Committee Members: Carmen Bryant, Greg Fowler, David Greene
Mike Cobb, Steve Sherman
Staff: Craig Goldman, Shaw Lee Ouyang
Ex Officio: Steve Olson
Public: Mark Zavislak
Call to Order and Review Agenda
Meeting called to order at 6:39 by Carmen Bryant.
Opportunity for Public Comment on Items Not on Agenda
Mark Zavislak, member of the public, asked committee members to introduce themselves. Zavislak asked who represented taxpayer organizations and requested an application to join the Committee. Zavislak also requested more complete posting of Committee documents on-line.
Craig Goldman gave an update on the Shoreline Community Fund Study Session held by the Mountain View City Council to discuss funding for the school district. Proposed agreement would provide $1.8M additional funding for 2010-2011 school year, $4.8M over the next two school years. Greene asked what impact this would have current state funding. Current expectation is that this money will not be included in revenue limit calculations. Primary use of these funds would to offset state funding cuts, conservatively expected to be $1.5M, but potentially as big at $4.7M. Will need to evaluate impact on how Parcel Tax revenue is currently allocated. Steve Sherman asked if the use of funds would be restricted as under current agreement with the City. At this point City staff does not believe such strict restrictions will be needed.
Review and Approve Minutes of October 20, 2010 Meeting
Committee reviewed minutes for the October 20, 2010 Parcel Tax Oversight Committee meeting. Corrections were submitted via email and reflected in the updated minutes provide at the meeting.
Review Actual Auditor’s Report 2009-2010
Sheldon Chavan, CPA, reviewed the Auditor’s Report for 2009-2010. Chavan reviewed the audit methodology and requirements. Areas of focus include major federal programs, controls, testing of controls, state programs, and expense management. Overall District shows appropriate allocation of instructional spending, capital assets, and other key metrics. No material weaknesses were identified in the review, and no negative audit findings or comments were reported. Overall audit found the District to be well managed.
Audited Actuals for 2009-2010 Parcel Tax spending were not available for the meeting. Shaw Lee Ouyang will prepare this information for review at Committee’s next meeting.
Update on 2010-2011 Spending / First Interim
Shaw Lee Ouyang reviewed spending of Parcel Tax revenue to date, based on first interim. Currently projecting $2.75M in parcel tax revenue for the 2010-2011 school year with planned expenditures of $2.893M, exclusive of reserves. Year-to-date expenditures are $2.570M.
Committee reviewed variances:
- Regular Education. $102K unspent, but expected to be spent by end of year. Committee questioned changes in encumbrances from 10/31 to 1/31. This is due to delay in reclassification of staff to reflect funding by Parcel Tax revenues. Committee asked for further detail.
- Library. Expect to spend by end of year.
- Academic at Risk. $78K below budget. Committee asked for further research on the source of the variance.
- Science Camp. Some students have not yet attended.
- Physical Education. Committee requested further research of how funds are allocated.
- Custodians. Expect to spend by end of year.
Committee scheduled an additional meeting in March to answer outstanding questions regarding 2010-2011 spending. All allocation of funds must be completed by June 30, 2011.
Overview of Governor’s Budget Presentation
Shaw Lee Ouyang provided an update on the Governor’s latest budget proposal. Currrent forecast projects an additional $8.2B budget shortfall for 2010-2011, then $17.2B in 2011-2012. Unemployment rate remains high, with state economy not expected to recover to 2007 levels until 2016.
Governor’s proposal calls for no additional education spending cuts for 2010-2011. For 2011-2012 spending is expected to be roughly flat ($19 less per ADA) if special election is held and tax proposals pass. If tax proposals do not pass expect significant cuts ($349 to as much as $1000 cut per ADA). District is preparing four versions the 2011-2012 budget assuming $19, $349, $620, and $1000 reduction in ADA. District continues to benefit from local revenue sources (e.g., lease of facilities) and parcel tax revenue. Insurance costs for District staff continue to rise and represent a significant growing expense. Potential additional budget impacts from special education costs, enrollment increases, retirement contribution increases, local tax appeals, and changes to the state budget. Outcome of these items will determine if District is a basic aid or a revenue limited district. Parcel tax may play a key role in helping to balance budget issues.
Future Agenda Items
Committee scheduled two future meetings. Meeting on Wednesday, March 30, 2011 at 6:30 will include the following topics:
- Review 2009-2010 Audited Actuals for Parcel Tax funded programs
- Review 2010-2011
- Recommend allocation of any unused 2010-2011 revenues
Meeting on Wednesday, May 11, 2011 at 6:30 will cover:
- Update on state budget
- Review proposed allocation of Parcel Tax revenue for 2011-2012 school year
- Update on Joint Powers Agreement with City of Mountain View
- Recommendation how to adjust Parcel Tax spending based on outcome of the JPA with City of Mountain View.
Meeting adjourned at 8:28 PM.