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Budget FAQs
General Fund
General Fund Size
Required Reserve
3% Reserve
Reserve Penalties
Actual & Projected Reserves
Budget Reduction Reasons
Bond Money
Personnel Costs
Proposed Budget Cuts
Parcel Tax
| | Q: What is the "General Fund"?
A: The General Fund is our fund for basic operations of our schools. The General Fund is made up of three components: The Unrestricted General Fund, The Special Education Fund and the Categorical/Grants Fund. | |
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| | Q: What is the size of The East Side Union General Fund?
A: East Side’s General Fund is approximately 205 million dollars. The Unrestricted portion of the General Fund accounts for about 127 million dollars, the Special Education portion about 19 million and Categorical/Grants about 59 million. | |
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| | Q: How much money does the State require East Side to keep as a reserve?
A: For the current and next fiscal year, a district the size of East Side must maintain a reserve of at least 3% of Unrestricted General Fund expenses. Our best information is that in the 2005-2006 fiscal year we will be requiring to maintain 3% of our Total General Fund expenses in reserve. | |
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Q: How much is 3% of East Side’s Unrestricted General Fund? How much is 3% of East Side’s Total General Fund?
A: 3% of the Unrestricted General Fund is about 4 million dollars. 3% of Total General Fund equates to about 6 million dollars. | |
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| | Q: What happens if a District does not have the required reserve?
A: For a District that has a reserve that is close to the requirement, the result may be that the District has to present a plan to the County for increasing reserve. In other, more severe, cases, the County may monitor district expenditures. In the most severe cases, the State takes over the district and runs the district. | |
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| | Q: What has been the East Side’s reserve in the past? What is projected for the future?
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| | | 1997-1998 | $ 8,896,065 | | | 1998-1999 | $ 9,926,510 | | | 1999-2000 | $ 9,397.616 | | | 2000-2001 | $ 9,593,495 | | | 2001-2002 | $ 8,122,277 | | | 2002-2003 | $ 10,557,359 | This includes a "one time" payment for the sale of land adjacent to EC (4.1 million) | | 2003-2004 | $ 5,611,686 | Current projections | | 2004-2005 | $ 3,202,122 | Current projections | | 2005-2006 | $ 2,806,536 | Current projections | | These amounts do not include school carryovers. 02-03 includes $1,874,430 in revenue that was actually received by the District in 03-04. The revenue was generated in 02-03 so is included here in the 02-03 numbers to give an accurate picture of ending balances. |
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| | Q: Why is the District proposing over $7,000,000 in budget reductions?
A: Current year deficit spending will be about $5,000,000. Current expense projections for 04 - 05 include no increase for medical insurance premiums. Preliminary cost increases provided by health care providers indicate that the increase will probably be in the $1,000,000 - $1,500,000 range. Our Average Daily Attendance, which generates the majority of our revenue, will be about 100 students less than what was projected in the current budget. This translates into a revenue decrease of slightly over $500,000 for the current year. Currently we have not included any increases for utilities, fuel, supplies etc. | |
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| | A: Can the District use bond money to cover some of its operating expenses?
B: No. The District can use bond money only for those areas specifically approved by the voters. No bond monies can be used for operating expense. | |
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| | Q: How much of the General Fund is spent on personnel? i.e. salaries and benefits.
A: About 84% of East Side’s total General Fund is spent on salaries and benefits. | |
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| | Q: What budget cuts have been recommended for the 2004-2005 school year?
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| | | Administrative Reductions, salary redesignations | 850,000 | | 5 psychologist positions | 400,000 | | 12 librarian positions | 790,000 | | 2 teachers on special assignment | 210,000 | | 24 classified positions | 1,250,000 | | 12 Career Center technicians | 470,000 | | Savings as a result of eliminating credit cards | 50,000 | | Reduce legal expense, reduce recruitment expense | 150,000 | | Redesignate salaries to Measure A | 150,000 | | Increase staffing allocation | 2,500,000 | | Reduce site supplies allocation by 10 | 150,000 | | Reduce District office supplies, travel, etc. 20% | 500,000 | | TOTAL | $ 7,470,000 |
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| | Q: What is a parcel tax and how does it work?
A: A parcel tax is a tax assessed on all real estate parcels in the district. The tax amount is the same for each parcel. A parcel tax must be approved by 2/3 of the voters. The District must use the funds for those items specified in the ballot language. The tax lasts for as long as specified in the ballot language. | |
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