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Meeting of the Board of Education February 15, 2011. Budget Reductions and Revisions Phase IV. Child Care. The Budget includes significant cuts to child care for 2011-12, including: Eliminating services for 11- and 12-year olds Reducing eligibility from 75% of the state median income to 60%
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Meeting of the Board of EducationFebruary 15, 2011 Budget Reductions and Revisions Phase IV
Child Care • The Budget includes significant cuts to child care for 2011-12, including: • Eliminating services for 11- and 12-year olds • Reducing eligibility from 75% of the state median income to 60% • A family of four can earn no more than $45,832 per year • Lowering subsidies provided for services • To soften the impact of cuts, the Governor proposes providing local agencies with greater latitude to manage copayments and other fees
Child Care • For 2010-11, the Governor proposes reversing the enacted, but legally challenged, cuts to Stage 3 child care by directing $42.6 million in one-time federal funding • As of April 1, 2011, the Governor expects lower subsidy and eligibility rules to take effect for programs, such as Stage 3 child care • Funding for 2011-12 would continue, but based on lower levels and more restrictive eligibility
Child Care Funding • Total 2010-2011 $2.3 billion • Proposed 2011-2012 $1.6 billion • LBUSD needs to be prepared for a reduction of approximately 35%
Multi-year Projection Assumptions • Proposed initiative is not successful ($634/pupil) • 1st Interim assumptions w/reduction ($18.32/ADA) • CSR revenue continues at 2010-11 levels (in cuts) • Board actions of 2/1/11 are listed as “Ongoing reductions” • Categorical programs absorb all costs • If Board approved all recommendations tonight; LBUSD will still have to make another $60 million in reductions next year (for 2012-13); and $32 million the following year (for 2013-14)
Legislative Analyst: Unsuccessful Initiative • LAO issued recommendations for if the proposed initiative is unsuccessful • LAO’s recommendations would result in a reduction in K-12 funding of $760/pupil • This identifies downside risk $10 million greater than the risk identified in LBUSD estimate of $634/pupil • LAO’s number is not included in LBUSD multi-year scenario
Major One-Time Funding & Flexibility for General Fund * Ended ** Projected *** Includes $3.9 million of additional SFSF funds
Budget Reductions and Revisions, Phase IV* *Assumes Governor Brown's Proposed Initiative to Extend Taxes is Not Successful