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2011-12 Budget

Board Item #10.4

Board of EducationFebruary 3, 2011

Potential Impact of 2010-11 on 2011-12

• New State Funds Reserve $8.80 M• Potential Reduction in Average Daily Attendance ($1.75) M• Unanticipated Expenses/Savings

that didn’t materialize such as: ($4.28) M- Special Education Staffing- H. Johnson Feeder Music Program- Energy Education Inc. Performance Fees- Unrealized Energy Savings

Total Available Funds for 2011-12 $2.77M

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2011-12 Scenario One

• Tax Extensions/Governor’s Propositions Pass

- Revenue Limit Adjustments

- $19 per ADA decrease ($ .80)M

- Elimination of Special Ed ($ .22)M Settlement

- Carryover of 2010-11 State Funds $2.77 M

- Remainder of Unallocated 2010-11 $2.77M State Funds

- Unallocated Federal Education Jobs $ 4.38M Funds (after 1% and Common Planning Time)

Total Available Revenue $8.90 M

2011-12 Scenario One cont’d

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• Known Expenditure Increases- Step/Column/Attrition $ 2.50M

- 10% Health Benefit Increase $ 5.56M

- Use of One-Time Funds to $ 5.61M Balance 2010-11

- Salaries funded by one-time $ .94MIDEA ARRA funds

- Additional Staffing Needs $ .37M- Licensed Vocational Nurses- Grant Writer- Special Ed Teacher/Aide- Psychologist- .50 Principal J. Morse/Success

2011-12 Scenario One cont’d

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• Known Expenditure Increases (cont’d)- Reinstate 50% Def’d Maintenance $ .75

M

- Strategic Plan Initiatives $ 2.37M

Total Expenditure Increase $ 18.10M

2011-12 Scenario One cont’d

• Summary- Revenues $ 8.90 M

- Expenditures ($18.10) M

Projected Deficit ($ 9.20) M

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2011-12 Scenario Two

• Tax Extensions Don’t Pass (Education Funding Reduced by $2 Billion Statewide)

- Revenue Limit Adjustments

- $349 per ADA Decrease ( $14.60)M

- Elimination of Special Ed Settlement ($ .22)M

- Carryover of 2010-11 State Funds $2.77 M

- Remainder of Unallocated 2010-11 $2.77 M State Funds

- Unallocated Federal Education Jobs $4.38 M Funds (after 1% and Common Planning Time)

Total Available Revenue ($ 4.90)M

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2011-12 Scenario Two cont’d

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• Known Expenditure Increases- Step/Column/Attrition $ 2.50M

- 10% Health Benefit Increase $ 5.56M

- Use of One-Time Funds to $ 5.61M Balance 2010-11

- Salaries funded by one-time $ .94MIDEA ARRA funds

- Additional Staffing Needs $ .37M- Licensed Vocational Nurses- Grant Writer- Special Ed Teacher/Aide- Psychologist- .50 Principal J. Morse/Success

2011-12 Scenario Two cont’d

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• Known Expenditure Increases (cont’d)- Reinstate 50% Def’d Maintenance $ .75

M

- Strategic Plan Initiatives $ 1.72M

Total Expenditure Increase $ 17.45M

2011-12 Scenario Two cont’d

• Summary- Revenues ($ 4.90) M

- Expenditures ($17.45) M

Projected Deficit ($22.35) M

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Strategic Plan Initiatives – Scenario One

• Pillar One – Career- and College- Ready Students- Inclusive Practices $ .70 M- Common Core$ .50 M- Math/Literacy $ .65 M- Early Kinder Program $ .12 M- GATE AP $ .15 M

• Pillar Three – Organizational Transformation- Enrollment Center $ .25 M

Total General Funds Needed $ 2.37 M

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Strategic Plan Initiatives – Scenario Two

• Pillar One – Career- and College- Ready Students- Inclusive Practices $ .70 M- Common Core$ .30 M- Math/Literacy $ .35 M- Early Kinder $ .12 M

• Pillar Three – Organizational Transformation- Enrollment Center $ .25 M

Total General Funds Needed $ 1.72M

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Other Strategic Plan Initiatives

• Other Strategic Plan Initiatives Funded with Title I Categorical Dollars- Pillar One – Career- and College- Ready Students- Data Inquiry $ .50 M- School Quality Review $ .45 M- RtI/PBIS $ .60 M

- Pillar Two – Family and Community Engagement- Home Visit Project $ .25 M

- Pillar Three – Organizational Transformation- Equity Training $ .15 M

Total Title I Funded Initiatives $1.95 M

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Potential Options to Balance 2011-12

• Scenario One- Federal Education Jobs Funds

- Retain Bonus $ 2.35 M- Receive remaining 10% from state $ .80 M

- Tier III Reductions- Reduce Adult Education $ 2.00 M- Instructional Materials Block Grant $ .50 M- School Library Improvement Block $ .23 M

Grant- Teacher Credential Block Grant $ .10 M

- Savings from COP Remarketing $ .50 M (No QSCBs)

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Potential Options to Balance 2011-12

• Scenario One (cont’d)- Negotiable

- Increase 7-8 Class Size by 4 students $1.70M

- Current 31:1 to 35:1- Bring class size in line with 9-12

- Percent pay reduction equivalent$ .87 M

to furlough days

Total to Balance Scenario One ($9.20M) $ 9.05M

Potential Options to Balance 2011-12 cont’d

• Options from Scenario One $ 9.05 M

• Negotiable- Increase 9-12 Class Size by 5 students $ 3.60

M- 35:1 to 40:1

- Increase 7-8 Class Size by 1 student $ .40M- 35:1 to 36:1

- Increase 4-6 Class Size by 1 student $ 1.35M- 33:1 to 34:1

• Reduce Adult Education $ 1.00 M

• Eliminate Home to School Transpt’n $ .98 M

Sub-Total to help Balance $ 16.38 M Scenario Two ($22.35M)

Shortfall ($ 5.97) M16

Other Potential Options to Balance 2011-12

• Negotiable- Pay Reductions – 1%-5% - all employees- Review Health Benefit Options – all employees- Freeze Step and Column – all employees

• Does Not Require Negotiations- Eliminate Co-Curricular Support

- K-8, Middle – Stipends- High School – Stipends, Transportation, Uniform Replacement,

Athletic Trainer

- Eliminate Deferred Maintenance Funds - Eliminate Adult Education- Reduce Counselors- Print Shop Generate Revenue – Self Supporting- Summer School Program Generate Revenue

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Central Office

• Central Office (including Serna Center, Special Education, Capital Asset Management Services and Distribution Services) are 17.9% of district budget

• Right Sized in 2010-11- Deep staffing reductions

• 2010-11 staffing savings accounted for 17% of the overall shortfall of $32.5 million

• Central Office staffing savings of $7.5 million over last two years alone

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Next Steps

• Receive Board Input and Continue to Develop Proposed Options

• Continue to Analyze State Budget Information

• Budget Survey to Parents/Community/ Staff/Students

• Community Budget Information Meetings

• Certificated Lay Off Notices by March 15- Education Code Deadline

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Next Steps cont’d

• Second Interim Approved by March 15- Action needed to balance 2011-12

- Qualified Certification- May not meet financial obligations for

current and two subsequent years

- Negative Certification- Unable to meet financial obligations for

current or the subsequent year

- Financial Oversight

- Loss of decision making authority

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Next Steps cont’d

• Classified Lay Off Notices if Needed

• Governor’s May Revise Report

• Potential Vote on Legislation to Extend Tax Increases

• Public Hearing and Adoption of 2011-12 Budget

• Continue Communication with Board and Stakeholders