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Budget Update
Budget Study Session January 19, 2010
Revised January 20, 2010
Objectives Fiscal Solvency – Board Direction
• Employee salary rollbacks/furlough days
• Instructional program reduction December 8th staff recommendations
Other considerations
• Additional options
Critical Timelines
January 13, 2010 Governor’s Budget Conference
January 14, 2010 Leadership Team Meeting Budget Freeze
January 19, 2010 Budget Study Session – Board 4pm – 6pm
January 21, 2010 Negotiations
January 26, 2010 Community Forum
February 2, 2010 Board Meeting
February 5, 2010 Negotiations
February 16, 2010 Board Meeting
February 18, 2010 Negotiations
March 2, 2010 Board Meeting Budget Reductions
March 15, 2010 Preliminary Layoff Notices Deadline
March 16, 2010 Board Meeting 2nd Interim ReportDeadline
Qualified Certification Implications – 2nd Interim Report
Ed Code 42127.6 states that the county superintendent must act: (One of more of the following actions)
• Assign a fiscal expert (county expense)• Conduct a study of internal controls and assign
a consultant (75% district: 25% county expense)• Require additional financial reporting• Require the district to submit a plan of action• Withhold compensation of officials• Comment on collective bargaining proposals• Prevented from issuing non-voter approved debt
Proposition 98 and the Education Budget
Highlights of the Education Budget• Flat funding under Proposition 98 in 2010-11
• $1.5 billion in cuts targeted to district administration
• Personnel and administrative reforms
• Suspension of almost all education mandates Negative cost-of-living adjustment (COLA) produces no
new funding Deficit factor remains at record level Proposition 98 is still owed major sums
• $11.2 billion from past deficits
• More than $1 billion for unfunded mandates
• Don’t plan to collect this year Race to the Top (RTTT) is also a factor
Governor’s Budget Truth or Fiction?
The Governor Protects Education• Fiction – Prop 98 is being manipulated
There are no new cuts to Education• Fiction – California schools lose another 4.1% on average
There are no midyear cuts to Education• Truth
The Governor honors past agreements• Fiction – A promise to pay a portion of the $11.2B settlement of
Prop 98 Maintenance Factor has been delayed
• Fiction – $1B in Mandate Reimbursements owed from 2001-02 are still being deferred….even after a court ruling in favor of Education
Projected Impacts to IUSD
2009-10 2010-11 2011-12
1st Interim Report – projected shortfall
$0 ($14,732,333) ($37,270,683)
Governor’s Proposed Reductions:
Revenue Limit COLA ($638,281) $3,087,181
Administrative Cuts ($-201 per ADA) $0 ($5,345,605) ($5,395,855)
ARRA Stabilization Funding ($762,991) $0 $0
Tier III COLA $0 ($55,295) 261,928
District Issues:
Health Benefits $0 ($1,701,265) ($1,701,265)
Total Projected Shortfall – Revised ($762,991) ($22,472,779) ($41,018,684)
Projected vs. Actual Funding Per ADA
2007-08 2008-09 2009-10 2010-11$4,000
$5,000
$6,000
$7,000
$5,774
$6,103$6,364 $6,340
$5,774$5,624
$5,196 $5,176
Irvine Unified District
Projected Statu-tory COLA
Dollars
Per
AD
A
$15.1M loss in COLA$15.9M loss in baseline dollars
Loss of COLA
Loss of baseline dollars
($566)
($598)
Hot Topics Staff recommendation – Budget Reduction /
Adjustment List - December 8th Board Meeting
Budget Freeze
Tier III Discussion
Special Education
Critical Timeline
Common Message
Budget Reduction/AdjustmentStaff Recommendation
December 8, 2009
Budget Reduction/AdjustmentStaff Recommendation
January 19, 2010
Budget Freeze Effective Immediately
Includes:• Spending• Hiring (case by case basis)• Travel
Specifics to follow via email
Inform your staff
Tier III Professional Development
Focus on “Each Student”
Instructional Technology
21st Century Learning
School Safety
Special Education
2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09$25
$27
$29
$31
$33
$35
$37
$39
$41
$43
Special Ed Expenditures(in millions)
Increased Intervention Focus
Common Message Reductions will impact everyone and
everything
Board liaison communication to parents
Forward all questions to Ian
Encourage parents to check
• Budget Watch and NewsFlash
Anticipate additional District Meetings
Next Steps Community Forum
• Tuesday - January 26, 2010 7-10 pm