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2012-13 Second Interim

2012-13 Second Interim. Western Placer Unified School District Board of Trustees March 19, 2013. Second Interim - Certification.

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2012-13 Second Interim

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  1. 2012-13 Second Interim Western Placer Unified School District Board of Trustees March 19, 2013

  2. Second Interim - Certification • The district’s Board of Trustees shall certify in writing whether or not the district is able to meet its financial obligations for the remainder of the fiscal year and, based on current forecasts, for the two subsequent fiscal years. • The certification shall be classified as positive, qualified, or negative, pursuant to standards and criteria adopted by the State Board of Education (EC §33127). • The District is certifying Positive at Second Interim

  3. National and State Economic Conditions • UCLA forecast (March 2013) reporting foundation for growth may have finally been poured – nationally. • California forecast – January revenues exceed forecast by $5.1 billion (51%), February revenues below forecasts by $322 million (-8.1%) , but year-to-date revenues remain strong • Voters (48%) are feeling State is moving in the right direction. • Governor Brown ‘s job approval rating at a high of 57% • Personal income in California expected to increase 1.4% in 2013 and 3.6% in 2014 • California unemployment rate expected to fall to 8.4% in 2014, one percentage point higher than the forecast for the U.S. rate.

  4. 2012-13 1st Interim vs. 2nd Interim

  5. Major Revenue Changes to Fund Balance Since First Interim Budget

  6. Major Expenditure Changes to Fund Balance Since First Interim Budget Continued on next slide

  7. Major Expenditure Changes to Fund Balance Since First Interim Budget

  8. 2012-13 1st Interim vs. 2nd Interim

  9. 2012-13 Budget Reductions • $5.75 million in budget reductions • $3.25 million on-going • $2.5 million one-time

  10. Multiple Year Projections (MYP) 2013-14 & 2014-15 • 2013-14 Budget Reductions –$4.4 million ($5.3M cuts less $842,000 Net Revenue increases) • $1.32 million in budget reductions approved by Board ($1.3 One-Time, $288,000 On-Going) • $2.0 million use of Fund balance Reserves – On-Time • $781,000 Reduction in force – certificated staffing – On-Going • $111,000 Contract, Management & Confidential - 6 Furlough Days – One-Time • $215,000 remaining to reduce • 2014-15 Budget Reductions Needed – $2.9 million • If all on-going reductions in 2013-14 continue

  11. MYP -Budget Assumptions - Revenue

  12. MYP Budget Assumptions - Expenditures

  13. Multiple Year Projections On-going budget cuts necessary to achieve a balanced budget (Revenues = Expenses) DM Reserve used to assist with negative cash flow due to state deferrals Maintains a 3% general fund reserve for 13-14 and 14-15; As of Second Interim 12-13 reserve meets Board policy for minimum reserve of 5% Positive Certification – Adequate reserves and cash

  14. Components of Fund Balance Deficit Spending in 2012-13 & 2013-14. Balanced in 2014-15 due to projected State COLA. Economic Uncertainty Surplus used to support future year’s budget deficits - BUT it is One-Time

  15. Enrollment Trends We have projected an enrollment increase of 33 students for the 2013-14 year and an increase of 66 students in fiscal year 2014-15.

  16. Cash Flow 2012-2013, 2013-2014 and 2014-2015 (without TRANS financing support in 2013-14 and 2014-15)

  17. Next Steps • Deficit spending is budgeted for the current and two subsequent years. • The District is attempting to bring forward budget reductions that are on-going to address the year-to-year structural deficit. • Any one-time budget reductions will continue to necessitate annual budget reductions in future years. • While the projections show that the district will be able to meet its financial obligations for the current and subsequent two years, the district must align spending with revenue to beyond the minimum 3% reserve for Economic Uncertainties to a Board policy of 5% reserve to maintain a healthy financial status.

  18. Next Steps Education Code requires that the district revise its budget at First Interim, Second Interim and at year end. Changes that the Board should expect before 2013-14 Budget Adoption In June include: • Multi-year projections updated to reflect Governor’s 2013-14 May Revision • Update COLA and deficit assumptions for 2013-14 and future years • Update on Federal, State and local funding notifications • Recalculation of Revenue limit for final P-2 ADA reporting • Updated projected ending Fund Balance Reserves based on year end projections and actuals spent to date • Recommendations for remaining 2013-14 budget reductions.

  19. QUESTIONS & COMMENTS

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