Budget Update

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Budget Update 2009-2010 (updated September 2009)
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Original Budget (Operating Funds)
2009-2010 457 million 2007-2008 475
million
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Important Factors
The 457 million includes

• Growth-343.58 FTEs
• 23 Million Stabilization
• Categorical funding rolled into FEFP

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The 457 million does NOT account for fixed cost
increases

Next years retirement contribution rate will
increase by approximately 3.5 million.
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Budget 2009-2010 Recap of Revenues from State

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Budget Summary 2009-2010

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Proposed Budget Savings (recurring savings)

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Federal Funds
Federal Education Stabilization Allocation (part
of state funding)
23,007,434
These funds are for this year only. It is
unknown if they will be allocated next year as
well. This figure does not include the Targeted
ARRA funds for Title 1 and IDEA programs. We
will use these funds to enhance the quality of
education services available to students and to
save/create as many jobs as possible.
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Targeted ARRA Funds
IDEA - 14.9 million Title I - 10.5 million
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Recurring vs. Non-Recurring Funds

• Recurring Funds- Funds that you can reasonably
  expect to be replenished each year (e.g. FTE
  funding).
• Non-Recurring Funds- Funds that have no
  expectation of replenishment (e.g. A gift or a
  one-time deposit).
• It is unwise to incur recurring expenses that you
  do not have recurring revenue to sustain.
• If non-recurring revenue is used for recurring
  expenses, cuts to recurring expenses (e.g.
  allocations, health benefits) must be made the
  following year.

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Funding Cliff

• All ARRA Funds are non-recurring.
• State unlikely to replenish revenue in two years.

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Reserve Fund

• A 5 reserve fund is recommended for emergencies.
• Pascos reserve fund balance as of June 30, 2008
  was 5.59.
• A 5 reserve is needed to maintain current bond
  rating.

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Class Size Requirements

• The Legislature granted temporary flexibility
  with class-by-class implementation of ratios.
• This flexibility cannot be extended beyond this
  year.

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What Does This Mean For Pasco?
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Funds Available for Negotiation

• We have 9.1 million dollars in non-recurring
  revenue.
• The Board and I are committed to using these
  non-recurring dollars to fully fund the increase
  in health insurance to ensure that all employees
  still have a fully paid health plan.
• We propose allocating the remaining funds to
  one-time bonuses for all employees.
• The exact figure for the health insurance
  increase is still being negotiated. At this
  time, it appears the remainder of the
  non-recurring revenue would provide between
  500-600 in a one time bonus this year for all
  employees.

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Thank You!
We look forward to negotiating with you to secure
a responsible plan that rewards our employees.