Revenues, Reserves, and Strategic Budgeting

November 8, 2011William C. Young

Assistant Superintendent – Business ServicesPosted www.oceanviewsd.org

Revenue/Expenditure Update

11-12 State Revenue StatusState Revenue Status• Year-to-date = $654 million shortfall• October = $ ???• November = $ ???• December – June 2012 = $ ???

State Trigger Status• By December 15, 2011 – determination date for triggers• Trigger 1 ($1 - $2 billion short): Cuts OVSD Child Development

Funding• Trigger 2 (more than $2 billion short): OVSD Transportation

Funding cut by at least 50%, OVSD State Revenue Limit Funding cut by up to $618,000

11-12 Federal Revenue StatusFederal Revenue Status• One-time economic crisis funding is gone - $ 2.3

million• Title II and Migrant funding cut• Anticipate other federal program cuts

Federal Super Committee Status• Composed of 6 Senate and 6 House Bipartisan

Members• Cut $1.5 Trillion by November 23, 2011• Automatic cuts – 50% defense budget, 50%

domestic program budgets (including education)

11-12 Reserve for Economic Uncertainty Status

Reserve Status• Minimum State Requirement = 3%• Safety Net – covers about 8 days of payroll

• 1 month payroll costs = $1.63 million

• most financial problems are multiyear problems and not one time

11-12 Ending Fund Balance

** The gap between the Ending Fund Balance and Cash in County Treasury is caused by delayed state payments

11-12 Cash Flow Concerns

District Administration / Governing Board Strategic Budgeting

Reduced– Administrative Costs– Classified Costs– Certificated Costs– Benefit Costs– Operational Costs

Planned– To mitigate further cuts– To meet monthly cash needs (to pay payroll)

– Low K-3 Class Size - 24:1– Maintained Block Scheduling at OVJH– Avoided Layoffs– Avoided Furlough Days– Maintained Salaries including step & column

increases– Avoided temporary cash loans– Use of One-Time Federal Funding – $ 2.3 million– Offer a one-time off schedule payments

District Administration / Governing Board Accomplishments through Strategic Budgeting