SADDLEBACK VALLEY UNIFIED SCHOOL DISTRICT

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SADDLEBACK VALLEY UNIFIED SCHOOL DISTRICT

• BUDGET PLANNING

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PLANNING for 2008

• Review of Current Year
• Governors State Budget Proposals
• Projected 08/09 Budget
• Reductions needed to maintain solvency
• Timeline for implementation

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Budget Prior to January
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States Fiscal Woes

• State budget shortfall projected to be 16
  billion in 08/09
• Revenues were overestimated still growing by 2 -
  3 but income tax, sales tax and corporate taxes
  all lower than expected
• Expenses were never reduced to reflect reduced
  revenues
• Structural deficit remains unless revenues
  increase and/or expenses decrease

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Steps State Has Taken

• Governor informed Legislature of problem -
  January 10th - presented his plan for recovery
• Governor declared State of Fiscal Emergency -
  required Legislature to act by February 23rd on
  current year shortfall
• Legislature enacted 2.3 B in current year
  reductions- February 15th - unspent funds,
  delaying payments and expense transfers

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Still to Come...

• Current year cuts averted but 08/09 shortfall has
  yet to be addressed
• Governor and Legislative Analyst Office have both
  proposed reduction plans
• Governor proposes across the board method
• LAO proposes targeted reductions by priority
• We must budget using proposal that provides the
  least revenue so as to not experience a shortfall.

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Impact of Governors State Budget Proposals on
SVUSD Revenue

• Eliminate COLA (-4.94) plus reduction in funding
  (-2.05) -12,569,058
• Reduce Special Ed funding -1,975,940
• Reduced funding for other programs i.e. Summer
  School, CSR, Transportation etc. -1,628,183
• SVUSD also has less students -2,400,000 and
  cost increases -726,819
• TOTAL -19,300,000

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Our Budget after State Reductions
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Balanced Budget

• A balanced budget is necessary for a school
  district to maintain local control
• In order for SVUSD to preserve its fiscal status
  i.e. a district that can meet its financial
  obligations for the current year plus the
  following two years....reductions in expenses are
  required.
• For SVUSD 19,300,000 in reductions must be made!

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Our Budget after Reductions
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Non School Reductions
Sub total 9,333,568
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more Non School Reductions
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School Level Reductions
Schools Total 8,168,337
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Effect of Reductions

• Since 85 of our budget goes toward employee
  salaries and benefits...
• Over 240 positions eliminated
• Layoff notices to 287 certificated and 100
  classified employees

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Timeline

• Feb/March - consider holding forums to explain
  need for drastic reductions
• on March 11th - Board action to authorize
  certificated layoffs -notices to staff by March
  15th
• on April 15th, Board action to authorize
  classified layoffs - notices to staff by April
  28th
• May 10th final layoff notices to certificated
  staff
• May 14th- revised State revenues and Governors
  revised budget proposals
• June 30th Legislature to pass final budget,
  District budget due.

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What You Can Do

• contact State legislators - fax or mail- see
  SVUSD website for information
• attend a SVUSD budget forum
• send questions and/or comments by email to
  budget.impact_at_svusd.org
• Principals and website are best sources of
  accurate information