Albany Unified School District Budget Adoption

California State Budget June 15, 2011—the Legislature approves the State Budget. June 15, 2011—Governor Brown vetoes the State Budget. Governor Brown’s Response: “the budget contains legally questionable maneuvers, costly borrowing, and unrealistic savings. Finally, it is not financeable and therefore will not allow us to meet our obligations as they occur.” No further information on the status of the budget…. No further information on the status of the budget….

Current State Budget Assumptions COLA for % COLA for % Revenue Limit Deficit % Revenue Limit Deficit % Continued flexibility for categorical usage through Continued flexibility for categorical usage through Restricted dollars shifted to unrestricted to bridge the revenue shortfall Restricted dollars shifted to unrestricted to bridge the revenue shortfall CSR Flexibility CSR Flexibility Penalties are relaxed for classes exceeding 20:1 through Budgeted at 25:1 for K-3 grades. Penalties are relaxed for classes exceeding 20:1 through Budgeted at 25:1 for K-3 grades. ALL ASSUMPTIONS BASED ON CURRENT INFORMATION AND ARE LIKELY TO CHANGE! ALL ASSUMPTIONS BASED ON CURRENT INFORMATION AND ARE LIKELY TO CHANGE!

Budget Gap – Revenue Limit Revenue Limit dollars before deficit Revenue Limit dollars before deficit $24,184,186 $24,184,186 Revenue Limit dollars after deficit Revenue Limit dollars after deficit $19,475,860 $19,475,860 LOSS OF REVENUE LIMIT DOLLARS LOSS OF REVENUE LIMIT DOLLARS (4.7 MILLION OR $1,287 PER STUDENT ) (4.7 MILLION OR $1,287 PER STUDENT )

CLOSING THE GAP UTILIZING CATEGORICAL FLEXIBILITY UTILIZING CATEGORICAL FLEXIBILITY $1.6 MILLION $1.6 MILLION 93% of California school districts are utilizing this option 93% of California school districts are utilizing this option UTILIZING PARCEL TAXES TO RETAIN STAFF AND PROGRAMS UTILIZING PARCEL TAXES TO RETAIN STAFF AND PROGRAMS $2.2 MILLION $2.2 MILLION UTILIZING DISTRICT RESERVES TO MAINTAIN STAFF AND PROGRAMS UTILIZING DISTRICT RESERVES TO MAINTAIN STAFF AND PROGRAMS $916,000 $916,000

The Multi-Year Picture Net Increase (Decrease) in Fund Balance ($916,916.71)($618,337.31)($846,612.52) Fund Balance Beginning Fund Balance (estimated) 1-Jul$5,061,805.77$4,144,889.06$3,526, Adjusted Beginning Fund Balance $5,061,805.77$4,144,889.06$3,526, Ending Fund Balance30-Jun$4,144,889.06$3,526,551.75$2,679, Components of Ending Fund Balance Nonspendable Revolving Cash $25, Stores $0.00 Prepaid Expenditures $0.00 All Others $0.00 Restricted $1.15$1,495.13$6, Committed Assigned Strategic Plan Carryover $85,268.00$0.00 Unassigned/Unappropriated Reserve for Economic Uncertainties $4,034,619.91$3,500,056.62$2,648, Unassigned Amount $0.00 Reserve as a % of total expenditures 12%10%8%

The Good News The district is optimistically hopeful the state budget will spare further reductions to public education. The district is optimistically hopeful the state budget will spare further reductions to public education. AUSD has not reduced the school year for students. The state reported that 60% of districts reduced the school year in AUSD has not reduced the school year for students. The state reported that 60% of districts reduced the school year in AUSD staff has not had to address furlough days or salary/benefit reductions. AUSD staff has not had to address furlough days or salary/benefit reductions. District reserves allow planning time if further cuts are included in the adopted state budget. District reserves allow planning time if further cuts are included in the adopted state budget.

The Bad News Tax extensions continue to be a stumbling block in Sacramento and another late budget is predicted. Tax extensions continue to be a stumbling block in Sacramento and another late budget is predicted. A late budget adoption could equal mid-year cuts. A late budget adoption could equal mid-year cuts. Current Parcel Tax dollars will need to continue to support core programs and Measure I expires June Current Parcel Tax dollars will need to continue to support core programs and Measure I expires June Federal Stimulus dollars are one-time funds and end in Federal Stimulus dollars are one-time funds and end in

Other Funds The Child Development Fund, with concessions from employees and program restructuring is projected to be self-supporting. The Child Development Fund, with concessions from employees and program restructuring is projected to be self-supporting. They are also projected to repay the $500,000 district loan for They are also projected to repay the $500,000 district loan for The Adult Education Fund continues to be a concern and fees/programs may need to be addressed as the year progresses. The Adult Education Fund continues to be a concern and fees/programs may need to be addressed as the year progresses. The Cafeteria Fund is self-supporting. The Cafeteria Fund is self-supporting. Fund 17 – Strategic Plan funds will continue to support plan implementation. Fund 17 – Strategic Plan funds will continue to support plan implementation.

What’s Next? State adopts budget State adopts budget Adopted budget will be analyzed to determine variances from current assumptions Adopted budget will be analyzed to determine variances from current assumptions The impact of the State budget and proposed budget adjustments will be presented to the Board The impact of the State budget and proposed budget adjustments will be presented to the Board

END OF PRESENTATION