April 7 Board Worksession Tentative Budget Final

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

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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

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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.