BERRYESSA UNIION SCHOOL DISTRICT

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BERRYESSA UNIION SCHOOL DISTRICT

• Superintendents Budget Committee
• August 12, 2009

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The States NEW Budget

• Signed by the Governor July 28th
• Vetoed almost 500 million
• Reduced Healthy Families Program funds
• Reduced funds for the California Department of
  Education
• Reduced funds for several other social service
  programs

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The NEW Budget, contd

• The Budget language was not released publicly for
  over a week after the budget was passed
• Several Budget trailer bills were enacted after
  the budget was passed
• It has taken several weeks to understand and
  analyze the language

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State Budget Highlights

• Proposition 98
• General Fund revenues are down, the minimum
  guarantee dropped from 54.9 billion in February
  to 50.4 billion
• The guarantee is also adjusted another 6 billion
  by accounting processes
• 1.6 billion reduced in unallocated categorical
  programs
• 2.6 billion in 09-10
• 1.7 billion in 10-11 deferrals

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State Budget Highlights, contd

• 2008-09 Prop 98 minimum guarantee reduced by
  taking 1.6 billion in categorical funds that had
  been unallocated
• State Controller had not yet written checks to
  school districts for these funds

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State Budget Highlights contd

• Funds were already earned by Districts
• Since some districts receive more categorical
  than others, the State reduced the revenue limits
  by 1.6 billion in 09-10 to offset this cut and
  to equalize the reductions

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State Budget Highlightscontd

• The categorical funds were then reappropriated
  back to districts in 09-10
• Controversial process and very complicated method
  to prevent suspension of Prop 98

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2009 2010 Budget Reductions

• Revenue Limits reduced 2.6 billion
• Deficit factor now 18.255
• Additional 250 per ADA one-time reduction
• Suspends instructional materials adoption process
  until 2013-2014
• Routine Restricted Maintenance percent is now
  zero. Still required to maintain facilities,
  however.

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09-10 Budget Highlights

• School Year
• Authorized to reduce up to 5 instructional days
  without penalty
• Must be negotiated with employee groups
• Allows reserves for economic uncertainty to be
  reduced by 2 in 09-10, 1 in 10-11, and restored
  by 11-12

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Budget Highlightscontd

• Categorical Flexibility
• Base year for funding is 2007-08
• Program Improvement schools allowed to use
  flexibility options
• Must report expenditures by program
• School Boards must explicitly state what purposes
  categorical funds are being used

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Budget Highlightscontd

• Specifies in law the amount of money to be repaid
  to schools when the States economy improves
• Cash deferrals include
• 1 billion in revenue limit payments from October
  to December 2009
• 1.7 billion deferred from 09-10 to 10-11

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The NEW Budget

• It is very possible to see further budget cuts in
  the future
• Governor has called for a special session to work
  on the state tax system and implement
  recommendations from his tax commission

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Impact to Berryessa

• Revenue Limit reduction from February 2009 budget
  adoption to July 2009 adoption is 2.2 million
• Federal Stimulus funds received in 2008-09 and
  2009-10 are 4.1 million
• Budget shortfall for 2010-11 is 3.6 million
• Budget shortfall for 2011-2012 is 8.3 million

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Whats Next?

• Begin conversation about how to move forward
• Look at BROADER issues, dont get bogged down on
  minutiae
• Schedule future Budget Committee meetings
• Keep focus on our students