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1 Meeting of the Board of Education February 15, 2011 Budget Reductions and Revisions Phase IV.

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Presentation on theme: "1 Meeting of the Board of Education February 15, 2011 Budget Reductions and Revisions Phase IV."— Presentation transcript:

1 1 Meeting of the Board of Education February 15, 2011 Budget Reductions and Revisions Phase IV

2 2 Child Care The Budget includes significant cuts to child care for , including: Eliminating services for 11- and 12-year olds Reducing eligibility from 75% of the state median income to 60% A family of four can earn no more than $45,832 per year Lowering subsidies provided for services To soften the impact of cuts, the Governor proposes providing local agencies with greater latitude to manage copayments and other fees

3 3 Child Care For , the Governor proposes reversing the enacted, but legally challenged, cuts to Stage 3 child care by directing $42.6 million in one-time federal funding As of April 1, 2011, the Governor expects lower subsidy and eligibility rules to take effect for programs, such as Stage 3 child care Funding for would continue, but based on lower levels and more restrictive eligibility

4 4 Child Care Funding Total $2.3 billion Proposed $1.6 billion LBUSD needs to be prepared for a reduction of approximately 35%

5 5 Multi-year Projection Assumptions Proposed initiative is not successful ($634/pupil) 1 st Interim assumptions w/reduction ($18.32/ADA) CSR revenue continues at levels (in cuts) Board actions of 2/1/11 are listed as “Ongoing reductions” Categorical programs absorb all costs If Board approved all recommendations tonight; LBUSD will still have to make another $60 million in reductions next year (for ); and $32 million the following year (for )

6 6

7 7 Legislative Analyst: Unsuccessful Initiative LAO issued recommendations for if the proposed initiative is unsuccessful LAO’s recommendations would result in a reduction in K-12 funding of $760/pupil This identifies downside risk $10 million greater than the risk identified in LBUSD estimate of $634/pupil LAO’s number is not included in LBUSD multi-year scenario

8 8 Summary of Board-Adopted Budget Reductions PhaseBoard Action DateApproved Amount Estimated Savings Budgeted I $ 17,700,000$ 17,820,087 II & ,180,63433,891,991 III ,922,000 IV ,600,0003,700,000 V ,244,665 I ,403,435 II ,586,509 III ,191 IV ,853,000 Total$ 116,068,434$ 111,999,878

9 9 LBUSD Board-Approved Budget Reductions Since FY Date $ in Millions Fiscal YearDate$ in MillionsFiscal Year $ $ & & & & Total$ 180.8

10 10 Major One-Time Funding & Flexibility for General Fund Description Expenditures in Fiscal Years Funding / Flexibility Ends (Proposed) Total Funding Amount Federal ARRA $ thru Sept. 2011$90 million *** Federal ARRA Education Jobs Bill Sept. 2012$16 million State Class Size Reduction (CSR) Reduced Penalty thru June 2014Varies State Tier 3 Flexibility thru June 2015$67 million ** State Categorical Ending Balance Sweep thru June 2010 *$33 million * Ended ** Projected *** Includes $3.9 million of additional SFSF funds

11 11 Budget Reductions and Revisions, Phase IV* *Assumes Governor Brown's Proposed Initiative to Extend Taxes is Not Successful

12 12 Budget Reductions and Revisions, Phase IV*, cont’d

13 13 THE END


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