impact of the governor’s proposed budget on the ausd the ausd response february 26, 2008
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Impact of the Governor’s Proposed Budget
on the AUSD
The AUSD Response
February 26, 2008
AUSD Goals and Core Values
AUSD Goals 2006-2009• Narrow and close the achievement gap in English language arts and
Mathematics between our lowest performing students and our highest performing students, while increasing or maintaining the performance of any group performing at the proficient or advanced level.
• Align the spending plan with educational objectives while ensuring the highest and best use of limited resources and long-term solvency.
• Ensure all students will be in educational environments that are safe and conducive to learning.
• Recruit and retain highly qualified and diverse staff, and provide systems of support for and recognition of all employees.
AUSD Core Values• Support student achievement by promoting efficiency, communications, and
responsibility.• Preserve fiscal integrity and responsibility.• Recruit and retain highly qualified competitively compensated employees.
Criteria for Spending Reductions & Resource Reallocation
• Maintain core academic programs for students to ensure students graduate high school
• Ensure campuses are safe for students and staff • Shift expenditures to grants to other funding
sources where possible• Work with employee groups regarding negotiated
items• Comply with necessary local, state, and federal
mandates
Impact on Pathway to Excellence and Equity
Process for two-way communication
SUPERINTENDENT
EXTENDED CABINETWORKGROUPS
SOUNDING BOARD(community)
SUPT’S COUNCIL(employee groups)
BOARD OF EDUCATION
SUPERINTENDENT’S RECOMMENDATIONS
Timeline of meetings
• Extended Cabinet Workgroups: – February 1, 4, 8, 11, 14
• Superintendent’s Council Meetings:– February 6, 13, 21
• Sounding Board Meetings:– February 7, 14, 21
• Board Meetings:– February 4, 26 (Info), March 4 (Action), 11
Certificated & non-certificated staff Planning for 2008-09
• January 18 Due to HR - Planning and staffing notification forms from teachers-identify needs for the 08-09 school year.
• February 7 Due to HR Non- reelect list • March 1 Due to HR Certificated employees Leave of
Absence intentions for 08-09• March 4 Special BOE Meeting• March 11 Resolution to the BOE to vote on
staffing reductions• March 14 Ed Code Law requires that all certificated
teachers and administrators must be noticed• April AUSD Non- certificated Employees will be
Notified of Potential Lay offs per Ed Code 45117
Suspending Proposition 98
Proposition 98 Appropriations(Billions)
55.156.7
59.7
55.6
50
52
54
56
58
60
62
FY06/07 FY07/08 FY08/09(Minimum
Guarantee)
FY08/09(Governor'sProposal)
Loss of $4B
Suspending Proposition 98
AUSD Base Revenue Limit
$5,525
$5,777
$6,065
$5,641
$5,000
$5,400
$5,800
$6,200
FY06/07 FY07/08 FY08/09(MinimumGuarantee)
FY08/09(Governor'sProposal)
Loss of $4M
Multi-Year ProjectionsAs of FY07/08 First Interim
FY07/08 Projection
FY08/09 Projection
FY09/10 Projection
Revenues 83,755,624 86,552,977 87,325,387
Expenditures 86,870,395 84,970,470 86,467,560
Other Sources (Uses) (435,906) (435,906) (435,906)
Net Inc/Dec in Fund Balance (3,550,677) 1,146,602 421,920
Beginning Balance 7,666,016 4,115,339 5,261,940
Ending Balance 4,115,339 5,261,940 5,683,861
Components of Ending Balance
Revolving Cash 50,000 50,000 50,000
For Economic Uncertainties 2,619,189 2,562,191 2,607,104
Legally Restricted Balance - - -
Mandate Cost Reimbursement 1,080,000 1,080,000 1,080,000
P2 ADA 137,207 - -
Available Unrestricted Reserve 228,943 1,569,749 1,946,757
Available for spending
priorities – compensation increases, new programs and
program expansions,
Multi-Year Projections As of FY08/09 Governor’s Budget
FY07/08 Projection
FY08/09 Projection
FY09/10 Projection
Revenues 83,480,865 82,432,304 83,613,268
Expenditures 86,870,395 85,027,949 86,565,050
Other Sources (Uses) (435,906) (435,906) (435,906)
Net Inc/Dec in Fund Balance (3,825,436) (3,031,550) (3,387,687)
Beginning Balance 7,666,016 3,840,580 809,029
Ending Balance 3,840,580 809,029 (2,578,658)
Components of Ending Balance
Revolving Cash 50,000 50,000 50,000
For Economic Uncertainties 2,619,189 2,563,916 2,610,029
Legally Restricted Balance - - -
Mandate Cost Reimbursement 1,080,000 1,080,000 1,080,000
P2 ADA 137,207 - -
Available Unrestricted Reserve (45,816) (2,884,886) (6,318,686)
Available for spending
priorities – compensation increases, new programs and
program expansions,
What happened to the fund balance?
Available Unrestricted Reserve As of 1st Interim (Dec 11, 2007)
1,569,749
Deficit Factor of 0.5% - Revenue Limit (274,759)
Increase in COLA of 0.64% - Revenue Limit 354,381
Increase in COLA of 0.64% - Class Size Reduction 21,690
Deficit Factor of 6.99% – Revenue Limit (4,032,329)
Deficit Factor of 10.9% – Class Size Reduction (236,893)
Deficit Factor of 10.9%– Special Education (285,000)
Change to 3% Reserve (1,724)
Available Unrestricted Reserve As of Governor’s Proposed Budget (Jan 10, 2008)
(2,884,886)
Decrease
of $4.5M
What can the AUSD do?
• Increase Revenue
• Reduce Expenditures
• Negative Certification
• Combination
Overview of Recommendations and Actions
Item Amount FY
1. Modify Classroom Staffing
2. Reduce Secondary Counseling Services
3. Adjust Secondary School Staff
4. Eliminate Support for Athletic Programs
5. Reduce MOF Services
6. Adjust District Office Support
7. Defer On-Going Spending Reductions for One Yr
8. Enhance Revenue
9. Shift Spending
10. Reduce MOF
11. Reduce District Office Support
12. Restructure K-12 Program
393.0
90.0
140.0
465.0
125.0
19.0
-
60.0
375.0
50.0
21.3
2,261.7
FY08/09
FY08/09
FY08/09
FY08/09
FY08/09
FY08/09
FY08/09
FY08/09
FY08/09
FY08/09
FY08/09 FY09/10
Total 4,000.0
Overview of Recommendations and Actions
Year 1 – FY08/09 Amount
Spending Shifts and Reductions 1.7M
Spend Reserves – One-Time Mandate Cost
Reimbursement Set-Aside
1.1M
Spend Reserves – Undesignated Available 1.6M
Total 4.4M
Year 2 – FY09/10
Spending Reductions - Restructure K-12 Program (i.e., School Closures, Class Size, Counseling Services)
2.3M
FY08/09 Recommendations
Item Cut/ shift
Superintendent’s Recommendation
1. MODIFY CLASSROOM STAFFING
a. Reduce Class Size Reduction (CSR) - Grade 9 Cut 92.0K
b. Eliminate JROTC Cut 61.0K
c. Eliminate 0.5 FTE Independent Study Teacher Cut 40.0K
d. Eliminate Elementary Grades 1-3 Music Prep Positions
Cut 200.0K
2. REDUCE SECONDARY COUNSELING SERVICES
a. Reduce Middle School (MS) Counselors Cut 90.0K
Cut = Spending Decrease/Service Reduction or Elimination; Shift = Spending transferred to categorical funds
FY08/09 Recommendations
Item Cut/ shift
Superintendent’s Recommendation
3. ADJUST SECONDARY SCHOOL STAFF
a. Eliminate 1 Vice Principal at Encinal HS Cut 95.0K
b. Reduce Clerical Support at Encinal HS Cut 45.0K
4. ELIMINATE SUPPORT FOR ATHLETIC PROGRAMS
a. Eliminate High School Athletic Program Cut 345.0K
b. Close Swim Centers Cut 120.0K
Cut = Spending Decrease/Service Reduction or Elimination; Shift = Spending transferred to categorical funds
FY08/09 Recommendations
Item Cut/ shift
Superintendent’s Recommendation
5. REDUCE MOF SERVICES
a. Reduce Site Based Cleaning to Alternating A/B Schedule
Cut 125.0K
6. ADJUST DISTRICT OFFICE SUPPORT
a. Reduce Clerical Support at District Office Cut 19.0K
7. DEFER ON-GOING SPENDING REDUCTIONS FOR ONE YEAR
a. Spend One-Time Mandate Cost Reimbursement to Defer On-Going Spending Reductions for One Year
Cut 1,080.0K
Cut = Spending Decrease/Service Reduction or Elimination; Shift = Spending transferred to categorical funds
What does $4M look like?
Unit Cost of 1% Reduction FTE
AEA $380K $2.77M 46
ACSA $54K $0.39M 4
Alameda Blue $37K $0.27M 6
CSEA $79K $0.57M 16
TOTAL $550K $4.00M 72
Reduction Factor = 7.3
Spending $2.65M of Reserves on On-Going Costs
Unit Cost of 1% Reduction FTE
AEA $380K $1.8M 31
ACSA $54K $0.3M 3
Alameda Blue $37K $0.2M 4
CSEA $79K $0.4M 11
TOTAL $550K $2.7M 48
Reduction Factor = 4.8
FY08/09 Actions
Item Cut/ shift
Superintendent’s Recommendation
8. ENHANCE REVENUE
a. New Leases Rev 60.0K
9. SHIFT SPENDING
a. Shift Technology Classified Staff to Categorical Funds
Shift 200.0K
b. Shift Instructional Supplies to Categorical Funds
c. Apply Mega-Item Transfer from Food Service to General Fund
Shift
Shift
125.0K
50.0K
Cut = Spending Decrease/Service Reduction or Elimination; Shift = Spending transferred to categorical funds
FY08/09 Actions
Item Cut/ shift
Superintendent’s Recommendation
10. REDUCE MOF
a. Reduce Use of Custodial Substitutes Cut 50.0K
11. REDUCE DISTRICT OFFICE SUPPORT
a. Reduce Professional Development Opportunities for District Office Staff
Cut 20.0K
b. Eliminate Clerical Hourly Support Cut 1.3K
Cut = Spending Decrease/Service Reduction or Elimination; Shift = Spending transferred to categorical funds
Why not shift more expenditures to categorical funds?
Categorical funds are restricted in use and come with requirements:
• Committee work
• Teacher staff development
• Assessment
• D/O FTE
FY09/10 Proposal
Item Cut/ shift
Superintendent’s Recommendation
12. RESTRUCTURE K-12 PROGRAM 2.3M
Restructuring the AUSD K-12 program is expected to include and is not limited to:
a. School Closures– Elementary
– Middle
– High
– Specialized/Alternative
Cut
Cut = Spending Decrease/Service Reduction or Elimination; Shift = Spending transferred to categorical funds
FY09/10 Proposal
Item Cut/ shift
Superintendent’s Recommendation
12. RESTRUCTURE K-12 PROGRAM (cont.)
b. Class Sizes – Class Size Reduction 3
– Class Size Reduction K
– Class Size Reduction 2
– Class Size Reduction 1
Cut
c. Counseling Services– Counselors
– College and Career Technicians
Cut
Cut = Spending Decrease/Service Reduction or Elimination; Shift = Spending transferred to categorical funds
FY09/10 Proposal
Item Cut/ shift
Superintendent’s Recommendation
12. RESTRUCTURE K-12 PROGRAM (cont.)
d. Additional Changes to Be Determined based on Restructuring
Cut
Cut = Spending Decrease/Service Reduction or Elimination; Shift = Spending transferred to categorical funds
FY09/10 Process and Timeline
• Identify Task Force – March 7• Bi-Monthly Meetings – Mid-March – June• Community Meeting – Early June• Weekly Meetings – September – November• Community Meeting – Mid-October• Recommendations to Board of Education for
information – November 25• Recommendations to Board of Education for
approval – December 9
Multi-Year Projections As of FY08/09 Governor’s Budget
FY07/08 Projection
FY08/09 Projection
FY09/10 Projection
Revenues 83,480,865 82,432,304 83,613,268
Expenditures 86,870,395 85,027,949 86,565,050
Other Sources (Uses) (435,906) (435,906) (435,906)
Net Inc/Dec in Fund Balance
(3,825,436) (3,031,550) (3,387,687)
Beginning Balance 7,666,016 3,840,580 809,029
Ending Balance 3,840,580 809,029 (2,578,658)
Multi-Year Projections As of FY08/09 Governor’s Budget
FY07/08 Projection
FY08/09 Projection
FY09/10 Projection
Ending Balance 3,840,580 809,029 (2,578,658)
Components of Ending Balance
Revolving Cash 50,000 50,000 50,000
For Economic Uncertainties 2,619,189 2,563,916 2,610,029
Mandate Cost Reimbursement 1,080,000 - -
P2 ADA 137,207 - -
Year 1 - Spending Reductions (1,738,300)
(3,476,600)
Year 2 - Spending Reductions (2,261,700)
Change in 3% Reserve Requirement
(52,419) (120,000)
Available Unrestricted Reserve (45,816) (14,437) 619,614
What will happen to the FY08/09 fund balance?
Estimated Available Unrestricted Reserve (2,884,886)
One-Time Mandate Cost Reimbursement Set-Aside 1,080,000
On-Going Spending Shifts and Reductions 1,738,300
Change in 3% Reserve Requirement 52,149
Estimated Available Unrestricted Reserve (14,437)
Increase
of 2.9M
What will happen to the FY09/10 fund balance?
Estimated Available Unrestricted Reserve (6,318,686)
One-Time Mandate Cost Reimbursement Set-Aside 1,080,000
On-Going FY08/09 Spending Shifts and Reductions 3,476,600
On-Going FY09/10 Spending Shifts and Reductions 2,261,700
Change in 3% Reserve Requirement 120,000
Estimated Available Unrestricted Reserve 619,614
Increase
of 6.9M
Recap of Recommendations and Actions
• Minimal available balance– Unbudgeted spending increases– Negotiated salary increases– Other Post-Employment Benefits (OPEB)
• Involves risk
• Requires qualified/negative certification
Outstanding Issues that Could Impact the Budget and MYP
• State Budget
• Average Daily Attendance (ADA)
• Special Education
• Other Post Employment Benefits (OPEB)
• Negotiations
Next Steps
• Information item for BOE discussion and public comment
• Superintendent’s final recommendations for BOE approval on March 4, 2008
• Reduction in force for BOE approval on March 11, 2008
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