The K-12 Education Budget Crisis Outlook for the 2010/11 School District Budget

2 10/5/2015 San Diego Unified- Quick Facts 132,000 students 225 schools –119 elementary schools –24 middle schools –30 high schools –15 atypical schools –37 charter schools 14,815 employees –Includes 6,439 classroom teachers

3 10/5/2015 California’s Education Funding Disaster To date, California’s K-12 schools have been cut been cut $8.2 billion! – $3.0 billion in September ‘09 – $2.4 billion in February ‘09 –$2.8 billion May ’09 –Billions more for 2010???

4 10/5/2015 State Funding Costs State Funding Cuts to San Diego Schools $90 million cut in 2008 $93 million cut in 2009 $83 million 2010 deficit 19% funding reduction in two years

5 10/5/2015 SDUSD Per Pupil State Funding Decline 14% drop in per pupil funding in three years!

6 10/5/2015 As Funding is Cut … Costs Continue to Rise Utility costs increase by 10-15% per year Salary costs rising at 2.5% per year Health insurance costs up 10% per year

7 10/5/2015 How SDUSD Responded No Teacher layoffs in 2008 –Retirements - $10m savings from early retirements –K-3 class size increase –Cut school supply budgets More than 250 central office positions eliminated $20 million central office non-personnel cuts Streamlined operations –Reorganized departments –Increased use of technology –Reduced outside contracts

8 10/5/2015 Budget Cuts Impacts On Teachers and All Staffing Levels

9 10/5/2015 Budget Crisis Continues San Diego Unified continues to face an unprecedented budget crisis. –$183 million cut in the last two budget years –Another $80- $100 million in cuts needed to balance next year –Additional State budget cuts are anticipated The Board of education places a priority on the students in the classrooms. –Every effort will be made to minimize impacts on students

10 10/5/ /11 State Budget Cuts to K-12: Potential Impacts on SDUSD State Deficit Budget Cuts = $8 Billion K-12 Budget Cuts = $1.0 Billion SDUSD Budget Cuts = $17 Million State Deficit Budget Cuts = $16 Billion K-12 Budget Cuts = $6.4 Billion SDUSD Budget Cuts = $110 Million Best Case Scenario Worst Case Scenario

11 10/5/2015 All Funds Budget 2009/10 (In Million’s)

12 10/5/ /10 General Fund Revenues (In Millions) General Fund Total: $1.226 Billion

13 10/5/2015 General Fund Operating Budget 2009/10

14 10/5/2015 General Fund Unrestricted Operating Budget Total 2009/10 Unrestricted Operating Budget $ Million Total Salaries & Benefits 84% of Unrestricted Budget

15 10/5/2015 General Fund – Restricted Operating Budget Total Restricted Budget 2009/10 $ Million Total Salaries & Benefits 77% of Restricted Budget

16 10/5/2015 Financial Realities 90% of targeted solutions must come from Unrestricted Operating Budget At $100 million in cuts –Represents 14% of $719 million Unrestricted Operating Budget –Salaries and Benefits are 84% of Unrestricted Operating Budget –Total non-salary/benefits $118 million Conclusion –Budget solution must include cuts to staffing levels and/or salaries and benefits

17 10/5/ /11 Possible Solutions

18 10/5/ /11 Possible Solutions – Requires Negotiations and/or Consultation

Conclusion

20 10/5/2015 Legislative Advocacy Priorities Protect Federal Maintenance of Effort Protect Proposition 98 levels Protect Funding Class size reduction penalty relief Maximize Funding Opportunities for greater federal flexibility Flexibility

21 10/5/2015 Education Funding At Risk No New Revenues No Republican votes, especially in election year Legislative Champions? Democrats and Republicans have other priorities K-12 is 40% of Budget Hard to close multi-billion gap without education cuts

22 10/5/2015 Key Budget/Decisions Timeline Month/DateDecision /Action NovemberCommunity Outreach and Information Sharing DecemberCommunity Outreach Board Consideration of Options January-Governor’s Budget Release -Budget allocations distributed to schools FebruaryBoard decision on staffing March 15Deadline - Precautionary lay-off notices to Certificated staff AprilBoard decision on classified staff lay-offs 45 day notice required May 14Notices to Certificated staff Governor’s May Revised Budget JuneFinal budget adoption

23 10/5/2015 Board Decision Options Last 2 Years No Republican votes, esp. in election year $200M Cut ## staff Used Cat. Flexibility Last 2 Years Cut more than $200 million Over 1,000 less staff Maximized use of Categorical Flexibility Shifted General Fund costs Options/Challenges Disappearing No easy choices Declining enrollment Tight timeline No additional Federal Stimulus One-time solutions limited Next Year Staff Reductions? Program Cuts? Salary/Benefit Cuts? Hybrid Approach?

24 10/5/2015 Balancing Our Budget Board decision options to face deeper funding cuts Higher class sizes Special Program Cuts –GATE –Balboa Park, Old Town & Camp Palomar programs –VAPA –Magnet schools –Athletics Closing small schools Employee salary and benefit reductions Staffing reductions

25 10/5/2015 Our Continuing Commitment Keep students our # 1 Priority! Search for cost savings Retain quality teachers and staff to serve students Search for new revenues to support educational programs

26 10/5/2015 What Can You Do? Contact Your State Legislators – Stand Up For Education! Visit our website Subscribe to Friday Notes Governor’s webpage

27 10/5/2015 Questions and Suggestions San Diego Unified Students