1. SADDLEBACK VALLEY UNIFIED SCHOOL DISTRICT BUDGET PLANNING

2. PLANNING for 2008 Review of Current Year Governor’s State Budget Proposals Projected 08/09 Budget Reductions needed to maintain solvency Timeline for implementation

3. Budget Prior to January

4. State’s Fiscal Woes State budget shortfall projected to be $16 billion in 08/09 Revenues were overestimated; still growing by 2 - 3% but income tax, sales tax and corporate taxes all lower than expected Expenses were never reduced to reflect reduced revenues Structural deficit remains unless revenues increase and/or expenses decrease

5. Steps State Has Taken Governor informed Legislature of problem - January 10th - presented his plan for recovery Governor declared State of Fiscal Emergency - required Legislature to act by February 23rd on current year shortfall Legislature enacted $2.3 B in current year reductions- February 15th - unspent funds, delaying payments and expense transfers

6. Still to Come... Current year cuts averted but 08/09 shortfall has yet to be addressed Governor and Legislative Analyst Office have both proposed reduction plans Governor proposes “across the board” method LAO proposes “targeted reductions” by priority We must budget using proposal that provides the least revenue so as to not experience a shortfall.

7. Impact of Governor’s State Budget Proposals on SVUSD Revenue Eliminate COLA (-4.94%) plus reduction in funding (-2.05%) = -$12,569,058 Reduce Special Ed funding -$1,975,940 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

8. Our Budget after State Reductions

9. Balanced Budget A balanced budget is necessary for a school district to maintain local control In order for SVUSD to preserve its 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!

10. Our Budget after Reductions

11. Non School Reductions 1Freezing expenses and hiring$1,300,000 2 Cost containment - utilities, contracts $826,065 3 Close IRC Curriculum Center $97,977 4 Reduced Services: Warehouse, Grounds, Printing, Maintenance, Clerical, Custodial, Technology $2,338,071 5 Withhold Deferred Maintenance Transfer $1,514,501 6 Reduced Allocations for Materials$790,000 7Reduced District Administration$1,017,087 8 Eliminate Bussing except for Spec. Ed. $1,449,867 Sub total $9,333,568

12. more Non School Reductions sub-total from previous page$9,333,568 10 Continue w/o Asst Supt- Instruction and Secretary $294,788 11 Reduce Special Ed. expenses $1,367,526 12 Rollback Mgmt/Confidential Salaries $370,691 ** Total Non School Reductions $11,366,573

13. School Level Reductions 13 Eliminate classroom and choral music $940,871 14 Eliminate funding JV sports, International Baccalaureate, Field Studies and LAAP programs $866,631 15 Eliminate HS Librarians, Clerical and Activity Directors $1,155,712 16 Reduce Elem. and Intr. Asst. Principals and Psychologists $644,977 17 Shared Elementary Principals $394,655 18 Reduce HS Asst Principals and Athletic Directors $597,400 19Reduce HS graduation requirements$1,324,700 20 Change CSR gr.1 - 3 from Option 1 to Option 2 $2,243,391 Schools Total $8,168,337

14. Effect of Reductions Since 85% of our budget goes toward employee salaries and benefits... Over 240 positions eliminated Layoff notices to 287 certificated and 100 classified employees

15. Timeline Feb/March - consider holding forums to explain need for drastic reductions on March 11th - Board action to authorize certificated layoffs - notices to staff by March 15th on April 15th, Board action to authorize classified layoffs - notices to staff by April 28th May 10th final layoff notices to certificated staff May 14th- revised State revenues and Governor’s revised budget proposals June 30th Legislature to pass final budget, District budget due.

16. What You Can Do contact State legislators - fax or mail- see SVUSD website for information attend a SVUSD budget forum send questions and/or comments by email to budget.impact@svusd.orgbudget.impact@svusd.org Principals and website are best sources of accurate information