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Travis Unified School District

2012-13 Preliminary Budget

May 8, 2012

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Multiyear Financial Projection

Second Interim2011 - 12

Third Interim2011 - 12

Projected Budget2012 - 13

Projected Budget2013 - 14

Revenue Limit Sources $27,167,292.00 $27,167,292.00 $27,489,041.00 $28,150,750.00 Federal Revenues $6,141,271.56 $6,345,545.56 $5,668,652.00 $5,668,652.00 Other State Revenues $4,283,108.00 $4,213,123.00 $4,214,754.00 $4,273,082.00 Other Local Revenues $1,658,866.91 $1,732,937.64 $1,125,505.00 $1,127,276.00

$39,250,538.47 $39,458,898.20 $38,497,952.00 $39,219,760.00

Certificated Salaries $20,589,039.93 $20,534,128.93 $20,425,968.00 $20,597,462.00 Classified Salaries $6,691,425.15 $6,587,363.15 $6,847,552.00 $6,880,801.00 Employee Benefits $6,336,617.00 $6,331,379.00 $6,308,094.00 $6,312,243.00 Books and Supplies $2,648,552.15 $2,355,314.48 $1,787,322.00 $1,801,879.00 Services and Other Operating $4,038,800.18 $3,904,845.68 $3,807,230.00 $3,841,508.00 Capital Outlay $71,547.00 $293,531.00 $29,409.00 $29,409.00 Other Outgo $723,325.00 $723,325.00 $751,359.00 $751,359.00 Direct Support/Indirect Cost ($61,063.00) ($61,063.00) ($59,102.00) ($59,040.00)Debt Service $362,062.00 $362,062.00 $362,062.00 $362,062.00

$41,400,305.41 $41,030,886.24 $40,259,894.00 $40,517,683.00 ($2,149,766.94) ($1,571,988.04) ($1,761,942.00) ($1,297,923.00)

Interfund Transfers In $75,000.00 $75,000.00 $0.00 $0.00 Interfund Transfers Out $0.00 $0.00 $0.00 $0.00

$75,000.00 $75,000.00 $0.00 $0.00 ($2,074,766.94) ($1,496,988.04) ($1,761,942.00) ($1,297,923.00)

Total ExpendituresExcess (Deficiency) of Revenues Over Other Financing Sources\Uses

Total Other Financing Sources\UsesNet Increase (Decrease) in Fund Balance

GENERAL FUND

2011-12 Third Interim Budget Update

Revenues

Total RevenuesExpenditures

Revenue Limit increase for 2012/13 is not anticipated and will reduce this income projection by $321,749

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Multiyear Financial Projection

Second Interim2011 - 12

Third Interim2011 - 12

Projected Budget2012 - 13

Projected Budget2013 - 14

Beginning Fund Balance $6,999,676.45 $6,999,676.45 $5,502,688.41 $3,740,746.41 Adjusted Beginning Fund Balance $6,999,676.45 $6,999,676.45 $5,502,688.41 $3,740,746.41 Ending Fund Balance $4,924,909.51 $5,502,688.41 $3,740,746.41 $2,442,823.41

a) NonspendableRevolving Cash $50,000.00 $50,000.00 $50,000.00 $50,000.00 Stores $36,984.76 $56,370.10 $56,370.10 $56,370.10 Prepaid Expenditures $0.00 $0.00 $0.00 $0.00

b) Restricted $0.00 $0.00 $0.00 $0.00 c) Committed

Stabilization Arrangements $2,208,696.41 $1,661,942.00 $0.00 $0.00 Reserve for Deferred Maintenance $175,000.00 $175,000.00 $175,000.00 $175,000.00

d) Assigned Reserve for Technology Infrastructure $35,000.00 $35,000.00 $35,000.00 $35,000.00 Reserve for Compensated Absences $262,763.49 $262,763.49 $262,763.49 $262,763.49 TUTA - Catastrophic Sick Leave Bk $20,000.00 $20,000.00 $20,000.00 $20,000.00 CSEA - Professional Growth $3,362.00 $3,362.00 $3,362.00 $3,362.00 Secure Our Schools Grant Match $99,305.00 $0.00 $0.00 $0.00 Reserve Carryover: IMFRP $0.00 $344,127.90 $344,127.90 $344,127.90 2012/13 Trigger Cut $370 per ada $791,788.69 $1,542,347.34 $1,929,317.00 $3,858,634.00 2012/13 Trigger Cut $ 85 per ada Trans $0.00 $0.00 $443,190.00 $886,380.00 Reserve for New Financial System $0.00 $13,912.00 $13,912.00 $13,912.00 Reserve for CFD #2 Debt Svc $0.00 $106,937.00 $106,937.00 $106,937.00

e) Unassigned/UnappropriatedDesignated for Economic Uncertainties $1,242,009.16 $1,230,926.58 $1,207,796.82 $1,215,530.49 Undesignated/Unappropriated $0.00 $0.00 $0.00 $0.00 Negative Shortfall $0.00 $0.00 ($907,029.90) ($4,585,193.57)

Components of Ending Fund Balance

Fund Balance

GENERAL FUND

2011-12 Third Interim Budget Update

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Multiyear Financial Projection

Second Interim2011 - 12

Third Interim2011 - 12

Projected Budget2012 - 13

Projected Budget2013 - 14

d) Assigned Reserve for Technology Infrastructure $35,000.00 $35,000.00 $35,000.00 $35,000.00 Reserve for Compensated Absences $262,763.49 $262,763.49 $262,763.49 $262,763.49 TUTA - Catastrophic Sick Leave Bk $20,000.00 $20,000.00 $20,000.00 $20,000.00 CSEA - Professional Growth $3,362.00 $3,362.00 $3,362.00 $3,362.00 Secure Our Schools Grant Match $99,305.00 $0.00 $0.00 $0.00 Reserve Carryover: IMFRP $0.00 $344,127.90 $344,127.90 $344,127.90 2012/13 Trigger Cut $370 per ada $791,788.69 $1,542,347.34 $1,929,317.00 $3,858,634.00 2012/13 Trigger Cut $ 85 per ada Trans $0.00 $0.00 $443,190.00 $886,380.00 Reserve for New Financial System $0.00 $13,912.00 $13,912.00 $13,912.00 Reserve for CFD #2 Debt Svc $0.00 $106,937.00 $106,937.00 $106,937.00

e) Unassigned/UnappropriatedDesignated for Economic Uncertainties $1,242,009.16 $1,230,926.58 $1,207,796.82 $1,215,530.49 Undesignated/Unappropriated $0.00 $0.00 $0.00 $0.00 Negative Shortfall $0.00 $0.00 ($907,029.90) ($4,585,193.57)

GENERAL FUND

2011-12 Third Interim Budget Update

Shortfall $ (907,030)Rev Limit Incr $ (321,749)Total Remaining$(1,228,779) shortfall

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Identifying the “shortfall”

2012-13 ADA ReductionFrom Budget or

Reserve ShortfallStructural Deficit 338$ 5,214 $1.76 MGov Proposal for Nov 455$ 5,214 $2.37 M

$4.13 M $2.73M $ 1.4M

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Governors Budget ProposalNo Cost Of Living Adjustment

had previously budgeted a COLA in multi-year projections

No transportation allocation loss of $277,779

Plan for $370 per ADA cutreserve $1.9 million in ending fund balance

Plan for $45 per ADA cutreserve $443K in ending fund balance

Categorical flexibility continues

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Governors Budget ProposalK-3 Class Size Reduction must be

reinstated by 2014-15

Weighted Student Formula proposed.Six year implementation, 20% a year with a hold harmless in 2012-13.

May revise out next week.

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The Budget

The District’s budget has multiple funds to account for their financial activity. We spend the majority of time discussing the General Fund as it represents 91% of the activity in this fiscal year.

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FundsOrdinary Operations:General FundCafeteria FundDeferred Maintenance FundSpecial Reserve for

Postemployment Benefits

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FundsCapital Projects:Building Fund (Certificates of Participation)Capital Facilities Fund (Developer Fees)County School Facilities Fund (State

Facilities Construction and Modernization)Special Reserve for Capital OutlayCapital Project Fund for Blended

Component Units (Mello-Roos)Internal Service:Scholarship Fund

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General Fund

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Revenue Limit Deficit Trend

2011-12 19.754%2012-13 21.666%

The deficit continues to grow!

Loss attributed to deficit in 2011-12 is $1,332 per ADA or

$6.9 million!

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Revenue Limit

Source: School Services, 3/2012

In 2011-12, the Deficit caused the District to loose $6.9 million.

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Revenue Limit – Cash Flow

36.45% ( $8.8 million) of the current Revenue Limit entitlement is deferred until after July 1st!!

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Federal Impact AidYear Amount Received2007/08 4,508,268$ 2008/09 4,682,775$ 2009/10 3,274,289$ 2010/11 4,412,785$ 2011/12 3,281,342$

The funding is ever changing. In previous years, the Federal government had the capacity to fund this program at higher levels. Due to the nature of the funding source, FCMAT recommends that the District treat these funds as one-time funds.

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Unrestricted funding has declined

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Categorically Funded ProgramsIASA - Title I Basic Grant 473,433.89$ Sp Ed Basic Grant 755,134.00$ Sp Ed - ARRA IDEA Basic Grant 135,008.24$ Sp Ed - Preschool Non-RIS 39,248.00$ Sp Ed - ARRA Preschool 27,184.92$ Sp Ed - Preschool Local Entitlement 66,623.00$ Sp Ed - ARRA Preschool LE 16,882.52$ Vocational Education - Carl Perkins 15,714.00$ NCLB - Title II Teacher Quality 159,538.27$ NCLB - Title II Enhancing Ed thru Tech 104,755.72$ Title III - Immigrant Education 14,000.00$ Title III - Limited English Proficiency 15,769.00$ DoDEA - Algebraic Thinking 799,850.00$ DoDEA - Virtual Learning Grant 380,500.00$ Lottery - Instructional Materials 97,660.00$

Total 3,101,301.56$

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Categorically Funded ProgramsState funded programs

K-3 Class Size Reduction “Flexed” through 2013-14

Program must then be restored to pre-flex requirements to maintain funding TUSD has assumed program will not be restored Governor has proposed a two-year extension

Tier I & II Cannot “flex”

Tier III “Flexed” through 2014-15

Program must then be restored to pre-flex requirements

Governor Brown has proposed a two-year extension

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Contributions to Restricted ProgramsCommunity Day Program $ 161,609Continuation Education $ 203,936Special Education $3,761,583Special Education – Low Incidence $ 8,910Home-to-School Transportation $ 492,479 Special

Education Transportation $ 592,809$5,221,326

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Expenditures - StaffingStaffing

◦Teachers Class sizes at statutory maximums

K-3 = 28:1 4-6 = 34:1 7-8 = 39:1 (science is 28:1 and for science without labs

34:1) Waiver necessary to increase Not a “given” such a waiver would be approved

9-12 varies per agreement with certificated staff bargaining unit

◦ Instructional Assistants Special education

As required by IEP Suspension Alternative/Community School

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Expenditures - Staffing◦Pupil Support Services

Counseling & Guidance Attendance and Welfare Health Services Library Services Technology Support

Operating at level necessary to provide basic services

◦Site/District Administration Significant reductions

Operating at level necessary to provide basic services

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ExpendituresClassified support staff

Significant reductions in recent years Maintenance Grounds Custodial Warehouse Clerical

Operating at level necessary to provide basic services

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ExpendituresNon-staffing costs

◦Books and Supplies Allocations to schools and departments via formula

Cuts have been significant◦Services and Other Operating Expenses

Consultants Legal Audit Travel & Conference Dues and Memberships Maintenance & Repairs Utilities Telecommunications

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ExpendituresCapital Outlay

◦Minimal allocation◦Equipment replacement plan

Technology – District Plan Significant implementation in recent years

Limited replacement Replacement need will be significant

Some departments are current Upgraded in recent years

Maintenance/Custodial/Grounds – vehicles and equipment Transportation - buses

Others need a plan Food service – kitchen equipment Deferred Maintenance – temporarily suspended.

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2012-13 Fund BalanceEst. Beginning Fund Balance $

5,502,688Revenues $

38,497,952Expenditures $

40,259,894Other Sources/Uses $

0 Ending Fund Balance $

3,740,746

Estimated Shortfall remains at $1.228 mil

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Presented at the Budget Workshop 3/27/12 ConclusionNeed to reduce expenditures by $1.4 million for 2012-13 Budget adoption.

Cost of 1% to all salaries is $299,623

District staff will bring back to the Board a list of items to address the shortfall for Board direction.

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Target f or reductions 1,400,000$

I mprove I ncomeWork to improve attendance - Contract with SI A f or A2AContinue fi ling mandated cost claimsContinue fi ling MAA claimsI ncrease Transportation Fees (?)

Decrease ExpendituresCampus Monitors - 292,593$ Athletics - Discretionary to support program 62,526$ Athletics - Coaching stipends 95,930$ Change custodians and maint to 11 month employees 149,997$ Cost of 1% salary reduction f or all employees * 299,622$ Counseling Technicians 133,651$ Counselors - not backfi ll vacancies 96,749$ Crossing Guard contract with City of Vacaville 18,600$ Dental Benefi t $59,000 / month * 708,000$ Furlough Days * 162,688$ Library Technicians -(6 hrs / 5 days a week) 198,574$

reduce by one day a week 39,715$ LVN's - (6.5 hrs / 5 days a week) Saf ety Concern 267,081$ Overages f or classrooms 74,925$ Site budget reductions - 10% 26,604$ Vision Benefi t * $10,700 / month 128,400$

* These items are negotiable.

Travis Unifi ed School DistrictCost List f or Budget Discussions

f or 2012/ 13 Budget Cycle8-May-12