Lafayette School District Adopted Budget

1
Lafayette School DistrictAdopted Budget

• Fiscal Year
• 2007-08
• Presented by Lenee Cadotte
• Adopted June 19, 2007

2
Overview of 2007-08 Budget

• General Fund (revised)
• Deferred Maintenance
• SR Non-Capital Outlay
• SR Post-emplymnt Benefits
• Bond Fund
• Capital Facilities
• SR Capital Outlay
• Self-Insurance Fund
• Total 2007-08 Budget

• 29,516,349
• 1,852,000
• 3,554,812
• 14,500
• 400,000
• 611,000
• 4,255,562
• 82,000
• 40,286,223

3
Breakdown of Budget by Fund
4
General Fund Budget, 2007-08Beginning Balance,
Revenues Transfers In
5
General Fund Budget, 2007-08Beginning Balance,
Revenues Transfers In
6
General Fund Budget, 2007-08Expenditures
Transfers Out
7
General Fund Budget, 2007-08Expenditures
Transfers Out
8
General Fund Budget, 2007-08Fund Balance
Reserves
9
General Fund Budget, 2007-08Fund Balance
Reserves
10
General Fund Budget, 2007-08Unrestricted Budget
11
General Fund Budget, 2007-08Unrestricted Budget
12
General Fund Budget, 2007-08Unrestricted Budget
13
General Fund Budget, 2007-08Restricted Budget
14
General Fund Budget, 2007-08Restricted Budget
15
General Fund Budget, 2007-08Restricted Budget
16
Revenue Sources, 2007-08 Budget
Revenue Limit Income (65.8) 17,056,241

• 2007-08 Proj Enrollment 3,165 3070 ADA
• 2006-07 ADA 3082
• Funded ADA for 2006-07 is 3,168 ADA (prior year)
• Funded ADA in 2007-08 3082 and is 86 lower than
  2006-07 Funded ADA of 3168.

• COLA 4.53
• COLA 241
• Equalization no new funds
• Revenue Limit5524.37 fully funded

17
Revenue Sources, 2007-08 Budget
Revenue Limit Income (65.8) 17,056,241

• 2006-07 Revenue Limit Income 5283.37
• COLA at 4.53 241.00
• 2007-08 R/L per ADA 5524.37
• Less RL/ADA decline _at_ 86 or (2.7) (154.14)
• 2007-08 Estimated R/L lt86 ADA 5370.23
• 2006-07 Revenue Limit per ADA 5283.37
• R/L net increase over 2006-07 86.86
• R/L net increase over 2006-07 (vs.
  4.53) 1.6-1.7

18
Revenue Sources, 2007-08 Budget

• Federal Revenues (3.5) 898,560
• Title I, Part A, Low Income Neglected
• Title II, Part A, Teacher Principal Training
  Recruiting Fund
• Title III, Immigrant Education Program
• Title IV, Drug Free Schools
• Title V, Improving Americas School Act (IASA)
• PL101-476, Special Education Local Assistance
• PL101-476, Special Education Staff Development

19
Revenue Sources, 2007-08 Budget

• Other State Revenues
• Staff Development Buyback
• Lottery
• State Instructional Materials
• Targeted Instruction Improvement Block Grant
  (Supplemental Grant)
• Tobacco Use Prevention
• Other grants

• State Revenues (12.0)
• Total 3,104,746
• GATE
• School Library Improvement Program (SLIP)
• English Language Learners (ELL)
• Class Size Reduction
• Peer Assistance Review (PAR)

20
Revenue Sources, 2007-08 Budget

• Parcel Tax - (4.9) 1,278,267
• Sunsets in June 2008
• Funds small class sizes in Grades 4-8
• Supports Core Academic Programs
• Improves Science and writing instruction
• Helps attract and retain highly qualified staff
• Allows for up-to-date instructional materials and
  technology support in the classroom

21
Revenue Sources, 2007-08 Budget

• Local Revenues - (6.2) 1,598,056
• Lease Rental Income (164,000)
• Interest Income (210,000)
• Outdoor Education (204,000)
• Parents Club for Aides, Interns, Other (467,000)
  
• LASF Support for Programs (364,000)
• BTSA, After School Sports (64,000)
• PTA/PFC for Apple Leases (66,000)
• Local Redevelopment Income (59,056)

22
Revenue Sources, 2007-08 Budget

• Special Ed Apportionment, Inter-District Funds,
  Inter-fund Transfer In(7.7)- 1,990,113
• Special Education State Apportionment (1.643M)
• Inter-district funds for Special Day Class and
  Extended Year (6K)
• From Special Reserve Fund for Technology,
  Instructional Aides, Facilities Clerk, Transfer
  in for Deferred Maintenance Contribution (341K)

23
Expenditures, 2007-08 Budget

• Certificated Salaries (13.9M) Step column
  costs
• Classified Salaries (4.3M) Step column
  costs
• Additional Staff, if any
• Employee Benefits (5.2M) STRS, PERS,
  FICA/Medicare, HW, Unemployment Insurance,
  Workers Compensation, Retiree Benefits, PERS
  Reduction
• Salary Benefits 88.6 of Total Expenditures
• Supplies (805K) Instructional, office,
  maintenance, grounds, reprographics,
  non-capitalized equipment that cost less than
  5000

24
Expenditures, 2007-08 Budget

• Certificated Staffing
• As presented in May.
• Budget revisions will be submitted in August or
  September to reflect any staffing changes.
• Classified Staffing
• No changes as presented in May.
• Budget revisions will be submitted in August or
  September to reflect any staffing changes.

25
Expenditures, 2007-08 Budget

• Operating Expenses (1.9M) Rents, Leases,
  Repair, Contract Services, Maintenance
  Agreements, Utilities, Property Liability
  Insurance, Travel, Membership Dues, Alarm
  Service, Communications, Legal, Outdoor Ed, NPA
  NPS Contracts
• Capital Outlay (67.6K) Purchase of Equipment
  and/or Lease of Equipment funded by parent clubs
• Transfers Out (228.5K) Special Ed Excess
  Transportation Costs County Office of Education
  (COE), Inter-district Services Interfund
  Transfer to Deferred Maintenance (145K)

26
Reserves Fund Balances 2007-08 Budget

• Ending Fund Balance 3,142,841
• For Economic Uncertainty (3) - 790,000
• Revolving Cash Fund - 10,000
• Restricted Reserves for Categorical Programs
• 572,163 (State Instructional Materials)
• 566,904 (Various Block Grants reserves)
• Designated Reserves for Gr. 4/5 Class Size
• 32,000
• Undesignated Reserves - 1,171,774

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Criteria Standards Review2007-08 Budget

• All school districts are required to review and
  approve the budget using the States Criteria and
  Standards (CS)
• School District Certification (Form CB) provides
  the Criteria and Standards Review Summary (ivory
  pages)
• CS Review has three (3) sections

28
Criteria Standards Review2007-08 Budget

• Criteria and Standards Review Summary is now part
  of the School District Certification (Form CB)
  signed by the Clerk/Secretary of the Governing
  Board (ivory page 1)
• Directs immediate attention to standards the
  District HAS MET or NOT MET
• Highlights supplemental information that require
  additional explanation
• Points to other fiscal indicators that may
  compromise a districts fiscal solvency and going
  concern status in the immediate future

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Criteria Standards Review2007-08 Budget

• Three (3) sections of the Criteria and Standards
  Review are
• Criteria and Standards (lilac page 1-12)
• Supplemental Information (lilac page 13-22)
• Additional Fiscal Indicators (lilac page 23)

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Criteria Standards Review2007-08 Budget

• Section 1 - Criteria and Standards review these
  (lilac pages 1-12)
• Enrollment estimates, ADA Variances, and Revenue
  Limit Calculations (more in-depth review)
• Salaries and Benefits (trend analysis
  projections)
• Other Revenues and Expenditures (especially
  projections)
• Facilities Maintenance
• Deficit Spending, Fund Balances, Reserves
• Does District meet the standards? Are
  calculations and projections reasonable? If NOT,
  explanation is required.

31
Criteria Standards Review2007-08 Budget

• Section 2 Supplemental Information asks for
  information and explanations on (lilac pages
  13-22)
• Contingent Liabilities (like program audits and
  litigation)
• Use of One-time revenues for Ongoing Expenses gt
  1 of General Fund expenditures Use of Ongoing
  revenues for large non-recurring Expenses (I.e.
  election expense, consultants, settlements)
• Contingent Revenues
• Does District have projected revenues in next 2
  years that are contingent on reauthorization like
  parcel tax? If YES, how will revenues be
  replaced or expenditures reduced?

32
Criteria Standards Review2007-08 Budget

• Section 2 Supplemental Information asks for
  information and explanations on (continued)
  (lilac pages 13-22)
• Long-term commitments (I.e. Capital leases,
  Bonds, Post-employment benefits, compensated
  absences) page 16 lilac sheets
• Unfunded Liabilities like post-employment
  benefits What how funded? Up to what age or
  forever?
• Status of Labor Agreements
• In-depth cost analysis of salaries and benefits
  for negotiations
• 2007-08 Budget DOES NOT include costs of future
  settlement with bargaining units

33
Criteria Standards Review2007-08 Budget

• Section 3 Additional Fiscal Indicators (lilac
  page 23)
• Cash Flow Projections positive or negative
  balances?
• Is enrollment declining?
• Does district provide uncapped health benefits
  for current or retired employees?
• Is the districts financial system independent of
  the county office system?
• Has district entered into bargaining agreements
  whose costs will exceed projected state COLA?

34
Budget Information Highlights 2007-08 Budget

• 2007-08 Budget has a structural deficit of about
  447,000
• Increased support from LASF has helped reduce the
  deficit since the preliminary budget in April
• Deficit primarily due to loss of 86 funded ADA
  estimated at 475,000 in revenue limit loss
• Adjusting staff with enrollment decline has been
  and continues to be a challenge
• District has tried to trim staff whenever
  possible and has done so through attrition.

35
Budget Information Highlights 2007-08 Budget

• Multi-year projections based on a set of
  assumptions show the district will meet its
  financial obligations through 2009-2010.
• Projections assume that, at a minimum, the parcel
  tax will be renewed starting 2008-09.
• COE will most likely require projections without
  parcel tax revenues and a district plan outlining
  how the revenue loss will be offset.

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District Challenges and Recommendation 2007-08
Budget

• District Challenges
• Resolving the structural deficit (447K)
• Continuing enrollment decline
• Sunset of Parcel tax (1.27M) in June 2008
• It is recommended that
• The Board and administration keep above
  challenges in the forefront and stay committed in
  insuring the District remains fiscally sound and
  financially solvent especially while planning for
  parcel tax renewal.
• The Board adopt the 2007-08 Budget.

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All Other Funds 2007-08 Adopted Budget
38
Deferred Maintenance Fund (14)2007-08

• Requires a 5-year plan
• District deposits funds into the account
• State matches funds up to 1/2 of 1 of
  expenditures net of capital outlay
• Funds transferred are from Specl Reserve for
  Capital Outlay

• Beg Balance 1,491,470
• State Revenue 135,000
• Interest Income 80,530
• Inter-fnd Trnsfr 145,000
• Beg Bal Rev 1,852,000
• Expenditures
• Services 35,300
• Capital Outlay 6,700
• Reserves 1,810,000
• End Bal Exp 1,852,000

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Special Reserve Fund, Non-Capital Outlay
(17)2007-08

• Set-up by Board Resolution
• Interest income is transferred to general fund
  spent on board approved items
• Funds employee vacation liability

• Beg Balance 3,000,000
• Vacation Liab Bal 137,112
• Meher Prepd Lse 50,000
• Interest to GF 179,500
• Interest Income 188,200
• Beg Bal Rev 3,554,812
• Expenditures
• Transfer to GF 50,000 Reserves
  3,504,812
• End Bal Exp 3,554,812

40
Special Reserve Fund, Post-employment Benefits
(20)2007-08

• Set-up in March 2005 to replace the Retiree
  Benefit Fund 71
• Because the District does not have a formal trust
  with its employees for retiree benefits only Fund
  20 is allowable
• Contribution to the account is optional as
  benefits are paid from General Fund

• Beg Balance 13,842
• Interest Income 658
• Beg Balance Rev 14,500
• Fund Balance 14,500 End Bal
  Exp 14,500

41
Special Reserve Fund, Post-employment Benefits
(21)2007-08

• Funds transferred from Fund 25 following
  completion of fee justification study
• Funds will be used to upgrade site/fields,
  technology, network telecommunication
  infrastructure

• Beg Balance 400,000
• Interest Income 0
• Beg Balance Rev 400,000
• Operating Exp 50,000
• Capital Outlay 100,000
• Fund Balance 250,000
• End Bal Exp 400,000

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Capital Facilities Fund (25)2007-08

• Justification study was completed in 2006-07
• Per results of the study, Governing Board adopted
  Resolution 13-0607 to terminate the collection of
  statutory school fees
• Remaining funds will be used for site/field
  improvement, upgrade of technology, network, and
  telecommunication infrastructure

• Beg Balance 575,847
• Interest Income 35,153
• Developer Fees -
• Beg Bal Rev 611,000
• Expenditures
• Services 86,000
• Capital Outlay 50,000
• Ending Fund Bal 475,000
• End Bal Exp 611,000

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Special Reserve Fund, Capital Outlay (40)2007-08

• Set-up by Board Resolution
• Revenue sources
• Sale of Land Property
• Gym Field User Fees
• Interest Income
• Funds are used for capital improvements,
  equipment, facilities clerical support,
  technology needs

• Beg Balance 3,988,013
• Gym Field Use 81,000
• Interest Other 186,549
• Beg Bal Rev 4,255,562
• Expenditures
• Services 46,176
• Capital Outlay 72,176
• Inter-fund Trnsfr 291,000
• Reserves 3,892,386
• End Bal Exp 4,255,562

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Self-Insurance Fund (67)2007-08

• Sets aside funds for self-insurance activities
• Workers comp, insurance deductibles related
  costs
• Source of revenues is interest income earned

• Beg Balance 78,728
• Interest Income 3,272
• Beg Bal Rev 82,000
• Expenditures
• Reserves 82,000
• End Bal Exp 82,000

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Next Steps Unaudited Actuals

• Yearend closing of fiscal year 2006-07 in July
  through August
• For Board approval in September
• Unaudited Actuals for 2006-07
• Budget revisions to post actual balances,
  carryover, and deferred income
• Auditors return to complete audit process

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Next Steps Budget Revisions2007-08 Budget

• Adjust the budget after the State adopts a budget
  in July, August, September (???)
• Revise the budget for changes in assumptions like
  staffing and actual health benefit premium rates
  when finalized
• Incorporate changes in revenues as these occur

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Question Answer
48
Lafayette School DistrictAdopted Budget

• Fiscal Year
• 2007-08

The End