HUMBOLDT UNIFIED SCHOOL DISTRICT

Fall 2009-2010

Budget Update

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“WHAT’S PAST IS PROLOGUE…” The Tempest, Shakespeare

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REVIEW OF 08-09 DISTRICT BUDGET STRATEGIES

COST SAVINGS EFFORTS

DIVIDED INTO TWO TIERS

TIER I -- District budget reductions regardless of 09-10 budget-- based on declining

enrollment and prudent fiscal management.

TIER II – Identified 09-10 budget M&O reductions to implement in “worse-case” scenario

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TIER I Total M&O Savings~$1,500,000

► Eliminated District Office support staff (2)► Eliminated administrator performance pay for 09-10► Eliminated building administrative positions (2)► Reduced administrative cell phone costs ► Changed health care eligibility requirements for part-time staff ► Eliminated mail delivery position & maintenance staff (4)► Eliminated high school copy center position (1)► Reduced district-wide substitute spending in 2008-09 by $298,862 (from 07-08)► Adjusted class sizes, reduced teacher positions through attrition (14)► Reduced ELL teacher positions due to high reclassification rates (4)► Reduced SPED/ELL aide positions based on class needs (8)► Revised stipend schedule ► Reduced M&O spending for athletics, increased pay-to-play, tax credit $ to cover

High/Middle/Elementary stipends

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► Fee-based full-day kindergarten► 175-day school year (requires State action)

►Adjust administrator wages►Adjust certified/classified wages

► Reduce elementary specials staffing (e.g. music, P.E., library, computer)► Reduce nursing services & other library services► Additional certified & classified staff reductions► Possible salary reductions and/or furlough days► Employee contribution towards health premiums

NONE OF THESE CUTS HAVE COME TO PASS!!!!!!!!

TIER I I

IDENTIFIED POTENTIAL 09-10 CUTSIN CASE OF “WORSE-CASE” SCENARIO

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FURLOUGH DAYS

MEET AND CONFER GROUPS (BASED ON SPRING SURVEY INPUT FROM ALL STAFF) RECOMMENDED 2 FURLOUGH DAYS, IF ADDITIONAL 09-10 SAVINGS BECOME NECESSARY.

ON AUGUST 4TH, BOARD TABLED DECISION TO APPROVE FURLOUGH DAYS UNTIL SECOND MEETING IN OCTOBER

TWO STAFF FURLOUGH DAYS WOULD SAVE THE DISTRICT ~ $250,000.

HOW IT WOULD AFFECT, CERTIFIED---Give up a full-day in service and 2 hours of pay on 4

early release days CLASSIFIED---Lose two paid holidays

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WHAT WE CAN CELEBRATE…

• SPRING 09 RIF -- EVERY HUSD EMPLOYEE ON LIST WAS OFFERED

A DISTRICT POSITION

• 08-09 HAD HIGHEST STUDENT ACHIEVEMENT IN HISTORY OF HUSD

• BOND PROJECTS --NEARLY ALL COMPLETED. DOLLARS SAVED

DUE TO OPTIMAL VALUE PRICING WILL BE REALLOCATED BY GOVERNING BOARD TO

OTHER WORTHY DISTRICT PROJECTS.

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STATE ECONOMIC CONDITIONAFFECTING DISTRICT FINANCIAL FUTURE

Source of information: ASU Dept of Economics---economist.asu.edu

AZ SUFFERING WORST ECONOMIC RECESSION IN POST-WAR PERIOD

AVERAGE RECESSION DURATION HAS BEEN 10 MONTHS. THIS ONE HAS LASTED 23 MONTHS, MAY LAST UNTIL 2012.

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AZ ECONOMY--CONTINUED

AZ COFFERS DOWN 40% IN APRIL/MAY 09 AZ IN A “CONSUMPTION DEPRESSION.”

AFFECTS STATE ECONOMY BECAUSE WE ARE SO RELIANT ON CONSUMER SPENDING AND SALES TAXES FOR REVENUE.

AZ LEADS NATION IN JOB LOSSES

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IMPACT OF DECREASED SALES TAX REVENUE ON PROPOSITION 301 $$

REMEMBER!!!!!!

PROPOSITION 301 gives additional money to Teachers, Librarians, Counselors, Speech Therapists & Nurses. It is distributed to districts by per-pupil allocations; all funds are directed to above groups, with the exception of $10 per student for staff professional development.

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PROPOSITION 301 DOLLARS DISTRIBUTED TO HUSD TEACHERS

04-05 = $3,908

05-06 = $5,735

06-07 = $5,533

07-08 = $5,756

08-09 = $5,050

09-10 = $2000-$3000

(October and December payments ~ $425)

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SO…..WHERE DOES HUSD STAND?

STATE “WOES” MAKE

HUSD’S FINANCIAL POSITION

A MOVING TARGET…..

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09-10 SCENARIO

Current 09-10 HUSD Budget has a ($134,670) gap:

Loss of ADM-190 students (wt’d & incL.Alternative Online Assessment) 190Loss of Group B ADM (SPED, ELL, K) & Loss of BSL $$ 102

---------------- $1,105,942.00

Loss of Excess Utilities Used by District $ 329,000.00Add’l Utilities Required—Wide Area Network & 5% $ 360,000.00Increase in Fuel Prices/Routes $ 180,000.00

------------------Current Deficit $ 1,974,942.00Tier I Cuts

$(1,500,000.00)Reassignment/Offering of New Grt Positions) (Title I—ARRA* enabled return of closed Grt) (14,160.00)Reassignment/Offering of New Grt Positions (SPED—ARRA*) (177,655.00)E-Rate Utility Off-set (148,457.00)

------------------- *American Recovery & Reinvestment Act GAP ($ 134,670.00)

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09-10 SCENARIO CONTINUED….

SOFT CAPITAL FOR 09-10 HAS A BEEN FROZEN. HUSD WOULD HAVE GENERATED $1.3 MILLION IN SOFT CAP $$ BASED ON STUDENT COUNT. DUE TO STATE BUDGET REDUCTIONS, HUSD ALLOCATION FOR 09-10 IS ~ $200,000.

MONEY CANNOT BE USED FOR M&O

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KEY EVENTS THAT COULD HAVE A NEGATIVE OR POSITIVE IMPACT ON 09-10

HUSD BUDGET

October 31—Over-Budget Aggregate Limit Letter, which may require a mid-year reduction of our budget—Remember, last year we had to return $818,000

Voters may pass 1% sales tax later in Dec. or spring to generate some revenue—just a temporary “band-aid” that would generate $1 billion, State has estimated $3.5 billion shortfall..could be more.

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KEY EVENTS THAT COULD HAVE A NEGATIVE IMPACT ON 2010-2011 BUDGET

Enrollment numbers are down by 142 students. Positive news is that we have captured 173 out-of-district students through aggressive marketing (we could have been down ~315 without those efforts).

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OUT-OF-DISTRICT ENROLLEESBY SITE

MAYER CHINO PRESCOTT TOTALS

BMHS 32 4 13 49

BMMS 23 1 24

GHMS 6 1 1 8

LTS 4 8 2 14

CSES 2 4 3 9

GES 2 7 5 14

HES 50 50

LVES 4 1 5

MVES

TOTALS 114 25 29 173

GRAND TOTAL 173

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HUSD ENROLLMENT COMPARISION: 11TH TO 100TH DAY *Numbers do not include preschool students

11 Day 11 Day 11 Day 11 Day 11 Day

2005-06 2006-07 2007-08 2008-09 2009-10

6224 6421 6564 6326 6168

100 Day 100 Day 100 Day 100 Day 100 Day

2005-06 2006-07 2007-08 2008-09 2009-10

6112 6339 6347 6184 ?

-112 -82 -217 -142 ?

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WHAT ABOUT STIMULUS $$$

Continued limitations because of “Supplement vs. Supplant” rules

SPED Grant Funds, $1,000,000 TITLE I--$595,000 State Fiscal Stabilization Fund—No clear

information or decisions from the State on how this will offset State budget deficit

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HUSD PROACTIVE STRATEGIES TO CONTINUE PREPARING FOR BUDGET

CHALLENGES

WHAT IS UNDER OUR CONTROL…….

Enrollment continues to be “bread and butter—” Aggressive Marketing Improved Customer Service Collective commitment to individual site recruitment and retention plans Continued path to academic excellence (attracts students)

Continually identifying additional cost-saving measures Continued commitment to what is saving $$$

Substitutes—Continued cost containment. 08-09 Savings $298,862 Utilities—Continued conservation efforts—08-09 Savings $65,000 Monitoring expenses—”Needs VS. Wants”

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STILL TOO MANY UNKNOWNS……..

“You never know who is swimming naked

until the tide goes out.”

Warren Buffet

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…..REST OF SHAKESPEARE’S QUOTE

“WHAT TO COME…

IN YOURS AND MY DISCHARGE.”

It’s still “ALL OF US” against the problem… because there is great

strength in unity!!!!

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NOW YOUR TURN….

Q & A