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Board Budget Workshop Priority-based Budget Update

Board Budget Workshop Priority-based Budget Update. February 9, 2010. Presentation Agenda. Introduction Kowba Priority-Based Budgeting Process Stover Methodology Committee Overview PBB Recommendations Stover Open Topics & Areas for Further study Budget Status Overview Masias

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Board Budget Workshop Priority-based Budget Update

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  1. Board Budget WorkshopPriority-based Budget Update February 9, 2010

  2. Presentation Agenda • Introduction Kowba • Priority-Based Budgeting Process Stover • Methodology • Committee Overview • PBB Recommendations Stover • Open Topics & Areas for Further study • Budget Status Overview Masias • Updated budget deficit projections • Timeline update • Board Discussion & Direction

  3. Priority-Based Budgeting:Steps to a Balanced Budget

  4. Priority-based Budgeting:Methodology Overview • Three teams did extensive analysis of the resources needed to support the Board’s adopted six priorities • All six priorities are funded with a reasonable level of resources • Three teams did extensive analysis of the resources needed to support mandates and minimal level of services: • Minimal district operations • Minimal central office requirements • Mandates under which the district must operate • Teams reviewed 125 departments and cost centers • Consolidating and reducing down to the very minimal resources

  5. Priority-Based Budgeting: Broad Involvement and Broad Perspective • More than 60 Team Members Participated • Broad range of academic and business departments •  Extensive and Broad Range of Budget Evaluation • 123 Central Office Departments Examined • $1,107,750,000 in resources • $350,000,000 in school site allocations • $109,000,000 in class size maintenance funds

  6. Priority-Based BudgetTeam Decision Making – The Options • Sustain– After much deliberation the teams believe that a given department is already at the minimal level of resources and/or has had significant cuts made in current and prior years. • Reduce– A team or teams believe that a department or cost center is able to be effective in fulfilling its mission with fewer resources • Consolidate– Teams decided that the district could save resources through consolidation of similar efforts • Transfer– Used when financial resources are being moved from one department into another. • Discontinue– Used when a department no longer has funding, or the services provided are redundant or not meeting their original purpose. • Increase– Refers to a department receiving more resources in a significant way from the results of consolidation, or from actual increased service needs.

  7. Priority-Based Budget:Minimum Requirements Committees

  8. Minimum Requirement Committees:Review Process • Identified the Foundation of the PBB budget • Focused on “minimal” resource usage • Avoided focus on “what is.” Focused on “what can or should be” in a financially restricted climate • Focused on reducing resources across many cost centers • Focused on consolidation – 24 different consolidation efforts • Central Office Team • Reviewed the most departments • Made the widest range of recommendations • Mandated Team • Focus was more narrow and very challenging • Separating the service from the hierarchy • Minimal Operations Team • What is necessary to support staff and students • Emphasis was on moving resources to schools

  9. Priority-Based Budget:Board Priorities Committees

  10. PBB Committee Summaries February 9, 2010

  11. Class Size & 21st Century Learning Environment Committee • 21st Century Learning Priority • Focus • Infrastructure and Support • Teaching & Learning • Professional Development • Leadership • Recommendations • Equitable opportunities for students • Interactive, engaging learning environments • Tailored to individual student needs and learning styles

  12. Class Size & 21st Century Learning Environment Committee • Maintain Class Sizes Priority • Recommendations • Maintain class size ratio adopted by the Board on 6/2/09 • Increase in 1 CPU for K-8 schools • Designate the expenditure for “over-formula” teachers in the budget • Reduce the number of over formula teachers

  13. Class Size & 21st Century Learning Environment Committee 1) Based on 2010-2011 enrollment projections 2) Outside the staffing allocation, this number reflects recommended reduction of over-formula teachers 3) These additional 116 teachers are funded from ARRA and are not included in the base formula allocation. This one time funding ends June 2011. 4) These teachers are funded with State Fiscal Stabilization Funds (SFSF) and are included in the base formula allocations. This one time funding ends June 2011.

  14. Safe & Supportive Environment &Diversity & Integration Committee Safe and Supportive Environment Priority Area • Focus • Safe and Supportive Environment for students and adults • Worked as two sub-teams: • School Sites and Student Support Services • Facilities, School Police, Landscaping, and Custodial Services • Reviewed 16 cost centers • Recommendations • Maintain allocations for Principals, Vice Principals, Nurses, and Counselors

  15. Safe & Supportive Environment &Diversity & Integration Committee • Diversity and Integration Priority Area • Focus • To provide a socially-integrated learning and work environment that reflects the diversity of our community • Worked as one sub-team to review 14 cost centers • Recommendations • Explore Alternative Diversity Service Models • Identify redundancies and parallel work • Consolidate responsibilities with School Improvement Officers

  16. Broad-Based Curriculum & Raising the Achievement Level of All Students Committee • Broad-Based Curriculum Priority • Focus • Foundation on which further acquisition of knowledge, training, and competence can be developed • Content-rich and comprehensive • Caters to the different interests and needs of students • Critical Thinking; Arts/Humanities; Sciences and Technology; Leadership; Community • Recommendations • Reorganization/Consolidation/Reductions • OCILE • Magnet and Enrollment Options consolidation • Drop-out Prevention

  17. Broad-based Curriculum & Increase Student Achievement Level Committee • Increase Student Achievement Priority • Focus • Improving the achievement of students • Learning environment • Instructional practices, programs, and resources • Process • Review of district resources • Recommendations • Focus on practices not programs • Improving teacher capacity • Focused professional development • Sustain, consolidate, or reduce resources

  18. PBB Key Recommendations February 9, 2010

  19. Priority-Based Budgeting: Broad Involvement and Broad Perspective • Budget Review Meetings With Stakeholder Groups • Parent stakeholder groups/committees invited • All labor groups invited • Principal Budget Committee members • All recommendations were approved by: • A consensus of the PBB teams • Superintendent’s Cabinet • Executive Leadership Team • Superintendent

  20. PBB: Recommendations Summary • Basic Funding Level for All Six Board priorities • $1,114,230,962 Operating Expense Budget • Before adjusted costs • $755,766,458 unrestricted • $358,464,504 restricted • Consolidation of 24 Departments • Many Departments sustained due to size and previous reductions and Board approved reorganizations • $1,528,619 transferred back to school sites • $38,958,369 Total Unfunded Resources • $21,723,475 in unrestricted funds • $17,234,894 in restricted funds • 209.84 Total Unfunded FTE Staffing • 129.87 unrestricted FTE • 79.97 restricted FTE

  21. PBB Recommendations:Off-Campus Integrated Learning Experience (OCILE) • Suspend the OCILE programs from 2010 to 2013 • Reinstate when funding becomes available • Re-evaluate effectiveness of current delivery model • Maintain emphasis an exemplary race-human relations climate • Transfer essential responsibilities to appropriate departments • Race/Human Relations and Advocacy, Counseling and Guidance, Elementary School Improvement Officer and Secondary School Improvement Officer • $5,738,238 total unrestricted savings • 61.8 FTE reduction

  22. PBB Recommendations:Transportation Savings • Decreased Service Demand • OCILE program suspension • Learning Center closure • No First Student contract • $1,524,294 unrestricted savings • Decreases in staff hours and operation costs • Further study needed of department administrative functions

  23. PBB Recommendations:Special Education Reductions • Learning Centers Closure • Transfer services to school sites • $2,527,811 total unrestricted savings • Additional transportation department savings • 40.75 FTE reduction • 15.0 Certificated FTE • 24.75 Para FTE • 1.0 Clerical

  24. PBB Recommendations:Class Size Maintenance – School Allocation Formula • Recommendations: • Maintain class size ratio adopted by Board on 6/2/09 • Increase in 1 CPU for K-8 schools • Designate expenditure for over formula teachers within the budget • Reduce number of over formula teachers • $1,610,370 unrestricted savings • Saving from unbudgeted impact on ending balance • 18.8 certificated FTE reduction

  25. PBB Recommendations:Beginning Teacher Support • Program will be phased out over 2 years • Can be restarted if funding available • Possible impact on teacher recruitment efforts • Services maintained for those currently enrolled in program • $1,175,991 unrestricted savings • 3.75 FTE reduced - certificated

  26. PBB Recommendations:GATE Consolidation • No Loss of Program Services • Reduce and consolidate administrative functions • Program to be housed under Deputy Superintendent • $396,869 Unrestricted savings • 4.0 FTE Reductions • 3.0 FTE Unrestricted • 1.0 FTE Restricted

  27. PBB Recommendations:Suspension of Instructional Materials Center (IMC) • Consolidation of 5 departments into 1 • Close Teacher Media Center • Suspend Selected Textbook Adoptions in 10/11 • Maintain Williams Settlement and textbook sufficiency functions • Limited Suspension of Services • $238,600 unrestricted savings • Total 6 FTE reduced

  28. PBB Recommendations:SIO Offices – ISS Consolidation • Consolidation of Instructional Support Services under the Deputy Superintendent • Consolidate Chief Elementary and Chief Secondary School Improvement Offices under Superintendent • Each SIO office would have a curriculum/ professional development department • $517,321 savings • 49.5 Total FTE Reduced

  29. PBB RecommendationsParent Program Changes • Decentralizing programs to school sites • Discontinue service provision at the Ballard Center • Funds reallocated for services at school sites • Site discretion on parent services such as on-site translations • 8.5 FTE reduced

  30. CFO Financial Update February 9, 2010

  31. CFO Analysis of Priority Based Budgeting (PBB) CFO Analysis Goal was to confirm that the financial data in the PBB package was: Complete Reconciled Contained the most accurate information possible Information analyzed included the following: PBB spreadsheets PBB binders School Allocation Model FTE Resources PeopleSoft HCM Health and Welfare Benefits Step and Column Revenue Projections Expense Projections, etc.

  32. Governor’s Proposed/Priority Based Budgeting

  33. PBB Reconciliation

  34. 2010 PBB Budget – Next Steps • Continue refining the financial and programmatic information after the Board workshop • Additional analysis for restricted resources • Additional analysis with the projected enrollment and impacts to school allocations • Update the financial schedules • Total • Unrestricted • Restricted

  35. Second Interim Report • Due to the Board of Education by March 9, 2010 • Certification options • Positive – will be able to meet financial obligations • Qualified – may not be able to meet its financial obligations • Negative – will be unable to meet its financial obligations • Due to the SDCOE by March 15, 2010 • July 1, 2009 – January 31, 2010 YTD Expenses • February 1, 2010 – June 30, 2010 Projections • Requirements: • 2009/10 remains balanced; revenue matches expenses • Multi-Year Projections are Balanced • 2010/11 • 2011/12

  36. Closing Remarks & Considerations • Ongoing $201 ADA revenue limit reduction could move to $250 • Approximately $6 million less in revenue for the district • State Controller projects that, as of March 30, the state will need to tap emergency cash reserves • Tighter Spending Controls • Immediately implement a spending approval hierarchy district-wide • Sweep all remaining balances and manage via exception only • All purchases need CFO approval • Prior to submission all expenditures must be scrutinized by their chain of command, i.e. Principal, SIO, etc • Reduce the people who have purchase order access-requestors

  37. Next Steps • Staff Refinement of PBB Budget Items • Follow-up Board Budget Meetings • February 23 – Board Workshop • March 9 – Action Items • Second Interim Report • Resolution on the March 15 Certificated Notice

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