Overview of the State Budget and the State Economy

Recovery Takes a Long Time Recession Recovery B-11 Forecast

Governor’s Budget For the current year, , the Governor’s January Budget proposes no change in revenue limit funding, with the deficit factor remaining at % In , the statutory cost of living adjustment (COLA) is negative 0.38% and is fully “funded” The deficit factor of % remains unchanged in the budget In addition to the negative COLA and the continuation of the % deficit factor, the Governor’s Budget proposes an ongoing targeted cut of $1.5 billion in $1.2 billion is aimed at “school district administrative costs” $300 million assumed to follow from the “elimination of administrative costs” via contracting out language The Governor’s budget provides no specifics on how this will be implemented

Budget Year Adjustments – Revenue Limit COLA fiscal year – no further cuts proposed fiscal year – “fully-funded” COLA; however, the COLA is -0.38% This is looking like another unusual year for calculations The funded rates for : C-10 District Type Statutory COLA All Elementary Districts All High School Districts All Unified Districts

Administrative Cuts and Efficiencies The Governor proposes cutting a total of $1.5 billion targeted as “noninstructional,” or administrative costs at school districts and COEs $1.2 billion ongoing reduction to revenue limit funded targeted at school district central administration and $300 million attributable to eliminating barriers related to contracting out for services This would apply to all districts, regardless of the current level of administrative spending or cuts made prior to Monitoring would occur through review of reported Standardized Account Code Structure (SACS) data The Governor has yet to share the specifics of the proposal, but if the cut were to apply based on current revenue limit rates per ADA, it would be as follows: C-12 ElementaryHigh SchoolUnified $191$231$201

Undeficited Revenue Limit – Example 2-8 * includes a -$23 COLA

Projected vs. Actual Funding Per ADA B-16 Loss of COLA Loss of baseline dollars

How Much? The Governor’s proposal is anticipated to impact OVSD by: Fully funded -0.38% COLA x Projected ADA -$23 x 2412 = -$55,476 Proposed “central administration reduction” -$191 x 2412 = -$460,692 TOTAL ADDITIONAL LOSS Above 1 st Interim Projections = -$516,168 B-16

Next Steps Balanced budget must be adopted by district prior to June 30, 2010 State Budget will most likely not be in place by then Developing the budget requires: Clarifying assumptions How much revenue? How will expenditures change? Once the State Budget is adopted, the district makes adjustments to its budget within 45 days

What have we done so far? BUDGET 3 years ago began monitoring budget needs in anticipation of state’s economic disaster Reduced department expenditures Utilized categorical flexibility Supplies review and reduction Continued monitoring of class sizes Monitored benefit costs Reduced conference & travel costs Continued monitoring of enrollment, class sizes, staffing needs

What have we done so far? PERSONNNEL Vacant classified positions Grounds/Maintenance position Custodian position Account Technician Bus Driver Reduced DO certificated Resource Teacher Certificated Retirement Incentive (10 participants) Replaced 3 of 10 vacancies 1 administrative salary reduction day in Moved personnel costs to categorical funding as allowable Utilized one-time ARRA $ to save jobs INSTRUCTION / INTERVENTION Continued monitoring of class sizes Reduced “block scheduling” at OVJH Reduced “push-in” teachers Reduced/eliminated after school intervention programs Reduced district-wide staff development costs Eliminated Summer School except for Special Education Eliminated CBET program

What have we done so far? TRANSPORTATION Eliminated 12 transportation routes Increased walking distance Reduced number of bus stops Adjusted MVS & LVS school boundaries REVIEWED CONTRACTS New copy machines (40% cost savings) AT&T Phone Service versus VOIP Implemented Infinite Campus SIS and POS Monitored and reduced utility costs Auto shutdown of computers and copiers Summer shutdown Implemented 4/10 summer work schedule ATTENDANCE Implemented Saturday School to recoup lost ADA Increased attendance monitoring Site attendance incentives

What are the other districts doing? Ventura County Across the State

Cash is King! A review of our CASH FLOW.

Questions?