($9,876,432) B. Funding Sources/Uses (13,716,210) (6,019,654) ($7,694,556) C. Other Sources 2,609,699 1,312,283 3,921,982 Overall Balancing One- Time On- Going Description Total D. Total ($6,384,273) ($13,286,387) ($19,670,660) D8

  19. Phases for Budget Reduction Planning E

  20. Steps for Budget Planning Description • Phase I – Budget Reduction Plan for JAESC • Phase II – Brainstorming and Recommendation development • Administration • Superintendent’s Budget Advisory Committee • Phase III – Superintendent’s Recommendation to the Board • Phase IV – Board Approves a Plan E1

  21. Next Steps for Moving to Phase II • Administration will continue to work on developing recommendations • Superintendent’s Budget Advisory (SBAC) begins working on the brainstorming list • SBAC completes Phase II • We need to remember we have a $19,670,660 budget problem and will run out of “Cash” this year if we don’t take action now on things that we can control F1

  22. THE END iii

  23. Appendix • District Enrollment Trends • 2008/09 Financial Details iv

  24. District Enrollment Trends 1

  25. Elementary Enrollment 2

  26. Middle School Enrollment 3

  27. High School Enrollment 4

  28. 1. COLA Reserve – 0.68% ($800,463) 2. Teacher Staffing Reductions - Unused (0.68) (55,387) 3. Developer Fee Funded Positions 4.20 363,287 3.52 4. Total On-Going Expenses ($492,563) Summary of On-Going2008/09 Expenses Descriptions F.T.E BUDGET 5

  29. ($7,401,096) 1. Revenue Limit Reduction – Est. 4.5% ($7,401,096) 2. 08/09 COLA Reduction – 0.68% (800,463) (800,463) c. Transportation g. Lottery (Non-Prop 20) b. EIA a. AB825 Block Grants f. K-3 Class Size Red. d. School Safety e. Special Education (228,176) (33,779) 278,598 482,398 474,467 333,725 29,214 29,214 482,398 333,725 (228,176) $278,598 (33,779) 474,467 4. Total Funding Sources ($8,201,559) ($6,865,112) $1,336,447 Other 2008/09 Funding Sources ONE- TIME ON- GOING Descriptions TOTAL 3. State Categorical Reserves (6.50%) 6

More Related