Board Presentation

1
Folsom Cordova Unified School District

• Board Presentation
• May 21, 2009

2
Third Financial Interim Report

• Districts financial status was changed from
  positive to qualified in March
• Positive-ok for this year and next two years
• Qualified-may have a problem in one or more years
  
• Negative-wont be able to meet this years
  obligations or wont be able to meet next year
• Fiscal problem in 2009-10 and beyond

3
Major Mid-Year Revisions

• 2008-09
• Take back 0.68 COLA (42/student)
• Further reduce revenue by 118 per student
• Reduction of 462,000 in categorical programs
  that encroach into non-categorical general fund
  (unrestricted)
• Loss to FCUSD 3.35 million
• Use savings from spending chill and categorical
  funds

4
Categorical FlexibilityThree Tiers

• Tier I-no reductions or flexibility
• Tier II-reductions no flexibility
• Tier III-reductions total flexibility (39
  programs)
• Provision for redirecting some categorical
  dollars is permitted through 2012/13
• Categorical funding reductions of 15.6 are
  slated for 2008/09 and additional 4.9 cut in
  2009-10
• Reductions continue through 2012/13
• Requirements of 39 programs affected are deemed
  to be met

5
15 reduction and flexibility

• Categorical programs
• School/Library Improvement Program (SLIP)
  (880,000)
• ROP and CTE Grants (271,000)
• Adult Education and CBET (1,100,000)
• Instructional Materials (regular and ESL)
  (995,000)
• Gifted and Talented (GATE) (115,000)
• School Safety Grants, Cal Safe (205,000)
• Professional Development, PAR, and other training
  (537,000)

6
15 reduction and flexibility

• Categorical programs
• PE, Music, and Arts Grants (1,007,000)
• School Counseling Grant (482,000)
• CAHSEE Intensive Instruction (99,000)
• One-time School Block Grants (prior years)
• 4.50 million in flexibility
• Proposal to flex approximately 1.5 million

7
15 reduction and flexibility

• Categorical programs
• Ninth Grade CSR (29,000)
• Community Day School (encroachment program)
• Continuation Education (Pupil Retention Grant)
  (encroachment program)
• Targeted Instruction Improvement Grant
  (Ed Tech/Transportation
  encroachment program)
• Supplemental Instruction-Hourly Intervention
  Programs and Summer School (encroachment
  program)
• All of these programs encroach into unrestricted
  general ed funding general fund has taken a
  further reduction of 462,000

8
Flexibility in Class Sizes Grades K-3

• Financial penalties are modified to be
• 5 penalty from 20.45 21.44
• 10 penalty from 21.45 22.44
• 15 penalty from 22.45 22.94
• 20 penalty from 22.95 24.94
• 30 penalty from above 24.95
• Reduced funding for the first 20 students in
  these classes
• No funding for remainder of students

9
Federal Stimulus Package

• 450,000 net after loss of regular Title 1
  allocation
• Title 1 (services to low income and academically
  at risk students)
• 1,782,500
• IDEA Special Education
• FCUSD can fund the special education increased
  costs with these dollars (new programs for 09-10
  784,000)
• And use to offset other increased costs
  previously paid by the general fund (998,500)

10
Federal Stimulus

• State Fiscal Stabilization Fund (SFSF)
• District submitted application 4/23/09
• 2.6 billion state-wide for K-12
• One-time appropriation to help stabilize state
  and local education budgets
• Spend funds to save jobs
• School improvement and reform
• Ensure transparency
• Minimize the funding cliff
• Obligate funds by September 30, 2011
• 4.9 million plus additional amt for categoricals

11
Multi-Year Projections

• Assumptions
• No COLA 2009-10, 2010-11 or 2011-12
• No Enrollment Growth
• Further Reductions in Both Base Revenue and
  Categoricals
• Implementation of 2.7 Million Ongoing Budget
  Cuts in 2009-10
• Use of Categorical Funds to Fill Remaining Budget
  Gap
• Additional Cuts Needed in 2010-11 and 2011-12

12
2009-10

• All reductions from 2008-09 still in place
• Ongoing loss of 3.35 million
• Further reduction of 45 per student
• Ongoing loss of 800,000
• Increases for ongoing obligations for
  step/column, health benefits, utilities, PL
  insurance, etc. ongoing costs of 2.78 million
• Ongoing structural deficit of 6.93 million

13
2009/10 FCUSD

• 6,930,000 Ongoing shortfall
• - 6,218,000 Proposed budget cuts
• 712,000 Remaining shortfall
• Will need to identify additional
• cuts or revenue
• before June budget adoption

14
2010/11 FCUSD

• No COLA from the state
• New ongoing costs
• Step and column
• Health benefits
• Utilities
• Property and liability insurance
• Special education programs
• Estimate 5.2 million in cuts to fund the above
  items
• Last year of IDEA (spec ed) Federal Stimulus
• Only categorical balances remaining are federal
  and Tiers 1 and 2 (Title I, Healthy Start, Title
  II and III, etc.)

15
2011-12

• No State COLA
• Loss of Federal IDEA (spec ed) 998,000
• Loss of redirected categorical dollars (Deferred
  Maintenance) 600,000
• Additional on-going costs for step, column,
  health benefits, utilities, etc 3
  million
• Additional budget cuts of 4.598 million

16

• Waitingthe longer we wait the more we MAY know

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Governors Revise for 2008/09

• Further reduction of 225/ADA (4.095m)
• Prop 98 rebenched to reflect the lower state
  revenues
• Deferral of payments due to schools in 2008/09 to
  2009/10. Will have to borrow from other funds
  and issue TRANS (short-term borrowing)
• Maintenance of Effort (requirement of federal
  ARRA) still met even with these cuts
• Could use 4.9m federal stimulus for 2008/09
• Not sure when cash will arrive
• 4.09 million by June 30.

18
Governors Revise for 2009/10

• Continue reductions from 2008/09 - 225/ADA
  (4.095m)
• 19/ADA reduction (1.474m)
• Deferral of payments due to schools to for
  2009/10 to 2010/11 (cash flow)
• Option of reducing school year by seven days for
  three years (negotiable)
• More flexibility on categorical dollars proposed
  but not detailed
• 5.57 million more in cuts or use of flexibility

19
Multi Year Projections

• Will need to revise before Budget Adoption in
  June
• Assume cuts as governor proposed
• Assume use of all federal stimulus dollars for
  2008-09
• 2009-10 Further reductions needed-estimated
  amount of 5.57 million (governors proposal) and
  700,000 still remaining to be cut from original
  6.9 million target for 09-10
• 6.27 million more in cuts for 2009-10
• Cant even project 2010-11 yet..

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The Date for May Revise

• May 28
• Known results from May 19 special election and
  deterioration of economy
• Another window for layoffs may be needed (Ed Code
  44955.5 applies if COLA is less than 2)
• FCUSD budget is scheduled for June 18 adoption
• May keep date and revise when legislature
  finalizes reductions to education

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