BERRYESSA UNION SCHOOL DISTRICT

SECOND INTERIM REPORT

MARCH 7, 2011

Second Interim Report Overview

Significant budget changes since the First Interim was approved December 14, 2010

Revenues have increased by $455,800 Expenditures have decreased by $434,000 Total changes increased unrestricted

reserves by $889,900 CDE and COE require budgeting a reduction

of $349 per ADA This results in a loss of $2.7 M in Revenue

Limit funding

Second Interim Report Overview

To remain solvent in Year 3, the District must reduce its general fund unrestricted budget by $7 M

A Positive Budget Certification is necessary if the District needs to borrow funds next year at a reasonable rate to offset State deferrals

Some of the Numbers

If the “Status Quo” is maintained, under current conditions, the District will be bankrupt in Year 3

The projected ending balance under those assumptions is negative $6.945 million

If extension of the tax initiatives gets on the ballot for a June election and IF the measure passes, the District is only looking at a reduction of $19 per ADA

Some of the Numbers, cont’d

There are many, many IF’s in this year’s Second Interim budget

The uncertainty will remain until: The Legislature votes to place the tax initiative

on the ballot Both houses of the Legislature approve many

of the budget related measures in the Budget bill (2/3 vote required in each house)

The California electorate has the opportunity to decide on the tax extensions

Options to Consider

Approve the Second Interim Report with a Positive Certification Approve the recommendations that will balance the budget

in the 3rd year Some of these recommendations include items that must be

negotiated: CSR at 30:1 Counselor reduction of 1.5 FTE 3 middle school FTE reduction 7 total CTAB furlough days Reorganize elementary prep (eliminate music/PE) use

substitute model for 4th and 5th grade prep Freeze step for CTAB Textbook adoption in Year 3 Transfer salary costs to restricted EdJobs funds

Options to Consider

Approve the Second Interim Report with a Qualified Certification Approve recommendations that reduce

expenditures by $2.9 M and include one area that must be negotiated

CSR at 30:1 Transfer salary costs to EdJobs funding Textbook adoption in Year 3

Next Steps

The Board must decide which option to choose AND: Work with constituencies to develop plans that

will reduce expenditures in future years Decide what programs are most important for

Berryessa’s children Develop contingencies that can be put into

place once the State decides its direction