ENCINITAS UNION SCHOOL DISTRICTBUDGET PRESENTATIONMay 8, 2012

2012 / 2013 BUDGET -It’s Complicated

YOU HAVE TO START WITH THE CATEGORICALS...EUSD is a basic aid districtThe State can’t touch our property taxes so all of their reductions affect us through categorical budgetsSome categorical budgets just pay for specific programsOther categorical budgets bleed over into district general fund spending (CSR and special education for instance)The State can only take all of our sweepable categoricals or our excess basic aid dollars whichever mark the District hits first

CATEGORICAL REDUCTIONS

Ongoing Fair Share $ 2,959,895Transportation Fair Share $ 215,687Trigger Cut $ 1,965,418

TOTAL $ 5,141,000

IMPACT OF CATEGORICAL CUTSTotal Available Categorical Sweep Amount $ 4,551,375

School Site Reductions $ 297,007Educational Services Reductions $ 1,642,680District Reductions $ 2,575,955

Class Size Reduction

Deferred Maintenance

PAR

NEXT - CATEGORICAL SHIFTS TO DISTRICT BUDGET

EIA, TITLE 1, TITLE 3, AND SLP Budgets all must be adjusted to reflect new regulations - Critical jobs must therefore be passed over to the District budgetNet impact to District budget - $ 277,011

DISTRICT BUDGET BALANCING ACT

DISTRICT BUDGET IMPACTS

Fair Share Cuts $ 2,575,955Categorical Job Shifts $ 277,011Step and Column $ 605,080Insurance $ 50,000Utilities $ 138,000Structural Deficit $ 350,000TOTAL $ 4,209,299

ADDRESSING THE PROBLEM

SHORTFALL $ 4,209,299REVENUE INCREASES

Property taxes $ 429,000NCCSE Equalization $ 56,646Mental Health Funds $ 120,000

TOTAL $ 605,646

ADDRESSING THE PROBLEM

SHORTFALL $ 4,209,299REVENUE INCREASES $ 605,646

DIFFERENCE $ 3,603,653

Now it’s time to cut ...

PROPOSED BUDGET REDUCTIONS

DEPARTMENTAL CUTSBusiness Services $ 101,844Special Education $ 81,000Administrative Services $ 198,422Superintendent $ 55,601Board $ 19,480Deferred Maintenance $ 197,931

TOTAL $ 709,908

REMAINING DEFICIT

SHORTFALL $ 4,209,299INCREASED REVENUES $ 605,646DEPARTMENT REDUCTIONS $ 709,908

AMOUNT LEFT TO ADDRESS $ 2,893,745

PROPOSED BUDGET REDUCTIONS

Classified Reductions TBDCertificated Reductions

24-1 K-3 class size increase $ 416,86227-1 K-3 class size increase $ 1,092,989

Difference $ 676,127

OTHER CONSIDERATIONS...

Teachers and District negotiating on furloughsManagement has agreed to accept whatever teachers approveClassified to begin discussions next week

Furlough Savings per day Teachers $ 175,000ManagementClassifiedTOTAL PER DAY

WILD CARDSState Budget - May Revision on May 14

Already about $ 3 Billion short in budgetProjected shortfall through 2013 - $ 6 Billion +Governor’s Initiative - no additional cuts but no new moneyMunger Initiative - Losing in polls, sites get fundsWeighted funding plan

WILD CARDSFair Share Issues

State has already taken all tier 3 categoricals away We still owe them more in Fair ShareState can only take Fair Share or return you to Revenue LimitState now looking at special education dollars

could be $600,000 this year, 1.6 million next

WILD CARDS

Pacific View Energy Savings

NEXT STEPSMay Revision BudgetNegotiations with Teachers and ClassifiedRefinement of Budget EstimatesDistrict Budget Adoption2-3 Year Plan

Concerns - Educational Services, Special Education, NCCSE, Economic Uncertainties, weighted formula

QUESTIONS?