20082009 Adoption Budget First Reading

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2008-2009 Adoption BudgetFirst Reading
Wednesday, June 18, 2008
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Financial Team

• Vince Matthews State Administrator
• Roberta Mayor Superintendent
• Leon Glaster Chief Financial Officer
• Roberta Sadler Controller
• Jason Willis Budget Director

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Financial Team

• Sandra Anderson-Knox Financial Services Manager
• Roxanne Dunn, Financial Services Associate II
• Linda Wu, Financial Services Associate II
• Katema Slocum, Financial Services Associate II
• Diane OHara, Financial Services Associate I
• Keisha Smith, Financial Services Associate I
• Marla Williams, Financial Services Associate I
• Ruth Dubose, Financial Services Associate I

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Financial Team

• Waly Ndiaye Financial Accountant II
• Quyen Nyo Financial Accountant II
• Azeb Legesse Financial Accountant I
• Minh Co Financial Accountant I
• Michael Ezeh Financial Accountant I
• David Lewis Financial Accountant I
• Adan Hernandez Account Technician/Receivables
  Billing

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Agenda

• Adoption Budget Overview
• Adoption Budget Calendar
• Key Budget Indicators
• May Revise Impact
• Adoption Budget General Fund
• Adoption Budget Other Funds
• Cash Flow Analysis

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Adoption Budget Overview

• The District has been able to achieve a balanced
  budget in 2008-09 however, we continue to be in
  fiscal recovery.
• State budget proposal for 2008-09 has devastated
  the Districts budget resulting in an estimated
  total revenue loss of 20 million.
• Governors May revise budget has provided some
  relief and flexibility, but the Districts budget
  for 2008-09 and beyond is still bleak.
• Creation of a 2008-09 Budget Development calendar
  helped guide District through difficult budgeting
  process.

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Adoption Budget Calendar

• December 2007 Detailed budget calendar
  developed with process and deliverable timelines
  for school and District leadership.
• January 2008 - Strategy Team established budget
  priorities that aligned with District goals and
  strategic activities.
• February 2008 - School and Central Office
  administrators received training on Results-Based
  Budgeting (RBB)
• March April 2008 Schools Central Office
  staff receive support from Financial Services to
  complete their budgets for the 2008-09 school
  year.

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Enrollment ADA Over TimeKey Budget Indicators
Enrollment
Change in Charter enroll
2,543 560
303 353 353
353
(3,720) (1,675)
(1,112) (706) (706)
(706)
Change in District enroll
93.5 94.3 94.5
94.5 94.7
94.7
Anticipated District ADA
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Revenue Limit COLA Over TimeKey Budget
Indicators
Revenue Limit Per ADA
5.92 4.53
5.66 4.83 2.70
Statuary COLA
0.00 0.00
(5.36) (5.36) (5.36)
Deficited COLA
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Special Education EncroachmentKey Budget
Indicators
District contribution to special education as
of total UR
5.9 6.2 6.2
6.1 6.0
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Class Size ReductionKey Budget Indicators
Number of OUSD Classes
Reimburse K-3 (per stud.) 9th (per hour)
1,024 1,071 1,002
1,050 1,078
204 213 201
210 216
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Other Key Budget Indicators
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2008-09 State Budget Proposals
The Districts Adoption Budget incorporates
assumptions presented in the Governors May
Revision for the 2008-09 State Budget.
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Governors May Revise Impact on OUSDs 2008-09
Adoption Budget
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Historical Summary Adopted BudgetUnrestricted
General Fund
The Districts Adoption Budget (June of each
year) for the first time in five years projects a
surplus. Below shows the surplus/(deficit) since
2004-05.
Dollars (in millions)
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2008-09 Adoption BudgetUnrestricted General
Fund Revenues

• Notes
• Per Ed Code, the District used the 2007-08 P2 ADA
  to calculate the base revenue limit for the
  coming fiscal year.
• Revenue Limit includes change in rates based
  upon Governors May Revise.

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2008-09 Adoption BudgetUnrestricted General
Fund Expenditures
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2008-09 Adoption BudgetUnrestricted General
Fund Expenditures

• Assumptions
• Increase in certificated and classified
  salaries, on average, by 1.5 due to step and
  column changes
• Increase in employee benefits due primarily to
  increased health welfare costs estimated at 9
  for 2008-09.
• Utility costs expected to rise approximately 6
  for 2008-09.
• Consultants and contracted services expected to
  decrease by 9 million from 2007-08 to 2008-09.

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Components of Ending Fund BalanceUnrestricted
General Fund

• 2008-09 Ending Fund Balance (projected) 22,545,5
  43
• Reserve for Economic Uncertainty (2) 8.8
  million
• Revolving Cash 150,000
• Audit Findings 3.0 million
• Declining Enrollment 2.5 million
• Unappropriated Fund Balance 8.1 million
• NOTE The unrestricted, ending fund balance
  represent one-time monies that are available to
  the District to account for unforeseen
  circumstances and contingencies.

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Budgetary Concerns

• California economic and fiscal status
• Governors May Revise proposes providing
  education with additional dollars in 2008-09 on
  proposals that may not be approved.
• Projected increases for education in 2009-10 and
  2010-11 may not be realistic based on latest
  trends in statewide economic and fiscal
  indicators.
• Continued declining enrollment The District
  continues to experience a loss of students each
  year which puts pressure on the system to reduce
  expenditures.

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2008-09 Adoption BudgetUnrestricted General
Fund Expenditures By Function
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2008-09 Adoption BudgetCategorical General Fund
Revenues

• Notes
• Special Ed transfer (revenue limit revenue line)
  decreased due to lower projected ADA.
• Federal revenue decreases attributable to NCLB
  Title I and Title II. Carryover will be booked
  during 2007-08 unaudited actuals (September).

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2008-09 Adoption BudgetCategorical General Fund
Expenditures
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2008-09 Adoption BudgetOther Funds
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2008-09 Adoption BudgetOther Funds
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2008-09 Adoption BudgetOther Funds
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Cash Flow Analysis 2007-08
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Cash Flow Analysis 2007-08
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Thank You.

• QUESTIONS?