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2009-10 First Interim Budget Highlights

2009-10 First Interim Budget Highlights. Chief Business Official Mr. Tim Zearley. Education Funding in Other States. Source: Center for Reinventing Public Education. California Continues to Fall Further Behind. We certainly make up no ground in 2009-10 and actually lose some

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2009-10 First Interim Budget Highlights

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  1. 2009-10 First Interim Budget Highlights Chief Business Official Mr. Tim Zearley

  2. Education Funding in Other States Source: Center for Reinventing Public Education

  3. California Continues to Fall Further Behind • We certainly make up no ground in 2009-10 and actually lose some • We can expect our 2006-07 gap of $731 from the national average in per-pupil expenditures to grow to more than $1,700 (est.) in 2009-10 Source: National Center for Education Statistics, 2009; Bureau of Labor Statistics 2008 CPI Inflation Calculator

  4. General Fund Revenue Trends 2007-08 2008-09 2009-10 Source: Legislative Analyst’s Office

  5. Per-ADA Revenue Volatility • As in the past, we continue to havevery high volatility in revenuesdirected toward education • 2009-10 continues the roller-coasterride as revenue continues to fall • The 2009-10 reduction is a cumulative14.7% that includes the effect of the$250 one-time reduction to revenue limits • California needs to provide a more stablerevenue stream for schools

  6. Per-ADA Revenue Volatility

  7. Additional Revenue Limit Reductions • ABX4 2 (Chapter 2/2009) imposed a revenue limit deficit of 18.355% for 2009-10, an increase from the 16.24% proposed in the May Revision • Loss of $331,320 from June Budget Adoption • In addition to the ongoing revenue limit cut imposed by the deficit factor, the Budget revision imposed a one-time reduction of $250 per P-2 ADA in 2008-09 • Loss of $640,924 from June Budget Adoption

  8. Revenue Limit Deficit Factors

  9. Impact of One-Time Revenue Limit Reduction

  10. Changes from the Latest Budget: Home-to-School Transportation The May Revision proposed cutting Home-to-School Transportation funding by 65% – YIKES! The final result is that Home-to-SchoolTransportation is now a Tier II program This means it is reduced by 19.84%from the 2007-08 level of fundingfor 2009-10 and beyond Loss of $167,907 from June Budget Adoption

  11. 2009-10 Cash Flow • Actual apportionments will deviate significantly from the newly enacted schedule • Apportionments are pushed out even later in the fiscal year • Expect only 10% of your annual apportionment through the first three months * One-time adjustment to recover distribution of overapportionment in July 2009, which equates to a 1.5% reduction in October 2009.

  12. 2009-10 Cash Flow

  13. The Use of Multiyear Projections • Multiyear projections (MYPs) are required by AB 1200/AB 2756 • Recognize that they are projections, not forecasts • Projections are expected to change as various factors change – they are not predictions • Projections are the mathematical result of today’s decisions based on a given set of assumptions • Forecasts are predictions of the future – there is a higher implied reliability factor than for projections • Projections will change anytime the underlying factors change – therefore plan

  14. SSC Financial Dartboard

  15. Historical CBEDS Enrollment

  16. Approve The Budget? • Do we have adequate reserves? Yes • Are we deficit spending? Yes If so, is it planned? Yes • It is a budget. Are our estimates reasonable? Yes • Can we sustain in MYP? Yes with reductions for declining enrollment • If so, then you can confidently approve this budget.

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