2008/09 FISCAL YEAR FINANCIAL UPDATE Board Meeting September 16, 2008

2008/09 FISCAL YEAR2008/09 FISCAL YEARFINANCIAL UPDATEFINANCIAL UPDATE

Board MeetingBoard MeetingSeptember 16, 2008September 16, 2008

Y:\business services\budget\2008-09\adjusted\meetings\B09-16-08\Financial Update B09.16.08.ppt

Prepared by:Dr. Odie Douglas, Mr. Douglas Barge,Ms. Maria Fong & Ms. Carrie Hargis

LODI UNIFIED SCHOOL DISTRICTBusiness Services

Executive SummaryExecutive Summary The District is experiencing a dramatic drop in student enrollment.

The State hasn’t adopted a budget; adding complexity to our process. Cash flow is being heavily impacted by changes in State practices.

The forecast for 2009/10 is even worse. Current model indicates structural out of balance is heading in the

wrong direction. State still isn’t fixing its problems.

Timing has required us to move forward using estimated amounts for some items.

This presentation addresses the current year problem only. Doesn’t leave “shock absorber” capacity.

Staff is presenting a recommendation that does not includedoes not include reduction of temporary teachers or moving teachers between sites.

This strategy will mean substantial cuts for the future.

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Table of ContentsTable of Contents

i. Introduction

ii. Student Enrollment

iii. Balancing Sources & Uses

iv. Options, Recommendation & Timelines

v. Appendixa. Prior Years CBEDS & Enrollment

Trend Chartsb. Financial Impact – Expendituresc. Financial Impact – Funding Sources

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DESCRIPTION PAGE #

1

2-4

5

6-9

A-1 – A-6

B-1 – B-4

C-1 – C-2

IntroductionIntroductionEnrollment

Declining from 2008/09 Projected BudgetDeclining from 2007/08 CBEDsThese trends are significant enough (+1%) to

send “red” “red” flags to the County Office of Education on Interim Financial Reports.

Categorical programs have been fully utilized and carryovers are less than prior year trends.

We need to begin planning now. (Per Doug!). (Per Doug!)

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Student EnrollmentStudent Enrollment

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1st 2nd 3rd 4th 5th 6th Current AdoptedWeek Week Week Week Week Week Enrollment* Budget Diff

1. Regular K-6 15,382 (126) 15 59 21 (10) 15,341 15,666 (325)

2. Regular 7-8 4,370 (91) (20) 4 - (4) 4,259 4,272 (13)

3. Regular 9-12 8,084 (36) (22) (24) (14) (9) 7,979 8,099 (120)

4. Alternative 264 (16) (4) 40 (5) (1) 278 279 (1)

5. Middle College HS 227 29 (1) (1) - (1) 253 244 9

6. Spec. Ed. (SDC) 851 2 (5) 4 10 8 870 897 (27)

7. K-12 ISP 307 84 - 18 7 (18) 398 409 (11)

8. Horizon 12 1 1 (1) 2 2 17 17 -

9. Community Day 186 2 (1) 1 - 1 189 220 (31)

10. Migrant - - - - - - - 47 (47)

11. Serna Charter 300 - (2) - - - 298 289 9

12. All Others 32 (2) 3 3 6 - 42 - 42

13. Total K-12 30,015 (153) (36) 103 27 (32) 29,924 30,439 (515)

Less Projected Growth Students 194*Current Enrollment for Week Ending 9/5/08 (321)

Current Enrollment as of Current Enrollment as of 9/5/089/5/08

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All Grades ~ 2008/09

29,200

29,700

30,200

08/09 Budget 08/09 Actual

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Elementary ~ 2008/09

14,700

15,000

15,300

15,600

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Balancing Sources & Uses

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Recapping the BalanceRecapping the Balance

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1. Income From Students

($3,136,763)

2. All Other Sources (Appendix C-2)

($3,136,763)

7,011,993

B. B. SourcesSources

3. Total Sources ($3,336,763)

$3,875,230

$7,211,993

$7,211,993

($200,000)

DescriptionsDescriptions On-GoingOn-Going TotalTotal

A. A. UsesUses (Appendix B1-B3)

$5,065,2$5,065,27575

($932,052($932,052))

One-One-TimeTime

$5,997,327$5,997,327

C. Total Funds AvailableC. Total Funds Available ($2,404,711)($2,404,711) ($1,190,045)($1,190,045)

D. Structural BalancingD. Structural Balancing (467,004)(467,004) 0 0

$1,214,666$1,214,666

467,004467,004

E. New Structural BalanceE. New Structural Balance ($2,871,715)($2,871,715) ($1,190,045)($1,190,045)$1,681,670$1,681,670

Options, Recommendation & Timelines

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Options ConsideredOptions Considered

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DESCRIPTION FTE AMOUNT

A. Growth Teachers 7.48 458,328$ B. K-6 Reserve Teachers 6.50 398,341 C. 7-12 Reserve Teacher 4.00 245,133 D. K-6 Over-Formula Teachers 7.49 462,225 E. 7-8 Over-Formula Teachers 1.33 82,077 F. 9-12 Over-Formula Teachers 2.60 160,451 G. Reduce JAESC Budgets 5% (non-personnel) 121,611 H. Reduce Site Carryovers to 5% 56,837 I. Reduce Site Lottery Carryover 10% 14,640 J. Eliminate Dist. Level PO Carryover 200,000 K. Over-Formula Vacant VP @ Morada 0.50 54,714

TOTAL 29.90 2,254,357$

OUT OF BALANCE AMOUNT (1,190,045)$

BALANCE REMAINING 1,064,312$

Recommendation

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DESCRIPTION FTE AMOUNT

A. Growth Teachers 7.48 458,328$ B. K-6 Reserve Teachers 6.50 398,340 C. 7-12 Reserve Teacher 4.00 245,133 D. Reduce JAESC Budgets 2.50% (non-personnel) 60,806 E. Over-Formula Vacant VP @ Morada 0.50 54,714

TOTAL 18.48 1,217,321$

OUT OF BALANCE AMOUNT (1,190,045)$

BALANCE REMAINING 27,276$

Note: If this recommendation is not agreeable and there is direction to reduce over-formulaover-formula teachers (page 6, items D-F) that action would result in the reduction of temporary teachers and movement of students between schools at the K-6 level.

Reviewing Key MessagesReviewing Key MessagesHonor 2008/09 agreements with employee groups

Continue delaying the hiring process in some vacant positions

Continue reviewing the need to fill some vacant positions

Maximize use of categorical funds

Maintain employment of existing probationary and permanent staff

Reduce site General Fund carryovers to 10% (vs. current 15%) (submit hardship appeal, if necessary)

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Timeline & Next StepsTimeline & Next StepsCabinet Review 9/8/08

Review Report with Employee Groups prior to

9/16/08

Board of Education Approval 9/16/08

Board of Education Action 10/7/08Budget RevisionsUnaudited ActualsGann Limit

State Adopted Budget ?????99

The End!

Appendix

“The Details”

• Prior Years CBEDS & Enrollment Trend Charts

• Financial Impact - Expenditures

• Financial Impact - Funding Sources

A-1 – A-6

B-1 – B-4

C-1 – C-2

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Comparison to Prior Year Comparison to Prior Year CBEDsCBEDs

A-1A-1

Current 2007/08Enrollment* CBEDs Difference

1. Regular K-6 15,341 15,508 (167)

2. Regular 7-8 4,259 4,278 (19)

3. Regular 9-12 7,979 8,057 (78)

4. Alternative 278 279 (1)

5. Middle College HS 253 244 9

6. Spec. Ed. (SDC) 870 897 (27)

7. K-12 ISP 398 409 (11)

8. Horizon 17 17 -

9. Community Day 189 175 14

10. Migrant - 47 (47)

11. Serna Charter 298 289 9

12. All Others 42 45 (3)

13. Total K-12 29,924 30,245 (321)

*Current Enrollment for Week Ending 9/5/08

All Grades ~ History

29,200

29,700

30,200

05/06 Budget 05/06 Actuals 06/07 Budget 06/07 Actuals 07/08 Budget 07/08 Actual


A-2A-2

Elementary ~History

14,700

15,000

15,300

15,600

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A-3A-3

Middle Schools

4,200

4,250

4,300

4,350

4,400

4,450

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A-4A-4

High Schools

7,600

7,800

8,000

8,200

8,400

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A-5A-5

Other Programs Schools

1,900

1,950

2,000

2,050

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2,250

2,300

2,350

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A-6A-6

Summary of Expense Summary of Expense ChangesChanges

DESCRIPTION F.T.E BUDGET

1. Teacher Staffing ($1,158,052)(18.90)

4. Total Growth Expenses4. Total Growth Expenses ($1,490,344)($1,490,344)(25.66)(25.66)

3. Special Education Staffing (304,722)(6.76)

2. Per Pupil Allocations (27,570)

B-1B-1

Summary of Summary of On-GoingOn-Going ExpensesExpenses

Descriptions F.T.E BUDGET

1. Required Changes (*)

$253,570

2. Re-Instate Special Education Staffing

* Details are available* Details are available

304,722

6.76

3. Total On-Going 3. Total On-Going ExpensesExpenses

$558,292$558,2926.766.76

B-2B-2

Summary of Summary of One-TimeOne-Time ExpensesExpenses

DESCRIPTIONSDESCRIPTIONS F.T.EF.T.E..

BUDGETBUDGET

1. Carryover of Site/Support Allocations (*)

2. Purchase Order Carryovers (*)

$4,439,743

200,000

* Details are available* Details are available

6. Total One-Time Expenses

$5,997,32718.90

4. General Reserve Requirements (3%)

147,532

3. Re-Instate Teacher Staffing 1,158,05218.90

5. Required Changes (*) 52,000

B-3B-3

Recapping of Increased Recapping of Increased CostsCosts

DescriptionDescription F.T.EF.T.E BudgetBudget

D. Total Estimated UsesD. Total Estimated Uses ($932,052)($932,052)(18.90)(18.90)

C. Increased One-time Costs

A. Growth Costs ($1,490,344)(25.66)

B. Increased On-going Costs 558,292

On-GoingOn-Going

$5,997,327

$5,997,327$5,997,327

F.T.EF.T.E

18.9018.90

18.90

One-TimeOne-Time

BudgetBudget

$5,065,275$5,065,275

TotalTotal-0--0-

In AppropriationsIn Appropriations

F.T.E.F.T.E.

6.76

B-4B-4

On-GoingOn-Going Funding Funding SourcesSources

E. Total Estimated New E. Total Estimated New IncomeIncome

($3,136,76($3,136,763)3)

NEW INCOME BUDGET

A. Net Growth Income ($2,664,600)

B. Special Education Growth (261,898)

C. Class Size Reduction – Grades K-3 (153,153)D. Lottery (57,112)

C-1C-1

Other SourcesOther Sources

DescriptionDescription On-GoingOn-Going One TimeOne TimeTotalTotal

BudgetBudget

E. Total Other SourcesE. Total Other Sources ($200,000)($200,000) $7,011,993$7,011,993$7,211,993$7,211,993

A. Existing Carry Over Reserves $1,800,000 $1,800,000

B. Ending Fund Balance 4,111,993 4,111,993

C. Interest (due to reduced cash) ($200,000) (200,000)

D. One Time Funds – Declining Enrollment $1,300,000 1,300,000

C-2C-2

2008/09 FISCAL YEAR FINANCIAL UPDATE Board Meeting September 16, 2008

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Transcript of 2008/09 FISCAL YEAR FINANCIAL UPDATE Board Meeting September 16, 2008