Mt. Diablo Unified School District Second Interim Report Board of Education Meeting March 18, 2008

2 Financial Reporting Requirements o Education Code Requires TWO reporting financial periods October 31 and January 31; projections of the budget through June 30. o Education Code Requires the Board of Education to certify, in writing, whether or not the school district is able to meet its financial obligations for the remainder of the fiscal year. Requires a district that has received a qualified or negative certification of its interim report(s) to file a third report as of April 30, no later than June 1.

3 Possible Certifications PositiveDistrict will meet its fiscal obligations for the current and two subsequent years QualifiedDistrict may not meet its fiscal obligations for the current or two subsequent years NegativeDistrict will be unable to meet its fiscal obligations for the current or two subsequent years

4 General Fund Revenue Assumptions Declining Enrollment Average Daily Attendance (ADA) Cost of Living Adjustments Possible Deficit Factors in & Federal, State and Local Revenues Key Factors

5 Contributions to RESTRICTED Programs Special Education $29,174,610 Transportation 2,923,230 Routine Repair & Maintenance Account 8,442,665 (Legally required for Proposition 55 and Deferred Maintenance) Other Programs Contributions 1,083,401 Total Contributions $41,623,906

6 MULTI YEAR Projections #1 (through February 25, 2008) Unrestricted Projected Ending Fund Balance

7 Designations of the Projected Unrestricted Ending Fund Balance - June 30, 2008 The Projected Unrestricted Fund Balance of $19,319,002 consists of the following: COMPONENTS OF THE FUND BALANCE Revolving Cash/Stores $1,047,109 Economic Uncertainties 5,876,226 FCMAT Recommendations 78,965 Credential Compliance Penalty 0 Lottery Allocation 105,522 Phase I Energy Mgmnt. Conservation 2,500,000 Spieler Consent Decree 500,000 Student Information System516,264 Site/Department Carryover200,000 Undesignated Reserves 8,494,916

8 MULTI YEAR Projections #2 (through March 11, 2008) Unrestricted Projected Ending Fund Balance

9 Budget Status at Second Interim: Through February 25, 2008: District unable to meet requirement of 2% reserve in Reductions through March 11, 2008 improve ending balance, but Uncertainty about additional reductions in State funding Uncertainty about whether all reductions can be achieved Desire to increase employee compensation Many current reductions are one-time, District is deficit spending Status reviewed again at Third Interim