IMPACT OF STATE BUDGET CUTS ON OUR LOCALSCHOOL DISTRICTS April 2008

1. IMPACT OF STATE BUDGET CUTS ONOUR LOCALSCHOOL DISTRICTSApril 2008 Presented by: Conejo Valley Unified School District Las Virgenes Unified School District Moorpark Unified School District Oak Park Unified School District Simi Valley Unified School District

2. Agenda • Welcome & Introductions - Patti Yomantas - 12th District PTA • State & National Perspective - Dr. Charles Weis, Ventura County Superintendent of Schools • How School Finance Works - Mario Contini & Dr. Donald Zimring • Regional Impact Ellen Smith, Kathryn Scroggin, & Tony Knight • Questions & Answers • Closing Comments - David Pollock - Past President California School Boards Association • Next Steps Free powerpoint template: www.brainybetty.com

3. BUDGET BASICS FOR CALIFORNIA SCHOOLS Mario Contini, Superintendent Conejo Valley Unified School District Dr. Donald Zimring, Superintendent Las Virgenes Unified School District

4. What You Should Know • Revenue Sources • Typical Expenditures • A Volatile History • Governor’s & LAO’s Proposals • The National Average • Per Pupil Funding (Governor’s Letter) • Have You Thought Of (efficiency) • Long Term vs. Short Term Free powerpoint template: www.brainybetty.com

5. For Unrestricted Uses For Restricted Uses (parcel taxes, partnerships & donations,…) Revenue SourcesGENERAL FUND: Federal, State, Local, Other FROM OTHER FUNDS • Adult Education • Bond $’S and Construction • Bond Redemption • Child Care • Child Nutrition • Deferred Maintenance • Developer Fees • Health and Welfare • Redevelopment Pass Through • School Modernization • Surplus Property • Worker Compensation Reserves Free powerpoint template: www.brainybetty.com

6. Typical ExpendituresPeople (85-90%), Services & Things (10-15%) From Unrestricted Funds • Core instructional programs • Elective Programs • Co/extra curricular programs • Salaries and benefits • Books, supplies, Instruc. Mtrls • Equipment, Technology • Discretionary Uses • Extra, Co-curricular Programs From Restricted Funds • Categorical (EIA, GATE, etc.) • Class Size Reduction * • Instructional Materials • Special Education * • Transportation * • Other * = General Fund must pay some Free powerpoint template: www.brainybetty.com

7. A Volatile HistoryUps, Downs, Shifts, Deficits, Loans, Deferrals Big Initiatives, $’s later cut Deficit Prop 98 Minimum Stock Investment Dependent One time, On Going Shifts Unfunded Mandates Deferred Payments to Districts Faced with $16 billion problem, ongoing debt and a structural deficit. Prop 57 Recovery Bond Prop 98 Suspensions Lottery (2%) Not the Answer Free powerpoint template: www.brainybetty.com

8. The Governor’s ProposalAcross the board cuts, no real revenue increases. In the “Year of Education” • 10% across the board cuts (few exceptions) • Proposed Suspension of Prop 98 Constitutional “minimum” • $360 million K-12 midyear “sweep” ( done) • A “minus” 2.4% Cost of Living Allowance (COLA) Proposed • A “minus” 6.5% adjustment to “special programs” (CSR/SpEd) • Defer June apportionment to September (will require districts to pay interest on loans) • No taxes, a few fee increases • In last 2 years California dropped in $’s/pupil from 43rd to 46th nationally and drop further if Governor’s proposal passes • Disregards 22 “Getting Down to Facts” adequacy studies asked for by the Governor Free powerpoint template: www.brainybetty.com

9. Legislative Analysts ProposalTargeted Cuts, Revenue Generation • Claims Governor’s proposal fails to set priorities • Bad times will improve next year, but will take years • Suggests “targeted” cuts, not across the board • Believes state could increase revenue • VLF • Reduce tax credits • $3 billion revenue plan • $11 billion “targeted” cuts • Plan to reduce the debt • Relax K-3 class size regulations • Retiring in November 2008 Free powerpoint template: www.brainybetty.com

10. The National AverageWhat it would mean to local districts? … if California were to increase per pupil funding to the national average as reported last month by the lowest estimated difference of $1,700… Free powerpoint template: www.brainybetty.com

11. A LETTER FROM THE GOVERNOR…….. Free powerpoint template: www.brainybetty.com

12. The Governor’s Letter - If our School Districts were to receive the amount the Governor reports as “Average Income to Schools of $11,626 we would receive the following: Free powerpoint template: www.brainybetty.com

13. Have You Thought Of… School Districts are often accused of being inefficient. The Data shows differently… • Districts in the region are below average for both site and District Administrative Costs • Districts have initiated numerous creative approaches ranging from aggressive energy savings, bulk purchasing and creative leases of cell site and facilities. • Current laws hamper Districts in being competitive in the ability to competitively bid for services and contracts. Free powerpoint template: www.brainybetty.com

14. Long Term vs. Short Term • Long Term - California Public Schools need a stable funding model that increases funding and allows our students to be competitive with the rest of the nation as they enter the 21st century work force • Short Term - Greater flexibility and local control in using the resources available. Let communities decide how to spend what is allocated until increased stable/competitive funding is restored. Free powerpoint template: www.brainybetty.com

15. So what does this all mean to our kids……. REGIONAL IMPACT Ellen Smith, Superintendent Moorpark Unified School District Dr. Kathryn Scroggin, Superintendent Simi Valley Unified School District Dr. Anthony Knight, Superintendent Oak Park Unified School District Free powerpoint template: www.brainybetty.com

16. Q. What is the fiscal impact to local school districts of the proposed state budget cuts? A: The estimated budget shortfall for 2008-09 for the five districts totals $27.5 million (These figures include the impact of state cuts, decline in enrollment and automatic increases in expenses.) Free powerpoint template: www.brainybetty.com

17. 2008-09 Budget Shortfall • Conejo Valley $8 million 22,300 students • Las Virgenes $6.8 million 11,900 students • Moorpark $3.5 million 7,300 students • Oak Park $2 million 3,700 students • Simi Valley $7.2 million 21,800 students • Total $27.5 million 67,000 students Free powerpoint template: www.brainybetty.com

18. Q: What are the programs and services that are in jeopardy of being cut locally? A: School Boards in all five districts are considering cuts in the following areas: Free powerpoint template: www.brainybetty.com

19. Possible loss of Class Size Reduction Program (grades K-3 and 9) Increases in class size and reduction in course offerings Reduction of Teachers Free powerpoint template: www.brainybetty.com

20. Increases in student – counselor, psychologist and nurse ratios resulting in reduced access and longer waits for services Decreases in staff assigned to maintain student discipline and instructional improvement with impacts on the school learning environment Reduction of Counselors, Psychologists, Nurses, Deans and Instructional Support Administrators Free powerpoint template: www.brainybetty.com

21. Reduction of Classified Employees Examples: • Reduced levels of cleaning and maintenance of grounds • Reduction of instructional assistant support for students and teachers (kindergarten, Special Education, English Learner support etc.) • Reduction of library staff and resulting losses of hours of operation • Reduction of computer technicians impacting technology support for students and teachers Free powerpoint template: www.brainybetty.com

22. Reduction of Funding for Transportation • Increased fees or reduced services for home-to-school and extra-curricular transportation • Reductions of all Budgets • Reductions of supplies such as: instructional materials, new textbooks, office supplies, physical education equipment, custodial/ supplies and staff training/release time Free powerpoint template: www.brainybetty.com

23. Reduction in the number and variety of sports teams or clubs offered unless fundraising is sufficient to pay for stipends Reduction or elimination of District funds for ASB accounting Reduction of Funding for Extra-curricular stipends and ASB support Free powerpoint template: www.brainybetty.com

24. Reduction of Summer School and other Special Programs • Summer School services may be reduced down to only required make-up courses, Special Education and Exit Exam preparation • Reduction of Specially-Funded Music, PE and Science Programs • Categorical program budget cuts will jeopardize many special program services including the new state music and PE teacher programs and funding for local programs such as science Free powerpoint template: www.brainybetty.com

25. School Closure • Districts are forced to consider the closure of small schools because they can’t afford the overhead. The underlying issue is inadequate state funding to operate schools. Free powerpoint template: www.brainybetty.com

26. Q:What are the overall impacts of these reductions in educational services? A: When there are increases in the ratio of students to caring adults on school campuses, the daily needs of students…. academic, social and emotional…. go unmet. For some students that will lead to dropping out of school and the related problems of juvenile crime and the rising prison population in California. For other students, it will mean the lack of an adequate education to help them achieve their dreams for college and a career. Ultimately, California’s workforce preparation will suffer with corresponding impacts on the economy. Free powerpoint template: www.brainybetty.com

27. Q:There have been lean years before in California funding, why is this year different? A: There are several forces colliding that are creating this crisis for local school districts: Free powerpoint template: www.brainybetty.com

28. Funding for education in this state is so thin, that districts have hardly any options to deal with further cuts. • That is why the cut lists for the five districts are so similar. Funding for education in California is 46th in comparison to the rest of the United States, yet the standards and outcomes we expect are among the highest in the nation. State funding fluctuates wildly year to year. In a good year, law makers create new programs for schools to implement. In a bad year like 2008, special programs are taken away and the proposed elimination of Prop 98, will cause school districts to cut out core services like counselors and teachers. School funding is so highly regulated that local School Boards have very little flexibility. Free powerpoint template: www.brainybetty.com

29. Expenses to run a school district increase annually. • Some of them include: automatic movement of employees on the salary schedule and increases in the cost of health benefits, utilities, insurance and mandated Special Education services. Free powerpoint template: www.brainybetty.com

30. District enrollment is declining. • The income for every student goes partly for the direct classroom expenses (teacher/instructional materials/utilities) but also for the overhead (principal, custodian, office manager, payroll, transportation, food service). The support services are still needed for current students, so it is difficult to make the necessary spending reductions required by the loss of income. Free powerpoint template: www.brainybetty.com

31. Q: What is needed to address the on- going public education funding crisis in California? A: It is vital that everyone continues to participate actively in the public policy discussions leading up to the final adoption of the state budget by the legislature. There are three main fiscal points that need to be considered as Californians debate solutions to our state fiscal crisis. Free powerpoint template: www.brainybetty.com

32. 1. Adequate Funding Are we as a state going to provide realistic levels of funding to address the world class academic standards that California has set in place for all students to meet? California is currently number 46 in the U.S. for education spending. Free powerpoint template: www.brainybetty.com

33. 2. Stable Funding Do we value stability for education programs or is the “business model” that involves expanding and downsizing with the market the best way to serve California’s students? Business reduces products to meet market demand. Educational needs of students are not correlated to economic markets. Free powerpoint template: www.brainybetty.com

34. 3. Local Authority for Use of Funding Do we continue to combine high levels of accountability with highly restrictive state regulations or do we reduce regulation to enable local innovation and improvement initiatives? The idea behind charter schools is reduced regulation and local control, yet that same flexibility is withheld from public school districts. Free powerpoint template: www.brainybetty.com

35. For information on these questions, see the Stanford University independent research project: “ Getting Down to Facts: A Research Project Examining California’s School Governance and Finance Systemshttp://irepp.stanford.edu/projects/cafinance.htm and the Report from the Governor's Committee on Education ExcellenceEveryChildPrepared.org Free powerpoint template: www.brainybetty.com

36. Questions????? • Please frame questions as they relate to our region. Hold questions regarding individual Districts to after the meeting with the appropriate Superintendent or Staff Member Free powerpoint template: www.brainybetty.com

37. Closing Comments Free powerpoint template: www.brainybetty.com

38. IMPACT OF STATE BUDGET CUTS ONOUR LOCALSCHOOL DISTRICTSApril 2008 Presented by: Conejo Valley Unified School District Las Virgenes Unified School District Moorpark Unified School District Oak Park Unified School District Simi Valley Unified School District