1. MDUSD Budget Reductions December 2009

2. MDUSD Budget June 30, 2009 Included Board approved reductions of 30.6 million to 2009-10 year Budget was balanced through June 2012 Based on budget revenue information known at that time County Board of Education approved budget

3. Management Reductions Assistant Superintendent Senior Administrative Assistant Director of Classified Personnel Director of Purchasing Administrative Assistant to the Superintendent/Communications Specialist Internal Auditor Workers Compensation Manager Personnel Coordinator Curriculum Specialist Database Administrator

4. Management Reductions Director of Maintenance and Operations Assistant Director of Maintenance and Operations Supervisor of Technology Customer Service 3 Elementary Vice Principals 4 Middle School Vice Principals 3 High School Vice Principals Classified Training Coordinator Program Specialist Landscape Supervisor Director of Budget Director of Research and Evaluation

5. Revenue Limit Cut 3 deficit factors drop revenue limit 22.3% –Base Revenue Limit = $6,370.02 * ADA –Deficit Factor 1 (no COLA for 2 years) drops to $5,783.02 –Deficit Factor 2 (additional cut to base) drops to $5,200.79 –Deficit Factor 3 (one time cut to base) drops to $4,947.96 –Total Cut to funding is $45,788,476 Note: Deficit factors 1 & 2 are ongoing and could increase

6. Revenue Limit Reductions

7. October Student Loss

8. Cumulative October Student Loss

9. Impact of Declining Enrollment If lose 30 students, cut one teacher, so whats the problem? 30 students * $5,000 = $150,000 Teacher cost < 70,000 Net impact is > 80,000 May not be able to eliminate teacher, so impact could be greater

10. Balancing the Budget Minimum in cumulative reductions over a three year period just to get by: 17.2 million Minimum in ongoing reductions needed to resolve the expenditure/revenue gap: 15-17 million Gap may increase if there are mid-year reductions If we wait until next year to make cuts, well have to cut deeper

11. Item09-1010-1111-12RecommendUnit 1 Eliminate 4 FTE remaining middle and high school librarian positions $255,236 MDEA 2 * Eliminate 3.6 librarian FTE associated with Elementary Reduced Class Size $229,712 $459,425MDEA 3 Use a parcel tax to pay for student programs and/or critical services. ` 4 * Reduce all Special Education services that are not mandated by state or federal law or included in the student's Individual Education Plan (IEP). $1,000,000 $2,000,000MDEA CSEA DMA CST 5 * Close schools. Cost savings would result from the reduction in administrative and classified positions and in utility savings if the campus is not used. At Elementary Schools, following positions would be reduced: Principal, Office Manager, Elementary Head Custodian, PM Custodians, Elementary School Secretary. $1,500,000 DMA CST M&O 6 * Transfer additional Tier 3 categorical program allocations to the unrestricted general fund $1,000,000 $2,000,000 7 * Eliminate Parent Subsidized Busing Program $405,486 $810,972M&O

12. 8 * Reduce Custodial Substitute Policy from "First Day Out" to "Second Day Out" threshold $39,000 $78,000M&O 9 * Reduce unrestricted material and supply budgets (object code 4300) by 10% $266,804 $533,608 10 * Delay purchase of textbooks and materials for language arts adoption for one year. Transfer funds to unrestricted fund balance. $2,500,000$0$2,500,000 11 * Increase minimum class size to 28 students or 80% of contractual maximum. $1,000,000 $2,000,000MDEA 12 * Transfer additional State funding for Deferred Maintenance to the Unrestricted General Fund $500,000 $1,500,000

13. Following Items Require Negotiations 13 Implement retirement incentive program for certificated employees. MDEA 14 Eliminate employee assistance program $109,000 All 15 Increase payment in lieu of medical benefits for all employee groups and members who have dual coverage. Non MDEA 16 * Limit non MDEA health care costs to current level of funding. 891,7542,698,052$3,589,806All except MDEA TOTAL $16,971,811