MDUSD Budget Update

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MDUSD Budget Update

• Bryan Richards
• Director of Fiscal Services
• June 2, 2009

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(No Transcript)
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In last weeks episode,

• Governor called for additional reductions of 225
  per ADA for 2008/09 or (7,496,143)
• Governor called for additional reductions of 244
  per ADA from 2009/10 onward (8,086,958)
  increasing annually
• LAO issued new report showing State Deficit
  increased 3 billion after Governors report

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Tonight, a Revised May Revise

• Governor responds with another new round of cuts
• Good news first Additional cut for 2008/09
  reduced from 225 to 219 per ADA (7,296,246
  instead of 7,496,143)
• Then the bad news additional cuts for 2009/10
  increased from 244 to 353 per ADA ongoing
  (11,699,574 instead of 8,086,958) increasing
  annually
• State may run out of cash in 14 days

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State Cuts Funding per Student
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How much have we lost?

• 698.16 per ADA shortfall in 2008/09
  23,260,031
• 1,144.54 per ADA shortfall in 2009/10
  37,933,798
• 1,154.96 per ADA shortfall in 2010/11
  38,064,560
• 1,182.81 per ADA shortfall in 2011/12
  38,771,991
• Total in 4 years 138,030,380
• Grows over 39,500,000 per year thereafter

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What does it mean?

• We would end 2008/09 7,239,188 below required
  reserve if we were to spend all of the UGF budget
• Tier III balances and spending freeze help us
  stay afloat
• We end 2011/12 (third year out in budget)
  46,488,062 below the required reserve after all
  previously approved cuts enacted
• Fully utilizing State Fiscal Stabilization 8.9M
  to plug the gap by transferring expenditures in
  2009/10 and 2010/11
• Still need nearly 38M in unrestricted cuts
  across the three years 2009/10 2011/12
• Additionally, categorical programs must cut to
  stay within allotted funding (many down 20)

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Whats next?

• New proposed reductions to services for June 2
  (at least 12.7M per year)
• Draft of budget and status update June 16
• Budget adoption June 30
• Unlike U.S. and State, ours must be balanced and
  on time
• State Legislature must pass revised budget
  (Julgusepoctemberary?)
• Once Governor signs, we will amend our budget 45
  days thereafter