Budget Overview

1
Budget Overview
D.01.

• Impacts of State Budget Cuts
• to Education

San Diego Unified School District
November 18, 2008
2
State Budget Shortfall

• 11.2 billion budget shortfall
• The state may have a cash flow problem as early
  as December
• Legislative Analyst announced that the state may
  be unable to sell Revenue Anticipation Notes
  (RANs) in December
• Legislature hopes to act by November 23

3
Proposed K-12 Cuts

• The Governor proposed revenue increases of 4.4
  billion and revenue reductions of 4.5 billion
• Increase sales tax 1.5 cents and expand coverage
• Oil extraction tax
• Alcohol tax
• Vehicle registration fee
• K-12 education could bear 2.2 billion
• These cuts are on top of the 3 billion K-12
  absorbed earlier this year

4
Governors Proposal 2.2 Billion Cut to K-12

• Elimination of .68 COLA (244 million)
• Reduce base funding by 1.791 billion in exchange
  for flexibility proposal
• Reduction in capped child-care programs (55
  million)
• Reduction in Stage 2 and Stage 3 childcare
  programs (42 million)
• Re-appropriation for Cal-Works Stage 2 and 3 to
  offset shortfall in one-time savings from ASES
  (108 million)
• Reduction in the following programs
• 28.6 million for CSR in K-3
• 2.6 million in principal training
• 3.3 million in alternative credentialing
• 1 million from pupil retention block grant
• TIIG one-time reduction (71.2 million)

5
Governors Flexibility Proposals K12

• Allow transfer of unlimited amounts and
  completely drain prior-year ending balances from
  virtually any categorical program
• Cut reserve for economic uncertainty in half
• Reduce routine maintenance reserves from 3 to 2
  percent
• Suspend local deferred maintenance match

6
LAO Proposal

• Elimination of .68 COLA (244 million)
• One-time savings from lower than expected program
  expenditures
• Suspension of some professional development
  programs maintenance programs instructional
  material purchases
• Lower Prop-98 to base funding level in 08-09 by
  500 million and use that to backfill prior-year
  Prop 98 settle-up

7
Impacts on SDUSD

• Overall impact could be approximately 40 million
  mid-year based on Governors proposal
• .68 COLA elimination 4.5 million
• CSR COLA 2.6 million
• Revenue limit reductions 30 plus million

8
Potential Solutions

• Reallocation of categorical funds
• Implement, ASAP, food service program changes to
  increase revenues
• Multiple HS lunch periods 1.2M
• Expand breakfast program 470K
• Elementary lunch on minimum days 865K
• Implement bell schedule changes
• 1M
• Reduce purchased services outside contracts
• Reduce General Fund contribution to restricted
  maintenance
• Continue to right-size central office staffing
• Small School closures
• CSR changes K-3
• Class size increases (4-12)

• Right-size teacher staffing levels
• Reduce substitute pay
• Identify SERP savings
• Districtwide salary rollback
• Eliminate elementary planning time (prep time
  teachers)
• Health insurance benefit changes
• Evaluate programs for savings
• OCILE
• JROTC
• VAPA
• Counseling staffing levels
• Nursing
• Librarians
• Landscaping
• Custodial services
• Magnet programs

Some of the potential solutions may require
negotiations with the union on either the
decision or the impacts and effects of the
decision.
9
Next Steps

• Refine budget options
• Continue to advocate in Sacramento
• Develop specific budget proposals for board based
  on final actions approved by the legislature
• Prepare a plan and timeline for board budget
  hearings and community forums