2012

April 6, 2011

Budget

TentativeFY

Adoption

Online Survey March 1- 15

School Meetings March 1- 15

Town Hall Meetings March 15

Review of Input March 17

Recommendations March 24

What has happened so far?

2

Why are we short $400 million?

3

($ millions)

Revenue Sources $1,810.0

Expenditures - $2,073.7

Contractual Roll-ups - $75.7

Reserve/Designated Fund Balance

- $68.0

Total Shortfall - $407.4

March 24 Recommendations1. Consolidate school bell times

$ 10.02. Pass along ½ cost of PERS increase

14.53. Administrative department budgets (cut

20%)

48.74. School textbook/supply budgets (cut 25%)

12.05. Ed. Comp. Strat. & Literacy Spec. (cut 50%)

17.76. Salary steps and ed. increments (freeze)

39.97. Health ins.-employees assume part (12%)

23.28. Reduction in salaries (7.8%)

128.39. Staff counselors & sch. support staff at 97%

2.110.Increase class size

114.6Total

$ 411

($ millions)

4

2,486.1 positions cut

2,942 positions saved

Revised Recommendations1. Consolidate school bell times

$ 10.02. Pass along ½ cost of PERS increase

14.53. Administrative department budgets (cut

20%)

48.74. School textbook/supply budgets (cut 50%)

24.85. Spec. Ed. Facilitators, ELL Facilitators,

ECSs, Literacy Spec. (cut 25%)

15.46. Salary steps and ed. increments (freeze)

39.97. Health ins.-employees assume part (20%)

38.78. Furlough Days

73.49. Staff counselors & sch. support staff at 97%

2.110.Increase class size (by 3 students)

70.811.To Be Determined

69.1Total

$ 407.4

($ millions)

5

1,834 positions cut

2,477 positions saved

1. Consolidate School Bell Times

Total Savings = $10.0 millionSurvey?

Yes

6

125.0 positions cut

2. Pass Along ½ Cost of Retirement (PERS) Increase

Total Savings = $14.5 million

Current Rate21.50 %

New Rate23.75 %

A total increase of 2.25 %Employees’ share would be

1.125%

Survey? na

Must be Bargained

7

Note: For POA employees, the rate increases from 37.0% to 39.75%

207 positions saved

3. Administrative Department Budgets

Total Savings = $48.7 millionSurvey?

Yes

Targeted Cuts 20%

of all non-school-basedbudgets

totaling

8

449.0 positions cut

4. School Textbook and Supply Budget

Total Savings = $24.8 millionSurvey? No

50%ofFunds allocated to schoolsAnywhere from $44,000 at an elementary school …to $174,000 at a high school

9

5. ECS, SPED, ELL, & Literacy Specialists (25%)

Total Savings = $15.4 millionSurvey? No (ECS) & Yes (Literacy)

No (SPED) & Yes (ELL)

Educational Computer Strategists (ECS)Budgeted FTE’s: 226 positions Recommended Cut: 56.5 positionsLiteracy SpecialistsBudgeted FTE’s: 200 positions Recommended Cut: 50 positions

10

187.5 positions cut

Special Education FacilitatorsBudgeted FTE’s: 163 positions Recommended Cut: 41 positions

English Language Learner FacilitatorsBudgeted FTE’s: 160 positions Recommended Cut: 40 positions

6. Salary Steps & Educational Increments

Total Savings = $39.9 millionSurvey? na

Salary Step IncreasesEarned for years of serviceLicensed $22.6 millionSupport 9.6Administrators 1.1Police 0.9Total $33.3 million

Educational IncrementsEarned for attaining advanced degrees and education

Licensed $6.6 million

Must be Bargained

11

570 positions saved

7. Health Insurance Costs

Total Savings = $38.7 millionSurvey? No

20%of the cost

paid by the district on employees’ behalf

Employees would assume…

Must be Bargained

Support Staff and POA - $105.33Licensed Staff - $107.78

Administrators - $134.12

Employees’MonthlyShare

12

553 positions saved

8. Furlough Days

Total Savings = $73.4 millionSurvey? 3 days

Must be Bargained

13

1,147 positions saved

Months Worked

# of Furlough Days

(5% average reduction)

Amount Saved

($ millions)

9 months 8 $55.1

10 months 10 $1.0

11 months 11 $5.6

12 months 12 $11.7

9. Staffing at 97%

Total Savings = $2.1 millionSurvey? na

CounselorsAllocated: 1 per 400 students (secondary)

1 per 500 students (elementary)Budgeted FTE’s: 575 positions Recommended Cut: 17 positions

School-Based Support StaffSchool clerical and office staffBudgeted FTE’s: 1,500 positions Recommended Cut: 45 positions

14

62.0 positions cut

10. Increase Class Sizes

Total Savings = $70.8 millionSurvey? 3 students

Grades 1-3 (by 3)

From 18:1 to 21:1 in grades 1 and 2From 21:1 to 24:1 in grade 3

Recommended Cut: 471 positions

Grades 4-5 (by 3)

From 30:1 to 33:1Recommended Cut: 141 positions

Grades 6-12 (by 3)

From 32:1 to 35:1Recommended Cut: 399 positions

15

1,011 positions cut

11. Other Options to be determined

16

• Increase class sizes further

• Further employee concessions• Other programmatic cuts to be

determined

• Additonal revenue sources by Legislature

What is next?

Adoption of Final BudgetMay 18 – 5:30 pm

State Economic Forum MeetsMay 2

17

Negotiations with Employee Groups