JEFFERSON SCHOOL DISTRICT
2010-2011 Budget
May Revise
 The 2010-11 budget includes the following
assumptions from the Governor’s May
Revise:
 Statutory COLA of -0.39% ($-58,407)
 No change to deficit factor – currently
18.355%
 Continuation of Tier III flexibility for categorical
programs through 2012-13, including
suspension of deferred maintenance match
and instructional materials adoption timelines
May Revise (cont.)
 K-3 CSR funding penalties remain relaxed
through 2011-12
 Budget includes two additional teachers in
2012-13 to plan for CSR returning to previous
penalty levels. We will review/consider
options when we plan for 2012-13 budget
Budget Assumptions
as Previously Presented
 P2 reported ADA of 2433.61 – slight increase over 2nd Interim ADA
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of 2429.95. (~+$18K)
-0.39% COLA (-$58,407) in 10/11 and assumes a 0% COLA in
11/12 & 12/13
No salary or benefit changes through 12/13
Anticipate Lottery revenue of $110 per student unrestricted; $13
Prop 20 (restricted) ~ same lottery revenue as 2009-10
No mandated cost claim revenue anticipated
Step & Column of $200K for certificated and $21K for classified.
Estimated S&C in the out years based on the actual % of increase
at budget (separately estimated for restricted vs. unrestricted)
Retiree benefits maintained as they now exist
Includes Consumer Price Index adjustment to 4xxx (Materials &
Supplies) and 5xxx (Services) object codes of 2.4% for 2011-12
and 2.7% for 2012-13.
Includes 5% increase for utilities for each year
Additional Assumptions
 Decrease of 17% in Title II funding ($5,800) in 2011-12 forward
 Worker’s Compensation rate is estimated
to increase 10% in 2011-12 and is
included in the Multi Year Projection as an
increase to statutory benefits
 Decrease of 0.38% in all categorical
revenues
Previously Approved Budget
Reductions
 Includes budget reductions of:
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$70K – no Deferred Maintenance match
$28K – categorical offset for intervention specialists.
$54K – revised Cafeteria Fund contribution.
$175K – one time additional 1% reduction in Routine
Repair and Maintenance contribution
$203.7K – Offset of Special Ed expenses to ARRA funds
$100K – correction of FICA expense budget
$208K – one time sweep of categorical carryover balances
$67K – reduction to Class Size Reduction contribution
$63K – updated Curriculum coordinator & secretary
positions, Intervention Specialist positions percentage
charged to EIA (Resource 7090) to use EIA carryover for
three years (2010-11 through 2012-13)
Previously Approved Budget
Reductions (cont.)
 $59K – copier contract savings
 $ 4K – reduced budget for custodial uniform rental/cleaning
 $11.5K – estimated savings from Supplemental Early Retirement
plan (three employees retired and accepted SERP)
 $30.2K – revised lottery textbook budget.
 Consumable (workbook) expenses for 2010-11 are estimated
to be $94.8K. We are still ‘saving’ since we will not need to
purchase textbooks (no adoptions due to flexibility
provisions). We re-budgeted the items agreed to be
reinstated (field trips, classroom supply budgets and
technology) as planned – and still have an ending fund
balance of $314,963 in unrestricted lottery money.
 $208K – one time sweep of categorical carryover balances
(completed in 2009-10 which increased 2010-11 start balance)
Additional Budget Reductions/Changes
Included in 2010-11 Budget
 During the budget development process, we
identified other opportunities to utilize
categorical funds as follows:
 $46K – budgeted partial expense of Traina Assistant
Principal position to ARRA Title I (Resource 3011) one
time in 2009-10 (increased Res 0000 beginning
balance in 2010-11)
 $48.6K - revised percentage of position charged to
Title I (Resource 3010) for Curriculum coordinator and
secretary. 2010-11 forward
 $20.0K - changed percentage of assistant principal
positions to charge 10% of costs to EIA (Resource
7090). 2010-11 forward
Additional Budget Reductions/Changes
Included in 2010-11 Budget
 Also during Budget Development, we identified
other reductions appropriate to implement at this
time:
 $30K – reduced budget for water/trash services
(2010-11 forward)
 $25K – reduced budget for electricity/natural gas
 We will continue to review utilities for additional reductions as
our implementation of energy savings items progresses
(2010-11 forward)
 $10K – reduced budget for property & liability
insurance premium. Has historically been budgeted a
bit ‘high’ so will correct that this year (2010-11
forward)
Year-End Changes
 We will confirm the following additional changes
at year-end
 $100K – one time sweep of deferred maintenance
funds to Unrestricted General Fund
 Confirm estimated increase to ending fund balance –
the difference between budgeted expenses vs. actual
expenses. Currently estimate the change to be
$250K - $500K.
 There will also be additional funds in the ending fund
balance on the restricted side
 We will identify and report these amounts in
September when Unaudited Actuals is presented to
the board.
Contributions
 Contributions from the general fund (Resource
0000) are estimated to be $1,253,120 as
follows:
 Special Education
 Transportation
 Routine Repair & Maintenance
 K-3 Class Size Reduction
 Art & Music Block Grant
$707,393
$115,060
$351,000
$ 47,063
$ 32,604
 Note: The contribution for CSR & Art & Music grant are not
included in the total contributions reported in the SACS
budget forms, since these resources are now unrestricted.
District Status
 JESD is positively certified through 2012-13.
 In 2012-13, we are at zero in the unrestricted
ending fund balance (still maintaining the 3%
reserve for economic uncertainty, the board
designated reserve of $500K and our other
designations for lottery, mandated costs and
board project carryover.
 A small adjustment ($569) of the mandated cost
designation was required to not be negative
Deficit Spending
 Currently estimate district deficit spending to be
~$700K annually – net of the ‘gap’ (difference
between budgeted expenses and actual
expenses which we will continue to narrow as
much as possible)
 Should education funding continue with the
current revenue limit reductions, we may need to
make decisions regarding 2013-14 forward we
hoped to avoid
 There remain many unknowns -
Next Steps
 Will provide an update on historical budget
reductions at August board meeting.
 2009-10 will be closed in August, 2010, and
Unaudited Actuals will be presented to the board
in September. This will confirm our ending fund
balance, carryover, etc.
 We will continue to be careful with our spending;
monitor budget issues and report to the board
frequently in 2010-11
 Dana and Mindy will hold budget update
meetings at all sites as well as a public meeting
in late Fall, 2010.