lynwood unified school district 2011-12 first interim financial report board presentation december...

Download Lynwood Unified School District 2011-12 First Interim Financial Report Board Presentation December 13, 2011

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Lynwood Unified School District2011-12 First Interim Financial Report Board PresentationDecember 13, 2011Table of ContentsBackgroundKey AssumptionsRevenue Limit Deficit Factor HistoryBase Revenue Limit After Deficit FactorRevenue Limit per ADA Actual vs. Statutory LevelActual Revenue Limit Funding LossMulti-Year ProjectionsFuture OutlookQuestionsBackgroundStatutory RequirementAB 1200 - enacted in the early 1990s in response to a number of near bankruptcies, requests for state loans, or defaults on school district obligationsAt least twice a yearDecember 15 and March 15CertificationsPositive Will meet financial obligations in the current and subsequent two fiscal yearsQualified May not meet financial obligations in the current or subsequent two fiscal yearsNegative Will NOT meet financial obligations in the current or subsequent two fiscal yearsQualified or negative status requires additional reporting (due June 1) until district is positive again Key AssumptionsAverage Daily Attendance (ADA)Continued enrollment decline, per law, use higher ADA number from previous yearRevenue Limit COLA 2.24%Revenue Limit Deficit Factor 19.754% (increased from 17.963%)Net Revenue Limit Funding Change 0%Mid-Year Cut - $181 per ADA per Legislative Analyst Office est. (Approx. $2.7 million set-aside)Flat funding in 2012-13, i.e. 0% COLA and deficit factor remains the same (3.1% COLA assumed in Adopted Budget, LACOE and SSC both suggest extreme caution to include the COLA in MYP due to the recent economic developments.)Revenue Limit Deficit Factor History

B-18Base Revenue Limit after Deficit Factor$6,530

$1,290Funded Base Revenue LimitApply the 2011-12 deficit of 19.754% to the undeficited base revenue limit Funded revenue limit= $6,530 x (1 - 0.19754)= $6,530 x 0.80246= $5,240 Revenue Limit Funding Per ADA Actual vs. Statutory LevelState Budget Cuts - Actual Revenue Limit Funding Loss

Multi-Year Projections Unrestricted General Fund

Future Outlook State budget structural deficitProjected state budget deficit through 2014-15, will grow without corrective measureGovernors proposed tax increase is an uncertaintyThe volatility of global economy may negatively impact both the national and state economy recovery . The recovery timeline may be longer, especially for CaliforniaSunset of TIER III programs and other flexibility provisionsCash Flow Apportionment DeferralDeclining EnrollmentGrowing facility needsOther needs, textbooks, instructional materials, staffingQuestionsChart10.08140.11010.10120.088010.088010.088010.069950000.030020.021430.00892000.078840.183550.179630.19754

Series 1

Sheet1Series 11993-948.140%1994-9511.010%1995-9610.120%1996-978.801%1997-988.801%1998-998.801%1999-006.995%2000-010.000%2001-020.000%2002-030.000%2003-043.002%2004-052.143%2005-060.892%2006-070.000%2007-080.000%2008-097.884%2009-1018.355%2010-1117.963%2011-1219.754%

Sheet12008-092009-102010-112011-12Base Revenue Limit Per ADA$6,120.94$6,382.94$6,387.10$6,530.10Funded Base Revenue Limit Per ADA$5,640.81$4,958.36$5,239.79$5,240.14Per ADA Funding Loss$(480.13)$(1,424.58)$(1,147.31)$(1,289.96)Revenue Limit ADA16,204.1016,054.8915,736.0015,002.00Total Funding Loss (Ongoing)$(7,780,018)$(22,871,453)$(18,054,145)$(19,351,919)3 Year Total Loss$(48,705,617)$(60,277,518)

Sheet12010-112011-122012-132013-14Total Revenues$91,957,837$95,550,367$92,970,266$94,866,539Total Expenditures$75,436,093$80,345,560$81,867,599$81,328,026Other Financing Sources/Uses$(13,486,494)$15,022,218$15,781,662$16,573,246Operating Surplus/(Deficit)$3,035,250$182,589$(4,678,995)$(3,034,733)Beginning Fund Balance$2,841,813$14,713,928$14,896,517$10,217,522Ending Fund Balance$5,877,063$14,896,517$10,217,522$7,182,789Other Reserves$980,000$3,050,000$3,050,000$3,050,000Reserve for Economic Uncertainties*$4,897,063$11,846,517$7,167,522$4,132,789Unappropriated Amount0.