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Budget Study SessionFebruary 7, 2013

Michael E Finn

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• Current Year M&O Summary– Budget projections update– Current tracking by function

• Fiscal Year 2014 Assumptions• Options and Discussion on Fiscal Year 2014

Budget– Reductions and budget collaboration summary– Revenue generating options

Discussion Points

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• Board direction on FY 2014 budget• Create capacity to cover the structural deficit and

direct monies towards salary enhancements

Desired Outcome from Study Session

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FISCAL YEAR PROJECTIONS

• Total spend projected to be $188.6M– Slightly lower than total spend last year– All areas tracking to plan

Fiscal Year 2013 M&O Summary

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3-5 YEAR PLAN

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• Developed in 2011 to provide a metered plan for reduction– Previous years held hope that reductions were temporary– Failure of Prop 204

• Plan recognized long term structural deficits as a result of– Continued fluctuations and reductions in funding– Uncontrollable increases in expenses such as ASRS,

healthcare and utilities– Enrollment

3-5 Year Plan

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3-5 Year Overview3-5 Year Plan FY 2013 FY 2014 FY 2015

Reduce Function 200 Spending (Special Education) by 10% $4,100,000 $2,400,000 $1,700,000 $0.

-Includes Gifted Programs

Reduce Tuition Out $1,800,000 $0 $0 $1,800,000

- Aces, FBI, etc..

Move PTC to Existing Campus $700,000 $650,000 $500,000 $0

-Lease expires in June of this year; Current year operating on reduced staff

Outsource or Convert Custodial to Part Time Status $1,000,000 $500,000 $500,000

-Conversion will complete July 1st 2013

Move To Centralized Maintenance Model $1,000,000 $0 $500,000 $500,000

-High School Complete; Work Orders higher than anticipated

Adjust Five Day Schedules and Specials $1,250,000 $950,000 $0 $0

-Negative impact to K-2 Prep times

Retiree Health Care $0 $0 $0

-Policy change in effect July 1 2013

Total $9,850,000 $4,500,000 $3,200,000 $2,300,000

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FISCAL YEAR 2014 ASSUMPTIONS

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• ADM for funding purposes to increase 150 students

• Overall funding per student to remain the same– 2% increase to Base Support Level will not be

additional monies for FY 2014

Funding Planning Assumptions

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• Increases $2.15 M– ASRS to increase .4% or $400K– Healthcare to increase $1.0M – Utilities to increase $500K– Additional staffing to address K-2 prep time $250K

Expense Planning Assumptions

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• CSF broken into 3 funds– Fund 11

• Represents 20 % of the total CSF funding and 100% goes towards salary enhancements for certified employees

– Fund 12• Represents 40% of the total CSF funding and 100% goes towards certified

performance pay• District will continue to pay out in lump sum within 14 days of the end of the fiscal

year– Fund 13

• Represents 40% of the total CSF funding and can be used for salary enhancements for certified employees or for “menu items” such as professional development

• District will continue to use 100% towards salary enhancements for certified employees

• JLBC will provide budget for 2014 in March

Classroom Site Fund (CSF or Prop 301)

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In Millions 2010-2011 2011-2012 2012-2013 2013-2014 Projected Actual Projected Actual Projected Updated Projected

Funding M&O $185.60 $185.60 $184.70 $184.70 $180.90 $182.86 $183.60 CSF Carry Forward $3.70 $3.70 $1.10 $1.10 $0.00 $0.00 $0.00

CORL $9.50 $9.50 $9.50 $5.00 $4.50 $5.67 $5.67 Soft Cap $1.20 $1.20 $1.20 $0.80 $1.20 $1.20 $1.20

Contingency $7.80 $7.80 $17.10 $14.60 $7.44 $3.46 $0.09 EduJobs $6.80 $6.80 $0.00 $0.00 $0.00 $0.00 $0.00

Total $214.60 $214.60 $213.60 $206.20 $194.04 $193.19 $190.56

Expenses M&O $185.30 $185.30 $185.30 $188.86 $190.90 $188.60 $188.85 CORL $5.00 $5.00 $5.00 $4.98 $4.20 $3.30 $3.30

Soft Cap $0.00 $0.00 $5.40 $5.40 $1.10 $1.20 $1.20 EduJobs $3.50 $3.50 $1.50 $1.50 $ - $0.00 $0.00

ASRS $0.00 $0.00 $1.20 $1.20 $1.78 $0.00 $.40Health Care $0.00 $0.00 $0.80 $0.80 $2.00 $0.00 $1.00

Utilities $0.00 $0.00 $0.16 $0.00 $0.80 $0.00 $0.50 Prop Backfill $3.70 $4.70 $0.00 $0.00 $ - $0.00 $0.00

Total $197.50 $198.50 $199.36 $202.74 $200.78 $193.10 $195.25

Reductions Staffing $0.00 $0.00 $0.50 $0.00 $5.25 $0.00 $3.30 Career Ladders $0.00 $0.00 $1.60 $0.00 $1.60 $0.00 $1.60

Total $0.00 $0.00 $2.10 $0.00 $6.85 $0.00 $4.90

Carry Forward $17.10 $14.60 $16.34 $3.46 $0.11 $0.09 $0.20

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In Millions 2010-2011 2011-2012 2012-2013 2013-2014 Projected Actual Projected Actual Projected Updated Projected

Funding M&O $185.60 $185.60 $184.70 $184.70 $180.90 $182.86 $183.60 CSF Carry Forward $3.70 $3.70 $1.10 $1.10 $0.00 $0.00 $0.00

CORL $9.50 $9.50 $9.50 $5.00 $4.50 $5.67 $5.67 Soft Cap $1.20 $1.20 $1.20 $0.80 $1.20 $1.20 $1.20

Contingency $7.80 $7.80 $17.10 $14.60 $7.44 $7.66 $4.29 EduJobs $6.80 $6.80 $0.00 $0.00 $0.00 $0.00 $0.00

Gilsbar Expense Reversal $4.20

Total $214.60 $214.60 $213.60 $210.40 $194.04 $197.39 $194.76

Expenses M&O $185.30 $185.30 $185.30 $188.86 $190.90 $188.60 $188.85 CORL $5.00 $5.00 $5.00 $4.98 $4.20 $3.30 $3.30

Soft Cap $0.00 $0.00 $5.40 $5.40 $1.10 $1.20 $1.20 EduJobs $3.50 $3.50 $1.50 $1.50 $ - $0.00 $0.00

ASRS $0.00 $0.00 $1.20 $1.20 $1.78 $0.00 $0.40Health Care $0.00 $0.00 $0.80 $0.80 $2.00 $0.00 $1.00

Utilities $0.00 $0.00 $0.16 $0.00 $0.80 $0.00 $0.50 Prop Backfill $3.70 $4.70 $0.00 $0.00 $ - $0.00 $0.00

Total $197.50 $198.50 $199.36 $202.74 $200.78 $193.10 $195.25

Reductions Staffing $0.00 $0.00 $0.50 $0.00 $5.25 $0.00 $3.30 Career Ladders $0.00 $0.00 $1.60 $0.00 $1.60 $0.00 $1.60

Total $0.00 $0.00 $2.10 $0.00 $6.85 $0.00 $4.90

Carry Forward $17.10 $14.60 $16.34 $7.66 $0.11 $4.29 $4.40

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OPTIONS AND DISCUSSION FOR FISCAL YEAR 2014

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• Continue reductions in the 3-5 year plan• Collaboration Team overview and final rubric– Participation list– Red, yellow, green list– Process to band remaining green list– Verbal update on most recent Collaboration Team

meeting• Association Advisory recommendations

Reductions

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• 6 Certified Employees– 2 PEA, 2 CTA, 2 Non represented

• 3 Principals– 3 PPA

• 2 Secretaries– 1 High School, 1 Elementary

• 6 Classified– 1 DAC, 1 IMT, 1 Maintenance, 2 PESP

• Administrative Team– Full Council Team (Arts, HR, K-12, Curriculum, Procurement, CTE, IMT)

• Business Services, Deputy Superintendent and CFO facilitated and responded to questions from group’s discussions

Collaboration Team

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• Barbara Barcus• Rae Conelley• Isabel Contreras• Dawn Kennedy• Millie Kerber• Mark Moffatt• Mary Schuett• Vance Setka

Association Advisory Membership

Red List

• Increase Participation Fees• Increase Class Sizes• Four Day School Weeks• M&O Contributions to School Sites• Eliminate PE and Arts• DAC Closure• High School Closure• High School Course Reductions

Yellow List

• Need to establish and adhere to standards– Reading Specialists– SIS Coordinators – Assistant Principals– Band

Green List

• Close Elementary-$850K per school• Block Scheduling Adjustment-$3.0M• Relocate PTC-$500K• *Reduce Librarians to one per cluster $2.0M• *Reduce Nurses to one per cluster $1.5M• Restructure Pull out for Gifted-$1.0M• Reduce Elementary Guidance to one per cluster-$300K• Postage at HS-$250K• Transportation Efficiencies-$250K • Reductions at DAC-$300K

* Part of Original Plan in 2009

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• All teams were asked to place items on the green list into one of three bands– (A) representing the items, in no particular order, that

would be recommended as the items to meet the current structural deficit

– (B) representing the items, in no particular order, that would create an additional level of capacity for salary enhancements or future structural deficits

– (C) representing the items, in no particular order, that would create the final level of capacity for salary enhancements or future structural deficits

Banding Process

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Collaboration Team Summary

Budget Collaboration Team 12-18-12

Totals Rankings Savings

Proposed Reductions

Postage 6A 1 $ 250,000.00

Relocate PTC 5A, 1B 2 $ 500,000.00

Close Elementary 4A, 2B 3 $ 1,700,000.00

Reduce DAC 4A, 1B, 1C 4 $ 300,000.00

Transportation 3A, 1B, 2C 5 $ 250,000.00 $ 3,000,000.00 A

Block Scheduling 2A, 2B, 2C 6 $ 3,400,000.00

Restructure Gifted Pullout 1A, 3B, 1C 7 $ 1,000,000.00 $ 4,400,000.00 B

Reduce Nurse 3B, 3C 8 $ 1,500,000.00

Reduce Librarians 3B, 3C 9 $ 2,000,000.00

Elementary Guidance 1B, 5C 10 $ 300,000.00

HS AP 1B 11 $ 150,000.00 $ 3,950,000.00 C

$ 11,350,000.00

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VERBAL REPORT ON MOST RECENT COLLABORATION TEAM MEETING

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• Continue 3-5 year reduction plan– Additional $1.7 million– Finalize part time custodial and centralized

maintenance transition $500K– Relocate PTC $500K

• Collaboration Team Feedback– Reduce District level administrative/support staff– Reduce postage expense by 50%– Transportation reductions

Reductions for FY 2014

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Collaboration Team Summary

Budget Collaboration Team 12-18-12

Totals Rankings Savings

Proposed Reductions

Postage 6A 1 $ 250,000.00

Relocate PTC 5A, 1B 2 $ 500,000.00

Close Elementary 4A, 2B 3 $ 1,700,000.00

Reduce DAC 4A, 1B, 1C 4 $ 300,000.00

Transportation 3A, 1B, 2C 5 $ 250,000.00 $ 3,000,000.00 A

Block Scheduling 2A, 2B, 2C 6 $ 3,400,000.00

Restructure Gifted Pullout 1A, 3B, 1C 7 $ 1,000,000.00 $ 4,400,000.00 B

Reduce Nurse 3B, 3C 8 $ 1,500,000.00

Reduce Librarians 3B, 3C 9 $ 2,000,000.00

Elementary Guidance 1B, 5C 10 $ 300,000.00

HS AP 1B 11 $ 150,000.00 $ 3,950,000.00 C

$ 11,350,000.00

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REVENUE GENERATING IDEAS

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• Develop in house special services programs to reduce tuition out

• Civic center marketing• Gifts and donations• Selling of district property• Expand e-campus opportunities• Kinder Academy charges• Other fees

Revenue Generating Ideas

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DISCUSSION