1. Budget Update January 5 th, 2009

2. What’s out there Three plans being floated – Governor’s – Democratic – Republican Plans broken out by Revenues and Cuts

3. Data Sources Information for this presentation has been taken from Sacramento Bee articles from December – Republicans, Democrats and Gov. Arnold Schwarzenegger now each have a plan to help reduce the state's roughly $40 billion deficit estimated between now and June 30, 2010. Estimates for Schwarzenegger's Nov. 6 plan have been updated to reflect later implementation dates. Other information has been taken from various news releases through the Ed Coalition

4. Governor’s Plan – Nov. 6th Revenues$13 Billion Cuts$9.3 Billion Total$22.3 Billion Projected budget shortfall -$40 Billion Governor’s plan short by - $17.7 Billion

5. Governor’s Plan Revenue: $13 billion $9.1 billion by raising the sales tax by 1.5 cents on the dollar for three years. $1.4 billion by imposing sales taxes on some services and activities that currently aren't taxed, such as golf fees, amusement parks, sporting events, veterinary treatment, and vehicle repair. $1.2 billion by imposing a 9.9 percent per barrel tax on oil extracted from California. $829 million by raising the excise tax on alcohol by 5 cents a drink. $451 million by raising annual vehicle registration fees by $12 per vehicle.

6. Governor’s Plan Cuts: $9.3 billion $3.2 billion by cutting K-14 education. $1.4 billion by reducing monthly grants to the federal minimum for low-income aged, blind and disabled on Supplemental Security Income/State Supplemental Program. $1 billion by reducing welfare grants by 10 percent, cutting benefits at 60 months for some recipients and requiring reviews every six months. $782.1 million by furloughing state employees one day a month and eliminating Columbus Day and Lincoln's Birthday as paid state holidays.

7. Governor’s Plan Cuts: $9.3 billion - continued $719.5 million to Medi-Cal by eliminating some treatment options, limiting benefits for some legal immigrants and raising the income eligibility requirements to pre-2000 levels. $608 million by eliminating parole supervision for all but those who have committed serious, violent or sexual crimes. $494 million by cutting transit grants. $311.3 million in cuts to in-home supportive services workers. $264 million in cuts from UC and CSU.

8. Governor’s Plan - Education Eliminates the 0.68% COLA Reduces revenue limits by 4.5% to 5% Categorical fund flexibility

9. Democratic Plan – Nov. 25th Revenues$8.1 Billion Cuts$9 Billion Total$17.1 Billion Projected budget shortfall -$40 Billion Democrat plan short by - $22.9 Billion

10. Democratic Plan Revenue: $8.1 billion $5.7 billion by restoring the vehicle license fee to 2 percent of the vehicle's depreciated value. $2.4 billion through an income tax increase by freezing the 2008 brackets rather than letting them adjust with inflation.

11. Democratic Plan Cuts and shifts: $9 billion $4.5 billion cut to K-12 schools and community colleges. $657 million in savings by cutting state employee pay (details to be negotiated through collective bargaining) $132 million from UC and CSU. $656 million grant cuts to recipients of SSI/SSP program for low-income elderly, blind and disabled. Cut prisons $568 million

12. Democratic Plan Cuts and shifts: $9 billion - continued $100 million to cuts cost of living for CalWORKS. $750 million general fund cut for local law enforcement (although $510 million would be restored by using special funds). $112 million in cuts to regional centers for the developmentally disabled. $156 million in local transit funds.

13. Democratic Plan - Education Eliminates the 0.68% COLA Categorical fund flexibility Reduces charter school block grant funding

14. Democratic Plan - Education Reduces current year appropriations for various categorical programs by $1.8 Billion. Largest cuts include: – Instructional Materials$417 million – Deferred Maintenance$277 million – Professional Development$273 million – School Library $230 million – High Priority Schools$114 million – Art and Music$109 million

15. Republican Plan – Dec. 15 th Revenues$6.5 Billion Cuts$15.6 Billion Total$22.1 Billion Projected budget shortfall -$40 Billion Republican plan short by - $17.9 Billion

16. Republican Plan Revenue: $6.5 billion, including $2.1 billion by asking voters to redirect Proposition 10 funds approved for early childhood programs. $3.9 billion by asking voters to redirect Proposition 63 funds approved for mental health programs. $484 million through various fund transfers and loan payment delays.

17. Republican Plan Cuts: $15.6 billion $10.6 billion cut to K-12 schools and community colleges. $1.3 billion by reducing grants to recipients of SSI/SSP program for low-income elderly, blind and disabled. $1 billion by suspending cost-of-living increase for welfare recipients, cutting grants by 10 percent and limiting eligibility. $802.5 million by furloughing state employees one day a month and eliminating Columbus Day and Lincoln's Birthday as paid state holidays.

18. Republican Plan Cuts: $15.6 billion - continued $738 million in cuts to UC and CSU by cutting 10 percent across the board, increasing student-faculty ratio and eliminating in-state tuition for undocumented immigrants. $716 million to Medi-Cal, including eliminating certain benefits, reducing eligibility and lowering hospital reimbursement rates. $459.6 million by eliminating funding for transit agencies. $269.5 million in cuts to In-Home Supportive Services program.

19. Republican Plan Cuts: $15.6 billion - continued $205 million cut to the judiciary. $57.4 million to prisons by expanding use of GPS for parolees. $26.2 million in cuts to the Legislature, including a 5 percent cut to legislators' pay. $85.5 million in cuts to regional centers for the developmentally disabled.

20. Republican Plan - Education $2.8 Billion – this current year – Reduces revenue limits – Reduces deferred maintenance $7.85 Billion – 09/10 – Further reduces revenue limits – Reduces after school programs Categorical flexibility

21. Interesting to note… “Finally, here's some sobering budget math: If you took every cut Republicans proposed (from eliminating transit funds to cutting payments for the aged, blind and disabled to $10.6 billion from schools) and added it to every tax the Democrats propose to raise (tripling the car tax and suspending the indexing of tax rates), you'd still only solve $23.7 billion of the nearly $40 billion deficit.” (From Sacramento Bee, December 16 th )

22. How might this affect us? No way of knowing how the cuts will be assessed (which programs, funds, revenue limits, etc.) VERY rough guesstimation is to look at a per student cost to California – Estimate 6.2 million K-12 students in CA – Estimate RBJUHSD ADA of 1850 Not too accurate, but allows a sense of scale

23. Plan comparision – impact Governor’s plan – $3.2 Billion = $516 / student – About $0.95 million to RBJUHSD – 4.8% cut Democratic plan – $4.5 Billion = $726 / student – About $1.4 million to RBJUHSD – 7% cut Republican plan – $10.6 Billion = $1710 / student – About $3.2 million to RBJUHSD – 16% cut

24. Next? Governor will release his new plan on January 9 th addressing the nearly $40 billion budget shortfall Legislature will need to act quickly, but hasn’t shown any willingness to do that so far Keep in mind, all these cuts are in addition to loss of revenue due to declining enrollment

25. What we are prepared to do... Use MAA funds to cover costs of certificated retiree salaries and benefits for those who notify us by January 15, 2009, that they will be retiring by June, 2011. Potential savings to our “on-going” costs is unknown, but a conservative estimate is $200,000, or 1.05% of our total budget.

26. What we are prepared to do... Reduce personnel costs via staff reductions, retirements, and reassignments by $680,000, which equates to 3.62% of our total budget List other possible cuts and the potential savings Continue to use the Joint Working Committee to facilitate this process

27. Questions?