Board of EducationBudget Meeting

November 16, 2010

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The Purpose:

– Review Current Fiscal Realities

– Review and Take Action on Solutions to Close General Fund Unrestricted Budget Deficit

– Provide a Timeline for Board Actions and Implementation of Reductions

Workshop Overview

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Review of the Realities

• LAO has Reported that State Budget is Worse Than Previously Communicated

• Governor has Called Special Session to Address Current Year Budget Concerns

• Mid Year Reductions are Possible• Federal Jobs Funding is Incorporated into Current

Deficit Resolution• State Budget Categorical Flexibilities will Terminate

after 2011/12

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Review of the Realities(cont’d)

• Our Challenges: • Make Difficult Decisions in Limited Amount of

Time• Implement Balanced Budget that

• Eliminates Deficit Spending • Achieves Required Reserve Levels

• Unified Leadership is Critical• Decisions will Adversely Impact Students and

Classroom Instruction• Prudent Resource Allocations are Essential• Current Financial Decisions Impact Future Financial

Stability

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Budget Reduction Implementation Timeline

Item # Task Date

1 Budget Workshop to Approve Deficit Solutions Nov 16, 2010

2 Board Approval of First Interim Report Dec 2, 20103 Submission to County Office Dec 3, 2010

4 Cabinet Level Committees to Develop Guidelines for Site and Central Office Reductions Dec 3, 2010

5 Area Superintendents to Work with Cluster Principals to Develop Cluster Based Solutions Dec 17, 2010

6 Finance to Distribute Site Allocations and Scenario Planning Template Jan 10, 20117 Depts Complete Reductions/Templates to Finance/HR Jan 24, 2011

8 Sites Complete Reductions/Templates to Finance/HR Feb 4, 2011

9 HR to Begin Preparation of PKS Feb 4-18, 2011

10 Board to Take Action on Resolution to Reduce Particular Kinds of Service and Classified Feb 22, 2011

11 Certificated PKS Provided to Board of Education Mar 11, 2011

12 Certificated Employees Receive Notice of Release Mar 15, 201113 Classified Employees Receive Notice of Release Apr 15, 2011

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Key Assumptions

• Baseline Current Deficit $ (141.6)M• Federal Jobs Bill Fund (One-time Only) $ 21.0M

• Projected Deficit as of November 16, 2010 $ (120.6)M

• Potential Impacts to the Budget• Changes to Fund Balance 1st Interim $ (TBD)

– Excess Staffing– Transportation Parent Pay Fees

• State Approved Budget $ 30.1M• Final ARRA SFSF Funding $ 4.0M• Mandates (Non-School Portion) $ 1.7M

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• District-wide Parameters to be Established

• Area Superintendents Will Work with Principals

Within Cluster to Determine Reductions

– Schools Will Take Advantage of Sharing

Resources Across Cluster

• Reductions Need to be Identified by January

Site Based Reductions of $44.5 Million

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Central Office (10%) Reductions of $5.2 Million

• District-wide Parameters to be Established

• Consolidation of Departments to be Considered

• Resources that Provide Services to Schools to be Given Priority

• Reductions Need to be Identified by January

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Solutions to the General Fund Unrestricted Deficit

(1) (2) (3)                      Budget Briefing

          Classified   Certificated   Deficit   Book V1

          FTE   FTE   Solutions   Page No:

Millions

Projected Reductions Required (Based on Current Financial Assumptions) $ 120.60

($141.6 Million - $21 Million) A. Revenue Generation

1 Increase ADA 1/2 % $ 2.88 C1       Sub-Total           $ 2.88  

B. Central Office Options 1 5370-GATE District Administration-50% reduction 1.50 3.42 $ 0.57 C5 2 5390-GATE Advanced Placement-(Eliminate Unrestricted Support) $ 0.01 C6 3 5409-American with Disabilities Act (504)-(Consolidation into Risk Mgmt) 1.00 1.00 $ 0.22 C7

4 5440-Student Programs & Professional Learning (Eliminate Centralized Oversight) 1.75 1.05 $ 0.29 C8 5 5532-Magnet Programs Office Transfer to Restricted MSAP Grant 1.00 1.00 $ 0.31 C9 6 5537-Reduce Utilities Management Staff by 50% 4.00 $ 0.28 C10 7 5547-Teacher Prep and Student Support (Eliminate Unrestricted Support) 0.50 $ 0.08 C11-C12 8 5606-Office of School Innovation Elimination $ 0.21 C13 9 5596-Chief Special Projects Office Elimination 2.00 $ 0.31 C14

10 5343-JROTC Office (Eliminate Centralized Oversight) 2.00 1.00 $ 0.16 C15 11 5451-College, Career & Tech Ed-Transfer to Restricted 2.33 1.30 $ 0.45 C16 12 5542-Community Relations Department Elimination 3.00 $ 0.38 C17 13 Adult Education (Eliminate Centralized Oversight) 1.50 1.00 $ 0.35 C18 14 CBET (Elimination of Program) 3.70 1.00 $ 0.52 C19 15 5638-Drop Out Prevention Elimination 3.00 0.80 $ 0.38 C20 16 Area Superintendents (Reduction of Current Area Supt Vacancy) 1.00 0.75 $ 0.29 C25 17 5457-P.E and Health (Eliminate Centralized Oversight) 1.50 2.00 $ 0.38 C26 18 10% Additional Reduction to Central Office (FTE Estimated) 56.00 TBD $ 5.20 19 5533-Enrollment Options-Choice Office Consolidation 7.13 $ 0.66 C51 20 Eliminate Transportation for Magnet and VEEP 201.00 $ 8.70 C31 21 5605-School Police Services (50% Reduction) 21.50 $ 2.70 C21-C22 22 5446-Visual and Performing Arts (Elimination of Centralized Oversight) 1.00 5.00 $ 0.73 C23-C24 23 Area Superintendents Budget Reductions $ 0.86 C25

      Sub-Total   316.41   19.32   $ 24.03  

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Solutions to the General Fund Unrestricted Deficit (cont’d.)

(1) (2) (3)                      Budget Briefing

          Classified   Certificated   Deficit   Book V1

          FTE   FTE   Solutions   Page No:

C. Centrally Managed Programs

1 Eliminate/Suspend OCILE Program

(a) Balboa 6.25 2.30 $ 0.66 C28

(b) Old Town 7.75 2.30 $ 0.73 C29

(c) Palomar 17.00 5.80 $ 2.58 C30

(d) OCILE Transportation $ 0.60

2 Eliminate RELI Program 0.60 $ 0.13 C60

3 Reduce Landscapers by 10 FTEs-10% 10.00 $ 0.59 C52

      Sub-Total   41.00   11.00   $ 5.28  

D. School Admin. Options (Part of Allocation Formula)

1 K-3 CSR Program (Teacher Ratio 29:1 from 24:1) (Net of Revenue Penalty)

(a) Kindergarten 72.72 $ 4.46 C33

(b) 1st Grade 71.00 $ 6.09 C42

(c) 2nd Grade 68.20 $ 5.84 C43

(d) 3rd Grade 64.00 $ 5.52 C44

2 Reduce Kindergarten to 1/2 Day at 29:1 (168.3 FTE) (Net of Revenue Penalty) 168.30 $ 12.40 C32

3 Split Principal Assignment Between Two Schools at Small Highs Schools 7.00 $ 0.97 C50

4 Reduce Allocation Model for Alternative and Atypical Schools (8 schools) TBD TBD $ 1.00 C54

5 Increase Class Size for Gate Seminar Program (Per School Formula) 20.00 $ 1.70 C55

6 Reduction to Unrestricted Allocation Model- Site Based Decisions (FTE Estimated): 85.14 307.10 $ 44.47

Options for Sites to Consider Include, but are Not Limited to:

(a) Librarians (Allocation = 21.50 FTE) C41

(b) Library Technicians (Allocation = 54.50 FTE ) C37

(c) Vice Principals (Allocation = 80 FTE) C56

(d) Nurses (Allocation = 57.4FTE) C57-C58

(e) Student Information System Site Tech II (Allocation = 45 FTE) C39-C40

(f) School Clerk II Reduced by One at Each High Schools (Reduction = 14 FTE) C38

(g) Health Technicians (Allocation = 90.88 FTE) C35-C36

(h) School Counselors (Allocation = 171.90 FTE) C59

      Sub-Total   85.14   778.32   $ 82.45  

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Solutions to the General Fund Unrestricted Deficit (cont’d.)

(1) (2) (3)

                      Budget Briefing

          Classified   Certificated   Deficit   Book V1

          FTE   FTE   Solutions   Page No:

E. District wide Options

1 Close Schools (10 @ $450K) TBD TBD $ 4.50 C2

2 K-8 Schools - Reduction of 1 CPU 11.00 $ 0.93 C3

3 Solar Energy Implementation Savings $ 0.50 C4

      Sub-Total   0.00   11.00   $ 5.93  

F. School Supplemental Allocations

1 Suspend Supplemental Allocations for Magnet Programs (TIIBG) 15.38 51.11 $ 6.25 C45

2 Change Prep time Allocation to Comply with Minimum Contract Requirements 12.70 $ 1.13 C46

      Sub-Total   15.38   63.81   $ 7.38  

G. Federal Stimulus Funded Program (ARRA Title I Funding Expires)

1 Eliminate K-2 ARRA Positions CSR 16.5:1 (29 Schools) 138.00 $ 12.23 C47

      Sub-Total   0.00   138.00   $ 12.23  

H. Special Education

1 Reduce Special Education local contribution- Specifics TBD TBD TBD $ 5.00 C48

2 Eliminate Intersession and Second Session of Special Education $ 1.00 C49

      Sub-Total   0.00   0.00   $ 6.00  

    Total Deficit Reduction Solutions *   457.93  1021.45  $ 146.18  

                   

* Estimated FTE

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Questions?