State Funding

FONTANA UNIFIED SCHOOL DISTRICT2011-2012 2nd Interim Report

March 7, 2012

Mid-Year Reductions

•Cut ADA funding

•Eliminated Transportation– Changed to Higher Deficit Factor (SB 81)

•Eliminated Funding for Transitional Kindergarten

•Proposed new Funding Formula for K-12 Education

•Potential ADA Reduction of $370/ADA Dependent on Increase in Taxes

MAJOR CHANGES BY GOVERNOR

Funded ADA vs. P-2 ADA

ADA Comparison

• Projected ADA for 2012-2013 based on P-1 ADA for 2011-2012– 38,798.66

• Potential ADA for 2012-2013 if Increase ADA for 2011-2012– 39,254.38

• Difference in Potential Increase in ADA– 455.72

• Potential Revenue from increase in ADA– $2,210,013.28

Revenue Increase due to Increase in ADA

Budgeted 1st Interim 2nd Interim

2011-2012

$214,816,470.93

$215,481,738.00

$213,459,529.00

2012-2013

$221,343,261.75

$218,765,025.00

$198,108,039.00

2013-2014

$227,022,824.91

$223,536,619.00

$202,001,649.00

pg. 145 pg. 102 pg. 103

Unrestricted Revenue Comparison

Budgeted 1st Interim 2nd Interim

2011-2012

$208,566,683.00

$218,500,997.00

$217,181,092.00

2012-2013

$222,866,304.00

$224,123,428.00

$219,767,699.00

2013-2014

$227,792,631.00

$228,353,797.00

$222,276,540.00

pg. 145 pg. 102 pg. 103

Unrestricted Expenditure Comparison

Changes In Revenue for 11-12

• Adjusted ADA (-20.22)• (-$104,398)

• Governor’s Trigger in Reduction of ADA• $13 per Student (-$507,111)

• Elimination of 50% Transportation Funding• 50% is equal to approximately (-

$750,000.00)• SB81 (-$1,664,759)

CHANGES IN REVENUE FOR 12-13

• Governors Proposal of Flat Funding•Increase in Deficit Factor (2.446 %)•$6.3 million

• Reduction of $370 per ADA•$14.3 million

Total Reduction in Revenue $20,600,000

Changes In Revenue for 13-14

Total Reduction in Revenue $21,400,000

• Governors Proposal of Flat Funding•Increase in Deficit Factor (2.446%)•$7.2 million

• Reduction of $370 per ADA•$14.2 million

CHANGES IN EXPENDITURES FOR 2011-2012

• Salary Adjustments• Decrease Expenses by $1,500,000

• Capital Outlay• Increase by $200,000

Decrease by $1,300,000

CHANGES IN EXPENDITURES FOR 2012-2013

• Salary/FTE Adjustments• Decrease by -$2,700,000

• Employee Benefits Adjustments (7%)• Decrease by $1,600,000

Decrease by $4,300,000

CHANGES IN EXPENDITURES FOR 2013-2014

• Salary/FTE Adjustments• Decrease Expenses by $3,300,000

• Employee Benefits Adjustments (7%)• Decrease by $2,500,000

Decrease by $5,800,000

2011-2012 2012-2013 2013-2014

Revenue $213,459,529 $198,108,039 $202,001,649

Expenditures $217,181,092 $219,767,699 $222,276,540

Difference ($3,721,563) ($21,659,660) ($20,274,891)

Fund Balance $37,462,675 $33,741,112 $12,081,452

New Difference $33,741,112 $12,081,452 ($8,193,439)

Reserve (4%) $13,552,337 $11,649,191* ($5,863,966)*

Remaining Funds

$20,188,775 $432,261 ($14,057,405)

UNRESTRICTED FUND BALANCE

Qualified Budget for 2nd Interim Report

• Due to Revenue Uncertainties

– Reduction in Revenue Hinging on Potential Tax Increases

• Need to make $14,500,000 in reduction by 2013-2014

– Increase Revenue

– Reduce Expenditures

– Union Concessions

– Reduce Staff

QUESTIONS?