Second Interim Report Fiscal Year 2010/11 Apple Valley Unified School District
Interim Reporting
Report Certifies the Financial Condition of the District
Current Year, 10/11 and two subsequent years; 11/12, 12/13
Two Required Reporting Periods each Fiscal Year
First Interim
District Financials as of October 31st Report due to County December 15th
Second Interim
District Financials as of January 31st Report Due to County March 15th
Interim Reporting
Three Certifications Possible
Positive Certification
District will meet its obligations for the reporting period
Qualified Certification
District may not meet its obligations for the reporting period
09/10 = 160
Negative Certification
District will not meet its obligations for the reporting period
08/09 = 89
08/09 = 19
09/10 = 14
District Certifies and Forwards to County for Review
Apple Valley Unified – Second Interim 10/11
Apple Valley Unified will be Filing a Positive Certification
It is projected using current information that we will meet our financial obligations through June 2013.
Report Generated Using
State Adopted Budget as of October 2010 Governor’s January Budget Proposal School Services Dartboard: COLA projections SBCSS BASics Newsletter: Common Message
County Direction on Budget Assumptions Tax Fail Scenario = (349) per ADA
10/11 Budget Assumptions/Adjustments
First Interim Assumptions
10/11: P-2 ADA Projected at 12,577, Decline of 377
Guaranteed Prior Year due to Decline
11/12: Adjusted down to 12,577 12/13: Adjusted down to 12,577
Second Interim Adjustment
Adjustment to Reflect Unbudgeted Expense Continue to monitor enrollment and ADA trends
10/11 Budget Assumptions/Adjustments
First Interim Assumptions
10/11: -0.39% COLA 17.963% Deficit Factor 11/12: 0.0% COLA 17.963% Deficit Factor 12/13: 1.9% COLA 17.963% Deficit Factor 3.85% Additional Revenue Limit Reduction Eliminated
Second Interim Adjustments
10/11: -0.39% COLA 17.963% Deficit Factor 11/12: 1.67% COLA 19.608% Deficit Factor 12/13: 1.8% COLA 19.608% Deficit Factor Tax Fail Scenario = (349) per ADA Ongoing Reduction
Revenue Limit adjustment in 11/12 and 12/13
10/11 Assumptions
Revenue
Adjusted Revenue Limit based on Current State Budget ARRA Carryover Budgeted, New Jobs Bill Money Budgeted Additional Carryover Budgeted
Expenditures
Staff Reductions due to Change in Staffing Ratio/Declining Enrollment
CSR Grades 1-3 adjusted to 24:1 Secondary staffed at 32:1
Step and Column Increases Health and Welfare Costs
11/12 Assumptions
Revenue
Adjusted Revenue Limit based on Current State Budget Federal ARRA Revenue Removed
Expenditures
No Money included for Negotiations Staff Reductions due to Retirement/Declining Enrollment Step and Column Increases CSR Maintained at 24:1 (Flexibility expires June 2012 or 2014)
12/13 Assumptions
Revenue
Adjusted Revenue Limit based on Current State Budget No Additional Federal Revenue (ARRA, JOBS)
Expenditures
No Money included for Negotiations Staff Reductions due to Loss of Federal Stimulus Money Step and Column Increases CSR Maintained at 24:1 (Flexibility expires June 2012 or 2014)
Second Interim Multi-Year Projections
General Fund Combined 10/11
11/12
12/13
Revenues
98,321,631
87,244,786
87,807,576
Expenditures
104,587,917
95,163,696
96,318,196
Excess(Deficiency)
(6,266,286)
(7,918,910)
(8,510,620)
Beginning Fund Balance
27,897,056
21,630,770
13,711,860
Ending Fund Balance
21,630,770
13,711,860
5,201,240
Reflects Revenue Reductions: Tax Extensions Failing - $4.4 million Declining Enrollment - $1.9 million Federal Stimulus Revenue - $4.7 million
Components of Ending Fund Balance Ending Fund Balance
10/11
11/12
12/13
21,630,770
13,711,860
5,201,240
40,000 125,000 19,340,765 2,125,000 0
40,000 125,000 11,421,859 2,125,000 0
40,000 125,000 2,911,239 2,125,000 0
3,137,638
2,854,911
2,889,546
Components: Revolving Cash Stores Economic Uncertainties Other Designations Undesignated
3% Required Reserve
Highlights and Concerns for Future
Continuing Decline in Enrollment
COLA/Deficit Factor Combination in 11/12 and 12/13
May be adjusted after Governor’s May Revise
Picture did Change Completely at Second Interim
Will Require Future Adjustments if Trend Continues into 11/12
Due to Governor’s January Proposal Tax Extension Ballot Measure
Must Consider Substantial Reductions for Budget Cycle
Current Projected Deficit Spending
11/12 12/13
$7.9 million $8.5 million
AVUSD Second Interim – 2010/11
Thank You!
