Lynwood Unified School District
2010-11 First Interim Financial Reporting
Board PresentationDecember 14, 2010
Table of Contents
• Background
• Fluctuation of Ending Balance – Unrestricted General Fund
• Assumptions
• Current Year Projections
• Multi-Year Projections
• Ongoing Concerns Declining Enrollment State Budget
• Next Steps
2
Background
• Statutory Requirement Education Code At least twice a year December 15 and March 15
• Certifications Positive Qualified Negative
3
Fluctuations of Fund BalanceUnrestricted General Fund
4
Fluctuations of Fund BalanceUnrestricted General Fund
5
Assumptions• Average Daily Attendance(ADA)
Continued Enrollment Decline Higher ADA from 2009-10 is used for funding purposes –
15,601• -039% COLA = ($25.00)• 0% COLA in 2011-12 and 1.9% in 2012-13• Deficit Factor 17.963%
Lowered from 18.355% (neutralize -0.39% COLA)• Other Revenue Limit Reduction – 0%
Lowered from 3.85% (approx. $4.0 million increased revenue limit, ongoing)
• Mandated Cost – Approx. $675,000 1-time funding• Education Jobs Fund –$3 million (1-time)• ARRA Fiscal Stabilization Fund - $1.1 million (1-time)
6
Assumptions (continued)• ARRA Fiscal Stabilization Fund - $1.1 million (1-time)
• 2 Furlough Days – Certificated Bargaining Unit
• K-3 CSR 30:1 students to teacher ratio in all classes except Quality Education Investment Act (QEIA) schools.
• Lottery $111.00 per ADA
• Property & Liability Insurance with $10,000 and $15,000 deductible – reduce $450,000 in premium
• E-rate funding $600,000 (both 1-time and ongoing)
• Unfilled Positions Saving
• Remove 11 Leased Portable Classrooms
• Terminate Warehouse Storage Lease (Effective January)
7
Current Year Projections• Beginning Fund Balance - $2.5 million
• Total Revenues - $97.5 million
• Total Expenditures - $89.2 million
• Net Change - $8.3 million
• Designated for Economic Uncertainties - $10.8 million
8
Multi-Year ProjectionsTotal Revenues 92,270,879$ 90,960,725$
Total Expenditures 80,095,744$ 80,909,097$
Other Financing Sources/Uses 14,148,926$ 14,856,372$
Operating Surplus/(Deficit) (1,973,791)$ (4,804,745)$
Beginning Fund Balance 10,768,547$ 8,794,756$
Ending Fund Balance 8,794,756$ 3,990,012$
Other Reserves 980,000$ 980,000$
Reserve for Economic Uncertainties* 7,814,756$ 3,010,012$
Unappropriated Amount -$ -$
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*In 2012-13, the Reserve for Economic Uncertainties is less than the statutory 3% requirement.
Ongoing Concerns – Declining Enrollment
17,723
17,31917,034
16,715
18,211
93.29%
92.28%
92.02% 93.44% 93.34%
14,000
14,500
15,000
15,500
16,000
16,500
17,000
17,500
18,000
18,500
EnrollmentADA
Enrollment 18,211 17,723 17,319 17,034 16,715 ADA 16,989 16,355 15,936 15,916 15,601
2005-06 2006-07 2007-08 2008-09 2009-10
10
Ongoing Concerns – State Budget
• 2010-11 Budget Act (Enacted October 8) Closes Estimated $19.3 Billion Deficit $8.4 Billion Spending Reductions, $5.4 Billion Additional
Federal Revenues,$5.5 Billion Other Solutions
• In November, Legislative Analyst Projected Budget $25 Billion Budget Gap $6 Billion in 2010-11 $19 Billion in 2011-12
• No Relief In Sight Unemployment Rate Remains Above 12% Recovery is at an Anemic Pace
• The Possibility of Mid-Year Budget Cuts Loom Large
11
Next Steps Prepare for Mid-Year Budget Cuts
Continue Fiscal Recovery Efforts Develop Enrollment and Attendance Enhancement
Strategies Identify other Revenue Enhancement Measures Identify Other Costs Saving Strategies
12
Questions
13
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