Plan to Address 2013-14 BUDGET

1. Plan to Address 2013-14 BUDGET

2. SEQUESTRATION • The Kentucky Department of Education held a webinar and told districts to be conservative when writing next year’s budgets and that, at this point, the sequestration will include at least five percent cuts to the state each of the next 10 years, unless Congress can figure out a way to reverse them.

3. SEQUESTRATION • True effects of sequestration are still unknown. • Expect to learn in May how much less money will be funneled from the federal government. The across-the-board cuts apply to many federal programs, including USDOE, Title I, Title II grants, special education, and federal pre-school. • Locally, this darkens the fiscal picture of our district as we face cuts already made at the state level. • This loss of funding is at a time of increase in expenditures. District is state mandated to increase input for employee retirement; the cost of services has increased and fuel costs are unpredictable. • No increase for Support Education Excellence in Kentucky (SEEK) funding = greatly reduced budget. The sequestration is creating a situation where funding for some positions is gone. The funds aren’t there anymore, so now we are forced to reduce positions.

4. SEQUESTRATION10% Reduction for 2013-14

5. END OF FEDERAL STIMULUS MONEY • In 2009, Kentucky districts received federal stimulus money that lasted two years, ending June 2011. • Union County used these dollars to increase staffing (13 certified & 12 classified).

6. State Projects Funding Cuts-Last 6 Years

7. Other Funding Concerns • Nurses in Schools: (reviewing different options) • Cost has increased drastically: In 2011-12 was $55,000; in 2012-13 was $85,000; cost for 2013-14 is $175,000. Green River Health Department has already reduced services of 3 assistants in March 2012. • KSBIT: • Current assessment is $289,000 • SEEK: • No increase for employees’ salary in years from the state. However, district salary schedule still includes step and rank increases ---current & projected cost locally: • 2012 = 142,788 • 2013 = 138,148 • 2014 = 139,500 • 2015 = 141,000 • 2016 = 142,700 Total = 704, 136

8. Unfortunately, What This All Means… • Government loses revenue, staff loses jobs, and students will have fewer resources! • As we are forced to reduce our working budget, we will remain focused on our core competency of teaching and learning and be committed to providing a quality education to our students. • The reduction in Union County will begin at the district level.

9. Suggested Reductions for 2013-14 Budget – District Efforts • 5 Days Reduction for all Directors/Coordinators = $14,990 • RtI District Position = $61,935 • Reduce 1 District GT Position = $45,000 (Combine Middle and High) • Reduce all Instructional Coaches 5 Days = $6,325

10. Suggested Reductions for 2013-14 Budget Continued • Close SES Afterschool Childcare = $25,765 • Reduce Dental benefits = $108,432 • Reduce % of 401K/403B = $93,091 • Reduce Bus Purchase for 2013 = ? (1 bus = $85,000, usually purchase 3 each year - $255,000)

11. Basic Staffing Allocation (Board Policy) Reductions: • MES: 2.5 teachers, 1 aide • SES: .5 teacher & 2 aides • UES: 3.5 teachers & 1.5 aides • UCMS: 3 teachers & 1 secretary • UCHS: 2 teachers Total Certified Positions = 11.5 Total Classified = 5.5 Total Amount of Reduction = $623,986 Total Personnel for UC: • Prior % Personnel = 86% • 2013-14 % of Personnel= 82% Total of All Reductions for 2013-14 Budget = $979,524 ($20,476 from 1 million dollar budget reduction)

12. Additional Efforts for 2013-14 Budget • UCLA Principal; Position Remain Vacant = $70,000 • Maintenance Position Remain Vacant = $27,561 • Take 4% Tax Rate for 2013-14