State Budget 2010-11 & District’s Amended 2010-11

BudgetFirst Interim PreviewNovember 17, 2010

Steven Lawrence, Ph.D., SuperintendentBryan Richards, Chief Financial Officer

Negative COLA & Deficits

A 0.39% DECREASE in funding; ($25) per ADA

However, deficit factor is being decreased to offset the effect of the negative COLA

The one time extra deficit has been returned to one time status and will not continue in 2010/11 (cue small sigh of relief)

Funded Revenue Limit 2009-10 vs. 2010-11

Graph courtesy of School Services of California, Inc.

Mt. Diablo Unified School District

2009-10 2010-11

$6,371.02 $6,346.02

$4,947.53$5,206.08

Loss due to Deficit Factor and $254-per-ADA

one-time cut

Loss due to Remaining Deficit Factor

Funded Revenue LimitFunded Revenue Limit

$1,139.94$1,423.49

What does a 17.96% cut look like?At least it is better than a 22.21% cut School year is 180 days 17.96% of school year is 32.33 days To cut school by 17.96% we would have

closed after school ended on April 18th (April 25th in a year when the Spring break falls earlier & about 7 days plus a minimum day later than with a 22.21% cut)

A 17.96% reduction of the school day would equal just over 1 hour less instruction daily

10/11 revenue limit cut narrows to $1,140/ADAMDUSD Revenue Limit Funding per ADA

6,803

6,617

6,4616,3466,371

6,109

5,125

5,528

5,647

5,482

5,348

5,227

5,079

5,780

5,303

5,1625,041

4,9374,947

5,630

5,3115,206

5,2065,206

4,750

5,250

5,750

6,250

6,750

2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14

Year

Do

llar

s $

per

AD

A

Revenue Limit

Actual 09-10Budget

May 2010 Revise

Actual 10-11Budget

Declining Enrollment Less Steep than projected at

adoption For P-2 in 2009/10 we were down 550.58 ADA

We are still declining so this is our funding model

We are projecting a decline of 291.32 ADA in 2010/11 from 2009/10

ADA projection is based on our last 3 years average attendance of 94.8% rather than last year’s 95.3% until we know current ADA percentage

MDUSD ADA is still declining!P-2 ADA

29,500

30,000

30,500

31,000

31,500

32,000

32,500

33,000

33,500

34,000

34,500

35,000

P-2 ADA

How does revenue limit funding look?Revenue Limit

160,000,000

165,000,000

170,000,000

175,000,000

180,000,000

185,000,000

190,000,000

195,000,000

200,000,000

Revenue Limit

Health rates skyrocketing!Kaiser Rates

0

500

1,000

1,500

2,000

2,500

Year

Mo

nth

ly P

rem

ium

1 party

2 party

3 party

Compounding rate increasesKaiser % Increase

0.0%0.0%

10.0%10.0%10.0%10.0%6.8%23.3%

4.8%8.0%9.2%10.7%9.8%16.1%17.8%

296.4%

260.3%

227.6%

197.8%170.7%

45.3%

68.8%85.3%

105.2%123.9%

141.9%153.4%

0.0%

50.0%

100.0%

150.0%

200.0%

250.0%

300.0%

CY 2002

CY 2003

CY 2004

CY 2005

CY 2006

CY 2007

CY 2008

CY 2009

CY 2010

CY 2011

CY 2012

pro

j

CY 2013

pro

j

CY 2014

pro

j

CY 2015

pro

j

Year

Per

cen

t In

crea

se

y/yinc

incsince02

MDUSD Benefit CostsHealth, Dental, Vision & Post Retirement Benefits

-

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

30,000,000

35,000,000

Year

Am

ou

nt

General Fund

Unrestricted General Fund Revenue

Revenue Limit Sources $ 164,735,676 Federal Revenue 232,231 Other State Revenue 31,529,952 Other Local Revenue 1,801,379 Interfund Transfers In 1,572,413 Total Revenue 199,871,651 Less: Net Contrib. to RGF (33,568,323) Net Available Revenue $ 166,303,328

Mt. Diablo Unified School District Unrestricted General Fund Revenues Before Contributions

2010-11 Total = $199,871,651

Interfund Transfers In0.8%

Revenue Limit65.6%

Revenue Limit Contributed to

Restricted16.8%

Federal Revenue0.1%

State Revenue15.8%

Local Revenue0.9%

Revenue Limit is down to 82.4% of revenue because of the deficit.

Unrestricted General Fund Expenditures

Certificated Salaries $ 88,043,398 Classified Salaries 20,000,007 Employee Benefits 32,446,736 Books & Supplies 9,576,956 Services & Operating 13,466,415 Capital Outlay 153,732 Other Outgo 929,380 Interfund Transfers Out 3,486,037 Total Expenditures 167,173,281

Mt. Diablo Unified School DistrictUnrestricted General Fund Expenditures and Transfers Out

2010-11 Total = $167,173,281

Services & Operating8.06%

Capital Outlay0.09%

Other outgo0.54%

Interfund Transfers Out

2.09%

Books and Supplies5.73%

Employee Benefits19.41%

Classified Salaries11.96%

Certificated Salaries52.67%

Salaries and Benefits make up 84.04% of expenditures & transfers out!

(This is down due to transfer of $6M to Ed Jobs Fund)

Unrestricted General Fund Summary

Net Available Revenue $ 166,303,328 Net Expenditures 167,173,281 Net (decrease) fund bal. ( 869,953) Beginning Balance, July 1 24,791,068 Projected Ending Balance $ 23,921,115

Components of Ending Balance

Revolving Cash $ 300,000 Stores Inventory 447,156 Economic Uncertainties (2%) 6,025,207 IRS Assessment Resolution 533,550 Tier 3 Balances 1,520,144 LAO rec. cut to RL 8,523,367 Undesignated 6,571,741 Ending Balance $ 23,921,165

Restricted General Fund Revenue

Revenue Limit Sources $ 7,071,893 Federal Revenue 37,894,638 Other State Revenue 37,414,612 Other Local Revenue 9,269,004 Interfund Transfers In 0 Contribution from Unr. 39,273,596 Total Revenue $130,923,743

Mt. Diablo Unified School DistrictRestricted General Fund Revenue

2010-11 Total = $130,923,743Contribution from Unrestricted

30.00%

Revenue Limit5.40%

Federal Revenue28.94%

State Revenue28.58%

Local Revenue7.08%

Restricted General Fund Expenditures Certificated Salaries $ 40,814,438

Classified Salaries 19,253,879 Employee Benefits 23,900,109 Books & Supplies 25,163,720 Services & Other Operating 24,053,475 Capital Outlay 276,212 Other Outgo 1,355,536 Indirect Costs 4,974,934 Total Expenditures $ 139,792,303

Mt. Diablo Unified School DistrictRestricted General Fund Expenditures

2010-11 Total = $139,792,303

Indirect Costs Xfrs3.56%

Books & Supplies18.00% Employee Benefits

17.10%

Classified Salaries13.77%

Certificated Salaries29.20%

Capital Outlay0.20%

Other outgo0.97%Services & Other

Operating17.21%

Restricted General Fund Summary

Total Revenue $ 130,923,743 Total Expenditures 139,792,303 Net (decrease) in fund bal. ( 8,868,560) Beginning Balance, July 1 10,343,950 Projected Ending Balance $ 1,475,390

Other Funds of the District

Funds for special purposes excluded from the General Fund

Special Revenue Funds Charter School – Form 09I Adult Education – Form 11I Cafeteria – Form 13I Deferred Maintenance – Form 14I

Capital Projects Funds Building (Proceeds of local bonds for construction) –

Form 21I Capital Facilities (a.k.a. Developer Fees) – Form 25I

More one time funds are here Federal Jobs Funds $6.4M

Recommendation – fund days for site based employees to restore general fund for potential cuts to revenue limit

School Improvement Grants for four schools Helpful, but not ongoing

The State deficits are ongoing and rising for Revenue Limit funding

What next?More from

Sacramento

Governor Schwarzenegger calls special sessionDemocrats in Legislature indicate they will wait for Governor-Elect Brown to take office before they address $25.4 BILLION deficitGovernor-Elect Brown will have to deal with shaky revenue assumptions in the budget Mid year cuts or a very tough January budget expected

LAO Issues Budget Assessment State Budget Imbalance of $25.4 Billion Federal Revenue assumptions overstated Measure prohibiting ERAF triple flip shifts approved

by voters, protects county tax base, but leaves State less flexibility to fund education

Calls for rollback of budget to level of May Revise Reduces our revenue limit funds by $8.5 Million

Recommend reserving additional revenue limit funding until after the January budget and special session are complete, possibly until May revise if the January budget punts the decision until then

Will the State budget hold through the January revision?... Tune in next time for

s a c r a m e n t o----- -----------