SADDLEBACK VALLEY UNIFIED SCHOOL DISTRICT MAY REVISE for

PLANNING for 2008 Governor’s Revised State Budget Proposals Revised Reductions needed to maintain solvency Timeline

State’s Fiscal Woes Leading Indicators still negative: Job growth is flat Personal Income projected lower CPI was 2.6% now at 3.4% State Credit Rating is 49th out of 50 states State budget shortfall projected to be $17 billion; $500 for every person in California vs $2800 in Revenue

COLA has increased to 5.66% from 4.94% but still not funded Deficit to Revenue Limit and Special Education have been removed ALL other State funding receives no COLA and reduced funding (-5.66% plus -6.5% = % Flexibility Options = no new revenue, bipartisan support? May Revise for Education

Impact of Governor’s May Revise on SVUSD Revenue Eliminate COLA (-4.94% 5.66%) plus reduction in funding (-2.05%) = - $12,569,058 - $8,144,064 Reduce Special Ed funding -$1,975,940 - $265,334 Reduced funding for other programs i.e. Summer School, CSR, Transportation etc. -$1,628,183 SVUSD also has less students - $2,400,000 and cost increases - $726,819 TOTAL = -$19,300,000 - $13,164,400

Adding $6.1 million Preserves 90.5 fte. Elementary Programs: Option One CSR in 1st grade, LAAP, Instrumental music and school site administration Intermediate Programs: Assistant Principals High School Programs: IB, 7 period day, some Librarians, Activity Directors and Assistant Principals No rollback in salaries, District Receptionist DistrictDreceptioReceptionistpreserve fiscal status i.e. a district that can meet its financial obligations for the current year plus the following two years....reductions in expenses are required. For SVUSD $19,300,000 in reductions must be made!

Unfortunately... Still eliminating over 150 fte. Loss of Choral music, some CSR, Librarians, Secretaries, Clerks, Custodians Reduced Graduation requirements and reduced School Site funding Major reductions in Centralized Services - IRC, Surplus Warehouse, Delivery, Print Shop, Textbooks...

Still to Come... Must adopt our budget by June 30th (mtgs. 6/10, 6/24) Governor’s Revenue proposals (borrowing against Lottery income vs. increased sales tax) considered D.O.A. Legislative Analyst proposes more current year reductions = “nearly impossible” Predictions are for a protracted budget debate “Consider the May Revise the floor not the ceiling” -Kevin Gordon, CEO School Innovations and Advocacy