1. The K-12 Education Budget Crisis Outlook for the 2010/11 School District Budget

2. 2 10/5/2015 San Diego Unified- Quick Facts 132,000 students 225 schools –119 elementary schools –24 middle schools –30 high schools –15 atypical schools –37 charter schools 14,815 employees –Includes 6,439 classroom teachers

3. 3 10/5/2015 California’s Education Funding Disaster To date, California’s K-12 schools have been cut been cut $8.2 billion! – $3.0 billion in September ‘09 – $2.4 billion in February ‘09 –$2.8 billion May ’09 –Billions more for 2010???

4. 4 10/5/2015 State Funding Costs State Funding Cuts to San Diego Schools $90 million cut in 2008 $93 million cut in 2009 $83 million 2010 deficit 19% funding reduction in two years

5. 5 10/5/2015 SDUSD Per Pupil State Funding Decline 14% drop in per pupil funding in three years!

6. 6 10/5/2015 As Funding is Cut … Costs Continue to Rise Utility costs increase by 10-15% per year Salary costs rising at 2.5% per year Health insurance costs up 10% per year

7. 7 10/5/2015 How SDUSD Responded No Teacher layoffs in 2008 –Retirements - $10m savings from early retirements –K-3 class size increase –Cut school supply budgets More than 250 central office positions eliminated $20 million central office non-personnel cuts Streamlined operations –Reorganized departments –Increased use of technology –Reduced outside contracts

8. 8 10/5/2015 Budget Cuts Impacts On Teachers and All Staffing Levels

9. 9 10/5/2015 Budget Crisis Continues San Diego Unified continues to face an unprecedented budget crisis. –$183 million cut in the last two budget years –Another $80- $100 million in cuts needed to balance next year –Additional State budget cuts are anticipated The Board of education places a priority on the students in the classrooms. –Every effort will be made to minimize impacts on students

10. 10 10/5/2015 2010/11 State Budget Cuts to K-12: Potential Impacts on SDUSD State Deficit Budget Cuts = $8 Billion K-12 Budget Cuts = $1.0 Billion SDUSD Budget Cuts = $17 Million State Deficit Budget Cuts = $16 Billion K-12 Budget Cuts = $6.4 Billion SDUSD Budget Cuts = $110 Million Best Case Scenario Worst Case Scenario

11. 11 10/5/2015 All Funds Budget 2009/10 (In Million’s)

12. 12 10/5/2015 2009/10 General Fund Revenues (In Millions) General Fund Total: $1.226 Billion

13. 13 10/5/2015 General Fund Operating Budget 2009/10

14. 14 10/5/2015 General Fund Unrestricted Operating Budget Total 2009/10 Unrestricted Operating Budget $719.95 Million Total Salaries & Benefits 84% of Unrestricted Budget

15. 15 10/5/2015 General Fund – Restricted Operating Budget Total Restricted Budget 2009/10 $506.92 Million Total Salaries & Benefits 77% of Restricted Budget

16. 16 10/5/2015 Financial Realities 90% of targeted solutions must come from Unrestricted Operating Budget At $100 million in cuts –Represents 14% of $719 million Unrestricted Operating Budget –Salaries and Benefits are 84% of Unrestricted Operating Budget –Total non-salary/benefits $118 million Conclusion –Budget solution must include cuts to staffing levels and/or salaries and benefits

17. 17 10/5/2015 2010/11 Possible Solutions

18. 18 10/5/2015 2010/11 Possible Solutions – Requires Negotiations and/or Consultation

19. Conclusion

20. 20 10/5/2015 Legislative Advocacy Priorities Protect Federal Maintenance of Effort Protect Proposition 98 levels Protect Funding Class size reduction penalty relief Maximize Funding Opportunities for greater federal flexibility Flexibility

21. 21 10/5/2015 Education Funding At Risk No New Revenues No Republican votes, especially in election year Legislative Champions? Democrats and Republicans have other priorities K-12 is 40% of Budget Hard to close multi-billion gap without education cuts

22. 22 10/5/2015 Key Budget/Decisions Timeline Month/DateDecision /Action NovemberCommunity Outreach and Information Sharing DecemberCommunity Outreach Board Consideration of Options January-Governor’s Budget Release -Budget allocations distributed to schools FebruaryBoard decision on staffing March 15Deadline - Precautionary lay-off notices to Certificated staff AprilBoard decision on classified staff lay-offs 45 day notice required May 14Notices to Certificated staff Governor’s May Revised Budget JuneFinal budget adoption

23. 23 10/5/2015 Board Decision Options Last 2 Years No Republican votes, esp. in election year $200M Cut ## staff Used Cat. Flexibility Last 2 Years Cut more than $200 million Over 1,000 less staff Maximized use of Categorical Flexibility Shifted General Fund costs Options/Challenges Disappearing No easy choices Declining enrollment Tight timeline No additional Federal Stimulus One-time solutions limited Next Year Staff Reductions? Program Cuts? Salary/Benefit Cuts? Hybrid Approach?

24. 24 10/5/2015 Balancing Our Budget Board decision options to face deeper funding cuts Higher class sizes Special Program Cuts –GATE –Balboa Park, Old Town & Camp Palomar programs –VAPA –Magnet schools –Athletics Closing small schools Employee salary and benefit reductions Staffing reductions

25. 25 10/5/2015 Our Continuing Commitment Keep students our # 1 Priority! Search for cost savings Retain quality teachers and staff to serve students Search for new revenues to support educational programs

26. 26 10/5/2015 What Can You Do? Contact Your State Legislators – Stand Up For Education! Visit our website www.sandi.net/budget www.sandi.net/budget Subscribe to Friday Notes www.sandi.net/fridaynotes Governor’s webpage http://gov.ca.gov/ http://gov.ca.gov/

27. 27 10/5/2015 Questions and Suggestions San Diego Unified Students