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Budget UpdatesBudget Updates

November 18, 2009November 18, 2009

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BackgroundBackground

Other mitigation measures included:Other mitigation measures included: End centrally run Title I, II, and IIIEnd centrally run Title I, II, and III

programs and redirect monies to schoolsprograms and redirect monies to schools In 2008-09 on time savings were realizedIn 2008-09 on time savings were realized

in Workers compensation fund asset,in Workers compensation fund asset,deferral of textbook adoption, endingdeferral of textbook adoption, ending

balancesbalances Used early retirement and vacancies toUsed early retirement and vacancies to

buffer layoffsbuffer layoffs

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2010-20112010-2011

In 2010-2011, LAUSD is facing a $480 M deficitIn 2010-2011, LAUSD is facing a $480 M deficit

$258 M of the $480 has already been identified$258 M of the $480 has already been identifiedbut needs to be finalized in early December bybut needs to be finalized in early December by

the Boardthe Board The Board priority in June was to identify aThe Board priority in June was to identify a

revenue alternative or negotiated alternativerevenue alternative or negotiated alternative

before additional cuts in 2010-11before additional cuts in 2010-11

LACOE guidelines will not allow us to rely on yetLACOE guidelines will not allow us to rely on yetto be negotiated measures conditional budgetto be negotiated measures conditional budget

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$258 M Reductions$258 M Reductions

The following are measures identified inThe following are measures identified inthe $258 Mthe $258 M

Change in basis of school financialChange in basis of school financialmanagers at traditional calendar schoolsmanagers at traditional calendar schools

Change in basis of school clerical staffChange in basis of school clerical staff

Charge employees for parking at BeaudryCharge employees for parking at Beaudry Streamline business operationsStreamline business operations

Consolidations and school closuresConsolidations and school closures

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Reductions Cont.Reductions Cont.

ELA Textbooks delay adoptionELA Textbooks delay adoption

Institute Furlough Days (4 recommended)Institute Furlough Days (4 recommended)

Convert additional SRLDP classes to StateConvert additional SRLDP classes to StatePreschoolPreschool

Eliminate Advanced Course Offerings for yearEliminate Advanced Course Offerings for yearround middle schools and elementary spanround middle schools and elementary span

schoolsschools Create Norm for School LibrariansCreate Norm for School Librarians

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Reductions Cont.Reductions Cont.

Reduce General Fund unrestricted schoolReduce General Fund unrestricted schoolpsychologist by 50%psychologist by 50%

Reduce elementary arts and musicReduce elementary arts and music

teachers by 50% in 2010 and by 100% inteachers by 50% in 2010 and by 100% in20112011

Half day Kindergarten in 2011-12Half day Kindergarten in 2011-12

Increase in class size in K-3Increase in class size in K-3 Reduce Facilities Operations budget byReduce Facilities Operations budget by

5%5%

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Reductions Cont.Reductions Cont.

Reduce School Police by 25%Reduce School Police by 25%

Reduce Transportation Budget by 10%Reduce Transportation Budget by 10%

Reduce Routine Repair and GeneralReduce Routine Repair and GeneralMaintenance contribution from 2.2% to 2%Maintenance contribution from 2.2% to 2%

Reduction to Central OfficeReduction to Central Office

Reduction of Local DistrictsReduction of Local Districts

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Budget ReconciliationBudget Reconciliation

The Board will vote on December 8The Board will vote on December 8 thth

Reconciliation of Next Years BudgetReconciliation of Next Years Budget

includes:includes:

$258.3 M new budget balancing$258.3 M new budget balancingreductions identified in LAUSDs Junereductions identified in LAUSDs June

BudgetBudget

$49.5 M in negotiable items that do not$49.5 M in negotiable items that do notmeet LACOE requirementsmeet LACOE requirements

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Budget ReconciliationBudget Reconciliation

$154.4 M The State has preempted the$154.4 M The State has preempted theuse of State Stabilization funds for theuse of State Stabilization funds for theQEIA resolution in 2009-10 and highQEIA resolution in 2009-10 and high

education offsetseducation offsets $18.0 M in other net adjustments and$18.0 M in other net adjustments and

requirementsrequirements

The Superintendent has written a letter toThe Superintendent has written a letter toUnions requesting concessionsUnions requesting concessions

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Budget ReconciliationBudget Reconciliation

Requesting each Union agree to 4Requesting each Union agree to 4furlough days ( 1 furlough day = $15 M)furlough days ( 1 furlough day = $15 M)

SEIU has tentatively agreed to 4 furloughSEIU has tentatively agreed to 4 furloughdaysdays

To maintain current staffing and servicesTo maintain current staffing and services

in 2010 requesting every employee take ain 2010 requesting every employee take a12% salary reduction ( 1% = $40 M) which12% salary reduction ( 1% = $40 M) whichis approximately $480 Mis approximately $480 M

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Lack of Concessions ImpactLack of Concessions Impact

Without concessions the District will seeWithout concessions the District will see

layoffs of 7,500 to 8,500 employees withlayoffs of 7,500 to 8,500 employees with

14,000+ being noticed for possible reduction14,000+ being noticed for possible reduction

in forcein force Without concessions or new revenues thatWithout concessions or new revenues that

meet the LACOE guidelines, the Decembermeet the LACOE guidelines, the December

budget will contain Zero Sum Balancingbudget will contain Zero Sum Balancing

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Tentative Timeline DatesTentative Timeline Dates

2010-11 Projected student enrollment data due2010-11 Projected student enrollment data duewith projected classroom teacher FTEwith projected classroom teacher FTEreductions Dec 1, 2009reductions Dec 1, 2009

Projected Budget Allocations for schoolProjected Budget Allocations for schoolpurchased positions sent to schools for schoolspurchased positions sent to schools for schoolsto provide preliminary 2010-11 FTE staffing datato provide preliminary 2010-11 FTE staffing data

Dec 1, 2009 Dec 1, 2009

Schools enter preliminary school purchasedSchools enter preliminary school purchasedpositions in the Budget Tool by January 15,positions in the Budget Tool by January 15,20102010

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School Community BudgetingSchool Community Budgeting

Decentralized funds will be allocated toDecentralized funds will be allocated toschools on a per pupil basisschools on a per pupil basis

Schools will use data to determine studentSchools will use data to determine student

needsneeds School Communities will makeSchool Communities will make

recommendations on services and supportsrecommendations on services and supports

to retain based on available fundingto retain based on available funding