1. Travis Unified School District 2012-13 Preliminary Budget May 8, 2012 1

2. Multiyear Financial Projection 2 Revenue Limit increase for 2012/13 is not anticipated and will reduce this income projection by $321,749

3. Multiyear Financial Projection 3

4. 4 Shortfall $ (907,030) Rev Limit Incr $ (321,749) Total Remaining$(1,228,779) shortfall

5. Identifying the “shortfall” 5

6. Governors Budget Proposal No Cost Of Living Adjustment had previously budgeted a COLA in multi- year projections No transportation allocation loss of $277,779 Plan for $370 per ADA cut reserve $1.9 million in ending fund balance Plan for $45 per ADA cut reserve $443K in ending fund balance Categorical flexibility continues 6

7. Governors Budget Proposal K-3 Class Size Reduction must be reinstated by 2014-15 Weighted Student Formula proposed. Six year implementation, 20% a year with a hold harmless in 2012-13. May revise out next week. 7

8. The Budget The District’s budget has multiple funds to account for their financial activity. We spend the majority of time discussing the General Fund as it represents 91% of the activity in this fiscal year. 8

9. Funds Ordinary Operations: General Fund Cafeteria Fund Deferred Maintenance Fund Special Reserve for Postemployment Benefits 9

10. Funds Capital Projects: Building Fund (Certificates of Participation) Capital Facilities Fund (Developer Fees) County School Facilities Fund (State Facilities Construction and Modernization) Special Reserve for Capital Outlay Capital Project Fund for Blended Component Units (Mello-Roos) Internal Service: Scholarship Fund 10

11. General Fund 11

12. Revenue Limit Deficit Trend 12 2011-12 19.754% 2012-13 21.666% The deficit continues to grow! Loss attributed to deficit in 2011-12 is $1,332 per ADA or $6.9 million!

13. Revenue Limit 13 Source: School Services, 3/2012 In 2011-12, the Deficit caused the District to loose $6.9 million.

14. Revenue Limit – Cash Flow 14 36.45% ( $8.8 million) of the current Revenue Limit entitlement is deferred until after July 1 st !!

15. Federal Impact Aid 15 The funding is ever changing. In previous years, the Federal government had the capacity to fund this program at higher levels. Due to the nature of the funding source, FCMAT recommends that the District treat these funds as one-time funds.

16. Unrestricted funding has declined 16

17. Categorically Funded Programs 17

18. Categorically Funded Programs State funded programs  K-3 Class Size Reduction  “Flexed” through 2013-14  Program must then be restored to pre-flex requirements to maintain funding  TUSD has assumed program will not be restored  Governor has proposed a two-year extension  Tier I & II  Cannot “flex”  Tier III  “Flexed” through 2014-15  Program must then be restored to pre-flex requirements  Governor Brown has proposed a two-year extension 18

19. Contributions to Restricted Programs Community Day Program$ 161,609 Continuation Education$ 203,936 Special Education$3,761,583 Special Education – Low Incidence $ 8,910 Home-to-School Transportation$ 492,479 Special Education Transportation $ 592,809 $5,221,326 19

20. Expenditures - Staffing Staffing ◦ Teachers  Class sizes at statutory maximums  K-3 = 28:1  4-6 = 34:1  7-8 = 39:1 (science is 28:1 and for science without labs 34:1)  Waiver necessary to increase  Not a “given” such a waiver would be approved  9-12 varies per agreement with certificated staff bargaining unit ◦ Instructional Assistants  Special education  As required by IEP  Suspension Alternative/Community School 20

21. Expenditures - Staffing ◦ Pupil Support Services  Counseling & Guidance  Attendance and Welfare  Health Services  Library Services  Technology Support  Operating at level necessary to provide basic services ◦ Site/District Administration  Significant reductions  Operating at level necessary to provide basic services 21

22. Expenditures Classified support staff Significant reductions in recent years Maintenance Grounds Custodial Warehouse Clerical Operating at level necessary to provide basic services 22

23. Expenditures Non-staffing costs ◦ Books and Supplies  Allocations to schools and departments via formula  Cuts have been significant ◦ Services and Other Operating Expenses  Consultants  Legal  Audit  Travel & Conference  Dues and Memberships  Maintenance & Repairs  Utilities  Telecommunications 23

24. Expenditures Capital Outlay ◦ Minimal allocation ◦ Equipment replacement plan  Technology – District Plan  Significant implementation in recent years  Limited replacement  Replacement need will be significant  Some departments are current  Upgraded in recent years  Maintenance/Custodial/Grounds – vehicles and equipment  Transportation - buses  Others need a plan  Food service – kitchen equipment  Deferred Maintenance – temporarily suspended. 24

25. 2012-13 Fund Balance Est. Beginning Fund Balance $ 5,502,688 Revenues $ 38,497,952 Expenditures $ 40,259,894 Other Sources/Uses $ 0 Ending Fund Balance $ 3,740,746 Estimated Shortfall remains at $1.228 mil 25

26. Presented at the Budget Workshop 3/27/12 Conclusion Presented at the Budget Workshop 3/27/12 Conclusion Need to reduce expenditures by $1.4 million for 2012-13 Budget adoption. Cost of 1% to all salaries is $299,623 District staff will bring back to the Board a list of items to address the shortfall for Board direction. 26

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