Adopting a Budget for 2009/10 Board Meeting June 2, 2009 Prepared by: Dr. Cathy Nichols-Washer Douglas Barge & Staff Y:\Business Services\Budget\ \Adopted\Meetings\B \B ppt

Table of Contents A. Opening Comments1 DescriptionPage No. B. Cash Flow Problems2 C. Summarizing Changes3 - 6 D. May Revisions i E. Optional Change F. Recommendations16 G.Appendix – Part I Proposed Reduction Details Continuation & Henderson Class Size Impact Summary of Changes (see separate attachment) H.Appendix – Part II (see separate attachment) Details of Budget Reduction Process A1 – A2 B1 C1 – C8

Opening Comments Budget problems for both 2008/09 and 2009/10 never seem to stop mounting State revenues continue to decline Voters didn’t support solutions that weren’t solutions Legislators are far behind the problem curve For now we are building a budget based on the State adopted budgets In addition, we have made adjustments to reflect the Governor’s May revision proposals Using the County directed guidelines We have attempted to minimize the additional reduction of staff Planning will continue 1

Cash Flow Problems A repeat of last year and more 2

Summarizing Changes ii

Review of May 5, Board Approved Strategy (Option “A”) Spends Current Resources on Current Students now:  Uses greatest amount of flexibility  Potentially requires a greater level of future cuts  Provides for greater administrative authority to deal with daily operational needs of the District Dealt with structural balance now, but will not help deal with additional State reductions Retains Flexibility for Use of Federal Stimulus Resources Maintains reserves at the 3% levels required by the State Requires budget adjustments of $16,512,349 3

Current Budget Reductions B. Full Use of Tier III Reductions C. Partial Use of Tier II Reductions D. Total Adjustments Description ,496, ,706, $16,512,349 A. Reduce Carryover Reserves$1,309,204 AmountFTE I. Updated “Option A” *See Appendix for Details 4

Summary of Changes We have had to adjust to an ever increasing State fiscal crisis and the uncertainty surrounding the Federal dollars From the original recommendations submitted to the Board for consideration, a number of changes have been made to the reduction plans Those changes include:  Adjusting class sizes for 9-12  Support for Senior Projects  Retaining Counselors & Library Assistants  Special Education Staffing  Other support staffing 5

Board of Education & Superintendent Reductions 1. Board Member Stipends – 10% Reduction $ 6, Superintendent – 6.63% Salary Reduction17,195 DescriptionAmount 3. Total $ 23,779 6

May Revisions iii

So What is the Problem? = $16M Tier III Tier II Tier I $27M $28M District State $3.6B or $469 to $1,000 per ADA 7

The Problem is Revenue A. 2008/09 Revenue Limit B. 2009/10 Revenue Limit($6,842,736) ($6,309,900) (6,842,736) DescriptionOn Going One Time Total C. Total Revenue Loss($6,842,736) ($6,309,900) ($13,152,636) D. Federal Stabilization (*) 7,603,253 E. Net Revenue Loss($6,842,736) $1,293,353 ($5,549,383) (*) See appendix B4 for details of expenditures no longer possible. 8

How Can We Balance? Declare Federal Stabilization Resources Sweep State Tier 3 Programs * Reduce reserves further * Additional program reductions Deeper State Tier 3 programs reductions with the hope that Federal Categorical Stabilization resources will become available to backfill (re-instate) these cuts Additional reductions previously identified (Option B) Additional reductions previously identified (Option C) 9 * * District will still maintain required 3% General Reserves.

What Can’t We Do to Balance? Declare any additional Federal Title I resources until rules and funding levels have been clearly defined Declare additional Federal Individual with Disabilities Education Act (IDEA) resources until State has done their homework and notified the District of rules and funding levels 10

Program Reductions A. Various Reserves (#) B. Continuation Staffing (#) ($125,116) ($1,195,730) (125,116) DescriptionOn Going One Time Total (#) C. Community Day School (#) (62,558) F. Total Program Reductions($187,674) ($5,361,709) ($5,549,383) E. Fed. Stabilization – Categorical (1,907,790) D. State Categorical (2,258,189) 11 (#) – See Appendix, Page B-1 for detail of class size impact.

Categorical Funded Staffing 1. Director of Ed. Services$141, Coordinator of Community Relations126, DescriptionBudgetFTE 3. Administrative Secretary61, ELD Teachers (grades 9-12)143, Curriculum Program Administrator254, Categorically Funded$727,

Status the Structural Balance 1. Balance as of 4/07/09$0 2. Revenue Limit – May Revise (13,152,636) DescriptionTotal $86,234 (6,309,900) One-Time ($86,234) (6,842,736) On-Going 3. Federal Stabilization7,603, Program Reductions5,549,3835,361,709187, Total Estimated$0$6,741,296($6,741,296) * Rebuilding of some programs without State funding may be an additional burden in the future (i.e. Maintenance & Operations) 13

Optional Change iv

Co-Curricular Reductions All freshman sports would be eliminated Entire sports programs would be eliminated: Tennis, golf, badminton, and diving Junior varsity Soccer would be eliminated Half of non-athletic activities would be reduced or eliminated Newspaper, speech & debate, yearbook, Future Farmers, instrumental music (exact areas are yet to be determined) Half of middle school stipends for student council, yearbook, and drama would be eliminated All elementary stipends would be eliminated 14

Co-Curricular Funding Option A. Co-Curricular – Activities/Athletics (participation donations) B. Income (participation donations) (40,093) $356,742 DescriptionFTE Budget C. Department Chairs(100,093) G. Total Option(1.60) $0 D. Librarians (406,816) (1.60) (4.00) E. Library Assistants, , F. Library Assistants, K-6 Funding Option Total $968,203 $406,816 FTE , Categorical Stabilization # # Implementation delayed pending arrival of Federal resources 15

Recommendations 1. Staff recognizes the Governor’s proposal to reduce Revenue Limit by more than $13M between this year and next 2. To close this gap staff recommends: a. Declaring all of the “On-Time” Federal Stabilization resources a. This would include reversing previous recommended use of these resources (see appendix for details) b. Reduce the remaining reserves as outlined in this report (see appendix for details) c. Reduce Teacher staffing by 1.00 FTE at both continuation sites and Henderson CDS d. Additional Sweeping of State Tier 3 categorical resources (see appendix for details) e. Plan on the use of Federal Categorical stimulus resources as they become available (see appendix for details) 3. Approval of Co-Curricular funding option. 16

The End Until the Legislature Speaks

Appendix – Part I A. Proposed Reduction Details B. Continuation & Henderson Class Size Impact C. Summary of Changes v

Proposed Reduction Details A1

Proposed Reduction Details A2

Liberty, Plaza Robles & Henderson Schools – Teacher Staffing B1 PROJ.ATTEND.ADJ.CURRENTAVG.REVISEDREVISED AVG. SITEENROLLFACTORENROLLFTECLASS SIZEFTECLASS SIZE Liberty % Plaza Robles % Henderson CDS %

Summary of Changes C1

Strategy to Address Class Size Grades Teachers (9-12) – Reduce Class Size by $660, Instrumental Music (5-6)(5.12)(488,871) 3. Grade 9-12 Teachers (ELD)(2.25)(143,309) # 4. Vice Principal – Lincoln Tech(.25)(28,377) 5. Net Change2.08$0 DescriptionFTEBudget A. GENERAL FUND UNRESTRICTED B. ECONOMIC IMPACT AID (EIA) 2.25$143, Grade 9-12 Teachers (ELD) (#) May fund.25 FTE from Adult Education Fund * (*) Changes previous proposed from an increase of 2 students to an increase of 1 student C2

Senior Project – Partial Staffing Response to April 21 Board Discussion * 1. Teachers (9-12) – Senior Project.93 $58, Warehouse – Delivery Driver (workday reduction) (24,564) DescriptionFTEBudget A. GENERAL FUND UNRESTRICTED B. STATE TIER III PROGRAM SWEEP ($33,615) 1. Community Based English Tutoring (CBET) 3. Total General Fund Unrestricted.93$33,615 (*) Release of one period for coordination of program. Does not include current allocation to reduce 12 th grade English class sizes. C3

Possible Uses of Categorical Resources 1. Counselors (K-6) – Title I4.26 $360, Teachers (9th) CSR , Budget Technician1.0063,179 DescriptionFTEBudget 4. Instructional Coaches , Total 17.58$1,313, Administrative Secretaries ,104 C4

Federal Stabilization Resources 1. Library Assistant (K-6)3.38 $140, Counselors (K-6) , Total Future Additions5.98$264,250 DescriptionFTEBudget A. Future Additions (*) * Funding is one-time 3. Counselors (7-12)1.0088,679 C5

Federal Title I Stimulus 1. Library Assistant (K-6) 5.80 $235, Counselors (K-6) , Total Future Additions8.70$480,925 DescriptionFTEBudget A. Future Additions Funding is one-time and supports Title I sites only C6

Federal IDEA Resources 1. Tier II Reductions (#)6.90 $102, Tier III Reductions (#).6096, Total Future Additions9.25$337,836 DescriptionFTEBudget A. Future Additions (*) * Funding is one-time and supports Special Education Programs only # See Appendix – Part II for details 3. Nurses ,379 C7

Federal IDEA Resources 2. Paraeducators – Resource Specialist , Program Specialist.6070, Total Future Additions9.25$429,859 DescriptionFTEBudget A. Future Additions (*) * Funding is one-time and supports Special Education Programs only 5. Nurses , Paraprofessional - Infant(1.10)(27,434) 1. Service Contracts - Autism $ 60,000 C8