Lausd Budget

8/3/2019 Lausd Budget

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2012-13 Budget Update

February 7, 2012

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LAUSD is facing its 5th year of deficits.

The Los Angeles Unified School District (LAUSD) is facing a $557 Million

deficit in 2012-13. From 2008-09 to 2012-13 we have faced cumulative

deficits of $2.8 Billion. Each year, California continues to balance the States

budget on the backs of our children.

* Source: http://www.cbp.org/pdfs/2011/111012_Decade_of_Disinvestment_%20SFF.pdf


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8,000 valued employees have lost their jobs.

YEAR DEFICIT BALANCING SOLUTIONS

2008-09 $427 M 415 Non-Instructional layoffs and one-time cuts

2009-10 $838 M Over 2,900 layoffs (2,520 Instructional + 398 Non-Instructional positions), furloughs, Federal Stimulusfunding, and program cuts

2010-11 $620 M Over 1,600 layoffs (619 Instructional + 989 Non-Instruction positions), furloughs, Federal Stimulusfunding, program cuts and one time savings

2011-12 $408 M Over 3,000 layoffs (1,914 Instructional + 1,109 Non-

Instructional positions), one time federal educationjobs money, furloughs, and one time savings

2012-13 $557 M Over 7,500 employees may receive layoff notices*


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What cuts have we made already?

Reduced Administrative and Support Office Space & Costs

Since May 2009 LAUSD has terminated 92 leases with an

aggregate monthly rental expense of $2.1 million,representing 682,000 square feet of space.

Leased space has gone from 1.26 million square feet to

approximately 500K square feet since 2009.

This is approximately 9 football fields of space eliminated inthe last three years. 90% of this space was for administrative

support to schools.

In 2012-13, Central office administration costs are projected

to represent 5% of general fund, unrestricted revenues.


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LAUSDs revenue continues to be less than the

State owes us.

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The State is sending IOUs to schools districts

instead of cash.

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The Governors proposal only prevents the

situation from getting worse.

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What are we facing now? The Governors Budget Proposals for 2012-13 cuts LAUSDs

transportation budget and relies on a temporary tax initiative 100% reduction of home to school transportation funding

The Governors budget proposal depends on the passage of aNovember temporary tax which will pay down existing deferrals(money owed to schools already), there will be no new fundingfor schools, next year

What if the Governors tax measure fails? Education is cut an additional $2.4 billion, about $370 per

average daily attendance (ADA)


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We can barely afford the legally required

minimum levels of service for our students.

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The Base Program is comprised of:

Minimum staffing levels required by law Ed Code

Court Orders/Decrees/Settlements

Minimal operational recommendations

Bargaining Agreements (some, but not all elements) 95% of dollars allocated to schools operations

5% of dollars allocated to local districts and central office operations

The Base Program accounts

for approximately $2.3 Billion

of a $2.7 Billion UnrestrictedBudget.

After paying for the MINIMUM LEVELS OF SERVICE required by

law, we have only approximately $353 million for all other

program investments


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Without additional revenue, we must make

drastic cuts.

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We canonly fundourpriorities up

to this line.Anythingabove isunfunded.

We canonly fundourpriorities up

to this line.Anythingabove isunfunded


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Los Angeles Unified

School Districts

2012-13 Budget

Balancing Plan

Option 1

NEW ONGOING SUSTAINABLE

REVENUE SOURCE*

Governors RevenueInitiative

Local Revenue Initiative Other State Initiatives

Option 2

PARTIAL LIMITED NEW ONGOING

SUSTAINABLE REVENUE SOURCE

1 or more initiatives fail:

Governors RevenueInitiative

Local Revenue Initiative Other State Initiatives

WITH SHARED COMMITMENTS

AND CUTS

Option 3

NO NEW ONGOING SUSTAINABLE

REVENUE SOURCE

AND NO SHARED COMMITMENTS

EQUALS All cuts implemented

CURRENT DEFICIT $557 MILLION $557 MILLION $557 MILLION

BALANCING REDUCTIONS

$0Up to $362.7

MILLION *

Reductions

required to close

operating deficit

$557

MILLION

RESTORATIONS $557

MILLION

Restoration of

services and

programs to

students.

Up to $194.3

MILLION

Restoration of

District programs

and services closest

to classrooms andschools.

$0

* The District has an ongoing operating deficit due to declining enrollment and other factors. In order to eliminate the ongoing operating deficit, the District will have to reduce expenditures by

$362.7 million unless an ongoing sustainable revenue can be found.

* * Grave consequences will be on-going for programs into 2013-14 and further.

Budget Balancing OptionsWe are moving forward with Option 1, which relies on new revenues & shared

commitments. Option 2 and Option 3 are contingencies should Option 1 fail.


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Summary of State Initiatives*

Proponent Total Revenues

Generated

Education Revenues

Generated

Source of Additional

Revenues

Duration

Governor Jerry

Brown

$7 billion Limited additional funds

offset state General Fund

obligation

Half-cent sales tax, up to

2% increase in personal

income tax for high-

income earners

Up to five years

Molly Munger (PTA

supported)

$10 billion $7 billion in first three

years; $10 billion

thereafter

Increase in personal

income tax for all but

low-income earners

Ten years

California Federation

of Teachers (CFT)

$6 billion $3.6 billion for K-12 and

higher education

Up to 5% increase in

personal income tax for

those earning more than

$1 million per year

Permanent

Rescue Education $3 billion $1.1 billion for K-12; $1.4billion for community

colleges

15% oil severance tax Permanent

John Burton $2 billion Limited one-third for

higher education,

remaining to the state

General Fund

12.5% oil severance tax,

with some exceptions

Permanent

*School Services of California Governors Budget Workshop Materials


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Local Revenue Initiative: $200-$300 Million

Why do we need it?

The Governors proposal provides no new funding for

education, it only prevents the problem from gettingworse. The temporary parcel tax will be used to stabilizeour local schools:


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Even if BOTH the Governors tax measure & a Local RevenueInitiative succeed, LAUSD would still be forced to make program

cuts and layoffs

Factors contributing to the need for these remainingsolutions include:

Expiring or discontinuing grants or other restrictedfunding sources,

Loss of federal and state stimulus dollars, Loss of one-time savings measures, Declining enrollment, Reductions in state and federal categorical programs, Increasing operating costs.

We will still have to find $250 - $350 million insolutions (new revenues or cuts).


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What can you do to help?

Learn more about Local and State revenueinitiatives.

Your elected representatives speak for YOU. Theyneed to know your opinions in order to carry yourmessage in Sacramento. To find and contact your

elected representative to express your position on publiceducation and funding for public education please visitthis website: http://www.leginfo.ca.gov/yourleg.html.

Encourage perfect attendance for students,teachers and staff.

Contribute to the LA Fund for Public Education tosupport individual schools or programs.

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