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Semelhante a Aisd budget overview for fy2012
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Aisd budget overview for fy2012
- 1. AISD BUDGET OVERVIEW FOR FY2012 Austin Independent School District Meria Carstarphen, Superintendent Nicole Conley-Abram, Chief Financial Officer
- 3. Expenditures are Outpacing Revenue
- 6. AISD Has Paid $1.3Billion to State in Chapter 41 Payments Since 2000/01 Budgeted In FY2011, AISD must send $127.8M back to the State under Recapture. Under recapture, AISD must send approximately 45% of every penny of tax revenue generated back to the State.
- 7. AISD Austerity Planning in FY10 and FY11
- 8. The Impact of State Budget Cuts AISD is preparing a FY2012 preliminary budget assuming a deficit of $94.4 million. State Cuts to Education $2 Billion State Cuts to Education $4 Billion State Cuts to Education $5 Billion Projected Expenditures $842,252,602 $842,252,602 $842,252,602 Projected Revenue $830,870,300 $830,870,300 $830,870,300 Shortfall ($11,382,302) ($11,382,302) ($11,382,302) Projected State Cuts ($39,558,345) ($79,118,408) ($98,898,010) Required Increases ($3,871,304) ($3,871,304) ($3,871,304) Deficit ($54,412,924) ($94,372,014) ($114,151,616)
- 9. It Still Could be Worse: State Methods to Cut AISD is preparing a FY2012 preliminary budget assuming State reductions of $79.1 million. Proportional Cut to all School Districts (Best Case Scenario) No ASATR /Hold Harmless (Target Revenue is capped) Proration $2 Billion $39,558,345 $124,191,179 $73,123,805 $4 Billion $79,118,408 $174,195,628 $152,561,567 $5 Billion $ 98,898,010 $174,193,767 $181,879,037
- 10. The State Funding Crisis Adds $45.1M Adds $102.8M
- 13. Proposed Actions To Cover the Gap-Base/Survey
- 14. Proposed Actions To Cover the Gap-Add’l Reductions
- 15. Proposed Actions To Cover the Gap-Base/Survey Grand Total-$77,849,533
- 16. Dependencies Within the Option Item Savings Increase class size at Elementary by 2 pupils (1:24, k thru 4) (State waiver and legislative change required) $9,810,000 Two day furlough (requires statute change; may need add'l days) $4,200,000 Leave accrual reduction (2 days) (policy change required) $750,000 Total $14,760,000
Notas do Editor
- Local- About 70%of our comes from local revenue primarily made up of tax collections. State As I am sure many of you are aware, When State Comptroller Susan Combs released her Biennial Revenue Estimate for the Texas Legislature in early January, it confirmed speculation that lawmakers will face a deficit of up to $27 billion for the next biennium. In response, both the Texas House and Senate have released their appropriations bills which propose cuts to the foundation school program that range from $9.3 to $9.8 billion and contain the elimination of most State grants.
- Projected expenditures are outpacing revenue by about 2%. The boom periods between FY2006 & 2008 are behind us starting with a $5M fund balance draw down in 2009 which is the first year of the break between revenue and expenditures.
- We have taken some expenditure reductions actions already and they total $27.7M in FY10 & FY11. We have spared local schools from these reductions. But now we are at a point where we have a substantially larger gap and have exhausted many of the obvious reduction. Unfortunately, we are at a point where schools will be affected. And the effects will be painful for everyone.
- I want to start with the assumptions that we are using for the budget gap. As I am sure many of you are aware, When State Comptroller Susan Combs released her Biennial Revenue Estimate for the Texas Legislature in early January, it confirmed speculation that lawmakers will face a sizeable shortfall of up to $27 billion for the next biennium. In response, both the Texas House and Senate have released their appropriations bills which propose cuts to the foundation school program that range from $9.3 to $9.8 billion and contain the elimination of most State grants. While there is speculation on the amount of cuts that we will finally have to live with by the time the legislature ends. Most agree, that we have to plan for the worst. In doing so, we are position ourselves for a $79.1 million State reduction, which assumes a cut to the foundation program of $4billion.
- Even under the assumption of a $4 billion cut, we assume that the State will cut proportionally. Based upon a State reduction of $4 billion, there are three different possible scenarios for State cuts dependent upon possible methodology that the legislature uses to reduce school district budgets; specifically: 1. Under an assumption of a 12% proportional cut for all school Districts, AISD would lose $79.1 million in State funds 2. If the State decided to cap Target Revenue at $4,760 AISD would lose $174.2 million. Under this scenario, not all school districts would lose funding. However, since AISD it is a Chapter 41 district stands to lose significantly more than other school districts. 3. Under “Proration, “ a method that was first drafted in 1993, prior to the invention of Robin Hood, and still remains in the Education Code, AISD would lose $152.6 million. Again, AISD would be disproportionally affected since it is a Chapter 41 district
- On January 24 th the administration recommended an option to the Board to close the anticipated $94M gap. The proposal is predicated on protecting the service level, as much as possible for our students. That is why we still maintained support for full day pre k and support for the additional planning period recognizing the impact it would have on possible graduation rates.
- Again, fund balance is not the perennial solution to our ongoing financial problems. The Preliminary Budget proposes the use of $15 M in fund balance to offset the projected gap. This amount is based on the estimated unassigned fund balance that the District will retain in its reserves at the end of FY2011 beyond the 14% required by Board policy. Board policy requires that the District maintain an unassigned fund balance adequate enough for fiscal cash liquidity purposes (i.e. fiscal reserve) that will provide for sufficient cash flow to minimize the potential of short term tax anticipation borrowing. This amount shall be equal to not less than 14% of the combined budgeted expenditures of the District General Fund. The State also requires school districts to maintain at least two and a half month of operating reserves in fund balance. Additionally, if we do not obtain the legislative or policy approval on the dependent actions, we may be forced to tap into fund balance for a total of $30M. And because we did not fully close the $94M gap, we ultimately may have to use $46.3M in fund balance just to get thru next year. Accessing fund balance beyond this $15 million level could make the district very vulnerable. The District’s fund balance is not a rainy day fund like the state has. Rather it is a cash reserve set aside to fund daily operations and meet cash flow requirements for important needs like payroll.
- Here are some important dates for the community to keep in mind. A more detailed version can be found on page 47 of the primer.