Walnut Valley Unified School District Board of Trustees December 11, First Interim Financial Report

Agenda Changes Since Adopted Budget 06/19/2013 Changes Related to Implementation of the Local Control Funding Formula (LCFF) – 2012/13 Audited Actuals compared to 2013/14 First Interim Report Multi-Year Projection Risks/Changes to the Budget and Projection Questions 2

Changes since Adopted Budget 06/19/13 Unrestricted General Fund LCFF/Revenue Limit Sources$ 12,533,091 Other State Revenues$ (10,738,646) Other Local Revenues$ 646,869 Total Revenues$ 2,441,314 Salaries and Benefits$ 1,831,993 Supplies and Services$ 477,045 Capital Outlay $ 6,000 Indirect Costs $ 71,675 Total Expenditures$ 2,386,713 Other Sources/Usesand$(274,346) Contributions Unrestricted GF Balance$(219,745) Transfer of state categorical programs into the LCFF. Transportation and TIIG from restricted resources to LCFF “add-on” Other local revenues increased due to transportation fees and tuition fees Increase to salaries and benefits as a result of transfer of restricted programs Other Sources/Uses - $500,000 to Deferred Maintenance Fund, offset by $(225,654) in contributions to restricted programs Fund balance decreased $219,745 – Increase to reserve for economic uncertainties $103,881 (at 3% level) – Other adjustments – Stores $(40,920), Prepaid Expenditures $17,839, Other Commitments $(300,545) 3

Changes Related to the Implementation of LCFF Unrestricted General Fund Unaudited Actuals First Interim Report DifferenceExplanation LCFF/Revenue Limit74,594,23091,066,85016,472,620LCFF with Categorical and GAP funding Federal Revenue9,88410, Other State Revenue13,404,6872,574,080(10,830,607)Categorical programs rolled into LCFF Other Local Revenue1,077,6881,552,086474,398 Total Revenues89,086,49095,203,0166,116,526 Salaries and Benefits77,966,65080,982,9943,016,344Categorical programs rolled into LCFF Supplies and Services7,071,3608,098,2351,026,875 Capital Outlay111,70240,390(71,312) Other Outgo1,808,6831,650,585(158,098) Total Expenditures86,958,39590,772,2043,813,809 Other Financing Sources/Uses (4,808,037)(4,857,814)(49,777) Net Increase/Decrease(2,679,942)(427,002)2,252,940 Includes: $10,939,292 Categorical $737,693 Transportation Add On $920,357 TIIG $3,591,786 LCFF Growth (GAP)

Changes since Adopted Budget 06/28/11 Unrestricted General Fund Improving 2013/14 Ending Balance – Potential increase in ADA through P2 – Appropriation review – Expenditure savings First Interim to Second Interim 01/31/14 – Staffing Review (Sections) – Alignment of programs under the LCAP – Additional funds in Governor’s January Budget Proposal 5

Multi-Year Projections Budget Year +2 ( through ) Includes – Revenue calculations under LCFF with GAP funding $3,606, $4,815, $5,002,900 – ADA Projections: , , ,329 – Step and column increases – Adjustments to expenditures to reflect one-time items, utility increases and CPI – Adjustments for the estimated cost of collective bargaining agreements through furlough days in and furlough days back on schedule in – Reductions in the amount of $700,000 in (on-going pursuant to Fiscal Stabilization Plan) – $700,000 transfer in from Building Fund (Fund 21) in support of Routine Restricted Maintenance Fund (RRMF) eliminated in – DEU in budget and projection years meets the recommended minimum reserve amount (3%) – LCFF GAP funding reserved in and – Projecting positive fund balances in each of the projection years 6

Multi-Year Projections Budget Year +2 ( through ) 7 Adopted Budget Beginning Fund Balance$9,305,368$8,878,366$12,267,159 Total Revenues$112,933,660$114,817,001$119,119,901 Total Expenditures$113,360,662$111,428,208$114,248,146 Net Increase/Decrease in Fund Balance (Structural Deficit) $(427,002)$3,388,793$4,871,755 Ending Fund Balance$8,878,366$12,267,159$17,138,914 Required Components of Ending Fund Balance $5,607,154$5,549,180$5,633,778 Ending Fund Balance (Committed) $3,271,212$6,717,979$11,505,136 Combined General Fund

Risks/Changes to the Budget and Projection The Governor’s proposal is just that – a proposal. Until the legislature acts, there are no guarantees The budget is based on optimistic projections of state revenues – The state is not always the most reliable source of funding – Adequate reserves are absolutely necessary – The state recommended minimum Reserve for Economic Uncertainties is a MINIMUM, most districts need more Declining enrollment Volatile economic times Student data collections are more important than ever; CALPADS, CBEDS – Counts feed into the supplemental and concentration factors of the LCFF 8

Questions? First Interim Report.ppt Author: Jeanette Ullrich Title: Assistant Superintendent, Business Services Walnut Valley Unified School District