2010-2011 Unaudited ActualsRamona Unified School District

Board MeetingAugust 25, 2011

Importance of End-of-Year CloseStaff has reported on the importance of the

unaudited actualsThe ONLY time during the year when an accurate

picture of the District’s finances can be seenShows the picture on one specific day -- June 30th

All revenues and expenses are accounted forAll other times are predictions of the finances

However, with the current fiscal crisis, end-of-year close is a piece of information which helps to determine the finances for future years

2010-2011 Financial HighlightsFederal Jobs Bill

$1.19 million to RUSD, which has been spentFederal Stimulus Dollars

Spent the remainder of these funds in the amount of $900,000

State Budget Adoption (October 2010)State budget was adopted with no anticipated reduction

to revenuesNo mid-year reductions

Remained on qualified statusGovernor Brown took office, reduced non-education

budget, and proposed an extension of temporary taxes

2010-2011 Financial HighlightsSchool districts ended with a roller coaster

ride of flat funding versus a reduction of revenue limits to their 2011-2012 budgets

Now, with a signed 11-12 budget, still uncertainty with:World economyNational economyState economy

The State budget has trigger language for mid-year reductions Current State revenues are below projections for

the triggers Triggers could mean a mid-year cut of $2 million to

Ramona

2010-2011 Unaudited ActualsTotal Revenues $50,281,269.58Total Expenses $49,416,532.47Difference $ 864,737.11

Shows both unrestricted side and restricted side of the financial picture

A transfer of $800,000 from Special Reserve, Fund 17, was part of the closing of 2010-2011

The Final 2010-2011 OutcomeBeginning Balance $ 7,329,657.65Ending Balance $ 8,194,394.76

Unrestricted Ending Balance $ 6,908,672.50Restricted Ending Balance $ 1,285,722.26

Components of Ending BalanceUnrestrictedRevolving Cash $25,000.00 Formerly Restricted Programs $1,214,769.74 Site/Department Carryover $666,713.12Vacation Liability $720,064.00Remaining

Balance for 2012-2013 $4,282,125.64

Total $6,908,672.50

Vacation Liability plus remaining balance means $5,002,189 will be carried over to 2012-2013 school year

Multi-Year Problem2011-2012 (current year), RUSD has the fiscal resources to meet obligations

2012-2013 (only 10 months away), RUSD must realize significant reductions to meet its financial obligations

What could change the scenario?

9

2011-2012 2012-2013 2013-2014

Beg. Bal. 5,002,189 2,862,448 (1,932,178)

Revenues 45,638,522 45,476,614 46,306,864

Total Rev. 50,640,711 48,339,062 44,374,686

Expenses 48,678,263 50,271,240 51,875,177

Transfers 900,000 0 0

Ending Bal. 2,862,448 (1,932,178) (7,500,491)

Multi-Year Projection

Multi-Year Problem - ConclusionRamona is facing a $1.9 million shortfall for 2012-2013

Dollars in various funding sources, such as textbooks, ROP, and site/department carryovers, will help to fund this shortfall

However, this is not enough to eliminate the shortfallOther reductions must happen to alleviate the shortfall

2013-2014 year is projecting a $7.5 million shortfallMust begin to plan for this sooner rather than later

2014-2015 becomes the third year in the forecast, starting with the first interim report in December

Multi-year projections are constantly changing with new information

Loss of Federal FundingIn 2010-2011 Ramona received and

spent: $1,190,000 in Fed Jobs money $900,000 in remaining ARRA funds

These Federal dollars (over $2 million) are not being replaced for 2011-2012

Costs have gone up: Over $500,000 in health care costs alone

Health Insurance CostsGap for Kaiser and Health Net insurance

programs has increased significantlyHealth Net increase is $507,000Kaiser increase is marginal

CSEA, RTA, and ALT have agreed to negotiate and/or discuss cost-savings ideas with the District by Sept. 7

Open Enrollment has been delayed to determine if savings are possible for this year

May be possible to cut the 2012-2013 shortfall with creative solutions to control rising health care costs

Resolution 2010-11-21 The Board adopted a resolution in June that

identified the amount of budget reductions needed in future years

RUSD must submit a list of Board-approved budget reductions by the First Interim Report, December 15, 2011, which corrects the imbalance

RUSD must provide a list of the cuts that have already been made and a list outlining the timetable of remaining cuts and/or concessions

Other FundsFund 17 Special Reserve Fund

Revenues (Interest) $ 20,269.76Expenses (Transfers out) $ 820,269.76Ending Balance $2,395,945.55

Note about the ending balance: A 3% minimum reserve is $1,482,496 $900,000 is budgeted to be transferred to general fund in 2011-

2012 $2,395,945 minus $900,000 leaves ONLY the 3% reserve

Other FundsCafeteria Fund

Revenues

$1,932,726.91Expenses

$2,003,614.77Ending Balance

$ 688,705.29Self Insurance Fund

Revenues

$577,225.74Expenses

$719,617.56Ending Balance

$209,580.49

Other FundsDeveloper Fees

Revenues

$ 141,926.27 Expenses

$1,076,290.91Ending Balance

$7,266,061.99

ConclusionRamona Unified is facing a potentially

devastating financial crisis in 2012-2013 and beyondThis is without any “triggers” happeningDownward world, national, and state

economies could mean no growth for school funding and no “silver bullet”

Structural problem in our budgetCash shortages and the inability to borrow the

cash will become the problem