Defining the Problem

1. Chico Unified School District Budget WorkshopOctober 17, 2007Jan CombesAssistant SuperintendentBusiness Services

2. Defining the Problem Required Reserve Level (3%) $3.2 mil Reserves Available 2.8 mil Shortfall 0.4 mil • 2007-08 expenses exceed revenue by $2 million • For 2008-09 expenses exceed revenue by $2.5 million, after including any new money from the state

3. County Intervention • Butte County Office of Education has oversight responsibility for the budget • Butte County provided CUSD with a “conditional budget approval” • By First Interim (Dec 5 board meeting) the budget must be brought into balance

4. First Interim Certifications - TYPES • POSITIVE: The district will be able to meet its financial obligations through 2009-10 • QUALIFIED: The district may be able to meet its financial obligations through 2009-10 • NEGATIVE: The district is unable to meet its financial obligations through the end of 2008-09

5. In Absence of Changes Current budget will not meet its fiscal obligations for the subsequent fiscal year By 2008-09 reserves will be depleted Part of the reason a district carries a 3% reserve is to ensure sufficient cash to operate; a state loan could be needed as early as Spring, 2008

6. Pending Issues Budget for 2007-08 is still under review The staffing budget needs to be revised to match the cost of personnel who were hired over the summer The full impact of the CUTA negotiated settlement, as it relates to teacher staff development days no longer offered

7. More Pending Issues Assumptions for 2008-09 are being tested Cost of increase in Silver Plan for BSSP is an unknown and is a large part of projected deficit spending in 2008-09 The savings from the “golden handshake” for last year’s retirements are still being evaluated (depends on staffing costs)

8. Cabinet Budget Advisory Team • District administrative staff • Reviewing over 85 suggestions • Enrollment and staffing analysis • Operational costs • Costs of programs that impact the general fund • Use of categorical funds • Report will be presented Nov. 7

9. Who is Participating Andrea Lerner-Thompson – Board Representative Janet Brinson/Pete VanBuskirk – Categorical Budgets Carolyn Adkisson – Educational Services Mike Morris – Staff Development Cynthia Kampf – Testing and After School Programs David Scott – Special Education David Koll and Bob Feaster – Personnel Mary Leary – MOT Mike Weissenborn– Facilities/Asset Mgmt Leroy Christophersen – Risk Mgmt Lynn Kamph – Position Control (Staffing Budget) Scott Jones, Jan Combes – Budget Vikki Gillett - Technology

10. Research is Underway Certificated Staffing • Elementary • Secondary • District Office Classified Staffing – general fund positions • As compared to ratios • As compared to “comparable districts”

11. Research: Operational Costs • Reduction of energy consumption • Travel and conference expenses, especially outside the District • Student transportation costs (busing) • Cost of operating food services • Cost of operating a warehouse, print shop and other support services

12. Research: Support Services • Counseling services • Library/Media/Technology services • Health services • Administrative support

13. Research: Revenue Generators • Asset management (leasing property) • New Rental Income (i.e. cell towers?) • Providing services to smaller districts

14. Research: Student Programs • Examine electives offered • Review alternative programs and offerings • Review any special program that impacts the general fund • Examine the way that prep time is funded (Art, Music, Physical Education)

15. OPTIONS: Class Size Reduction • 20:1 but average daily enrollment allowed is 20.44 so some days can be above 21 • Combination Classes (grades 3-4) are provided at 20:1 ~ but could be offered at 28:1 • For K-3 we could choose to operate above the average of 20.44 (up to a maximum of 21.85) and lose “part of the funding” • Could choose “Option 2” in some settings (half day instruction at 20:1)

16. CUTA Contract Provisions • K-3 30:1 (up to 15% can be at 33 in K and 32 in Grades 1-3) • 4-6 33:1 (up to 15% can be at 35:1) • 7-12 40 students per class and 175 students per FTE maximum

17. CUTA Contract Provisions, continued District wide up to 10% (plus or minus three classes) of classes in grades 4-6 may be combination classes….. These classes may have no more than 28 students (with the exception of three classes which may be at 30)

18. Staffing Reductions Due to budget constraints, the district is reviewing the current staffing within the allowances provided in contractual agreement Mid year staffing reductions are being considered for the end of the 1st trimester for elementary schools and/or in place by 2nd semester for secondary schools

19. 2008-09 Loading • Staff for more combination classes • Not fund combination classes at 3-4 at 20:1 • Project student enrollment low and staff tighter than normal • Build in a staffing reserve in case student counts exceed expectations • Have a plan to place late arrivals; may not be in neighborhood schools

20. Opportunities for Input Confidential Budget Hotline 891-3000 ext 200 Or email jcombes@ChicoUSD.org or any member of the cabinet level budget advisory team This power-point will be posted on the website for review - principals may wish to download and present to staff and parent groups

21. Next Steps • November 7 Board meeting - receive recommendations from fiscal expert and budget advisory committee • November: Consider Committee Expansion • December 5 Board meeting - revise budget and adopt First Period Interim Report and Multi year Projections

22. Difficult Times… Difficult Measures Discussion / Questions about the Budget Opportunity for Public Comments Opportunity for Board Comments