Budget Reduction Recommendations

1. Budget Reduction Recommendations February 8, 2010

2. It’s a Nationwide Situation Evansville Courier & Press School funding cuts to hit in January Indiana Class size incity schoolsrises New York School district cuts athletics Arkansas Deep funding cuts for schools in state budget Michigan School district cuts all sports programs California Music programs face cuts Minnesota Budget plan cuts books and school staff Virginia All school districts freeze teacher salaries Ohio

3. It’s Also a Statewide Situation Evansville Courier & Press School district budget reduced by $3 million Liberty Vo-tech teacher extended days reduced by 50% Fort Osage District cuts$18 million from budget St. Louis Public schools ask teachers to take pay cut St. Louis SROs cut due to school budget cuts Troy School budget cuts unpopular but crucial Kansas City Budget cut talks begin, officials talk tax hike Lindbergh High school teachers to teach 6 of 7 periods Lee’s Summit

4. Budget Reductions Columbia Public Schools

5. 2010-11 Budget Assumptions • 10 percent reduction in state funding • 0 percent assessed valuation growth • Conservative estimates in 5-year plan Columbia Public Schools

6. 2010-11 Budget Parameters • Operate salary schedules, including educational credit • Maintain benefits plan • Support district portion of career ladder funding • Build year-end balances to a minimum of20 percent for 2013-14 Columbia Public Schools

7. Scenario 1: Cautiously Optimistic No Reductions Needed After 2010-11 Budget Assumptions Results Excess budgets in 2010-11 until 2014-15 No additional budget reductions after 2010-11 until 2015-16 or after Projected fund balances of 24% or higher during 5-year period • Improved assessed valuation assumptions as follows: 0% for 2010-11 1% for 2011-12 2% for 2012-13 2% for 2013-14 2% for 2014-15 • Full state funding in 2010-11 (including return of expected 2009-10 holdback) • Continued full state funding with promised formula increases in 2011-12 and beyond Columbia Public Schools

8. Scenario 2: FlatContinued Reductions Needed Assumptions Results Operating deficit for2010-11 Additional budget reductions in 2011-12 through 2014-15 Fund balances trending downward from a projected 19.70% for 2009-10 to a projected 16.69% at 6/30/15 • Improved assessed valuation assumptions as follows: 0% for 2010-11 1% for 2011-12 2% for 2012-13 2% for 2013-14 2% for 2014-15 • 10% reduced state funding in 2010-11 • Flat state funding in 2011-12 and beyond Columbia Public Schools

9. Scenario 3: Conservative ModelContinued Reductions Needed Assumptions Results Operating deficit for2010-11 Slightly higher additional budget reductions in 2011-12 through 2014-15than Scenario 2 Fund balances trending downward from a projected 19.70% for 2009-10 to a projected 16.86% at 6/30/15 • Improved assessed valuation assumptions as follows: 0% for 2010-11 .5% for 2011-12 1% for 2012-13 1% for 2013-14 1% for 2014-15 • 10% reduced state funding in 2010-11 • Flat state funding in 2011-12 and beyond Columbia Public Schools

10. Recommendations for 2010-11 • Equity • Efficiency • Reorganization Columbia Public Schools

11. Non-personnel-based Adjustments(Estimated) Columbia Public Schools

12. Personnel Reductions(Estimated) Columbia Public Schools

13. Compensation Reorganization(Estimated) Columbia Public Schools

14. Employee benefits Managing Long-term Costs • Student enrollment • Aging buildings • Competitive salaries $ Columbia Public Schools

15. Budget Reduction Recommendations February 8, 2010