State Budget

Business ServicesOctober 13, 2010

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Month 1 Enrollment History

31,968 31,92831,729

31,95632,103

32,500

30,000

30,500

31,000

31,500

32,000

32,500

33,000

33,500

34,000

34,500

35,000

2005/06 2006/07 2007/08 2008/09 2009/10 2010/11

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FUSD Revenue Limit Per ADA

$5,127.57

$5,533.82

$5,785.82

$5,635.17

$4,953.36 $4,940.43

$4,400.00

$4,600.00

$4,800.00

$5,000.00

$5,200.00

$5,400.00

$5,600.00

$5,800.00

$6,000.00

2005-06 2006-07 2007-08 2008-09 2009-10 2010-11

Base Revenue Limit per ADA

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FUSD General Fund Revenue

$235.4

$250.7

$277.8

$269.2$266.6

$237.2

$210.0

$220.0

$230.0

$240.0

$250.0

$260.0

$270.0

$280.0

$290.0

2005-06 2006-07 2007-08 2008-09 2009-10 2010-11

Revenue in Millions

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Federal Jobs Bill - Senate Bill (SB) 847

SB 847 provides the California Department of Education (CDE) with the authority to allocate $1.2 billion from the federal Education Jobs Fund to school districts. These funds will be distributed based on the state's revenue limit formulas.

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Federal Jobs Bill - Senate Bill (SB) 847

Approximately $6 Million is earmarked for Fremont Unified School District

The District received $5.4 Million on Monday

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2010-11 State Budget Highlights

No cuts to revenue limits

Negative COLA will reduce the deficit factor, but not reduce revenue limits

$270.00 per ADA or about $9 million more dollars for Fremont USD

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Revised Revenue Limit for 2010-11

$5,127.57

$5,533.82

$5,785.82

$5,635.17

$4,953.36 $4,940.43

$5,210.84

$4,400.00

$4,600.00

$4,800.00

$5,000.00

$5,200.00

$5,400.00

$5,600.00

$5,800.00

$6,000.00

2005-06 2006-07 2007-08 2008-09 2009-10 2010-11

Base Revenue Limit per ADARevenue Limit per ADA - May ReviseRevenue Limit per ADA - State Adopted Budget

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2010-11 State Budget Highlights

$100 million in payments to districts for the 2010-11 mandate payments

$200 million allocated to districts on a per ADA basis. This money will go to all LEAs, but will count toward any outstanding mandate claims, starting with the oldest claims first. But even if a district has no claims, the money will still go out per ADA

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2010-11 State Budget Highlights

It is a “Get Out Of Town” Budget It is very reminiscent of the State

Budget of two years ago, that was great until February when the mid year cuts came to pass

It assumes over $5.3 Billion in revenue from the Federal Government

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2010-11 State Budget Highlights

It assumes that the State will raise over a billion dollars from sale of state buildings that they will lease back

It depends on an improving economy in 2011-12

It defers $1.7 Billion into 2011-12

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Revised 2010-11 DeferralsRevised 2010-11 Deferrals

* Inclusive of categorical funds Note: An additional deferral for K-12 of $1.7 billion from 2010-11 into 2011-12 fiscal year

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CASH FLOW PROBLEM

SOLUTION

Tax Revenue Anticipation Note (TRAN)

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PROBLEMPAYBACK

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Moody’s Investor Services addressed concern in a recent publication, “Application of Moody’s Short-Term Note Methodology to California TRAN Issues.” Moody’s states that “the primary risk associated with a TRAN is the predictability and sufficiency of the deferred revenues as a source of repayment is weak at best.”

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FLEXIBILITYCONCLUDES

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Categoricals – Now and Later

1/3 of the Budget Five years is almost up

K-3 CSR flexibility goes away for 2012-13 in the Multiyear Projection (MYP)

All the rest goes away for the June 2013 district budget

Proposed end dates are causing deeper cuts now

Will they be extended?

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CONCLUSION

State Budget does not solve State nor FUSD problems

There are more adjustments required