HUSD Budget Update March, 2009

2 HOW DOES HUSD “STACK UP” AMONG DISTRICTS IN ARIZONA Office of the Arizona Auditor General Special Study--Fiscal Year 2008

3 HUSD Classroom Dollars Fiscal year 2008 averages per pupil HUSD ranks 36 th out of 230 total AZ districts = top 16% HUSD ranks 4 th out of 39 “large” AZ districts (5,000 to 19,999 students) = top 10% (State Average is 57.1%)

4 Percentage DISTRICT STATE Classroom Dollars Nonclassroom Dollars -Administration (Nat. Avg. 11%) Plant Operations Food Service Transportation (high due to HUSD being rural: 200+ square miles) Student Support Instruction Support Other 0.2 HUSD Classroom Dollars Expenditures by Function

5 HUMBOLDT UNIFIED SCHOOL DISTRICTSTATE Student/Teacher Ratio Average Teacher Salary $ 37, $ 42, $ 43,437.00* $ 44, Average Year's Experience *Prop 301 $ not included...HUSD distributes more to teachers than most other districts HUSD Comparative Information

6 PROPOSITION 301 (Teachers, Librarians, Counselors, Speech Therapists, Nurses) ► Formula driven, based on State sales tax revenues ► Distributed to districts by “per-pupil” allocations, 92% of total directly to teachers, 8% for teacher professional development = $3, = $5, = $5, = $5, = approx $5, = unknown

7 DO STAFF/TEACHER RATIO COMPARED TO LIKE SIZE ARIZONA DISTRICTS Prescott Unified SD12.1% (37.5/311) Cave Creek Unified SD12.2% (40/327) Flowing Wells Unified SD12.7% (38/300) Lake Havasu Unified SD13.1% (44.5/340) Chino Valley Unified SD17.3% (26/150) Humboldt Unified SD 9.1% (33/364)

8 GRANT-FUNDED POSITIONS Supplemental (CANNOT SUPPLANT) instructional and administrative services in the District. Grants pay for: ►Compensatory Education/Parental Classes - Comp Ed Grant, Immigrant Grant, Title III Grant ►Data Specialist to track NCLB academic achievement data - Title IIA ►ELL Data/Assessment - Title III ►Instructional Specialists - Title IIA ►Mentors - Title IIA, Prop 301 ►Reading Coaches/Interventionists - Reading First ►Reading Coaches at non-Reading First sites - Indian Gaming ►SPED Positions & Other Aides– IDEA, Early Childhood Block Grant, Title I ►Summer School -Title 1, Title III, Comp Ed

9 WHAT WE NOW KNOW ABOUT THE HUSD Budget

10 State reduced the HUSD budget by $818,777 ►$144,860 from Soft Capital allocation ►$673,917 from Base Support Level (M&O Fund) HUSD addressed these current year cuts by: ►Freezing Soft Capital – Approximate Savings = $563,909 ►Capitalizing on savings resulting from current year vacancies – Approximate Savings = $116,800 (32%admin. function, 33%cert, 35%class) ►Recapturing cost resulting from lower fuel prices – Approximate Savings = $71,000 ► Indirect Costs from Food and Nutrition absorbed approximate balance of $67,068

11 ADDITIONAL SAVINGS B-Bond Project ►B-Bond Project Manager eliminated, saving $500,000 to benefit additional District projects. Bond money cannot be co-mingled with M&O funds. ►Hired 2 previously M&O-funded employees to serve as Internal B-Bond Project Manager and Maintenance Director...This legally comes out of B-Bond funds--Total Savings to M&O=$74,000

12 WHAT WE “THINK” WE “MIGHT” KNOW… “MAYBE….” REGARDING THE BUDGET

13 ► HUSD is down 160 students per 100-day ADM count = Approximately a $650,000 loss of Weighted Student Count revenue in ►Increase in health benefits = 5% ~ $160,000 ►State discussed various reduction options in mid-January, Possible loss of M&O funding in the following areas: ►Base Student Level (BSL)= ~ $2 million ►Full-day Kindergarten= ~$1.2 million ►Excess utilities= ~$470,000 ►Teacher Experience Index reduced and phased out over eight years= ~$70,000 ►Soft Capital possible reduction or elimination ~ $1.3 million ►HUSD’s estimated share of this is $3.5 to $4.5 million dollars (10% to 12% of HUSD budget) INFORMATION GARNERED FROM STATE EDUC. ORGANIZATIONS (ASA, ASBA etc.) AND MEDIA REPORTS. NOT OFFICIAL INFORMATION!!!

14 DISTRICT STRATEGIES FOR

15 EFFORTS DIVIDED INTO TWO TIERS TIER I -- District budget reductions regardless of the final cuts imposed by the State---- Based on declining enrollment and prudent fiscal management. TIER II -- Potential budget reductions based on “Worse-Case Scenarios”

16 TIER I Total M&O Savings~$1,710,000 ►Eliminate 2 District Office support staff during ►Eliminate administrator performance pay for ►Eliminate a high school assistant principal position for ►Reduce administrative cell phone costs for ►Change health care eligibility requirements for part-time staff for ►Eliminate mail delivery driver & 3 maintenance staff during ►Eliminate high school copy center position for ►Reduce substitute spending during …GOOD PROGRESS!!! ►Adjust class sizes, reduce teacher positions through attrition for ►Reduce ELL teacher positions based on class needs for ►Reduce SPED/ELL aide positions based on class needs for ►Revise stipend schedule for ►Reduce M&O spending for athletics, increase pay-to-play, tax credit $ to cover High/Middle/Elementary stipends for

17 TIER II IN ADDITION TO THE $1.7 MIL TIER I SAVINGS --OTHER POTENTIAL M&O SAVINGS ►Eliminate a middle school Assistant Principal position, share 1 between BMMS and GHMS ►Fee-based full-day kindergarten ►175-day school year (requires State action) ►Adjust administrator wages ►Adjust certified/classified wages ►Reduce elementary specials staffing (e.g. music, P.E., library, computer) ►Reduce nursing services & other library services ►Additional certified & classified staff reductions ►Possible salary reductions/furloughs ►Employee contribution towards health premiums

18 HOW DOES A REDUCTION IN FORCE WORK?

19 REDUCTION IN FORCE (Policy CCQA, GDQA) ► Identify need to reduce staff--based on financial needs, program needs, etc. ►Recommendations to Governing Board ► Use attrition first to reduce positions ►Follow District policy to execute RIF and bring staff back after RIF ► If more reductions needed beyond attrition... ►Certified: Based on “certification” and “length of service” ►Classified: Based on “position” and “length of service” ► April 15 State contract deadline

20 AMERICAN RECOVERY AND REINVESTMENT ACT aka “FEDERAL STIMULUS PACKAGE” ► Additional Title I Grant funds--- HUSD share=Approx. $670,000 ► Additional SPED Grant funds--- HUSD share=Approx. $1.1 million ► Limitations: To SUPPLEMENT (add new) NOT SUPPLANT (pay for previous M&O expense). Temporary exception being considered ► State will receive ~$1 billion for State Fiscal Stabilization Fund. Intended to offset State budget deficit; should reduce needed cuts ► Some incentive grants with lots of strings attached ► Many unknowns at this time

21 Remember….. It is ALL OF US against the problem!!!!

22 Q&A