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.

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

RevenuesMost 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.

Revenue Limit

Federal

Other State

Other Local

General Fund Sources

(In Millions)

Revenue Limit $21.0

Federal 4.0

Other State 8.9

Other Local 2.3

Total Revenues 36.2

Beginning Balance 10.6

Total General Fund $46.8

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.

General Fund Expenditures

(In Millions)

Certificated Salaries

$16.2

Classified Salaries 5.4

Employee Benefits 9.0

Books and Supplies 2.0

Operating Costs 3.4

Capital/Other 0.6

Total Expenditures

$36.6

Books and Supplies

Total Ending BalanceIncluded 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.

The fight for LCFF dollars is now taking place.

Robin Hood says that he is going to take from the rich and give to the poor. We shall see.

The 2012-13 Budget – Final Remarks

One thing is for absolutely certain:

We will keep you updated.

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.

Now let’s do the numbers!