1. Plan to Address 2013-14 BUDGET

2. SEQUESTRATION The Kentucky Department of Education held a webinar and told districts to be conservative when writing next year’s budgets and that, at this point, the sequestration will include at least five percent cuts to the state each of the next 10 years, unless Congress can figure out a way to reverse them.

3. SEQUESTRATION True effects of sequestration are still unknown. Expect to learn in May how much less money will be funneled from the federal government. The across-the-board cuts apply to many federal programs, including USDOE, Title I, Title II grants, special education, and federal pre-school. Locally, this darkens the fiscal picture of our district as we face cuts already made at the state level. This loss of funding is at a time of increase in expenditures. District is state mandated to increase input for employee retirement; the cost of services has increased and fuel costs are unpredictable. No increase for Support Education Excellence in Kentucky (SEEK) funding = greatly reduced budget. The sequestration is creating a situation where funding for some positions is gone. The funds aren’t there anymore, so now we are forced to reduce positions.

4. SEQUESTRATION 10% Reduction for 2013-14 % of reduction in FY 13 will be same for next 10 yrs. 2012-13 Current Funding 13-14 10% Less 14-15 10% Less 15-16 10% Less Total Reduction of 3 Consecutive Years Title I584,321 523,189 = (1 teacher & 1 assistant) 470,870423,783 141,784 Title II135,693122,124109,91298,92133,096 Special Ed585,149526,634473,971426,574142,718 Federal Preschool 60,53354,48049,03244,12914,764 Allocated Amount 1,365,6961,226,4271,103,785993,407 Reduction Amount --------122,643110,37999,341 332,362

5. END OF FEDERAL STIMULUS MONEY In 2009, Kentucky districts received federal stimulus money that lasted two years, ending June 2011. Union County used these dollars to increase staffing (13 certified & 12 classified). ProgramAward Amount Title I ARRA328,854 IDEA B ARRA688,012 Preschool ARRA46,273 EDU Jobs ARRA559,860 Fed. State Fiscal Stabilization1,691,416 Total Federal Stimulus3,314,415

6. State Projects Funding Cuts-Last 6 Years State Grants for Entire District FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 Reduction Since 2008 FY 14 Textbook78,74343,201--0-- 78,7430 PD49,12917,7979,7739,7729,056 40,073? ESS127,39353,44643,39643,39845,60744,91282,481? Total Allocation255,265114,44453,16953,17054,66353,968 201,297 (Services Continue) ?

7. Other Funding Concerns Nurses in Schools: (reviewing different options) – Cost has increased drastically: In 2011-12 was $55,000; in 2012-13 was $85,000; cost for 2013-14 is $175,000. Green River Health Department has already reduced services of 3 assistants in March 2012. KSBIT: – Current assessment is $289,000 SEEK: – No increase for employees’ salary in years from the state. However, district salary schedule still includes step and rank increases ---current & projected cost locally: 2012 = 142,788 2013 = 138,148 2014 = 139,500 2015 = 141,000 2016 = 142,700 Total = 704, 136

8. Unfortunately, What This All Means… Government loses revenue, staff loses jobs, and students will have fewer resources! As we are forced to reduce our working budget, we will remain focused on our core competency of teaching and learning and be committed to providing a quality education to our students. The reduction in Union County will begin at the district level.

9. Suggested Reductions for 2013-14 Budget – District Efforts 5 Days Reduction for all Directors/Coordinators = $14,990 RtI District Position = $61,935 Reduce 1 District GT Position = $45,000 (Combine Middle and High) Reduce all Instructional Coaches 5 Days = $6,325

10. Suggested Reductions for 2013-14 Budget Continued Close SES Afterschool Childcare = $25,765 Reduce Dental benefits = $108,432 Reduce % of 401K/403B = $93,091 Reduce Bus Purchase for 2013 = ? (1 bus = $85,000, usually purchase 3 each year - $255,000)

11. Basic Staffing Allocation (Board Policy) Reductions: MES: 2.5 teachers, 1 aide SES:.5 teacher & 2 aides UES: 3.5 teachers & 1.5 aides UCMS: 3 teachers & 1 secretary UCHS: 2 teachers Total Certified Positions = 11.5 Total Classified = 5.5 Total Amount of Reduction = $623,986 Total Personnel for UC: Prior % Personnel = 86% 2013-14 % of Personnel = 82% Total of All Reductions for 2013-14 Budget = $979,524 ($20,476 from 1 million dollar budget reduction)

12. Additional Efforts for 2013-14 Budget UCLA Principal; Position Remain Vacant = $70,000 Maintenance Position Remain Vacant = $27,561 Take 4% Tax Rate for 2013-14