2009/10 Fiscal Year2009/10 Fiscal YearUpdating OperationsUpdating Operations

Lodi Unified School District

Y:Business Services/Budget/2010-11/Adopted/Meetings/B10-06-09

Prepared by:

Dr. Cathy Washer

Douglas Barge

Carrie Hargis

Executive SummaryExecutive Summary• The District’s 2008/09 Unrestricted Ending Fund balances

are artificially high because of the influx of Federal one time resources and State redefined Tier III categorical programs

• Enrollments are slightly above projections, but still way below prior year numbers

• Income from the additional students and additional Tier III categorical programs sweeps will give the District the opportunity to plan for 2010/11 by setting aside additional reserves of $1,087,486

• Structural balancing of the budget still remains a top priority

• Having received some State funding for the Lawrence emergency repair project, the District is in a position to reduce some of its debt

Table of ContentsTable of ContentsDescription Page No.

A. Opening Comments A1B. Categorical Funding Goals B1 – B4C. 2008/09 Ending Fund Balance C1 – C3D. Enrollment Comparisons D1 – D5E. Adjusting Our Budget E1 – E8F. Structural Balancing for 2010/11 F1 – F2

G. Other Issues G1 – G2H. Recommendations H

I. Appendix 1 - 6

ii

Opening CommentsOpening Comments• This report will update the Board on the latest

information available including a plan for the use of categorical resources

• The report will show how student enrollment is shaping up this year, what changes need to be made in the budget and how ending balances from 2008/09 will be allocated

• Budget strategies will be reported which can:− Extend one-time funded positions an additional year− Establish reserves for developing next year’s budget

• Staff will close with an update on the District’s 2008 Certificates of Participation (COP’s)

A1A1

CategoricaCategorical Funding l Funding

GoalsGoals

BB

ProcessProcess

• The process began in the Spring of 2009 with the understanding that resources would be much more limited

• A committee of District staff worked to develop:− Categorical Funding Goals − Prioritize those Goals

• A sub-committee reviewed available funding and matched appropriate funding sources with needs

B1B1

Identified GoalsIdentified Goals

• The following areas were identified as top priorities

− AB1802 Counseling− Adult Education− AVID− Benchmark Assessments− BTSA− Class Size Reduction− Community Relations− Curriculum− Elementary Support− English Language Support− Education Support Services− Fiscal Support

− District Indirect Costs − Intervention− Preschool (BB)− Professional Development− School Safety− Secondary Support− Student Services− Textbooks− Visual and Performing Arts − Site Allocations− Restricted Program

Reserves− Various Other Program

NeedsB2B2

FundingFunding

• The following Categorical funds were identified as sources:

− Adult Education− ASES− BTSA− CAHSEE− CBET− District Program Improvement− Drug Free Schools− Economic Impact Aid− English Language Acquisition Program− Gifted And Talented− IMF & Lottery Textbooks

− Mega Redirection− Federal Program

Improvement− School Safety & Violence

Prevention− School & Library Block

Grant Program− Supplemental Counseling− VAPA (on-going)− Title I - Basic Low Income − Title II - Teacher Quality− Title III - Limited English

Proficiency− Koalty Kids

B3B3

Next StepsNext Steps

• Using the budget revision process staff will make necessary adjustments− October 20, 2009 Board Meeting

• Staff will prepare site allocation notifications and distribute to site administrators− Elementary – October 21, 2009− Secondary – October 22, 2009

• Sites will complete and return School Site Plans

B4B4

2008/09 2008/09 Ending Fund Ending Fund

BalanceBalance

CC

Change In Unrestricted Change In Unrestricted Ending Fund Balances for Ending Fund Balances for 2008/092008/09

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

2006/ 07 2007/ 08 2008/ 09 2009/ 10

Beginning Balance Increase One-Time Deficit Funding Tier III

C1C1

Change In Unrestricted Change In Unrestricted Ending Fund Balances for Ending Fund Balances for 2008/092008/09

0500,000

1,000,0001,500,0002,000,0002,500,0003,000,0003,500,0004,000,0004,500,0005,000,000

2006/ 07 2007/ 08 2008/ 09 2009/ 10

Site & Dept. Carryovers Purchase Order Carryovers Required Changes

C2C2

Additional Tier III Sweeps Additional Tier III Sweeps PossiblePossible

C3C3

Description One-Time

I. Categorical Programs

21,619

A. School & Library Improvement $572,560B. Community Based English Tutoring 64,647

II. Total Additional Tier III Sweeps Possible $1,093,017

C. Alternative Credentialing

434,191D. Math & Reading Training

Enrollment Enrollment ComparisonsComparisons

ThroughThroughSeptember 25, 2009September 25, 2009

DD

All Grades All Grades

29,200

29,700

30,200

Ist W

eek

2nd

Wee

k

3rd W

eek

4th

Wee

k

5th

Wee

k

6th

Wee

k

7th

Wee

k

8th

Wee

k

9th

Wee

k

CBEDSNov

.

Dec.

Feb.

April

May

07/08 Budget 07/08 Actual 08/09 Budget08/09 Actual 09/10 Budget 09/10 Actual

D1D1

Elementary Elementary

14,700

15,000

15,300

15,600

07/08 Budget 07/08 Actual 08/09 Budget 08/09 Actual

09/10 Budget 09/10 Actual

D2D2

Middle Schools Middle Schools

4,150

4,200

4,250

4,300

4,350

4,400

4,450

4,500

4,550

07/08 Budget 07/08 Actual 08/09 Budget 08/09 Actual

09/10 Budget 09/10 Actual

D3D3

High Schools High Schools

7,500

7,700

7,900

8,100

8,300

1st W

eek

2nd W

eek

3rd W

eek

4th

Wee

k

5th

Wee

k

6th

Wee

k

7th

Wee

k

8th

Wee

k

9th

Wee

k

CEBDSNov

.

Dec.

Feb.

April

May

07/08 Budget 07/08 Actual 08/09 Budget08/09 Actual 09/10 Budget 09/10 Actual

D4D4

Other Programs & Other Programs & Schools Schools

1,600

1,800

2,000

2,200

2,400

1st W

eek

2nd W

eek

3rd W

eek

4th

Wee

k

5th

Wee

k

6th

Wee

k

7th

Wee

k

8th

Wee

k

9th

Wee

k

CBEDSNov

.

Dec.

Feb.

April

May

07/08 Budget 07/08 Actual 08/09 Budget 08/09 Actual

09/10 Budget 09/10 Actual

Does not include NPS or SernaDoes not include NPS or Serna D5D5

Adjusting Our Adjusting Our BudgetBudget

EE

2009/10 Enrollment 2009/10 Enrollment Projected vs. ActualProjected vs. Actual

DESCRIPTIONADOPTEDSTUDENTS CHANGE

ACTUAL*STUDENTS ADA

1. Regular K-6 15,20715,221 (13)(14)

2. Regular 7-8 4,2494,241 78

3. Regular 9-12 7,8887,800 8188

4. All Other Programs 2,1422,151 (29)(9)

5. Serna Charter School 291297 (6)(6)

6. Total Students 29,710 4067

*Enrollments as of September 25, 2009 *Enrollments as of September 25, 2009 includes non-public school studentsincludes non-public school students

29,777

E1E1

Summary of Normal Summary of Normal Expense Changes Due to Expense Changes Due to Actual EnrollmentsActual Enrollments

DESCRIPTION F.T.E BUDGET

1. Teacher Staffing $190,7342.37

8. Total Growth Expenses8. Total Growth Expenses $294,259$294,2594.304.30

3. Special Education Staffing 47,265.85

2. Per Pupil Allocations 8,281

E2E2

4. On Campus Support Staff 20,296.50

5. Custodial & Bus Drivers 17,842.38

6. Instructional Support Staff 5,097.10

7. Operations Support Staffing 4,744.10

Summary of Summary of On-GoingOn-Going ExpensesExpenses

Descriptions F.T.E BUDGET

1. Required Changes (*) $162,478

* Details are available* Details are available

2. Total On-Going Expenses2. Total On-Going Expenses $162,478$162,4782.402.40

E3E3

2.40

Summary of Summary of One-TimeOne-Time ExpensesExpenses

DESCRIPTIONSDESCRIPTIONS F.T.E.F.T.E. BUDGETBUDGET

1. Carryover of Site/Support Allocations (*)

2. Carryover of Department Allocations (*)

$525,536

732,108

* Details are available* Details are available

6. Total One-Time Expenses $1,337,916

4. General Reserve Requirements (3%) 49,762

3. Purchase Order Carryovers (*) 30,510

5. Required Changes (*) -0-

E4E4

Recapping of Increased Recapping of Increased CostsCosts

DescriptionDescription F.T.EF.T.E BudgetBudget

D. Total Estimated UsesD. Total Estimated Uses $456,737$456,7376.706.70

C. Increased One-time Costs

A. Growth Costs $294,2594.30

B. Increased On-going Costs 162,478

On-GoingOn-Going

$1,337,916

$1,337,916$1,337,916

F.T.EF.T.E

-0--0-

-0-

One-TimeOne-Time

BudgetBudget

$1,794,653$1,794,653

TotalTotal6.706.70

In AppropriationsIn Appropriations

F.T.E.F.T.E.

2.40

E5E5

On-GoingOn-Going Funding Funding SourcesSources

E. Total Estimated New E. Total Estimated New IncomeIncome

$222,878$222,878

NEW INCOME BUDGET

A. Net Growth Income $208,094

B. Special Education Growth 18,618

C. Class Size Reduction – Grades K-3 (8,940)

D. Lottery 5,106

E6E6

Other SourcesOther Sources

DescriptionDescription On-GoingOn-Going One TimeOne TimeTotalTotal

BudgetBudget

F. Total Other SourcesF. Total Other Sources $203,525$203,525 $2, 659,261$2, 659,261$2,455,736$2,455,736

A. Existing Carry Over Reserves $-0- $-0-

B. Ending Fund Balance 1,162,719 1,162,719

C. Tier III Categorical Sweeps $-0- 1,093,017

E7E7

1,093,017

D. Budget for Growth Positions (*)103,525 103,525-0-

E. Other Budget Reductions 100,000 300,000200,000

(*) Non-Teaching positions only

Recapping Where We AreRecapping Where We AreUnrestricted General FundUnrestricted General Fund

DescriptionsDescriptions On-GoingOn-Going TotalTotalOne-One-TimeTime

C. Total UsesC. Total Uses 456,737456,737 $1,794,653$1,794,6531,337,9161,337,916

E8E8

C. Total C. Total SourcesSources

$2,882,1$2,882,1

3939

$426,40$426,4033

$2,455,73$2,455,7366

A. Growth Related A. Growth Related SourcesSources

$222,878 $222,878B. Other SourcesB. Other Sources 203,525 2,659,261

2,455,736

E. Available For ReservesE. Available For Reserves ($30,334)($30,334) $1,087,486$1,087,486$1,117,820$1,117,820E. Available For ReservesE. Available For Reserves ($30,334)($30,334) $1,087,486$1,087,486$1,117,820$1,117,820

Structural Structural Balancing Balancing for for

2010/112010/11

FF

Structural Balancing –Structural Balancing – Unrestricted ResourcesUnrestricted Resources

F1F1

I. Reported on June 9, 2009 $6,741,296 $(6,741,296) $0

Description One-Time On-Going Total

II. State Adopted Budget Changes

832,291 (832,291) 0

A. Transportation Revenues 655,156 (655,156) 0

B. Title I ARRA 440,034 (440,034) 0

III. Total Adjusted Structural Balancing$13,641,534 $(13,641,534) $0

C. IDEA – Special Ed.

948,203 (948,203) 0D. Categorical Restoration

4,024,554 (4,024,554) 0E. Revenue Limit Deficit

Structural BalancingStructural Balancing Federal ARRA Federal ARRA ResourcesResources

1. Local $3,319,072

Descriptions

FTE Budget

14.90

D. Total Fed. ARRA

4. Total IDEA

A. Title I

B. Cate. Stabilization

$5,328,118

45.05

F2F2

2. Preschool (619) 115,5912.303. Preschool (611) 53,018.63

$5,157,732

FTE Budget

17.52

$3,487,681

$1,825,883

2,545,672

17.83

ONE-TIME ON-GOING

C. IDEA$750,502

9,93025,745

$1,840,43727.22

17.52

$786,177

$13,259,452

AWARD

$4,254,657

2,577,723

$5,816,686

209,726

400,660

$6,427,072

$2,773,602

Balance

$588,337

32,051

$1, 747,112

84,205321,897

$2,153,214

ARRA = America Recovery & Reinvestment Act

Other Other Financial Financial

IssuesIssues

GG

Certificates of Certificates of Participation (COPs) Debt Participation (COPs) Debt RepaymentRepayment

• Original PlanOriginal Plan− Lawrence Emergency Repairs− Tokay Repairs – Local Funding− Tokay Repairs – State Funding

• New PlanNew Plan− Lawrence Emergency Repairs

• State• District Ending Balances

− Tokay Repairs – Local Funding− Tokay Repairs – State Funding

$2,900,000

2,868,273

6,002,410

Williams

District annual pmts

State Facilities

State Williams Funds were used to pay costs in Deferred Maintenance Fund ($119,011) and Building Fund ($148,369). These funds will be moved into the Debt Services Fund for repayment of COPs.

$2,497,316

402,684

n/a

Williams

District

District annual pmts

State Facilities

$2,900,000

$11,770,683

G1G1

Debt Repayment Debt Repayment OptionsOptions

A. No Payoff of Debt PrincipalA. No Payoff of Debt Principal $389,678.13 to $1,188,912.50

OptionsOptions Annual PaymentsAnnual Payments

B. Reduce Debt Principal in Early YearsB. Reduce Debt Principal in Early Years $250,084.38 to $1,188,912.50

C. Reduce Debt Principal Proportionally Over All C. Reduce Debt Principal Proportionally Over All YearsYears $305,233.13 to

$937,512.50

Pros: Cons:

Cons:

1. Less cash on hand2. No identified funding stream in the future

1. Begin reducing debt

Pros:1. In early years debt payments are less

1. Payments remain high in later year

2. Begin eliminating debt

Cons:Pros:1. Overall debt is much lower

1. Payments are high in early years

2. Begin eliminating debt

G2G2

RecommendationsRecommendationsStaff Recommends:

1. Budget revisions be prepared to allocate categorical resources as identified by the committee work

2. Adjustments to the budget be presented for Board approval reflecting changes to enrollment projections and reported adjustments

3. $1,087,486 in identified one time resources be set aside in a reserve account to help get through the upcoming difficult budget cycle

4. Opportunities made available from Federal ARRA resources be used to reduce the need to reduce staffing to the greatest extent possible

5. Begin repaying COP’s debt as proposed in Option B• This reduces annual payment for the first years, providing

time for the State receipts to arrive H1H1

The EndThe End Before the Before the

Next Next BeginningBeginning

iiii

AppendixAppendix

iiiiii

Funding by Goal & Funding by Goal & ResourceResource

GOAL

AD

UL

T

ED

UC

AT

ION

AS

ES

BT

SA

CA

HS

EE

CB

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DIS

T.

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(UN

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DR

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FR

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CH

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EIA

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EIA

-SC

E

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NT

RA

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FU

ND

S

District Indirect Costs $52,644 $149,143 $11,452 $5,898 $99,662 $39,780

Adult Education $28,377AVID $135,892Benchmark Assessments $197,912BTSA $175,075Community Relations $85,733Curriculum $101,466Elementary SupportEnglish Language Support $3,528,416 $140,187Ed. Support Services $30,550 $9,769

Fiscal Support $9,477

Intervention $106,170Professional Development $50,000 $1,200,000School SafetySecondary Support $264,518 $410,820 $22,362Site Allocation FundsRestricted Program Reserve $55,343 $65,888 $1,161,856 $200,995Various Program Needs $1,855,732 $2,894,687 $99,425 $138,158

$1,936,753 $3,150,000 $241,870 $264,518 $99,425 $336,070 $157,519 $5,250,754 $1,428,584 $461,894

11

Funding by Goal & Funding by Goal & Resource Resource (cont.)(cont.)

GOALE

LA

P

GA

TE

IMF

& L

OT

TE

RY

T

EX

TB

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GA

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District Indirect Costs $13,559 $9,911 $17,933 $33,004 $37,713

AB1802 Counseling $940,142AVID $35,113Community Relations $91,349Elementary Support $271,240English Language Support $44,528Ed. Support Services $117,755

Fiscal Support $15,795Professional Development $227,329 $3,911,412 $13,637School Safety $470,299Secondary Support $67,485 $12,000

Textbook Support $26,401VAPASite Allocation Funds $228,292 $191,788Restricted Program Reserve $4,863 $250,560Various Program Needs $6,843 $59,638

$286,379 $237,240 $3,911,412 $81,994 $59,638 $584,444 $697,067 $1,240,415

22

Funding by Goal & Funding by Goal & Resource Resource (cont.)(cont.)

GOAL VA

PA

ON

-GO

ING

TIT

LE

I -

BA

SIC

L

OW

IN

CO

ME

TIT

LE

II

- P

AR

T

A,

TE

AC

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TIT

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KID

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TO

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District Indirect Costs $20,054 $307,033 $72,513 $16,714 $887,013

AB1802 Counseling $940,142

Adult Education $28,377AVID $52,526 $223,531Benchmark Assessments $11,000 $34,053 $242,965BTSA $175,075Class Size Reduction $1,368,900 $1,368,900Community Relations $177,082Curriculum $101,466 $101,466 $101,464 $405,862Elementary Support $271,240English Language Support $569,359 $4,282,490Ed. Support Services $3,583,018 $3,741,092

Fiscal Support $18,953 $44,225

Intervention $106,170Preschool (BB) $450,431 $450,431Professional Development $578,340 $1,027,327 $186,553 $7,140,282School Safety $470,299Secondary Support $226,476 $18,635 $961,311Student Services $111,503 $111,503

Textbook Support $26,401VAPA $842,289 $842,289Site Allocation Funds $1,984,081 $2,404,161Restricted Program Reserve $341,005 $130,863 $2,298,989Various Program Needs $5,054,483

$862,343 $8,556,251 $1,779,787 $1,023,588 $34,053 $32,383,07333

Categorical Funding Categorical Funding ––

Site Goals Site Goals

1. K-6 Support Teachers $3,319,072

$5,409,806

Descriptions

Basic

D. Total Fed. ARRA

4. Intervention & ELD Teachers 9-12

B. Title IC. Cate. Stabilization

2. ELD Coach 115,591

3. Equity Initiative K-12 134,706

$5,451,817

ELAP

$3,569,369

1,825,883

2,545,672

TITLE I

$944,266

10,051125,945

1,840,437

$1,080,262

$5,451,817

EIA

1,825,883

2,545,672

$944,266

10,051125,945

$1,080,262

$2,480,780

ARRA

588,33732,051

$1,628,551

86,652145,189

$1,860,392

44

Title I - Title I - ($4,254,657)($4,254,657)

1. Counselors K-6 $360,034

$1,840,437

Descriptions FTE Budget4.26

27.22

9. Total Title I

a. Beyond Requirement

*

* Included in the Adopted Budget

4. Supplemental Ed. Svcs. (20%)

5. Parent Involvement (1%)

6. Program Improvement (10%)

7. Professional Dev. (5%)

8. Indirect Support Services

2. Teachers - CSR 1,368,90021.56

3. Nurses 111,5031.40

$1,825,883

FTE Budget

1.00

294,206

850,931

42,547

425,466

212,733

201,445

1.00

ONE-TIME ON-GOING

10. Reserved to Fund On-Going Needs $588,337

55

Individuals with Disability Individuals with Disability Education Act (IDEA) - Education Act (IDEA) - ($5,816,686)($5,816,686)

1. Para Educators - RSP $277,818

$3,319,072

Descriptions FTE Budget10.00

14.90 14. Total

* Included in the Adopted Budget

2. Program Specialists 133,5521.533. Nurses 139,3791.75

5. Budget Technician 17,690.28

9. Transportation Services 655,15610. Special Ed. Encroachment 1,782,376

13. Indirect Support Services

*

*

11. Vice Principal (3 sites) 123,1821.2112. Special Education Encroachment 1,782,376

$750,502

FTE Budget

275,402

ONE-TIME ON-GOING

6. Typist Clerk 4,565.13 *7. Supplies/Services 185,35410,1008. Capital Outlay 397,500

4. Capital Outlay 67,500

66

Categorical Restoration - Categorical Restoration - ($2,577,723)($2,577,723)

1. Serna Allocation $25,262

$2,545,672

Descriptions FTE Budget

17.52

6. Total Categorical Restoration

* Included in the Adopted Budget

2. Library Media Assistants K-6 531,38713.52

3. Library Media Teachers (9-12) 416,8164.00

4. Restore Temporary Categorical Flex. 1,522,233

5. Indirect Support Services 49,974

*

*

77