overview of the state budget and the state economy
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Overview of the State Budgetand the State Economy
Overview of the State Budgetand the State Economy
Recovery Takes a Long Time
The Economic Cycle
Stabilization
December2007
Spring2010
2015
RecessionRecovery
B-11
Forecast
Governor’s Budget 2010-11
For the current year, 2009-10, the Governor’s January Budget proposes no change in revenue limit funding, with the deficit factor remaining at 18.355%
In 2010-11, the statutory cost of living adjustment (COLA) is negative 0.38% and is fully “funded”
The deficit factor of 18.355% remains unchanged in the 2010-11 budget
In addition to the negative COLA and the continuation of the 18.355% deficit factor, the Governor’s Budget proposes an ongoing targeted cut of $1.5 billion in 2010-11
$1.2 billion is aimed at “school district administrative costs”
$300 million assumed to follow from the “elimination of administrative costs” via contracting out language
The Governor’s budget provides no specifics on how this will be implemented
Budget Year Adjustments – Revenue Limit COLA
2009-10 fiscal year – no further cuts proposed
2010-11 fiscal year – “fully-funded” COLA; however, the COLA is -0.38%
This is looking like another unusual year for calculations
The funded rates for 2010-11:
C-10
District Type2010-11 Statutory COLA
<0.38%>
All Elementary Districts <$23>
All High School Districts <$28>
All Unified Districts <$24>
Administrative Cuts and Efficiencies
The Governor proposes cutting a total of $1.5 billion targeted as “noninstructional,” or administrative costs at school districts and COEs
$1.2 billion ongoing reduction to revenue limit funded targeted at school district central administration and $300 million attributable to eliminating barriers related to contracting out for services
This would apply to all districts, regardless of the current level of administrative spending or cuts made prior to 2010-11 Monitoring would occur through review of reported Standardized Account Code Structure (SACS) dataThe Governor has yet to share the specifics of the proposal, but if the cut were to apply based on current revenue limit rates per ADA, it would be as follows:
C-12
Elementary High School Unified$191 $231 $201
Undeficited Revenue Limit – Example
2007-08 2008-09 2009-10 2010-11$5,000
$5,100
$5,200
$5,300
$5,400
$5,500
$5,600
$5,700
$5,800
$5,900
$6,000
$6,100
$6,200 Ocean View School District
2007-08 Funded Base Revenue
Limit
$315COLA
$315COLA
$250COLA$5,838
$6,088
$5,523
2007-08 Funded Base Revenue
Limit
2007-08 Funded Base Revenue
Limit
2007-08 Funded Base Revenue
Limit
$315COLA
$250COLA
$6,065*
2-8
* 10-11 includes a -$23 COLA
Projected vs. Actual Funding Per ADAB-16
Average Unified District
$5,523
$5,838$6,088 $6,065
$4,761$4,718*
$5,380$5,523
$4,000
$5,000
$6,000
$7,000
2007-08 2008-09 2009-10 2010-11
Dol
lars
Per
AD
A
Projected Statutory COLA
Flat Funding
Actual Funding
Loss of COLA
Loss of baseline dollars
How Much?
The Governor’s proposal is anticipated to impact OVSD by:
Fully funded -0.38% COLA x Projected 10-11 ADA-$23 x 2412 = -$55,476
Proposed “central administration reduction”-$191 x 2412 = -$460,692
TOTAL ADDITIONAL LOSS Above 1st Interim Projections = -$516,168
B-16
Next Steps
Balanced budget must be adopted by district prior to June 30, 2010
State Budget will most likely not be in place by then
Developing the budget requires:
Clarifying assumptions
How much revenue?
How will expenditures change?
Once the State Budget is adopted, the district makes adjustments to its budget within 45 days
What have we done so far?
BUDGET
3 years ago began monitoring budget needs in anticipation of state’s economic disaster
Reduced department expenditures
Utilized categorical flexibility
Supplies review and reduction
Continued monitoring of class sizes
Monitored benefit costs
Reduced conference & travel costs
Continued monitoring of enrollment, class sizes, staffing needs
What have we done so far?
PERSONNNEL
Vacant classified positions
Grounds/Maintenance position
Custodian position
Account Technician
Bus Driver
Reduced DO certificated Resource Teacher
08-09 Certificated Retirement Incentive (10 participants)
Replaced 3 of 10 vacancies
1 administrative salary reduction day in 08-09
Moved personnel costs to categorical funding as allowable
Utilized one-time ARRA $ to save jobs
INSTRUCTION / INTERVENTION
Continued monitoring of class sizes
Reduced “block scheduling” at OVJH
Reduced “push-in” teachers
Reduced/eliminated after school intervention programs
Reduced district-wide staff development costs
Eliminated Summer School except for Special Education
Eliminated CBET program
What have we done so far?
TRANSPORTATION
Eliminated 12 transportation routes
Increased walking distance
Reduced number of bus stops
Adjusted MVS & LVS school boundaries
REVIEWED CONTRACTS
New copy machines (40% cost savings)
AT&T Phone Service versus VOIP
Implemented Infinite Campus SIS and POS
Monitored and reduced utility costs
Auto shutdown of computers and copiers
Summer shutdown
Implemented 4/10 summer work schedule
ATTENDANCE
Implemented Saturday School to recoup lost ADA
Increased attendance monitoring
Site attendance incentives
What are the other districts doing?
Ventura CountyAcross the State
Cash is King!
A review of our CASH FLOW.
Questions?
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