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Dr' Mary M' Bull, Superintendent

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Without the $3.9 m. in anticipated property revenue from close of escrow ... time income of $4 million at close of escrow of which some will need to be spent ... – PowerPoint PPT presentation

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Title: Dr' Mary M' Bull, Superintendent


1
Vallejo 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!
2
Table 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

3
District 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.

4
Outcomes 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)

5
Overview of VCUSD Budget
5
6
6
7
7
8
2007-08Budget Presentation
  • Part 1
  • 2007-08 Budget

9
2007-08 BudgetUnrestricted General Fund
Includes 3.9 million expected property payment
(VV, FT McKinley)
10
2007-08 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
11
2007-08 Current Budget Status
Without the 3.9 m. in anticipated property
revenue from close of escrow
12
Current 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
13
2007-08Budget Presentation
  • Part 2
  • Factors that Could Affect the 2007-08 Budget

14
Factors 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

15
State 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
16
2. 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

17
3. 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)

18
2007-08Budget Presentation
  • Part 3
  • Status of the State Loan

19
60 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

20
2007-08Budget Presentation
  • Part 4
  • Progress on Fiscal Recovery

21
Three 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
22


With anticipated property coe included With
anticipated property coe excluded
23
Unrestricted General Fund History 2003-2008 (in
Millions)
Deficits Covered By State Loan
24
Additional 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

25
State 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

26
Improved Employee Compensation
  • Annual Step and Class Increases
  • Negotiated increases in salary schedules

27
Enrollment 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

28
Attendance 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
29

Student Enrollment 2002-2008

Based on October CBEDS official enrollment count
30
Operating 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

31
VCUSD 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.

32
2007-08Budget Presentation
  • Part 5
  • Next Steps for VCUSD Budget

33
Next 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

34
2008-09 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
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