Understanding the FY2010 Budget Reduction

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Understanding the FY2010 Budget Reduction
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(No Transcript)
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FY 2008
FY 2009
FY 2010
FY 2011
FY 2012
FY 2008
FY 2009
FY 2010
FY 2011
Tintic Backfill
2.1
6.3
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4.5
6.1
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Legislative Concerns

• Unemployment lags 18 months behind the recession
• Tax revenue lags 18 months behind unemployment

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• Increases in unemployment and decreases in tax
  revenue are highly probable and could result in
  additional reductions for FY 2010.

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Employee Input

• What ideas do you have for helping the District
  reduce costs?

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Job Actions

• Specific job cut recommendations (8)
• RIF (6)
• Cut full-time classified employees to part-time
  (3)
• Make cuts in the school lunch program (3)
• Adopt a four-day week (3)
• Combine job descriptions
• Consider contracted custodial services

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Insurance / Retirement Recommendations

• Cut full-time classified to part-time (3)
• No dual insurance coverage (3)
• Provide an early retirement incentive (2)
• Provide an incentive to drop district insurance
• Have the minimum hours standard to receive
  insurance

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Program Cuts and Recommendations

• Combine boys and girls games for athletics (4)
• Cut field trips (3)
• Equalize class loads at Tintic High School (3)
• Enroll more students in CTE courses to generate
  revenue (2)
• Reduced technology support
• Charge programs for transportation
• Reduce the school board stipend

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Purchasing Recommendations

• Buy used buses
• Reduce supply expenses
• Standardize products in purchasing

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Increasing Revenue

• Grants
• Enroll more students in CTE courses to generate
  revenue (2)

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Other Recommendations

• Make cuts equitable for all employees across
  the district (5)
• Make sure we value teachers (3)
• Look at what other districts are doing

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Employee Input

• What ideas do you have for helping the District
  reduce costs?
• Understanding that 73 of District expenses come
  in the form of salary and benefits what are your
  feelings for making cuts in those areas?

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Employee Input
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The Real Cost

• 312,754

103,844 FY08 Deficit
208,910 FY10 Reduction
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Job Actions
312,754

• RIF 103,938
• Combine job descriptions 38,633

170,183
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Program Cuts and Recommendations
170,183

• School Lunch 20,000
• School Site Based Funds 67,987

82,196
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Increasing Revenue
82,196

• Grants 13,000
  

69,196
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Salary Reduction
69,196

• 2 Furlough Days for ALL employees 11,301 per day

22,602
46,594
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Insurance Benefits
46,594

• Eliminate dual and part-time insurance options

6,594

• Employees each pay a percentage of their
  insurance benefits equal to 40,000 plus any new
  increases

40,000
0
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Our review of District finances revealed that
there are inequities that have developed over the
years with some employees. We recommend the
following be standardized
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1. Insurance benefits be made available only to
full time employees (35 hrs.)
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2. Standardize the number of hours for full-time
classified employees to 35 per week.
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Other Ideas to be Implemented

• Combine boys and girls games for athletics (4)
• Cut field trips (3)
• Enroll more students in CTE courses to generate
  revenue (2)
• Charge programs for transportation
• Buy used buses
• Reduce supply expenses
• Standardize products in purchasing

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These ideas will likely reduce our overall costs.
There is no way to project how much will be
saved. Any savings from these actions will be
used to help during FY 2011.
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Post Retirement Benefits

• Current liability is 530,377
• Current Assets are 254,444
• We are out of compliance with GASB 34.
• These costs are not fixed and increase yearly
  with salary and benefit costs.

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Recommendation

• Set a deadline for retirement under the current
  system. (Preferably June 30, 2009)
• Create a new retirement benefit that is GASB 34
  compliant. (Fixed cost and not post retirement)

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Before the Great Depression the Tintic Standard
Mining Co. was in full production in the
community of Dividend.
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Once into the Depression the company could see no
way to survive except by laying off 50 of their
employees.
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The employees got together and presented a plan
to the company.
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The result. . .
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Each employee worked only ½ time until the
company was back on its feet.