Mark Twain Union Elementary School District 2012-13 Annual Budget Addendum Our Mission We recognize that: Therefore: As learning facilitators we will foster a Each child is unique, valuable, and gifted in secure, exciting learning environment many ways... Each child can succeed in is/her that will enable each student to social, academic, and physical development achieve his/her greatest potential given proper amounts of encouragement, which includes academic, physical, support, learning experiences and belief in emotional and social development. self... Parents and family environment are the primary educators... Young people and the school community are an integral part of the community at large...
Mark Twain Union Elementary School District 2011 ‐ 12 Proposed Annual Budget • The MTUESD Budget presented for Board approval reflects funding for K ‐ 12 education as proposed in the Governor’s May Revise State budget • That proposal includes two possibilities for K ‐ 12 education funding predicated on the success or failure of the Governor’s tax increase initiative slated for the November 2012 general election ballot • This district budget proposal reflects what is identified as the “worst case scenario” assuming the Governor’s tax initiative is unsuccessful in November
Details of the May Revise Proposals If the Governor’s tax initiative is successful in November, actual funding received by schools would be nearly equal to funding received in 2011 ‐ 12 Funding “increases” to education identified in the May Revise budget would be used to buy back deferrals (delay in cash payments) meaning schools would receive more of the funding due them within the 2012 ‐ 13 year, but not additional or new revenue Statutory COLA of 3.24% will be funded, holding the Revenue Limit deficit at the 2011 ‐ 12 level Initial implementation of a weighted student funding formula will begin which will modify the funding methodology and likely decrease total allocations received by most school districts (based on current proposal language)
Details of the May Revise Proposals If the Governor’s tax initiative is not successful in November, a mid ‐ year cut would occur and actual funding received by schools would be reduced by $441 per ADA; approximately $330,750 for Mark Twain Union Elementary Funding deferrals (delay of cash payments) will continue at current levels; there would be no buy back of deferrals Revenue limit deficits (reductions) will continue to increase as statutory COLA goes unfunded absent significant economic improvement (State revenue increases) Implementation of the weighted student funding formula will be delayed The tax initiative is not polling favorably; with success questionable at best, the District budget is built on these assumptions
MTUESD REVENUE Revenue Limit: Unfunded statutory COLA of 3.24%, RL deficit increases to 22.272% District ADA is projected at 750.05 for 2012 ‐ 13 P ‐ 2 and is the basis for the RL Mid ‐ year cut results in further funding reduction of $441 per ADA Total RL projection of $3,426,092.65; decrease of $272,016 from 2011 ‐ 12 Federal Revenue: Flat funding for most federal programs, no ARRA or other one ‐ time funds Overall decrease of $127,073 for total projection of $327,830 Other State: Flat funding for most State categorical programs, larger class sizes & penalties for K ‐ 3 CSR (Copper 3 rd grade, slight increases elsewhere) Overall decrease of $48,433 with total projected at $1,008,175 Other Local: Projections are reduced for one ‐ time allocations and grants received in 2011 ‐ 12 Overall decrease of $167,144 with total projected at $205,579
MTUESD EXPENDITURES Certificated Salaries Teachers: No change to number of positions, step increases included where due, projected substitute costs reduced to 2011 ‐ 12 actual costs plus long ‐ term sub for maternity leave; decrease of $3,087 as compared to 2011 ‐ 12 Administration: Full ‐ time principals at Mark Twain and Copper and a full ‐ time superintendent; overall cost increase of $46,541 Classified Salaries Additional paraprofessional, library, computer, yard duty and clerical costs with full ‐ year impact of 2011 ‐ 12 mid ‐ year staffing increases New custodial and maintenance/grounds ‐ keeping positions added and increased costs for a custodial position expanded to full year are included Step and increment increases included where due Employee Benefits Cost increases to STRS, PERS, FICA/Medicare, health insurance and workers’ comp insurance Decreases to State Unemployment insurance (rate reduction) and retiree benefits (aged ‐ out members) Net decrease of $5,603
MTUESD EXPENDITURES Books and Supplies Reductions are reflected for textbooks with K ‐ 5 ELA adoption completed in 2011/12 and for other categories to eliminate expenditure of 2011/12 one ‐ time allocations and grants Overall reduction of $110,717 for a total budget of $298,022 Services and Other Operating Expenses Decreases are reflected to travel & conference, operations and housekeeping, rentals, leases & repairs and professional and consulting services. These reductions reflect the removal of expenditures for one time allocations and grants and completion of certain tasks by district staff rather than outside contractors (maintenance & grounds ‐ keeping) Overall reduction of $19,396 for a total budget of $892,476 Capital Outlay Expenditure of one ‐ time funds from 2011 ‐ 12 have been eliminated; no capital outlay expenditures are projected at this time Other Outgo A transfer of $13,811 is expected from the cafeteria fund for food service program indirect costs
Deficit Spending & Fund Balances With anticipated revenue decreases of $624,667 and expenditure reductions of $166,816 in this budget, expenditures will exceed projected revenues by $467,591. Multi ‐ year projections utilizing current information and anticipating ongoing revenue losses will require the that District continue to utilize reserves to sustain programs and operations while maintaining District goals and priorities. Current projections show this can be done through June 30, 2015 General Fund Reserves 6/30/2013 6/30/2014 6/30/2015 Revolving Cash 1,500.00 1,500.00 1,500.00 Restricted Programs 22,985.45 0.00 0.00 MAA ‐ Site Allocations 14,553.50 0.00 0.00 Lottery ‐ Site Materials & Operations 80,248.24 94,801.74 94,801.74 Economic Uncertainties (4%) 217,494.00 219,502.00 222,159.00 Unassigned/Unappropriated 1,427,953.05 922,767.40 177,541.30 TOTAL FUND BALANCE $1,764,734.24 $1,238,571.14 $496,002.04
What Now? • This is a very conservative budget assuming the “worst case” funding scenario under the current State proposals • Could funding decline further? Yes. • Do we expect it will? No. • The budget process and negotiations will continue in Sacramento with a statutory deadline of June 15 th (tomorrow!) for the legislature to pass a budget and forward it to the Governor. • As always, we must have a budget in place by June 30 th with or without definitive funding information from Sacramento • This years tax initiative questions prolong the uncertainty for school districts, necessitating our diligence in tight fiscal control
What Now? • If the Governor’s tax initiative is successful in November, we will once again be in a position to reassess District goals and priorities, but must remember that the State economy and the plight of school funding will not be remedied by one tax initiative. • A second tax increase measure, sponsored by advocate Molly Munger, would provide funding for schools outside of the State funding formula for education and is not reflected in current district projections • If both measures pass, only the one with the highest percentage of affirmative votes will be implemented
Stay the Course! • Absent a State budget, we continue with adoption of our District budget under the May Revise • We continue with a needs based approach and defer purchases of non ‐ essential items • We continue to be prepared to respond to and address the changes necessary when a State budget is enacted • We “wait & see” what happens at the polls in November • We advocate where we can to inform the community and all education stakeholders of the ongoing fiscal impacts to local education programs
DISCUSSION/QUESTIONS
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