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Budget Update

Budget Study Session January 19, 2010Revised January 20, 2010ObjectivesFiscal Solvency Board Direction

Employee salary rollbacks/furlough days

Instructional program reductionDecember 8th staff recommendationsOther considerations

Additional options

Critical TimelinesJanuary 13, 2010Governors Budget ConferenceJanuary 14, 2010Leadership Team MeetingBudget FreezeJanuary 19, 2010Budget Study Session Board4pm 6pmJanuary 21, 2010NegotiationsJanuary 26, 2010Community ForumFebruary 2, 2010Board MeetingFebruary 5, 2010NegotiationsFebruary 16, 2010Board MeetingFebruary 18, 2010NegotiationsMarch 2, 2010Board MeetingBudget ReductionsMarch 15, 2010Preliminary Layoff NoticesDeadlineMarch 16, 2010Board Meeting2nd Interim ReportDeadlineQualified Certification Implications 2nd Interim ReportEd 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 reportingRequire the district to submit a plan of actionWithhold compensation of officialsComment on collective bargaining proposalsPrevented from issuing non-voter approved debt

Proposition 98 and the Education BudgetHighlights of the Education BudgetFlat funding under Proposition 98 in 2010-11$1.5 billion in cuts targeted to district administrationPersonnel and administrative reformsSuspension of almost all education mandatesNegative cost-of-living adjustment (COLA) produces no new fundingDeficit factor remains at record levelProposition 98 is still owed major sums$11.2 billion from past deficitsMore than $1 billion for unfunded mandatesDont plan to collect this yearRace to the Top (RTTT) is also a factor5Governors Budget Truth or Fiction?The Governor Protects EducationFiction Prop 98 is being manipulated

There are no new cuts to EducationFiction California schools lose another 4.1% on average

There are no midyear cuts to EducationTruth

The Governor honors past agreementsFiction 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 IUSD2009-102010-112011-121st Interim Report projected shortfall$0($14,732,333)($37,270,683)Governors Proposed Reductions:Revenue Limit COLA ($638,281)$3,087,181Administrative Cuts ($-201 per ADA)$0($5,345,605)($5,395,855)ARRA Stabilization Funding($762,991)$0$0Tier III COLA $0($55,295)261,928District 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 ADALoss of COLALoss of baseline dollars($566)($598)Hot TopicsStaff 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 FreezeEffective Immediately

Includes:SpendingHiring (case by case basis)Travel

Specifics to follow via email

Inform your staff

Tier IIIProfessional Development

Focus on Each Student

Instructional Technology

21st Century Learning

School SafetySpecial Education(in millions)Increased Intervention FocusCommon MessageReductions 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 MeetingsNext StepsCommunity Forum Tuesday - January 26, 2010 7-10 pm