Upload
azalia-lawrence
View
41
Download
0
Tags:
Embed Size (px)
DESCRIPTION
Governor’s Proposed Budget 2010-11. Steve Bolman Deputy Supt., Business and Administration Midge Hoffman Director, Budget & Accounting. The Economy. Signs indicate that most of the nation is recovering…California not so much California Unemployment at 12.3% compared to 10% for the U.S. - PowerPoint PPT Presentation
Citation preview
Governor’s Proposed Budget
2010-11Steve Bolman
Deputy Supt., Business and Administration
Midge Hoffman
Director, Budget & Accounting
The Economy
• Signs indicate that most of the nation is recovering…California not so much– California
Unemployment at 12.3% compared to 10% for the U.S.
– DOF estimates rate to remain above 10% through 2011
-206
-118
-70
-28
-283
Government
Financial Service
Leisure & Hospitality
Industrial Sectors (Jobs in Thousands)
Manufacturing
Construction
Employment Trends December 2007 to November 2009
Recovery
The Economic Cycle
Stabilization
December2007
Spring2010
2015
5-year return to December 2007
Governor Vows to Protect Education!!!
• Education will take less than it’s share of pro-rata cuts in 2010-11
Priorities
• Governor states that prison expenses will no longer be higher than higher education expenses, but speaks nothing about K-12 and the fact that it is next to dead last in funding in the Nation
GOOD NEWS!!!
• No Mid-Year cuts for 2009-10!!!
• Decrease in Prop 98 offset by sweep of underutilized K-3 CSR funds
GOOD NEWS!!!
•FUNDED COLA for 2010-11!!!
BUT WAIT, THIS GOOD NEWS DIDN’T LAST VERY LONG…
• If only it were real
• …the COLA is being ‘funded’ because it’s
negative• -.38% cut to the
Revenue Limit
GOOD NEWS THAT DIDN’T LAST
• The previous 2010-11 COLA reported was .5% positive…a negative swing of .88%– Elementary - $109K– Secondary - $318K– Cherry Valley - $17K– TOTAL - $444K
2011-12 COLA
• 2011-12 COLA re-benched to 1.8% from 2.4% - <.6%> decrease– Elementary - $ 66K– Secondary - $182K– Cherry Valley - $ 10K– TOTAL - $258K
• Cumulative Loss for 2010-11 & 2011-12 = $1.15 Million
It feels good to be “Protected”…or does it?
• “Protected” doesn’t mean no new cuts
NO CUTS FOR THE ‘PROTECTED’ EDUCATION BUDGET ???
• The one-time revenue limit cut of $252.83 per ADA in 2009-10 is deleted for 2010-11 … BUT
• This is being replaced by another on-going cut …
NO CUTS FOR THE ‘PROTECTED’ EDUCATION BUDGET ???
• The $1.5 B cut is to come from “District Administration”– $191 Elementary– $231 Secondary
• An additional loss of $1.5 M for the District
• This on-going additional cut won’t increase the revenue limit deficit factor – there’s no payback
NO CUTS FOR THE ‘PROTECTED’ EDUCATION BUDGET ???
• No basis in reality for this figure
• Only gives the
‘appearance’ that the Governor is keeping cuts from the classroom
• Would eliminate 3 out of every 4 positions in the District Office
NO CUTS FOR THE ‘PROTECTED’ EDUCATION BUDGET ???
• For example, The Business Office Staff is comprised of:– 2 Payroll– 2 Accounts Payable– 1 Budget Tech– 1 District Accountant– 1 Purchasing Coordinator– 1 Business Manager
• NOW, PICK TWO PEOPLE TO PRODUCE PAYROLL,PAY BILLS, MAKE DEPOSITS, BUY BOOKS & SUPPLIES, BALANCE & MANAGE THE BUDGET,MAKE SURE WE HAVE CASH, ENSURE INTERNAL CONTROLS AND SO ON…
2009-10 2010-11 2011-12
Elementary $
506,199 $
496,647 $
565,488
Secondary
$ 1,294,045
$ 1,197,129
$ 1,301,941
Cherry Valley
$ 82,541
$ 85,865
$ 97,431
$ 1,882,785
$ 1,779,641
$ 1,964,860
$253/ADA $245/ADA $278/ADA
Revenue Update - LossesSince 1st Interim
Revenue Limit Changes
Per-ADA Revenue Change
-15%
-10%
-5%
0%
5%
10%
15%
1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11
Year
Incr
ease
to th
eB
ase
Rev
enue
Lim
it Pe
r AD
A
Average
-13.9% from 2007-08
Revenue Limit Changes
Average Unified District
$6,387$6,411$6,150
$5,821
$5,821
$5,668
$4,981 $5,014
$4,000
$5,000
$6,000
$7,000
2007-08 2008-09 2009-10 2010-11
Dol
lars
Per
AD
A
Projected Statutory COLA
Flat Funding
Actual Funding
Loss of COLA
Loss of baseline dollars
$566
$807
$1,373$1,430
$482
District Options/Flexibility
• Reduce calendar by 5 days through 2012-13
• Tier III Categorical funding can continue to be used with flexibility through 2012-13
• Eliminate Deferred Maintenance Transfer
• Reduce Reserve for Economic Uncertainties
State Problems & Solutions
Problems and Solutions (in billions)
Reason for Shortfall Proposed Solutions
$19.9 $19.9
$1.0 Build Reserve
$2.3 Lost Budget Solutions
$3.9 Alternative Funds
$0.6 Fund Shifts
$1.4 Caseload Growth
$6.9 Operating Shortfall in 2009-10
Budget Act Revision
$3.4 Revenue Decline
$4.9 Adverse Court Decisions
$6.9 Federal Funds
$8.5 Expenditure Reductions
Problems with Assumptions – Pick your Metaphor…
• More Gimmicks• Funding Shifts may
be legally challenged• May not see $6.9 B
from the Federal Government
• When will the State figure out they’re out of smoke & mirrors?
2009/2010 2010/2011 2011/2012
TOTAL INCOME $64,391,563 $61,419,468 $61,105,833
LESS TOTAL EXPENSES $67,197,801 $66,133,400 $66,399,713
NET INCREASE (DECREASE)
$ (2,806,238)
$ (4,713,932)
$ (5,293,880)
PLUS BEGINNING BALANCE $12,786,321 $ 9,980,083 $ 5,266,151
EQUALS ENDING BALANCE $ 9,980,083 $ 5,266,151
$ (27,729)
Less RESERVES
(3,062,888)
(2,877,089)
(2,775,650)
UNAPPROPRIATED $ 6,917,194 $ 2,389,062
$ (2,803,380)
Trends with Revenue Cuts
Average Daily Attendance
2009/2010 2010/2011 2011/2012
COLA 4.25% -0.38% 1.80%
18.355% Deficit 18.355% Deficit
18.355% Deficit
Elementary ADA
2,002
2,027
2,034
Cherry Valley ADA
350
350
350
Secondary ADA (funded)
5,058
4,886
4,683
Total ADA
7,410
7,263
7,067
Net Change over Prior Year
(32)
(147)
(196)
2009/2010 2010/2011 2011/2012
TOTAL INCOME $64,391,563 $61,419,468 $61,105,833
LESS TOTAL EXPENSES $67,197,801 $64,914,400 $65,180,713
NET INCREASE (DECREASE) $ (2,806,238) $ (3,494,932) $ (4,074,880)
PLUS BEGINNING BALANCE $12,786,321 $ 9,980,083 $ 6,485,151
EQUALS ENDING BALANCE $ 9,980,083 $ 6,485,151 $ 2,410,271
Less RESERVES (3,062,888) (2,840,519) (2,739,080)
UNAPPROPRIATED $ 6,917,194 $ 3,644,632 $ (328,810)
Trends with 2.75% Salary Cut for All Employees