Mountain View Whisman School District Parcel Tax Oversight Committees
Meeting Minutes October 20, 2010
Committee Members: Carmen Bryant, Mike Cobb, Steve Sherman, Jennifer Sema,
David Greene, Staff: Craig Goldman, Shaw Lee Ouyang
Ex Officio: Steve Olson No members of the public were present
Call to Order and Review Agenda
Meeting called to order at 6:34.
Opportunity for Public Comment on Items Not on Agenda
No members of the public were present at the meeting.
Review and Approve Minutes of May 4, 2010 Meeting
Committee reviewed minutes for the March 1, 2010 Parcel Tax Oversight Committee meeting. Craig Goldman corrected spelling of his name on page 4.
Motion to approve minutes for March 4, 2010 meeting as corrected. (Bryant / Serna) Approved 5/0/0.
Election of Officers
The Oversight Committee elected Carmen Bryant as Chairman, Steve Sherman as Vice Chairman, and David Greene as Secretary all by consensus.
State Budget Updates
Shaw Lee Ouyang, new Chief Business Officer for the MVWSD, introduced herself to the Committee. As CBO Ouyang has responsibility for Finance and oversight of Food Service.
Shaw Lee Ouyang provided an update on the recently passed state budget and its impact on the district as well as other key budget issues.
- New state budget defers 33% of payments owed to schools in 2010-20 11 to 2011- 20 12. Districts will spend money, but will not have the cash to reimburse until next year.
- District has seen a 4% increase in Average Daily Attendance. Combined with a 2% decrease in assessed value means the
- “Fair Share Reduction” for the district is expected to be $1 .47M which will be given back I withheld by the state.
- Federal Job bill will provide a one-time source of funds to help offset state budget cuts.
- Health insurance premiums are rising again in 2010-11. Kaiser family coverage is going up over 10%. Unlike many Districts in the county, MVWSD does not have a cap on health care benefits. Value of full family coverage is $26,000.
Review of 2009-2010 Unaudited Actual
Craig Goldman reviewed the 2009-20 10 unaudited actual. Overall, District ended the year is good financial health. Key summary:
- Parcel Tax revenues were slightly over forecast.
- Inflow of Federal funds helped to offset budget issues. Applied to categorical expenses and special education costs.
- State Tier III categorical funding was reduced by $1 M due to state budget cuts. Tier III is now more flexible spending.
- Continue to see costs of Transportation and Special Education exceeding funding. Transportation cost $300K more than funded. Special education exceeded by funding by $3.5M.
- District is setting aside funds to support retirement benefits, per actuarial recommendations.
- District is also setting aside funds for maintenance.
- Some carry-over of site-allocated funds. These funds continue to be available to each school site to support their local programs.
- Net undesignated reserves were —$1.8M.
Goldman also presented a summary of key trends in District budget:
- District has seen a steady rise in employee-related expenses — salaries, benefits. Overall, District offers higher than average benefits, with lower than average salary.
- Food service program improvements again resulted in full recovery of program costs.
- Net Transportation costs have remained fairly constant, even with a 20% cut in reimbursement by the state.
- Net cost of Special Education has also remained fairly constant. This is in part a result of special Federal funding available in 2009-20 10. State currently funds on 40% of the costs of Special Education.
- On an ongoing basis, District builds each year’s budget against the expected revenue for that year, rather than just carrying forward the previous year’s budget.
- Looking forward, District expects to meet its target level of reserves for 20 10- 2011. For 2011-2012 and 2012-2013 District expects to run down some of the reserves due to the end of supplemental Federal funding.
Ouyang and Goldman reviewed unaudited financials for Parcel Tax funded programs. Key variations from plan included:
- K-8 Revenue Limit Deficit Offset. All allocated funds were not needed, based on staff associated with this program.
- Academic At Risk. Did not need to use money that had been set aside for alternative placements.
- Science Camp. Good school fundraising and a smaller number of participants resulted in lower costs.
Review of 2010-2011 First Quarter Actual
Shaw Lee Ouyang reviewed current spending as compared to planned spending of Parcel Tax revenues.
- To date, no money has been received from the County. First funds will be paid by the County in February.
- For the year, District plans to spend $2.874M of Parcel Tax revenues.
- To date, $2.3 82M has been spent or encumbered.
- Additional expenses are expected for “K-8 Reduce Impact of State Budget Cuts” and “1-3 Physical Education.” Some reserve must be retained to cover potential expenses for “Academic at Risk.”
Future Agenda Items
Committee scheduled next meeting for Wednesday, February 9, 2011 at 6:30. Topics to include:
- Review audited actual for 2009-20 10
- Update on 2010-2011 spending, based on First Interim
- Overview of Governor’s Budget Presentation
Set Date of Next Meeting
Next meeting will be Wednesday February 9, 2011 at 6:30 in the Conference Room.
Meeting adjourned at 7:41 PM.