Presented by: Gary Rutherford, Ed.D. Superintendent May 13, 2008

1. UPLAND UNIFIED SCHOOL DISTRICT2008-09 Budget Update:Charting a Course During a State Fiscal Crisis Presented by: Gary Rutherford, Ed.D.Superintendent May 13, 2008

2. SACRAMENTO, WE HAVE A PROBLEM…

3. DEFINING THE PROBLEM • Less than five months ago, the Governor laid out his plan to make up a record $14.5 billion revenue shortfall by slashing $4.5 billion from next year’s education budget. Updated information indicates that number may be hovering around $18 billion – and growing.

4. DEFINING THE PROBLEM • The District has been grappling with the impossible task of making $4.6 million in cuts to the district’s operating budget, as identified in our Second Interim Report, while maintaining our excellent instructional offerings and support programs.

5. THE PLAN Restore a balanced budget using a deliberate and thoughtful approach to reduce spending by $4.6 over the next three years: • 2007-08 Implement immediate spending freeze to build and enhance the year’s ending balance • 2008-09 Identify and implement reductions to address the majority of the necessary cuts; use unrestricted reserves as a one-time solution, pending additional cuts • 2009-10 Identify and implement the balance of cuts needed to restore a balanced budget

6. SETTING A MORAL COMPASS • The collapse of the state budget threatens all districts with fiscal chaos. We will do everything in our power to make sure that the Upland Unified School District will be the last district in California to “hit the wall.” • Reductions in programs, services, materials, equipment, and people are inevitable during a time of diminishing resources. We are committed to keep cuts as far away as possible from our primary mission – student learning. • Long after this challenging season has passed, the district will be remembered more for how we treated people than for what actions the district was forced to take. We will treat people with empathy, dignity and respect.

7. BACKGROUND • December 2007 - Staff identifies more than $1.7 million in cuts to justify negotiated settlements with all employees. • January 2008 – Governor of California declares a state fiscal crisis, proposing severe cuts. UUSD immediately imposes spending/hiring restrictions and a target of $4.2 million in reductions is set for the 2008-09 budget.

8. BACKGROUND • February 2008 – Superintendent establishes a State Fiscal Response Team to collect input from key stakeholders. Team’s confidential report is used in budget development. • April 2008 – Second Interim Report accepted by the Board, including a two-year “solvency scenario” that identified more than $5.4 million in potential spending cuts, carried out over two years to balance the budget.

9. CURRENT CONSIDERATIONS • May Revise Update • Tonight, the Board will receive Part 2 of the Preliminary Budget – moving from “scenarios” into “action.” On May 27, the complete 2008-09 budget will be brought to the Board for a first reading. • The final budget solution will be brought to the Board for final approval on June 17th. It may be modified based upon: • Any changes in School Services of CA’s “dartboard” for budget assumptions; • Other cuts or enhancements identified in the coming weeks.

10. PROGRAM IMPLICATIONS: Increase number of combination classes New students assigned to another site when grade level is at capacity at home school Elimination of under-enrolled HS classes Addressed through attrition; no lay-offs necessary ESTIMATED FISCAL IMPACT: $787,900 Assign teachers strictly according to maximum student/teacher ratios to reduce district-wide staffing by 8 full-time positions 1

11. PROGRAM IMPLICATIONS: Reduce consultant services Reduce travel and conference opportunities Protect essential core services Reallocate in the current budget year to maximize the ending balance. All allocations will be compliant under state and federal guidelines ESTIMATED FISCAL IMPACT: $510,273 Shift and/or reallocate current categorical resources to offset spending in the unrestricted general fund 2

12. PROGRAM IMPLICATIONS: Eliminate: (1) Instructional Coor. at HHS (5) I.C. positions at UHS Create: (2) Vice Principal positions at UHS HHS position currently vacant; UHS positions pending reassignment to teaching positions ESTIMATED FISCAL IMPACT: $415,559 Reorganize administration structure at the high school level 3

13. PROGRAM IMPLICATIONS: Students make-up an absence by attending school on Saturday Standards-based curriculum, supervised by teachers Program has been successfully piloted at UHS this year; will expand to junior high next year ESTIMATED FISCAL IMPACT: $349,097 Increase ADA revenue through Attendance Recovery Program at secondary level 4

14. PROGRAM IMPLICATIONS: Action reduces Grounds, Maintenance, Custodial, Warehouse, and District Office Clerical support Addressed through attrition and reassignment; no lay-offs necessary ESTIMATED FISCAL IMPACT: $338,719 Eliminate 6 classified employee positions 5

15. PROGRAM IMPLICATIONS: Food Services will be fully self-funded Seeking Board authorization to increase fee schedule ESTIMATED FISCAL IMPACT: $142,090 Eliminate current general fund contribution to Food Services’ operating costs 6

16. PROGRAM IMPLICATIONS: Reduces library services for students Seeking Board authorization ESTIMATED FISCAL IMPACT: $123,692 Reduce Elementary Library Technician positions to 20 hours per week 7

17. PROGRAM IMPLICATIONS: Reduces discretionary spending to support programs and services ESTIMATED FISCAL IMPACT: $87,139 Reduce school site and district administrative and supply budgets by 10 percent 8

18. PROGRAM IMPLICATIONS: Currently staffed at 2.5 full-time positions Reduction will be achieved through voluntary adjustments among current District Nurses; this will meet current contract language for staffing ESTIMATED FISCAL IMPACT: $53,238 Eliminate .5 FTE District Nurse position 9

19. PROGRAM IMPLICATIONS: Potential impact on participation in athletic, academic, music, pep and performing arts competitions and tournaments Reduces allocation from $88,000 to $50,000 FCMAT Transportation study is also considering: Consolidation of elementary early release days Kindergarten home-school in AM or PM only Single dismissal time for Grades 1-6 Changes in school starting and ending times ESTIMATED FISCAL IMPACT: $38,000 Reduce general fund contribution for transportation expenses related to tournaments, competitions and special field trips at UHS 10

20. Reduce teaching positions $787,900 Categorical reallocations $510,273 Reduce HS administrator positions $415,559 Attendance Recovery Program $349,097 Reduce classified positions $338,719 Eliminate Food Services allocation $142,090 Reduce K-6 Library Tech hours $123,692 Reduce District/Site supply budgets $87,139 Eliminate .5 FTE District Nurse $53,238 Reduce transportation allocation $38,000 TOTAL FOR 2008-09 $2,846,707 SUMMARY OF MODIFICATIONS

21. Eliminate 3rd grade class size reduction program Eliminate 9th grade class size reduction program Reduce home-school transportation costs Charge fees for home-school transportation Reduce stipends for extra-curricular programs Further reduce all supply budgets Eliminate additional classified positions Eliminate additional management positions Suspend all junior high athletics Reduce art, music and PE programs Increase average class size in grades 3-12 Solvency Scenario Options for the Future *

22. Suspend step & column increases Across-the-board unpaid furlough days Across-the-board salary rollbacks Eliminate teacher stipends for athletics and extra-curricular programs Eliminate funding for ½ probation officer and/or school resource officer Reduce professional development offerings Eliminate Instructional Media Center (IMC) Reduce number of counselors School consolidation Solvency Scenario Options for the Future *