Budget Study Session January 19, 2010 Revised January 20, 2010

 Fiscal Solvency – Board Direction Employee salary rollbacks/furlough days Instructional program reduction  December 8 th staff recommendations  Other considerations Additional options

January 13, 2010Governor’s Budget Conference January 14, 2010Leadership Team MeetingBudget Freeze January 19, 2010Budget Study Session – Board4pm – 6pm January 21, 2010Negotiations January 26, 2010Community Forum February 2, 2010Board Meeting February 5, 2010Negotiations February 16, 2010Board Meeting February 18, 2010Negotiations March 2, 2010Board MeetingBudget Reductions March 15, 2010Preliminary Layoff NoticesDeadline March 16, 2010Board Meeting2 nd Interim Report Deadline

 Ed Code states that the county superintendent must act: (One of more of the following actions) Assign a fiscal expert (county expense) Conduct a study of internal controls and assign a consultant (75% district: 25% county expense) Require additional financial reporting Require the district to submit a plan of action Withhold compensation of officials Comment on collective bargaining proposals Prevented from issuing non-voter approved debt

 Highlights of the Education Budget Flat funding under Proposition 98 in $1.5 billion in cuts targeted to district administration Personnel and administrative reforms Suspension of almost all education mandates  Negative cost-of-living adjustment (COLA) produces no new funding  Deficit factor remains at record level  Proposition 98 is still owed major sums $11.2 billion from past deficits More than $1 billion for unfunded mandates Don’t plan to collect this year  Race to the Top (RTTT) is also a factor

 The Governor Protects Education Fiction – Prop 98 is being manipulated  There are no new cuts to Education Fiction – California schools lose another 4.1% on average  There are no midyear cuts to Education Truth  The Governor honors past agreements Fiction – A promise to pay a portion of the $11.2B settlement of Prop 98 Maintenance Factor has been delayed Fiction – $1B in Mandate Reimbursements owed from are still being deferred….even after a court ruling in favor of Education

st Interim Report – projected shortfall $0($14,732,333)($37,270,683) Governor’s Proposed Reductions: Revenue Limit COLA ($638,281)$3,087,181 Administrative Cuts ($-201 per ADA) $0($5,345,605)($5,395,855) ARRA Stabilization Funding($762,991)$0 Tier III COLA $0($55,295)261,928 District Issues: Health Benefits $0($1,701,265) Total Projected Shortfall – Revised ($762,991)($22,472,779)($41,018,684)

Loss of COLA Loss of baseline dollars ($566) ($598)

 Staff recommendation – Budget Reduction / Adjustment List - December 8 th Board Meeting  Budget Freeze  Tier III Discussion  Special Education  Critical Timeline  Common Message

 Effective Immediately  Includes: Spending Hiring (case by case basis) Travel  Specifics to follow via  Inform your staff

 Professional Development  Focus on “Each Student”  Instructional Technology  21 st Century Learning  School Safety

(in millions) Increased Intervention Focus

 Reductions will impact everyone and everything  Board liaison communication to parents  Forward all questions to Ian  Encourage parents to check Budget Watch and NewsFlash  Anticipate additional District Meetings

 Community Forum Tuesday - January 26, pm