State Budget Update and LUHSD Budget Proposal

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State Budget Update and LUHSD Budget Proposal

• 2008-2010

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State Budget Overview

• The 2008-09 and 2009-10 state budget package came
  together late and with a lot of drama
• Budget language has only recently become
  available and derived from news bulletins. It is
  subject to further clarification
• K-Adult Education will experience historic
  mid-year and budget year cuts
• The news is a little better for the General Fund
  (unrestricted) and worse for catagoricals
  (restricted) and adult education
• Even with a budget finally in place, the states
  financial condition remains critical
• If revenues continue to drop, additional 2009-10
  reductions are possible. Well know more in May.

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State Budget Overview

• This proposal is a two-year package
• 2008-09 and mid-year K-adult reductions and
  funding deferrals
• 2009-10 budget proposal (with additional cuts and
  deferrals)
• Lowers the Prop 98 funding level in the current
  and budget years

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State budget overview

• Requires voter approval of seven special election
  ballot proposals
• Five of them must pass in order the plan to hold
  together
• One of them includes Lottery Securitization
  Prop 1A
• Other ballot measures- State spending cap and
  budget stabilization- Prop 1B, future restoration
  of the Prop 98 maintenance factor- Prop 1C
• Special election scheduled for May 19, 2009

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State Budget Overview

• The 17 month budget covers 08-09 mid year cuts
  and 09-10 additional cuts
• .68 COLA reduction in 2008-09 45/ada
• Additional 177 reduction per ADA in 08-09
• Reductions to categorical funds for both years
• 15.4 mid-year reduction
• 4.5 additional reduction for next year
• Adjusted target of 1 M for LUHSD general fund

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Revenues- LUHSD

• 2008-09- Loss of 2.63 from Revenue Limit
• 475,000
• Loss of 15.4 of categorical funds
• 287,000
• 2009-10- Loss of 0.96 on RL for
• 140,000
• Additional loss of 4.5 of categorical funds
• 163,000
• Loss of ADA
• 265,000
• Total losses 1,330,000 M

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2008-10 Categorical Cuts and Flexibility

• Categorical programs are now divided into three
  tiers, protecting some and providing flexibility
  to others
• Changes in effect for this year through 2013
• Tier 1
• No funding reduction, no program flexibility, no
  requirements waived
• Child nutrition
• Economic Impact Aid
• Special Education
• Home to school Transportation

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2008-10 Categorical Cuts and Flexibility

• Tier II
• Funding reduction of 20 from 2008-09 levels but
  no flexibility and programs required to operate
  according to current requirements
• Agriculture-Vocational Education

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2008-10 Categorical Cuts and Flexibility

• Tier III
• Funding reduction of 20 from 2008-09 levels but
  MAXIMUM flexibility to move funding for ANY
  educational purpose.
• All remaining K-adult Prop 98 categorical
  programs
• Examples 9th grade CSR, Community Day School,
  Arts/music/PE grant, Instructional Materials,
  Supplemental School Counseling, School Safety,
  Etc. (2.7 M this year, 2.25 M 2009-10)
• Tiers and associated flexibility are only
  associated with state programs, not federal

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2008-10 Deferrals of State

• Apportionment deferrals
• Defers 2B in RL apportionments from now to July
  09.
• Defers 1.2 B in K-14 apportionments from July 09
  to October 09.
• Defers 1.5 B in K-12 apportionments from August
  09 to October 09.
• Increases the current P2 June to July deferral
  by 340 million.
• LUHSD may need a TRAN (short term loan) to cover
  these cash shortfalls

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District Budget Planning

• Assumptions for budget planning
• Further 2009-10 reductions are possible after the
  May elections
• Additional revenue limit reductions possible
• Zero COLA thru 2010-11 likely
• Fiscal conditions will remain bad through 2010-11

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Federal Stimulus Package

• What to keep in mind
• It is one-time money. We should treat it that
  way.
• Districts wont see money until after July 1,
  2009
• First installment (about 25) may come in
  September 09
• It doesnt solve the states long term structural
  budget gap.
• Roughly 8 B of the package has already been
  spent to put the state budget together
• It may help offset one-time budget year reductions

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Proposed Balanced Budget Plan

• Guiding Directives
• Provide the highest possible quality education
  for our children is the first priority
• Preserve instructional programs and our goals for
  student achievement
• Continue open, public budget review to the
  Lemoore High Community
• Preserve extra and co-curricular programs and
  opportunities for students
• Preserve jobs and minimize lay-offs
• Apply equitably, any actions affecting salary
  schedules/benefits

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Proposed Balanced Budget Plan

• Implementation strategies
• Restructure staffing and delivery of programs,
  services and systems for improved
  cost-effectiveness and efficiency
• Reduce expenses in restricted funds in
  anticipation of increased funding flexibility

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Proposed Balanced Budget Plan

• LUHSD Outlook
• Increased costs for 2009-10
• Certificated steps 147,000
• Classified steps 24,000
• All Management 21,000
• Column moves for teachers 45,000
• Total 237,000
• Based on 2008-09

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Proposed Balanced Budget Plan

• On the table for negotiations with classified
  staff. Also an option with management staff
• Possible reductions in work year per day-
• Classified staff 13,000
• Certificated staff 45,000
• Certificated/Classified/Confidential Management
  staff 11,000
• Total Daily Payroll 69,000
• Must be negotiated

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Possible Miscellaneous cuts

• ACSA dues 10,000
• Cut Cell Phone Stipends 11,200
• Food Service Encroachment Reduction 30,000
• Athletic Transportation Reduction 20,000
• Freeze overtime 16,400
• Reduce Travel and Conference 20 45,000
• Energy Blackouts (12 am 6 am) 4,000
• Mower lease 5,000
• Motor pool 22,000
• Scoreboard 25,000
• LHS office clerical restructuring 30,000
• 10 Materials Supplies Reduction 43,000
• Subtotal 261,600
• represents a low figure

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Possible Classified staff cuts

• Accompanist
• Weekend Custodial Staff
• Attendance Clerk
• Reduce Library Technician
• Reduce Maint/Custodial Staff
• Reduce Technology Staff
• Subtotal 231,000

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Possible reductions of certificated staff

• Reduction of Substitute Costs
• Counselor
• Counselor Master Schedule days
• Academic Decathlon
• 20 Buy Back Reduction (1/2 day)
• In House detention reconfiguration
• Reduce Seven Teaching Positions at LHS
  
• NJROTC, 2 PE, 2 IT (includes lost KROP funding
  in IT dept.), Ag, 2 Non replacements
• Total Possible Certificated Reductions
  754,900

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Totals

• Miscellaneous cuts 261,000
• Classified 231,000
• Certificated 754,900
• Total 1,246,900
• Total loss of revenues 1,330,000
• Difference 83,900

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Questions?