First Interim Budget Report 2013-14Activity through October 31, 2013

Presented December 11, 2013

Nellie Meyer, Ed.D., SuperintendentBryan Richards, Chief Financial Officer

LCFF: A WHOLE NEW WORLD

The entire revenue limit has been thrown out. We have a new mechanism for calculating revenue, the Local Control Funding Formula

Target rates per student by grade level K-3 Base $6,952 plus Grade Span (CSR) $723 4-6 $7,056 7-9 $7,266 9-12 $8,419 plus Grade Span (was CTE) $219

Supplemental funding of 20% for students who are either English Language Learners, receiving Free & Reduced Lunch or Foster Youth

Concentration funding if over 55% of students qualify for supplemental funding (we are at 49%)

LCFF Target Amounts 2020-21 (projected) $263,052,578

Note: MDUSD does not qualify for concentration funding.

226,880,54

0

7,386,385

1,760,572

23,129,046 1,577,821 2,318,216 Target $

BaseK-3 Grades9-12 GradesSupplementalTIIGTransportation

LCFF Funding Amounts 2013-14 (projected) $204,633,181

Note: MDUSD does not qualify for concentration funding.

196,935,031

870,116207,3952,724,602 1,577,821

2,318,216

Funding

BaseK-3 Grades9-12 GradesSupplementalTIIGTransportation

DECLINING ENROLLMENT

We are still in a declining enrollment funding model

We are projecting a decline of 287.32 ADA in 2013/14 from 2012/13

MDUSD ADA IS STILL DECLINING!

27,000

28,000

29,000

30,000

31,000

32,000

33,000

34,000

35,000

P-2 ADA

P-2 ADA

UNRESTRICTED GENERAL FUND REVENUE

RL/LCFF Sources $ 160,026,120 Federal Revenue 238,982 Other State Revenue 33,504,486 Other Local Revenue 4,274,874 Interfund Transfers In 0 Total Revenue

198,044,462 Less: Net Contrib. to RGF

(40,154,876) Net Available Revenue $

157,889,586

Revenue Limit60.5%

Revenue Limit Contributed to

Restricted20.3%

Federal Revenue0.1%

State Revenue16.9%

Local Revenue2.2%

Interfund Transfers In0.0%

Mt. Diablo Unified School DistrictUnrestricted General Fund Revenues Before Contributions

2013-14 Total = $198,044,462

LCFF/Revenue Limit is 80.2% of unrestricted general fund revenue. This will grow once conversion of former categoricals is complete.

UNRESTRICTED GENERAL FUND EXPENDITURES

Certificated Salaries $ 93,809,129

Classified Salaries 20,250,709

Employee Benefits 32,596,808

Books & Supplies 4,199,616

Services & Operating 10,960,862

Capital Outlay 181,600

Other Outgo 0

Interfund Transfers Out 3,519,751 Total Expenditures

165,518,475

Certificated Salaries56.68%

Classified Salaries12.23%

Employee Benefits19.69%

Books and Supplies2.54%

Services & Operating6.62%

Capital Outlay0.11%

Interfund Transfers Out

2.13%

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

2013-14 Total = $165,518,475

Salaries and Benefits make up 88.6% of expenditures & transfers out

UNRESTRICTED GENERAL FUND SUMMARY

Net Available Revenue $ 157,889,586

Net Expenditures 165,518,475 Net (decrease) fund bal.

( 7,628,891) Beginning Balance, July 1

42,300,356 Projected Ending Balance $

34,671,465

COMPONENTS OF ENDING BALANCE

Revolving Cash $ 305,000

Stores Inventory 462,769

Economic Uncertainties (3%) 8,972,226

Tier 3 Balances & Site carryovers 4,809,058

Undesignated 20,122,412

Ending Balance $ 34,671,465

RESTRICTED GENERAL FUND REVENUE

Revenue Limit Sources $ 9,240,654

Federal Revenue 29,650,481 Other State Revenue 42,911,990 Other Local Revenue 8,635,988 Interfund Transfers In 0 Contribution from Unr. 42,765,960 Total Revenue

$133,205,073

Revenue Limit6.94% Federal Revenue

22.26%

State Revenue32.21%

Local Revenue6.48%

Contribution from Unrestricted

32.11%

Mt. Diablo Unified School DistrictRestricted General Fund Revenue

2013-14 Total = $133,205,073

RESTRICTED GENERAL FUND EXPENDITURES

Certificated Salaries $ 38,145,027 Classified Salaries 20,014,237 Employee Benefits 21,895,621 Books & Supplies 24,624,578 Services & Other Operating 28,407,152 Capital Outlay 707,394 Other Outgo 254,994 Indirect Costs 2,117,778 Interfund Transfers Out 0 Total Expenditures $ 136,166,781

Certificated Salaries28.01%

Classified Salaries14.70%

Employee Benefits16.08%

Books & Supplies18.08%

Services & Other Operating20.86%

Capital Outlay0.52%

Other outgo0.19%

Indirect Costs Xfr Out

1.56%

Mt. Diablo Unified School DistrictRestricted General Fund Expenditures

2013-14 Total = $136,166,781

RESTRICTED GENERAL FUND SUMMARY

Total Revenue $ 133,205,073

Total Expenditures 136,166,781

Net (decrease) in fund bal. ( 2,961,708)

Beginning Balance, July 1 11,183,370

Projected Ending Balance $ 8,221,662

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 Measure C for construction)

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

25I

OTHER FUNDS OF THE DISTRICT (CONT’D)

Capital Project Funds (continued)County School Facilities Fund (Statewide

bond proceeds for construction like Prop 1A, 55) – Fund 35I

Capital Project Fund for Blended Component Units (Mello-Roos, Measure A) – Fund 49I

Debt Service FundsBond Interest & Redemption Fund (Measure

C) – Fund 51IDebt Service Fund for Blended Component

Units (Measure A) – Fund 52I Trust Funds

Foundation Private-Purpose Trust Fund – Fund 73I

SUPPLEMENTAL INFORMATION Form AI: Average Daily Attendance continues

do decrease as noted above. We continue to be funded on prior year when declining under LCFF. Projected decrease of (287.32) in 2013/14 affects funding in 2014/15.

Form CASH: Cash Flow – Ending GF cash will be positive. Deferrals have stabilized and begun to be bought down as part of Governor Brown’s Wall of Debt plan

Form 01CSI: Criteria & Standards Form CI: Certification to sign summarizes

Criteria & Standards – QUALIFIED Certification because State has not determined if funding will be beyond COLA for next year.

FORM MYPI: MULTI YEAR PROJECTION

Undesignated @ 6/14 $ 20,122,411

Operating Deficit 2014/15 (12,234,883)

Adjustment in 2% reserve (23,587)

Unappropriated Balance 6/14 7,863,941

Operating Deficit 2014/15 (15,763,605)

Adjustment in 2% reserve (17,961)

Unappropriated Balance 6/15 $ (7,917,625)

Based upon first interim guidance to budget only COLA until the State’s budget comes out.

QUALIFIED CERTIFICATION – WHAT DOES IT MEAN?

The District projects that it may not meet its financial obligations for the current fiscal year or two subsequent fiscal years if the State only funds the equivalent of the COLA.

We will meet our obligations for this year and next year.

We may be unable to meet obligations for the third year out based on current projections (depending on what comes in the Governor’s January budget).

DOF preliminary calculations in the LCFF calculator indicate we will get funding above the COLA, but it has not yet been proposed in the budget.

LAO ISSUES BUDGET ASSESSMENTSCO CASH REPORT

State revenues have finally turned the corner and are on track to rise

Projections indicate that Proposition 98 funding will increase beyond the COLA

The SCO indicated while November came in low, year to date State cash collections are up.

WHAT NEXT?MORE FROM

SACRAMENTO

Governor Brown’s budget will be announced in JanuaryLCFF / LCAP regulations due in JanuaryLCAP Templates due from State by MarchOur LCAP and Budget due by July 1Two Hearings on each to happen in JunePublic Input sessions during winter & spring