2010-2011 Budget2010-2011 Budget

JEFFERSON SCHOOL DISTRICTJEFFERSON SCHOOL DISTRICT

May Revise May Revise The 2010-11 budget includes the following The 2010-11 budget includes the following

assumptions from the Governor’s May assumptions from the Governor’s May Revise:Revise: Statutory COLA of -0.39% ($-58,407)Statutory COLA of -0.39% ($-58,407) No change to deficit factor – currently No change to deficit factor – currently

18.355%18.355% Continuation of Tier III flexibility for categorical Continuation of Tier III flexibility for categorical

programs through 2012-13, including programs through 2012-13, including suspension of deferred maintenance match suspension of deferred maintenance match and instructional materials adoption timelinesand instructional materials adoption timelines

May Revise (cont.)May Revise (cont.)

K-3 CSR funding penalties remain relaxed K-3 CSR funding penalties remain relaxed through 2011-12through 2011-12 Budget includes two additional teachers in Budget includes two additional teachers in

2012-13 to plan for CSR returning to previous 2012-13 to plan for CSR returning to previous penalty levels. We will review/consider penalty levels. We will review/consider options when we plan for 2012-13 budgetoptions when we plan for 2012-13 budget

Budget AssumptionsBudget Assumptionsas Previously Presentedas Previously Presented

P2 reported ADA of 2433.61 – slight increase over 2P2 reported ADA of 2433.61 – slight increase over 2ndnd Interim Interim ADA of 2429.95. (~+$18K)ADA of 2429.95. (~+$18K)

-0.39% COLA (-$58,407) in 10/11 and assumes a 0% COLA in -0.39% COLA (-$58,407) in 10/11 and assumes a 0% COLA in 11/12 & 12/1311/12 & 12/13

No salary or benefit changes through 12/13No salary or benefit changes through 12/13 Anticipate Lottery revenue of $110 per student unrestricted; $13 Anticipate Lottery revenue of $110 per student unrestricted; $13

Prop 20 (restricted) ~ same lottery revenue as 2009-10Prop 20 (restricted) ~ same lottery revenue as 2009-10 No mandated cost claim revenue anticipatedNo mandated cost claim revenue anticipated Step & Column of $200K for certificated and $21K for classified. Step & Column of $200K for certificated and $21K for classified.

Estimated S&C in the out years based on the actual % of increase Estimated S&C in the out years based on the actual % of increase at budget (separately estimated for restricted vs. unrestricted)at budget (separately estimated for restricted vs. unrestricted)

Retiree benefits maintained as they now existRetiree benefits maintained as they now exist Includes Consumer Price Index adjustment to 4xxx (Materials & Includes Consumer Price Index adjustment to 4xxx (Materials &

Supplies) and 5xxx (Services) object codes of 2.4% for 2011-12 Supplies) and 5xxx (Services) object codes of 2.4% for 2011-12 and 2.7% for 2012-13.and 2.7% for 2012-13.

Includes 5% increase for utilities for each yearIncludes 5% increase for utilities for each year

Additional AssumptionsAdditional Assumptions

Decrease of 17% in Title II funding (-Decrease of 17% in Title II funding (-$5,800) in 2011-12 forward$5,800) in 2011-12 forward

Worker’s Compensation rate is estimated Worker’s Compensation rate is estimated to increase 10% in 2011-12 and is to increase 10% in 2011-12 and is included in the Multi Year Projection as an included in the Multi Year Projection as an increase to statutory benefitsincrease to statutory benefits

Decrease of 0.38% in all categorical Decrease of 0.38% in all categorical revenuesrevenues

Previously Approved Budget Previously Approved Budget ReductionsReductions

Includes budget reductions of:Includes budget reductions of: $70K – no Deferred Maintenance match$70K – no Deferred Maintenance match $28K – categorical offset for intervention specialists.$28K – categorical offset for intervention specialists. $54K – revised Cafeteria Fund contribution.$54K – revised Cafeteria Fund contribution. $175K – one time additional 1% reduction in Routine $175K – one time additional 1% reduction in Routine

Repair and Maintenance contributionRepair and Maintenance contribution $203.7K – Offset of Special Ed expenses to ARRA funds$203.7K – Offset of Special Ed expenses to ARRA funds $100K – correction of FICA expense budget$100K – correction of FICA expense budget $208K – one time sweep of categorical carryover balances$208K – one time sweep of categorical carryover balances $67K – reduction to Class Size Reduction contribution$67K – reduction to Class Size Reduction contribution $63K – updated Curriculum coordinator & secretary $63K – updated Curriculum coordinator & secretary

positions, Intervention Specialist positions percentage positions, Intervention Specialist positions percentage charged to EIA (Resource 7090) to use EIA carryover for charged to EIA (Resource 7090) to use EIA carryover for three years (2010-11 through 2012-13)three years (2010-11 through 2012-13)

Previously Approved Budget Previously Approved Budget Reductions (cont.)Reductions (cont.)

$59K – copier contract savings$59K – copier contract savings $ 4K – reduced budget for custodial uniform rental/cleaning$ 4K – reduced budget for custodial uniform rental/cleaning $11.5K – estimated savings from Supplemental Early Retirement $11.5K – estimated savings from Supplemental Early Retirement

plan (three employees retired and accepted SERP)plan (three employees retired and accepted SERP) $30.2K – revised lottery textbook budget. $30.2K – revised lottery textbook budget.

Consumable (workbook) expenses for 2010-11 are Consumable (workbook) expenses for 2010-11 are estimated to be $94.8K. We are still ‘saving’ since we will estimated to be $94.8K. We are still ‘saving’ since we will not need to purchase textbooks (no adoptions due to not need to purchase textbooks (no adoptions due to flexibility provisions). We re-budgeted the items agreed to flexibility provisions). We re-budgeted the items agreed to be reinstated (field trips, classroom supply budgets and be reinstated (field trips, classroom supply budgets and technology) as planned – and still have an ending fund technology) as planned – and still have an ending fund balance of $314,963 in unrestricted lottery money.balance of $314,963 in unrestricted lottery money.

$208K – one time sweep of categorical carryover balances $208K – one time sweep of categorical carryover balances (completed in 2009-10 which increased 2010-11 start balance)(completed in 2009-10 which increased 2010-11 start balance)

Additional Budget Reductions/Changes Additional Budget Reductions/Changes Included in 2010-11 BudgetIncluded in 2010-11 Budget

During the budget development process, we During the budget development process, we identified other opportunities to utilize identified other opportunities to utilize categorical funds as follows:categorical funds as follows: $46K – budgeted partial expense of Traina Assistant $46K – budgeted partial expense of Traina Assistant

Principal position to ARRA Title I (Resource 3011) Principal position to ARRA Title I (Resource 3011) one time in 2009-10 (increased Res 0000 beginning one time in 2009-10 (increased Res 0000 beginning balance in 2010-11)balance in 2010-11)

$48.6K - revised percentage of position charged to $48.6K - revised percentage of position charged to Title I (Resource 3010) for Curriculum coordinator and Title I (Resource 3010) for Curriculum coordinator and secretary. 2010-11 forwardsecretary. 2010-11 forward

$20.0K - changed percentage of assistant principal $20.0K - changed percentage of assistant principal positions to charge 10% of costs to EIA (Resource positions to charge 10% of costs to EIA (Resource 7090). 2010-11 forward7090). 2010-11 forward

Additional Budget Reductions/Changes Additional Budget Reductions/Changes Included in 2010-11 BudgetIncluded in 2010-11 Budget

Also during Budget Development, we identified Also during Budget Development, we identified other reductions appropriate to implement at this other reductions appropriate to implement at this time:time: $30K – reduced budget for water/trash services $30K – reduced budget for water/trash services

(2010-11 forward)(2010-11 forward) $25K – reduced budget for electricity/natural gas$25K – reduced budget for electricity/natural gas

We will continue to review utilities for additional reductions as We will continue to review utilities for additional reductions as our implementation of energy savings items progresses our implementation of energy savings items progresses (2010-11 forward)(2010-11 forward)

$10K – reduced budget for property & liability $10K – reduced budget for property & liability insurance premium. Has historically been budgeted a insurance premium. Has historically been budgeted a bit ‘high’ so will correct that this year (2010-11 bit ‘high’ so will correct that this year (2010-11 forward)forward)

Year-End Changes Year-End Changes We will confirm the following additional changes We will confirm the following additional changes

at year-endat year-end $100K – one time sweep of deferred maintenance $100K – one time sweep of deferred maintenance

funds to Unrestricted General Fundfunds to Unrestricted General Fund Confirm estimated increase to ending fund balance – Confirm estimated increase to ending fund balance –

the difference between budgeted expenses vs. actual the difference between budgeted expenses vs. actual expenses. Currently estimate the change to be expenses. Currently estimate the change to be $250K - $500K.$250K - $500K.

There will also be additional funds in the ending fund There will also be additional funds in the ending fund balance on the restricted sidebalance on the restricted side

We will identify and report these amounts in We will identify and report these amounts in September when Unaudited Actuals is presented to September when Unaudited Actuals is presented to the board.the board.

ContributionsContributions Contributions from the general fund (Resource Contributions from the general fund (Resource

0000) are estimated to be $1,253,120 as 0000) are estimated to be $1,253,120 as follows:follows: Special EducationSpecial Education $707,393$707,393 TransportationTransportation $115,060$115,060 Routine Repair & MaintenanceRoutine Repair & Maintenance $$351,000351,000 K-3 Class Size ReductionK-3 Class Size Reduction $ 47,063$ 47,063 Art & Music Block GrantArt & Music Block Grant $ 32,604$ 32,604

Note: The contribution for CSR & Art & Music grant are not Note: The contribution for CSR & Art & Music grant are not included in the total contributions reported in the SACS included in the total contributions reported in the SACS budget forms, since these resources are now unrestricted.budget forms, since these resources are now unrestricted.

District StatusDistrict Status JESD is positively certified through 2012-13. JESD is positively certified through 2012-13. In 2012-13, we are at zero in the unrestricted In 2012-13, we are at zero in the unrestricted

ending fund balance (still maintaining the 3% ending fund balance (still maintaining the 3% reserve for economic uncertainty, the board reserve for economic uncertainty, the board designated reserve of $500K and our other designated reserve of $500K and our other designations for lottery, mandated costs and designations for lottery, mandated costs and board project carryover.board project carryover.

A small adjustment ($569) of the mandated cost A small adjustment ($569) of the mandated cost designation was required to not be negative designation was required to not be negative

Deficit Spending Deficit Spending Currently estimate district deficit spending to be Currently estimate district deficit spending to be

~$700K annually – net of the ‘gap’ (difference ~$700K annually – net of the ‘gap’ (difference between budgeted expenses and actual between budgeted expenses and actual expenses which we will continue to narrow as expenses which we will continue to narrow as much as possible)much as possible)

Should education funding continue with the Should education funding continue with the current revenue limit reductions, we may need to current revenue limit reductions, we may need to make decisions regarding 2013-14 forward we make decisions regarding 2013-14 forward we hoped to avoidhoped to avoid

There remain many unknowns - There remain many unknowns -

Next StepsNext Steps Will provide an update on historical budget Will provide an update on historical budget

reductions at August board meeting.reductions at August board meeting. 2009-10 will be closed in August, 2010, and 2009-10 will be closed in August, 2010, and

Unaudited Actuals will be presented to the board Unaudited Actuals will be presented to the board in September. This will confirm our ending fund in September. This will confirm our ending fund balance, carryover, etc. balance, carryover, etc.

We will continue to be careful with our spending; We will continue to be careful with our spending; monitor budget issues and report to the board monitor budget issues and report to the board frequently in 2010-11frequently in 2010-11

Dana and Mindy will hold budget update Dana and Mindy will hold budget update meetings at all sites as well as a public meeting meetings at all sites as well as a public meeting in late Fall, 2010. in late Fall, 2010.