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First Interim ReportDecember 15, 2011
Tonight’s PresentationDistrict’s first interim report
To provide a summary to the Board of our current financial situation with updated assumptions and projections
District’s multi-year outlookTo provide a summary to the Board of the
assumptions of multi-year projectionsPresentation of E-2
Identification of the budget reductions and fiscal plan for the San Diego County Office of Education
BudgetMost change occurs from the adoption of the
Budget (July 1st) until the First Interim Report State of California Budget is not even signed
Adopted budget had a revenue limit reduction built in Increased revenue limit is the largest change
Previous year’s Budget is not finalized Unspent dollars from the previous year needs to be
budgeted in current year Changes to expenses due to carryover is the largest
changeInformation on other budget items are not
known Final cost increases of health care Summer time resignations enrollment
The 2011-2012 Budget, First Interim TotalsTotal Revenues $46,217,387Total Expenses $53,248,092Difference ($ 7,030,705)
Transfer from Fund 17 $ 986,000
Beginning Balance $ 8,194,395Ending Balance* $ 2,149,690
*Projected Ending Balance for June 30, 2011
Carryover Factored Into BudgetCarryover in Budget*
Site/Dept. Carryover $ 666,713.12Formerly Restricted Cat. $ 1,214,769.74Restricted Cat. $ 1,285,009.66Total $ 3,166,492.52
Consists of budgeted expenditures, no new revenues Revenues are from previous years
*From 2009-2010 Unaudited Actuals (page 2), which was presented to the Board in August 2010
Multi-Year ProjectionsState requires each district to project out
current year and next two fiscal years to maintain fiscal health and to identify any significant issues
RUSD’s reserve meets State’s requirement for 2011-2012Triggers?
RUSD’s reserve will not meet the State’s requirement for 2012-2013Qualified Status: A district might not be able to
meet its financial obligations for the current and two (2) additional years
Our current projections2011-12 2012-13 2013-14
Revenue 46,217,387 46,102,060 46,993,484
Expenses 49,905,240 51,075,908 52,456,308
Difference 3,687,853 4,973,848 5,522,824
Carryover Expenses 3,342,852 0 0
Reserve Fund Above 3% Min.
986,000
0 0
Beg Balance 8,194,395 2,149,690 2,824,158
Ending Balance 2,149,690 2,824,158 8,346,9827
Assumptions for 2012-2013Revenue
Same revenue formula as this yearAdd a 2% Cost-of-Living increaseNo mid-year triggersContinued declining enrollment
ExpensesIncrease in health care costs (10%)Step & Column salary increases
8
Basic problemRecent trend of state revenue falling below
district’s annual expensesSupported by ARRA, Federal Jobs Bill, State
budget tricksAnnual costs
Declining student enrollment 100 students = $523,000
Rising health care costs (10% = $558,000)Step & Column for all employees ($538,000)
9
San Diego County Office of EducationIn June 2010, SDCOE had 3 conditions for the
approval of the RUSD 2011-20122 Budget1. Adopt a resolution which identifies the
amount of budget reductions needed2. Submit the list of reductions that have been
made and the timetable for making remaining reductions
3. Submit a list of Board approved budget reductions which corrects the 2011-2012 imbalance
Current Year Reductions One-time reductions
District and site grantsMid-year retirementsReduce long-term sub payIMFRP carryover – 100%SLIP carryover – 90%Site/Dept allocation carryover – 90%Ed Services carryover – 100%
No Cuts to carryover from lottery, GATE, donations, or Outdoor Ed
TOTAL: $ 1,751,000 (one-time, only)11
Spread over three years One-time reductions will be spread over
three years:2011-12 (current year)2012-132013-14
Feels like an annual ongoing savings of:
Annual TOTAL: $ 583,000
12
Proposed reductions for 2012-2013Site allocation for IMFRP (50%)BTSAEd Services allocationsSocial Security alternative (PERS rule)
No Cuts to basic site allocation, basic SLIPTOTAL: $195,000
13
Student bussingContinue to streamline transportation
services, including possible increase of student fees
TOTAL: $100,000 (or more)
Note: Complete elimination of bussing for General Ed students may save as little as $300,000.
14
Avoid replacing retireesMaintain selected vacancies:Administrative positionsClassified positionsCertificated positions
Most elementary classroom positionsSelected secondary classroom positions
TOTAL: $ 700,000
15
Reduction in Force Administrative positions Classified positions Certificated positions
IssuesPer diem pay for tenured teachersClass size penalties for K-3 CSRClass sizes approaching maximum levelsNeeds of our children
TOTAL: $ 500,000
16
Potential ongoing reductions$ 583,000 One-time site/dept
reductions 195,000 Ongoing site/dept reductions 100,000 Student transportation 700,000 Retirees 500,000 Layoffs
TOTAL: $2,078,000
17
Employee concessionsReduction of salaries (via furlough days or
across-the-board cuts)Contribution toward benefits
TOTAL: $2,500,000 (from 2012-13 values)
18
The Board’s objectivesRestructure the District budget for the long
view Maintain maximum support for educational
programs and studentsSupport employees to the fullest extent
possible – in light of the challenging fiscal dilemma
19
QuestionsQuestions?
Comments?
Concerns?
20
In SummaryStaff is recommending the Board’s approval
of item E-1 First Interim ReportStaff is recommending the Board’s approval
of item E-2 reduction plan to be submitted to San Diego County Office of Education