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Impact of Governors Proposal on MDUSD Budget

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Title: Impact of Governors Proposal on MDUSD Budget

1
Impact of Governors Proposal on MDUSD Budget

Presented byGary McHenry, SuperintendentMarch
2008

2
Mid-Year Actions Under Proposition 58

The Governor has declared a fiscal emergency
under Proposition 58, triggering the following
The Legislature is now called into Special
Session to deal with the Budget crisis
The Governor must submit a plan to address the
Budget imbalance
The Legislature must adopt a plan to address the
problem by March 15 (that is, within 45 days of
the declaration) otherwise it may not act on any
other legislation and it may not adjourn
The plan must be adopted by a two-thirds vote of
the Legislature, allowing the savings to take
effect immediately

Source SSC, January 2008
3
State Budget Summary

Compared with full funding for COLA and growth
for programs in 2008-09, the Governors proposal
cuts K-12 education by 4.4 billion
These cuts average about 740 per ADA from
2008-09 full funding levels

Saying it another way . . .
Governors proposal is for 2008-09 funding to be
about 1.8 billion less than current year, equal
to average cuts of
129 per ADA from Revenue Limits
30 per ADA from Special Education
146 per ADA from Categoricals
? Total loss of about 305 per ADA from current
year levels!

Source SSC, January 2008
4
2008-09 K-12 Revenue Limits

Caution Impact of deficit depends on
district-specific revenue limit

Assumes mid-year cuts are absorbed by other means
Source SSC, January 2008
5
Unrestricted Revenue Limit with Fully Funded COLAs
Source MDUSD Fiscal Services, March 2008
6
Updated MDUSD Revenue Projections(Numbers in
Millions)

2007-08 2008-09 2009-10
January 8 292.1 301.7 307.6
Governors Budget 291.1 284.4 291.2
Loss 1.0 17.3 16.4

7
MDUSD BudgetMoney is in job positions
8
MDUSD Updated Unappropriated BalanceIncludes
Board Reductions through February 25, 2008(No
salary increases)

2007-2008 8,494,916
2008-2009 2,691,116
2009-2010 ( 3,530,112)

9
Employee Units

CSEA California School Employees
AssociationClassroom Assistants, Campus
Supervisors, Licensed Vocational Nurses
DMA Diablo Managers AssociationPrincipals,
vice principals, student services coordinators,
curriculum and program specialists, directors,
classified managers, Confidential staff
Local One, CST Clerical, Secretarial, Technical
School secretaries, registrars, attendance
clerks, personnel assistants, accountants,
computer operators
Local One, MO Maintenance and
OperationsCraftsmen, painters, carpenters,
mechanics, custodians, landscapers, bus drivers
MDEA Mt. Diablo Education AssociationTeachers,
librarians, nurses, speech pathologists
MDSPA Mt. Diablo School Psychologists
AssociationSchool psychologists
SupervisoryCustodial and Food Service supervisors

10
How do we begin?v Start with criteria
11
Criteria for Budget Reductions

I recommend the following priority order
Insure campuses are safe for students and staff
Honor collective bargaining contracts and comply
with local, state and federal mandates
Maintain programs for students
Analyze program effectiveness
Eliminate programs that are ineffective
Maintain programs that are effective
Protect as many positions as possible
Honor our commitments and our promises to the
publice.g. Measure A and Measure C, Kindergarten
Class Size Reduction
Affect expenditure reductions across all programs
Health and Safety supervision of students
Cleanliness
Shift expenditures to grants and other funding
source where possible

12
Steps Balancing the Budget

Determine the amount to be reduced
Apply the methodology
Comply with budget reduction criteria

13
Methodology

Amount to be reducedCost of 1 for all units
Cost of 1 x Reduction Factor Amount to
be reduced/unit
Cost per Unit Average cost per
position

Reduction Factor
of Positions to be Reduced
14
MethodologyExample Impact of 14 Million on
MDEA unit

Amount to be reducedCost of 1 for all units
Cost of 1 for unit x Reduction Factor
Amount to be reduced/unit
Cost per Unit Average cost per
position

14,000,000 2,199,189 6.4
Reduction Factor
1,311,912 x 6.4
8,396,236
of Positions to be Reduced
8,396,23655,290 152 positions
15
Amount to be reduced 14 million
16
Example 12 million
17
Example 10 million
18
Example 8 million
19
How do we begin? Some Critical Questions