Budget Study Session

1. Budget Study Session Berryessa Union School District April 23, 2008

2. Overview of Funds • Fund 01 – General Fund • A) Unrestricted • Sub Fund 01 • Major Operating Fund • Sub Fund 02 • State Lottery – unrestricted

3. Overview of Funds - continued • Fund 01 – General Fund • B) Restricted • Sub Fund 05 – Restricted Routine Maintenance Account (RRMA) • Ongoing and Major Maintenance • Sub Fund 06 – Categorical programs • Created by the Federal or State legislators to serve the special needs of students that are not covered by the general fund regular education programs. • Each categorical program comes with its own program intent, rules, regulations, and exemplary practices. • A major component of district and site services.

4. Overview of Funds - continued • Fund 01 – General Fund • Sub Fund 06 – Categorical Programs • Sample of Categorical Programs • Title I (Federal) • Purpose: Improve teaching and learning of children who are at risk of not meeting challenging academic standards and who reside in areas with high concentration of children from low income families. • Economic Impact Aid (State) • Purpose: Supplemental funding to support additional programs and services for English Learners and economically disadvantage students.

5. Overview of Funds - continued • Fund 01 – General Fund • B) Restricted • Sub Fund 07 – Transportation • Costs associated with transporting students to and from school • Sub Fund 08 – Special Education • Monitor state, federal and local funded activities related to special education students

6. Overview of Funds - continued • Fund 12 – Child Development Fund • Account separately for federal, state, and local revenues to operate child development programs • Fund 13 – Cafeteria Special Revenue Fund • Account separately for federal, state, and local resources used to operate the child nutrition program

7. Overview of Funds - continued • Fund 14 – Deferred Maintenance Fund • Account separately for state apportionment and local contributions for deferred maintenance purposes • Fund 21 – Building Fund • Account separately for proceeds from the sale of bonds

8. Overview of Funds - continued • Fund 25 – Capital Facilities Fund • Account separately for money received from fees levied on developers as a condition of approving a development • Fund 40 – Special Reserve Fund for Capital Outlay Projects • Proceeds from the sale of the Flickinger site

9. Enrollment vs. Attendance • Virtually all funding received by a local educational agencies (LEAs) is based on either enrollment or average daily attendance (ADA). • Enrollment is an important variable when deciding how to staff schools and district operations.

10. Enrollment vs. Attendance – continued

11. Enrollment vs. Attendance – continued CBEDSP-2 ADA (7th School Month) 2004-05 8419 8192.36 2005-06 8342 8148.96 2006-07 8264 8082.07 2007-08 8298 8111.75

12. Review of 2nd Interim • Adopted Budget: 6/30 • First Interim Report: • Data cut-off 10/31 • Report presented to Board on/before 12/15 • Report due to COE 12/15 • Second Interim Report: • Data cut-off 1/31 • Report presented to Board on/before 3/15 • Report due to COE 3/15

13. Review of 2nd Interim - continued • Positive Certification – The District will be able to meet its financial obligations for the current fiscal year and subsequent two years. • Qualified Certification – The District may meet its financial obligations for the current fiscal year or subsequent two years. • Negative Declaration – The District will be unable to meet its financial obligations for the remainder of the fiscal year or for the subsequent fiscal year.

14. Revenue Limit Calculation • 2008-09 at 10/31/2007 (1st Interim) • COLA (Cost of Living Adjustment) 4.3%, no deficit • Base Revenue Limit per ADA: $5,755.67 • Projected ADA: 8,073.17 • Total Revenue Limit = $46,162,090

15. Revenue Limit Calculation - continued • 2008-09 at 1/31/2008 (2nd Interim) • COLA (Cost of Living Adjustment) 4.94% with 6.99% Deficit • Base Revenue Limit per ADA: $5,793.67 before deficit; $5,388.69 after deficit • Projected ADA: 8,073.17 • Projected Total Revenue Limit: $43,187,209

16. Projected Deficit (Governor’s Budget) • Revenue Limit Decreased between October 2007 and January 2008: $2,974,000 • Projected deficit for State Programs: $387,000 • K-3 CSR Deficit: $395,000

17. How Did Things Get So Bad - State • Revenue forecasts for 2006-07, 2007-08 and 2008-09 have been downgraded. • Spending is higher than anticipated due to lower than expected local property tax collections; firefighting costs; a recent court decision; and unachieved 2007-08 budget savings. • An ongoing imbalance between revenues and expenditures.

18. July Apportionment Deferral • ABX3 4 – This bill defers a one-time basis $1.1 billion for July Advance Apportionment until September in order to help meet the state’s need for cash.

19. Circumstances/Legislation That May Change the Deficit • AB 1908 – which would give local educational agencies flexibility to spend prior year unencumbered general fund balances in the event that Proposition 98 is suspended • AB 2831 – which would give districts the flexibility to transfer prior year unencumbered categorical program funds to the district’s unrestricted general fund for Budget Years 2008-09 and 2009-10 in lieu of full funding

20. Circumstances/Legislation That May Change the Deficit • AB 2832 – which would reduce LEAs required contribution to the routine restricted maintenance account from 3% to 1.5% in the 2008-09 and 2009-10 Budget Years in lieu of full funding

21. Latest Information • The April tax collections, personal income, sales & use, and corporate, are down from the governor’s January forecasts. • Property tax – A survey by County assessors showed the statewide growth for the budget year is sharply below projections. • The final numbers will not be known until May.

22. May Revision • May Revise – May 14, 2008 • Include the latest state revenue forecast factoring in April tax collections • Revise January budget Planning for the worst, but hoping for the best.