Title: Dr' Mary M' Bull, Superintendent
1Vallejo City Unified School District
2007-08 Budget Presentation
November 14, 2007
Dr. Mary M. Bull, Superintendent Dr. Richard
J. Damelio, State Administrator/State
Trustee Making Vallejos Schools Better Every
Day!
2Table of Contents
- District Goals Slide 3
- Outcomes for Budget Review Presentation Slide 4
- Overview of VCUSD Budgets Slide 5
- Part 1 2007-08 Budget Slide 8
- Part 2 Factors that could affect the 2007-08
- Budget Slide 13
- Part 3 Status of State Loan
Slide 18 - Part 4 Progress on Fiscal Recovery Slide 20
- Part 5 Next Steps for VCUSD Budget Slide 32
3District Goals
- The School District and each school will increase
annually the number of students who achieve at
the proficient level or higher on the STAR
standards testing program. - 2) The School District and each school will show
an increase in student achievement of each
identified underperforming ethnic group that
represents 5 or more of the student enrollment. - 3) Each school will improve its climate and
student discipline so that every student and
staff member feels safe, every teacher can teach
and every student can learn. - We will develop a long-term solution to the
Districts fiscal crisis so that we can
concentrate on the business of educating
students, meeting expectations the State has for
Vallejo, and returning the District to local
control. - 5) We will build the capacity of the School
District to sustain the achievement, fiscal and
school climate improvements when local control is
regained.
4Outcomes for Tonights Budget Presentation
- To provide an overview of the 2007-08 Budget
including
- Changes since the adoption of the Budget in June
- The current Budget Reserve and Unallocated Ending
Balance - Factors that may affect the 2007-08 Budget
- To provide information on the status of the
Audit Findings for 2003-04, 2004-05 and 2005-06 - To provide updated information on the use of the
State Loan - To review the Districts progress on fiscal
recovery (Goal 4)
5Overview of VCUSD Budget
5
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82007-08Budget Presentation
92007-08 BudgetUnrestricted General Fund
Includes 3.9 million expected property payment
(VV, FT McKinley)
102007-08 Operating Budget Comparison Adopted vs.
Current Budget
Beginning Balance includes 3.9 m. in
anticipated income from (Valle Vista, Federal
Terrace, and McKinley sites) Beginning Balance
excludes the anticipated 3.9 m. in anticipated
income until close of escrow which is expected
12/2007
10
112007-08 Current Budget Status
Without the 3.9 m. in anticipated property
revenue from close of escrow
12Current Budget Reserve and Unallocated Ending
Balance
Total 6.9 million
- 3 Reserve for Economic Uncertainties
- 4.5 million
- Unallocated Ending Fund Balance
- 2.4 million
Preliminary Excludes 3.9 m. in anticipated
one time revenues pending close of escrow
132007-08Budget Presentation
- Part 2
- Factors that Could Affect the 2007-08 Budget
14Factors that Could Affectthe 2007-08 Budget
- Challenges in the Current State Budget
- Use of Surplus Property to Generate Revenues
- Resolution of Audit Findings
- Continued Review of Current Year Revenues and
Expenditures
15State Budget
- 2007-08 Settled but
-
- Governor announced last week 10 reduction in
State agency budgets - CA has the highest rate of foreclosures
Revenues are below projections used as the basis
for the State Budget
162. Use of Surplus Property
- Current Budget does not include first payment
from anticipated close of escrow on development
agreement with Brooks Street which covers - Valle Vista (front and back parcels)
- McKinley Site
- Portion of Federal Terrace Site
- Anticipated one time income of 4 million at
close of escrow of which some will need to be
spent to relocate the Transportation and
Maintenance and Operations Departments
173. Potential Adjustments Due to Audit Findings
- 2003-04
- Potential liability of 8.7M (reduced from total
liability of approx. 53.5M) - 2004-05
- Potential liability of 8.4M (reduced from total
liability of approx. 54.9M) - 2005-06
- Potential liability of 3.9M (Audit Report just
released)
182007-08Budget Presentation
- Part 3
- Status of the State Loan
1960 million State Loan
- Drawn Down and Used
- 2004-06
- ---------------------
- Amount 50 million
- Use to cover deficits
- Annual Repayment Cost
- 2.9 million
- Source of Repayment
- VCUSD State Loan Repayment Fund supported
by property sales through 2011
- Drawn Down
- June 2007
- ----------------
- Amount 10 million
- Use resolution of audit findings
(lockbox) - Annual Cost
- 376,000 (median)
- Source of Repayment
- Short term interest earned and loan
principal - Long term source to be determined
202007-08Budget Presentation
- Part 4
- Progress on Fiscal Recovery
21Three Year Budget Goals
Year 1 Reduce deficit by 10-12 million from
2004-05 to 2005-06 budget
Achieved Year 2 Balance the District
budget by the adoption of 2006-07 budget
Achieved Year 3 To establish by the adoption
of the 2007-08 budget the required 3
Reserve for Economic Uncertainties (4.5
million) Achieved
22With anticipated property coe included With
anticipated property coe excluded
23Unrestricted General Fund History 2003-2008 (in
Millions)
Deficits Covered By State Loan
24Additional Factors that May Affect Future Budgets
- Revenue Limit changes in State Budget
- Desire to provide improved employee
compensation - Changes in enrollment/ADA
- Use of One Time Revenue
- Changes in Contributions/Encroachments
- Audit Findings
25State Funding of Revenue Limits and Cost of Living
- One percent change in Revenue Limit
- /- 884,000
- Timeline for 2008-09 State Budget
- January 2008 Governor announces proposed budget
- May 2008 Governors revised budget
- Summer 2008 Legislature passes and Governor
acts on budget
26Improved Employee Compensation
- Annual Step and Class Increases
- Negotiated increases in salary schedules
27Enrollment and Attendance
- Review of 2007-08 Enrollment
- Impact on 2008-09 and Future Budgets
- Attendance counts
- Decrease of 200 from same time last year
- Evidence of slowing of decline (educational
alternatives, economy, housing market)
- Increase/decrease of 100 students /-570,000
- 1 change in attendance rate (ADA) /-900,000
28Attendance Counts!
- Attendance Rate
- 2003-04 91
- 2004-05 93.89
- 2005-06 92.89
- 2006-07 93.02
- 2007-08 tba
- Impact on the Budget
- Base Year
- 2.7 m.
- 1.8 m.
- 1.8 m.
- Unknown
- Cumulative Impact 6.3 m.
Impact is based on change in attendance rate
from 2003-04
29Student Enrollment 2002-2008
Based on October CBEDS official enrollment count
30Operating Deficits
- Operating Deficitwhen annual expenditures exceed
annual revenues - VCUSD Operating Deficits
- 2003-04 31.4 million
- 2004-05 16.9 million
- 2005-06 4.6 million
- 2006-07 0
- 2007-08 1.5 m. estimated
31VCUSD Audit Update
- Reflects the October 2, 2007 Education Audit
Appeal Panel Decision which reduced the
Districts outstanding obligation on Finding
04-55 from 2.6M to 0.6M. - State Controllers Office began the 2006-07 Audit
effective November 1, 2007.
322007-08Budget Presentation
- Part 5
- Next Steps for VCUSD Budget
33Next Steps
- Continue to refine 2007-08 Budget to reduce
operating deficit and in light of the State
Budget challenges - Develop and submit the First Interim Report to
SCOE and CDE (due 12/07 to be reviewed by Board
in 1/08) - Begin to develop the 2008-09 Budget
342008-09 Budget Goals
- Maintain balanced budget with required 3 Reserve
for Economic Uncertainties - Make budget adjustments necessary for changes in
State revenue and increased costs - Reduce operating deficit
35- To provide an overview of the 2007-08 Budget
including
- Changes since the adoption of the Budget in June
- The current Budget Reserve and Unallocated Ending
Balance - Factors that may affect the 2007-08 Budget
- To provide information on the status of the
Audit Findings for 2003-04, 2004-05 and 2005-06 - To provide updated information on the use of the
State Loan - To review the Districts progress on fiscal
recovery (Goal 4)
35