1. HUSD Budget Update March, 2009

2. 2 HOW DOES HUSD “STACK UP” AMONG DISTRICTS IN ARIZONA Office of the Arizona Auditor General Special Study--Fiscal Year 2008

3. 3 HUSD Classroom Dollars Fiscal year 2008 averages per pupil HUSD ranks 36 th out of 230 total AZ districts = top 16% HUSD ranks 4 th out of 39 “large” AZ districts (5,000 to 19,999 students) = top 10% (State Average is 57.1%)

4. 4 Percentage DISTRICT STATE 20042005200620072008 Classroom Dollars57.660.559.361.860.157.3 Nonclassroom Dollars -Administration (Nat. Avg. 11%) 9.38.3 9.08.19.2 -Plant Operations11.610.110.89.910.311.3 -Food Service5.35.55.4 5.54.8 -Transportation (high due to HUSD being rural: 200+ square miles) 7.06.96.65.26.04.4 -Student Support7.46.76.85.96.57.4 -Instruction Support1.82.02.8 3.55.4 -Other 0.2 HUSD Classroom Dollars Expenditures by Function

5. 5 HUMBOLDT UNIFIED SCHOOL DISTRICTSTATE 200620072008 Student/Teacher Ratio19.617.317.417.3 Average Teacher Salary $ 37,830.00 $ 42,214.00 $ 43,437.00* $ 44,967.00 Average Year's Experience9.78.89.08.1 *Prop 301 $ not included...HUSD distributes more to teachers than most other districts HUSD Comparative Information

6. 6 PROPOSITION 301 (Teachers, Librarians, Counselors, Speech Therapists, Nurses) ► Formula driven, based on State sales tax revenues ► Distributed to districts by “per-pupil” allocations, 92% of total directly to teachers, 8% for teacher professional development 04-05 = $3,908 05-06 = $5,735 06-07 = $5,533 07-08 = $5,756 08-09 = approx $5,000 09-10 = unknown

7. 7 DO STAFF/TEACHER RATIO COMPARED TO LIKE SIZE ARIZONA DISTRICTS Prescott Unified SD12.1% (37.5/311) Cave Creek Unified SD12.2% (40/327) Flowing Wells Unified SD12.7% (38/300) Lake Havasu Unified SD13.1% (44.5/340) Chino Valley Unified SD17.3% (26/150) Humboldt Unified SD 9.1% (33/364)

8. 8 GRANT-FUNDED POSITIONS Supplemental (CANNOT SUPPLANT) instructional and administrative services in the District. Grants pay for: ►Compensatory Education/Parental Classes - Comp Ed Grant, Immigrant Grant, Title III Grant ►Data Specialist to track NCLB academic achievement data - Title IIA ►ELL Data/Assessment - Title III ►Instructional Specialists - Title IIA ►Mentors - Title IIA, Prop 301 ►Reading Coaches/Interventionists - Reading First ►Reading Coaches at non-Reading First sites - Indian Gaming ►SPED Positions & Other Aides– IDEA, Early Childhood Block Grant, Title I ►Summer School -Title 1, Title III, Comp Ed

9. 9 WHAT WE NOW KNOW ABOUT THE 2008- 2009 HUSD Budget

10. 10 State reduced the HUSD budget by $818,777 ►$144,860 from Soft Capital allocation ►$673,917 from Base Support Level (M&O Fund) HUSD addressed these current year cuts by: ►Freezing Soft Capital – Approximate Savings = $563,909 ►Capitalizing on savings resulting from current year vacancies – Approximate Savings = $116,800 (32%admin. function, 33%cert, 35%class) ►Recapturing cost resulting from lower fuel prices – Approximate Savings = $71,000 ► Indirect Costs from Food and Nutrition absorbed approximate balance of $67,068

11. 11 ADDITIONAL SAVINGS B-Bond Project ►B-Bond Project Manager eliminated, saving $500,000 to benefit additional District projects. Bond money cannot be co-mingled with M&O funds. ►Hired 2 previously M&O-funded employees to serve as Internal B-Bond Project Manager and Maintenance Director...This legally comes out of B-Bond funds--Total Savings to M&O=$74,000

12. 12 WHAT WE “THINK” WE “MIGHT” KNOW… “MAYBE….” REGARDING THE 2009-2010 BUDGET

13. 13 ► HUSD is down 160 students per 100-day ADM count = Approximately a $650,000 loss of Weighted Student Count revenue in 2009-2010 ►Increase in health benefits = 5% ~ $160,000 ►State discussed various reduction options in mid-January, 2009. Possible loss of M&O funding in the following areas: ►Base Student Level (BSL)= ~ $2 million ►Full-day Kindergarten= ~$1.2 million ►Excess utilities= ~$470,000 ►Teacher Experience Index reduced and phased out over eight years= ~$70,000 ►Soft Capital possible reduction or elimination ~ $1.3 million ►HUSD’s estimated share of this is $3.5 to $4.5 million dollars (10% to 12% of HUSD budget) INFORMATION GARNERED FROM STATE EDUC. ORGANIZATIONS (ASA, ASBA etc.) AND MEDIA REPORTS. NOT OFFICIAL INFORMATION!!!

14. 14 DISTRICT STRATEGIES FOR 2009-2010

15. 15 EFFORTS DIVIDED INTO TWO TIERS TIER I -- District budget reductions regardless of the final 09-10 cuts imposed by the State---- Based on declining enrollment and prudent fiscal management. TIER II -- Potential budget reductions based on “Worse-Case Scenarios”

16. 16 TIER I Total M&O Savings~$1,710,000 ►Eliminate 2 District Office support staff during 2008-09 ►Eliminate administrator performance pay for 2009-10 ►Eliminate a high school assistant principal position for 2009-10 ►Reduce administrative cell phone costs for 2009-10 ►Change health care eligibility requirements for part-time staff for 2009-10 ►Eliminate mail delivery driver & 3 maintenance staff during 2008-09 ►Eliminate high school copy center position for 2009-10 ►Reduce substitute spending during 2008-09…GOOD PROGRESS!!! ►Adjust class sizes, reduce teacher positions through attrition for 2009-10 ►Reduce ELL teacher positions based on class needs for 2009-10 ►Reduce SPED/ELL aide positions based on class needs for 2009-10 ►Revise stipend schedule for 2009-10 ►Reduce M&O spending for athletics, increase pay-to-play, tax credit $ to cover High/Middle/Elementary stipends for 2009-2010

17. 17 TIER II IN ADDITION TO THE $1.7 MIL TIER I SAVINGS --OTHER POTENTIAL M&O SAVINGS ►Eliminate a middle school Assistant Principal position, share 1 between BMMS and GHMS ►Fee-based full-day kindergarten ►175-day school year (requires State action) ►Adjust administrator wages ►Adjust certified/classified wages ►Reduce elementary specials staffing (e.g. music, P.E., library, computer) ►Reduce nursing services & other library services ►Additional certified & classified staff reductions ►Possible salary reductions/furloughs ►Employee contribution towards health premiums

18. 18 HOW DOES A REDUCTION IN FORCE WORK?

19. 19 REDUCTION IN FORCE (Policy CCQA, GDQA) ► Identify need to reduce staff--based on financial needs, program needs, etc. ►Recommendations to Governing Board ► Use attrition first to reduce positions ►Follow District policy to execute RIF and bring staff back after RIF ► If more reductions needed beyond attrition... ►Certified: Based on “certification” and “length of service” ►Classified: Based on “position” and “length of service” ► April 15 State contract deadline

20. 20 AMERICAN RECOVERY AND REINVESTMENT ACT aka “FEDERAL STIMULUS PACKAGE” ► Additional Title I Grant funds--- HUSD share=Approx. $670,000 ► Additional SPED Grant funds--- HUSD share=Approx. $1.1 million ► Limitations: To SUPPLEMENT (add new) NOT SUPPLANT (pay for previous M&O expense). Temporary exception being considered ► State will receive ~$1 billion for State Fiscal Stabilization Fund. Intended to offset State budget deficit; should reduce needed cuts ► Some incentive grants with lots of strings attached ► Many unknowns at this time

21. 21 Remember….. It is ALL OF US against the problem!!!!

22. 22 Q&A