salem-keizer public schools 2012-13 budget message (draft)

8/2/2019 Salem-Keizer Public Schools 2012-13 Budget Message (draft)

1/23

Salem-Keizer Public Schools2012-13 Budget Message

All students graduate and are

prepared for a successful life.

Budget information available online at www.salemkeizer.org


2/23

10 Years of Funding History

03-04

$(60,000,000)

$(50,000,000)

$(40,000,000)

$(30,000,000)

$(20,000,000)

$(10,000,000)

$-

$10,000,000

$20,000,000

$30,000,000

2002-03

2003-04

2004-05

2005-06

2006-07

2007-08

2008-09

2009-10

2010-11

2011-12

2012-13

Current Service Level


3/23

Cuts: 2002-03 through 2005-06

03-04

$(40,000,000)

$(35,000,000)

$(30,000,000)

$(25,000,000)

$(20,000,000)

$(15,000,000)

$(10,000,000)

$(5,000,000)

$-

200

2-03

200

3-04

200

4-05

200

5-06


Direct

Instruction,

11%

Support toStudents, 7%

CentralAdministration,

6%

Concessions,4%

Reserves, 72%


4/23

Adds: 2006-07 through 2008-09

03-04

$-

$5,000,000

$10,000,000

$15,000,000

$20,000,000

$25,000,000

20

06-07

20

07-08

20

08-09


Direct

Instruction,

35%



13%

Purchase ofPortables, 11%

Reserves, 19%


5/23

$(50,000,000)

$(45,000,000)

$(40,000,000)

$(35,000,000)

$(30,000,000)

$(25,000,000)

$(20,000,000)

$(15,000,000)

$(10,000,000)

$(5,000,000)

$-

200

9-10

201

0-11

More Cuts: 2009-10 through 2010-11

03-04


DirectInstruction,

9% Support toStudents, 4%


8%

Concessions,10%

Reserves, 57%

Transfer toARRA funds,

12%


6/23

This Year: 2011-12

03-04

Direct

Instruction,

54%



5%

Concessions,20%

Reserves, 13%

$(60,000,000)

$(50,000,000)

$(40,000,000)

$(30,000,000)

$(20,000,000)

$(10,000,000)

$-

2011-

12



7/23

FTE changes over time

2002-06cut

2006-09added

2009-11cut

2011-12cut

Licensed Staff (64) 167 (12.5) (278)

Classified Staff (127) 69 (8) (139)

Supervisory (14.0) 8 (1.5) (9)

In the 2009-10 budget process Federal Stimulus Funds paid for31 FTE licensed staff, 15 classified staff and 1.5 supervisors.


8/23

Total Proposed Budget:

$578,990,853

General Fund

$343,423,734

59%

Capital Projects Fund*

$87,940,665

15%

Special Revenue

Funds*

$79,327,732

13%

Internal Service

Funds:

$22,115,014

4%

Debt Service - PERS*

$17,473,784

3%

Debt Service - General

Obligation Bonds*

$32,285,206

6%Enterprise Fund &

Trust Fund

$518,300


9/23

General Fund

$343,423,734

59%

Total General Fund: $343,423,734


10/23

Our current realityis a

$20.5 million shortfall

for next year


11/23

How is the shortfall determined?

For 2012-13, we estimate our current service levelcosts to be:

$363,455,805

Since this is the second year of the biennium we

already know what amount will be allocated by the

State of Oregon. We estimate our total revenue tobe:

$343,423,734 *

*Includes flow through revenue from property taxes, interest earnings and fees.


12/23

Here is the math:

Estimated revenue for 2012-13 $343,423,734

Costs to maintain current service levels $363,455,805

Add funding for technology $500,000

Total $363,955,805

Shortfall $ -20,532,071

How is the shortfall determined?


13/23

Determine what is needed to get the results

Understand what is legally mandated

Pay attention to the values of the community

Listen to feedback from staff

Ask the Budget Committee

Here is what we have been hearing

How do you decide what to cut?


14/23

From our staff

They worry that large classes impact their

ability to differentiate instruction effectively.They need more time to work with their

peers.

They feel the loss of support systems.

They would like to use technology so they can

be more efficient.

They miss their colleagues.



15/23

Areas of focus from Budget Committee discussions

Protect Class Sizes

Protect Programs For Students

Protect Technology and if possible increase funding

Reduce Ending Fund Balance/Contingency

Reduce Compensation Through ConcessionsReduce Instructional Programs



16/23


Salaries and

Benefits, 86%

Supplies &

Materials, 3%

Other, 3% Purchased

Services, 7%


17/23

What we can do What must be

negotiated

Raise class size Salary Adjustments

Eliminate or reduce

programs

Furlough Days

Reduce central services Benefit Packages



18/23

Addressing the shortfall.

Keeping in mind the factors that influence the decision-making around the $20.5 million shortfall

Results

Staff feedback

Community ValuesBudget Committee discussions

Mandates/Legal requirements

Contractual agreements

86% of funds are in people

Here are the recommendations to

balance the 2012-13 budget


19/23


Total shortfall: $ -20,532,071

Apply the following to offset the shortfall:

Reduce Ending Fund Balance to 3% $7,197,288

Adjust associated payroll costs $3,610,000(This includes less allocated for unemployment costs and an

adjustment based on historic spending patterns)

Remaining Shortfall $-9,724,783


20/23

Remaining Shortfall $-9,724,783

Apply the following to offset the shortfall:

Small School repurposing $801,739Reductions for supplies and materials

across the district $473,044

Reductions in Transportation $350,000

Reductions in contracted security services $100,000

Amount of shortfall remaining : $-8,000,000



21/23

Amount of shortfall remaining : $-8,000,000

Employee concessions and/or

additional cuts. $8,000,000

Balance $0



22/23

Reductions to the budget must be: Legally compliant

Sustainable

Operationally sound Support academic achievement for all students

Over a four year period of time, which includes this

budget recommendation, we have cut $125 million

from our budget and we must be prepared for

additional reductions in the next biennium (2013-15).

There are no easy cuts


23/23

Final Thoughts

All students graduate and are

prepared for a successful

life

salem-keizer public schools 2012-13 budget message (draft)

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