PAJARO VALLEY UNIFIED SECOND INTERIM REPORT 20082009

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PAJARO VALLEY UNIFIED SECOND INTERIM REPORT
2008-2009

• Board Date
• March 11, 2009

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CERTIFICATION

• Positive Certification Certify that District
  will be able to meet its financial obligations
  for the current and subsequent two fiscal years.
• Qualified may not meet
• Negative will be unable to meet

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UPDATING THE BUDGET

• Assumptions
• Revenues
• Current year ADA has been adjusted to reflect
  current year projections including changes to
  charters.
• Revenue Changes due to the State Fiscal Crisis
  are reflected in the budget

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Assumptions Continued

• Expenditures
• No changes to Health and Welfare Benefits. This
  would need to be negotiated therefore they are
  reflected at the 12 increase noted in the
  adopted budget
• Staffing adjusted to actual, TBH, benefits
• Indirect cost adjusted for changes in grant
  budgets
• Changes related to the Adopted Fiscal Stability
  plan are not reflected in the budget due to the
  timing of the approval and the need to prepare
  the 2nd Interim report. The plan is included in
  the backup documents.

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Changes in Revenue
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Changes in Expenditures
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08-09 Budget Summary
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Multi year Projection Assumptions

• Revenues
• Revenue Limit cola and deficits are projected
  using the School Services dartboard. 09-10 is
  5.02, deficited at 13.094. 10-11 is .7 cola
  deficited at 13.094, 11-12 has a 2.3 cola
  deficited at 13.094.
• ADA for the next two years is projected to
  decrease due to Ceiba Charter. Fiscal year 09-10
  has a reduction of 75 ADA, 10-11 has a reduction
  of 100 ADA then in 11-12 the ADA flattens out as
  Ceiba will have loaded to the full capacity until
  they expand into high school.
• K-3 Class size reduction, Transportation and
  Special Education, LEP and QEIA are projected to
  have no reductions. All other State grants have
  been reduce by the projected 4.9 reduction in
  09-10, then a growth of .7 cola to state grants
  in 10-11 and 2.3 cola in 11-12. Federal Grants
  have been held stable until otherwise notified.
• Contributions to Transportation, Special Ed and
  Routine Restricted Maintenance have all been
  updated to balance the programs

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Multi Year projection Assump. cont

• Expenditures
• Salary and benefits have been adjusted for Step
  and Column
• Health benefits have been adjusted with a 12
  increase in 09-10, 10 in 10-11 and 10 in 11-12.
• FTE have been adjusted in both fiscal years to
  reflect anticipated changes due to declining ADA

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Three Year Budget Summary
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CURRENT BUDGET Not BALANCED

• We currently do not have a balanced budget for
  the next three years. The reason for this
  situation is due to the States Financial Crisis.
  
• At the March 5, 2009 Board meeting the board
  voted to implement the Fiscal Stability Plan
  included in the back-up. This plan has been put
  into action and will be reflected in the future
  budget presentations.

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WHEN WILL WE KNOW WHATS NEXT

• More info as Federal Stimulus Packet is released
  with direction and actual funding levels for the
  district
• More information after May 19, 2009 election
• May revise (IN JUNE) will hopefully solidify
  revenue projections and focus our work. BUT . . .
• State Budget due by June 30 Unfortunately the
  same date ours must be presented to the board and
  public.

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ON THE TABLE FOR DISCUSSION (District)

• Continue discussing changes to Salaries and
  Benefits (total compensation) and other options
  with the bargaining units to reduce some of the
  staff reductions.
• COLA could fluctuate due to changes in the
  economy. Increase in COLA will likely mean
  increase in deficit.
• State budget very much still in flux

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Health Benefits Cost History

• 09-10 12 Estimated
• 08-09 12
• 07-08 14
• 06-07 8
• 05-06 9
• 04-05 5
• 03-04 16
• 02-03 6 and 7.25
• 01-02 17.76 and 20

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Retiree Health Benefit Cost History

• 09-10 12 estimated
• 08-09 12
• 07-08 14
• 06-07 8
• 05-06 9
• 04-05 5
• 03-04 16
• 02-03 6 and 7.25
• 01-02 17.76 and 20

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Charter School Fund
The district has 6 Charter Schools Alianza
Charter School, Academic Vocational Charter,
Ceiba College Preparatory, Linscott Charter,
Pacific Coast Charter, and Watsonville Charter
School of the Arts.
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Adult Education Fund
The district Adult Education program services
approximately 10,000 adults each year.
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Child Development Fund
Child Development includes Migrant Head Start and
Preschools. Migrant Head Start receives Federal
funding and Preschools receive State funding.
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Food Service Fund
Food Service serves almost 2 million breakfast
and lunch meals each year.
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Deferred Maintenance Fund
Deferred Maintenance Fund pays for large projects
at school sites. Some of those projects are
painting, roofing, and installing intercoms.
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General Obligation Bond Fund
The General Obligation Bond Fund approved
projects under the stipulations of the Bond.
Projects to be completed are the E.A. Hall Gym
and some work on Watsonville High School.
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Capital Facilities Fund
Capital Facilities Fund pays the rent for
portables at sites and matching funds for current
projects.
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State School Building Fund
Projects under construction with State Building
funds currently are Aptos High and a small
balance at Watsonville High
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Self Insurance Fund
The Self Insurance Fund collects money from the
other funds to cover the cost of insuring the
employees of the district. Medical, Dental,
Vision, Life Insurance and Workers Compensation
are covered by the Self Insurance Fund.
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Retiree Benefits Fund
The Retiree Benefits Fund pays Health and Welfare
benefits for our qualified retirees. Money is
collected from the other funds to cover these
expenses on a pay as you go basis. In an effort
to fund future years a trust was set up 2 years
ago but we have not added to the trust. The
funds cannot be withdrawn for other purposes.
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Scholarship Trust Fund
The Scholarship Trust Fund pays for scholarships
based on restrictions of each scholarship.
Scholarships are paid from the interest earned on
the trusts.
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RECOMMENDATION

• Approve the Second Interim Report understanding
  it is not a positive report due to the States
  Financial Crisis.
• District will be required to do a 3rd Interim
  report in May 2009
• Submit Board approved Fiscal Stability Plan to
  the County Office of Education for approval and
  implement changes to be reflected in future
  budget projections.