December 15, 2010. Financial Overview of General Fund October State Adopted Budget Cash Flow Issues Multi-Year Projections Based on States October Budget

December 15, 2010

Agenda Financial Overview of General Fund

October State Adopted Budget Cash Flow Issues Multi-Year Projections

Based on State’s October Budget Based on most likely scenario in January 2011

District’s Plan Federal Jobs Funds Class-Size Reduction K-3 2012-2013 Fiscal Year

12/7/10 22010-11 First Interim

General Fund Overview

12/7/102010-11 First Interim 3

Combined General Fund

(in millions) 2009-10 Actuals

2010-11 Adopted Budget

2010-11 First

Interim

Change

a. Beginning Balance $ 28.9 $ 23.1 $ 26.2 $ 3.1

b. Revenues $ 177.3 $ 164.7 $ 174.9 $ 10.2

c. Expenses $ 180.0 $ 168.5 $ 177.4 $ 8.9

d. Surplus/(Deficit) ($ 2.70) ($ 3.8) ($ 2.5) $ 1.3

e. Ending Balance $ 26.2 $ 19.3 $ 23.7 $ 4.4

f. Economic Uncertainty $ 5.4 $ 6.5 $ 5.3 ($ 1.2)

g. Restricted Balances $ 10.5 $ 2.3 $ 2.2 ($ 0.1)

h. Other Reserves * $ 10.4 $ 10.5 $ 16.2 $ 5.7

Amount Reduced = -$ Revenue Additions = 5,409,136$ 9,609,136$ 5,409,136$

Unaudited Unaudited Budget Projected Projected2008-09 2009-10 2010-11 2011-12 2012-13

Beginning Balance 21,687,938$ 28,863,989$ 26,259,904$ 23,731,452$ 18,126,446$

Revenues & Sources 200,748,571$ 177,360,771$ 174,899,859$ 173,337,116$ 171,004,567$

Expenditures 193,572,520$ 179,964,856$ 177,428,311$ 178,942,122$ 183,283,288$

Proposed Reduction -$ -$ -$ -$

Surplus/(Deficit) 7,176,051$ (2,604,085)$ (2,528,452)$ (5,605,006)$ (12,278,721)$

Ending Balance 28,863,989$ 26,259,904$ 23,731,452$ 18,126,446$ 5,847,725$

3 % Reserve 5,807,176$ 5,398,946$ 5,322,849$ 5,368,264$ 5,498,499$

Revenue Limit Increase: 5,409,136$ 5,409,136$ 5,409,136$ Federal Jobs Funds 4,200,000$

Totals 5,409,136$ 9,609,136$ 5,409,136$

Assumptions:2010-2011 Revenue Limit increase from the District 2010-11 Adopted Budget by $270 per ADA

Federal Jobs Funds will be deferred until 2011-12

2011-2012 No Increase in Revenue Limit fundingEnrollment/ADA is down due to prior year declineFederal Jobs Funds will be used in 2011-2012 to offset positions funded by ARRA Funds13 more Certificated (HTA) positions are eliminated per HTA agreement

2012-2013 No Increase in Revenue Limit FundingNo new Federal Jobs FundsFurlough Days and Salary Reductions continue for all employeesNo additional reductions in Salaries & BenefitsReinstate K-3 CSR staffing to 20:1 due to expiration of Flexibility

Based on October 2010 Approved Budget


Cash


General Fund Cash Shortfall anticipated in June Mid-month cash balances in December

through June will be significantly lower than month-end cash balances shown on cash flow analysis $15 million TRAN issued on July 1, 2010 to be re-

paid by March 2011 $15 million mid-year TRAN available in March

2011 to be repaid by September 2011 Federal Jobs money help to mitigate cash

flow problems in current year


First Interim


Multi-Year Projection (in millions)

First Interim Multi-Year Projection Assumptions - Likely Scenario 2010-11 (Scenario if Budget is Reduced in January)

2010-11 projection Mid-year reduction to Revenue Limit of at least $270/ADA

(If Prop 98 is reduced there could be an additional $330/ADA reduction)

2011-12 Reduced Revenue limit at 2010-11 level Federal Jobs funds used to backfill expired ARRA funds

2012-13 Revenue limit at 2010-11 level Ending balance projected at ($9.2) million Federal Jobs money depleted Reinstate K-3 CSR to 20:1 staffing ratio (Flexibility Expires) Bargaining unit agreements continue reduced salaries/work year All other flexibility options expire June 2013, including:

175 day school year Categorical flexibility Required contributions to routine/deferred maintenance


Amount Reduced = -$ Revenue Additions = -$ 4,200,000$ -$

Unaudited Unaudited Budget Projected Projected2008-09 2009-10 2010-11 2011-12 2012-13

Beginning Balance 21,687,938$ 28,863,989$ 26,259,904$ 18,322,316$ 7,308,174$

Revenues & Sources 200,748,571$ 177,360,771$ 169,490,723$ 167,927,980$ 165,595,431$

Expenditures 193,572,520$ 179,964,856$ 177,428,311$ 178,942,122$ 183,283,288$

Proposed Reduction -$ -$ -$ -$

Surplus/(Deficit) 7,176,051$ (2,604,085)$ (7,937,588)$ (11,014,142)$ (17,687,857)$

Ending Balance 28,863,989$ 26,259,904$ 18,322,316$ 7,308,174$ (10,379,683)$

3 % Reserve 5,807,176$ 5,398,946$ 5,322,849$ 5,368,264$ 5,498,499$

Revenue Limit Increase:Federal Jobs Funds 4,200,000$

Totals -$ 4,200,000$ -$

Assumptions:2010-2011 No Revenue Limit increase from the District 2010-11 Adopted Budget

Federal Jobs Funds will be deferred until 2011-12

2011-2012 No Increase in Revenue Limit fundingEnrollment/ADA is down due to prior year declineFederal Jobs Funds will be used in 2011-2012 to offset positions funded by ARRA Funds13 more Certificated (HTA) positions are eliminated

2012-2013 No Increase in Revenue Limit FundingNo new Federal Jobs FundsFurlough Days and Salary Reductions continue for all employeesReinstate K-3 CSR staffing to 20:1 due to expiration of Flexibility

Budget Reduction Scenario CalculatorBased on Alternative w/January 2011 Budget Reductions

10

Impact of Potential Mid-YearCuts to Revenue Limit

12/7/10 112010-11 First Interim

Multi-Year Projection (in millions)

Assumes $5 million reduction to revenue limit funding in all years

Impact of Potential Cuts to Revenue Limit Up to $15 million in solutions may be

necessary by 2012-13 Potential budget balancing solutions could

include: Increase revenue through grants and/or other

funding sources Reduce/eliminate extra-curricular activities Reduce/eliminate K-3 CSR Reduce/eliminate school security Staffing reductions in all areas Salary/benefit concessions

12/7/102010-11 First Interim 12

Documents

December 15, 2010. Financial Overview of General Fund October State Adopted Budget Cash Flow Issues Multi-Year Projections Based on States October Budget