Hayward Unified School District Budget Presentation

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Hayward Unified School DistrictBudget
Presentation 3 Year-End 2004-2005 Report

• Dr. Barry Schimmel
• Assistant Superintendent
• Business Services
• Jan Combes
• Director
• Business Support Services September
  14, 2005

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HAYWARD UNIFIED SCHOOL DISTRICT

• CLOSING THE BOOKS ON 2004-05
• The 2004-05 budget ended with a 3.7 reserve
  which is 1,158,692 above the required 3 of
  4.9 million
• The district is in recovery and its finances
  are stable but not durable
• For 2005-06, the district does not have the
  required 3 reserve, yet
• Celebrate improvement of 1.8 million dollars
  since June
• ? A combination of one-time and ongoing funds

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• HAYWARD UNIFIED SCHOOL DISTRICT
• Why Was 2004-05 a Good Budget Year?
• The higher ending balance will help the district
  toward achieving multi year solvency
• Unrestricted income was 102.8 to projection, or
  2.8 more income
• Unrestricted expenditures were 97.8 to
  projection, or 2.2 less expenditures
• The increase is primarily the result of savings
  in supplies, services and utilities
• Prudent management of categorical resources
  combined with limiting expenses helped achieve
  this result

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HAYWARD UNIFIED SCHOOL DISTRICT

• Unrestricted Ending Balance, ESTIMATED IN JUNE
  4,893,149
• Unrestricted Ending Balance, NOW
  7,709,288
• Positive Difference 2,693,149
  
  
• 1.19 million of these funds are targeted for
  specific purposes.
• Some 2004-05 unspent funds are re-allocated to
  2005-06
• School Site Carryover for redistribution
  174,000
• MAA Program funds carried over for sites
  184,982
• Attendance Incentive Site funds 11,242
• Governors Performance Awards carried over for
  sites 166,985
• Funding set aside for interventions
  354,000
• Funding set aside for ERATE audit and technology
  reserve 114,876
• Funding set aside for excess vacation liability
  183,432
• TOTAL 1,189,517

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HAYWARD UNIFIED SCHOOL DISTRICT

• SUMMARY OF UNAUDITED FUND BALANCE
  GENERAL FUND - UNRESTRICTED
  
• Beginning Balance July 1, 2004
  4,249,465
• Income
  122,145,818
• Expenses -108,212,221
• Transfers In Cafeteria Facilities Fund
  126,501
• Transfers Out Retiree Benefits
  -1,306,844
• General Contributions- Restricted Programs
  -9,293,431
• Ending Balance 7,709,288
• Reserved Balances and Designations
  -1,644,819
• Amount Available for Reserves
  6,064,469
• Met Reserve Requirement (3 of Expenses)
  4,905,777
• Amount Above required reserve
  1,158,692

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HAYWARD UNIFIED SCHOOL DISTRICT

• KEYS TO FINANCIAL SUCCESS
• DISTRICT DID NOT DEFICIT SPEND FOR SECOND YEAR IN
  A ROW
• REVENUES EXCEEDED EXPENDITURES, HELPING TO
  RESTORE
• REQUIRED RESERVES
• Last year (2003-2004) Income exceeded
  Expenditures by 1,200,000
• This year (2004-2005) Income exceeded
  Expenditures by 2,100,000
• District must structure Budget to continue living
  within our means

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HAYWARD UNIFIED SCHOOL DISTRICT

• ROAD TO POSITIVE CERTIFICATION
• Over the last two years the district has
  successfully added to fund balance to restore our
  reserves by
• 3,300,000

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HAYWARD UNIFIED SCHOOL DISTRICT

• ROAD TO POSITIVE CERTIFICATION
• RESERVE REQUIRED
• 3 in 05-06, 06-07 and 07-08
• June 22 Budget Adoption short of 3
  Reserve -3,700,000
• August
• ? Return of 2 STRS 1,600,000
  -2,100,000
• September
• ? Positive result of 2004-05 Ending Balance
  increases 1,600,000
• this years beginning balance
• 2005-06 short of 3 Reserve
  -500,000
• Hopefully, by First Interim Report in December
  2005, the district will have the
• required reserve
• 2006-07 and 2007-08 will require structural
  changes before Positive Certification will be

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• HAYWARD UNIFIED SCHOOL DISTRICT
• What things are going Right for HUSD
• District-wide focus on achieving
• Positive Certification
• Budget Controls
• Rigid attention to budget details
• Position Control Analysis
• Establishing Trend Data for Position Control
• Maximizing Categorical funding
• Reducing/eliminating encroachments
• Improving cash flow

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HAYWARD UNIFIED SCHOOL DISTRICT Next Steps

• ? September and October
• Analysis of savings from 2004-05 and
  identification of one-time money
• ? Salaries and benefit data will be revised using
  current position control data
• ? November Budget Update 4
• Effects of negotiations with employee
  units
• ? December Budget Update 5
• First Interim Report
• Information on Multi-Year Projections
• How reserves stand against the 3
  requirement
• ? 2005-06
• ? 2006-07
• ? 2006-07

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HAYWARD UNIFIED SCHOOL DISTRICT

• Budget in Pictures
• MOVING FROM NEGATIVE TO QUALIFIED TO POSITIVE
  CERTIFICATION
• 2002-03 2003-04 2004-05
• 1 reserve 1.57 reserve 3.7 reserve
• 3.4 million shortfall 2.3 million
  shortfall 1.1 million ahead!
• 2005-06 2006-07 2007-08
• 2.72 reserve
• .5 million shortfall ?? ??

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Board Questions and Comments

• Data and Calculations Jan Combes
• Music and Graphics Marti James

Data and Calculations Jan Combes Music and
Graphics Marti James