Economic Crisis Biennium and Beyond Update to the Board February 19, 2009

Best Educational Guess  One week ago—$381 cut per student  Today (according to Statesman Journal)—$150 cut per student  NSSD must be prepared for the worst case scenario—the District cannot end the year in the “red”

February 20 th Forecast  Friday starting at 8:30 a.m. at the capitol  Expect state to have $880 million shortfall  Rumor—shortfall could be as high as $1 billion

As of Today, February 19, 2009  Expected Ending Fund Balance= $1,600,000  Add the four (4) day cut= $260,000  Expected Operating Fund Savings= $585,000  Total Revenue= $2,445,000 Revenue $1,600, , ,000 $2,445,000

Revenue Reductions from State  $381 per ADMw= ($1,050,000)  SIF reduction= ($40,000)  Property tax decrease= ($88,000)  Less interest earnings= ($60,000)  Drop in timber revenue= ($66,000)  Drop in enrollment (41 students)= ($246,000) (-41 students = -11 ML, -15 SES, -15 SUB)  Total Reductions= ($1,550,000) Reductions ($1,050,000) ($40,000) ($88,000) ($60,000) ($66,000) ($246,000) ($1,550,000)

Adjusted Ending Fund Balance  Total Revenue= $2,445,000  Total Reductions= ($1,550,000)  Adjusted Ending Fund Balance= $895,000  Cut additional 2 days to bring balance up to prepare for cuts= $130,000 Adjustments $2,445,000 ($1,550,000) $895,000 $130,000 $1,025,000

Going Into  Beginning fund balance= $1,025,000  Expected cut of 7.5% to funding (based on adjusted ADMw)= ($900,000)  Cost of living roll up (all groups)= ($655,000)  Minimum fund balance = ($650,000) $1,025,000 ($900,000) ($655,000) ($650,000) ($1,180,000)

GAME PLAN  How do we get ($1,180,000)? 10% across the board cuts to all employee groups 140 Teachers = Classified = Non-Represented=2.85

Willingness to Lead by Example Administrators, Confidential, Supervisory  13.9% Cut Administrators (11): .60* FTE= $68,481  Cut 5 days= $23,635 Deans (2):  Cut 1.0 FTE= $74,936  Cut 5 days= $2,246 Confidential/Supervisor/Directors (14):  Cut 5 days= $15,445 Contract Employees FTE = 1.5 FTE):  Cut.50* FTE plus 2 days= $31,076 Superintendent (1 Essential Position):  Cut 5 days= $2,800 Freeze Cost of Living Raises= $97,413 Savings $68,481 $23,635 $74,936 $2,246 $15,445 $31,076 $2,800 $97,413 $316,032 *Retirees

What does 10% look like?  140 Licensed—14 Cut= $939,764 5 known retirees = $407,576 9 lowest seniority (avg.)= $532,188  114 Classified—11.4 Cut= $289,092 0 known retirees 1.4 office staff (13)=$39, custodians (19)= $67, instructional support (68)= $144, food service (14)= $38,535

Reality Check How can union groups save positions?  Freeze Salary Roll Ups (Cost of Living and Steps)  Cut Days

Freeze Salary Roll Ups What does that look like?  Licensed Roll up costs= $436,882 Saves 7.0 out of 9.0 FTE 2 positions—Reduction In Force (RIF)  Classified Roll up costs= $120,091 Saves 5.0 out of 11.4 FTE 6.4 positions—Reduction In Force (RIF)

Cutting Days in What does that look like?  Administrators, Supervisors, Directors, and Confidential—will cut 5 days for each 1.0 FTE, to save positions within their group as shown on the earlier worksheet  The licensed and classified groups will be given information on how cutting days may also save additional positions within their groups

United Front United as a team we can get through this crisis together and be stronger in the end!