Once again the State adopted a budget without realistically solving its own major deficit problem. “Mid-Year Triggers” is the latest catch phrase for what amounts to the additional threat of cuts for programs and schools throughout the State. West Contra Costa Unified continues to plan for fiscal solvency.

Review Executive Summary Overview of State Mid Year Trigger Scenarios Priority Planning

 Parcel Tax ◦ Extended existing parcel tax in the November 2008 election  $9.2 million for Libraries, Athletics, Teachers, Counselors, materials and textbooks, and more ◦ Made the effort in November of 2010 to pass an additional parcel tax  MRAD – Maintenance Recreation Assessment District funding ◦ $5.5 million toward keeping up the grounds and outdoor facilities and special outdoor projects  Bond Program ◦ Taken on capital projects previously funded by Deferred Maintenance funding

 State of California adopted the Flexibility Funding Program ◦ Tier III Flexibility enacted by the Board of Education ◦ K-3 Class Size reduction flexibility enacted by the Board  Innovation by maximizing Federal funds to operate program

 Federal Stimulus Funding ◦ Has provided a way for the District to offer  K-3 Class Size Reduction  Summer School Programs  Safety Positions  The last of this funding “Ed Jobs” expires at the end of this year

 Through shared commitments and sacrifices from our employees  Reduced the work year for all employees  Saving over $4.4 million per year through  Capped the amount the District will provide toward health care benefits  Saving over $9.9 million per year

 Through shared commitments and concessions from the unions  Increased class size at secondary schools ◦ Saving $3.2 million  Sunset the lifetime benefit program ◦ Long term savings of $277 million

 School Closure ◦ Closed 3 schools and 2 other facilities ◦ Partnered with City of Richmond and City of San Pablo to keep schools open  City of Richmond $1.5 million, and  City of Richmond has made an ongoing commitment  City of San Pablo $300 thousand, , and ◦ Cumulative savings/revenue through $8.4million

 The Board has directed staff to take the steps necessary to pay off the State Loan  The final payment for the Voluntary Integration Program (VIP) audit will be made this year  Retiring these two debt obligations has relived the general fund ◦ State Loan payment $1.4 million ◦ VIP Debt $872,000

 The Board has expressed an interest in paying off the IBM debt using one-time fund balance  If the Board chooses to retire the IBM debt ◦ IBM $625,000 annual payment  In order to pay off IBM the Board would need to use $3.7 million  Certificates of Participation only remaining general fund debt

◦ If the State General Fund revenue falls $2 billion or more short of the projection in the budget there will be reduction to K-12 Revenue Limit  The actual amount will be in proportion to the shortfall that exceeds $2 billion  If the $2 billion shortfall occurs the estimated cut to K-12 schools, statewide, could be as much as $1.5 billion  West Contra Costa’s revenue cuts per ADA are projected at $7.2 million plus $948,000 in transportation funding if the State is short the full $1.5 billion (in excess of the $2 billion)

 As an example, for approximately every $214 million of State shortfall, the District is cut $1 million – plus a proportional transportation cut State Revenue Projection is Short Projected District Revenue Reduction Projected Transportation Reduction Projected District Reduction 2 Billion000 2 Billion + $214 million$1,040,000$135,500$1,175,500 2 Billion + $642 million$3,120,000$406,500$3,526,500 2 Billion + $1.5 billion$7,280,000$948,500$8,228,500

 Will Mid-Year Triggers happen? ◦ The conditions for the triggers exist ◦ The most recent reports show the State is $654 million short as of September  Legislation would be required to delay the enactment of triggers  Absent the enactment of the triggers the January Governor’s Budget would have to address the shortfall by making cuts for

 Depending upon the level of Mid-Year Triggers the District can use reserves to sustain programs  If the State is short the full $1.5 billion reserves and cuts were enacted for $8.2 million reserves would last only through unless cuts are made

 Board has previously identified ◦ School Resource Officer Reduction $1 million ◦ Adult Education Program Reduction $1 million  If these two reductions were enacted in the reserves would carry further into

 Furloughs are restored ◦ Does not include restoration of Teacher Staff Development Days  Use of one time funding or limited term funding for unrestricted programs ◦ Tier III Funding and Special Reserve are in use  City of Richmond support necessary to maintain schools on closure list ◦ Shannon and Lake Scheduled to close

 K-3 Class Size Reduction – eliminated due to one time federal funding  Maintains…. ◦ 180 Day School Year ◦ Adult Education ◦ School Resource Officers  September 7, 2011 ◦ Board Approves Resolution to pay off State Loan

 Summer School  Curriculum Needs : Reading Language Arts  Class Sizes at Secondary Levels  Support and Staffing ◦ Technology ◦ Maintenance and Operations ◦ Communication

Multi-Year Planning – years to come  Parcel tax is a limited term funding source ◦ Expires  Health and Welfare Benefits ◦ Rates for benefits continue to increase for those who retired prior to cap  State flexibility funding – Legislation needed for permanent fix ◦ Tier III flexibility sunsets June 2015 ◦ K-3 CSR flexibility sunsets June 2014

These figures take into account the pay-off of the State Loan and the VIP debt. Special Reserve fund is depleted in this scenario.

These figures take into account the pay-off of the State Loan and the VIP debt. Special Reserve fund is not used until in this scenario.

Priority Planning

 December 7, 2011 ◦ Multi-Year Plan & Financial Projection will be included in the First Interim Report  Mid December 2011 ◦ Scheduled Announcement of Mid-Year Triggers  January 2012 ◦ Governors Budget Proposal  February 2012 ◦ Lay off if required  March 2012 ◦ Second Interim Report  May 2012 ◦ Governors May Revision  June 2012 ◦ District Budget Adoption for

Priority Planning

Restore/Maintain in This Order

28 Information Available at… West Contra Costa Unified School District Website