District Response to State Fiscal Crisis Board Meeting November 5, 2008 Prepared by: Dr. Cathy Washer Mr. Douglas Barge Ms. Carrie Hargis Y: Business Services/Board

District Response District Response to to

State Fiscal CrisisState Fiscal Crisis

Board MeetingBoard MeetingNovember 5, 2008November 5, 2008

Prepared by:

Dr. Cathy Washer

Mr. Douglas Barge

Ms. Carrie Hargis

Y: Business Services/Board Agenda/2008/09/B11-05-08/District Response to State Fiscal Crisis

Executive Executive SummarySummaryExecutive Executive SummarySummary

i

This report shows a breakdown of the various activities being proposed to prepare for the State’s mid-year review of their 2008/09 budget plan and expected problems facing the District next year

Staff has reflected upon the Board and community discussion at the October 28, Board of Education meeting

The report recommends: Expenditure restrictions for the current year to help build

reserves Superintendent’s Budget Advisory Committee

involvement in the planning process A budget development process A delay in program implementation A study of the operations of the James Arieda Education

Support Center (JAESC)

Table of Table of ContentsContentsTable of Table of ContentsContents

A. IntroductionB. Processes Already in PlaceC. Ideas for Savings This YearD. SBAC WorkE. Issues with Tight TimelinesF. Future Development OptionsG. 2009/10 Planning ProcessH. Budget ModelingI. Additional Suggestions from the

BoardJ. RecommendationsK. Appendix

12

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1011

DescriptDescriptionion

Page #Page #

ii

IntroductionIntroductionIntroductionIntroduction

1

On October 7, the Board received a report outlining the State’s 2008/09 Adopted Budget

To meet the 45 day declaration requirements, on October 21 the Board approved budget revisions reflecting the State’s Adopted Budget

Staff returned to the Board on October 28, with a report showing

The financial impact to the District due to the State’s budget plans

Adjustments that could be made this year Planning for next year Outline of other strategies

The Board tabled this item on their agenda

Per the Board’s request, this report is returning for consideration and action

Processes Processes Already in PlaceAlready in Place

Processes Processes Already in PlaceAlready in Place

2

The State requires the District to report on its current financial condition and project out two additional years

Two Interim reports reflecting activity as of October 31 and January 31 are provided to the Board for approval

An Unaudited Actual financial report is prepared each year for Board approval

Board approves the District’s adopted budget each year

The District’s financial reports are reviewed by an independent audit firm each year

Budget adjustments are presented to the Board for approval at each regularly scheduled meeting, as needed

Dec./Mar.Dec./Mar.

Sept.-Sept.-Oct.Oct.

JuneJune

Dec.Dec.

TimelinesTimelines

Ideas for Savings Ideas for Savings This YearThis Year

Ideas for Savings Ideas for Savings This YearThis Year

3

Limiting the use of overtime

Reduce the use of consultants and other contracted services

Conferences, not already approved, will be restricted and must be approved by the Superintendent

Shock absorbers (listed in the appendix) will be held in reserve to improve the ending fund balances for 2008/09

Vacant positions will not be filled (except for critical positions as determined by the Superintendent) Safety of students, legal requirements, maintaining

efficiencies, classroom instruction, and the impact on the District’s financial condition will be given particular consideration

Caution:Vacant positions should not dictate the future structure of the DistrictVacant positions should not dictate the future structure of the District

Ideas for Savings Ideas for Savings This Year This Year (cont.)(cont.)

Ideas for Savings Ideas for Savings This Year This Year (cont.)(cont.)

Teacher Vacancies – Will be filled with subs Secondary – Efforts will be made to reduce staffing to

reflect actual enrollments

Budgeting Guidelines Dealing with the combination of vacant positions and

overstaffing among sites Staffing will be adjusted downward, if possible, to reflect

fewer students at CBEDS (except for teachers) Staffing will not be adjusted upwards per changes in

students or square footage

Maximize Grant funding Move staff from unrestricted resource programs, when

possible, to fill vacancies in restricted programs (do not supplant)

4

SBAC WorkSBAC WorkSBAC WorkSBAC Work

The Superintendent will request input and recommendations from the Superintendent’s Budget Advisory Committee (SBAC)

Possible future study of various sites to a K-8 program

Review the use of overtime/timecards Summer School educational program for 2009 Develop recommended areas that will not be

reviewed

The Committee (SBAC) will develop their own recommendations for the Superintendent’s consideration

5

Issues with Tight Issues with Tight TimelinesTimelines

Issues with Tight Issues with Tight TimelinesTimelines

Forego New Facilities Operation Costs Delay Lockeford K-8

Study School attendance and boundaries

6

Future Development Future Development of Optionsof Options

Future Development Future Development of Optionsof Options

Teacher Fully implement Committed/Growth staffing model

Hire only to the committed projections

Guidelines Review all staffing formulas Develop K-8 School Formulas Implement staffing formulas

Review Textbook Adoptions

7

2009/10 Planning 2009/10 Planning ProcessProcess

Staff will develop recommendations for Superintendent’s and Budget Advisory Committee’s consideration

Superintendent’s Budget Advisory Committee will review staff strategies and recommendations

Budget will be built using:

Board approved budget guidelines

Board approved enrollment projections

Governor’s January budget plan

Governor’s mid-year adjustments

May revisions by the Governor

Board approved budget adjustments

And other estimates

8

Budget Budget ModelingModelingBudget Budget

ModelingModeling

Slide 1 – Change in the enrollment projections over last year

Slide 2 – Enrollment related site formula driven positions

Slide 3 – Estimated on-going mandatory cost increases

Slide 4 – Estimated one-time mandatory cost increases

Slide 5 – Estimated discretionary costs for next year

Slide 6 – Changes in projected income

Slide 7 – Schedule showing the overall estimate of District budget change (balancing)

9

As we develop presentations to show the condition of the District’s budget, the following slides will continue to be included:

Additional Additional Suggestions from Suggestions from 10/28/08 Board 10/28/08 Board

MeetingMeeting

Additional Additional Suggestions from Suggestions from 10/28/08 Board 10/28/08 Board

MeetingMeeting

10

Superintendent was asked to study and report to the Board on the operations of the James Arieda Education Support Center (JAESC)

Focus will be on efficiency enhancements Cost savings Support to the schools Support of District goals

Periodic reports should continue to be presented to the Board on the District Construction program and its cash requirements

Staff should examine the financial viability of early retirement options

A report should be prepared by staff examining the impact of combining sites and programs

Staff should examine the impact of alternative secondary delivery systems (schedules)

Report should include the program benefits and costs

Current Current RecommendationsRecommendations

Current Current RecommendationsRecommendations

11

Staff recommends implementing the cost savings plan outlined in this report (pages 3-4)

Retain shock absorbers (page 3)

Superintendent’s Budget Advisory Committee will continue in its role in the budget development process

Staff will continue developing a budget model incorporating (page 7)

A committed/growth staffing A K-8 School formula once approved by the Board

AppendixAppendixAppendixAppendix

A. Budget Development CalendarB. District Mission, Vision and GoalsC. Detail of Shock AbsorbersD. Trends

Enrollment Ending Fund Balance Food Services

iii

TASK RESPONSIBLE DATE

1. Approve 2009/10 Budget Calendar Board 10/07/08

2. Superintendent’s Budget Advisory Committee meeting CBO 10/22/08

3. District Financial Update and Planning for 2009/10 report to Board Study Session

CBO 10/28/08

4. Superintendent’s Budget Advisory Committee meeting – review changes to budget guidelines

CBO 11/12/08


6. Preliminary enrollment projections CBO 11/28/08

7. Budget guideline modifications to Executive Team CBO 12/01/08

8. Final enrollment projections to Executive Team CBO 12/01/08

9. Approve budget guideline modifications Board 12/09/08

10. Approve enrollment projections Board 12/09/08


12. Staffing Projections Director of Budgets 12/17/08

13. Begin budget development input Director of Budgets 1/02/09

14. Mid-year review of current year budgets to Executive Team

CBO/Director of Budgets

1/05/09*

Board Approved Board Approved Budget CalendarBudget CalendarBoard Approved Board Approved Budget CalendarBudget Calendar

A1


15. Development of budget planning strategy CBO/Director of Budgets

1/05/09


17. Governor’s proposed budget for upcoming year is released

Staff 1/12/08*

18. Approve mid-year budget revisions Board 1/13/09*

19. Superintendent’s Budget Advisory Committee Meeting CBO 1/14/09

20. Report impact of Governor’s proposed budget to Executive Team

CBO 1/20/09*


22. Notify staff if layoffs are required Personnel 2/02/09

23. Begin review of individual budgets CBO/Director of Budgets

2/03/09

24. Report impact of Governor’s proposed budget to Board CBO 2/03/09*






A2


29. Complete review of individual budgets Director of Budgets 3/27/09

30. Budget balancing update to Executive Team CBO 3/30/09*


32. Budget balancing update to Board CBO 4/21/09*


34. Superintendent’s Budget Advisory Committee report to the Board

Committee 5/05/09*

35. May Revise report to Executive Team CBO 5/11/09*


37. May Revise report to Board CBO 5/19/09*

38. Proposed budget for Superintendent & Executive Team for final review

CBO 5/26/09*

39. Superintendent’s Budget Advisory Committee meeting (if needed)

CBO 5/27/09

40. Public Hearing & approve adopted budget Board 6/02/09*

41. Publication of budget Director of Budgets 6/02/09*

43. Submit adopted budget (SACS) reports to county Director of Budgets 6/09/09** * Tentative dates ** Five working days after Board approval


A3

11/05/082. Board Meeting to Discuss Impact of State Fiscal Crisis

Quarterly4. Report to the Board on Construction Program

Sept. ‘095. Opening Enrollment Reported to the Board

Sept. ‘096. Impact on Enrollment and Estimated Ending Fund Balance

Sept. ‘097. Report to the Board on the State Adopted Budget, approval of Ending Fund Balance budget revisions, and approval of 2007/08 Unaudited Actuals Financial Report

10/28/081. Board Meeting - Strategies for Moving Forward

11/18/083. Request for Board approval of budget adjustments reflecting New Strategies and final adjustments to reflect the State Adopted Budget

Oct. ‘098. Declare State Adopted Budget revenues for 1st Interim Report

A4

Additional Additional Calendar DetailCalendar Detail

Additional Additional Calendar DetailCalendar Detail

LUSD’s Mission & LUSD’s Mission & ValueValue

LUSD’s Mission & LUSD’s Mission & ValueValue

1. Every student2. High student achievement and accomplishment3. Parents as partners4. Diversity5. Contributions and commitments of teachers and all staff

as educators6. Trust, honesty, and respectful communication with each

other

Value Statement

We Value

Mission Statement

Lodi Unified School District will ensure the best education for

students to be successful in life.

B1

LUSD’s Vision & LUSD’s Vision & GoalsGoals

LUSD’s Vision & LUSD’s Vision & GoalsGoals

Goals1. Meet Program Improvement requirements as all groups of

students improve their performance, and make progress to eliminate the Achievement Gap

2. Improve the engagement of parents/guardians as partners in their children’s education

3. Support an environment where diversity is valued4. Maximize resources to improve the achievement of

students in a safe and positive learning environment

1. Each student realizes his/her maximum potential2. There is no achievement gap between groups of students3. We have a diverse staff that is highly qualified and enjoys

its work4. Schools are inviting and responsive to parents, engaging

them as partners in their children’s education5. We provide resources to support quality education and

safe, attractive learning environments in all of our schools6. We have a trusting, working relationship among the board

of Education, the school district, and the Community

In Lodi Unified School DistrictVision Statement

B2

Shock AbsorbersShock AbsorbersShock AbsorbersShock Absorbers

Descriptions BUDGET

3. Modernization Support – F&E Needs 176,200

2. Capitalization of Energy Conservation Program 325,000

6. Total On-Going Expenses6. Total On-Going Expenses $1,312,283$1,312,283

5. Classroom Furniture & Equipment Inventory 24,600

4. New School Start-Up (i.e. Lockeford K-8) 50,000

1. Textbooks $736,483

C1

EnrollmentEnrollment

D

Change in CBED Change in CBED StudentsStudents

Change in CBED Change in CBED StudentsStudents

(400)

(200)

0

200

400

600

800

1,000

1,200

1,400

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

CBEDS by Year

Stu

de

nts

D1

CBEDS Enrollment CBEDS Enrollment Comparison 2007 Comparison 2007

& 2008& 2008


& 2008& 2008

(313)(313)29,94529,94530,25830,258Grand TotalGrand Total

(13)1,4181,431Rural Schools

(423)15,40615,829North Stockton Schools

12313,12112,998Lodi Schools

Net ChangeIncrease/Decrease

2008CEBDS

2007CBEDSSchools

D2


& 2008& 2008


& 2008& 2008

(13)

28

(41)

RURALRURAL

(423)

8

(104)

(76)

(251)

STOCKTONSTOCKTON

909054Other

(313)(313)123 Grand Total

(139)(139)(35)Senior

(30)(30)46Middle

(234)(234)58 Elementary

TOTALTOTALLODILODIGrade

D3

Declining vs. Growing Declining vs. Growing (Sample)(Sample)

Declining vs. Growing Declining vs. Growing (Sample)(Sample)

1st Year 2nd Year 3rd Year 4th Year 5th Year

Students Expenses Income

**

**How do we pay for the growth needs?How do we pay for the growth needs? D4

Ending Ending Fund Fund

Balances Balances

D

General FundGeneral FundBeginning Balance Beginning Balance

UnrestrictedUnrestricted

General FundGeneral FundBeginning Balance Beginning Balance

UnrestrictedUnrestricted

Fiscal YearFiscal Year

$0

$5,000,000

$10,000,000

$15,000,000

$20,000,000

$25,000,000

$30,000,000

D5

Food Food ServicesServices

D

Enrollment Enrollment ChallengesChallenges

District-wide enrollment has dropped significantly this year

While the lunch program is still available to students, due to program needs the Pre-school Readiness students no longer eat lunch during class time

• As a result, we are serving approximately 500 less lunches every day for Pre-school alone

Overall, our meal counts are up 5% for breakfast and are tied for lunch compared to last year.

D6

Ala Carte Sales HS Comparison (RMHS, LHS, BCHS)

$0.00

$500.00

$1,000.00

$1,500.00

$2,000.00

$2,500.00

$3,000.00

$3,500.00

$4,000.00

Mon

.T

ues.

Wed

.T

hurs

.F

ri.M

on.

Tue

s.W

ed.

Thu

rs.

Fri.

Mon

.T

ues.

Wed

.T

hurs

.F

ri.M

on.

Tue

s.W

ed.

Thu

rs.

Fri.

Labo

r D

ayT

ues.

Wed

.T

hurs

.F

ri.M

on.

Tue

s.W

ed.

Thu

rs.

Fri.

Mon

.T

ues.

Wed

.T

hurs

.F

ri.

Total 07-08

Total 08-09

Comparison of First Seven WeeksComparison of First Seven Weeks

D7

Food & Labor Food & Labor CostsCosts

Rising costs of fuel Food costs are going

up rapidly Our cost is up 15%

compared to last year

2008-09 Food Budget has increased $648,000 to $4,970,746

Labor costs have risen approximately 5% this year.

2008-09 Labor Budget has increased $154,000 to $4,754,811

D8

That’s All For Now, That’s All For Now, Folks!Folks!

That’s All For Now, That’s All For Now, Folks!Folks!

Documents

District Response to State Fiscal Crisis Board Meeting November 5, 2008 Prepared by: Dr. Cathy Washer Mr. Douglas Barge Ms. Carrie Hargis Y: Business Services/Board