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Quarterly Budget Update

Michael E Finn

February 23, 2012

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• Prior Year’s Assumptions• Three Year Projections• M&O Summary• Transportation• Capital• Next Year’s Assumptions

Discussion Points

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• Soft Capital – 80% bottom line reduction ($6.5m) Actual $8.0M

• EduJob Funds – 50% expended in 2010-11 to replace state reductions ($3.4m) Actual $5.0M

• CORL reduction of $62 per student ($2.8m) Actual $6.6M

• ADM – decline in student enrollment of 545 ($2.1m) Actual $2.5M

Last Year’s Assumptions-Worse than Plan

Last Years Assumptions – Better than Plan

• Prop 301 – estimate new monies at $51/student ($2.4m) Actual $120/Student

• Health Insurance ($1.5m) Actual $.80M• Transportation Limit – elimination of floor

($440k) Actual $0.0M• Gaming – 5% reduction in revenue ($110k)

Actual $100k• State Grants – overall 10% funding reduction

($50k) Actual $25K

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• Career Ladders – implement phase-out ($1.6m) Actual $1.6

• ARRA – expire without replacement ($1.3m) Actual $1.3M

• ASRS increase of .9% to 10.75% ($1.25m) Actual $1.25M

Last Years Assumptions – No Change

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In Millions Projected Actual 2010-2011 2011-2012 2011-2012

Funding M&O $189.60 $184.30 $183.90

CSF Carry Forward $3.70 $ - CORL $9.50 $6.60 $2.80 Soft Cap $1.20 $0.80 $0.00 Contingency $7.80 $16.80 $16.00 EduJobs $6.80 $ - Total $218.60 $208.50 $202.70

Expenses M&O $189.30 $189.30 $190.90 CORL $1.10 $1.10 $1.10 Soft Cap $4.20 $4.20 $2.70 EduJobs $3.50 $0.00 $0.00

ASRS $ - $1.20 $1.20

VSMG $ - $0.80 $0.80

Utilities $ - $0.16 $0.16 Prop Backfill $3.70 $0.00 $0.00 Total $201.80 $196.76 $196.86

Reductions Staffing $ - $1.60 $0.00

Career Ladders $ - $1.60 $1.60 Total 0 $3.20 $1.60

Carry Forward $16.80 $14.94 $7.44

M & ORegular and Special Education

• Regular Education tracking higher than plan• Special Education tracking to plan• Transportation tracking to plan• Year end projections $2.0M higher than plan

-Some positions funded through ARRA remained-Additional certified positions to address class sizes per policy

M&O Summary

• Regular and Special Education is projecting a total annual spend of $183,364,828 assuming an additional $1.7 million in spending that is allocated, but not yet encumbered.– $1.0 million in salaries– $270K in benefits– $250K million in Purchased Services

• Current encumbrances very high

– $180K in Supplies and Fees• Currently tracking 1.1% above plan

M&O – Regular and Special EducationProjections thru FY2012

TRANSPORTATION

• Transportation is projecting a total annual spend of $7,575,706 assuming an additional $1.9M in spending that is allocated but not yet encumbered.– $800k in salaries– $216K in benefits– $125K in Purchased Services– $750K in Supplies and Fees ($550k fuel)

TransportationProjections thru FY2012

CAPITALSoft and Unrestricted Capital

• Allocation of $18.83 million – $3.4 million expended and $400k encumbered – $590k allocated to departments for capital

expenditures – $7 million required to balance budget

• Balance remaining $7.44 million

Capital

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• Increase in healthcare expense of $2 million• Increase in ASRS of $1.78 million • Increase in utilities expense of $800K• Increase in fuel expense of $300K

General Expense Assumptions for FY13

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• Move on When Reading $2.34M • SFB Funds (imbedded in CORL) $1.3M• One Time Soft Capital Add Back $3.2M• CORL EduJobs Backfill $1.56M• Prop 301 Funding at $219 per Student

General Revenue Assumptions for FY13 (Governor)

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In Millions Projected Revised No Sales Tax 2012-2013 2013-2014

Funding M&O $180.00 $180.90 $158.80 CSF Carry Forward $ - $ - CORL $5.20 $4.50 $5.20 Soft Cap $0.80 $1.20 $0.80 Contingency $14.94 $7.44 $0.11 EduJobs $ - $ - Total $200.94 $194.04 $164.91

Expenses M&O $190.90 $190.90 $179.70 CORL $1.10 $1.10 $1.10 Soft Cap $4.20 $4.20 $4.20

EduJobs $ - $

- $ - ASRS $1.00 $1.78 ACR $ - VSMG $ - $2.00 $ - Utilities $0.80 $0.80

Prop Backfill $ - $

- $ - Total $198.00 $200.78 $185.00

Reductions Staffing $8.00 $5.25 $18.56 Career Ladders $1.60 $1.60 $1.60 Total $9.60 $6.85 $20.16

Carry Forward $12.54 $0.11 $0.07

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QUESTIONS