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Impact of the Governors Proposed Budget on the AUSD The AUSD Response February 26, 2008.

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Presentation on theme: "Impact of the Governors Proposed Budget on the AUSD The AUSD Response February 26, 2008."— Presentation transcript:

1 Impact of the Governors Proposed Budget on the AUSD The AUSD Response February 26, 2008

2 AUSD Goals and Core Values AUSD Goals Narrow and close the achievement gap in English language arts and Mathematics between our lowest performing students and our highest performing students, while increasing or maintaining the performance of any group performing at the proficient or advanced level. Align the spending plan with educational objectives while ensuring the highest and best use of limited resources and long-term solvency. Ensure all students will be in educational environments that are safe and conducive to learning. Recruit and retain highly qualified and diverse staff, and provide systems of support for and recognition of all employees. AUSD Core Values Support student achievement by promoting efficiency, communications, and responsibility. Preserve fiscal integrity and responsibility. Recruit and retain highly qualified competitively compensated employees.

3 Criteria for Spending Reductions & Resource Reallocation Maintain core academic programs for students to ensure students graduate high school Ensure campuses are safe for students and staff Shift expenditures to grants to other funding sources where possible Work with employee groups regarding negotiated items Comply with necessary local, state, and federal mandates

4 Impact on Pathway to Excellence and Equity

5 Process for two-way communication SUPERINTENDENT EXTENDED CABINET WORKGROUPS SOUNDING BOARD (community) SUPTS COUNCIL (employee groups) BOARD OF EDUCATION SUPERINTENDENTS RECOMMENDATIONS

6 Timeline of meetings Extended Cabinet Workgroups: –February 1, 4, 8, 11, 14 Superintendents Council Meetings: –February 6, 13, 21 Sounding Board Meetings: –February 7, 14, 21 Board Meetings: –February 4, 26 (Info), March 4 (Action), 11

7 Certificated & non-certificated staff Planning for January 18 Due to HR - Planning and staffing notification forms from teachers-identify needs for the school year. February 7Due to HR Non- reelect list March 1Due to HR Certificated employees Leave of Absence intentions for March 4Special BOE Meeting March 11Resolution to the BOE to vote on staffing reductions March 14Ed Code Law requires that all certificated teachers and administrators must be noticed April AUSD Non- certificated Employees will be Notified of Potential Lay offs per Ed Code 45117

8 Suspending Proposition 98 Loss of $4B

9 Suspending Proposition 98 Loss of $4M

10 Multi-Year Projections As of FY07/08 First Interim FY07/08 Projection FY08/09 Projection FY09/10 Projection Revenues83,755,62486,552,97787,325,387 Expenditures86,870,39584,970,47086,467,560 Other Sources (Uses)(435,906) Net Inc/Dec in Fund Balance(3,550,677)1,146,602421,920 Beginning Balance7,666,0164,115,3395,261,940 Ending Balance4,115,3395,261,9405,683,861 Components of Ending Balance Revolving Cash50,000 For Economic Uncertainties2,619,1892,562,1912,607,104 Legally Restricted Balance--- Mandate Cost Reimbursement1,080,000 P2 ADA137,207-- Available Unrestricted Reserve228,9431,569,7491,946,757 Available for spending priorities – compensation increases, new programs and program expansions,

11 Multi-Year Projections As of FY08/09 Governors Budget FY07/08 Projection FY08/09 Projection FY09/10 Projection Revenues83,480,86582,432,30483,613,268 Expenditures86,870,39585,027,94986,565,050 Other Sources (Uses)(435,906) Net Inc/Dec in Fund Balance(3,825,436)(3,031,550)(3,387,687) Beginning Balance7,666,0163,840,580809,029 Ending Balance3,840,580809,029(2,578,658) Components of Ending Balance Revolving Cash50,000 For Economic Uncertainties2,619,1892,563,9162,610,029 Legally Restricted Balance--- Mandate Cost Reimbursement1,080,000 P2 ADA137,207-- Available Unrestricted Reserve(45,816)(2,884,886)(6,318,686) Available for spending priorities – compensation increases, new programs and program expansions,

12 What happened to the fund balance? Available Unrestricted Reserve As of 1 st Interim (Dec 11, 2007) 1,569,749 Deficit Factor of 0.5% - Revenue Limit(274,759) Increase in COLA of 0.64% - Revenue Limit354,381 Increase in COLA of 0.64% - Class Size Reduction21,690 Deficit Factor of 6.99% – Revenue Limit(4,032,329) Deficit Factor of 10.9% – Class Size Reduction(236,893) Deficit Factor of 10.9%– Special Education(285,000) Change to 3% Reserve(1,724) Available Unrestricted Reserve As of Governors Proposed Budget (Jan 10, 2008) (2,884,886) Decrease of $4.5M

13 What can the AUSD do? Increase Revenue Reduce Expenditures Negative Certification Combination

14 Overview of Recommendations and Actions ItemAmountFY 1. Modify Classroom Staffing 2. Reduce Secondary Counseling Services 3. Adjust Secondary School Staff 4. Eliminate Support for Athletic Programs 5. Reduce MOF Services 6. Adjust District Office Support 7. Defer On-Going Spending Reductions for One Yr 8. Enhance Revenue 9. Shift Spending 10. Reduce MOF 11. Reduce District Office Support 12. Restructure K-12 Program ,261.7 FY08/09 FY08/09 FY09/10 Total4,000.0

15 Overview of Recommendations and Actions Year 1 – FY08/09Amount Spending Shifts and Reductions1.7M Spend Reserves – One-Time Mandate Cost Reimbursement Set-Aside 1.1M Spend Reserves – Undesignated Available1.6M Total4.4M Year 2 – FY09/10 Spending Reductions - Restructure K-12 Program (i.e., School Closures, Class Size, Counseling Services) 2.3M

16 FY08/09 Recommendations ItemCut/ shift Superintendents Recommendation 1. MODIFY CLASSROOM STAFFING a. Reduce Class Size Reduction (CSR) - Grade 9Cut92.0K b. Eliminate JROTCCut61.0K c. Eliminate 0.5 FTE Independent Study TeacherCut40.0K d. Eliminate Elementary Grades 1-3 Music Prep Positions Cut200.0K 2. REDUCE SECONDARY COUNSELING SERVICES a. Reduce Middle School (MS) CounselorsCut90.0K Cut = Spending Decrease/Service Reduction or Elimination; Shift = Spending transferred to categorical funds

17 FY08/09 Recommendations ItemCut/ shift Superintendents Recommendation 3. ADJUST SECONDARY SCHOOL STAFF a. Eliminate 1 Vice Principal at Encinal HSCut95.0K b. Reduce Clerical Support at Encinal HSCut45.0K 4. ELIMINATE SUPPORT FOR ATHLETIC PROGRAMS a. Eliminate High School Athletic ProgramCut345.0K b. Close Swim CentersCut120.0K Cut = Spending Decrease/Service Reduction or Elimination; Shift = Spending transferred to categorical funds

18 FY08/09 Recommendations ItemCut/ shift Superintendents Recommendation 5. REDUCE MOF SERVICES a. Reduce Site Based Cleaning to Alternating A/B Schedule Cut125.0K 6. ADJUST DISTRICT OFFICE SUPPORT a. Reduce Clerical Support at District OfficeCut19.0K 7. DEFER ON-GOING SPENDING REDUCTIONS FOR ONE YEAR a. Spend One-Time Mandate Cost Reimbursement to Defer On-Going Spending Reductions for One Year Cut1,080.0K Cut = Spending Decrease/Service Reduction or Elimination; Shift = Spending transferred to categorical funds

19 What does $4M look like? UnitCost of 1%ReductionFTE AEA$380K$2.77M46 ACSA$54K$0.39M4 Alameda Blue$37K$0.27M6 CSEA$79K$0.57M16 TOTAL$550K$4.00M72 Reduction Factor = 7.3

20 Spending $2.65M of Reserves on On-Going Costs UnitCost of 1%ReductionFTE AEA$380K$1.8M31 ACSA$54K$0.3M3 Alameda Blue$37K$0.2M4 CSEA$79K$0.4M11 TOTAL$550K$2.7M48 Reduction Factor = 4.8

21 FY08/09 Actions ItemCut/ shift Superintendents Recommendation 8. ENHANCE REVENUE a. New LeasesRev60.0K 9. SHIFT SPENDING a. Shift Technology Classified Staff to Categorical Funds Shift200.0K b. Shift Instructional Supplies to Categorical Funds c. Apply Mega-Item Transfer from Food Service to General Fund Shift 125.0K 50.0K Cut = Spending Decrease/Service Reduction or Elimination; Shift = Spending transferred to categorical funds

22 FY08/09 Actions ItemCut/ shift Superintendents Recommendation 10. REDUCE MOF a. Reduce Use of Custodial SubstitutesCut50.0K 11. REDUCE DISTRICT OFFICE SUPPORT a. Reduce Professional Development Opportunities for District Office Staff Cut20.0K b. Eliminate Clerical Hourly SupportCut1.3K Cut = Spending Decrease/Service Reduction or Elimination; Shift = Spending transferred to categorical funds

23 Why not shift more expenditures to categorical funds? Categorical funds are restricted in use and come with requirements: Committee work Teacher staff development Assessment D/O FTE

24 FY09/10 Proposal ItemCut/ shift Superintendents Recommendation 12. RESTRUCTURE K-12 PROGRAM2.3M Restructuring the AUSD K-12 program is expected to include and is not limited to: a. School Closures –Elementary –Middle –High –Specialized/Alternative Cut Cut = Spending Decrease/Service Reduction or Elimination; Shift = Spending transferred to categorical funds

25 FY09/10 Proposal ItemCut/ shift Superintendents Recommendation 12. RESTRUCTURE K-12 PROGRAM (cont.) b. Class Sizes – Class Size Reduction 3 – Class Size Reduction K – Class Size Reduction 2 – Class Size Reduction 1 Cut c. Counseling Services – Counselors – College and Career Technicians Cut Cut = Spending Decrease/Service Reduction or Elimination; Shift = Spending transferred to categorical funds

26 FY09/10 Proposal ItemCut/ shift Superintendents Recommendation 12. RESTRUCTURE K-12 PROGRAM (cont.) d. Additional Changes to Be Determined based on Restructuring Cut Cut = Spending Decrease/Service Reduction or Elimination; Shift = Spending transferred to categorical funds

27 FY09/10 Process and Timeline Identify Task Force – March 7 Bi-Monthly Meetings – Mid-March – June Community Meeting – Early June Weekly Meetings – September – November Community Meeting – Mid-October Recommendations to Board of Education for information – November 25 Recommendations to Board of Education for approval – December 9

28 Multi-Year Projections As of FY08/09 Governors Budget FY07/08 Projection FY08/09 Projection FY09/10 Projection Revenues83,480,86582,432,30483,613,268 Expenditures86,870,39585,027,94986,565,050 Other Sources (Uses)(435,906) Net Inc/Dec in Fund Balance (3,825,436)(3,031,550)(3,387,687) Beginning Balance7,666,0163,840,580809,029 Ending Balance3,840,580809,029(2,578,658)

29 Multi-Year Projections As of FY08/09 Governors Budget FY07/08 Projection FY08/09 Projection FY09/10 Projection Ending Balance3,840,580809,029(2,578,658) Components of Ending Balance Revolving Cash50,000 For Economic Uncertainties2,619,1892,563,9162,610,029 Mandate Cost Reimbursement1,080,000-- P2 ADA137,207-- Year 1 - Spending Reductions(1,738,300)(3,476,600) Year 2 - Spending Reductions(2,261,700) Change in 3% Reserve Requirement(52,419)(120,000) Available Unrestricted Reserve(45,816)(14,437)619,614

30 What will happen to the FY08/09 fund balance? Estimated Available Unrestricted Reserve(2,884,886) One-Time Mandate Cost Reimbursement Set-Aside1,080,000 On-Going Spending Shifts and Reductions1,738,300 Change in 3% Reserve Requirement52,149 Estimated Available Unrestricted Reserve(14,437) Increase of 2.9M

31 What will happen to the FY09/10 fund balance? Estimated Available Unrestricted Reserve(6,318,686) One-Time Mandate Cost Reimbursement Set-Aside1,080,000 On-Going FY08/09 Spending Shifts and Reductions3,476,600 On-Going FY09/10 Spending Shifts and Reductions2,261,700 Change in 3% Reserve Requirement120,000 Estimated Available Unrestricted Reserve619,614 Increase of 6.9M

32 Recap of Recommendations and Actions Minimal available balance –Unbudgeted spending increases –Negotiated salary increases –Other Post-Employment Benefits (OPEB) Involves risk Requires qualified/negative certification

33 Outstanding Issues that Could Impact the Budget and MYP State Budget Average Daily Attendance (ADA) Special Education Other Post Employment Benefits (OPEB) Negotiations

34 Next Steps Information item for BOE discussion and public comment Superintendents final recommendations for BOE approval on March 4, 2008 Reduction in force for BOE approval on March 11, 2008


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