2009/10 Adopted Budget Presentation

1. BUSINESS SERVICES 2009/10 Adopted Budget Presentation Board Meeting June 16, 2009 Prepared by: Dr. Cathy Washer Mr. Douglas Barge Mrs. Carrie Hargis & Staff Y: Business Service/Budget/2009-10/Adopted/Meeting/B06-16-09/Adopoted Budget B06-16-09

2. Table of Contents SECTION DESCRIPTION PAGE # • Introduction • The Budget Process • The 2009/10 Budget • State & County Reporting • Future Work • Fine Tuning Our Work • Recommendations & Discussion • Appendix 1 2 - 3 4 - 11 12 - 13 14 - 16 17 18 21 - 22 i

3. Introduction • School district governing boards are required by Education Code 42127 to adopt a budget on or before July 1 of each fiscal year • To meet this requirement, staff has provided information on: • Major Changes since the last Board Report • Assumptions for the 2009/10 Proposed Budget • Overview of the 2009/10 Proposed Budget • Required Reporting Elements • On June 9, the Board reviewed a report showing how the District could adopt a balanced budget for 2009/10 • The report included the Superintendent’s recommendations for reductions that would be needed • The Board discussed the report and requested clarification on the implementation of some of the strategies within the budget plan • A discussion of those strategies is included in this report 1

4. The Budget Process Section II II

5. How We Got Here • Budget problems began arriving early this year • Late State budget adoption • Sudden drop in enrollment • Rapid deterioration of the national, state and local economies • Early on the District worked to define the problems, develop solutions and project student enrollments for next year • The Superintendent’s Budget Advisory Committee worked hard to develop recommendations • Their meetings were long and more frequent than in past years • They received much more input than past committees • Board meetings were well attended during this budget development process • Input from the community and other stakeholders was lengthy and required, at times, alternative facility arrangements 2

6. How We Got Here • The Superintendent worked hard with her staff to develop strategies for resolving concerns that came out of the various meetings • During this time everyone had to deal with the uncertainty of: • A January Governor’s budget proposal that was DOA • A State adopted budget plan for 2008/09 and 2009/10 which was out of balance before the ink had dried • Three separate May budget proposal revisions that had to be changed before the Legislature took action on any one of them • And a fourth proposal that is still unfolding • Through all of this the District and its Board have been able to put together a budget plan that can be approved knowing that changes will come 3

7. The 2009/10 Budget Section III III

8. Assumptions • The Budget Guidelines were used as the foundation for developing the budget • The process began with the Governor’s January budget proposals for 2009/10 • Enrollment projections were reviewed by the administration and approved by the Board • County required assumptions are incorporated • All of the changes presented at the June 9, 2009 Board meeting are part of this budget package • Changes from Governor’s May Revision • Recommended Budget Reductions 4

9. $ 18,344,102 $21,777,616 224,746,238 151,685,719 $170,029,821 $246,523,854 1. Expenditures $161,289,499 $73,426,765 $234,716,264 2. Ending Fund Balances 11,807,590 8,740,322 3,067,268 $246,523,854 3.Total Uses $170,029,821 $76,494,033 General Fund Summary Unrestricted Restricted Total Sources 1. Beginning Balance $3,433,514 2. Revenues 73,060,519 3. Total Sources $76,494,033 Uses 5

10. 1. Revenue Limit Sources $143,359,258 $4,576,097 $147,935,355 2. Federal Revenue 16,797,855 16,797,855 3. Other State Revenue 24,220,981 32,640,022 56,861,003 4. Other Local Revenue 1,558,293 1,593,732 3,152,025 5. Contrib. to Rest. Programs (17,452,813) 17,452,813 6. Beginning Fund Balances 18,344,102 3,433,514 21,777,616 $76,494,033 $246,523,854 7. TOTAL SOURCES $170,029,821 Sources Description Unrestricted Restricted Total 6

11. Total General Fund Resources 7

12. $120,105,172 1. Certificated Salaries $93,591,193 $26,513,979 2. Classified Salaries 20,659,028 16,635,987 37,295,015 3. Employee Benefits 31,714,014 14,070,164 45,784,178 4. Supplies 3,430,615 5,310,672 8,741,287 6. Capital Outlay 175,460 175,460 5. Contracted Services 11,431,778 6,813,412 18,245,190 7. Other Outgo 462,871 3,907,091 4,369,962 11,807,590 8. Ending Fund Balance 8,740,322 3,067,268 $246,523,854 $170,029,821 $76,494,033 9. TOTAL 9. TOTAL Uses Unrestricted Restricted Total 8

13. Total General Fund Expenditures & Reserves 9

14. 2. Economic Uncertainties 7,314,566 1. Assets $ 431,690 3. Contingencies 150,000 a. AB 87 Reserves $ 844,066 b. Carryover Reserve 0 c. Total Designated Reserves 844,066 5. Categorical Reserves 3,067,268 6.TOTAL ENDING FUND BALANCE $ 11,807,590 Ending Fund Balance 4. Designated Reserves 10

15. The Other Funds • Joe Serna, Jr. Charter School $ 2,075,305 • Adult Education Fund $ 1,211,373 • Includes COLA & Deficit • Child Development Fund $ 2,976,513 • Cafeteria $18,150,134 • Staffing Changes & Increased Revenue • Deferred Maintenance $ 2,946,978 • Reflects lost State Revenues • Facilities $29,146,670 • Project Balances Brought Forward • Special Reserve for Capital Outlay $ 7,545,338 • Bond Interest, Tax Override & Debt Service $24,287,078 • Self-Insurance Funds $15,248,474 11

16. State & County Reporting Section IV IV

17. State & County Reports • County Budget Assumptions • Required by San Joaquin County Office Education • Details the change from 2008/09 Estimated Actuals to 2009/10 Budget • State Reports include Standards & Criteria • Used by county offices of education and the California Department of Education • To develop, review & assess budgets and interim financial reports of school districts in California 12

18. State & County Reports - Continued • State Reports Include Multi-Year Projections 2009/102010-11 • ADA Growth (250) (250) • Revenue COLA (12.45%) (12.45%) • Certificated Step/Col. 1.57% 1.57% • Certificated COLA 0% 0% • Classified Step/Col. 1.70% 1.70% • Classified COLA 0% 0% • Impact-Unrestricted • Change in Fund Balance ($ 302,708) ($710,989) • Ending Fund Balance $8,437,614 $7,726,625 13

19. Future Work Section V V

20. A. IDEA Funds – Declared 7/7/09 $187,818 B. Federal Categorical Stabilization Funds – Declared upon receipt $416,816 $561,387 Implementation Plan Federal IDEA Funds – Declared 7/7/09 $187,818 $416,816 $561,387 Back up Temporary Use of AB87 Construction Reserves – 7/7/09 Budget Revision $416,816 Half Year $280,694 Positions, Funding & Timing Funding Source RSP Para-Educators ($187,818) Librarians ($406,816) Library Assistants($561,387) 14

21. Programs, Funds & Timing • Para-Educators ($187,818) • The Plan: • Personnel will notify affected employees that their hours of services will remain unchanged beginning with the start of their normal calendar work year • IDEA funding will be declared on 7/7/09 with the approval of the Board, via a budget revision • Librarians ($406,816) • The Plan: • Personnel will notify affected employees of their continued employment • Temporarily – Federal IDEA resources (50%) will be used to fund these positions • The Board will declare these resources on 7/7/09, via a budget revision • Once Federal Categorical Stimulus resources become available, these positions will be moved to this funding source and IDEA resources will be allocated to other needs • We have contingency plans as well 15

22. Programs, Funds & Timing • Library Assistants ($561,387) • The Plan: • Personnel will notify affected employees of their continued employment • Temporarily – Federal IDEA resources (50%) will be used to fund these positions • The Board will declare these resources on 7/7/09, via a budget revision, • Once Federal Categorical Stimulus resources become available these positions will be moved to this funding source and IDEA resources will be allocated to other needs • The Contingency Plans: • If Federal IDEA resources become problematic AB87 Capital Reserves would be used • This will require Board action to implement and funding will not cover the entire year (approximately one-half year) • Once Federal Categorical Stimulus resources become available, the Board will be asked to declare those resources and return the AB87 resources 16

23. Fine Tuning Our Work Section VI VI

24. Future Work • Dealing with the future decline of State revenues ($115/ADA) • Base Revenue Limit • Categorical Resources • Dealing with the possible loss (65%) of State Transportation revenues • To fine tune our budget we will use our budget revision process • Budget Revisions give the District the tools necessary to make adjustments as dictated by the State and/or requested by the Board 17

25. Recommendations Section VII VII

26. Recommendation • The Superintendent and Staff recommend that the Board of Education approve the 2009/10 Budget as presented including: • All supporting documentation required by the State and County Office of Education • Included in this recommendation is the approval of: • The list of budget reductions developed by the Board over a number of meetings • Budget guidelines • Enrollment projections • In addition, Staff recommends that any further changes be made using the budget revision process • This process could start as early as the July 7, 2009 Board Meeting 18

27. Appendix Section VIII VIII

28. Appendix • Budget Reductions • Required State Reporting • County Office of Education Reporting IX.

29. A. Budget Reductions *See Attachment in Board Item A

30. B. Required State Reports *See Attachment in Board Item B

31. C. County Office of Education Reports *See Attachment in Board Item C