Alameda Unified School District

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Alameda Unified School District

• School Board Meeting
• Budget Information Update
• February 10, 2009
• 630pm

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Budget Challenges

• The Alameda Unified School District (AUSD) faces
  budget challenges in the current year 2008/09 and
  the years to come.
• For 2008/09, there is a proposed mid-year
  reduction in state funding of 3 million.
• For 2009/10, there is an additional projected net
  loss of 4 million.
• For both years, that is a loss of 7M.

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2008/09 3M Loss

• For 2008/09, the proposed mid-year reduction of
  3M is made up of the following
• Elimination of the Cost of Living Adjustment
  (COLA) of 0.71 applied to the state revenues
  given to AUSD for students attending its schools.
• An additional reduction of 4.5 to those state
  revenues provided for student attendance in AUSD
  schools.

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2009/10 4M Loss

• For 2009/10, the net loss of 4M is made up of
  the following
• 1.3M reduction in state funds due to the State
  Budget Crisis.
• 0.3M net reduction in state funds due to less
  students enrolling and attending AUSD schools,
  and reducing the teaching staff by 8 teachers.
• 0.7M net reduction in state funds due to
  students attending the new Nea Charter School in
  Alameda, and reducing the teaching staff by 10
  teachers.
• 1.7M in additional expenses for employee
  advancement on salary schedules, on-going costs
  from settled union negotiations, special
  education, utilities and technology

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Options

• How will AUSD address the projected loss of 7M
  in funds?
• AUSD will consider the following options
• The Governors Proposed Categorical Flexibility
• Mandated Costs Reserve
• The Measure H Parcel Tax funds
• Budget Cuts (If the Proposed Categorical
  Flexibility is not approved by the state
  legislature)
• Class Size (the number of students enrolled in
  each class)

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Categorical Flexibility

• The Governor has proposed to allow school
  districts the ability to use restricted state
  funds from special programs (called Categorical
  Programs) for unrestricted operational needs.
• This is called Categorical Flexibility.
• AUSD is meeting with staff to review Categorical
  Programs and determine available balances to be
  considered for Categorical Flexibility.

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Categorical Program List

• Adult Education
• 9th Grade CSR
• K-3 CSR
• Economic Impact Aid
• English Learner (ELAP/CBET)
• Art Music Grant
• Supplemental Counseling
• Pupil Retention (Cont. Ed/Counseling)
• Professional Develop.

• Teacher Programs (PAR/BTSA)
• School Safety
• School/Library Improvement (SLIG)
• Targeted Improvement
• Instructional Materials
• HS Exit exam (CAHSEE)
• Gifted and Talented Ed.
• ROP
• Child Nutrition

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Other Sources

• AUSD has a one-time reserve of 1.1M from the
  State Mandated Cost Programs that can be
  considered for the loss in the funding.
• AUSD has 2.8M in Measure H Parcel Tax funds to
  be designated for expenditure. The district
  would use these funds to save those programs as
  provided by Measure H.

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Class Size

• AUSD could negotiate with its teachers union on
  class size.
• Current teacher staffing ratios provide an
  average of the following student enrollments for
  most classes at each grade level
• 20.44 students in each class in grades
  Kindergarten (K) through 3rd
• 29 students in each class in grades 4th through
  12th
• 20 students in each 9th grade class for English
• 20 students in each 9th grade class for Math

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Class Size Example

• The following is an example of the financial
  savings on increasing class size.
• A district has 3,000 students in grades K through
  3rd.
• A district places 20 students in each class for
  grades K through 3.
• A district would need 150 teachers (3,000/20) for
  the 3,000 students at the 201 class size.

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Class Size Example (cont.)

• If a district places 30 students in each class
  for grades K through 3rd
• Then it would need only 100 teachers (3,000/30)
  for the same 3,000 students, but at a 301
  class size.
• There would be 50 less teachers (150 100).
• The financial savings from this example on
  increasing class size from 201 to 301 in grades
  K through 3rd would be about 3M (50 less
  teachers multiplied by about 60,000 per
  teacher).

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On-Going

• The 7M loss in funding is an On-Going loss of
  funds.
• On-Going means that the loss continues year
  after year.
• There is no proposal to reinstate the funds next
  year, or any future year.

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On-Going (cont.)

• The On-Going nature requires that the district
  find On-Going sources to cover the On-Going
  loss of funds.
• It is like using your savings account to pay your
  monthly bills.
• Eventually your savings will run out.
• And you will be forced to either bring in more
  income or cut back on your monthly expenses.

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On-Going (cont.)

• If the district covers its On-Going Loss with
  1-time sources (like program carryovers or
  reserves), then it just buys the district some
  time.
• At some point, the district will need to come up
  with On-Going solutions.
• Some On-Going solutions are
• Through Categorical Flexibility, transferring
  On-Going funds from restricted programs to
  general operational uses, or
• Increasing class size, or
• Budget Cuts, or
• A future Permanent Parcel Tax
• AUSD will be considering these solutions over the
  next several months.

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Public Budget Workshops

• There is no easy answer to a projected 7M loss
  in funds over a 2-year period.
• AUSD will have two Special School Board Meetings
  as Public Budget Workshops.
• Please join us at one or both of the following
• Public Budget Workshop 1
• Wednesday, Feb. 11th
• 630pm to 8pm
• At Haight Elementary School
• Public Budget Workshop 2
• Thursday, April 2nd
• 630pm to 8pm
• At Wood Middle School

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