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THE State Budget Crisis. Todays Presentation zArizonas budget zThe impact of the economic decline zWhere the money comes from zWhere the money is spent.

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Presentation on theme: "THE State Budget Crisis. Todays Presentation zArizonas budget zThe impact of the economic decline zWhere the money comes from zWhere the money is spent."— Presentation transcript:

1 THE State Budget Crisis

2 Todays Presentation zArizonas budget zThe impact of the economic decline zWhere the money comes from zWhere the money is spent zWhat MPS needs to do to get through the current budget crisis

3 Arizonas Revenue Sources JLBC Actual Fund Revenue, FY2007

4 Where Does Arizona Spend Its Money?

5 Arizonas Constitution Requires A Balanced Budget

6 Arizonas Revenue Is Declining

7 The Budget Crisis Is Hurting All Sectors and States

8 Budget Cuts or Revenue Increases? [House Appropriations Chair John ] Kavanagh said that he and most Republicans are unwilling to consider tax hikes, even temporarily, instead of further spending cuts. Im not going down the tax road until the situation is so dire that theres no other alternative, he said. And Im not prepared to concede that at this point. -- East Valley Tribune, February 1, 2009

9 K-12 Arizona Education Funding Has & Will Experience Cuts In 2008/09 K-12 education was cut $133 million. The estimated cuts to K-12 education in 2009/10 is estimated to be between $470 million and $1.4 billion

10 Potential State Education Budget Cuts zThe following budget cuts have been proposed by state legislators: xPhase out of Career Ladder xElimination of Young Learner and Full-Day Kindergarten xEliminate annual increase of 2% in funding xBase Funding was decreased 2.6% this year and will be decreased even more in the next budget xFunding to offset utility bills may not be provided xSoft Capital will be eliminated or significantly cut

11 State Funding is Only One of Several Challenges Impacting MPS zMPS cut $19,800,000 in 2008/09

12 Other Challenges: Enrollment Has Declined -685 -537 -1406 -2135 +162 +580-67+107

13 Other Challenges: Passing The Override z8.8% of salary is contingent on the override zFunding for 136 teachers is from the override zSecurity positions are funded by the override zTechnology trainers are funded by the override

14 zThis decline can be dealt with by cutting fat and not cutting peoples jobs or salary yMesa puts more money in the classroom than most districts yMesa has fewer administrators than average Arizona Auditor General Budget Misperceptions

15 Most of Our Money Goes To People

16 Most of Our M&O Money Goes To Teachers

17 Our Staff Has Helped Mesa Schools Be Very Successful z96% of elementary parents give MPS an A+, A or B grade. z Americas Promise Alliance named the district as No. 1 in graduation rates among the nations 50 largest cities in 2008. z U.S. and News Report magazine recognized all six MPS comprehensive high schools in its Best High School 2008 Search. z The Class of 2008 was offered over $45 million in scholarships. z The Class of 2009 includes 25 National Merit Semifinalists and five Presidential Scholar finalists. z MPS students earned state championships in academics, athletics, creative and performing arts, and career and technical education in 2007-08. z MPS captured 27% of the seats in the all state orchestra and band while having only 7% of the students in the state.

18 zExisting bond funds may be used for other budget categories Budget Misperceptions

19 zFunding may not increase, but it wont go down

20 So Where Will Cuts Be Made? If 91% of our operating budget goes to people, we will have to have fewer people and/or pay people less. We will also have to eliminate some programs and activities and increase efficiency.

21 How Will This Impact MPS?

22 What Is MPSs Plan? zEducate our legislators zInform our staff and community zReorganize district based operations zAdjust staffing to match the decline in enrollment zEnsure district expenditures match projected (declining) revenue

23 MPSs Plan For 2008/09 yCut $20 million from budget in July 2008 yFroze job openings except for classroom teachers yReduced all supply budgets yCancelled $3 million in purchases of textbooks, software and similar items yReduce substitute teacher costs

24 MPSs Plan For the 2009/10 Budget zPotentially cut $30-$??? million zReduce positions in district departments zExamine programs and offerings and reorganize to maximize efficiency zIdentify non-state funding sources zAdjust teaching and support staff to reflect lower enrollment.

25 Timeline zFebruary: Share budget status with staff; give initial teacher allocations to schools zMarch: Develop budget plan for possible state funding levels zMarch/April: State sets 2009/10 budget zSoon after: MPS announces changes based on the budget provided

26 So Now We Know zArizonas budget picture is grim zProposed education cuts in the state budget will be significant zMPS budget cuts will mean fewer programs, paying fewer people and possibly paying people less if the state cuts certain funds zWe need to understand the situation, we need to come together to weather the storm and we need to work to strengthen district finances where we can

27 Mesa Succeeds The Long Depression of 1872-1897 The Panic of 1893 The Stock Market Crash of 1929 The Great Depression 1929-1938 OPEC Oil Crisis & Runaway Inflation of the 1970s The Savings & Loan Crisis and Recession of the 1980s

28 Mesa Succeeds It is our attitude at the beginning of a difficult undertaking which, more than anything else, will determine its successful outcome. -- William James

29 Have A Suggestion? Do you have an idea that could be implemented that would save money? Go to\abetterway and submit ideas or send district mail to A Better Way Suggestion as soon as possible


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