2009/10 Adopted Budget Presentation Board Meeting June 16, 2009 BUSINESS SERVICES Prepared by: Dr. Cathy Washer Mr. Douglas Barge Mrs. Carrie Hargis & Staff Y: Business Service/Budget/ /Adopted/Meeting/B /Adopoted Budget B

Table of Contents I.Introduction II.The Budget Process III.The 2009/10 Budget IV.State & County Reporting V.Future Work VI.Fine Tuning Our Work VII.Recommendations & Discussion VIII.Appendix SECTIONDESCRIPTION i 1 PAGE #

Introduction  School district governing boards are required by Education Code to adopt a budget on or before July 1 of each fiscal year  To meet this requirement, staff has provided information on: –Major Changes since the last Board Report –Assumptions for the 2009/10 Proposed Budget –Overview of the 2009/10 Proposed Budget –Required Reporting Elements  On June 9, the Board reviewed a report showing how the District could adopt a balanced budget for 2009/10  The report included the Superintendent’s recommendations for reductions that would be needed  The Board discussed the report and requested clarification on the implementation of some of the strategies within the budget plan A discussion of those strategies is included in this report 1

The Budget Process Section II II

How We Got Here Budget problems began arriving early this year –Late State budget adoption –Sudden drop in enrollment –Rapid deterioration of the national, state and local economies Early on the District worked to define the problems, develop solutions and project student enrollments for next year The Superintendent’s Budget Advisory Committee worked hard to develop recommendations –Their meetings were long and more frequent than in past years –They received much more input than past committees Board meetings were well attended during this budget development process –Input from the community and other stakeholders was lengthy and required, at times, alternative facility arrangements 2

How We Got Here The Superintendent worked hard with her staff to develop strategies for resolving concerns that came out of the various meetings During this time everyone had to deal with the uncertainty of: –A January Governor’s budget proposal that was DOA –A State adopted budget plan for 2008/09 and 2009/10 which was out of balance before the ink had dried –Three separate May budget proposal revisions that had to be changed before the Legislature took action on any one of them –And a fourth proposal that is still unfolding Through all of this the District and its Board have been able to put together a budget plan that can be approved knowing that changes will come 3

The 2009/10 Budget Section III III

Assumptions The Budget Guidelines were used as the foundation for developing the budget The process began with the Governor’s January budget proposals for 2009/10 Enrollment projections were reviewed by the administration and approved by the Board County required assumptions are incorporated All of the changes presented at the June 9, 2009 Board meeting are part of this budget package –Changes from Governor’s May Revision –Recommended Budget Reductions 4

General Fund Summary UnrestrictedRestrictedTotal Uses Sources 1. Beginning Balance$3,433, Revenues73,060, Total Sources$76,494,033 $ 18,344,102 $170,029, ,685,719 $21,777, ,746,238 $246,523, Expenditures 3. Total Uses 2. Ending Fund Balances $161,289,499 $170,029,821 8,740,322 $234,716,264 $246,523,854 11,807,590 $73,426,765 $76,494,033 3,067,268 5

Sources 1. Revenue Limit Sources $143,359,258$4,576,097 $147,935, Federal Revenue16,797, Other State Revenue 24,220,98132,640,022 56,861, Other Local Revenue 1,558,293 1,593,732 3,152,025 (17,452,813) 17,452,8135. Contrib. to Rest. Programs 7. TOTAL SOURCES $170,029,821 $76,494,033 $246,523,854 UnrestrictedRestrictedTotal Description 6. Beginning Fund Balances 18,344,1023,433,514 21,777,6166

Total General Fund Resources 7

Uses 1. Certificated Salaries $120,105,172 $93,591,193$26,513, Classified Salaries 20,659,02816,635,987 37,295, Employee Benefits 31,714,014 14,070,164 45,784, Supplies 3,430,615 5,310,672 8,741, Contracted Services 11,431,778 6,813,412 18,245, Other Outgo 462,871 3,907,091 4,369,962 UnrestrictedRestrictedTotal 8. Ending Fund Balance8,740,322 11,807,590 3,067, Capital Outlay 175, TOTAL $76,494,033 $246,523, TOTAL $170,029,821 8

Total General Fund Expenditures & Reserves 9

Ending Fund Balance 1. Assets$ 431, Economic Uncertainties 7,314, Contingencies 150, TOTAL ENDING FUND BALANCE$ 11,807, Designated Reserves a. AB 87 Reserves$ 844,066 c. Total Designated Reserves 844,066 b. Carryover Reserve 0 5. Categorical Reserves 3,067,26810

The Other Funds Joe Serna, Jr. Charter School$ 2,075,305 Adult Education Fund$ 1,211,373 –Includes COLA & Deficit Child Development Fund$ 2,976,513 Cafeteria $18,150,134 –Staffing Changes & Increased Revenue Deferred Maintenance$ 2,946,978 –Reflects lost State Revenues Facilities $29,146,670 –Project Balances Brought Forward Special Reserve for Capital Outlay$ 7,545,338 Bond Interest, Tax Override & Debt Service$24,287,078 Self-Insurance Funds$15,248,474 11

State & County Reporting Section IV IV

State & County Reports County Budget Assumptions –Required by San Joaquin County Office Education –Details the change from 2008/09 Estimated Actuals to 2009/10 Budget State Reports include Standards & Criteria –Used by county offices of education and the California Department of Education –To develop, review & assess budgets and interim financial reports of school districts in California 12

State & County Reports - Continued State Reports Include Multi-Year ProjectionsState Reports Include Multi-Year Projections 2009/ –ADA Growth (250) (250) –Revenue COLA (12.45%) (12.45%) –Certificated Step/Col.1.57%1.57% –Certificated COLA 0% 0% –Classified Step/Col.1.70%1.70% –Classified COLA 0% 0% Impact-UnrestrictedImpact-Unrestricted –Change in Fund Balance ($ 302,708) ($710,989) –Ending Fund Balance $8,437,614 $7,726,625 13

Future Work Section V V

Positions, Funding & Timing $561,387$416,816$187,818 7/7/09 Federal IDEA Funds – Declared 7/7/09 Plan Half Year $280,694 $416,816 7/7/09 Temporary Use of AB87 Construction Reserves – 7/7/09 Budget Revision Back up $561,387$416,816 Declared upon receipt Federal Categorical Stabilization Funds – Declared upon receipt B. $187,818 7/7/09 IDEA Funds – Declared 7/7/09 A. Library Assistants ($561,387) Librarians ($406,816) RSP Para- Educators ($187,818) Funding Source 14Implementation

Programs, Funds & Timing 1.Para-Educators ($187,818)  The Plan: Personnel will notify affected employees that their hours of services will remain unchanged beginning with the start of their normal calendar work year IDEA funding will be declared on 7/7/09 with the approval of the Board, via a budget revision 2.Librarians ($406,816)  The Plan: Personnel will notify affected employees of their continued employment Temporarily – Federal IDEA resources (50%) will be used to fund these positions The Board will declare these resources on 7/7/09, via a budget revision Once Federal Categorical Stimulus resources become available, these positions will be moved to this funding source and IDEA resources will be allocated to other needs  We have contingency plans as well 15

Programs, Funds & Timing 3.Library Assistants ($561,387)  The Plan: Personnel will notify affected employees of their continued employment Temporarily – Federal IDEA resources (50%) will be used to fund these positions The Board will declare these resources on 7/7/09, via a budget revision, Once Federal Categorical Stimulus resources become available these positions will be moved to this funding source and IDEA resources will be allocated to other needs  The Contingency Plans: If Federal IDEA resources become problematic AB87 Capital Reserves would be used This will require Board action to implement and funding will not cover the entire year (approximately one-half year) Once Federal Categorical Stimulus resources become available, the Board will be asked to declare those resources and return the AB87 resources 16

Fine Tuning Our Work Section VI VI

Future Work Dealing with the future decline of State revenues ($115/ADA) –Base Revenue Limit –Categorical Resources Dealing with the possible loss (65%) of State Transportation revenues To fine tune our budget we will use our budget revision process –Budget Revisions give the District the tools necessary to make adjustments as dictated by the State and/or requested by the Board 17

Recommendations Section VII VII

Recommendation oThe Superintendent and Staff recommend that the Board of Education approve the 2009/10 Budget as presented including: oAll supporting documentation required by the State and County Office of Education oIncluded in this recommendation is the approval of:  The list of budget reductions developed by the Board over a number of meetings  Budget guidelines  Enrollment projections oIn addition, Staff recommends that any further changes be made using the budget revision process  This process could start as early as the July 7, 2009 Board Meeting 18

Appendix Section VIII VIII

Appendix A.Budget Reductions B.Required State Reporting C.County Office of Education Reporting IX.

A. Budget Reductions *See Attachment in Board Item A

B. Required State Reports *See Attachment in Board Item B

C. County Office of Education Reports *See Attachment in Board Item C