1. Impact of Governor’s Proposal on MDUSD Budget Presented by Gary McHenry, Superintendent March 2008

2. Mid-Year Actions Under Proposition 58 The Governor has declared a “fiscal emergency” under Proposition 58, triggering the following:  The Legislature is now called into Special Session to deal with the Budget crisis  The Governor must submit a plan to address the Budget imbalance  The Legislature must adopt a plan to address the problem by March 15 (that is, within 45 days of the declaration) otherwise it may not act on any other legislation and it may not adjourn The plan must be adopted by a two-thirds vote of the Legislature, allowing the savings to take effect immediately Source: SSC, January 2008

3. State Budget Summary Compared with full funding for COLA and growth for programs in 2008-09, the Governor’s proposal cuts K-12 education by $4.4 billion  These cuts average about $740 per ADA from 2008-09 full funding levels Saying it another way... Governor’s proposal is for 2008-09 funding to be about $1.8 billion less than current year, equal to average cuts of:  $129 per ADA from Revenue Limits  $30 per ADA from Special Education  $146 per ADA from Categoricals  Total loss of about $305 per ADA from current year levels! Source: SSC, January 2008

4. 2008-09 K-12 Revenue Limits Caution: Impact of deficit depends on district-specific revenue limit 2007-08 Funded Revenue Limit* 4.94% Inflation Increase 6.99% Deficit 2.4% Cut for Average District 2008-09 Funded Revenue Limit 2008-09 Computed Base Revenue Limit 2008-09 Base Revenue Limit After Deficit 2007-08 Base Revenue Limit *Assumes mid-year cuts are absorbed by other means Source: SSC, January 2008

5. Unrestricted Revenue Limit with Fully Funded COLAs Revenue Limit with Fully Funded COLAs Current Operating 2007-08 Revenue Limit 2008-09 Revenue Limit with 4.94% COLA 2009-10 Revenue Limit with 3.0% COLA $195,636,102$204,384,238$210,129,601 Revenue Limit with Governor’s Proposal 2008-09 Revenue Limit with Net Funding of -2.5% 2009-10 Revenue Limit with 3% COLA $190,097,779$195,441,542 ($14,286,458)($14,688,059) Total $ Loss for 2008-09 and 2009-10($28,974,517) Source: MDUSD Fiscal Services, March 2008

6. Updated MDUSD Revenue Projections (Numbers in Millions) 2007-082008-092009-10 January 8 292.1 301.7 307.6 Governor’s Budget 291.1 284.4 291.2 Loss 1.0 17.3 16.4

7. MDUSD Budget: Money is in job positions UnitTotal # FTE Funding Source Cost of 1% Gen. Purpose Special Ed. Cate- gorical Restricted Main/Trans CSEA457.3331.75235.33190.24$284,750 Local One, CST272.35221.6611.8831.267.55$134,321 Local One, M&O333.26188.732.628.79133.11$186,092 MDEA1898.681479.01314.20105.47$1,311,912 MDSPA32.4023.109.30$28,785 Managers197.46145.5717.2425.137.51$219,106 Confidential15.0014.001.00$10,210 Supervisory17.00 $24,013 Total3223.482120.82591.57360.89148.17 $2,199,189

8. MDUSD Updated Unappropriated Balance Includes Board Reductions through February 25, 2008 (No salary increases) 2007-2008 $ 8,494,916 2008-2009 $ 2,691,116 2009-2010 ($ 3,530,112)

9. Employee Units CSEA = California School Employees Association Classroom Assistants, Campus Supervisors, Licensed Vocational Nurses DMA = Diablo Managers Association Principals, vice principals, student services coordinators, curriculum and program specialists, directors, classified managers, Confidential staff Local One, CST = Clerical, Secretarial, Technical School secretaries, registrars, attendance clerks, personnel assistants, accountants, computer operators Local One, M&O = Maintenance and Operations Craftsmen, painters, carpenters, mechanics, custodians, landscapers, bus drivers MDEA = Mt. Diablo Education Association Teachers, librarians, nurses, speech pathologists MDSPA = Mt. Diablo School Psychologists Association School psychologists Supervisory Custodial and Food Service supervisors

10. How do we begin? √ Start with criteria

11. Criteria for Budget Reductions I recommend the following priority order: 1.Insure campuses are safe for students and staff 2.Honor collective bargaining contracts and comply with local, state and federal mandates 3.Maintain programs for students  Analyze program effectiveness  Eliminate programs that are ineffective  Maintain programs that are effective 4.Protect as many positions as possible 5.Honor our commitments and our promises to the public e.g. Measure A and Measure C, Kindergarten Class Size Reduction 6.Affect expenditure reductions across all programs  Health and Safety – supervision of students  Cleanliness 7.Shift expenditures to grants and other funding source where possible

12. Steps: Balancing the Budget Determine the amount to be reduced Apply the methodology Comply with budget reduction criteria

13. Methodology Amount to be reduced Cost of 1% for all units Cost of 1% x Reduction Factor = Amount to be reduced/unit Cost per Unit Average cost per position = Reduction Factor = # of Positions to be Reduced

14. Methodology Example: Impact of $14 Million on MDEA unit Amount to be reduced Cost of 1% for all units Cost of 1% for unit x Reduction Factor = Amount to be reduced/unit Cost per Unit Average cost per position = Reduction Factor = # of Positions to be Reduced $14,000,000 $ 2,199,189 = 6.4 $1,311,912 x 6.4 = $8,396,236 $8,396,236 $55,290 = 152 positions

15. Amount to be reduced: $14 million UNITCOST OF 1% REDUCTION FACTOR AMOUNT CSEA$ 284,7506.4$1,822,400 LOCAL ONE, CST134,3216.4859,654 LOCAL ONE, M&O186,0926.41,190,988 MDEA1,311,9126.48,396,236 MDSPA28,7856.4184,224 DMA, CONFIDENTIAL, SUPERVISORY253,3296.41,621,305 TOTAL$2,199,189$14,074,807 UNIT COST PER UNIT AVERAGE COST/POSITION # OF POSITIONS CSEA$1,822,400$ 33,00055 LOCAL ONE, CST859,65455,42016 LOCAL ONE, M & O1,190,98857,84521 MDEA8,396,23655,290152 MDSPA184,22496,6212 DMA, CONFIDENTIAL, SUPERVISORY1,621,305100,00016 TOTAL$14,074,807

16. Example: $12 million UNITCOST OF 1% REDUCTION FACTOR AMOUNT CSEA$ 284,7505.45$1,551,888 LOCAL ONE, CST134,3215.45732,050 LOCAL ONE, M&O186,0925.451,014,202 MDEA1,311,9125.457,149,921 MDSPA28,7855.45156,878 DMA, CONFIDENTIAL, SUPERVISORY253,3295.451,380,643 TOTAL$2,199,189$11,985,582 UNIT COST PER UNIT AVERAGE COST/POSITION # OF POSITIONS CSEA$1,551,88$ 33,00047 LOCAL ONE, CST732,05055,42013.2 LOCAL ONE, M & O1,014,20257,48517.6 MDEA7,149,92155,290129 MDSPA156,87896,6211.6 DMA, CONFIDENTIAL, SUPERVISORY1,380,064100,00013.8 TOTAL$11,985,582

17. Example: $10 million UNITCOST OF 1% REDUCTION FACTOR AMOUNT CSEA$284,7504.54$1,292,765 LOCAL ONE, CST134,3214.54609,817 LOCAL ONE, M&O186,0924.54844,858 MDEA1,311,9124.545,956,080 MDSPA28,7854.54130,684 DMA, CONFIDENTIAL, SUPERVISORY253,3294.541,150,114 TOTAL$2,199,189$9,984,317 UNIT COST PER UNIT AVERAGE COST/POSITION # OF POSITIONS CSEA$1,292,765$33,00039 LOCAL ONE, CST609,81755,42011 LOCAL ONE, M & O844,85857,84514.5 MDEA5,956,08055,290107 MDSPA130,68496,6211.3 DMA, CONFIDENTIAL, SUPERVISORY1,150,114100,00011.4 TOTAL$9,984,317

18. Example: $8 million UNITCOST OF 1% REDUCTION FACTOR AMOUNT CSEA$ 284,7503.64$1,036,490 LOCAL ONE, CST134,3213.64488,929 LOCAL ONE, M&O186,0923.64677,375 MDEA1,311,9123.644,775,360 MDSPA28,7853.64104,778 DMA, CONFIDENTIAL, SUPERVISORY253,3293.64922,118 TOTAL$2,199,189$8,005,049 UNIT COST PER UNIT AVERAGE COST/POSITION # OF POSITIONS CSEA$1,036,490$33,00031.4 LOCAL ONE, CST488,92955,4209.0 LOCAL ONE, M & O677,37557,84512 MDEA4,775,36055,29086 MDSPA104,77896,6211.1 DMA, CONFIDENTIAL, SUPERVISORY922,118100,0009.2 TOTAL$8,005,049

19. How do we begin? Some Critical Questions: How much is budgeted in particular departments? What programs and services are provided? Which programs and services are legally required?

20. Departments Affected District Operations Educational Services  Alternative Education  Curriculum and Instruction  Student Services  Special Education  School Sites Fiscal Services Maintenance and Operations  Custodial and Landscape Personnel Research and Evaluation Technology and Information Services

21. Possible Programs/Services Impacted Athletics Budget Development Campus Cleanliness Campus Safety Class Size Reduction Clerical Support Curriculum Development Recruitment, Hiring, Retention School Site Support Services to Students with Special Needs Student Services Testing and Assessment Textbook Adoption Visual and Performing Arts

22. Review of General Fund Budget ALTERNATIVE EDUCATION Program Budget FTE General Purpose $4,255,146.32 22.572 Special Education909,204.561.067 Special Projects8,183,502.1619.616 Total$13,347,583.0443.255

23. ALTERNATIVE EDUCATION SERVICES Continuation High Schools Home Study Independent Study Small but Necessary High Schools Special Education Extended Year Program Spring/Summer Intervention Transitional Learning Programs Work Experience

24. Review of General Fund Budget CURRICULUM AND INSTRUCTION Program Budget FTE General Purpose $ 5,513,939.0066.51 Special Projects19,836,459.3698.32 Total$25,350,398.36164.83

25. CURRICULUM AND INSTRUCTION SERVICES 4th and 5th grade PE prep All categorical programs, e.g. GATE, Title I Beginning Teacher Support, Peer Assistance and Review Curriculum development Elementary instrumental and choral music English as a second language Instructional administration Library processing and services Principals’ training School Improvement Teacher training and professional development Textbook adoption

26. Review of General Fund Budget PERSONNEL SERVICES Program Budget FTE General Purpose $5,522,003.9517.000 Special Projects1,439,662.2627.729 Total$6,961,666.2144.279

27. PERSONNEL SERVICES Certificated and Classified Employee Recruitment Certificated and Classified Substitutes Classified Employee Training and Professional Development Credential and No Child Left Behind (NCLB) Monitoring and Compliance Employment Services Labor Relations and Contract Management Negotiations Personnel Services Post Retirement Contracts Professional Development

28. Review of General Fund Budget RESEARCH AND EVALUATION Program Budget FTE General Purpose $497,084.224.75 Special Projects175,467.71 Total$672,551.93 4.75

29. RESEARCH AND EVALUATION Enrollment Projections Facilities Study Program Evaluation Research and Evaluation School Boundaries Testing and Assessment

30. Review of General Fund Budget STUDENT SERVICES Program Budget FTE General Purpose$2,407,711.4424.725 Special Education52,361.41 Special Projects4,849,479.4746.465 Total$7,309,552.3271.190

31. STUDENT SERVICES AB1113 School Safety and Violence Attendance Accounting Career Center Child Welfare and Attendance Community Day School District Wide Home and Hospital Drop Out Prevention and Recovery Foster Youth Health and Nursing High School Counseling and Supplemental Counseling Opportunity Program Safe and Drug Free Schools Saturday School Services for Section 504 Students Student Services Suspensions and Expulsions Title I Neglected Title IV

32. Review of General Fund Budget SPECIAL EDUCATION Program Budget FTE General Purpose$ 70,913.741.0 Special Education57,494,265.32600.02 Special Projects8,077,531.06126.63 Total$65,642,710.12727.65

33. SPECIAL EDUCATION SERVICES Assessment services Assistive technology Behavioral services Counseling Free and appropriate public education (FAPE) In-house Mental Health Collaborative and mental health services Managing students’ Individual Education Plans Non-public schools and agencies Nursing and psychological services Occupational and physical therapy Parent Liaison services Preschool for students with disabilities Special Education Consent Decree Speech language therapy Students with special needs Teaching Testing and assessment

34. Review of General Fund Budget MAINTENANCE AND OPERATIONS Program Budget FTE General Purpose $21,138,513.94191.20 Special Projects764,746.190.5 Restricted Maintenance and Transportation12,993,981.20149.38 Total$34,897,241.43341.08

35. MAINTENANCE AND OPERATIONS SERVICES ADA compliance Building security Building trades Capital outlay and facility work Custodial administration Facility acquisition and construction Heating, ventilation, air conditioning Landscape Maintenance and repair Measure A construction Measure C construction Mechanical trades Mobile maintenance Playground equipment Plumbing and electrical Restroom renovation Transportation