Devin Vodicka, EdD
Assistant Superintendent, Business Services
March 14, 2012
3/9/2012 1
First Interim presented in December 2011
First Interim represented Financial Condition through October 31, 2011
Second Interim represents Financial Condition through January 31, 2012
Reflects updated estimates of revenues, expenditures, and ending balance components for current fiscal year.
Background Information
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CUSD remains “qualified” as we are able to meet
current financial commitments for the remainder of this fiscal year but not for the two subsequent years
Projected deficits:
2012-13: $5 million
2013-14: $10.3 million
Current Information
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Additional $367,000 in donations, 6th grade camp
funds, Lancer Jacks staff reimbursement
Additional $95,000 in insurance claim reimbursement
Additional $651,000 in 2012-13 through NCCSE Equalization and $1.3 million in 2013-14.
Major Changes: Revenues
3/9/2012 4
Reduction of $500,000 in site and department
operational budgets
Reclassification of $400,000 of deferred maintenance expenses to various Community Facility District and State School Construction funds.
Blue Shield “credits” applied, including reserve of $370,799 for 2012-13
Major Changes: Expenditures
3/9/2012 5
Notices to all management, confidential, and
supervisory employees of potential salary reductions and/or work day reductions for 2012-13
Layoff notices to over 100 teachers
Major Changes: Expenditures
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2011-12
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2012-13
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Local Property Taxes: No change made to projection of
$60,683,436. Flat growth estimated for FY 2012-13 and 1% growth estimated for FY 2013-14.
Redevelopment Agency Funds: With successful passage of ABX1 27, redevelopment agencies have been dissolved and agency funds will now support local schools and other agencies. Though the California Department of Education (CDE) projects district will receive over $900,000 in redevelopment funds this fiscal year, final figures will not be known until outstanding debt against these monies is reported by cities. Thus, district is not recognizing these funds at this time.
Important Assumptions
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Basic Aid “Fair Share” Reduction: Implementation of SB 81
increased the Basic Aid “Fair Share” reduction by 0.65%, resulting in a total cut of 9.57% projected for FY 2012-13.
State Funding Proposals: The Governor’s Budget proposal for FY 2012-13 includes a new weighted student funding formula that may negatively impact the District. As a Basic Aid District, Carlsbad Unified is not on the list and thus, may lose most of its State funding. Furthermore, it is projected that districts across the state may lose up to $455/ADA if the November initiative proposed by Governor in his budget does not pass. Consultants from the California Department of Education have advised us that Basic Aid districts are likely to be impacted by these adjustments in FY 2013-14. Consequently, the District has reduced its State funding budget for 2013-14 to only include lottery funds and the constitutional requirement that state provide at least $120 per ADA to each district.
Additional Assumptions
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How Did We Get Here?
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CUSD Revenue, Expenditures, and Reserves
2006 2007 2008 2009 2010 2011 Mar-12 Proj 2013
Reserve $7,290,197. $9,709,801. $13,011,027 $18,462,237 $16,712,892 $15,047,689 $7,618,524. $3,449,089.
Revenue $71,585,198 $81,515,019 $86,090,419 $86,346,873 $85,934,756 $82,598,872 $73,881,246 $71,630,806
Expenditures $72,003,526 $78,516,236 $81,547,117 $83,895,662 $87,684,101 $84,264,075 $81,310,411 $75,800,241
$-
$10,000,000.00
$20,000,000.00
$30,000,000.00
$40,000,000.00
$50,000,000.00
$60,000,000.00
$70,000,000.00
$80,000,000.00
$90,000,000.00
$100,000,000.00
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Revenues
2006 2007 2008 2009 2010* 2011 Mar-122013Proj
2014Proj
Transfers/Other $1,302,615 $- $28,420.00 $- $1,823,248 $2,416,917 $400,314.0 $-
Other Local $7,362,500 $7,858,977 $8,777,946 $9,004,226 $7,614,831 $6,570,459 $4,760,310 $4,335,612 $5,015,484
Other State $9,071,549 $14,134,27 $12,767,88 $10,164,26 $8,563,081 $7,270,847 $4,583,752 $3,272,094 $2,673,769
Federal Revenue $3,267,208 $2,974,965 $2,870,708 $4,147,599 $6,050,813 $4,963,121 $3,146,623 $3,033,005 $3,063,335
State Aid/Other Revenue Limit $4,908,043 $6,977,531 $606,970.0 $309,159.0 $246,497.0 $284,770.0 $306,811.0 $306,659.0 $321,520.0
Property Tax/Revenue Limit $46,975,89 $49,569,26 $61,066,91 $64,201,01 $63,156,89 $61,092,75 $60,683,43 $60,683,43 $61,290,26
$-
$10,000,000.00
$20,000,000.00
$30,000,000.00
$40,000,000.00
$50,000,000.00
$60,000,000.00
$70,000,000.00
$80,000,000.00
$90,000,000.00
$100,000,000.00
Expenditure Reductions: June 2011
Increasing class size in grades 1-3 to approximately 32 students in each class.
Eliminating K-6 Home Study program. Eliminating one Director of Curriculum & Instruction position. Eliminating the Administrative Assistant—Language Assessment
Center position. Eliminating one English Language Development Resource Teacher. Leaving vacant two Instructional Aide—Computer Lab positions. Elimination of general education summer school (K-8) and
reduction of general education summer school (high school). Eliminating two part-time certificated librarians. Leaving vacant the position of Executive Assistant, Business
Services. Reducing deferred maintenance contributions.
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Expenditure Reductions: November 2011
Reduce start-up spending in 2012-13 for Sage Creek High School
Reduce Administration/Management expenses Reduction in Travel and Conference budgets Reduction in Site/Department accounts Reduction in Special Education budget based on program
savings Elimination of Classified positions Reduction in Athletics budget Reduction or elimination of programs such as Cal-SAFE
and Add-Up
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Expenditure Reductions: February 2012
A Reduce CVA by 3.0 Full-Time Equivalent (FTE) Teachers
B Increase staffing ratio at CHS to 38.5
C Increase staffing ratio in grades 4-8 to 36 in 2013-14
D Eliminate 1.0 Librarian
E Eliminate 1.0 Teacher On Special Assignment (TOSA)
F Eliminate 1.4 .4 FTE Psychologists
G Eliminate CHS Special Ed Teachers TBD
H Eliminate Guidance Technicians
I Reduce K-5 Library Technicians to .5 FTE
J Reduce Student Services Specialist to .5 FTE
K Eliminate 1.0 FTE Admin Assistant, Special Education
L Eliminate 1.0 FTE Office Assistant, Personnel Services
M Eliminate 1.0 FTE Executive Assistant, Business Services
N Eliminate 1.0 FTE Custodian
O Reduce Tier III Certificated Non-instructional Hourly
P Reduce Personnel Commission Discretionary Budget
Q Reduce School Resource Officer Contract
R Reduce Write4Fun Contractual by 50% 25%
S Eliminate Kontraband Contract
T Reduce Sage Creek Expenditures in 2013-14
U Eliminate Instructional Assistants—Computer Lab and add 1.0 FTE Computer Tech Position 3/9/2012 16
Data from
http://www.ed-data.k12.ca.us
Most recent data available is from 2009-10
San Diego County: Revenue Per Student Comparison
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Average Daily Enrollment
2009 2010 2011 Adopted 2012
ADA 10317 10417 10593 10596
9000
9200
9400
9600
9800
10000
10200
10400
10600
10800
11000
AD
A
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This reflects projected expenses after implementation
of $5 million in expenditure reductions
Sage Creek Expenses 2012-13
Sage Creek, $293,866.00
Other Expenditures, $70,453,551
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Pie Chart Expenses 2011-12
48%
14%
21%
3%
13%
0% 1%
CUSD Expenditures 2011-12 Second Interim 3-8-12
Certificated Salaries
Classified Salaries
Employee Benefits
Books & Supplies
Services/Other Oper. Expenditures
Capital Outlay
Other Outgo & Debt Service
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Bubble Expenses 2012-13
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Treemap Expenses 2012-13
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Projected Revenue in 2012-13: $71.6 million Projected Expenditures in 2012-13 (after $5 million in necessary cuts): $75.8
million
Why is the 2013-14 deficit projected at $10.3 million? Projected Deficit of $5 million in 2012-13 Deficit Spending of $4.2 million in 2012-13 after necessary cuts are made Projected decline of $1.3 million in State Funding in 2013-14 due to November
Election “Trigger” and Weighted Student Funding model implementation Additional Sage Creek expenses of approximately $1.4 million Expenditure Reduction of approximately $930k due to approved increase in
class sizes in grades 4-8 Additional NCCSE Revenue of $650k
Implication: Ongoing, not one-time, solutions are necessary
Deficit Spending Problem
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Resolve $5 million deficit for 2012-13 Collective Bargaining Wages
Benefits
Retiree Benefits
School Closures
Revenue Enhancements
“Safety Net” would require implementation of teacher layoff notices and further increases in class size
What Now?
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It is respectfully recommended that the Board of
Trustees approve submission of the Second Interim Report with certification of “qualified” financial condition, as presented.
Recommendation
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