Ramona Unified School District. May Budget Review 2010-2011 May 20, 2010. Tonight’s Discussion. Update on the Progress of the 2010-2011 Budget Review Assumptions of the Budget Reduction Plan Revised Assumptions May Revise Other Funds
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Ramona Unified School District May Budget Review 2010-2011 May 20, 2010
Tonight’s Discussion • Update on the Progress of the 2010-2011 Budget • Review Assumptions of the Budget Reduction Plan • Revised Assumptions • May Revise • Other Funds • This report ONLY looks at the revenues and expenses of 2010-2011, not at any carryover or ending balances
What We Know • An analysis of the Governor’s January Budget Proposal • Reduction to revenue limit • Negative COLA (-0.38%) • $201 per ADA reduction • Loss of revenues due to decline in enrollment • Estimated increase in operating costs • Formulated Budget Reduction Plan • Number of retirees (early retirement program) • FTE layoffs for both Certificated and Classified employees • Reduction of site and department allocations • Reduction in maintenance funding • May Budget Revision has been submitted • A formal analysis has not been completed
Total Budget Reductions Budget Shortfall $8,278,129 Budget Reductions $8,366,003 Loss of ARRA Funding $225,000 New Budget Reductions $8,141,003 Budget Gap $137,126
The Uncertainties • Actual Enrollment in August 2010 • How many students, what grade levels, and which schools will they attend • Economy • May Revision of State Budget • How will the details of the revised budget proposal affect RUSD? • How will the Legislators react? • How long will it take to come to a vote? • What will be the actual expenditures for the current year? • Will have an effect on carryover dollar amounts
2010-2011 May Budget Update • Total Revenues $46,837,093 • Total Expenses $49,428,144 • Difference $ (2,591,051) • The $2,600,000 deficit will be backfilled in by savings from the current year’s Budget Reduction Plan, which will increase the 2009-2010 ending balance • This ending balance, along with dollars from the reserved fund, will backfill in the deficit
Changes from April • Biggest change affecting this revision is new information on salary • Information on salary advancements from Human Resources Department – which, in turn, is incorporated into the Budget • Normal, expected process
May Revision • May 14, 2010, the Governor presents his May Budget Revision to his January budget proposal • This morning, staff attended a workshop, presented by School Services of California, Inc., which provided more detailed information on the Governor’s May Revision proposal • Information learned has not been fully analyzed and is not incorporated into the current budget • Next slides convey some of the major themes of this morning’s presentation, and credit for these slides is given to School Services of California, Inc.
Overview of the State Budget • Education fares better than the rest of the Budget • The rest of the Budget is absorbing even heavier cuts in order to protect education from deeper cuts • But remember – the nearly $2.5 billion taken from education in January still remains • Childcare takes a huge cut • Social and health programs that serve K-12 students and their families are hit even harder • California Work Opportunities and Responsibility to Kids (CALWORKs), which is California’s main avenue to welfare payments, is on the chopping block
May Revision Features • For the most part, the May Revision contains no further cuts to K-12 education? • Cuts proposed in January remain • Targeted proposed administration cut is eliminated • Cuts to childcare eliminate subsidized slots for 142,000 children • No new federal dollars • No new taxes are proposed • Major additional cuts to the non-education portions of the Budget are proposed • Expect the Legislature to have great difficulty voting for the choices before them • Despite the Governor’s call for an on-time Budget, SSC does not expect that to happen
Major May Revision Proposals • The revised Budget gap is projected to be $19.1 billion, slightly smaller than the $19.9 billion gap in the January Budget • The Governor proposes to close the gap without raising taxes • $12.4 billion in cuts • $3.4 billion in additional federal funds (down from $6.9) • $3.4 billion in borrowing fund shifts, asset sales, and surcharges
Major May Revision Proposals • Program cuts make up the majority of the Governor's May Revision proposals including: • $1.1 billion in savings from elimination of CALWORKs • $637 million in savings from cuts to the In-Home Support Services for the disabled • $750 million in savings from Medi-Cal, the State’s primary healthcare program for low-income residents • $244 million in savings from transferring state prisoners to county jails • $602 million in savings from reduced county mental health services • These cuts will be debated and could threaten the education budget if reduced
Revenue Limit Funding • The -0.38% COLA is revised to -0.39% • About $0.61 per ADA • Not significant • The January Budget proposed cutting $1.5 billion from revenue limits and targeting the reduction to school administration • This proposal called for a $201 per ADA reduction to revenue limits
Targeted Administrative Cut • May Revision drops the nature of the cut, allowing for local discretion in how the cut will be implemented • The $1.5 billion cut remains • DOF is considering a 3.85% reduction to each district’s un-deficited base revenue limit • This reduction could range from $225 to $280 per ADA, a change from $201 per ADA • Could result in an additional $150,000 to $483,000 reduction to revenues to Ramona • If the 3.85% is applied to the deficited revenue limit, the cut would be close to the original $201 per ADA
Per Diem Sub Pay • The May Revision is silent on the Governor's proposal for teacher reform • SB-955 (Huff) does contain the proposals • Per diem sub pay is included in this Senate Bill • President pro Tempore Steinberg has taken this Bill out of play after it passed the Senate Education Committee, giving this Bill a cooling off period
Risks to the Revised Budget Proposal • Court challenges • Late budget, which could delay some of the budget saving proposals • Economy and revenue risks • “We will not pass a budget that eliminates CALWORKs” - Senate President pro Tempore Darrell Steinberg (D-Sacramento) • “New taxes are off the table with Republicans” – Assembly Minority Leader Martin Garrick (R-Solana Beach
Other Funds • Food Services • Revenues $2,064,500 • Expenses $2,115,329 • Ending Balance $513,399 • Capital Facilities (Dev. Fees) • Revenues $239,000 • Expenses $265,215 • Ending Balance $8,422,165 • Cash with Fiscal Agent $ 5,573,456 • Remaining Balance $ 2,848,709
Other Funds • Self Insurance Fund (Fund 670) • Revenues $566,000 • Expenses $565,000 • Ending Balance $260,523 • Required Reserve Fund (17) • Revenues $ 89,000 • Expenses/Transfers $889,000 • Ending Balance $2,422,942
What’s Next • May Revision • What does this proposal mean to Ramona Unified? • Input the revised numbers into the June Budget • Continue to look at and revise assumptions?