LAUSD Budget for March 13, 2012

INTEROFFICE CORRESPONDENCE Los Angeles Unified School District

Offìce of the Superintendent

TO: Members, Board of Education DATE: March 13,2012

FROM: Dr. John E. Deasy, Superintendent

SUBJECT: FISCAL YEAR 2012-13 BUDGET STRATEGY

This informative provides the context for the Second Interim Financial Report and outlines our budget strategyfor 2012-13, which aims to provide needed stabilify to our schools as they begin budget development. Thisinformative also discusses the District's multiple budget plans to address the uncertainty at the state and locallevel, and how this uncertainty impacts our reduction in force notices.

Background Context:As in previous years, it is expected the state will delay important budget decisions, including the impact of thepotential mid-year trigger cuts for 2012-13. However, schools and school districts have fixed deadlines andcannot wait for the full resolution of the state's budget. Schools need stability and time to plan for the upcomingyear so that they can prioritize program needs. March is a key month in the District's annual budget planningprocess that ends in June. On March 15 we face two statutory deadlines:

l. Deadline to notice permanent certificated employees that they may be subject to reduction in force.2. Second Interim Financial Report updates the District's financial status and helps starts school budget

development.

In developing our strategy, we considered two critical factors:l. There is greater uncertainty about next year's state budget than in any prior year.2. We must provide adequate noticing of employees to ensure we can proactively respond to changes in the

state's budget.

Notwithstanding these factors, I am recommending a bolder and more aggressive approach for the District's2012-13 budget and fiscal stabilization plan. This promotes stability for our schools while we continue to findbudget solutions.

Budget Strateev:IVe have been developing a strategy that provides multiple budget plans for next year as we continue to look forsolutions and shared commitments. On February 14,2012, the Board of Education adopted Board Report No.173 - llll2, Adoption of Budget Balancing Plan to Address 2012-13 Deficit, as amended, with:

l. The Board will be presented with the 2012 Fiscal Stabilization Plan with the Second Interim FinancialReport (reference Attachment A and B, respectively)

2. The Board directs the Superintendent to report back within two weeks with options and alternatives toavoid the elimination of Adult Ed, Early Ed, Arts and Cafeteria (reference Attachments C, D, E and F,respectively)

3. The Board authorizes the Superintendent to assess whether the June 2012, November2}l2 or March2013 election will provide the optimum opportunity for a parcel tax to be approved (reference BoardReportNo. 197 - ll/12).

4. The Board authorizes the Superintendent to prepare necessary language for a June 2012 parcel tax andpresent it to the Board for approval (reference Board Report No. 197 - llll2).

A combination of advocacy atthe state level and updated financial projections based on ne\ry information hasled to the following:

r A '

oi,ri

l. A potential $104 million reduction in state cuts for 2012-13.a. We have received a commitment from the governor that could result in the reversal of $78.8

million in transportation cuts in2012-13. The 201l-12 portion of the transportation reductionwas partially reversed through the legislature's passage of SBSl late last month (the $14 milliondecrease in the trigger from SBSl was already included in our $557 million deficit). I want toapplaud the Board's leadership on this issue. The potential change in transportation cuts can bedirectly attributed to your swift action to litigate and advocate.

b. We have also received clarification from the governor that we may no longer face 524.9 millionin cuts that could have resulted from the new Weighted Student Funding. I recently testified at aState Senate hearing on weighted student funding proposal to ensure fairness to all Districtstudents. In January the administration proposed to 'hold harmless' districts for2012-13. Thedetails of this proposal are still under discussion at the state level.

2. Updated reporting in the Second Interim resulted in an additional $76.5 million (reference the SecondInterim Informative in Attachment B).

These developments have enabled the restoration if $180.5 million in the District's 2012-13 budget (reference

Attachment A for a detailed list of the items that are being restored). I am recommending that school budget

development rely on these positive updates. However, we will need to continue our advocacy efforts to ensure

the governor's final budget does not undo the transportation restorations or the Weighted Student Funding

changes.

Unfortunately, some of the positive news from the state level has been countered with negative news at the

federal level. Our federal funding allocated to schools has taken a significant hit. In addition, I have

recommended the shift of half of National Board Certification to our Title II funding. To offset these reductions,

I am recommending that we restore $77 million in General Funds directly to schools if we receive additional

funding. This restoration will be included in the three plans below.

I recommend a qualifìed certification and the following three budget plans:

Plan l: We can reduce our 2012-13 deficit by another $60 million if UTLA withdraws their 201 l-12 furlough arbitration or if we win the arbitration.

PlanZ: If we receive one-time negotiated agreements for2012-13 \rye can reduce our deficit by

another $220 million.

Plan 3; Finally, we would need additional revenue from the State or other shared sacriftces to

resolve the remaining $173.5 million.

(Reference Attachment A for a detailed list).

Here are the impacts of the above plans on the District's2012-13 Budget.

Deficit Tracker

Deficit as of February 14,2012

Potential increase in State revenue due to successful advocacy for restoration oftransportation and hold harmless for Governor's weighted Student Formula

2nd interim budeet

Deficit as of Second Interim

General Fund allocation directþ to schools to offset loss of fundin

Deficit as of March 8,2012

Reduction in defrcit after urLA 20ll-12 furlough disagreement is resolved

Deficit

$557 M

- $104

- 76.s

$377 M

+ $13.7 M

$390.2 M

- $60

General Fund allocation di to schools to offset loss of fundi +527 M

Deficit after UTLA 20ll-12 furlough disagreement is resolved

one-time 2012-13 shared commitments with collective bargaining partners

$357.2 M

General Fund allocation di to schools to offset loss offundi

- s220

+ $36.25

Delicit to be reduced if we receive additional State Revenue oradditional $173.5 M

Economic Update:State funding levels of K-12 education are very uncertain for 2012-13 and for years beyond. The three biggestareas of uncertainty are:

1. The revenue assumptions pro-posed under the current state budget proposal may be too optimistic (theLegislative Analyst Office' (LAO) indicates that while job growthanå economic confidénce is rising,persistent joblessness and continuing high unemployment rðmain key problems, causing them toquestion the governor's forecasts).

2. The consequences of the governor's and other ballot initiatives not passing. If the governor,s Novemberballot fails, the 'trigger' in his budget would reduce K-12 education revenúe limit by an estimated $370per student. However, this estimate could grow to $455 - $470 per student due to recent changes to thegovernor's budget proposal.

3. Most troublingly, a combination of lower revenues, either due to economic developments or the failureof the ballot initiatives, could cause a.'rebaselining' of the Proposition 98 minimum funding guaranteeto a historical low point, from which it would take years to recover to pre-recessionary levJlsl

These issues are not accounted for in the above deficit calculations, and they could drive the figure even higher.In addition, the legislature is likely to wait until the May revision to make final budget decisioñs, and theoutcomes of the various ballot initiatives will not be known until November. Financlal uncertainty for schooldistricts will surely be the norm for months to come.

t http://www.lao.ca.gov/an alysis/zor2/update/economic-revenue-up date-o227t2.pdf

Reduction in Force Notices to Certificated Emplovees:Given the economic uncertainty facing the state and the District discussed above, we have no choice at this timebut to proceed with the certificated layoff notices on March 9,2012. These include the following notices:

K-12 ElementaryTeachers 3,302

K- 12 Secondary Teachers 1,254

K- 12 Support Services Personnel 647

Earþ Education Program 687

Adult BlucationProgram 3,617

AllCertificated Adminisüators 2,206

Total ll,7l3On February 14,2012, the Board of Education adopted Board Report No. 148 - ll/12, Reduction in ForceNotices to Certificated Employees, as amended, with:

l. Notices not to be issued until March 8,2012.2. Expedited negotiations with all bargaining units.

As to certificated negotiations with UTLA, they have been ongoing and focused solely on a potential package toreduce layofß. UTLA leadership has been discussing internally the need for a major job-rescue effort but, atthis time, no commitments have been made. UTLA further understands that any package, even if immediatelyagreed upon, would not avoid the layoff notices being sent because there would not be enough time for theunion ratification procedures. Nevertheless, their goal would be to reach a settlement which would make thejob-saving stakes evident to the ratification voters, provide some sense of stability to schools, and enable theDistrict to rescind some layoff notices.

'fhe Human Resources Division will launch a web page on March 9th to assist employees by providing helpfulanswers to questions and resources available during the reduction in force process. The layoff hearings wouldthen commence on April l6th if no alternate solutions are reached prior to this date. In the event that the Districtis in the position to rescind Reduction in Force notices, immediate notification of rescissions will be availableon the Human Resources website where the employee numbers of individuals receiving rescission notices willbe posted. In addition, principals will be sent via email a list of their employees who will receive rescissionnotices. Employees will also receive their official rescission notice by U.S. mail.

Next Steps:The challenges we face are substantial. We have faced harsh realities before, but we must not and cannotbecome coriplacent. We simply cannot count on external aid unless we fìght for it. We cannot come to shared l

commitments unless we always put student achievement first. We cannot rely on new revenue unless weeducate our friends and neighbors on the choices in November. And yet I have hope because \rye are an

organization and community of people dedicated to what is best for our students. We must act and everyone has

a role to play. Here are some key milestones in the months ahead:

o March 16 - March 29: School Budget Developmento May l5 - Governor's May Revise. May 3l - Credit rating meeting for 2012-13 Tax Revenue Anticipation Notes (TRAN)o June I - Third Interimo June 14 -Tentative TRAN sale date so District has cash on July 2ndo June 29 - Budget Adoption

Together we will lower our deficit, retain our valued employees, stabilize our schools, and ensure that ourstudents have the opportunities and futures they deserve.

ATTACHMENT AMarch 13,2012

LOS ANGELES UNIFIED SCHOOL DISTRICT

Fiscal Stabilization Plan

Stabilization Plan as of Second Interim:

* Note: S390 million reduction plan is to address the Second Interim Deficit of $377 million and to allocate $13.7 million of additionalresources to schools.

To be restored: Second Interim Update ($f 04M + $76.5M = $180.5 M) - Items have been restored in the budget,but rescission of notices is dependent on Governor's May Revise

Item Amount6-8 Class Size (maintains current level. instead of increasins, by l) $6.4 MCounselor Ratios (maintains current level, MS 790:1. HS 690:l) $8.0 MAdult Ed (Career Technical Education (CTE) to high school students through theReeional Occupational Prosram ßOP)

$r5.6 M

Magnet Schools (maintains current level of support) sl.7 M4-5 rc\ (maintains current level. instead of increasine bv 3) $20.4 MNurses (maintains cunent ñ¡ndine level) $4.2 MTransportation (restores all but $5M) $29.9 MSafety (police for new schools) $4.0 MOptions (restores seats for approximately 2.200 students) $r3.3 MK-3 (maintains current level24:l instead of 30:l) $63.3 MAccelerating Academic Literacy (AAL) (restores two-period block Tier 3English Language Arts intervention for grades 6-8 at middle schools and grade 9at hish schools)

$4.0 M

Fundins directlv to schools lschool determined needs) $9.7 MTotal $180.5 M

LosAngelesUnified SchoolDistrict's20t2-t3 BudgetBalancing Plan

RESTORATIONS(Tota¡-$390 M¡ll¡onl

Plan I ¡ Items to be restored if UTLA dismisses 'll-12 furlough arbitration or we win arbitration ($60ÙI)

Item Amount

Fundine directlv to schools (school determined needs) s27.0 MAdult Ed (CTE. ESL. GED) $33.0 MTotal $60.0 M

Item Amount

Options (restores 14 centers) $15.0 MEarlv Ed (will be able to serve approximatelv same number of students) $27.0 MFundine directlv to schools (school determined needs) $36.2s MArts (restores Elementary Arts) $18.6 MAdult Ed (expanded CTE, Credit Recovery, ESL/Parent Education) $45.0 MLibrarians (maintains current level) $5.2 M

Cafeteria Suppott (restores 507o of general fund support) $18.2s MSRLDP $36.5 M

Maintenance (restores all but new maintenance company) $8.s M

After School (maintains current level) $6.9 MGifted & Psycholosist $2.8 M

Total $220 M

Plan 3: Items to be cut ($173.5 M) if we do not receive additional revenue from the State.

Item Amount

Financial Managers (middle schools shared financial managers to oversee

student bodv accounts)

$2.7 M

High School Support (schools decide ifthey want to pay for SLC lead teachers,

AcaDeca, Science Center, and extra auxiliary for Athletic Directo¡)$7.3 M

Adult Ed (-47% of program is fee based or eliminated) s84.2 M

Cafeteria Support (50% ofGF support reduced, move to E basis and reduce food

service workers)$r8.25 M

Transnortation (close vacant positions, etc.) $5.0 MMaintenance (new maintenance company closed & reorganization ofmaintenance oositions)

$8.s M

School Funding based on poverty ($85k no longer provided to non-Title Ischools)

$3.3 M

Central & KLCS (move central office positions to E-basis Q7 day pay cut & cut

$ l.6M general fund support for KLCS)$2s.0 M

Effìciencies, Teacher Block Grant, NBC, Expiring Grants (end expiring grartt

Drosrams and move NBC to Title II)sr9.2 M

Total $173.s M

ATTACHMENT BMarch 13,2012


Second Interim Financial Report

This informative provides a background overview of the 201l-12 Second Interim Financial Report ("Report"), which,

under Education Code sections 42130 and42l3l, is to be submitted to the Los Angeles County Office of Education

("LACOE"). The Report contains cunent fiscal year revenue, expenditure, and cash projections for the General Fund and

funds impacting the General Fund. The Board is requested to certiff the Dishict's financial condition as qualified,

meaning the District may not be able to meet its financial obligations for 201 l-12 and the two out-years. In addition, the

Report contains a multi-year projection and fiscal stabilization plan for 2012-13.

I. MAJOR HIGHLIGHTS. The District will be able to meet its financial commitments in 201l-12 and meet the 50á General Fund ending balance ì

requirement set forth in the District's Budget and Finance Policy.

¡ The projected unassigned/unappropriated ending balance is 574.6 million, which is an increase of $56.5 million from$18.1 million at First lnterim. All of the unassigned ending balance has been assumed to support expenditures for20t2-13.

. The General Fund (Restricted and Unrestricted combined) cash balance is projected to be $173.6 million at the end of20ll-12. Inter-fund bonowing is projected to be necessary at various points towards the end of the year. In addition,an estimated cash offset of $68.8 million from redevelopment properfy taxes that State is relying upon is uncertain

and cannot be depended on for cash flow purposes in20ll-2012.

r The out-years show cumulative deficits for 2012-13 and2013-14 of negative $377 million and negative $976 million,respectively (the fiscal stabilization plan is in Attachment A above).

II. CHANGES IN REVENUES, EXPENDITURES, AND ENDING BALANCEo Decrease in 201l-12 Projected Revenues - Since First Interim, there has been a $20.6 million decrease in

projected revenues for General Fund - Unrestricted. This decrease has taken into account the State mid-yearreduction triggers of 53 I .6 million, net of higher ADA revenue of $8.3 million. In addition, other federal

reimbursement revenue sources decreased by S9 million, offset by an increase in State Lottery Revenue of $5.8million.

o Increase in20ll-12 Projected Expenditures - Expenditures for General Fund - Unrestricted are higher by S26.4

million. The mairr reason for this increase is that furlough savings are uncertain and cannot be factored intoexpenditure savings. This expenditure increase is offset by lower Health and Welfare contributions of $15.4million, due to lower participation.

o Increase in Projected Net Contributions/Transfers - The General Fund contributions to resfricted programs

increased by S14.4 million. The primary reasons are an ofßet for the presumption of furloughs in categoricalprograms and higher operating cost in some programs. lnterfund transfers to Special Education Program and

Cafeteria Fund increased by $l1.8 million and $7.9 million, respectively. Conversely, transfers into the Federal

Early Retirement Reimbursement Program and for COP Debt Service declined by $7.8 million.

o Decrease in Ending Balance - The projected total ending balance was lower by $54.0 million. The additionalincrease in unassigned/unappropriated balance of $56.5 million has been factored inthe2012-13 budget.

Components of Ending Balance (in millions)

General Fund - Unrestricted

Fiscal Ye¡r 20ll-12

Second

Interim

First

Interim Variance

Nonspendable $9.5 $9.5

Assigred

Unassigned-Reserve for Economic Uncertainties

Unassigned/Unappropriated

201 l-12 Ending Balance

357.9

65.4

74.6

468.3

65.4

r8.l

(r r0.4)

0.0

56.5

ss07.3 s561.3

. Assigned Ending Balance: Certain account balances remain available to schools and offices for future use.Carryover accounts include school donation accounts, per pupil school discretionary accounts, schooldetermined needs funds, new school opening funds, funds reserved for fire damage, reserve for funding theDistrict's OPEB liability. The assigned fund balance (i.e. carryovers) at Second Interim is lower than the FirstInterim by $l10.4 million. The main factor is the release of $91.8 million of the revenue uncertainty reserveto cover the mid-year trigger cuts and furlough elimination.

III. 2OII-12 PROJECTED CASH BALANCE I

The projected cash balance for the General Fund will be S173.6 million. This is net of a positive $l 19.3

million restricted cash balance and $54.3 million unrestricted cash balance as a result of interfi.rnd borrowingfrom other funds. Two significant changes since First Interim are the uncertainty of $68.5 million inadditional redevelopment property taxes and changes in furlough savings.

IV. 2012-13 AND 20t3-r4 UNRESTRICTED GENERAL FUND (OUT-YEAR PROJECTIONS)The Second Interim projection results in a deficit of 5377 million and $976.5 million for2012-13 and2013-14,

respectively. A higher beginning balance, decreases in expenditures and changes in the assumptions about the

State triggers led to a projected net improvement of $180 million in20l2-13.

o Decreased Revenues - There is a slight decrease in revenue of $2.3 million in2012-13 and a net decrease inrevenue of $l I million in 2013-14. The changes in revenue estimates include the following:

t Zero cost of living adjustment (COLA) is assumed for2012-13 and2013-14.. Increase in lottery revenue due to a lottery rate changes of S7.3 million in2012-13 and $6.6 million in

2013-14.. Decrease in Medical Administrative Activities revenue of $5.2 million due to reduce participant.

' Decrease in K-3 class size revenue of $4.5 million in2012-13 and2013-14.¡ Estimated revenue limit decrease of $21.8 million due to changes in Kindergarten enrollment in 2013-

14.

o Decreased Expenditures - Unrestricted expenditures have decreased by $ 22.3 million and $28.8 million in2012-13 and20l3-14, respectively. The changes in expenditure estimates include the following:. Decrease in salary of $7.9 million based on the 201l-12 Second Interim salary estimate.. Employee benefit cost decreased$22.5 million and $24.5 million in2012-13 and2013-14, respectively.

This is due to a decrease in health and welfare cost contributions and PERS rate changes.r Decrease in expenditures of S8.0 million attributable to changes in kindergarten enrollment.¡ Decrease in expenditures is offset by the cost of parcel tax of $3.9 million, summer schools for 2012-13

of $l million, cost of splitting schools of $2.8 million, and changes in indirect cost of $6 million.. 20ll-12 State Trigger Assumptions -2012-13 Second Interim defÏcit assumed a 57.l million revenue limit

impact with the Transportation revenue to be ongoin g in 2012-13 but eliminated in 20 I 3- 14. The estimatedrevenues do not contain any Weighted Student formula impact to the District.

. Released Prior Year Deferrals - Revenue associated with cash defenals in20ll-12 and 2012-13 ($334

million and $333 million) is used to support expenditures in2012-13 and20l3-14. Part of the 201l-12 cash

deferals was used to offset the impact of the 20 I I - 12 Trigger reduction of S3 I .6 million and loss of savingsfiom turlough of $60.2 million.

¡ Anticipated 2012-13 State Trigger - The 2012-13 estimated budget deficit does not include the $370 to $470per ADA 2012-13 state trigger reduction in the event that the Governor's initiative does not pass.

It is important to note that there is still a great uncertainty regarding the out-year revenue projections due to the trigger

language included in the Governor's Proposed January 2012-13 Budget. There is still the added uncertainty as to the

impact of the proposed V/eighted Student formula to the District.

The Legislative Analyst Ofüce (LAO) estimates that the State general fund may be $6.5 billion lower and its revenue

estimate resulting from the Governor's initiative continues to be lower than the administration's. Accordingly, if any ofthis lower revenue forecast proves to be accurate, the State will need to identiff additional solutions and/or revenue s to

balance 2012-13 State Budget.

(Reference Attachment A above for a list of proposed balancing alternatives)

ATTACHMENT CMarch 13,2012


Options: Adult Education Program

The planned redesign of the Division of Adult and Career Education aims at sustaining vitally needed educational and

career preparation offerings for District high school students and adults. 'l'he redesign scenarios that follow, with the

exception of Scenario A, are based on amounts of available funding resulting from potential negotiated agreements withthe District's labor partners. (Note: To augment the budget, the Division is exploring the possibility of chargingfees forclasses currently offered at no cost, as well as increasingfeesfor thosefromwhichfees are presently collected.)

Scenario A: Items Restored in the Budget

Total2012-2013 funding of $15.6 million would be dedicated to continue providing Career Technical Education (CTE) to

District high school students through the Regional Occupational Program (ROP).

FiscalYear Amount

HighSchool

Students

20lt-t2 $15:60 46;075,

20t2-12 $ 15.60 46,075

Reduction s0,00. 0,

Scenario B: Furlough Arbitration

Total funding of $33 million would be utilized as follows:

' High school credit recovery classes through 100 Individualized Instructional (1.I.) labs at District high schools. High school credit recovery classes through LI. lab instruction at 10 of the Division's largest facilities. 1 60 ESl/Parenting classes at District elementary schools, under the supervision of the Division principals at

the l0 sites. I 50 ESL classes for high school students and adults at the l0 Division sites. 50 CTE classes for high school students and adults at the l0 Division sites. Transportation of high school students to the l0 Division sites. GED preparation and testing for adults. Significantly reduced Division Central Office operation

Scenario C: Negotiated Agreements with Labor Partners

This assumes the availability of an additional $45 million-to add to the S33 million from Scenario B, for a total of S78

million-through the receipt of additional revenues from negotiated agreements with our labor partners.

' An additional l0 Division sites would offer credit recovery and CTE classes for high school students and adults,

as well as ESl/parent education classes. Increased credit recovery, CTE classes, and the ESL/Parent Education classes at the original l0 sites. Additional transportation services to high school students taking classes at Division sites

Class

Description

Concurrent Students

Change

Adult Students

Change

Current FY

20n-t2Scenario B

2012-13

Scenario

c2012-l3

Current

FY 201 l-12

Scenario

82012-13

Scenario

c20t2-l3

Apprenticeship I I t24 124

Citizenship 2 2 836 836

ElementaryBasic Skills 3,539 (3,539) 18,961

English

Second

Language 696 696 I18,006 72,000 36,000

Health 39 39 346 346

Parenting 8,966 8,966 26,082 5,ooo 5,000 (r6,082)

Program forOlder Adults t9 (1e) 9,412 (9,412)

Secondary

Basic Skills 32,278 32,278 27,202 15,278 I1,480 (444)

Vocational Ed

(crE) 6,032 2,400 3,632 47,612 4,800 42,812

TOTALS 51,572 44,382 3,632 (3,ss8) 248,581 98,384 es2n (54,90Ð

ATTACHMENT DMarch 13,2012


Optiops: Early Childhood Education Programs

Early Childhood Education (ECE) provides full-day, full-year and part-day, part-year programs to servechildren from six weeks to frve years of age. The programs are funded by the Califomia Department ofEducation, Los Angeles Universal Preschool, and District general funds. This paper includes programdescriptions, program scope, and budget information for the 20ll-2012 school year and proposed scope andbudget for 2012-2013. This proposal is contingent upon negotiated agreements with the labor partners.

Early Education Centers:

The full-day, full-year early care and education progftlm is for two through five-year olds, prior to kindergartenentry. The program supports child growth in the areas of cognitive, language, sociaVemotional, and physicaldevelopment using an approach that is developmentally, linguistically and culturally appropriate. At the sametime, the program meets the child care needs of low income families in our District communities. Familiesmust be working, attending a training program or actively seeking employment, and must meet Statedetermined income criteria to be eligible for this program. It is supported by California Department ofEducation and Federal Child Development funds.

In order to decrease the Early Childhood Education (ECE) encroachment on District general funds, ECE isproposing a reduction in the number of early education centers from 107 in 2011-2012 to 84 in 2012-13.Twenty-four small early education centers with licensed capacities of 85 or fewer students will be closed.Small centers generate less revenue making them more expensive to operate. Two new early education centers,Central Region #2 and Glassell Park, funded by bond measures, are under construction and projected to belicensed to open in summer and fall 2012, respectively. In addition to opening these two new centers, we plan toincrease the number of students enrolled at the remaining 84 early education centers. By operating only thelarger centers at full licensed capacity, ECE will be able to provide full-day, full-year services to 10,000students in20l2-13 as compared to 10,060 students in 201 l-12 maximizing our contract with CDE as well as

minimizing the ECE District encroachment.

20tl-2012 Current and

Number of Earlv Education Centers: t07

District General Fund: $25,000,000

Number of Early Education Centers: 84

2012-2013

District General Fund: s26,090,512

Early Childhood Education Programs at Elementary Schools:

The part-day Califomia State Preschool Program and the Pre-kindergarten Family Literacy Proeram are threehour, frve-day per week programs for three and four year old children. The program supports child growth inthe areas of cognitive, language, social/emotional, and physical development using an approach that isdevelopmentally, linguistically and culturally appropriate. Families must meet State determined income criteriato be eligible for these programs. Both programs are supported by California Deparfnent of Education funds.

In order to increase the number of students served in the part-day, part-year California State Preschool Program,29 classrooms at elementary schools will need to be licensed by the Deparnnent of Social Services (DSS). Thelicensing process can take several months as it involves multiple visits by DSS and the fire department. Thecooperation of these two agencies will be key in expediting the licensing process. When programs aremaintained at ñ¡ll enrollment and proper stafüng is utilized, this program has the potential to generate funds andreduce the encroachment.

20ll-2012 Current

CDE Funding: $15,235,000

2012-2013

*3 of the elementary school sites/I3 classrooms are located at charters

Los Angeles Universal Preschool (LAUP) provides full funding for two District preschool classrooms for fouryear old children. The program supports child growth in the areas of cognitive, language, sociaVemotional, andphysical development using an approach that is developmentally, linguistically and culturally appropriate.LAUP is tunded by First 5 LA.

LAUP currently provides full funding to operate two preschool classrooms and enhancement funds for 22classrooms. Enhancement funds are used for professional development activities and instructional materials.ECE has requested approval from LAUP to use the enhancement funds to support full program operations forfive additional classrooms for a total of 282 preschoolers.

20ll-2012 Current

CDE Funding: 520,110,464

LAUP tundine: $380,160

Number of fullv funded sites:

School Readiness Language Development Program:

The School Readiness Language Development Proeram (SRLDP) is a part-day, part-year program for children

who will be four years old by December 2nd of the year of enrollment. The program stresses oral language

development, kindergarten preparation and parent participation and education.

SRLDP classes are in session for 2-hours, 20-minutes, Monday through Thursday. Children may attend either a

moming or afternoon session. Fridays are pupil free days for the teacher to conduct parent education sessions

as well as for planning, preparation and professional development activities. Enrollment in SRLDP does not

require families to meet income eligibility criteria as in the Early Education Centers and Califomia State

Preschool Programs at Elementary Schools.

20ll-2012 Current

Number of sites:


Number of sites:


Infant/Toddler Programs at or Near District High Schools:

California School-Age Family Education (.CalSAFEl is a ñrll-day, part-year program for infants and toddlersand their high school-age parents. The program provides support services for enrolled expectant or parenting

students to improve academic achievement and parenting skills and to provide quality child care and

development for their children. It is supported by California Departrnent of Education funds.

Funding for the CaISAFE program for the 2012-13 school year has not been confirmed by the CaliforniaDepartment of Education. In the event that the CDE does not provide funding ECE is requesting that Districtgeneral funds be used to support this essential program for teen parents and their very young children.

20ll-2012 Current

LAUP funding: $1,085,000

2012-2013

Number of sites:

District General Fund: s247,838

20'i2au3

Number of sites:

District General Fund:

Conclusion:

The District offers a wide variety of special education programs, supports and services for children birththrough 5 years of age with identified disabilities. Services are provided at elementary school SRLDP and

CSPP classrooms and early education centers. Both state and federal funding is funneled through the Divisionof Special Education. There are currently 680 preschool students with special needs fully included in these

programs. Each student's IEP mandates l}}%oparticipation with typical peers. The closure of SRLDP and

early education centers will require the District to provide an alternative inclusive placement. The families ofchildren with special needs are not required to meet financial eligibility criteria.

The part-day, part-year progftìms funded by Los Angeles Universal Preschool and the California Department ofEducation can be sustained with no additional support from the District. The firll-day, full-year programs at

early education centers will require $26,090,512 from the District general fund. The continuation of the

infanltoddler program at District high schools will necessitate the allocation of $967,948 from the District.$36,500,000 from District general funds will be needed to continue the School Readiness Language

Development Program at a reduced number of sites.

ATTACHMENT EMarch 13,2012


Options: Elementary Arts ProgramProposals for 25o/or 507o and 75o/o Budget Restorations

Efforts at raising funds from the orivate sector

Although there are coordinated efforts in place to identifu private funds to support the District's adopted Arts

Education Plan, so far no significant amount has been raised.

Shift to a focus on learnins in and throush the arts in the Common Core

In anything less than a full restoration of the Elementary Arts Program budget, the focus of the program willshift to the relationship of quality arts instruction to the District's roll-out of the new Common Core State

Standards. Pedagogy common to all content areas may be addressed effectively through arts teaching

strategies, and the reflective processes inherent in quality arts instruction nurture student inquiry, criticalthinking and creative expression. The Elementary Arts Program will assist schools in targeting practices that

move students to the deeper levels of thinking required by the Common Core. The Arts Education Branch willtrack data to document increased student achievement and other indicators of school success that are the result

of a high quality education that includes the arts.

If the District is successful in negotiations with our labor partners, the core Elementary Arts Program will be

fully restored to its current level. However, in the event schools are not able to augment their arts instruction

through school purchases as in previous years, there may be a necessity to redesign the program distribution.

Below we are presenting three scenarios at 7 5o/o, 50Yo and 25o/o to be used as we continue to seek private funds.

\üith a 257o restoration. 60 schools will be identified as Arts at the Core* elementary schools, distributed

equitably across the District. Schools applying for the program will agree to a binding commitment toprofessional development, a collaborative instructional model, action research and data gathering.

With a 507o restoration. in addition to the 60 Arts at the Core schools, an additional 98 Arts Focus*

elementary schools will be identified, with a commitment to professional development and a collaborative

instructional model. A total of 158 Arts at the Core and Arts Focus schools would be served.

With a 757o restoration, the number of Arts Focus elementary schools will increase to 196. A total of 256

Arts at the Core and Arts Focus schools would be served.

Schools served will be selected by application and an effort will be made to respect articulation into middle and

high schools with strong existing arts programs so that students within those feeder patterns may be prepared

for advanced work.

*The difference between the Arts at the Core schools and the Arts Focus schools would be the amount of direct arts instruction

provided and the level of commitment to action research and data collection.

Proposal for 25o/o Restoration of Arts Education Branch Budget: $4.65 million

In one year:

700 studentsper schoolcould receivefoundationalinstruction inone or twodisciplines,one day perweek for aminimum ofone semester

Over thecourse ofthesix or sevenyears oftheelementarygrades, everystudent couldreceivefoundationalinstruction inall fourdisciplines

Schools will be selected by application and will be distributed equitably throughout the district.Binding Criteria:

e Commitment to action research and data collection on achievement in arts literacies, achievement in Common Core assr

attendance, student engagemeht and parent satisfaction

r Common assessments of arts benchmarks in grades 2 and 5

. Commitment to professional development for school faculty in the Arls Inslruclionai Guìdes and the role oflearning in and through the ans in the Common Core

. Arts Implementation Plan embedded in the school's Plan for Student Achievement, designed for evety student

to receive foLlndational instruction in all four art forms in their K-6 experience. Collaborative delivery of instruction by 1.) Elementary Arts Teachers, 2.) Classroorn Teachers, 3.) Arls

Community PartnersDesirable Criteria:

. Purchasc of additional semester(s) of arts instruction

. Matching contribution of funds for arts community parlners, materials and supplics. teacher lead stipends

(Note: The rotio of credentialed orts teocher to students in this model is in Iine w¡th thot of mony urban districts throughout the

notion, includinq Atlonto, Boston, Dollos, Philodelphio, Pittsburg New York ond Seottle.)

60Arts at the

Core Schools

Datawill begathered andtracked to defìnebenefits of artseducation androle of the artsin CotnmonCore instntctionand assessment

(From 5-9 semesters, depending on enrollment)

Average: 7 semestersVocal Music: full year, I day per weeklnstrumental Music: full year, 1 day per week (instruments included)Dance: one semester, I day per weekTheatre: one semester, 1 day per weekVisual A¡ts: one semesteç I day per week(Schools mqy opt to purchase additional senester(s) in any discipline)

$5,000 for capacþ building: arts partnerships, teacher training rate,

textbooks, materialsProfessional development for generalist classroom teachersParent workshops in the arls

Proposal for 50o/o Restoration of Arts Education Branch Budget: $9.3 million

(slightly more than the state's annual Arts and Music Bloc Grant currently in Tier III)

# of Schools Arts lllstl'uctiolr # ol'Al'ts # St¡rlcrrts Scrr e tl l)e r'l'eaclters Scht¡r¡l


Average: 5 semestersMusic: full year, I day per week, either Vocal or InstrumentalDance: one semester, I day per weekTheatre: one semester, I day per weekVisual Arts: one semester, I day per week(Schools mqy opt to purchase additional semester(s) in any discipline)

o Professional development for generalist classroom teachers

500 students perschool could receivefoundationalinstruction in one ortwo disciplines, oneday per week for aminimum of onesemester

Over the course of thesix or seven years ofthe elementary grades,

most students couldreceive foundationalinstruction in at leastthree discioli

98Arts Focus

Schools

r58Tot¿rl

100

Total


o Commitment to professional development for school faculty inthe Arts Instructional Guides and the role oflearning in and through the arts in the Common Core

o Arts Implementation Plan embedded in the school's Plan for Student Achievement, desigrred for every student toreceive foundational instruction in all four art forms in their K-6 experience

. Collaborative delivery of instruction by L) Elementary Arts Teachers,2.) Classroom Teachers, 3.) ArtsCommunity Partners

Desirable Criteria:o Purchase of additional semester(s) of arts insffuctiono Contribution of funds for arts community partners, materials and supplies, teacher lead stipends

Proposal for 75o/o Restoration of Arts Education Branch Budget: $14 million


. Commitment to professional development for school faculty in the Arls Inslruclional Guides and the role oflearning in and through the arts in the Common Core

¡ Arts Implementation Plan embedded in the school's Plan for Student Achievement. designed for every studentto receive foundational instruction in all four art forms in their K-6 experience

. Collaborative delivery of instruction by 1.) Elementary Arts Teachers, 2.) Classroom Teachers, 3.) ArtsCommunity Partners

Desirable Criteria:. Purchase of additional semester(s) of arts instruction. Contribution of funds for afts communify partners, materials and supplies, teacher lead stipends

. .:

700 See information on

'hoþosal fór25V;Restoration

See infonnation on hoposal for 25o/o Restoration


Average: 5 semesters,-4:Ì=? | tvtusic: full year, I day per week, either Vocal or Instrumentalòcnoots

I Dun.., one semester, 1 day per weekTheatre: one semester, I day per weekVisual Arts: one semester, I day per week(Schools tnay opÍ to purcha.se additional semester(s) in any dis¿¡pl¡ns¡

. Professional development for generalist classroom teachers

500 students per schoolcould receivefoundational instructionin one or twodisciplines, one day perweek for a minimum ofone semester

Over the course of thesix or seven years oftheelementary gracles, moststudents could receivefoundational instructionin at ieast threedisciplines

ATTACHMENT FMarch 13,2012

LOS ANGELES I.JNIFIED SCHOOL DISTRICT

Options: Food Services Program

l.

Enry L,ewl Positiom = 8l (Cafeterl¡

Heþ¡s) $2,153107 a¡d 120 Food ServbeIÄ/o¡kers 103,360,000 and 4 Range Cook

- SI7E,545. \A/ith these cbsures thb

chss willbeelininate¿ Clo6e2ìr\¡od<er III poolims ($i17213).

s s:t@ps

$ ã8,017

î z4mJs6

nr¡nber of søffh schoob wilbe rrôrcedûre partþþtim bwb ma schoolþbasb as has þen the pactbe for sewral

usirg the 'hbor Opimizatin" process. Thb

rcdr¡ce the nunþr of POS thereby

reçirig mae snrdens to go throrgþ

at each whdorv. The nunber ofPOS open

meal perird may not ¡neet rhe standad thn¡proþctixs rsedþ food servbes (a maximrm

75 studcnr per whdowßomh; 150 students per

mh at modemiæd si¡æ a¡d 100 - 125 per 30

at reguhr scramble POS). llcre wi! tto

be saffor hbor hous albcatcd to atte¡rpl

miligate tlr impact of an irsuffbbnt number ofperi¡ls northe þngth oftine at meab

Princþb andTeachen at sorcneed to r€assess the importance ofstudents

to eat and ebngaæ cunent meal perirds

add additkxnlperb& to ml¡gate the þssened

of POS's and saffcor¡H ¡npâct tlßh whbh meab are offercd and tlæ tpes

meab senæd For examph, box hmches only

be offered to sebcted schoob and hot meab

elsho9þln1rÞ--{egreg--

ilentifcd for rcductim are liæTheh elimiratim will reS¡ieto.work more with staff. Orc Asst

Proúrtin lvlamget's reù¡ctbn will r€suft hProductirr lvlanager spcndirg more time on

chsses that are ilentifed fü rc&rtbnsretah sutrrcr¡t person¡relto ¡ræet Food

Divbirrn requicments as tlæ¡e a¡e

rcrnahbg h each ofthe reóred

Unit0 297

Nerrman Nutrition Center Position Closurrs

¡e 5 poshims (l Assbant Food Manager)

Food lYarthousc Position Closurrs

38 Food Warehose poslixs

UnnC 4

UnfrS I

UnfrC 25

UnirD 9

UnlS 3

DbtRep I

Ce nlr¿l Oflìce Position.Closureslose 12 CentralOffice positions

AND

$ 1.09s.607 Training will be reduced. Financial reportirg,

metric ¡eporting willbe slowed. Response lo

requests for anayses, audit inquhes, and relaled

deliverabþs willbe slowed. Admin dutþs such as

answering phone calls, ordering supplies,

responding to parent correspondence, will be

impacted.

Unit D 5

Unit S 4

Dis Rep 2

AALA I

Meal Price lncreâse

lncrease meal prices at elementary schools from

$1.00 to $1.50 and from $1.50 to S2.00 at the

secondary level. This rvill bring us closer to the

USDA requbement of hâving the paid meal

category having ro match the free reimbursemenl

by 2015.

Incrementally by 50 cents peryear

s ó.840,000 2 )ossible loss ofparticþalion due 1o the price ofneals

ANDBr€akfasl In The Classroom

Breakfast in Classroom (BlC) - Requiring all

schools to move to a breakfast in the chssroom

program or a breakfast after the frst bell (grabJr-

go for secondary schools) aa'

Netsavings = $ 23,069,804

Less lncentivc Program = $ 5.000.000

s 18,069,804

Note: The increase in revenue will be realized

over the period of FY 13. This program required

start-up funds per school the exact amount 1o b€

detennined wfh implementation at each school.

s 18,069,804

-.22 Will have an impact on school schedules as schools

adjust to having breakfast after the first bell;

impact to teacher instruction as they adjust for the

first l0 minutes ofschool for breakfast and

instruction.

An incentive program will be provided to school

sites that willbe paricipating in lhe progam. The

\¡o current

)olicy exs¡sts t(

nandate a

¡reakfast

lrogram and

nay reqube a

rcard policy to

worth 5M ofthe 23.069M savings

Close The Ne wman Nutrition Center

Eliminâte the Nervn¡sn Nutriaion Center and

utilÞ¡ vendor partnershþs to produce and bring

foods directv to schools

$ 10.000,000 2 mpact to 160 Food Services employees who may

rot be absorbed in schools; labor would be

'eplaced by vendors; for emergencies, NNC is the

isted food d¡stribution location for LA County -

rnother facility willneed to be determined.

PC Rules

t,abor Codes

Ed Codes

No cMcntpolicy exsists

requiring Food

Services to

continue

services

lhrough the

NNC

S 4l:¡f53'.{09'

Jnit C 22(

Jnit D

Jnit S

{Ä.LADist ReD

Total Positions 25:

Slând Total Poslions Cú 2t

LAUSD Budget for March 13, 2012

Documents