BoardDocs Agenda Item: 6.01 FY 2010 Midyear Budget Review - Recommendation to approve revenue and expenditure changes reflected in the FY 2010 Midyear Budget Review, as detailed in the agenda item (FS; action scheduled 11/16/09)

		Agenda Item
6.01 FY 2010 Midyear Budget Review - Recommendation to approve revenue and expenditure changes reflected in the FY 2010 Midyear Budget Review, as detailed in the agenda item (FS; action scheduled 11/16/09)
Meeting:	11/05/2009 Regular Meeting No. 7
Category:	6. New Business - 9:30 p.m.
Agenda Type:	Information

Agenda Item Content

Staff Contact: Susan Quinn, chief financial officer, Department of Financial Services

Other Staff Present: Kristen Michael, director, Office of Budget Services

Meeting Category: November 5, 2009 – Regular Meeting No. 7

Subject: FY 2010 Midyear Budget Review

School Board Action Required: Information

Key Points:

The FY 2010 beginning balance decreased $1.3 million due to audit adjustments made after the FY 2009 Final Budget Review, including a revenue reduction of $0.8 million in sales tax revenue based on actual sales tax receipts as well as other audit adjustments of $0.5 million.

The FY 2010 sales tax estimate is reduced by $11.2 million based on the Governor’s midyear budget reductions but is offset by an increase of $8.7 million in other state revenue accounts. In recognition of the state’s revenue shortfall, projections in the FY 2010 Approved Budget were conservative and mitigated the impact of the Governor’s reductions. The Governor’s midyear reduction plan also included an acceleration of spending the State Fiscal Stabilization Funds provided through the federal American Recovery and Reinvestment Act, which will reduce funds available to school divisions in FY 2011. In addition to state revenue adjustments, a net increase of $0.3 million in federal grants and entitlements is recognized, resulting in an overall revenue decrease of $3.5 million in the operating fund.

To address the revenue shortfall, the School Board’s flexibility reserve will be reduced by $3.8 million. As part of the Third Quarter Budget Review, any available funding will be used to restore the flexibility reserve.

Recommendation:

That the School Board approve revenue and expenditure changes reflected in the FY 2010 Midyear Budget Review, as detailed in the agenda item.