Douglas County Douglas County School District Re.1School District Re.1

Preliminary BudgetPreliminary Budget

Fiscal Year 2010 – 2011Fiscal Year 2010 – 2011

Presented to the Board of EducationPresented to the Board of Education

Tuesday April 20, 2010Tuesday April 20, 2010

BOE PresentationsBOE Presentations

April 20, 2010 ~ Tonight Preliminary General Fund Budget

May 18, 2010 Proposed General Fund Budget Proposed Non-General Fund (“Other”) Budgets

June 15, 2010 Adoption of all Funds: FY 2010 – 2011 Budgets

District’s Budget Requirements

Compliance Colorado and Federal Law Board Goals and Executive Limitations

Preliminary 2010-11 General Fund Budget

Tonight’s AgendaTonight’s Agenda

The District’sThe District’sBudget Budget RequirementsRequirements

Colorado Law Colorado Law requires a district’s annual budget to be requires a district’s annual budget to be balanced and that a district not overspend appropriated balanced and that a district not overspend appropriated monies.monies.

The budget must be adopted no later than June 30th.The budget must be adopted no later than June 30th.

The Board’s Policy Book The Board’s Policy Book sets as a goal that the district sets as a goal that the district demonstrate efficient use of its personnel, financial, demonstrate efficient use of its personnel, financial, technological and physical assets. To that end, the technological and physical assets. To that end, the superintendent shall not fail to direct the resources of superintendent shall not fail to direct the resources of the district to most effectively enhance student the district to most effectively enhance student potential. potential.

Financial planning may not deviate materially from the Board’s Ends priorities, risk financial jeopardy or fail to be derived from a plan projecting at least five years.

Compliance with Board Compliance with Board Goals & Executive Goals & Executive LimitationLimitation

EL 1.5 Financial Planning & Budgeting

FY 2010-2011

General Assumptions

Non-Appropriation of the lease for HR North/Center for Staff & Community Development

Reductions/Revenues Reductions/Revenues for FY 2010-11for FY 2010-11

SUMMARY

Central Offices/Services $7,875,000

Program Reduction/Reorganizations $5,350,000

School-Based Funding $15,500,000

Compensation $6,500,000

Pay for Performance $4,200,000

TOTAL $39,425,000

Fees for Services $3,300,000

TOTAL REDUCTIONS/REVENUES $42,725,000

General Fund Five Year General Fund Five Year Financial Projection forFinancial Projection forFY 2009-10 and FY 2010-11FY 2009-10 and FY 2010-11

FY 2010-2011 2010-11 2011-12 2012-13Beginning Fund Balance $4,180,746 $7,607,270 ($70,757)Revenue 446,206,488 427,589,812 434,978,556Expenditures 442,779,964 435,267,839 436,306,735Revenue over (under) Expenditures 3,426,524 (7,678,027) (1,328,179)Ending Fund Balance 7,607,270 (70,757) (1,398,936)Ending Fund Balance % of Revenue less Specific Transfers 1.90% (0.02%) (0.36%)Desired Fund Balance of: 3.00% 11,985,229 11,395,377 11,694,074

Exp/Rev adj needed to have desired Fund Balance (4,377,959) (11,466,134) (13,093,010)

Letter of Credit (LOC) 12,700,000 12,700,000 12,700,000Exp/Rev adj needed to have desired FB, using the LOC $8,322,041 $1,233,866 ($393,010)

2009-10 2010-11 2011-12 2012-13

Revenue $466,102,267 $485,219,076 $497,537,602 $512,928,293Expenditures 476,977,336 482,056,066 506,162,875 529,045,848Revenue over (under) Expenditures (10,875,069) 3,163,010 (8,625,273) (16,117,554)Ending Fund Balance 4,961,077 8,124,087 (501,186) (16,618,741)

Ending Fund Balance % of Revenue less Specific Transfers 1.23% 1.92% (0.12%) (3.68%)Desired Fund Balance of: 5.00% 20,235,082 21,153,770 21,677,800 22,599,283 Exp/Rev adj needed to have desired Fund Balance (15,274,005) (13,029,683) (22,178,986) (39,218,024)

Letter of Credit (LOC) 12,700,000 12,700,000 12,700,000 12,700,000 Exp/Rev adj needed to have desired FB, using LOC 2,387,072 7,794,404 (9,980,172) (43,136,764)

FY 2009-2010

Pending Items forPending Items for

FY2010-11FY2010-11

School Finance Act Federal Dollars Assessed Valuation Uncertainty Health Insurance Changes Negotiations Resolutions State Economic Situation November Initiatives

Next StepsNext Steps

Finalization of School Finance Act Negotiations Insurance Plan Changes Updated Three Year Projections Proposed Budget for May 18, 2010