1 / 13

Garvey School District

Garvey School District. 2012-13 May Revise May 31, 2012. Economic Trends. California has the 3 rd highest unemployment rate in the U.S., (11%), trailing only Nevada and Rhode Island. National average is 8.9% Governor’s budget estimates that employment won’t return to 2007 level until 2015.

belva
Download Presentation

Garvey School District

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Garvey School District 2012-13 May Revise May 31, 2012

  2. Economic Trends • California has the 3rd highest unemployment rate in the U.S., (11%), trailing only Nevada and Rhode Island. • National average is 8.9% • Governor’s budget estimates that employment won’t return to 2007 level until 2015.

  3. Economic Trends (continued) • No long-term plan in place to control federal deficits. • Continuing uncertainty in Europe could lead to another global downturn.

  4. Major Provisions of Governor’s May Revise • Projected Budget Deficit has increased from $9.2 Billion in January to $15.7 Billion in May. • Governor Brown proposes to close the increased gap with cuts to programs besides education. • All hope for a balanced budget rests on the passage of the Governor’s tax initiative in November.

  5. Impact on K-12 Education • 3.24% COLA is not funded. • Revenue Limit deficit factor rises to 22.27% • State categorical programs receive flat funding. • Federal funding may fall 9.1% due to cuts scheduled to take effect in January; deficit committee failed to make long-term deal.

  6. Best Case Scenario • Even if the tax increases are approved by voters, there is no additional funding for education. • The new tax revenue reduces the State’s General Fund contributions to Prop 98 on a dollar-for-dollar basis.

  7. Worst Case Scenario • The governor’s initiative does not qualify for the ballot. We should know this by June 28. • The governor’s initiative does not receive a simple majority of votes. • In either case, ongoing Revenue Limit cuts of $441/ADA will take effect.

  8. Calculating the Cut • $441 x 5222 (2011-12 P-2 ADA) = $2,303,096 • Our 2nd Interim Report was Qualified based on a potential $370/ADA Revenue Limit cut. • The increased set aside between $441/ADA and $370/ADA is $370,793.

  9. 2012-13 Revenue Limit Funding

  10. Closing the Gap • The layoff of 20 certificated employees will save the Unrestricted General Fund $961,259 in both 2012-13 and 2013-14. • After these savings, we will still face a gap of $3,227,117 that we must close by the end of 2013-14 to be considered minimally solvent.

  11. Closing the Gap (continued) • As 94% of the Unrestricted General Fund is spent on salary and benefit costs, we are seeking to negotiate savings with both associations in these areas. • Each Furlough day would save the Unrestricted General Fund $118,902/year from GEA, CSEA and Management.

  12. 2011-12 Unrestricted General Fund Budget

  13. Closing the Gap (continued) • Each 1% salary reduction would save the Unrestricted General Fund $257,639/year from GEA, CSEA and Management. • A $9500 annual cap on health benefits would save the Unrestricted General Fund $486,074/year from GEA and CSEA. The cap is already in place for Management.

More Related