1. WINSTON-SALEM/FORSYTH COUNTY SCHOOLS 2012-13 BUDGET PREVIEW

2. First, the Good News! Projected local budget surplus in 2011-12, which, except for items listed on subsequent slides, should continue to be available in 2012-13 $9.0 million Savings from remainder of local assistant positions due to be eliminated June 30 $0.75 million

3. Funding Losses Federal Jobs Bill Funds $10.5 million Race-to-the-Top Funds Used to Pay Equity+ Bonuses in 2011-12, but not Available in 2012-13 $1.8 million Carryover exhausted in Federal Title II CSR $0.4 million

4. Other Expected Funding Needs “Temporary” Salary Savings in 2011-12 $175,000 Already Enacted Increase in Matching Ret. $1.5 million Already Enacted Increase in Discretionary Reduction$2.0 million Anticipated Increase in Matching Health Ins. $325,000

5. Other Potential Funding Needs Projected Increases in Utility Rates Potential for Matching Legislated Pay Increases Potential Losses of Other Federal Funds

6. Pent-up Needs Due to Budget Cuts Activity Bus Replacements Computer Replacements Textbook Adoptions Staff Development Other replacements/enhancements of technology and other tools

7. Other Potential Sources of Funds Use Some Portion of Fund Balance That is Accumulated in 2011-12 Modify and/or Find Another Funding Source for Equity+ Bonuses County Funding (Implementation of Funding Formula?)

8. Bottom Line Sources of Funds$9,750,000 Funding Needs -$16,700,000 Potential Funding Shortfall -$6,950,000 Does Not Take Into Account Pent-up Funding Needs or Potential Funding Sources

9. First Steps Determine How Much Fund Balance to Use Determine the Impact of Equity+ Bonuses Continue to Monitor the Potential for Additional State Cuts Continue to Work Toward Implementation of a County Funding Formula

10. Discuss Ideas for Permanent Cuts Permanent Pay Cuts? – Central Office/12-month Classified – Supplements (a small percentage of all supplements; just masters’; combination) – Special Supplements – Hourly

11. Discuss Ideas for Permanent Cuts Eliminate Central Office Positions? Continue Converting to Contract Cleaning? “Trial Employment” Temporary Staffing? New Instructional Delivery Model for AIG? Teacher Assistant/PRT Allotment Formula? Reduce Need for Substitutes?

12. Summary Picture is Somewhat Brighter Than Anticipated Use of Fund Balance can Help at Least Delay Some of the Pain Still Hope to Avoid RIFs Still Hope to Avoid Class Size Increases Still Lots of Unknowns

13. Next Steps Seek Input from the Board Empower a Study Group Begin Discussions of Ideas and Alternatives Continue to Monitor and Update State and County Funding Projections