steven lawrence, ph.d., superintendent bryan richards, chief...
TRANSCRIPT
Second Interim Budget Report 2011-12Activity through January 31, 2012
Presented March 12, 2012
Steven Lawrence, Ph.D., SuperintendentBryan Richards, Chief Financial Officer
A TALE OF SIX BUDGETS-CERTIFICATIONSTaxes Pass Certification UEB 6/30/13 UEB 6/30/14
Status Quo Positive 11,075,949 142,268
District’s LBF Qualified 6,141,944 -4,755,524
MDEA’s LBF Qualified 6,178,777 -4,764,916
Taxes Fail
Status Quo Negative -3,133,103 -28,441,570
District’s LBF Qualified 5,071,493 -20,408,627
MDEA’s LBF Negative -8,030,274 -33,348,752
HOW DID WE GO FROM A SIZABLE OPENING BALANCETO POTENTIALLY QUALIFIED OR NEGATIVE? Operating Deficit:
We are spending more than we bring in Plan to spend accumulated balance allowed us to
continue to operate programs until 2013-14 awaiting State recovery
New issues: Loss of Clayton Valley High School ($3.65M) If taxes fail, cut of $370/ADA plus transportation
revenue $74/ADA (or RL cut of $85/ADA). Total of $444-$455/ADA or ($13.55M - $13.89M)
Negotiations: No furlough days taken in 2011/12 Offer of 1.64% off-schedule payment in 2011/12 Offer of 1.36% off-schedule payment in 2012/13
(only if taxes pass)
2011-12: NO COLA + TRIGGER CUTS
2.24% COLA was fully offset by an addition to the deficit factor
The mid-year trigger cuts came in two forms: $12.85/ADA trigger cut $42.18/ADA in lieu of 50% transportation cut
Combined mid-year cut $55.03/ADA or ($1.79M)
WHAT DOES A 20.602% CUT LOOK LIKE? School year is 180 days 20.602% of school year is 37 days, leaving only 143
days funded To cut school by 20.602% we would have to close after
school ended on April 23rd
A 20.602% reduction of the school day would equal over 60-75 minutes less instruction daily (varies by grade level)
FUNDED REVENUE LIMIT 2010-11 VS. 2011-12 VS. 2012-13
Graph courtesy of School Services of California, Inc.
$5,206.08 $5,152.15
$4,753.16
$455.00
$1,139.94$1,281.84
$1,487.86
2010-11 2011-12 2012-13
Mt. Diablo Unified School District
$6,346.02 $6,489.02
Loss due to Deficit Factor
Loss due to expanding Deficit
Factor
Funded Revenue Limit
Funded Revenue Limit
Loss due to expanded Deficit
Factor
Funded Revenue Limit
$6,696.02
Funded if taxes pass
Mid-year cuts$55.03
11/12 REVENUE LIMIT CUT WIDENS TO $1,337/ADA
5,125
5,528
6,109
6,371 6,346 6,489
6,696
6,857
7,043
7,248
5,079
5,528
5,780
5,630
4,948
5,206 5,152 5,208 5,333
5,478 5,638
4,838 4,955
5,098 5,257
4,750
5,250
5,750
6,250
6,750
7,250
05/06 06/07 07/08 08/09 09/10 10/11 11/12 12/13 13/14 14/15 15/16
Dol
lars
$ p
er A
DA
Year
MDUSD Revenue Limit Funding per ADA
Revenue Limit
If taxes pass
If taxes fail
DECLINING ENROLLMENT
We are still in declining enrollment funding model
We are projecting a decline of 201.15 ADA in 2011/12 from 2010/11
This does not include effect of Clayton Valley charter school conversion An additional decline of 1,777 ADA
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
HOW DOES REVENUE LIMIT FUNDING LOOK?
140,000,000
150,000,000
160,000,000
170,000,000
180,000,000
190,000,000
200,000,000
Rev Limit - TaxPass
*Includes reduction due to CVHS Charter beginning in 12/13
UNRESTRICTED GENERAL FUND REVENUE
Revenue Limit Sources $ 163,949,919 Federal Revenue 354,152Other State Revenue 31,764,118Other Local Revenue 2,538,521 Interfund Transfers In 0 Total Revenue 198,606,710 Less: Net Contrib. to RGF (41,274,703)Net Available Revenue $ 157,332,007
Revenue Limit59.2%
Revenue Limit Contributed to
Restricted23.3%
Federal Revenue0.2%
State Revenue16.0%
Local Revenue1.3%
Interfund Transfers In0.0%
Mt. Diablo Unified School DistrictUnrestricted General Fund Revenues Before Contributions
2011-12 Total = $198,606,710
Revenue Limit is 82.5% of unrestricted general fund revenue.
UNRESTRICTED GENERAL FUNDEXPENDITURES
Certificated Salaries $ 93,199,036Classified Salaries 19,690,453Employee Benefits 33,595,779Books & Supplies 4,714,011 Services & Operating 13,325,794Capital Outlay 224,535Other Outgo 0 Interfund Transfers Out 3,986,579 Total Expenditures 168,736,187
Certificated Salaries55.23%
Classified Salaries11.67%
Employee Benefits19.91%
Books and Supplies2.79%
Services & Operating
7.90%
Capital Outlay0.13%
Interfund Transfers Out
2.36%
Mt. Diablo Unified School DistrictUnrestricted General Fund Expenditures and Transfers Out
2011-12 Total = $168,736,187
Salaries and Benefits make up 86.81% of expenditures & transfers out
UNRESTRICTED GENERAL FUND SUMMARY
Net Available Revenue $ 157,332,007 Net Expenditures 168,736,187 Net (decrease) fund bal. (11,404,180) Beginning Balance, July 1 45,543,431 Projected Ending Balance $ 34,139,251
COMPONENTS OF ENDING BALANCE
Revolving Cash $ 300,000 Stores Inventory 419,478 Economic Uncertainties (2%) 5,984,336 IRS Assessment Resolution 533,500 Tier 3 Balances & Site carryovers 4,870,743 Off-schedule offer (1.64%+1.36%)
(Unrestricted + Encroaching) 4,897,792 Undesignated* 17,133,402 Ending Balance $ 34,139,251
*Reservation needed to cover tax failure @ $455/ADA = $13,886,291
RESTRICTED GENERAL FUND REVENUE
Revenue Limit Sources $ 7,134,045Federal Revenue 29,184,174Other State Revenue 35,984,485Other Local Revenue 10,472,177 Interfund Transfers In 0Contribution from Unr. 46,319,956Total Revenue $129,094,837
Revenue Limit5.53% Federal Revenue
22.61%
State Revenue27.87%
Local Revenue8.11%
Contribution from Unrestricted
35.88%
Mt. Diablo Unified School DistrictRestricted General Fund Revenue
2011-12 Total = $129,094,837
RESTRICTED GENERAL FUND EXPENDITURES
Certificated Salaries $ 39,171,125Classified Salaries 20,348,787Employee Benefits 23,302,949Books & Supplies 13,877,805Services & Other Operating 32,067,304Capital Outlay 1,947,272Other Outgo 372,393 Indirect Costs 4,381,840 Interfund transfers out 56,350Total Expenditures $ 135,525,825
Certificated Salaries28.90%
Classified Salaries15.01%
Employee Benefits17.19%
Books & Supplies10.24%
Services & Other Operating
23.66%
Capital Outlay1.44%
Other outgo0.27%
Indirect Costs Xfr Out
3.23%
Mt. Diablo Unified School DistrictRestricted General Fund Expenditures
2011-12 Total = $135,525,825
RESTRICTED GENERAL FUND SUMMARY
Total Revenue $ 129,094,837 Total Expenditures 135,525,825 Net (decrease) in fund bal. ( 6,430,988) Beginning Balance, July 1 13,180,548 Projected Ending Balance $ 6,749,560
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
OTHER FUNDS OF THE DISTRICT (CONT’D)Capital Project Funds (continued)
County School Facilities Fund (Developer Fees) – Fund 35I
Capital Project Fund for Blended Component Units (Mello-Roos Measure A) – Fund 49I
Debt Service Funds Bond Interest & Redemption Fund (Measure C)
– Fund 51I Debt 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 decrease of (201.15) in 11/12 will decrease funding for 12/13.
Form CASH: Cash Flow – Ending GF cash will be positive but projecting a decline of $17.7M
Form RLI: Revenue Limit Calculations Form 01CSI: Criteria & Standards Form CI: Certification to sign summarizes
Criteria & Standards – POSITIVE or QUALIFIED Cert.
CLAYTON VALLEY CONVERSION CHARTEREFFECT – UNRESTRICTED GENERAL FUND
Revenue Limit decrease $ (10,996,076) Rent on CVHS property 450,649 1% oversight fee 117,069 Certificated Salary decrease 4,591,659 Classified Salary decrease 510,091 Benefits decrease 1,525,846 Books & supplies decrease 71,152 Services & operating decrease 307,349 Tier 3 pass through ($127/ADA) (225,679) Net effect annually $ ( 3,647,940)
Based on 1,777 units of ADA
FORM MYPI: MULTI YEAR PROJECTIONTaxes Pass Status Quo Dist. LBF MDEA LBF
UEB @ 6/12 22,031,194 19,308,481 17,048,751
Op Deficit 2012/13 -13,135,070 -15,353,176 -13,145,085
Adjust reserves 2,179,825 2,186,639 2,275,111
UEB @ 6/13 11,075,949 6,141,944 6,178,777
Op Deficit 2013/14 -12,772,157 -12,780,146 -12,782,169
Adjust reserves 1,838,476 1,882,678 1,838,476
UEB @ 6/14 142,268 -4,755,524 -4,764,916
Certification Positive Qualified Qualified
FORM MYPI: MULTI YEAR PROJECTIONTaxes Fail Status Quo Dist. LBF MDEA LBF
UEB @ 6/12 22,031,194 19,308,481 17,048,751
Op Deficit 2012/13 -27,344,122 -16,681,247 -27,354,136
Adjust reserves 2,179,825 2,444,259 2,275,111
UEB @ 6/13 -3,133,103 5,071,493 -8,030,274
Op Deficit 2013/14 -27,146,943 -27,106,154 -27,156,954
Adjust reserves 1,838,476 1,626,034 1,838,476
UEB @ 6/14 -28,441,570 -20,408,627 -33,348,752
Certification Negative Qualified Negative
POSITIVE CERTIFICATION –WHAT DOES IT MEAN? The District projects that it will meet its financial
obligations for the current fiscal year and two subsequent fiscal years.
If necessary, we can issue a TRAN to deal with cash flow
Status Quo – Taxes Pass (no off-schedule payment of 1.64% to employees) we have enough fund balance to offset our current level of deficit spending for two additional years with no additional cuts. Between now and budget adoption we would have to identify cuts to end the deficit spending.
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.
We will meet our obligations for this year and next year
If necessary, we can issue a TRAN to deal with cash flow
We may be unable to meet obligations for the third year out based on current projections without additional cuts (District offer – taxes pass; District offer – taxes fail; MDEA offer – taxes pass)
If the taxes pass, the cuts are fairly small If the taxes fail, the cuts are huge Must identify by 3rd Interim Report – due June 1st
NEGATIVE CERTIFICATION –WHAT DOES IT MEAN? The District projects that it will not meet its financial
obligations for the current fiscal year or the next fiscal year
We will meet our obligations for this year We will not meet our obligations next year It is very difficult to issue a TRAN if a District is
negative County Office will assign AB1200 advisor who will
have stay or rescind authority on fiscal issues We would not be able to meet obligations next year if
the taxes fail and we do not have furlough days in place for 2012-13 or identify other significant cuts (MDEA offer – taxes fail or Status Quo – taxes fail)
LAO ISSUES BUDGET ASSESSMENT
The Legislative Analyst forecasts that 2011-12 and 2012-13 revenues will fall $6.5 billion below the Governor's January forecast, and as much as $8.5 billion below forecast if the Facebook-related revenues are omitted.
This assumes enactment of the Governor's tax initiative in November.
The LAO will be releasing updated estimates of Proposition 98 in the coming weeks.
TONIGHT’S BOARD DECISION
Issue Positive second interim report based on where we were at January 31 and taxes passing Recognize that District’s last best and final offer will
require identification of additional cuts once an agreement is reached with MDEA
OR Issue Qualified second interim report based on
the District’s last, best and final offer issued March 1 District must identify the additional cuts in time for
the third interim report due June 1st
WHAT ABOUT SOLAR $?
Solar has been going online across the District this winter and will continue through the spring and summer
Savings from COP payments being utilized to fund intervention teachers
Savings from electricity and CSI revenue helping to ease the deficit issues we see in the budget; +$6M each year for first five years
Without the solar program, the operational deficit would be $21M in 2012-13 with the District’s last, best & final offer if the taxes pass
WHAT NEXT?MORE FROM
SACRAMENTO
Legislative budget subcommittees are considering Proposition 98 budgets this weekGovernor Brown’s May Revise will be out by May 15th
His tax measure needs at least 807,615 signatures verified by June 18th (needs to be submitted for verification by late April)