Salem-Keizer Public Schools Budget Message 2011-12

1. Salem-Keizer Public Schools Budget Message 2011-12 All students graduate and are prepared for a successful life. Budget information available online at www.salemkeizer.org

2. 10 Years of Funding History 03-04

3. Cuts: 02-03 through 05-06

4. Adds: 06-07 through 08-09

5. Cuts: 09-10 through 10-11

6. FTE changes over time In the 2009-10 budget process Federal Stimulus Funds paid for 31 FTE licensed staff, 15 classified staff and 1.5 supervisors.

7. Has student achievement improved?

8. Our VisionAll students graduate and are prepared for a successful life.

9. Academic Achievement: Reading The graph shows the percentage of students meeting or exceeding state standards

10. Academic Achievement: Math The graph shows the percentage of students meeting or exceeding state standards

11. Academic Achievement: Science The graph shows the percentage of students meeting or exceeding state standards

12. Academic Achievement: Writing The graph shows the percentage of students meeting or exceeding state standards

13. Our current reality

14. Our Challenge… • This budget is built on a $5.8 billion funding level for K-12 education • Our shortfall will likely be as high as $55 million. • The numbers keep changing… • May forecast • May adjustment • Ending Fund Balance • Legislative action • We need our employee groups to help solve the shortfall.

15. How is the shortfall determined? We start with the premise that we will maintain our current service level and then we add costs for: • Restoring 4 furlough days • Negotiated salary and benefit increases (Steps and COLA) • Projected increase in student enrollment • Inflation • Loss of federal funds (AARA) • A substantial increase in the PERS rate For 2011-12 we estimate this cost to be $379,391,404

16. How is the shortfall determined? We wait to see how much funding is allocated by the State of Oregon. This year, the State has less money to allocate . We estimate our total revenue to be: $313,396,285* *Includes flow through revenue from property taxes, WESD in lieu of services, interest earnings and fees.

17. How is the shortfall determined? Here is the math: Estimated revenue for 2011-12 $313,396,285 Costs to maintain current service levels $379,391,404 Shortfall $ -65,995,119

18. Addressing the shortfall…. Total shortfall: $ -65,995,119 Apply the following to offset the shortfall: • Projected Ending Fund Balance $12,000,000* Remaining Shortfall$-53,995,119 *Does not include May adjustment from ODE

19. Addressing the shortfall…. Amount of shortfall remaining : $-53,995,119 Apply the following to offset the shortfall: • PERS Reserves $5,000,000 • Transfer from Capital Maintenance* $1,635,000 Amount of shortfall remaining : $-47,360,119 *These costs will now come from bond funds.

20. Addressing the shortfall…. Amount of shortfall remaining : $-47,360,119 • Program reductions/eliminations $34,307,231 Amount of shortfall remaining : $-13,052,888 • Employee concessions and/or additional cuts. $13,052,888 Balance $0

21. How do you decide what to cut? Vision Strategic Plan Community listening sessions this fall Staff communication groups Input from principals and other supervisors Public hearings Feedback/input through outreach Key community leader communication groups These all factor into the decision-making process.

22. How do you decide what to cut?

23. How do you decide what to cut?

24. The proposed reductions

25. What are the proposed cuts? Support and Central Administration $7.6 million/66 FTE 10 administrators 28 custodians 9 maintenance workers 15.00 classified support staff 3.5 licensed staff Repurpose 3 small schools Reductions in the funds available for • Textbooks, computers and software • Contracted services • Operational costs

26. What are the proposed cuts? Instruction $26.7 million/335 FTE: 248 licensed staff members • 160 classroom teachers, 48 library media teachers, 10.5 literacy teachers, 6 elementary PE, 3 elementary music, 19 counselors, 1 behavior specialist . 87 Instructional assistants or classified staff. Elimination of general fund allocation for middle school after school programs and 6th grade jump start. Reductions to athletics at the secondary level. Reduction in the number of teacher differentials

27. There are no easy cuts Reductions to the budget must be: • Legally compliant • Sustainable • Operationally sound • Support academic achievement for all students We must downsize the organization to balance the budget and prepare for additional reductions in 2012-13.

28. There are no easy cuts Our current projections indicate additional cuts in 2012-13 in the range of $20 – $25 million. For the biennium (2011-13) that could mean reductions of up to $80 million. We will be making additional cuts for the 2012-13 school year.

29. What is the bigger issue?

30. Our Vision: All students graduate and are prepared for a successful life.

31. Upcoming Meetings Tuesday, May 3 • The budget committee will hear public testimony until 9:00 p.m. Wednesday, May 4 from 6 – 8 p.m. • The budget committee will hear public testimony until 8:00 p.m. and will begin deliberations at the conclusion of the testimony. Monday, May 9 from 6 – 7 p.m. • The budget committee will hear public testimony until 7 p.m. and will begin deliberations at the conclusion of the testimony. Wednesday, May 11 (if needed) • The committee will continue deliberations and will vote on a budget to recommend to the School Board. All meetings begin at 6:00 p.m. and will be at Claggett Creek Middle School Tuesday, June 28 – Budget Adoption • The School Board will adopt the budget. Location to be determined.