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2011-12 District Budget Priorities

2011-12 District Budget Priorities. Board of Education Meeting June 2, 2011. Presentation Agenda. Multi-Year Assumptions & Budget Uncertainties Staff Recommended Budget Budget Scenarios Title I and Title II Budgets Next Steps. Multi Year Assumptions & Budget Uncertainties.

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2011-12 District Budget Priorities

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  1. 2011-12 District Budget Priorities Board of Education Meeting June 2, 2011

  2. Presentation Agenda • Multi-Year Assumptions & Budget Uncertainties • Staff Recommended Budget • Budget Scenarios • Title I and Title II Budgets • Next Steps

  3. Multi Year Assumptions &Budget Uncertainties

  4. MYP Assumptions – Revenue

  5. MYP Assumptions – Expenditures

  6. MYP Assumptions – Expenditures (cont’d.)

  7. MYP Assumptions & Reserves Requirements

  8. MYP Assumptions - Uncertainties • Tax Extension Ballot Initiative • Low voter support in recent polling • Amount and Duration of Mental Health Costs (AB 3632) • School Realignment Program • Federal Funding Levels • 2012/13 General Fund Unrestricted Reductions • 2013/14 General Fund Unrestricted Reductions

  9. Staff Recommended Budget

  10. SDCOE Guidance & Staff Recommendation • Budget Development is consistent with SDCOE Guidance • “Under current law, temporary taxes are set to expire…We recommend that districts continue to plan for an on-going reduction or set aside a reserve until we get an enacted budget.” • -San Diego County Office of Education, May 26, 2011

  11. Superintendent Recommended Budget:Based on Need to Reduce Multi-Year Deficits The Superintendent’s recommended budget accomplishes the following important goals: • Follows direction from County Office of Education to achieve Positive Certification • Presents the strongest case to financial markets for a successful TRANS funding in July • Minimizes 2012/13 budget shortfall to $24.6m • Significantly reduces necessary layoffs in 2012/13

  12. Superintendent Recommended Budget:Minimizes Long Term Staff and Student Impacts The Superintendent’s recommended budget minimizes the following staff and student impacts: • Provides more stability for students and classrooms • Reduces the potential for another larger round of layoff notices in 2012. • Reduces future reductions in student services, classroom supplies and materials • Protects school support and maintenance budgets from new cuts in 2012

  13. Budget Adoption:Impact on TRANS Borrowing • TRANs Goes to Market in Early July • Pre-Market Promotion Underway Now • Financial Markets Will Evaluate Adopted Budget and Projected Deficits • Without a TRANs There is Significant Risk of No Cash To Meet Payroll by October 2011

  14. 2011/12 General Fund Projected Cash Flowwithout TRANs Borrowing Negative Cash Balances

  15. Recommend Budget: No Restorations Best Case: State Budget with Tax Extensions Lowest 2012/13 Shortfall $24.6m

  16. Worst Case Budget:“All Cuts Budget” (Loss of $245 per ADA) 2012/13 Shortfall $78.7m 2013/14 $203.7m

  17. Alternative Budget Scenarios

  18. Impacts of Alternative Budget Scenarios Restoration Alternatives All Assume Flat Funding with Tax Extensions:2012/13 Shortfall • #1 K-3 24:1 $53.6m • #2 K-3 Partial 20:1 $56.4mRemaining 24:1 • #3 K-3 24:1 $64.0mplus $5m additional • #4 K-3 20:1 $97.0m 500 to 1,500 more layoffs in 2012/13 would be needed to balance deficits at these levels!

  19. Budget Scenario #1: K-3 at 24:1 with Flat Funding 2012/13 Shortfall $53.6m

  20. Budget Scenario #2: K-3 at 20:1 @29 Schools & 24:1 @Remaining 2012/13 Shortfall $56.4m

  21. Budget Scenario #3: K-3 @ 24:1 + $2m Certificated +$3m Classified 2012/13 Shortfall $64m

  22. Budget Scenario #4: K-3 at 20:1 with Flat Funding 2012/13 Shortfall $97m

  23. Title I & ii Funding

  24. Title I & II Funding Reductions • Title I Funding could be reduced by 10% • No confirmation of amount at this date • Title II could be reduced by 15% • Funds professional development and positions • Site Budgets based on level Title I Funding • Reductions would be on central programs • Reductions will have staff impacts and impacts to GFU

  25. Title I Budget Comparison • Projected Revenue does not include potential 10% loss for 2011/12

  26. Title II Budget Comparison • Projected Revenue does not include potential reduction of 2011/12 of 15%

  27. Final Comments

  28. Recommended Budget Is the BEST Course for the District The Superintendent Recommended Budget will: • Protect the long-term fiscal solvency of the District • Comply with SDCOE Budget Guidance • Avoid Negative Certification and SDCOE Oversight • Protect the Viability of Successful TRANs Funding • Reduce Multi-year Deficits to more manageable levels • Reduce Needs for 2012/12 Layoffs • Provide More Long Term Stability in School Staffing

  29. Next Steps • June 14- First Reading 2011/12 Budget • June 21- Second Reading 2011/12 Budget • June 28- Adoption of 2011/12 Budget

  30. Questions?

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