1. Mt. Diablo Unified School District
Second Interim Budget Report
March 9, 2010
Steven Lawrence, Ph.D., Superintendent
Bryan Richards, Director, Fiscal Services

2. Why an Interim Report?
Ed. Code §42130 requires the Board to certify two interim budget and financial reports
Certification is either Positive, Qualified or Negative
Positive – The district will meet its obligations for 3 years
Qualified – The district may not meet its obligations for 3 years
Negative – The district will not meet its obligations in current or upcoming year
1st Interim with transactions to October 31 due December 15
2nd Interim with transactions to January 31 due March 15
If 2nd Interim qualified or negative, 3rd Interim with transactions through April 30 due June 1

3. Unrestricted General Fund Revenue
Revenue Limit Sources $ 158,651,759
Federal Revenue ,054
Other State Revenue 32,074,592
Other Local Revenue 3,168,461
Total Revenue ,119,866
Less: Net Contrib. to RGF (34,730,797)
Net Available Revenue $ 159,389,069

4. Revenue Limit is down from 89. 8% of revenue to 81
Revenue Limit is down from 89.8% of revenue to 81.73% because of the deficit.

5. Unrestricted General Fund Expenditures
Certificated Salaries $ 83,414,261
Classified Salaries ,886,215
Employee Benefits ,936,365
Books & Supplies ,241,695
Services & Operating ,089,883
Capital Outlay ,113
Other Outgo ,381
Interfund Transfers Out 5,452,658
Total Expenditures ,058,571

6. Salaries and Benefits make up 82.73% of expenditures & transfers out

7. Unrestricted General Fund Summary
Net Available Revenue $ 159,389,069
Net Expenditures ,038,571
Net (decrease) fund bal ( 1,669,502)
Beginning Balance, July ,529,701
Projected Ending Balance $ 22,860,199

8. Components of Ending Balance
Revolving Cash $ ,000
Stores Inventory ,118
Economic Uncertainties (2%) ,036,482
IRS Assessment Resolution ,550
Tier 3 and Site Carryovers ,165,062
Undesignated ,288,987
Ending Balance $ 22,860,199

9. Restricted General Fund Revenue
Revenue Limit Sources $ 6,614,982
Federal Revenue ,892,737
Other State Revenue ,774,770
Other Local Revenue ,841,354
Interfund Transfers In
Net Contribution from UGF ,525,361
Total Revenue $120,649,204

11. Restricted General Fund Expenditures
Certificated Salaries $ 44,454,133
Classified Salaries 21,644,156
Employee Benefits 24,982,365
Books & Supplies 25,374,487
Services & Other Operating ,256,480
Capital Outlay ,427
Other Outgo ,505,016
Transfers Out
Total Expenditures $ 141,560,064

13. Restricted General Fund Summary
Total Revenue $ 120,649,204
Total Expenditures ,560,064
Net (decrease) in fund bal. (20,910,860)
Beginning Balance, July 1 22,687,425
Projected Ending Balance $ 1,776,565

14. Other Funds of the District
Funds for special purposes excluded from the General Fund
Special Revenue Funds
Charter School – Form 09I
Adult Education – Form 11I
Cafeteria – Form 13I
Deferred Maintenance – Form 14I
Capital Projects Funds
Building (Proceeds of local bonds for construction) – Form 21I
Capital Facilities (a.k.a. Developer Fees) – Form 25I

15. Other Funds of the District (cont’d)
Capital Projects Funds (continued)
County School Facilities (State Allocations for construction) – Form 35I
Capital Project for Blended Component Units (Mello-Roos) – Form 49I
Debt Service Funds
Bond Interest and Redemption – Form 51I
Debt Service for Blended Component Units (Mello-Roos) – Form 52I
Foundation Private-Purpose Trust Fund (Scholarship Fund) – Form 73I
All “Other Funds” projecting positive fund balances

16. Supplemental Information
Form AI: Average Daily Attendance decrease of (719.95) in 09/10 will decrease funding for 10/11.
Form CASH: Cash Flow – to end year positive we sold a $12M TRAN which closes on March 18 and are pulling LAIF into County Treasury
Form RLI: This is unchanged since 1st interim except for the adjustment to PERS reduction due to personnel cost changes
Form 01CSI: Criteria & Standards
Form CI: Certification to Sign summarizes Criteria & Standards
Form MYPI: Multi-year Projection – What we can expect based on what we know now from Sacramento, so it’s time for another episode of…

17. STATE
CAPITOL

18. One time revenue limit deficit now ongoing!
This year we have a one-time additional deficit of $ per FUNDED ADA ( actual P-2 ADA) or about $ per current funded ADA
Starting next year it will become ongoing and be $201 per current year funded ADA
This deficit is proposed to be applied to “administrative” costs. While “administrative” is undefined in the proposal, current chatter from Sacramento indicates it will be calculated on function codes (instructional supervision), (central administration and technology) and (maintenance, operations & security). Reductions since 2008/09 will count towards the cuts as it will be used as the base year. However, reductions from 2007/08 into 2008/09 may not. This is not yet finalized and there is a move to strip the language from the proposal.

19. General Outlook for the Future
Positive Certification (we will meet our obligations for this year and the next two)
This certification is conditional on the board’s approval of items on tonight’s cut list as they have been included in the multi-year projection
Concerns
State fiscal health is still precarious although January revenues were up in the first piece of good news out of the State in a while. However, it hasn’t made up for the shortfalls to date so the May revise may still have further cuts.
Health care cost containment is critical. Increases have been coming in well above the CPI. Our 2011 rate announcement comes from CalPERS in June.
Declining enrollment – still a major concern
DEFICIT – The cuts have significantly lessened our deficit spending. However, cash is king and we must continue to monitor it. We will be pulling our LAIF investment into the County treasury to be sure cash is available.

20. Cash is king for the State too!
Additional new deferrals will affect our cash flow substantially!
July revenue limit deferred until September
October revenue limit deferred until January
March revenue limit deferred until April 29
Our TRAN payments are in July and August with a final due date of October 1
We plan to issue next year’s TRAN in October to be ahead of the second deferral

21. The 09/10 revenue limit cut $1,423/ADA

22. Form MYPI: Multi Year Projection
Undesignated + Tier 6/10 $ 8,288,987
Operating Deficit 2010/11 ( 2,544,379)
Adjustment in 2% reserve ,906
Unappropriated Balance 6/ ,454,514
Operating Deficit 2011/12 ( 1,391,915)
Adjustment in 2% reserve ,373
Unappropriated Balance 6/ $ 5,072,972

23. Cuts substantially curtail the deficit
Unappropriated Balance 6/12 $ 5,072,972 Deficit & Rsv Adj / ($ 1,163,673)
Unappropriated Balance 6/13 $ 3,909,299
Deficit & Rsv Adj / ($ 3,580,926)
Unappropriated Balance 6/ $ ,373
2013/14 sees the end of flexibility unless legislation is passed to continue it

24. What next? We go back to Sacramento
State budget talks underway in legislature
March Government Price Index establishes 2010/11 COLA
April tax receipts tell the State’s fiscal tale
Governor’s May Revise

25. Thank you. Tune in next time for the next episode of…
STATE
CAPITOL