Plumas Lake Elementary School District 2009-10 Governor’s Budget Update January 20, 2009
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Transcript of Plumas Lake Elementary School District 2009-10 Governor’s Budget Update January 20, 2009
Governor’s Budget 2009-10
Governor’s proposal for mid-year reductions in 2008-09:
The 0.68% COLA included in the Adopted Budget is eliminated
Further revenue limit reductions of 4.5% – total deficit of 9.685%
The overall reduction to Proposition 98 for 2008-09 is $6.3 billion
Elimination of Deferred Maintenance match requirement
Reduction of Routine Restricted Maintenance Account set aside requirement
For 2009-10, the Governor’s proposal included:
COLA of 5.02%, but not funded
Revenue limit cut of $1.6 billion - 6.97% of new base revenue limit
Total deficit is 16.161%
No COLA for categorical programs
Categorical and other flexibility to help school agencies deal with the loss of funding
1
General Fund Revenue Collapse
$103.0 $102.6 $102.6
$87.5
$102.6
$86.3
$75.0
$80.0
$85.0
$90.0
$95.0
$100.0
$105.0
2007-08 2008-09 2009-10
Baseline Revenue Projections1
(In Billions) 2008-09 Budget Act2009-10 Governor's Budget
1 Excludes new tax proposalsSource: 2009-10 Governor's Budget
2008-09 Proposition 98 Guarantee
$50
$55
$60
($ in Billions)
2008 Budget Act 2009-10 Governor's Budget
$58.1 $58.1
MinimumGuarantee
No COLA$1.6 billion revenue limit cut
April deferralSpecial fund shift“Settle up” redesignation
MinimumGuarantee
$56.1 billion
$51.5 billion
Real Cut
Actual Spending
2009-10 Proposition 98 Guarantee
$50
$55
$60
($ in Billions)
2008 Budget Act Projections* 2009-10 Governor's Budget
$59.0 $59.0
MinimumGuarantee
Special fund shift
MinimumGuarantee
$56.3 billion
$55.9 billion
2008-09Proposition 98 Reduction
Actual Spending
Governor’s and Legislature’s Major Proposals
Provision Governor’s January Proposal Legislative Proposal (SBX14, vetoed)
Revenue Limit Eliminate 0.68% COLA; reduce further by 4.5%
Eliminate 0.68% COLA
Categorical Program Eliminations High Priority Schools Grant Program, Math and Reading Professional Development, Deferred Maintenance, Instructional materials, Professional Development Block Grant and others
Categorical Program Reductions Minor changes Many programs
Prior-Year Categorical Balances Transfer (with limitations) Transfer (with limitations)
Current-Year Categorical Allocations
Transfer (no dollar limitation) after public hearing
Limit Mega-Item transfer for Home-to School Transportation to “in” only
Routine Restrict Maintenance Set-Aside
Reduce from 3% to 1% Reduced from 3% to 1%
Deferred Maintenance Match Requirement
Eliminate Eliminate
Reserve for Economic Uncertainties
Reduce by half for 2008-09 and 2009-10 -
What Does it Mean for Our District?
Freeze on all non-essential expenses to preserve fund balance
Impact of eliminating deferred maintenance funding by $28,000
Impact of reducing RRM funding - $165,416
Ending fund balance – where do we stand relative to requirements?
No COLA - still have the following costs:
Fixed costs – electricity, gas, water, sewer, insurance
Step and column
6
Adopting the Budget
Balanced budget must be adopted by district prior to June 30, 2009
State Budget will most likely not be in place by then
Developing the budget requires:
Clarifying assumptions
How much revenue?
What flexibility options will be acted upon?
How will expenditures change?
Once the State Budget is adopted, the district makes adjustments to its budget within 45 days
7
Next Steps
Make necessary adjustments at Second Interim:
Eliminate 0.68% COLAReduce Revenue Limit additional 4.567%Eliminate Deferred Maintenance MatchSet aside unallocated State categorical funds
Prepare Multi-Year Projections based on what we know now
Begin building budget for 2009-10 based on what we know now
Review seniority lists for accuracy