april 7 board worksession tentative budget final
DESCRIPTION
Presentation of Tentative budget to Board of School TrusteesTRANSCRIPT
2011TentativeTentative
April 7, 2010Board Work Session
1
of theAdoption
Budget
FY
Budget Timeline
Adoption of Tentative 2011 Budget April 7
Tentative Budget Submitted To StateApril 15
Adoption of Final 2011 Budget May 19
Final Budget Submitted to State June 8
2
Adoption of the tentative budget is required by April 15th. However, changes may be made prior to adoption of the final budget.
Where the District Spends Its $
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Classroom In-struction, Coun-seling, Library, &
Transporting Students75.7%
School Adminis-tration8.6%
Finance, Human Resources, Pur-chasing, Tech-
nology2.7%
Maintenance, Custodial,
Grounds & Utili-ties
12.1%
General Administration0.9%
How the District Spends Its $
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People89%
Things11%
($ in millions)
Electricity, Gas, and Utilities 88.4
Fuel & Vehicle Maintenance 9.9
Textbooks/Supplies 53.2
Property & Liability Insurance 5.0
Classroom Equipment 7.7
Technical Services 7.8
Field Trips 3.2
Postage 2.0
Repairs and Maintenance 4.1
Other Objects* 49.6
Total $230.9
*Other Objects: Legal Services, Financial Services, Professional Services, Staff Development, Training, Travel
Reductions in Positions To Date & Planned
5
Central Office
FY 2010 FY 2011
Cumulative Positions
Positions Cut
% of Total in Central Office
Proposed Position Cuts
% of Total in Central Office
Administrators 27 10.2% 19 8.5% 46
Support Staff 231 24.4% 0 0.0% 231
School Based
FY 2010 FY 2011 Cumulative Positions
Positions Cut
% of Total in Schools
Proposed Position Cuts
% of Total in Schools
Administrators 16 1.6% 90 8.9% 106
Support Staff 100 1.3% 0 0.0% 100
Licensed 682 3.7% 540 3.2% 1,222
*General Operating Fund Positions
Tentative Budget Summary
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Total General Fund Revenue
Down6.9%
- $ 141 million
Total General Fund Expenditures
Down3.4%
- $ 76 million
The difference is partially made up through use of $40 million in fund balance (due to efficiencies) and $25 million in one-time capital funding.
Use of One-Time Sources
7
Revenues Reve
nues
Fund Balance & Other One-
Time Sources
Revenues
OK for temporary downturns in
revenues
Not good to filllong-term shortfalls
Assumptions: Tentative Budget① All elementary schools on a nine-month
calendarElementary schools convert from year-round to nine-month as per Regulation 7124
② No changes in employee contract provisions
③ Class sizes in Grades 1-3 increased by 2 students
④ Textbook/supply budgets will be reduced
⑤ Student enrollment will decline slightly
⑥ Fund balance will be used to offset budget reductions
⑦ Administrative positions will be reduced by 10 percent
⑧ Federal Title I funding will be $6.9 million less
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What These Assumptions Mean
① School calendar conversions
$5 million savings
② Employee contract provisions:Step Increases
$26 million costRetirement (PERS)
no change
③ Class sizes in Grades 1-3 (540 positions)
$30 million cut
④ Textbook/supply budgets
$10 million cut
⑤ Student enrollment
no change
⑥ Fund balance
$40 million one-time savings
⑦ Administrative staffing (109 positions)
$12 million cut
⑧ Federal Title I funding
$6.9 million less
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Changes Since Tentative Budget
School calendar changes,other than by regulation,not implemented $12 million
State Department of Taxationupdated property tax estimates 18 million
Additional Shortfall $30 million
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The following changes occurred after development of the Tentative Budget and will need to be addressed prior to adoption of the Final Budget.
$30 million, if taken from staffing, equates to an additional 428 positions that would need to be cut.
Options for Cutting $30 Million
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1) Reduce salaries (and PERS benefit base)by 1.85 percent
2) Implement furlough days for all employees(4 for licensed, support staff and police; 6 for administrators)
3) Employees share 15 percent of overall costof health insurance
4) Employees share 2.4 percent of overall costof retirement (PERS)
5) Freeze step increases ($26 million)
The following are options for dealing with the remaining $30 million budget deficit (subject to collective bargaining):
$30 million, if taken from staffing, equates to 428 positions that would need to be cut.
Positions That Would Need to be Cut
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540 Teaching positions (raising class sizes by 2 in grades 1-3)
109 Administrative Positions (90 school based,19 central office)
649 Already recommended to be eliminated+ 428 Additional positions to balance ($30
million)
1,077 Total number of positions that would need to be cut
With NO changes to salaries, benefits, or to the work year:
Alternative to Recommended Cuts
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To restore the recommended increase in class size and the reduction in administrative staffing, as well as to accommodate other shortfalls…
…would require a 5.0 percent reduction in all employee salaries…
…and would allow restoration of 649 positions cut to balance the budget
For More Information…
Go to…
CCSD.net/finance
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Budget Timeline
Adoption of Tentative 2011 Budget April 7
Tentative Budget Submitted To StateApril 15
Adoption of Final 2011 Budget May 19
Final Budget Submitted to State June 8
15
Adoption of the tentative budget is required by April 15th. However, changes may be made prior to adoption of the final budget.