Budget Summary May, 2008

What do we know at this point? Budget is always a work in progress Likely to finish this year with a $7 million deficit

What do we know at this point? Budgeted next year for Inflationary increases 3% salary increase Modest increase in campus supply budgets

What do we know at this point? With nothing changed for next year in revenue or spending… Likely will finish 08-09 with $23 million deficit

What do we know at this point? Fund balance will go from $53 million (6/07) to $25 million (6/09) 13 cents operating tax rate increase yields approximately $17.5 million in annual revenue

What do we know at this point? Getting to a balanced budget next year is essential

State funding system is the real problem… “Hold Harmless” to 05/06 revenue Inflationary cost increases with no Inflationary revenue adjustment Transportation allotment, technology allotment, etc.

State funding system is the real problem… Targeted revenue per WADA (weighted average daily attendance)

WADA comparison to other area districts $6,129 - Sheldon $5,630 - Deer Park $5,439 - Goose Creek $5,415 - Tomball $5,336 – Lamar $5,286 - LaPorte $5,174 – Katy $5,092 – Spring Branch $5,033 – Houston $4,938 – Crosby $4,923 – Aldine $4,937 - HUMBLE $4,874 – Fort Bend $4,821 – Huffman $4,809 – Galena Park $4,800 – Klein $4,792 – Spring $4,699 – North Forest $4,690 – Pasadena $4,674 – Alief $,4680 – Channelview $4,489 – Cy-Fair 2008-2009 Humble ISD projected WADA 38,666 If we received the same target revenue per WADA as Katy ISD, we could receive an additional $9.2 million in state aid in 08/09

We knew this was coming… House Bill 1 state funding system accelerated the crisis Circling the drain faster and now close to falling in

We knew this was coming… Waited as long as possible to severely impact campuses and classrooms But – we didn’t sit idly by Since 02/03, $17.5 million in reductions Built fund balance from $16 million (6/02) to $53 million (6/07)

Every year we provide a list of possible reductions to the Board Updated in terms of $ and possible new items

List of possible budget reductions always included… Eliminate differentiated staffing 6 of 7 at secondary schools Reduce/Share Assistant Principals Counselors Nurses Librarians

List of possible budget reductions will also include… Reduce central administrative staff Only JV & Varsity athletics at high schools Only one team per sport at middle schools

Heading toward “Minimum ISD” By attrition and reassignments

So what can I do? Stay Tuned