Agenda Item
6.01 FY 2009 Midyear Budget Review - Recommendation to approve revenue and expenditure changes reflected in the FY 2009 Midyear Budget Review as detailed in the agenda item (FS; work session held 10/31/08; action scheduled 11/17/08)
Meeting:11/06/2008 Regular Meeting No. 7
Category:6. New Business - 9:35 p.m.
Agenda Type:Information
Agenda Item Content

6.01 FY 2009 Midyear Budget.MP3
Staff Contact: Susan Quinn, Chief Financial Officer

Meeting Type: November 6, 2008 - Regular Meeting No. 7

SUBJECT: FY 2009 Midyear Budget Review

TYPE: New Business

BACKGROUND:

The FY 2009 beginning balance increased $2.9 million primarily due to a $1.3 million correction of a state calculation error and a $1.3 million underestimation of sales tax. A $5.5 million reduction in the FY 2009 projection of sales tax revenue will be made to reflect worsening economic conditions. In addition, grant adjustments of $0.3 million were made resulting in a net revenue decrease of $2.2 million.

To address the necessary expenditure reduction, the instructional supply set aside will be reduced by $1.4 million. This reduction is in addition to the $1.0 million that was reallocated from the instructional supply set-aside to increase the staffing reserve by 20.0 positions when the FY 2009 budget was approved. In addition, funding of $1.1 million requested for FY 2008 departmental critical needs carryover will be eliminated. At the FY 2008 Final budget Review, departments received 50 percent of their carryover requests and the remaining 50 percent was reserved in a central account. Based on the projected decrease in sales tax revenue, departments will not receive this funding. After including additional adjustments made after the FY 2008 Final Budget Review, the net decrease in expenditures is $2.2 million.

Additional funding for fuel and electricity was requested at the last budget review. Currently, the decrease in fuel prices offsets the additional funding required by the electricity rate increase. We will continue to monitor these accounts and will include any necessary adjustments at the FY 2009 Third-Quarter Budget Review.


RECOMMENDATION:

That the School Board approve revenue and expenditure changes reflected in the FY 2009 Midyear Budget Review as detailed in the agenda item.

Attachment: FY2009Midyear.pdf