Mt. Diablo USD News Update
Where Kids Come First
March 11, 2010
Second Interim Budget Update
The Second Interim Budget must be adopted by a school Board by March 15 and then must be provided to the County Office of Education for its review and approval of assumptions. In general, the purpose of the Second Interim Budget is to:
- Verify the District is on track to meet the Average Daily Attendance (ADA) assumptions that were built into the original budget;
- Ensure that cost assumptions (i.e. fuel, electricity, health benefit, etc.) are on track with actual increases;
- Address any mid-year cuts to funding;
- Begin to incorporate the Governor’s January Budget proposal assumptions into the multiple year projections and demonstrate districts will have a positive ending balance three years out.
This year’s Second Interim Budget is particularly challenging because all districts in the County have been directed to assume the Governor’s Budget proposal does not move forward and we receive a minimum reduction of $350 per pupil. However, there have been estimates that districts could expect cuts up to $780 per pupil.
In March 2010, the Board directed staff to negotiate with our various bargaining units: a cap on health benefits; prorated health benefit contributions; and furlough days. Without these negotiated reductions and with the $350 per pupil reduction, the District will have a negative ending balance at the end of the2012-13 school year of approximately $27 million. With a health benefit cap, proration of health benefit contributions, and furlough days of 3-7-7 (three days this year and seven the next two years) included in the Second Interim, we will have a negative ending balance of approximately $4 million at the end of the 2012-13 school year. Therefore, in order to certify “positive” for the Second Interim Budget we would need to only identify approximately $4 million in additional reductions.
Given the current uncertainty around the State budget, staff recommends that the Board approve the following reductions, and submit the entire reduction list (which can be found at http://esb.mdusd.k12.ca.us/attachments/0556e5d2-c38d-43b8-b058-0dde273df9e0.pdf ) with the Second Interim Budget as possible future reductions that may need to be made if the Governor’s Budget proposal is not implemented.
- Sweep all of the following Tier III flexibility categorical carryover budgets: CAHSEE Intervention, Instructional Materials Realignment, SB 472 Teacher Professional Development, Targeted Instructional Improvement Block funds, one-time Adult Education funds, freeze spending and transfer remaining Tier III flexibility carryover accounts. This will amount to $3,380,598 in one time reductions.
- Sweep all the remaining Tier III flexibility funding for Gifted and Talented Education programs. This will allow us to leave the School Library Improvement Block Grant (SLIBG) funds that each site receives intact. The SLIBG comprises the site discretionary budgets and provide schools with the greatest flexibility in expenditures. Sweeping the GATE funds would amount to an annual savings of $221,272.
- Reduce funding for Speech Contracts by $600,000. This savings has been created because we have hired our own Speech Therapists instead of having to contract out with private providers. This will be an on-going savings.
- Reduce funding for Occupational Therapy contracts by $52,560 due to the decreased need in services.
The savings from the above-identified list will allow the District to have a positive ending fund balance at the end of the 2012-13 school year and certify positive. We will need to closely monitor the State budget process. If the Governor’s request for a June ballot does not come to fruition, we will need to identify other items on the list for future implementation. Also, because we have identified $3,380,598 in one-time reductions in order to create a balanced Second Interim Budget, we will need to identify on-going reductions in the 2013-14 school year to be included in the budget the Board will adopt in June for the 2011-12 school year.
There is a Budget Advisory Committee meeting taking place on Thursday, March 17th at 5pm in the Dent Center Board Room. There are appointed members of this committee, but as far as I know , all district business is open to the public. Great opportunity to hear details of this latest budget update.