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State Budget

State Budget. Business Services October 13, 2010. Month 1 Enrollment History. FUSD Revenue Limit Per ADA. FUSD General Fund Revenue. Revenue in Millions. Federal Jobs Bill - Senate Bill (SB) 847.

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State Budget

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  1. State Budget Business Services October 13, 2010

  2. Month 1 Enrollment History

  3. FUSD Revenue Limit Per ADA

  4. FUSD General Fund Revenue Revenue in Millions

  5. Federal Jobs Bill - Senate Bill (SB) 847 • SB 847 provides the California Department of Education (CDE) with the authority to allocate $1.2 billion from the federal Education Jobs Fund to school districts. These funds will be distributed based on the state's revenue limit formulas.

  6. Federal Jobs Bill - Senate Bill (SB) 847 • Approximately $6 Million is earmarked for Fremont Unified School District • The District received $5.4 Million on Monday

  7. 2010-11 State Budget Highlights • No cuts to revenue limits • Negative COLA will reduce the deficit factor, but not reduce revenue limits • $270.00 per ADA or about $9 million more dollars for Fremont USD

  8. Revised Revenue Limit for 2010-11

  9. 2010-11 State Budget Highlights • $100 million in payments to districts for the 2010-11 mandate payments • $200 million allocated to districts on a per ADA basis. This money will go to all LEAs, but will count toward any outstanding mandate claims, starting with the oldest claims first. But even if a district has no claims, the money will still go out per ADA

  10. 2010-11 State Budget Highlights • It is a “Get Out Of Town” Budget • It is very reminiscent of the State Budget of two years ago, that was great until February when the mid year cuts came to pass • It assumes over $5.3 Billion in revenue from the Federal Government

  11. 2010-11 State Budget Highlights • It assumes that the State will raise over a billion dollars from sale of state buildings that they will lease back • It depends on an improving economy in 2011-12 • It defers $1.7 Billion into 2011-12

  12. Revised 2010-11 Deferrals * Inclusive of categorical funds Note: An additional deferral for K-12 of $1.7 billion from 2010-11 into 2011-12 fiscal year

  13. CASH FLOW PROBLEM SOLUTION Tax Revenue Anticipation Note (TRAN)

  14. PROBLEM PAYBACK

  15. Moody’s Investor Services addressed concern in a recent publication, “Application of Moody’s Short-Term Note Methodology to California TRAN Issues.” Moody’s states that “the primary risk associated with a TRAN is the predictability and sufficiency of the deferred revenues as a source of repayment is weak at best.”

  16. FLEXIBILITY CONCLUDES

  17. Categoricals – Now and Later • 1/3 of the Budget • Five years is almost up • K-3 CSR flexibility goes away for 2012-13 in the Multiyear Projection (MYP) • All the rest goes away for the June 2013 district budget • Proposed end dates are causing deeper cuts now • Will they be extended?

  18. CONCLUSION • State Budget does not solve State nor FUSD problems • There are more adjustments required

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