State Budget Update

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State Budget Update
Folsom Cordova Unified School District

• Board Presentation
• February 19, 2009

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STATE IMPACT
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State Budget Solution

• 15 billion in spending cuts
• 11 billion in borrowing
• 14.4 billion in temporary revenues
• Increase sales tax by one cent
• Increase to Vehicle License Fee (1 value of
  vehicle)
• Reduce tax credit for dependent care
• Increase income tax by 2.75 (gas tax gone in
  exchange for higher income tax)

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Special Election

• Prop 1A - Securitize to Lottery (bonds)
• Prop 1B Spending Cap/Rainy Day Fund
• 12.5 fully funded
• Next priorities Prop 98, debt, infrastructure,
  unfunded liabilities for retirees
• Prop 1C Education Funding
• 9.3 billion repayment to education over five
  years starting in 2011/12
• Prop 1D Redirect Prop 63 Funds (Mental
  Health Services passed in 2004)
• Prop 1E Redirect Prop 10 Funds (Early Child
  Development passed in 1998)

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Categorical Flexibility

• Categorical funding reductions of 15 are slated
  for 2008/09 and additional 4.9 cut in 2009-10
• Reductions continue through 2012/13.
• Provision for redirecting some categorical
  dollars is permitted through 2012/13.

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No reductions and no flexibility for these
programs

• Child Development
• Economic Impact Aid (EIA)
• After School Programs (ASES)
• Child Nutrition
• K-3 Class Size Reduction (CSR)
• Special Education
• Home-To-School Transportation
• Quality Education Investment Act

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15 reduction and no flexibility for these
programs

• English Language Acquisition Program
• Partnership Academies
• State Testing
• Some Other Programs Not Applicable to FCUSD

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15 reduction and flexibility for these and other
programs

• All remaining categorical programs, including but
  not limited to
• School/Library Improvement Program (SLIP)
• ROP
• Adult Education
• Instructional Materials
• GATE
• Professional Development
• PE/Music Arts
• Supplemental Counseling

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Flexibility in Class Sizes Grades K-3

• Financial penalties are modified to be
• 5 penalty from 20.5 21.4
• 10 penalty from 21.5 22.4
• 15 penalty from 22.5 23.4
• 20 penalty from 23.5 25.4
• 30 penalty from above 25.5

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Payment Deferrals

• Base Revenue and CSR entitlements moved from
  February to July
• Move regular July entitlements to October
• Move regular August entitlements to October

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Other

• ?Routine Maintenance requirement reduced from 3
  to 1 through 2012/13.
• ?Deferred Maintenance required contribution is
  eliminated through 2012/13.
• ?No change to 3 minimum general fund reserve
  requirements.

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Federal Stimulus Package

• 827,000
• Title 1 (services to low income and academically
  at risk students)
• 1,615,500
• IDEA Special Education
• FCUSD can fund the special education positions
  and services added this year with these dollars

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• LOCAL IMPACT

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Impact on FCUSD

• 2008-09
• Take back 0.68 COLA (42/student)
• Further reduce revenue by 118 per student
• Reduction of 220,000 in categorical program used
  for encroachments
• Loss to FCUSD 3.18 million
• Use savings from spending chill

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Impact on FCUSD

• 2009-10
• All reductions from 2008-09 still in place
• Ongoing loss of 3.18 million
• Further reduction of 45 per student
• Ongoing loss of 833,000
• Increases for ongoing obligations for
  step/column, health benefits, utilities, PL
  insurance, etc. ongoing costs of 2.778 million
• Ongoing structural deficit of 6.791 million

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2009/10 FCUSD

• 6,791,000 Ongoing shortfall
• 500,000 Categorical flexibility (1 yr.)
• 1,615,500 Federal IDEA Spec Ed (2 yrs.)
• 950,000 Categorical flexibility (4 yrs.)
• 3,725,500 Budget cuts in 2009/10

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2010/11 FCUSDNo COLA from State

• 6,791,000 Ongoing shortfall from 09/10
• 1,615,500 Federal IDEA Spec Ed (2 yrs.)
• 950,000 Categorical flexibility (4 yrs.)
• 3,725,500 Continued savings from budget
  cuts made in 2009/10
• 500,000 Additional cuts in 2010/11
• (used one time categorical funds in
  09/10)
• 2,778,000 Increased costs for step/column,
  health benefits, etc.
• 3.278 million in cuts

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2011/12 FCUSDAssumes COLA from State

• 6,791,000 Ongoing shortfall
• 950,000 Categorical flexibility (4 yrs.)
• 3,725,500 Continued savings from budget
  cuts made in 2009/10
• 500,000 Continued savings from cuts
  made in 2010/11
• 1,615,500 Additional cuts needed if
  Federal IDEA Spec Ed revenue is not
  renewed after two years

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• IF WE HAD TO DECIDE YESTERDAY

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• AS WE BEGIN TO LOOK AT TOMORROW AND BEYOND

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• WHILE WE BREATHE
• A SIGH OF RELIEF,
• LETS NOT FORGET

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High standards, but below average support

• 46th out of 50 per Education Week
• 650 per pupil below national average
• US Census Bureau
• As much as 40 under funded per Getting Down to
  Facts
• Not fully funded or protected in this years
  budget

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California vs. National Average

• In a school with 1000 students
• National Average
• 64 teachers
• 3.4 administrators
• California average
• 48 teachers
• 2.2 administrators

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• OTHER OPTIONS
• AND
• CONSIDERATONS

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Negotiable Items
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Other Considerations
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Other Considerations
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Other Considerations
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Long-Term Options

• Propose a parcel tax for voter approval for
  retention of programs.
• Establish a District foundation to seek donations
  and contributions.
• Institute an adopt a school program.
• Ask every parent to donate 650 per student.
• Post a wish list on every schools website.

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• WHAT
• HAPPENS
• NEXT?

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Timelines(Remember that patience is a virtue)

• Thursday, February 19
• Preliminary recommendations to the Board
• Thursday, March 5
• Approval of potential certificated lay-off
  notices
• Thursday, April 2 (or 23)
• Approval of classified lay-off notices
• Thursday, May 7
• Approval of final certificated lay-off notices
• Thursday, June 18
• Approval of preliminary budget
• June 30 deadline

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Actions

• Monitor changes
• To the state budget
• To the federal stimulus bill(s)
• To internal savings and reductions
• Golden Handshake
• Keep seeking flexibility
• At the state level
• At the local level
• CSEA, and FCEA

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Actions

• Keep communicating
• Budget Central updates
• Board meetings
• Additional forums, if needed
• Look to the future
• Long term versus one-time funds/savings
• Parcel tax proposal
• Foundations, grants, and donations
• Influencing the legislature

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