1. Financial Services Division

2. Table of Contents 1 of 4 2 State Budget  Current Year Issues  Proposition 98 / Education Budget  Revenue Limit  Budget Year Adjustments / Revenue Limit COLA  Administrative Cuts and Efficiencies

3. Table of Contents 2 of 4 3 OUSD Budget  Unrestricted General Fund Reductions  Estimate of Cuts Needed  Summary for 2010-2011  Projected for 2010-2011 (School Site Budgets)  Central Office Summary  Staff and Non-Staff  Centrally Funded School Services

4. Table of Contents 3 of 4 4 Central Office F.T.E Reductions  2009-2010 Budget Breakdown  Explanation of F.T.E Reductions – Central Office  Summary of Central Office  Centrally Funded School Services  Professional/Curriculum Development  Extended Educational Services  Centrally Funded Site Based Services  School Climate/Violence Prevention  Facilities Maintenance and Construction  Central Office Operations  Business, Personnel Data Management and School Leadership  Facilities Upkeep – RRMA Appendix

5. Table of Contents 4 of 4 5 Appendix  Central Office Summary  Centrally Funded School Services  Centrally Funded Site Based Services  Central Office Operations

6. State Budget 6

7. Current-Year Issues 7

8. Proposition 98 8

9. Proposition 98 and the Education Budget 9

10. Revenue Limit Funding 10

11. Budget Year Adjustments Revenue Limit COLA

12. Administrative Cuts and Efficiencies

13. OUSD Budget 13

14. Unrestricted General Fund Reductions Estimate of Cuts Needed After Governor's Budget 14

15. Unrestricted General Fund Reductions Summary for 2010-2011 15 Total One-time reductions equate to: $8,021,617

16. Unrestricted General Fund Reductions Projected for 2010-2011 Reductions to School Site Budgets 16

17. Unrestricted General Fund Reductions Central Office Summary 17

18. Unrestricted General Fund Reductions Central Office Summary Staff & Non-Staff Breakdown 18

19. Central Office F.T.E Reductions 19

20. Total Budgeted Expenditures $616.6 M Other Restricted Funds $188 M General Fund $428.6 M Unrestricted Resources $252.3 M Restricted Resources $176.3 M School Site Budgets $184.5 M Centrally Funded Sch. Services $22.0 M Central Operations $37.2 M OUSD 2009-2010 Budget Breakdown Focus on Unrestricted Resources School Climate Extended Ed Svc.. Prof/Curriculum Development Alternative Ed. Facilities, Maint.General Ed Bus, HR Data Mgmt., Dist.. Lead, etc. Centrally Funded Site Based Srv. $8.6 M

21. Unrestricted General Fund Reductions Explanation of F.T.E Reductions – Central Office 1 of 5 Centrally Funded School Services - (21.0 F.T.E)  Professional/Curriculum Development – 13.8  Extended Educational Services – 7.2 Centrally Funded Site Based Services - (31.5 F.T.E)  School Climate/Violence Prevention – 16.6  Facilities Maintenance and Construction – 14.9 Central Office Operations - (21.3 F.T.E)  Business, Personnel Data Mgmt, and School Leadership – 21.3 Facilities Upkeep – RRMA - (13.0 F.T.E)  Buildings and Grounds – 13.0 21 Total F.T.E. Reductions For Central Office 86.8

22. Unrestricted General Fund Reductions Explanation of F.T.E Reductions – Central Office 3 of 4 Central Office Operations – (21.3 FTE)  Business, Personnel Data Management, and School Leadership – 21.3 FTE  Technology Services – 4.3 FTE  Human Resources – 2.0 FTE  Research and Assessment – 2.0 FTE  Procurement – 3.0 FTE  Payroll – 4.0 FTE  Labor Relations – 0.5 FTE  Printing and Mail Services – 2.0 FTE  State and Federal – 1.7 FTE 22

23. Unrestricted General Fund Reductions Explanation of F.T.E Reductions – Central Office 4 of 4 Central Office Operations – (21.3 FTE) continued…  Legal Counsel – 0.5 FTE  All Network Offices – 1.3 FTE  Communications – 1.0 FTE  Office of the Chief Service Officer – 0.5 FTE  Strategic Planning and Organizational Development – 1.5 FTE (transferred from restricted resource) Facilities Upkeep – RRMA – (13.0 FTE)  Buildings and Grounds – 13.0 FTE 23

24. Unrestricted General Fund Reductions Centrally Funded School Services Reduction Explanations 24 Professional/Curriculum Development – (13.8 FTE) Professional/Curriculum Development (14.8 FTE) – Most contracts with external professional development providers will be eliminated. – Substantial reduction in full-time coaches for New Teacher Support means that responsibility for mentoring new teachers will be distributed to fewer personnel. We are exploring requiring all TSAs and site-based coaches to have a caseload of new teachers as part of the base job requirement, as assigned by their supervisor. – Centralized support for SiSwun math will be downscaled. – Centralized professional development in all subject areas will be severely reduced, especially during the summer. – Stipends for teachers to participate in professional development will be virtually eliminated, except for specific grant funded programs. – Instructional coaching will be significantly reduced, which will significantly limit ability of central office to provide support to identified red and orange tier schools. – Instructional, School Improvement, and Classroom Management coaching will still be available for purchase by school sites in their RBB session in February. – Some services transferred to restricted resources. 1 of 2

25. Unrestricted General Fund Reductions Centrally Funded School Services Reduction Explanations 25 Operations Support (1.0 FTE transferred from restricted resource, no budget impact) – Grant funds are not available to continue to subsidize service for first-year Principals. The cost for this FTE will be paid by schools that choose to purchase this service (as reflected in the non-labor credit), or there will be layoffs. Extended Educational Services – (7.2 FTE) Family and Community (4.0 FTE) – Reduces support to schools in the area of discipline and SARB services and reduced supervision of categorical programs. Complementary Learning (1.9 FTE) – Reduces financial management of categorical funds and reduces mental health services. Summer Programs (1.3 FTE) ―Reduces coordination of summer programming for students. 2 of 2

26. Unrestricted General Fund Reductions Centrally Funded Site Based Services Reduction Explanations 26 School Climate/Violence Prevention (16.6 FTE) – Reduction of School Security Office central substitute pool and reduction of full time School Security Officers at each most middle and high schools. (There are no centrally funded SSO’s for elementary schools. Middle and High Schools may choose to use school funds to replace loss of centrally funded School Security Officers.) Facilities Maintenance and Construction (14.9 FTE) Custodial Services (12.9 FTE) – 8.5 FTE reduction is due to school and program closures. In order to not affect the cost allocation per FTE for sites, services and supplies for each site may be reduced, which may negatively impact the overall cleaning program. Buildings and Grounds (2.0 FTE) – Reductions to the number of gardeners will prevent projects such as seasonal tree pruning and will affect the response time for emergency removal of tree branches and irrigation system repairs. In addition, reduced staffing in the Vehicle Maintenance Shop will mean less vehicle maintenance.

27. Unrestricted General Fund Reductions Central Office Operations Reduction Explanations 27 Business, Personnel, Data Management and School Leadership (21.3 FTE) Technology Services (4.3 FTE) – Reductions mean development and implementation of fewer technology projects and reduced help desk and training services. Human Resources (2.0 FTE) ―Reductions increase the HR service team workload ratio increase from 1,000 to 1,400 to 1, which reduces response time to internal and external clients. Research and Assessment (2.0 FTE) ―Reductions decrease the number of research and evaluation projects from 12 to 3 and decrease coordinator support for testing and assessment. 1 of 4

28. Unrestricted General Fund Reductions Central Office Operations Reduction Explanations 28 Procurement (3.0 FTE) – Elimination of 2 buyers will result in a 10 workday turn around in processing time for contract related requisitions after required approvals and an increased turnaround for supply and equipment requisitions from 1 to 3 work days. – Reduction in inter-office mail delivery days from every other workday to delivery on the 15 th and the last day of the month. Payroll (4.0 FTE) – Reduction requires a mandatory reliance on technology to reduce dependency on labor- intensive manual processes. Full implementation of on-line timecard process would be a major means to accomplish this. Labor Relations (0.5 FTE) – Reduction will mean delayed responses to requests for advice and assistance from sites and managers related to discipline matters and the various collective bargaining agreements and less time dedicated to strategic planning and employee training. This impact will be most felt when Labor is negotiating Collective Bargaining Agreements. 2 of 4

29. Unrestricted General Fund Reductions Central Office Operations Reduction Explanations 29 Printing and Mail Services (2.0 FTE) – Reduction means 67% slower processing of print requests for central office and school sites. State and Federal (1.7 FTE) – Funding change to more categorical funds. No actual cut to staffing. Safety Plans and Audit Findings will be handled by other departments. Legal Counsel (0.5 FTE) – Reduction means that Legal will be limited to providing mandated and compliance driven legal advice, court and regulatory hearings, filings and services and will have severely limited ability to provide discretionary services, such as dismissal of teachers whose performance may not meet standards. All Network Offices (1.3 FTE) – Reduction means that fewer personnel will be supervising schools, which means that the frequency and intensity of school/ Principal support will be diminished. 3 of 4

30. Unrestricted General Fund Reductions Central Office Operations Reduction Explanations 30 Communications (1.0 FTE) – Reduction means that the Superintendent’s Office customer service may diminish. Non- labor reduction means that the number and design quality of some publications may be reduced and KDOL staff will have more limited capacity to do film production beyond a few special projects, Board Meetings and Committee Meetings. Office of the Chief Service Officer ( 0.5 FTE) ―Reduces response time for discrimination complaints and 504 compliance requests beyond contractual. Strategic Planning and Organizational Development (1.5 FTE transferred from restricted resource) – Transfer to unrestricted funds ensures continuity of core strategic planning and organizational development functions (e.g., Principal recruitment coordination, development, strategic planning and senior-level Superintendent and Cabinet support). Restricted funded positions may be cut, resulting in reduction or elimination of process improvement, customer service training, and some classified professional development. 4 of 4

31. Unrestricted General Fund Reductions Facilities Upkeep - RRMA Reduction Explanations 31 Facilities Upkeep – RRMA (13.0 FTE) Buildings and Grounds (13.0 FTE) – Reductions will change response time to emergency requests from within 24 hours to 2-3 days. Non-emergency responses will take an additional 7-14 days and Level 3 requests could take up to 60 days.

32. Appendix 32

33. Unrestricted General Fund Reductions Central Office Summary Centrally-Funded School Services 33

34. Unrestricted General Fund Reductions Central Office Summary Centrally-Funded Site Based Services 34

35. Unrestricted General Fund Reductions Central Office Summary Central Office Operations 1 of 2 35

36. Unrestricted General Fund Reductions Central Office Summary Central Office Operations 2 of 2 36

37. Any Questions? 37