Impact of Governor’s Proposal on MDUSD Budget

Presented byGary McHenry, Superintendent

March 2008

Mid-Year Actions Under Proposition 58

The Governor has declared a “fiscal emergency” under Proposition 58, triggering the following:

The Legislature is now called into Special Session to deal with the Budget crisis

The Governor must submit a plan to address the Budget imbalance

The Legislature must adopt a plan to address the problem by March 15 (that is, within 45 days of the declaration) otherwise it may not act on any other legislation and it may not adjourn

The plan must be adopted by a two-thirds vote of the Legislature, allowing the savings to take effect immediately

Source: SSC, January 2008

State Budget Summary Compared with full funding for COLA and growth for

programs in 2008-09, the Governor’s proposal cuts K-12 education by $4.4 billion These cuts average about $740 per ADA from 2008-09 full

funding levels

Saying it another way . . .

Governor’s proposal is for 2008-09 funding to be about $1.8 billion less than current year, equal to average cuts of:

$129 per ADA from Revenue Limits

$30 per ADA from Special Education

$146 per ADA from Categoricals

Total loss of about $305 per ADA from current year levels!

Source: SSC, January 2008

2008-09 K-12 Revenue Limits

Caution: Impact of deficit depends on district-specific revenue limit

2007-08 Funded

Revenue Limit*

4.94% Inflation Increase

6.99%Deficit

2.4% Cut for Average District

2008-09 Funded

Revenue Limit

2008-09 Computed Base Revenue

Limit

2008-09 Base Revenue Limit

After Deficit

2007-08 Base Revenue Limit

*Assumes mid-year cuts are absorbed by other means

Source: SSC, January 2008

Unrestricted Revenue Limit with Fully Funded COLAs

Revenue Limit with Fully Funded COLAs

Current Operating2007-08 Revenue Limit

2008-09 Revenue Limit with 4.94% COLA

2009-10 Revenue Limit with 3.0% COLA

$195,636,102 $204,384,238 $210,129,601

Revenue Limit with Governor’s Proposal

2008-09 Revenue Limit with Net Funding of -2.5%

2009-10 Revenue Limit with 3% COLA

$190,097,779 $195,441,542

($14,286,458) ($14,688,059)

Total $ Loss for2008-09 and 2009-10 ($28,974,517)

Source: MDUSD Fiscal Services, March 2008

Updated MDUSD Revenue Projections(Numbers in Millions)

2007-08 2008-09 2009-10

January 8 292.1 301.7 307.6

Governor’s Budget 291.1 284.4 291.2

Loss 1.0 17.3 16.4

MDUSD Budget:Money is in job positions

Unit Total # FTE

Funding Source

Cost of 1%Gen.Purpose

SpecialEd.

Cate-gorical

Restricted Main/Trans

CSEA 457.33 31.75 235.33 190.24 $284,750

Local One, CST 272.35 221.66 11.88 31.26 7.55 $134,321

Local One, M&O 333.26 188.73 2.62 8.79 133.11 $186,092

MDEA 1898.68 1479.01 314.20 105.47 $1,311,912

MDSPA 32.40 23.10 9.30 $28,785

Managers 197.46 145.57 17.24 25.13 7.51 $219,106

Confidential 15.00 14.00 1.00 $10,210

Supervisory 17.00 17.00 $24,013

Total 3223.48 2120.82 591.57 360.89 148.17 $2,199,189

MDUSD Updated Unappropriated BalanceIncludes Board Reductions through February 25, 2008(No salary increases)

2007-2008 $ 8,494,916 2008-2009 $ 2,691,116 2009-2010 ($ 3,530,112)

Employee Units CSEA = California School Employees Association

Classroom Assistants, Campus Supervisors, Licensed Vocational Nurses

DMA = Diablo Managers AssociationPrincipals, vice principals, student services coordinators, curriculum and program specialists, directors, classified managers, Confidential staff

Local One, CST = Clerical, Secretarial, Technical School secretaries, registrars, attendance clerks, personnel assistants, accountants, computer operators

Local One, M&O = Maintenance and OperationsCraftsmen, painters, carpenters, mechanics, custodians, landscapers, bus drivers

MDEA = Mt. Diablo Education AssociationTeachers, librarians, nurses, speech pathologists

MDSPA = Mt. Diablo School Psychologists AssociationSchool psychologists

SupervisoryCustodial and Food Service supervisors

How do we begin?

√ Start with criteria

Criteria for Budget ReductionsI recommend the following priority order:

1. Insure campuses are safe for students and staff2. Honor collective bargaining contracts and comply with local, state and

federal mandates3. Maintain programs for students

Analyze program effectiveness Eliminate programs that are ineffective Maintain programs that are effective

4. Protect as many positions as possible5. Honor our commitments and our promises to the public

e.g. Measure A and Measure C, Kindergarten Class Size Reduction6. Affect expenditure reductions across all programs

Health and Safety – supervision of students Cleanliness

7. Shift expenditures to grants and other funding source where possible

Steps: Balancing the Budget

Determine the amount to be reduced

Apply the methodology

Comply with budget reduction criteria

Methodology

Amount to be reducedCost of 1% for all units

Cost of 1% x Reduction Factor = Amount to be reduced/unit

Cost per Unit Average cost per position

= Reduction Factor

= # of Positions to be Reduced

MethodologyExample: Impact of $14 Million on MDEA unit

Amount to be reducedCost of 1% for all units

Cost of 1% for unit x Reduction Factor = Amount to be reduced/unit

Cost per Unit Average cost per position

= Reduction Factor

= # of Positions to be Reduced

$14,000,000$ 2,199,189 = 6.4

$1,311,912 x 6.4 = $8,396,236

$8,396,236$55,290 = 152 positions

Amount to be reduced: $14 millionUNIT COST OF 1%

REDUCTION FACTOR

AMOUNT

CSEA $ 284,750 6.4 $1,822,400

LOCAL ONE, CST 134,321 6.4 859,654

LOCAL ONE, M&O 186,092 6.4 1,190,988

MDEA 1,311,912 6.4 8,396,236

MDSPA 28,785 6.4 184,224

DMA, CONFIDENTIAL, SUPERVISORY 253,329 6.4 1,621,305

TOTAL $2,199,189 $14,074,807

UNITCOST PER

UNITAVERAGE

COST/POSITION# OF

POSITIONS

CSEA $1,822,400 $ 33,000 55

LOCAL ONE, CST 859,654 55,420 16

LOCAL ONE, M & O 1,190,988 57,845 21

MDEA 8,396,236 55,290 152

MDSPA 184,224 96,621 2

DMA, CONFIDENTIAL, SUPERVISORY 1,621,305 100,000 16

TOTAL $14,074,807

Example: $12 millionUNIT COST OF 1%

REDUCTION FACTOR

AMOUNT

CSEA $ 284,750 5.45 $1,551,888

LOCAL ONE, CST 134,321 5.45 732,050

LOCAL ONE, M&O 186,092 5.45 1,014,202

MDEA 1,311,912 5.45 7,149,921

MDSPA 28,785 5.45 156,878

DMA, CONFIDENTIAL, SUPERVISORY 253,329 5.45 1,380,643

TOTAL $2,199,189 $11,985,582

UNITCOST PER

UNITAVERAGE

COST/POSITION# OF

POSITIONS

CSEA $1,551,88 $ 33,000 47

LOCAL ONE, CST 732,050 55,420 13.2

LOCAL ONE, M & O 1,014,202 57,485 17.6

MDEA 7,149,921 55,290 129

MDSPA 156,878 96,621 1.6

DMA, CONFIDENTIAL, SUPERVISORY 1,380,064 100,000 13.8

TOTAL $11,985,582

Example: $10 millionUNIT COST OF 1%

REDUCTION FACTOR

AMOUNT

CSEA $284,750 4.54 $1,292,765

LOCAL ONE, CST 134,321 4.54 609,817

LOCAL ONE, M&O 186,092 4.54 844,858

MDEA 1,311,912 4.54 5,956,080

MDSPA 28,785 4.54 130,684

DMA, CONFIDENTIAL, SUPERVISORY 253,329 4.54 1,150,114

TOTAL $2,199,189 $9,984,317

UNITCOST PER

UNITAVERAGE

COST/POSITION# OF

POSITIONS

CSEA $1,292,765 $33,000 39

LOCAL ONE, CST 609,817 55,420 11

LOCAL ONE, M & O 844,858 57,845 14.5

MDEA 5,956,080 55,290 107

MDSPA 130,684 96,621 1.3

DMA, CONFIDENTIAL, SUPERVISORY 1,150,114 100,000 11.4

TOTAL $9,984,317

Example: $8 millionUNIT COST OF 1%

REDUCTION FACTOR

AMOUNT

CSEA $ 284,750 3.64 $1,036,490

LOCAL ONE, CST 134,321 3.64 488,929

LOCAL ONE, M&O 186,092 3.64 677,375

MDEA 1,311,912 3.64 4,775,360

MDSPA 28,785 3.64 104,778

DMA, CONFIDENTIAL, SUPERVISORY 253,329 3.64 922,118

TOTAL $2,199,189 $8,005,049

UNITCOST PER

UNITAVERAGE

COST/POSITION# OF

POSITIONS

CSEA $1,036,490 $33,000 31.4

LOCAL ONE, CST 488,929 55,420 9.0

LOCAL ONE, M & O 677,375 57,845 12

MDEA 4,775,360 55,290 86

MDSPA 104,778 96,621 1.1

DMA, CONFIDENTIAL, SUPERVISORY 922,118 100,000 9.2

TOTAL $8,005,049

How do we begin? Some Critical Questions:

How much is budgeted in particular departments?

What programs and services are provided?

Which programs and services are legally required?

Departments Affected District Operations Educational Services

Alternative Education Curriculum and Instruction Student Services Special Education School Sites

Fiscal Services Maintenance and Operations

Custodial and Landscape Personnel Research and Evaluation Technology and Information Services

Possible Programs/Services Impacted Athletics Budget Development Campus Cleanliness Campus Safety Class Size Reduction Clerical Support Curriculum Development Recruitment, Hiring, Retention School Site Support Services to Students with Special Needs Student Services Testing and Assessment Textbook Adoption Visual and Performing Arts

Review of General Fund Budget ALTERNATIVE EDUCATION

Program Budget FTE

General Purpose $4,255,146.32 22.572

Special Education 909,204.56 1.067

Special Projects 8,183,502.16 19.616

Total $13,347,583.04 43.255

ALTERNATIVE EDUCATION SERVICES

Continuation High Schools Home Study Independent Study Small but Necessary High Schools Special Education Extended Year

Program Spring/Summer Intervention Transitional Learning Programs Work Experience

Review of General Fund Budget

CURRICULUM AND INSTRUCTION

Program Budget FTE

General Purpose $ 5,513,939.00 66.51

Special Projects 19,836,459.36 98.32

Total $25,350,398.36 164.83

CURRICULUM AND INSTRUCTION SERVICES

4th and 5th grade PE prep All categorical programs, e.g. GATE, Title I Beginning Teacher Support, Peer Assistance and Review Curriculum development Elementary instrumental and choral music English as a second language Instructional administration Library processing and services Principals’ training School Improvement Teacher training and professional development Textbook adoption

Review of General Fund Budget

PERSONNEL SERVICES

Program Budget FTE

General Purpose $5,522,003.95 17.000

Special Projects 1,439,662.26 27.729

Total $6,961,666.21 44.279

PERSONNEL SERVICES

Certificated and Classified Employee Recruitment Certificated and Classified Substitutes Classified Employee Training and Professional

Development Credential and No Child Left Behind (NCLB) Monitoring

and Compliance Employment Services Labor Relations and Contract Management Negotiations Personnel Services Post Retirement Contracts Professional Development

Review of General Fund Budget

RESEARCH AND EVALUATION

Program Budget FTE

General Purpose $497,084.22 4.75

Special Projects 175,467.71

Total $672,551.93 4.75

RESEARCH AND EVALUATION

Enrollment Projections Facilities Study Program Evaluation Research and Evaluation School Boundaries Testing and Assessment

Review of General Fund Budget STUDENT SERVICES

Program Budget FTE

General Purpose $2,407,711.44 24.725

Special Education 52,361.41

Special Projects 4,849,479.47 46.465

Total $7,309,552.32 71.190

STUDENT SERVICES AB1113 School Safety and Violence Attendance Accounting Career Center Child Welfare and Attendance Community Day School District Wide Home and Hospital Drop Out Prevention and Recovery Foster Youth Health and Nursing High School Counseling and Supplemental Counseling Opportunity Program Safe and Drug Free Schools Saturday School Services for Section 504 Students Student Services Suspensions and Expulsions Title I Neglected Title IV

Review of General Fund Budget SPECIAL EDUCATION

Program Budget FTE

General Purpose $ 70,913.74 1.0

Special Education 57,494,265.32 600.02

Special Projects 8,077,531.06 126.63

Total $65,642,710.12 727.65

SPECIAL EDUCATION SERVICES

Assessment services Assistive technology Behavioral services Counseling Free and appropriate public education (FAPE) In-house Mental Health Collaborative and mental

health services Managing students’ Individual Education Plans Non-public schools and agencies Nursing and psychological services Occupational and physical therapy Parent Liaison services Preschool for students with disabilities Special Education Consent Decree Speech language therapy Students with special needs Teaching Testing and assessment

Review of General Fund Budget MAINTENANCE AND OPERATIONS

Program Budget FTE

General Purpose $21,138,513.94 191.20

Special Projects 764,746.19 0.5

Restricted Maintenance

and Transportation 12,993,981.20 149.38

Total $34,897,241.43 341.08

MAINTENANCE AND OPERATIONS SERVICES ADA compliance Building security Building trades Capital outlay and facility work Custodial administration Facility acquisition and construction Heating, ventilation, air conditioning Landscape Maintenance and repair Measure A construction Measure C construction Mechanical trades Mobile maintenance Playground equipment Plumbing and electrical Restroom renovation Transportation