Ramona Unified School District

First Interim Report

December 17, 2009

Interim Report

What is an Interim Report? Report of a district’s financial status, including

revised projections and activity through a certain point in the fiscal year

What is the Purpose of the Interim Report? Review financial condition of district

Revise assumptions in the previous budget Determine if revisions are needed Provide status report to interested parties Determine if district will meet financial obligations

First Interim Report

Budget is brought to the Board four times a year July 1st First Budget of the year December 15th First Interim Report March 15th Second Interim Report September 15th Unaudited Actuals

Keep Board apprised of budget assumptions and new developments

First Interim Report sets the expenditure budgets for the year

Budget

Budget details a plan for spending Budget constantly changes as new

information is received and incorporated into the adopted Budget

Most change occurs from the adoption of the Budget (July 1st) until the First Interim Report State of California Budget is not even signed Previous year’s Budget is not finalized Enrollment is not set, so staffing for the

enrollment is not finalized

Tonight

Major Assumptions Revenues Enrollment

Budgets Staffing

The Numbers of the First Interim Report Carryover from the Unaudited Actuals

Setting the expenditures for the year

What RUSD and State of California can expect for the next few years

Major Assumptions

The estimated actuals and the June adoption The estimated actuals and the June adoption of the 2009-2010 Budget were based upon of the 2009-2010 Budget were based upon the Governor’s May 14, 2009 proposalsthe Governor’s May 14, 2009 proposals

What was signed into law is much different What was signed into law is much different than what was proposed, creating a very than what was proposed, creating a very different outcome of the 2008-2009 actuals different outcome of the 2008-2009 actuals and the 2009-2010 Budget than had been and the 2009-2010 Budget than had been anticipatedanticipated

Revenues

Revenue limit has decreased due to the one-time cut to base revenue limit of $252.83 per Average Daily Attendance (ADA), which equates to a decrease of $1,631,525

This dollar amount was part of the ending balance for 2008-2009

Now this reduction is part of the Revenues

Enrollment

Until the first day of the new school year, enrollment is just a projection. Yet enrollment has major budgetary impacts for: Staffing School Allocation Transportation

The Numbers

Total Revenues $49,315,332 Total Expenses $55,491,444 Difference ($ 6,176,112)

Beginning Balance $ 8,552,469 Ending Balance* $ 2,376,356

*Projected Ending Balance

The Numbers

Components of the endingfund balance $2,376,356

2010-2011 Budget $ 1,886,910 Accrued Vacation $ 464,446 Other $ 25,000

Percentage Reserve $1,667,743 to meet required 3% reserve 4.27% general fund projected ending balance

The Numbers

RUSD is projected to deficit spend by over $6.1 Million

Carryover from 2008-2009 must be factored into the current Budget, which inflates expenditures without adding revenues to offset them, thus creating deficit spending

Carryover creates a big difference in the expenditure budgets from the July 1st adopted Budget to the First Interim Report

The Federal Stimulus Dollars account for a majority of the carryover

Carryover Factored Into Budget

Carryover in Budget

ARRA/ASFSF Funds $2,252,229.00 Site/Dept. Carryover $ 814,944.00 Unrestricted Cat. $ 693,799.82 Restricted Cat. $1,790,348.67 Total $5,551,321.49

Consists of budgeted expenditures, no new revenues Revenues are from previous years

The majority of these dollars are expended under the books and supplies object code, which the budget increased by $3,158,000

Comparisons - Revenue

Comparisons - Salaries

Comparisons - Benefits

Major Changes

School is back in session, so enrollment numbers are tied in

Retirees, replaced positions, and new hires into salary schedule

Health benefits have been finalized

Dollars in ending balance have been distributed to sites and departments

Looking Ahead

Second Interim Report will be presented to the Board in March Will look at assumptions and make adjustments

Any mid-year reductions from the State Emeritus program will be implemented and budget

changes will be reflected in the budget

State of California Budget for 2009-2010, 2010-2011 Predicting a $20 Billion deficit January 13th 2010-2011 Governor’s Budget

Workshop, presented by School Services of California, Inc.

Multi-Year Projections

State requires each district to project out current year and next two fiscal years to maintain fiscal health and to identify any significant issues

RUSD’s reserve meets State’s requirement for 2009-2010, even with a potential mid-year cut

RUSD’s reserve will meet the State’s requirement for 2010-2011 with assumed early retirement incentive and projected budget savings

Multi-Year Projections

RUSD’s reserve will meet the State’s requirement for 2011-2012 if we continue to maintain diligence on expenditure reductions

However, the potential of large reductions to funding from the State, combined with continued decline in enrollment, could create a qualified status for Ramona Unified School District

Qualified Status: A district might not be able to meet its financial obligations for the current and 2 additional years

It is very difficult to forecast that far out

Conclusion

Thus far, RUSD has weathered the financial storm, yet the storm is still out there and the next few years will be the toughest ones yet

No relief from the Federal Government in a second wave of dollars

More cuts needed at the state level