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District Response to State Fiscal Crisis Board Meeting November 5, 2008 Prepared by: Dr. Cathy Washer Mr. Douglas Barge Ms. Carrie Hargis Y: Business Services/Board.

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Presentation on theme: "District Response to State Fiscal Crisis Board Meeting November 5, 2008 Prepared by: Dr. Cathy Washer Mr. Douglas Barge Ms. Carrie Hargis Y: Business Services/Board."— Presentation transcript:

1 District Response to State Fiscal Crisis Board Meeting November 5, 2008 Prepared by: Dr. Cathy Washer Mr. Douglas Barge Ms. Carrie Hargis Y: Business Services/Board Agenda/2008/09/B11-05-08/District Response to State Fiscal Crisis

2 Executive Summary i  This report shows a breakdown of the various activities being proposed to prepare for the State’s mid-year review of their 2008/09 budget plan and expected problems facing the District next year  Staff has reflected upon the Board and community discussion at the October 28, Board of Education meeting  The report recommends:  Expenditure restrictions for the current year to help build reserves  Superintendent’s Budget Advisory Committee involvement in the planning process  A budget development process  A delay in program implementation  A study of the operations of the James Arieda Education Support Center (JAESC)

3 Table of Contents A. Introduction B. Processes Already in Place C. Ideas for Savings This Year D. SBAC Work E. Issues with Tight Timelines F. Future Development Options G. 2009/10 Planning Process H. Budget Modeling I. Additional Suggestions from the Board J. Recommendations K. Appendix 1 2 3-4 5 6 7 8 9 10 11 Description Page # ii

4 IntroductionIntroduction 1  On October 7, the Board received a report outlining the State’s 2008/09 Adopted Budget  To meet the 45 day declaration requirements, on October 21 the Board approved budget revisions reflecting the State’s Adopted Budget  Staff returned to the Board on October 28, with a report showing  The financial impact to the District due to the State’s budget plans  Adjustments that could be made this year  Planning for next year  Outline of other strategies  The Board tabled this item on their agenda  Per the Board’s request, this report is returning for consideration and action

5 Processes Already in Place 2  The State requires the District to report on its current financial condition and project out two additional years  Two Interim reports reflecting activity as of October 31 and January 31 are provided to the Board for approval  An Unaudited Actual financial report is prepared each year for Board approval  Board approves the District’s adopted budget each year  The District’s financial reports are reviewed by an independent audit firm each year  Budget adjustments are presented to the Board for approval at each regularly scheduled meeting, as needed Dec./Mar. Sept.-Oct. June Dec. Timelines

6 Ideas for Savings This Year 3  Limiting the use of overtime  Reduce the use of consultants and other contracted services  Conferences, not already approved, will be restricted and must be approved by the Superintendent  Shock absorbers (listed in the appendix) will be held in reserve to improve the ending fund balances for 2008/09  Vacant positions will not be filled (except for critical positions as determined by the Superintendent)  Safety of students, legal requirements, maintaining efficiencies, classroom instruction, and the impact on the District’s financial condition will be given particular consideration Caution: Vacant positions should not dictate the future structure of the District

7 Ideas for Savings This Year (cont.)  Teacher  Vacancies – Will be filled with subs  Secondary – Efforts will be made to reduce staffing to reflect actual enrollments  Budgeting Guidelines  Dealing with the combination of vacant positions and overstaffing among sites  Staffing will be adjusted downward, if possible, to reflect fewer students at CBEDS (except for teachers)  Staffing will not be adjusted upwards per changes in students or square footage  Maximize Grant funding  Move staff from unrestricted resource programs, when possible, to fill vacancies in restricted programs (do not supplant) 4

8 SBAC Work  The Superintendent will request input and recommendations from the Superintendent’s Budget Advisory Committee (SBAC)  Possible future study of various sites to a K-8 program  Review the use of overtime/timecards  Summer School educational program for 2009  Develop recommended areas that will not be reviewed  The Committee (SBAC) will develop their own recommendations for the Superintendent’s consideration 5

9 Issues with Tight Timelines  Forego New Facilities Operation Costs  Delay Lockeford K-8  Study School attendance and boundaries 6

10 Future Development of Options  Teacher  Fully implement Committed/Growth staffing model  Hire only to the committed projections  Guidelines  Review all staffing formulas  Develop K-8 School Formulas  Implement staffing formulas  Review Textbook Adoptions 7

11 2009/10 Planning Process  Staff will develop recommendations for Superintendent’s and Budget Advisory Committee’s consideration  Superintendent’s Budget Advisory Committee will review staff strategies and recommendations  Budget will be built using:  Board approved budget guidelines  Board approved enrollment projections  Governor’s January budget plan  Governor’s mid-year adjustments  May revisions by the Governor  Board approved budget adjustments  And other estimates 8

12 Budget Modeling  Slide 1 – Change in the enrollment projections over last year  Slide 2 – Enrollment related site formula driven positions  Slide 3 – Estimated on-going mandatory cost increases  Slide 4 – Estimated one-time mandatory cost increases  Slide 5 – Estimated discretionary costs for next year  Slide 6 – Changes in projected income  Slide 7 – Schedule showing the overall estimate of District budget change (balancing) 9 As we develop presentations to show the condition of the District’s budget, the following slides will continue to be included:

13 Additional Suggestions from 10/28/08 Board Meeting 10  Superintendent was asked to study and report to the Board on the operations of the James Arieda Education Support Center (JAESC)  Focus will be on efficiency enhancements  Cost savings  Support to the schools  Support of District goals  Periodic reports should continue to be presented to the Board on the District Construction program and its cash requirements  Staff should examine the financial viability of early retirement options  A report should be prepared by staff examining the impact of combining sites and programs  Staff should examine the impact of alternative secondary delivery systems (schedules)  Report should include the program benefits and costs

14 Current Recommendations 11  Staff recommends implementing the cost savings plan outlined in this report (pages 3-4)  Retain shock absorbers (page 3)  Superintendent’s Budget Advisory Committee will continue in its role in the budget development process  Staff will continue developing a budget model incorporating (page 7)  A committed/growth staffing  A K-8 School formula once approved by the Board

15 AppendixAppendix A.Budget Development Calendar B.District Mission, Vision and Goals C.Detail of Shock Absorbers D.Trends  Enrollment  Ending Fund Balance  Food Services iii

16 Board Approved Budget Calendar A1

17 Board Approved Budget Calendar A2

18 Board Approved Budget Calendar A3

19 11/05/082. Board Meeting to Discuss Impact of State Fiscal Crisis Quarterly4. Report to the Board on Construction Program Sept. ‘095. Opening Enrollment Reported to the Board Sept. ‘096. Impact on Enrollment and Estimated Ending Fund Balance Sept. ‘097. Report to the Board on the State Adopted Budget, approval of Ending Fund Balance budget revisions, and approval of 2007/08 Unaudited Actuals Financial Report 10/28/081. Board Meeting - Strategies for Moving Forward 11/18/083. Request for Board approval of budget adjustments reflecting New Strategies and final adjustments to reflect the State Adopted Budget Oct. ‘098. Declare State Adopted Budget revenues for 1 st Interim Report A4 Additional Calendar Detail

20 LUSD’s Mission & Value 1.Every student 2.High student achievement and accomplishment 3.Parents as partners 4.Diversity 5.Contributions and commitments of teachers and all staff as educators 6.Trust, honesty, and respectful communication with each other Value Statement We Value Mission Statement Lodi Unified School District will ensure the best education for students to be successful in life. B1

21 LUSD’s Vision & Goals Goals 1. Meet Program Improvement requirements as all groups of students improve their performance, and make progress to eliminate the Achievement Gap 2. Improve the engagement of parents/guardians as partners in their children’s education 3. Support an environment where diversity is valued 4. Maximize resources to improve the achievement of students in a safe and positive learning environment 1.Each student realizes his/her maximum potential 2.There is no achievement gap between groups of students 3.We have a diverse staff that is highly qualified and enjoys its work 4.Schools are inviting and responsive to parents, engaging them as partners in their children’s education 5.We provide resources to support quality education and safe, attractive learning environments in all of our schools 6.We have a trusting, working relationship among the board of Education, the school district, and the Community In Lodi Unified School District Vision Statement B2

22 Shock Absorbers DescriptionsBUDGET 3. Modernization Support – F&E Needs176,200 2. Capitalization of Energy Conservation Program 325,000 6. Total On-Going Expenses $1,312,283 5. Classroom Furniture & Equipment Inventory 24,600 4. New School Start-Up (i.e. Lockeford K-8)50,000 1. Textbooks $736,483 C1

23 EnrollmentEnrollment D

24 Change in CBED Students D1

25 CBEDS Enrollment Comparison 2007 & 2008 (313)29,94530,258 Grand Total (13)1,4181,431Rural Schools (423)15,40615,829 North Stockton Schools 12313,12112,998Lodi Schools Net Change Increase/Decrease 2008 CEBDS 2007 CBEDSSchools D2

26 CBEDS Enrollment Comparison 2007 & 2008 (13) 28 (41) RURAL (423) 8 (104) (76) (251) STOCKTON 9054 Other (313)123 Grand Total (139)(35)Senior (30)46Middle (234)58Elementary TOTALLODIGrade D3

27 Declining vs. Growing (Sample) * * How do we pay for the growth needs? D4

28 Ending Fund Balances D

29 General Fund Beginning Balance Unrestricted Fiscal Year D5

30 Food Services D

31 Enrollment Challenges  District-wide enrollment has dropped significantly this year  While the lunch program is still available to students, due to program needs the Pre- school Readiness students no longer eat lunch during class time As a result, we are serving approximately 500 less lunches every day for Pre-school alone  Overall, our meal counts are up 5% for breakfast and are tied for lunch compared to last year. D6

32 Comparison of First Seven Weeks D7

33 Food & Labor Costs  Rising costs of fuel  Food costs are going up rapidly  Our cost is up 15% compared to last year  2008-09 Food Budget has increased $648,000 to $4,970,746  Labor costs have risen approximately 5% this year.  2008-09 Labor Budget has increased $154,000 to $4,754,811 D8

34 That’s All For Now, Folks!

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