SADDLEBACK VALLEY UNIFIED SCHOOL DISTRICT

MAY REVISE for 2008-09

PLANNING for 2008

Governor’s Revised State Budget Proposals

Revised Reductions needed to maintain solvency

Timeline

State’s Fiscal WoesLeading Indicators still negative:

Job growth is flat

Personal Income projected lower

CPI was 2.6% now at 3.4%

State Credit Rating is 49th out of 50 states

State budget shortfall projected to be $17 billion; $500 for every person in California vs $2800 in Revenue

COLA has increased to 5.66% from 4.94% but still not funded

Deficit to Revenue Limit and Special Education have been removed

ALL other State funding receives no COLA and reduced funding (-5.66% plus -6.5% = -12.12%

Flexibility Options = no new revenue, bipartisan support?

May Revise for Education

Impact of Governor’s May Revise on SVUSD Revenue

Eliminate COLA (-4.94% 5.66%) plus reduction in funding (-2.05%) = -$12,569,058 -$8,144,064

Reduce Special Ed funding -$1,975,940 -$265,334

Reduced funding for other programs i.e. Summer School, CSR, Transportation etc. -$1,628,183

SVUSD also has less students -$2,400,000 and cost increases -$726,819

TOTAL = -$19,300,000 -$13,164,400

Adding $6.1 million

Preserves 90.5 fte.

Elementary Programs: Option One CSR in 1st grade, LAAP, Instrumental music and school site administration

Intermediate Programs: Assistant Principals

High School Programs: IB, 7 period day, some Librarians, Activity Directors and Assistant Principals

No rollback in salaries, District Receptionist DistrictDreceptioReceptionistpreservefiscal status i.e. a district that can meet its financial obligations for the current year plus the following two years....reductions in expenses are required.

For SVUSD $19,300,000 in reductions must be made!

Unfortunately...Still eliminating over 150 fte.

Loss of Choral music, some CSR, Librarians, Secretaries, Clerks, Custodians

Reduced Graduation requirements and reduced School Site funding

Major reductions in Centralized Services - IRC, Surplus Warehouse, Delivery, Print Shop, Textbooks...

Still to Come...Must adopt our budget by June 30th (mtgs. 6/10, 6/24)

Governor’s Revenue proposals (borrowing against Lottery income vs. increased sales tax) considered D.O.A.

Legislative Analyst proposes more current year reductions = “nearly impossible”

Predictions are for a protracted budget debate

“Consider the May Revise the floor not the ceiling” -Kevin Gordon, CEO School Innovations and Advocacy