Jim LangstraatChief Financial Officer

503-353-6021 langstraat@nclack.k12.or.us

WelcomeI think a hero is an ordinary individual who

finds strength to persevere and endure in spite of overwhelming obstacles. Christopher Reeve

Budget ParametersSupport the Strategic Plan actions.Provide essential core services to students.Provide essential and required business and

operations services.Maintain essential operations and maintenance

of facilities.Begin to rebuild a fund balance, over time, that

is at least 5% of planned expenditures.Eliminate General Fund accruals within 4 years

and move to the GAAP method of accounting.

RemindersMuch of this information is based on estimates

and the data we have available at this point in time.

The materials presented reflect District administrations objective of delivering a balanced budget. However, collective bargaining is ongoing and expenditures may be reallocated between salaries and benefits as we conclude these negotiations.

We give thanks for the feedback we have received from the Budget Committee, staff, and community members as we have prepared this budget.

EnrollmentBudget built on weighted enrollment of 20,188.Enrollment declined by 85 students in the

month of May 2010 down to 17,205. This amount includes students enrolled in charter schools.

Enrollment down over 300 students from the end of September and over 200 students from the end of December.

Declining enrollment might lead to a shortfall for 2010-11 as 2010-11 funding will likely be based on 2009-10 enrollment.

RevenueBudgeted at $131,975,350 for 2010-11.$4.5 million than projected revenue for 2009-

10.Lower than 2007-08 level of funding.Includes transfers in from Facility Grants, E-

Rate, and Medicaid of $3,000,000 which will not be available for 2011-12.

State funding includes $1,917,860 of Federal Stimulus Funds which are not guaranteed beyond the 2010-11 year.

Expenditures Currently based on:$1.9 million of non salary and benefit accounts.Reduction of over 100 staff. Freezing salaries and granting no step movement.The reduction of 10 instructional days and the

related pay for all staff.The restoration of days reduced from the certified

and classified staff in 2009-10.The maintenance of insurance benefits and a

projected 15% increase.

Expenditures Negotiations remain ongoing and could change the

allocation between salaries and benefits but not the overall expenditure budget.

Expenditures are budgeted at $131,975,350 and are equivalent to revenues.

Expenditures will be nearly $8 million below 2009-10 and nearly $9.5 million below 2008-09.

Salaries budgeted at $7.5 million below 2009-10 projected and more than $11.5 million below 2008-09.

Benefits budgeted $475,000 above 2009-10 projected.

Expenditures Instructional Professional Services budget

decreased by $700,000.Repairs and Maintenance budget decreased

by $300,000Supplies and Materials budget decreased by

$900,000

Fund BalanceLatest projection is to end the year with a fund

balance of $ 2,532,268.Reflects fund balance consistent with Generally

Accepted Accounting Principles.No budgeted change for fund balance for the

2010-11 year.Fund balance will be 1.92% of budgeted revenues

or expenditures.Targeted level is at least 5%.Provides minimal protection for future

uncertainties.

Items for Ongoing ReviewChanges to enrollment projections.Changes to State Economic Revenue Forecast.Intervention at the State or Federal level.State budget shortfall.Resolution of negotiations with bargaining units.Health insurance plan and rate increases.Pending PERS rate increase.Loss of one-time funding sources and transfers.Reinvestment in infrastructure (textbooks,

repairs, technology, buses).

State & Federal Programs Detail

Grant Description Budget

Title III English Language Assistance

$399,000

Title II-A Teacher Quality $667,348

IDEA Special Education $3,341,593

Title V-B NUHS NUHS Dissemination $40,000

Title II-D Education Enhancement

$105,620

Title IA and IB Reading Assistance $3,863,420

Title I-D Neglected Children $20,000

Title IV School Safety $0

Carl Perkins Vocational Programs $80,000

Work Force Employment Incentive

$100,000

Food Service School Meal Program $6,185,696

State & Federal Programs Detail

Grant Description Budget

Supplemental Special education $36,000

Transportation Equipment Purchases $1,171,478

Sabin Center Vocational Education $22,400

Child Care Block Grant

Child Care $110,000

Medicaid Health Assistance $1,035,388

PACE Parenting Assistance $18,482

Summer School Summer School $43,267

E-Rate Technology Funding $900,000

North Clackamas University

Parenting Assistance $41,086

Miscellaneous Meyer Memorial, Arts , Etc.

$425,711

Workforce Development

Vocational Education $100,000

Debt Service FundIncludes General Obligation bonded debt

principal and interest payments of $21,915,969 funded by property tax collections.

Includes PERS principal and interest payments of $7,525,910 funded as a percentage of salaries.

Includes lease payments of $1,810,001 for past equipment purchases, primarily school buses and modular classrooms.

Capital Projects FundIncludes Bond Projects budget of $30 million

funded by the bond issuance and investment proceeds.

Includes non bond projects of $6,515,000. Small projects such as moving modular buildings, roof repairs, bus purchases, etc.

Community Services FundIncludes Drivers Education, Facility Rental

and Daycare Operations.Budget of $1,222,504.

Self Insurance FundsIncludes Health Insurance and General Insurance.Health Insurance has $35,490,000 budgeted for

expenditures with a reserve balance of $3.3 million.

This fund includes contributions not only from the General Fund but from other funds such as Food Service, Title I and IDEA. It also includes the employee share of contributions and retiree payments.

General Insurance is primarily Worker’s Compensation coverage and claims and has a budget of $1.5 million

Trust and Agency FundsIncludes the Charter School Budgets, The Azar

Land Purchase and Scholarship Fund.Milwaukie Academy of the Arts with a budget of

$557,717.Azar Land Purchase with a budget of

$2,210,931. Funded by bond with monies held in reserve per conditions of purchase agreement.

Clackamas Charter Alliance with a budget of $4,275,827.

Scholarship Fund with a budget of $230,000.

Important DatesJune 24-Board meeting-Board to enact

resolutions adopting budget and making appropriations.

June 30-End of fiscal year. August 25, 2010-Next Economic & Revenue

Forecast released.August 31, 2010-Unaudited financial figures

available for 2009-10 fiscal year.September 2010-Updates for budget committee,

union leadership, and other interested parties.