Surprise Valley Joint Unified School District Budget Update September 11, 2007

Transcription

1 Surprise Valley Joint Unified School District Budget Update September 11, 2007 The district's original budget was adopted June 28, The budget was built on the board adopted class schedules, which under went many changes and revisions throughout the summer. At the August board meeting, the board approved the final staff changes and the new schedules were in place. Based on those schedules, the salaries for the updated budget were developed. With the effects of declining enrollment being an ongoing concern, the board took the opportunity to reduce staff by taking advantage of position openings. The board was able to make staffing reductions without any layoffs. Overall, certificated staff was reduced by 1.5 FTE and certificated staff by.5 FTE. Teaching principals were placed at both Surprise Valley Elementary and the Jr/Sr High School. At this time the district has a part time superintendent though December The updated budget does not reflect any costs that might be associated with a superintendent beyond December Salaries for were projected with step and column increases only. Health and Welfare costs were projected with a cap of $942 per month. Other costs were projected using a history of 3 years prior activity. 1

2 Unrestricted Budget Unrestricted revenue shows a net increase of $24,205. MAA reimbursement estimate was increased by $21,000 based on amount invoiced and interest earned by $3,000 based on actual amount earned in Unrestricted certificated salaries decreased by $75,323. Breakout for this savings is: Savings due to teaching principals -53,356 Budgeted full year for part time Sup adjust to half year only -11,000 Staffing changes 3 1.d grade, 7 th /8 th, and HS math/science -17,344 Buying prep to provide class coverage 2,495 Summer admin costs 1,100 Teacher column movement 2,782-75,323 Unrestricted classified salaries decreased by $7,382. Breakout for this saving is: Change in account clerk/payroll position -14,996 Long term sub and summer maintenance costs 7,500 Misc changes 114-7,382 Unrestricted employee benefits decreased by $39,924. This includes the reduction of two benefited positions and the costs savings related to the reduction in salaries. The remaining unrestricted costs increased by $30,035. Of that amount, $22,000 is related to costs paid with Ag Shop fire insurance money. $5,800 is associated with budgeting of beginning balance for unrestricted lottery and the remainder is miscellaneous increases in supply budgets. Contributions from unrestricted to restricted decreased by $6,644. Recap provided on next page. With the increase in income and the staffing changes, the deficiency went from $46,367 to an excess of income over expenditures of $77,076. The beginning balance for July 1, 2007 was underestimated in the original budget. Books for had not yet been closed. The increase to the unrestricted beginning balance was $154,295. Many things contributed to the underestimation of the beginning balance. Costs associated with vehicle maintenance came in lower than projected, items ordered and encumbered but not received were either cancelled or moved to the next fiscal year. Income projection for MAA reimbursement increased due to actual invoices 2

3 generated and an insurance payment received for expense related to water damage in high school darkroom all contributed to the increase in the fund balance. There were no major changes to the budget due to the signing of the budget act. A recap of income changes is provided at the end of this narrative. Restricted Budget The deficiency of expenditures over income for the restricted budget increased by $10,517. Income increased by $24,179. Funding for two new programs was added, $6,000 for principal training and $3,250 for Career Tech. The school safety money increased by $5,000 and the pupil retention grant increased by $6,670. Adjustments to miscellaneous restricted funding sources account for the remainder. Expenditures increased by $28,052. This increase is related to budgeting costs for Career Tech, principal training, and a portion of restricted ending balances for June 30, The transfer of unrestricted funds to restricted programs decreased by $6,644. Recap of these transfers is: Original Budget Updated Budget Title I 8, Home to School 56,215 56,215 ROP 23,129 24,279 Ag Incentive 10,256 10,256 97,665 91,021 3

4 Income Recap Budget Update - Sept 07 Original Budget Budget Update Difference Revenue Limit State Aid ,000, , , Homeowners , , Timber , , , Secured Tax , , , Unsecured Tax , , Prior Year , , Supplemental Taxes , , , ERAF , , RL Transfer CDS , , PERS Reduction , , PL , , Other Federal (MAA) , , , Core Programs , , Other State , , Lease and Rentals , , Interest , , , SELPA Rent , , Other Local , , From UR to Restricted , , , Sub Total 1,439, ,480, , Block Grant , , Forest Reserve , , Lottery , , CSR , , CSR UR to R Transfer , , CDS , , , Title I , , Title I UR to R Transfer , , DFSC , , Teacher Quality , , Principal Training , , EETT Innov Ed , , LEP , , Indian ED , , REAP , , Lottery , , Career Tech , , School Safety , , , Arts/Music , , Arts/Music/PE Ag , , Ag District Match , , EIA , , IMFRP , , '-tome to School , , Home to School Ur to R , , PAR , ,

5 Income Recap Budget Update - Sept 07 Original Budget Difference Budget Update Pupil Retention , , , Prof Development , , SIP , , Dscrtny Site Grant Dscrtny District Grant Inst/Lib/Tech Microsoft ROP , , ROP Ur to R , , , Carl Perkins , , Vehicle Replacement PBS Greenhouse Sub Total 869, , , Total GF Income 2,308, ,357, , Adult Ed: Cafeteria Def Maint: Bus Replacement: Special Reserve: Developer Fees: Building Fund: 48, Interest Federal , , , State , , Paid , , Interest Adult , , From GF , , , , , State , , District , , Interest , , , , , Interest , , Interest , , Interest , , Fees Collected , , , , , Interest , ,

6 irprise Valley Joint Unified School District ENROLLMENT PROJECTIONS FISCAL YEAR GRADE LEVEL Kindergarten SUBTOTAL 7 8 SUBTOTAL TOTAL ELEMENTARY TOTAL HIGH SCHOOL GRAND TOTAL CBEDS CBEDS ACTUAL EST. EST. EST. 10/05 10/06 6/07 10/07 10/08 10/ OTHER ENROLLMENT COMMUNITY DAY SCHOOL Great Basin Four year average of ADA to enrollment is 92.5% 9/13/2007 7

7 SURPRISE VALLEY JOINT UNIFIED SCHOOL DISTRICT PROJECTED MULTI-YEAR BUDGETS COMBINED INCOME 8000 Revenue Limit Sources Federal Revenues Other State Revenues Other Local Revenues REVENUE BEFORE ADJUSTMENTS Adjustments to Income Loss Of Forest Reserve Budget Estimate Estimate 1,443,676 1,366,240 1,423, , , , , , ,666 78,132 78,132 78,132 2,357,228 2,279,792 2,337,543 (135,000) (135,000) Adjustments to Income TOTAL PROJECTED REVENUE EXPENSES Certificated Salaries Classified Salaries Benefits Books, Supplies, Etc Other Outgo Indirect Costs Sub-total Expenses Transfers In/Out TOTAL EXPENSES/TRANSFERS BEFORE ADJUSTMENTS 2,357,228 2,144,792 2,202, , , , , , , , , , , , ,015 14,454 14,454 14, ,262,222 2,262,222 2,262, ,000 36,000 36,000 2,298,222 2,298,222 2,298,222 Adjustments to Expenses Delete one-time expenses budgeted in Deleted expense related to Ag Shop insurance costs Step and Column Certificated and Related Costs Step and Column Classified and Related Costs Adjustments to Expenses Step and Column Certificated and Related Costs Step and Column Classified and Related Costs TOTAL PROJECTED EXPENSES NET INCREASE/(DECREASE) IN FUND BALANCE Additional Expense Related to AG Shop/Greenhouse BEGINNING BALANCE PROJECTED ENDING BALANCE Less Revolving Fund Less Legally Restricted Less Other Designations 'OJECTED UNRESTRICTED RESERVES TOTAL RESERVES AS PERCENT OF OUTGO REQUIRED RESERVE 5.00% AMOUNT ABOVE OR (BELOW) REQUIRED RESERVE (31,654) (31,654) (22,000) (22,000) 7,633 7,633 9,994 9,994 7,918 4,643 2,298,222 2,262,195 2,274,756 59,006 (117,403) (72,213) 100, , , , , , ,613 4,000 4,000 4, , , ,740 20,000 20,000 20, , , , % 23.38% 20.92% 114, , , , , ,135

8 SURPRISE VALLEY JOINT UNIFIED SCHOOL DISTRICT PROJECTED MULTI-YEAR BUDGETS UNRESTRICTED INCOME 8000 Revenue Limit Sources Federal Revenues Other State Revenues Other Local Revenues REVENUE BEFORE ADJUSTMENTS Adjustments to Income Loss Of Forest Reserve Adjustments to Income TOTAL PROJECTED REVENUE EXPENSES Certificated Salaries Classified Salaries Benefits Books, Supplies, Etc Other Outgo Indirect Costs Sub-total Expenses Transfers In/Out TOTAL EXPENSES/TRANSFERS BEFORE ADJUSTMENTS Budget Estimate Estimate 1,431,253 1,353,817 1,411, , , ,000 70,787 70,787 70,787 42,500 42,500 42,500 1,775,540 1,698,104 1,755,855 (135,000) (135,000) 1,775,540 1,563,104 1,620, , , , , , , , , , , , ,437 8,000 8,000 8,000 (19,035) (19,035) (19,035) 1,571,443 1,571,443 1,571, , , ,021 1,698,464 1,698,464 1,698,464 Adjustments to Expenses Delete one-time expenses budgeted in Deleted expense related to Ag Shop insurance costs Step and Column Certificated and Related Costs Step and Column Classified and Related Costs Adjustments to Expenses Step and Column Certificated and Related Costs Step and Column Classified and Related Costs TOTAL PROJECTED EXPENSES NET INCREASE/(DECREASE) IN FUND BALANCE Additional Expense Related to AG Shop/Greenhouse 'GINNING BALANCE PROJECTED ENDING BALANCE Less Revolving Fund Less Legally Restricted Less Other Designations PROJECTED UNRESTRICTED RESERVES (25,200) (25,200) (22,000) (22,000) 5,177 5,177 8,267 8,267 5,281 3,883 1,698,464 1,664,708 1,673,872 77,076 (101,604) (53,017) 100, , , , , , ,873 4,000 4,000 4, , ,890 ' 475,873 8

9 SURPRISE VALLEY JOINT UNIFIED SCHOOL DISTRICT PROJECTED MULTI-YEAR BUDGETS RESTRICTED INCOME 8000 Revenue Limit Sources Federal Revenues Other State Revenues Other Local Revenues TOTAL PROJECTED REVENUE EXPENSES Certificated Salaries Classified Salaries Benefits Books, Supplies, Etc Other Outgo Indirect Costs Sub-total Expenses Transfers In/Out TOTAL EXPENSES/TRANSFERS BEFORE ADJUSTMENTS Budget Estimate Estimate 12,423 12,423 12, , , , , , ,879 35,632 35,632 35, , , , , , ,952 90,100 90,100 90, , , , , , ,578 6,454 6,454 6,454 19,035 19,035 19, , , ,779 (91,021) (91,021) (91,021) 599, , ,758 (6,454) (6,454) 2,456 2,456 1,727 1,727 2, , , ,884 (18 070) (15,799) (19,196) 266, , , , , , , , ,740 20,000 20,000 20,000 0 (0) (0) Adjustments to Expenses Delete one-time expenses budgeted in Step and Column Certificated and Related Costs Step and Column Classified and Related Costs Adjustments to Expenses Step and Column Certificated and Related Costs Step and Column Classified and Related Costs TOTAL PROJECTED EXPENSES NET INCREASE/(DECREASE) IN FUND BALANCE BEGINNING BALANCE PROJECTED ENDING BALANCE Less Revolving Fund Less Legally Restricted Less Other Designations PROJECTED UNRESTRICTED RESERVES 9

10 Multiyear Projection Assumptions , , UNRESTRICTED ENDING FUND BALANCE Original MYP Updated MYP Difference , , , , , , , , ,400 Change in Fund Balance - Original MYP , , , , , ,374 Change in Fund Balance - Updated MYP , , , , ,604 53,017 As showed above, the unrestricted ending fund balance does decrease in and but not by as much as originally projected. RESTRICTED ENDING FUND BALANCE The restricted ending balance also shows a projected decrease over the next three years. This is the result of spending prior year carryover. Restricted funds cannot be used to offset the decrease in the unrestricted ending balance. SALARIES AND HEALTH AND WELFARE Step and column adjustments are the only salary increases projected for all three years. Health and welfare costs were projected with the cap of $

11 The current year budget and the next two years out are built using the updated master schedules for fiscal year Since the adoption of the original budget, staffmg changes were made. Overall certificated staff was decreased by 1.5 FTE and classified staff by.5 FTE. These changes are maintained for the two years out. No other reductions in staff are built into the MYP, but consideration will be given to possible reductions with the continued declining enrollment trend. INCOME Forest Reserve receipts were reauthorized for the fiscal year. $135,000 has been budgeted for In fiscal years and , no Forest Reserve receipts are budgeted. The District Revenue Limit was projected using information provided by Modoc County Office of Education. In fiscal year , the elementary school continues to be designated a necessary small school. In and the ADA is projected to drop the elementary school down a funding level. Elementary funding blocks are designed to provide some stability for funding, but when sites are at the top end of the block it can be more advantageous to fund the ADA at the regular revenue limit per ADA. For and K-6 ADA will be funded at the rate per ADA. For the amount per ADA is $6,211.52, for $6,461.52, and for the rate is $6, In th /8 th regular ADA funded by the base amount. In and K-8 ADA is projected to be funded by the base amounts for those years. Necessary Small School Elementary Regular ADA , , , , , ,805 The high school is designated as a necessary small school and is currently in the ADA funding block. The actual enrollment for is 44, which should generate the ADA needed to stay in the current funding block. In fiscal year , the enrollment is projected to be 42. Attendance will need to be at 93% to generate the needed ADA to stay in the current funding block. In the enrollment is projected to be 46, which should provide the needed ADA to stay within the current funding block. Districts can use current or prior year ADA when figuring revenue limit amounts, which should allow the district to maintain the current funding level at the high school for this budget year and the next two out.

12 The importance of district-wide student attendance needs to be emphasized and the SARB process utilized to help increase ADA. Other entitlements for the next two years were budgeted using budget projections. EXPENDITURES Expenditures for objects are budgeted at amounts for fiscal years and Adjustments to those two fiscal years include a decrease of $25,200 for the one time cost for the retirement incentive paid in fiscal year , and $22,000 for one time costs associated with purchases for the Ag Shop and Greenhouse using insurance money. Add-ons for both years out are the costs of step and column increase for all staff and the related costs. TRANSFERS FROM SPECIAL RESERVE No transfers are projected for the current fiscal year or the next two years out. IN SUMMARY Deficit spending is when expenditures exceed income. Projecting expenditures is a difficult task and with the age of the district's vehicles and equipment the need for major repairs can come up unexpectedly. Keeping this in mind, the budgets for repairs and parts include funds for those types of expenditures. If the district makes it through the year without any major additional costs, the budget will be adjusted and the ending balance should increase. In fiscal year the district spent less than was budgeted and with good fiscal management there could also be a similar experience in the current budget year and the next two, however if unforeseen unbudgeted costs which have to be addressed occur, the ending balance would be corresponding less. Each expenditure has its own unique accounting string, which identifies it. The district has over two hundred account strings and each one has a budget. Just over budgeting by $50 in each accounting string could amount to as much as $10,000 by the end of the fiscal year. Unrestricted Projected Income 1,775,540 1,563,104 1,620,855 Projected Expenditures -1,698,464-1,664,708-1,673,872 Net Increase/decrease 77, ,604-53,017 12

13 Unrestricted 634, ,890 July 1 Beginning Balance 657,849 Ag Shop Fire Expense -100,431 Net Increase/decrease 77, ,604-53,017 June 30 Ending Balance 634, , ,873 Components of Ending Fund Balance 4,000 4,000 Revolving Fund 4,000 Economic Uncertainties 630, , , , , ,873 The budget is a living document that changes almost daily. Throughout the year the budget is modified based on changes in legislation, enrollment, needs, or priorities. The district needs to be concerned about the potential drop in funding for the elementary school. The district needs to examine why we are losing students and determine if there is something that can be done to reverse the trend.