Ramona Unified School District First Interim Report December 17, 2009

Interim Report What is an Interim Report? Report of a district’s financial status, including revised projections and activity through a certain point in the fiscal year What is the Purpose of the Interim Report ? Review financial condition of district Revise assumptions in the previous budget Determine if revisions are needed Provide status report to interested parties Determine if district will meet financial obligations

First Interim Report Budget is brought to the Board four times a year July 1 st First Budget of the year December 15 th First Interim Report March 15 th Second Interim Report September 15 th Unaudited Actuals Keep Board apprised of budget assumptions and new developments First Interim Report sets the expenditure budgets for the year

Budget Budget details a plan for spending Budget constantly changes as new information is received and incorporated into the adopted Budget Most change occurs from the adoption of the Budget (July 1 st ) until the First Interim Report State of California Budget is not even signed Previous year’s Budget is not finalized Enrollment is not set, so staffing for the enrollment is not finalized

Tonight Major Assumptions Revenues Enrollment Budgets Staffing The Numbers of the First Interim Report Carryover from the Unaudited Actuals Setting the expenditures for the year What RUSD and State of California can expect for the next few years

Major Assumptions The estimated actuals and the June adoption of the Budget were based upon the Governor’s May 14, 2009 proposals The estimated actuals and the June adoption of the Budget were based upon the Governor’s May 14, 2009 proposals What was signed into law is much different than what was proposed, creating a very different outcome of the actuals and the Budget than had been anticipated What was signed into law is much different than what was proposed, creating a very different outcome of the actuals and the Budget than had been anticipated

Revenues Revenue limit has decreased due to the one- time cut to base revenue limit of $ per Average Daily Attendance (ADA), which equates to a decrease of $1,631,525 This dollar amount was part of the ending balance for Now this reduction is part of the Revenues

Enrollment Until the first day of the new school year, enrollment is just a projection. Yet enrollment has major budgetary impacts for: Staffing School Allocation Transportation

The Numbers Total Revenues$49,315,332 Total Expenses$55,491,444 Difference($ 6,176,112) Beginning Balance$ 8,552,469 Ending Balance*$ 2,376,356 *Projected Ending Balance

The Numbers Components of the ending fund balance$2,376, Budget$ 1,886,910 Accrued Vacation $ 464,446 Other$ 25,000 Percentage Reserve $1,667,743 to meet required 3% reserve 4.27% general fund projected ending balance

The Numbers RUSD is projected to deficit spend by over $6.1 Million Carryover from must be factored into the current Budget, which inflates expenditures without adding revenues to offset them, thus creating deficit spending Carryover creates a big difference in the expenditure budgets from the July 1 st adopted Budget to the First Interim Report The Federal Stimulus Dollars account for a majority of the carryover

Carryover Factored Into Budget Carryover in Budget ARRA/ASFSF Funds $2,252, Site/Dept. Carryover $ 814, Unrestricted Cat. $ 693, Restricted Cat. $1,790, Total $5,551, Consists of budgeted expenditures, no new revenues Revenues are from previous years The majority of these dollars are expended under the books and supplies object code, which the budget increased by $3,158,000

Comparisons - Revenue

Comparisons - Salaries

Comparisons - Benefits

Major Changes School is back in session, so enrollment numbers are tied in Retirees, replaced positions, and new hires into salary schedule Health benefits have been finalized Dollars in ending balance have been distributed to sites and departments

Looking Ahead Second Interim Report will be presented to the Board in March Will look at assumptions and make adjustments Any mid-year reductions from the State Emeritus program will be implemented and budget changes will be reflected in the budget State of California Budget for , Predicting a $20 Billion deficit January 13 th Governor’s Budget Workshop, presented by School Services of California, Inc.

Multi-Year Projections State requires each district to project out current year and next two fiscal years to maintain fiscal health and to identify any significant issues RUSD’s reserve meets State’s requirement for , even with a potential mid-year cut RUSD’s reserve will meet the State’s requirement for with assumed early retirement incentive and projected budget savings

Multi-Year Projections RUSD’s reserve will meet the State’s requirement for if we continue to maintain diligence on expenditure reductions However, the potential of large reductions to funding from the State, combined with continued decline in enrollment, could create a qualified status for Ramona Unified School District Qualified Status: A district might not be able to meet its financial obligations for the current and 2 additional years It is very difficult to forecast that far out

Conclusion Thus far, RUSD has weathered the financial storm, yet the storm is still out there and the next few years will be the toughest ones yet No relief from the Federal Government in a second wave of dollars More cuts needed at the state level