1 / 20

2009-10 First Interim Budget Highlights: Education Funding Challenges in California

The 2009-10 interim budget report highlights significant challenges in California's education funding. The state continues to lag behind national averages, with the gap in per-pupil expenditures expected to exceed $1,700. Revenue volatility remains high, with a cumulative reduction of 14.7% and new revenue limits imposed. Funding for Home-to-School Transportation is drastically cut by 19.84% from previous levels. The report emphasizes the need for a stable funding stream to support schools amidst these financial uncertainties.

abril
Télécharger la présentation

2009-10 First Interim Budget Highlights: Education Funding Challenges in California

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  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.

More Related