Budget Development Building Blocks
FY07/08
Communicating our budget and budget development process to our staff and our community
Alameda Unified School District
Purpose
1. To present basic information and an over-view of the AUSD’s budget development process
2. To inform the community about our district’s finances in a user-friendly format
This presentation was created with two goals in mind –
The Checkbook
What is a budget? A budget is a spending plan. School districts develop spending plans for every fiscal year (July 1 – June 30).
Our spending plan has components similar to your checkbook. It includes estimates of anticipated revenues and planned spending.
The Checkbook AUSD Budget
Deposits/
Income
Revenue
Checks Written/ Expenses
Expenditures
Balance at End of Page
Ending Balance
Balance Brought Forward to New
Page
Beginning Balance
Our budget is our best guess of the income we will earn and the checks we will write. It changes just like the needs in a house-hold will change.
The Checkbook
What is a multi-year projection? A multi-year projection is our best guess of the income we will earn and the checks we will write over an extended period of time (three years).
July 1, 2006 – June 30, 2007
July 1, 2007 – June 30, 2008
July 1, 2008 – June 30, 2009
July 1, 2009 – June 30, 2010
Deposits/
Income
Deposits/
Income
Deposits/
Income
Deposits/
Income
Checks Written/ Expenses
Checks Written/ Expenses
Checks Written/ Expenses
Checks Written/ Expenses
Balance at End of Page
Balance at End of Page
Balance at End of Page
Balance at End of Page
Balance Brought Forward
Balance Brought Forward
Balance Brought Forward
Balance Brought Forward
The Annual Budget Cycle
Budget
Adoption
Unaudited
Actuals
Audited
Actuals
Revised
Budget
First
Interim
Second
Interim
At each period, we:
• Update budget
• Certify our financial condition
• Present summary to Board of Education
• Submit copies to County Office of Education and State
The Annual Budget Cycle
Period Finances as of Description
Adopted Budget
July 1 The Board of Education is required by law to adopt a budget by July 1.
Revised Budget
Signing of State Budget
Act
We are required by law to update our adopted budget within 45 days that the Budget is signed into law.
1st Interim October 31 Update budget and certify the state of our finances
2nd Interim January 31 Update budget and certify the state of our finances
3rd Interim April 30 Applies only to districts with Qualified or Negative Certifications
Unaudited Actuals
June 30 Includes all transactions processed during the fiscal year
Audited Actuals
June 30 An independent auditing firm audits the financials statements prepared by the district and issues an opinion regarding their accuracy.
Certification Status
At Interim Reporting Periods:
• Positive – District will be able to meet its financial obligations for the current and two subsequent years
• Qualified – District may not be able to meet its financial obligations for the current or two subsequent years
• Negative – District will be unable to meet its financial obligations for the current fiscal year or subsequent year
Our District’s Funds
Other funds have very specific purposes and are very limited in use. Consequently, transfers between funds are subject to strict legal limitations and Board policy.
Most day-to-day financial
transactions are found in the
General Fund (Fund 01).
The district maintains a total of 12 different funds to record its financial transactions.
Each fund is a separate financial entity with its own set of financial records.
Our District’s Funds
OPERATING FUNDS CAPITAL FUNDS
Fund Description Fund Description
01 General Fund 14 Deferred Maintenance Fund
08 Regional Occupational Program
21 Building Fund
09 Charter School Fund (Alameda Community Learning Center)
25 Capital Facilities Fund
11 Adult Education Fund 35 County Schools Facilities Fund
12 Child Development Fund 40 Capital Reserve
13 Food & Nutrition Services Fund
51 Bond Interest & Redemption Fund
Building Our Budget
Our district’s budget is only as good as the assumptions
used in projecting revenues and
expenses.
Many of the items that impact the district’s budget are unknown until AFTER the district is required to adopt a budget. Thus, the district must use a series of assumptions about those items in order to develop the budget.
The accuracy of the proposed budget is only as good as the assumptions used in its development. If the assumptions are faulty, the budget will be inaccurate. Accordingly, the initial assumptions are carefully considered and revised throughout the year as more information becomes available.
Major Assumptions - Included
Assumption Expenditures Revenue
Enrollment
Utilities
Property & Liability Insurance
Step & Column
Mandatory Benefits Consumer Price Index (CPI) Average Daily Attendance (ADA) Cost of Living Adjustment (COLA)
Major Assumptions - Excluded
Assumption Expenditures Revenue
One-Time X X
Carryover X X
Negotiated Salary Increases X
Growth in Special Education Encroachment
X
Certificated Salaries63%
Classified Salaries13%
Benefits16%
Books & Supplies1%
Services7%
Unrestricted Expenditures - $54,908,112
General Fund Expenditures
As of Second Interim
Excludes $83,538 of Other Outgo and Indirect/Direct Support Costs
Unrestricted General Fund Expenditures
Personnel92%
Non-Personnel8%
Personnel - $50,646,478Non-Personnel - $4,378,289
Utilities
Insurance
Supplies/Equipment
As of Second Interim
Excludes $83,538 of Other Outgo and Indirect/Direct Support Costs
$1.9M
$0.7M
$0.7M
Enrollment & School Site Staffing
Enrollment projections prepared by Cabinet
and Principals are used as the basis for staffing
allocations.
School site staffing is comprised of two types –
1.) Administrative staffing
2.) Enrollment-based staffing
Administrative staffing consists of positions responsible for the operations of the site (e.g., management, clerical, and custodial staff).
Enrollment-based staffing consists of positions responsible for instructional and student support at the site (e.g., classroom teachers and clerical staff).
School Site Staffing
Principal Classroom Teacher
Vice Principal Other Clerical
Office Manager II Health Office Assistant
Media/Library
Custodial
Counselor
Administrative staffing Enrollment-based staffing
Mandatory and Employer-Provided Benefits
Benefit Item Rate
State Teacher Retirement System (STRS) 8.250%
Public Employee Retirement System (PERS) 9.306%
Federal Insurance Contributions Act (FICA) 6.200%
Medicare 1.450%
Health &Welfare (H&W) 6.860%
State Unemployment Insurance (SUI) 0.050%
Workers Compensation 1.850%
Public Employee Retirement System Reduction
(PERS Reduction)
3.714%
Enrollment & School Site Discretionary Funds
School site discretionary funds are used to support site operations, such as
classroom supplies, office supplies, and copy costs.
School site discretionary funds are determined by grade-level enrollment projections and grade-level per pupil allocations.
Per Pupil Allocations
K-5 $24.76
6-8 $45.77
9-12 $81.73
School sites also receive funds for custodial supplies, as determined by facility square footage, use, and grade-level enrollment projections.
General Fund Revenues
Revenue Limit64%
Federal8%
Other State17%
Local11%
Total Revenue$83,181,089
Our BRL is a specific dollar amount the state gives us based on the number of days students attend school.
Our income is based on our average daily attendance (ADA) - not the number of students enrolled.
Our primary source of revenue is the Base Revenue
Limit (BRL).
As of FY06/07 Second Interim
Base Revenue Limit and ADA
10,49810,400 10,382 10,354
10,183
9,952 9,912
10,203
10,082
9,982 10,024
9,756
9,476 9,485
8,800
9,000
9,200
9,400
9,600
9,800
10,000
10,200
10,400
10,600
2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07
Enrollment at CBEDS P2 ADA
Difference between Enrollment and ADA results in a loss in revenue.
Example for FY06/07(427) ADA X $5525 BRL = ($2.4M)
Loss of 427 ADA
Unrestricted General Fund Revenues
Federal0%
Other State10%
Local6%
Revenue Limit84%
Unrestricted Revenue
$61,463,985
Our primary source of unrestricted revenue is the
Base Revenue Limit (BRL).
As of FY06/07 Second Interim
Revenue Limit
Revenue Limit Sources
$51.7M
Other State
Lottery $1.3M
Class Size Reduction – Grades K-3
$2.8M
Class Size Reduction – Grades 9
$0.3M
Local
Parcel Tax $3.2M
Restricted General Fund Revenues
Federal29%
Local25%
Other State36%
Revenue Limit10%
Restricted Revenue
$21,717,105
Our primary source of restricted revenue (i.e., categorical funds) is the State. These funds have
restrictions on their use.
As of FY06/07 Second Interim
Revenue Limit
Revenue Limit Sources $2.1M
Federal
Title I $1.4M
Special Education $1.9M
Other State
Gifted and Talented $0.1M
Lottery $0.3M
Instructional Materials $0.7M
School/Library Improvement $0.7M
Special Education $5.6M
Local
Donations $0.3M
Contributions to Restricted Programs
Revenue68%
Contribution32%
Restricted programs are like mini-funds and should be self-sustaining – expenditures should match revenues. When expenditures exceed revenue, a contribution is made to the restricted program.
As of FY06/07 Second Interim
Additional Information
• Have suggestions about improving this presentation? Please share your thoughts with us at [email protected].
• Need prior presentations or budget information? Our budget documents are posted on our website.
• Need additional information? Please contact Business Services at (510)337-7066 or [email protected].