centinela valley union high school district is facing a severe budget shortfall resulting from the...
TRANSCRIPT
Centinela Valley Union High School District is facing a severe budget shortfall resulting from the State budget crisis and a
number of other circumstances. This “perfect storm” of circumstances will require swift and extensive action in order
to prevent a return to the financial uncertainty the District faced just a few years ago.
California/CVUHSD Education Funding Crisis
The Perfect Storm
TOP FOUR LIST
Continued Increases in State Deficit Factor
Rollback of Meals for Needy Money
Declining Enrollment
Uncertainty of Proposed Ballot Measure
California/CVUHSD Education Funding Crisis
The Deficit Factor
Although the Governor’s Office announced that there was no reduction to K12 budgets, in reality, the State’s application of an ever larger deficit factor
does result in a decrease in available funding.
In essence, the State acknowledges that they should pay Districts a certain amount per student in attendance (ADA) . . .
but then admits that they have only enough cash on hand to pay a reduced amount.
The difference (in percentage points) is the deficit factor. For the 2011-2012 school year, the State will apply a 19.608% deficit factor . . .
so we get only 80 cents on the dollar . . . $5981 instead of $7440.
CVUHSD will lose almost $1459 per ADA.
Assuming no other issues, such as declining enrollment, the deficit factor alone translates to a loss of almost $8.8 million.
California/CVUHSD Education Funding Crisis
The Deficit Factor
$8,800,000
19.608%
17.963%18.355%
7.844%
0.000%
0.000%
5.000%
10.000%
15.000%
20.000%
25.000%
2007-08 2008-09 2009-10 2010-11 2011-12
California/CVUHSD Education Funding Crisis
Meals for Needy MoneyWith the passage of California Assembly Bill 851, CVUHSD took a severe financial
hit. This bill established formulas that tie the meals for needy money to the funding and enrollment in the 2007-2008 school year. These formulas essentially
erase all financial gains related to increases in meal participation since 2007.
$4,864,000
1,406,611
1,405,4281,316,591
882,645641,635
$0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
$8,000,000
2007-08 2008-09 2009-10 2010-11 2011-12
Meals for Needy $ w/ Deficit Factor
Meals for Needy $
Annual Meals
$4,864,000
California/CVUHSD Education Funding Crisis
Declining Enrollment
$1,663,000
6453
6653
6787
7333
7648
6032
63106715
6769
6921
5000
5500
6000
6500
7000
7500
8000
2007-08 2008-09 2009-10 2010-11 2011-12
Enrollment
ADA
California/CVUHSD Education Funding Crisis
Ballot Measure
The Governor’s proposed budget, as it looks now, is contingent upon voters approving a ballot measure that would extend temporary tax increases for five more years. In order to avoid more cuts, the Legislature must place the measure on the ballot with a 2/3 vote, and the voting public must approve the tax increase.If the measure does not get on the ballot, or if the voters do not approve the measure, there will be an additional cut of $330 per ADA.
$1,990,000
California/CVUHSD Education Funding Crisis
Total Revenue Reductions2011-2012
Deficit Factor, $8,800,000
Meals for Needy, $4,864,000
Ballot Measure, $1,990,000
Declining Enrollment, $1,663,000
$0
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
$16,000,000
$18,000,000
$20,000,000
Reduced Revenue
$17,317,000
California/CVUHSD Education Funding Crisis
Total Expenses (in Millions)2011-2012
Capital Expenditures, $0.1
Other, $1.5
Services, $5.8
Supplies, $2.2
Labor, $37.5
Revenue Reductions, $17.3
58%
27%
California/CVUHSD Education Funding Crisis
Multi-Year Ending Fund Balance Projection Scenarios
-$1,463,000
-$11,538,000
$3,537,000
-$733,000
$4,537,000
$1,267,000
$5,537,000
$3,267,000
$7,716,000
-$15,000,000
-$10,000,000
-$5,000,000
$0
$5,000,000
$10,000,000
2010-11 2011-12 2012-13
No Budget Action
$5 Million Annual Reduction
$6 Million Annual Reduction
$7 Million Annual Reduction
3% Reserve