Plumas Lake Elementary School District

1

• Plumas Lake Elementary School District
• 2009-10 Governors Budget Update
• January 20, 2009

2
Governors Budget 2009-10
1

• Governors proposal for mid-year reductions in
  2008-09
• The 0.68 COLA included in the Adopted Budget is
  eliminated
• Further revenue limit reductions of 4.5 total
  deficit of 9.685
• The overall reduction to Proposition 98 for
  2008-09 is 6.3 billion
• Elimination of Deferred Maintenance match
  requirement
• Reduction of Routine Restricted Maintenance
  Account set aside requirement
• For 2009-10, the Governors proposal included
• COLA of 5.02, but not funded
• Revenue limit cut of 1.6 billion - 6.97 of new
  base revenue limit
• Total deficit is 16.161
• No COLA for categorical programs
• Categorical and other flexibility to help school
  agencies deal with the loss of funding

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General Fund Revenue Collapse
4
2008-09 Proposition 98 Guarantee
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2009-10 Proposition 98 Guarantee
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Governors and Legislatures Major Proposals
Provision Governors January Proposal Legislative Proposal (SBX14, vetoed)
Revenue Limit Eliminate 0.68 COLA reduce further by 4.5 Eliminate 0.68 COLA
Categorical Program Eliminations High Priority Schools Grant Program, Math and Reading Professional Development, Deferred Maintenance, Instructional materials, Professional Development Block Grant and others
Categorical Program Reductions Minor changes Many programs
Prior-Year Categorical Balances Transfer (with limitations) Transfer (with limitations)
Current-Year Categorical Allocations Transfer (no dollar limitation) after public hearing Limit Mega-Item transfer for Home-to School Transportation to in only
Routine Restrict Maintenance Set-Aside Reduce from 3 to 1 Reduced from 3 to 1
Deferred Maintenance Match Requirement Eliminate Eliminate
Reserve for Economic Uncertainties Reduce by half for 2008-09 and 2009-10 -
7
What Does it Mean for Our District?
6

• Freeze on all non-essential expenses to preserve
  fund balance
• Impact of eliminating deferred maintenance
  funding by 28,000
• Impact of reducing RRM funding - 165,416
• Ending fund balance where do we stand relative
  to requirements?
• No COLA - still have the following costs
• Fixed costs electricity, gas, water, sewer,
  insurance
• Step and column

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Adopting the Budget
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• Balanced budget must be adopted by district prior
  to June 30, 2009
• State Budget will most likely not be in place by
  then
• Developing the budget requires
• Clarifying assumptions
• How much revenue?
• What flexibility options will be acted upon?
• How will expenditures change?
• Once the State Budget is adopted, the district
  makes adjustments to its budget within 45 days

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Next Steps

• Make necessary adjustments at Second Interim
• Eliminate 0.68 COLA
• Reduce Revenue Limit additional 4.567
• Eliminate Deferred Maintenance Match
• Set aside unallocated State categorical funds
• Prepare Multi-Year Projections based on what we
  know now
• Begin building budget for 2009-10 based on what
  we know now
• Review seniority lists for accuracy

10

• Questions?
• Thank you

Source School Services of California (Slide 3,
4, 5, 6)