Budget Development Building Blocks

FY07/08

Communicating our budget and budget development process to our staff and our community

Alameda Unified School District

Purpose

1. To present basic information and an over-view of the AUSD’s budget development process

2. To inform the community about our district’s finances in a user-friendly format

This presentation was created with two goals in mind –

The Checkbook

What is a budget? A budget is a spending plan. School districts develop spending plans for every fiscal year (July 1 – June 30).

Our spending plan has components similar to your checkbook. It includes estimates of anticipated revenues and planned spending. 

The Checkbook AUSD Budget

Deposits/

Income

Revenue

Checks Written/ Expenses

Expenditures

Balance at End of Page

Ending Balance

Balance Brought Forward to New

Page

Beginning Balance

Our budget is our best guess of the income we will earn and the checks we will write. It changes just like the needs in a house-hold will change.

The Checkbook

What is a multi-year projection? A multi-year projection is our best guess of the income we will earn and the checks we will write over an extended period of time (three years).

July 1, 2006 – June 30, 2007

July 1, 2007 – June 30, 2008

July 1, 2008 – June 30, 2009

July 1, 2009 – June 30, 2010

Deposits/

Income

Deposits/

Income

Deposits/

Income

Deposits/

Income

Checks Written/ Expenses

Checks Written/ Expenses

Checks Written/ Expenses

Checks Written/ Expenses

Balance at End of Page

Balance at End of Page

Balance at End of Page

Balance at End of Page

Balance Brought Forward

Balance Brought Forward

Balance Brought Forward

Balance Brought Forward

The Annual Budget Cycle

Budget

Adoption

Unaudited

Actuals

Audited

Actuals

Revised

Budget

First

Interim

Second

Interim

At each period, we:

• Update budget

• Certify our financial condition

• Present summary to Board of Education

• Submit copies to County Office of Education and State

The Annual Budget Cycle

Period Finances as of Description

Adopted Budget

July 1 The Board of Education is required by law to adopt a budget by July 1.

Revised Budget

Signing of State Budget

Act

We are required by law to update our adopted budget within 45 days that the Budget is signed into law.

1st Interim October 31 Update budget and certify the state of our finances

2nd Interim January 31 Update budget and certify the state of our finances

3rd Interim April 30 Applies only to districts with Qualified or Negative Certifications

Unaudited Actuals

June 30 Includes all transactions processed during the fiscal year

Audited Actuals

June 30 An independent auditing firm audits the financials statements prepared by the district and issues an opinion regarding their accuracy.

Certification Status

At Interim Reporting Periods:

• Positive – District will be able to meet its financial obligations for the current and two subsequent years

• Qualified – District may not be able to meet its financial obligations for the current or two subsequent years

• Negative – District will be unable to meet its financial obligations for the current fiscal year or subsequent year

Our District’s Funds

Other funds have very specific purposes and are very limited in use. Consequently, transfers between funds are subject to strict legal limitations and Board policy.

Most day-to-day financial

transactions are found in the

General Fund (Fund 01).

The district maintains a total of 12 different funds to record its financial transactions.

Each fund is a separate financial entity with its own set of financial records.

Our District’s Funds

OPERATING FUNDS CAPITAL FUNDS

Fund Description Fund Description

01 General Fund 14 Deferred Maintenance Fund

08 Regional Occupational Program

21 Building Fund

09 Charter School Fund (Alameda Community Learning Center)

25 Capital Facilities Fund

11 Adult Education Fund 35 County Schools Facilities Fund

12 Child Development Fund 40 Capital Reserve

13 Food & Nutrition Services Fund

51 Bond Interest & Redemption Fund

Building Our Budget

Our district’s budget is only as good as the assumptions

used in projecting revenues and

expenses.

Many of the items that impact the district’s budget are unknown until AFTER the district is required to adopt a budget. Thus, the district must use a series of assumptions about those items in order to develop the budget.

The accuracy of the proposed budget is only as good as the assumptions used in its development. If the assumptions are faulty, the budget will be inaccurate. Accordingly, the initial assumptions are carefully considered and revised throughout the year as more information becomes available.

Major Assumptions - Included

Assumption Expenditures Revenue

Enrollment

Utilities

Property & Liability Insurance

Step & Column

Mandatory Benefits Consumer Price Index (CPI) Average Daily Attendance (ADA) Cost of Living Adjustment (COLA)

Major Assumptions - Excluded

Assumption Expenditures Revenue

One-Time X X

Carryover X X

Negotiated Salary Increases X

Growth in Special Education Encroachment

X

Certificated Salaries63%

Classified Salaries13%

Benefits16%

Books & Supplies1%

Services7%

Unrestricted Expenditures - $54,908,112

General Fund Expenditures

As of Second Interim

Excludes $83,538 of Other Outgo and Indirect/Direct Support Costs

Unrestricted General Fund Expenditures

Personnel92%

Non-Personnel8%

Personnel - $50,646,478Non-Personnel - $4,378,289

Utilities

Insurance

Supplies/Equipment

As of Second Interim

Excludes $83,538 of Other Outgo and Indirect/Direct Support Costs

$1.9M

$0.7M

$0.7M

Enrollment & School Site Staffing

Enrollment projections prepared by Cabinet

and Principals are used as the basis for staffing

allocations.

School site staffing is comprised of two types –

1.) Administrative staffing

2.) Enrollment-based staffing

Administrative staffing consists of positions responsible for the operations of the site (e.g., management, clerical, and custodial staff).

Enrollment-based staffing consists of positions responsible for instructional and student support at the site (e.g., classroom teachers and clerical staff).

School Site Staffing

Principal Classroom Teacher

Vice Principal Other Clerical

Office Manager II Health Office Assistant

Media/Library

Custodial

Counselor

Administrative staffing Enrollment-based staffing

Mandatory and Employer-Provided Benefits

Benefit Item Rate

State Teacher Retirement System (STRS) 8.250%

Public Employee Retirement System (PERS) 9.306%

Federal Insurance Contributions Act (FICA) 6.200%

Medicare 1.450%

Health &Welfare (H&W) 6.860%

State Unemployment Insurance (SUI) 0.050%

Workers Compensation 1.850%

Public Employee Retirement System Reduction

(PERS Reduction)

3.714%

Enrollment & School Site Discretionary Funds

School site discretionary funds are used to support site operations, such as

classroom supplies, office supplies, and copy costs.

School site discretionary funds are determined by grade-level enrollment projections and grade-level per pupil allocations.

Per Pupil Allocations

K-5 $24.76

6-8 $45.77

9-12 $81.73

School sites also receive funds for custodial supplies, as determined by facility square footage, use, and grade-level enrollment projections.

General Fund Revenues

Revenue Limit64%

Federal8%

Other State17%

Local11%

Total Revenue$83,181,089

Our BRL is a specific dollar amount the state gives us based on the number of days students attend school.

Our income is based on our average daily attendance (ADA) - not the number of students enrolled.

Our primary source of revenue is the Base Revenue

Limit (BRL).

As of FY06/07 Second Interim

Base Revenue Limit and ADA

10,49810,400 10,382 10,354

10,183

9,952 9,912

10,203

10,082

9,982 10,024

9,756

9,476 9,485

8,800

9,000

9,200

9,400

9,600

9,800

10,000

10,200

10,400

10,600

2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07

Enrollment at CBEDS P2 ADA

Difference between Enrollment and ADA results in a loss in revenue.

Example for FY06/07(427) ADA X $5525 BRL = ($2.4M)

Loss of 427 ADA

Unrestricted General Fund Revenues

Federal0%

Other State10%

Local6%

Revenue Limit84%

Unrestricted Revenue

$61,463,985

Our primary source of unrestricted revenue is the

Base Revenue Limit (BRL).

As of FY06/07 Second Interim

Revenue Limit

Revenue Limit Sources

$51.7M

Other State

Lottery $1.3M

Class Size Reduction – Grades K-3

$2.8M

Class Size Reduction – Grades 9

$0.3M

Local

Parcel Tax $3.2M

Restricted General Fund Revenues

Federal29%

Local25%

Other State36%

Revenue Limit10%

Restricted Revenue

$21,717,105

Our primary source of restricted revenue (i.e., categorical funds) is the State. These funds have

restrictions on their use.

As of FY06/07 Second Interim

Revenue Limit

Revenue Limit Sources $2.1M

Federal

Title I $1.4M

Special Education $1.9M

Other State

Gifted and Talented $0.1M

Lottery $0.3M

Instructional Materials $0.7M

School/Library Improvement $0.7M

Special Education $5.6M

Local

Donations $0.3M

Contributions to Restricted Programs

Revenue68%

Contribution32%

Restricted programs are like mini-funds and should be self-sustaining – expenditures should match revenues. When expenditures exceed revenue, a contribution is made to the restricted program.

As of FY06/07 Second Interim

Additional Information

• Have suggestions about improving this presentation? Please share your thoughts with us at budget@alameda.k12.ca.us.

• Need prior presentations or budget information? Our budget documents are posted on our website.

• Need additional information? Please contact Business Services at (510)337-7066 or budget@alameda.k12.ca.us.