2009 10 first interim budget highlights
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2009-10 First Interim Budget Highlights. Chief Business Official Mr. Tim Zearley. Education Funding in Other States. Source: Center for Reinventing Public Education. California Continues to Fall Further Behind. We certainly make up no ground in 2009-10 and actually lose some

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2009-10 First Interim Budget Highlights

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2009 10 first interim budget highlights

2009-10 First Interim Budget Highlights

Chief Business Official Mr. Tim Zearley


Education funding in other states

Education Funding in Other States

Source: Center for Reinventing Public Education


California continues to fall further behind

California Continues to Fall Further Behind

  • We certainly make up no ground in 2009-10 and actually lose some

    • We can expect our 2006-07 gap of $731 from the national average in per-pupil expenditures to grow to more than $1,700 (est.) in 2009-10

Source: National Center for Education Statistics, 2009; Bureau of Labor Statistics 2008 CPI Inflation Calculator


General fund revenue trends

General Fund Revenue Trends

2007-08

2008-09

2009-10

Source: Legislative Analyst’s Office


Per ada revenue volatility

Per-ADA Revenue Volatility

  • As in the past, we continue to havevery high volatility in revenuesdirected toward education

  • 2009-10 continues the roller-coasterride as revenue continues to fall

  • The 2009-10 reduction is a cumulative14.7% that includes the effect of the$250 one-time reduction to revenue limits

  • California needs to provide a more stablerevenue stream for schools


Per ada revenue volatility1

Per-ADA Revenue Volatility


Additional revenue limit reductions

Additional Revenue Limit Reductions

  • ABX4 2 (Chapter 2/2009) imposed a revenue limit deficit of 18.355% for 2009-10, an increase from the 16.24% proposed in the May Revision

    • Loss of $331,320 from June Budget Adoption

  • In addition to the ongoing revenue limit cut imposed by the deficit factor, the Budget revision imposed a one-time reduction of $250 per P-2 ADA in 2008-09

    • Loss of $640,924 from June Budget Adoption


Revenue limit deficit factors

Revenue Limit Deficit Factors


Impact of one time revenue limit reduction

Impact of One-Time Revenue Limit Reduction


Changes from the latest budget home to school transportation

Changes from the Latest Budget: Home-to-School Transportation

The May Revision proposed cutting Home-to-School Transportation funding by 65% – YIKES!

The final result is that Home-to-SchoolTransportation is now a Tier II program

This means it is reduced by 19.84%from the 2007-08 level of fundingfor 2009-10 and beyond

Loss of $167,907 from June Budget Adoption


2009 10 cash flow

2009-10 Cash Flow

  • Actual apportionments will deviate significantly from the newly enacted schedule

  • Apportionments are pushed out even later in the fiscal year

    • Expect only 10% of your annual apportionment through the first three months

* One-time adjustment to recover distribution of overapportionment in July 2009, which equates to a 1.5% reduction in October 2009.


2009 10 cash flow1

2009-10 Cash Flow


The use of multiyear projections

The Use of Multiyear Projections

  • Multiyear projections (MYPs) are required by AB 1200/AB 2756

  • Recognize that they are projections, not forecasts

    • Projections are expected to change as various factors change – they are not predictions

    • Projections are the mathematical result of today’s decisions based on a given set of assumptions

    • Forecasts are predictions of the future – there is a higher implied reliability factor than for projections

  • Projections will change anytime the underlying factors change – therefore plan


Ssc financial dartboard

SSC Financial Dartboard


Historical cbeds enrollment

Historical CBEDS Enrollment


2009 10 first interim budget highlights

Approve The Budget?

  • Do we have adequate reserves? Yes

  • Are we deficit spending? Yes

    If so, is it planned? Yes

  • It is a budget. Are our estimates reasonable? Yes

  • Can we sustain in MYP? Yes with reductions for declining enrollment

  • If so, then you can confidently approve this budget.


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