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West Contra CostaUnified School District

December 7, 2011

2011-12First Interim Financial Report

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First Interim 2011-12

• Period Ending October 31, 2011• Updated Information for all funds• Latest Information from the State• Utilizing the budget assumptions published

by School Services of California as recommended by the County Office

• Positive Certification

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Multi Year Projection First Interim Report

Unrestricted General Fund

2011-12 2012-13 2013-14Revenues $169,708 $165,890 $165,701Special Reserve Usage 872 2,879 6,661 Expenses 171,324 168,769 172,362 Deficit Spending (744) - - Beginning Fund Balance 18,439 17,695 17,695 Ending Fund Balance 17,695 17,695 17,695 Required Reserve 8,495 8,076 8,243 Stores & Revolving Cash 300 300 300 Mid-Year Trigger Reserve 8,097 8,097 8,097 Remaining Balance $803 $1,222 $1,055

Chart in Thousands

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Multi Year Projection• 2011-12

– Will meet 3% reserve– Use of Special Reserve Fund $872,000– Mid Year Trigger Reserve $8 million

• 2012-13– Will meet 3% reserve– Use of Special Reserve fund $2.8 million

• 2013-14– Will meet 3% reserve– Use of Special Reserve fund $6.6 million

All years assume zero COLA due to ongoing State fiscal crisis and pending information on the Governor’s Proposed Budget

• Assumptions Based on Board Priorities are Used for Multi-Year Projections– Furloughs are restored

• Does not include restoration of 3 Teacher Staff Development Days– Tier III Funding and Special Reserve are in use– Shannon and Lake Elementary Schools remain open– City of Richmond continues support for Kennedy,

Grant and Olinda

Multi-Year Projection

• Assumptions Based on Board Priorities are Used for Multi-Year Projections

• Maintains….– School Resource Officers at 2011-12 levels– 180 Day School Year– Adult Education

• Long Term Debt– State Loan Pay Off– IBM Pay Off– VIP Pay Off

Multi-Year Projection

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K-3 Class Size Reduction

• The Board prioritized the use of $2.4 million toward reducing class size in grades K-3 for 2012-13

• Using the current assumptions of no COLA and Mid-Year Triggers there is not enough funding for the expenditure of $2.4 million to be included in the projection for 2012-13

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K-3 Class Size Reduction

• The Parcel Tax will pay $1.9 million toward the reduction of class sizes in grades K-3

• If the Mid-Year Triggers are less than current assumptions the funding will be added to the K-3 Class Size Reduction program – up to the $2.4 million prioritized by the Board

• Summer School– Staff is working on how grants can provide

funding• Class Sizes at Secondary Levels• Support and Staffing

– Sophisticated and improved buildings, technology and security systems are provided

– Support staff remains at low levels, making it difficult to maintain these assets

Multi Year Planning Concerns

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• Retiree Benefits continue to take a large portion of the budget, and the District is absorbing the increased cost of health plans for the majority of retirees– The District is operating on a “Pay as you go” basis– The District has a retiree benefit fund, but is not

currently adding to it• General Fund cash flow for our District becomes

a problem when reserves are depleted

Multi Year Planning Concerns

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State Outlook• The LAO’s office revenue forecast indicates

Tier 2 Mid Year Triggers will be implemented

• Department of Finance is scheduled to provide their report in mid-December

• Governors Budget will be released mid-January

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Next Steps

Governor’s January Budget AnalysisJanuary 17 – Sacramento

• Staff will update the Board at each meeting

• Community Budget Meetings– January – Dates to be announced

• Financial reports available on the webhttp://www.wccusd.net/