Devin Vodicka, EdD           Assistant Superintendent, Business Services                         March 14, 20123/9/2012   ...
Background Information                  First Interim presented in December 2011     First Interim represented Financia...
Current Information                           CUSD remains “qualified” as we are able to meet      current financial com...
Major Changes: Revenues                                 Additional $367,000 in donations, 6th grade camp      funds, Lan...
Major Changes: Expenditures                                 Reduction of $500,000 in site and department      operationa...
Major Changes: Expenditures                                 Notices to all management, confidential, and      supervisor...
2011-12             3/9/2012             7
2012-13             3/9/2012             8
Important Assumptions                    Local Property Taxes: No change made to projection of      $60,683,436. Flat gr...
Additional Assumptions                    Basic Aid “Fair Share” Reduction: Implementation of SB 81      increased the B...
How Did We Get Here?              3/9/2012                     11
CUSD Revenue, Expenditures,                 and Reserves      $100,000,000.00                                             ...
Revenues                    $100,000,000.00                                                                   $90,000,000...
Expenditure Reductions: June 2011                                        Increasing class size in grades 1-3 to approxim...
Expenditure Reductions: November 2011                                   Reduce start-up spending in 2012-13 for Sage Cre...
Expenditure Reductions: February 2012           A                                                                     Red...
San Diego County:           Revenue Per Student Comparison                               Data from      http://www.ed-  ...
Average Daily Enrollment                                           11000            10800            10600            104...
Sage Creek Expenses 2012-13                                        This reflects projected expenses after implementation...
Pie Chart Expenses 2011-12                                                        CUSD Expenditures 2011-12              ...
Bubble Expenses 2012-13              3/9/2012                      21
Treemap Expenses 2012-13                3/9/2012                         22
Deficit Spending Problem                                                  Projected Revenue in 2012-13: $71.6 million   ...
What Now?                              Resolve $5 million deficit for 2012-13            Collective Bargaining         ...
Recommendation                     It is respectfully recommended that the Board of      Trustees approve submission of ...
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Second Interim

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Presented to CUSD Governing Board on March 14, 2012.

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Second Interim

  1. 1. Devin Vodicka, EdD Assistant Superintendent, Business Services March 14, 20123/9/2012 1
  2. 2. Background Information   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.3/9/2012 2
  3. 3. Current Information   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 million3/9/2012 3
  4. 4. Major Changes: Revenues   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 2013-14.3/9/2012 4
  5. 5. Major Changes: Expenditures   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 2012-133/9/2012 5
  6. 6. Major Changes: Expenditures   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 teachers3/9/2012 6
  7. 7. 2011-12 3/9/2012 7
  8. 8. 2012-13 3/9/2012 8
  9. 9. Important Assumptions   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.3/9/2012 9
  10. 10. Additional Assumptions   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.3/9/2012 10
  11. 11. How Did We Get Here? 3/9/2012 11
  12. 12. CUSD Revenue, Expenditures, and Reserves $100,000,000.00  $90,000,000.00 $80,000,000.00 $70,000,000.00 $60,000,000.00 $50,000,000.00 $40,000,000.00 $30,000,000.00 $20,000,000.00 $10,000,000.00 $- 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 $75,800,2413/9/2012 12
  13. 13. Revenues $100,000,000.00  $90,000,000.00 $80,000,000.00 $70,000,000.00 $60,000,000.00 $50,000,000.00 $40,000,000.00 $30,000,000.00 $20,000,000.00 $10,000,000.00 $- 2013 2014 2006 2007 2008 2009 2010* 2011 Mar-12 Proj Proj 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 $61,290,263/9/2012 13
  14. 14. 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.3/9/2012 14
  15. 15. 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-Up3/9/2012 15
  16. 16. 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 2013-143/9/2012 16 U Eliminate Instructional Assistants—Computer Lab and add 1.0 FTE Computer Tech Position
  17. 17. San Diego County: Revenue Per Student Comparison   Data from http://www.ed- data.k12.ca.us  Most recent data available is from 2009-103/9/2012 17
  18. 18. Average Daily Enrollment  11000 10800 10600 10400 10200 ADA 10000 9800 9600 9400 9200 9000 2009 2010 2011 Adopted 20123/9/2012 ADA 10317 10417 10593 10596 18
  19. 19. Sage Creek Expenses 2012-13   This reflects projected expenses after implementation of $5 million in expenditure reductions Sage Creek, $293,866.00 Other Expenditures, $70,453,5513/9/2012 19
  20. 20. Pie Chart Expenses 2011-12  CUSD Expenditures 2011-12 Second Interim 3-8-12 1% 0% 13% 3% Certificated Salaries Classified Salaries Employee Benefits 48% Books & Supplies 21% Services/Other Oper. Expenditures Capital Outlay Other Outgo & Debt Service 14%3/9/2012 20
  21. 21. Bubble Expenses 2012-13 3/9/2012 21
  22. 22. Treemap Expenses 2012-13 3/9/2012 22
  23. 23. Deficit Spending Problem   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 necessary3/9/2012 23
  24. 24. What Now?   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 size3/9/2012 24
  25. 25. Recommendation   It is respectfully recommended that the Board of Trustees approve submission of the Second Interim Report with certification of “qualified” financial condition, as presented.3/9/2012 25

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