STATE AND LOCAL BUDGET UPDATE&

INNOVATION CELEBRATION

2011 Manager’s SymposiumAugust 18, 2011

Today’s Topics

State and Local Budget UpdateCelebrating RUSD’s financial stability

Special Education InnovationsCelebrating MAA 2010-11

NIS InnovationsCelebrating Dashboard

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State Budget Update

It has been a thorny and winding journey from January’s initial proposals to an on-time state budget . . . From threatened losses of billions . . . To flat funding with troubling conditions

Financial and non-financial implications State did their best (?) to close the gap with no bipartisan

support. The level of intrusion into local fiscal decisions and setting

aside any measure of fiscal oversight invites future, deeper problems.

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State Budget Update

Proposition 98Proposition 98 minimum guarantee was

manipulated several ways, which ultimately lowered the amount that should have been provided to K-14 education by at least $4.9 billion.

The bottom line is that the Legislature’s disregard for the Proposition 98 guarantee and the suspension process renders the measure meaningless.

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State Budget Update

Trigger ReductionsDecember 15 DOF is required to determine

whether state revenues are coming in as forecast or are falling short.

If falling short (more than $1 billion), automatic spending reductions are triggered in the following order as of January 1:Between $1 billion and $2 billion:

$23 million to child care$30 million to community colleges$548 million to UC and CSU 5

State Budget Update

Trigger Reductions (continued)

More than $2 billion:Up to $1.5 billon (4%) reduction to the Revenue

Limit$248 million to Home-to-School Transportation$72 million (more) to community colleges

To mitigate the loss in K-12 funding, authorizes up to seven day (in addition to existing 5 days) reduction in school year.Subject to collective bargaining

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State Budget Update

Just for fun . . . the education “wall of debt” includes:Almost 20% deficit factor - $1.7 billionSales tax shift obligation - $2.1 billionCash deferrals – more than $9 billionProposition 98 settle up - $1.2 billionProposition 98 maintenance factor – at least $9.9

billionAll of the above are needed to bring school funding

back in line with statutory obligations7

RUSD Budget Update

While state revenue is flat (+ 91 cents per-ADA), other revenues are expectedly down due to one-time nature of federal stimulus funds from prior years.

Expenditures are actually up…No 2011-12 budget reductionsStep & Column $3.1 millionAugmentations $5.7 million

Driven by necessityNew Initiatives $1.1 million

All have funding sources8

RUSD Budget Update

One-time resources have covered prior year deficits and 2011-12 will be the first year where deficit spending is reflected, estimated at $21.7 million.

Prior year resources will cover this deficit and the projected 2012-13 deficit of $25.3 million.

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RUSD Budget Update

What really are our budget concerns? Economic climate is far from completing its turn up State gap and debt is far greater than acknowledged State politics continue to trump economics Matching recurring revenue to expenditures is

something of the past – RUSD is now significantly dependent on savings built up over the last couple of years

Flexibility with restricted funds continues to be an important element in our financial stability

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Celebrating Financial Stability

RUSD has a stable financial plan Our Board of Education has made good choices in the

midst of dire circumstances Our staff has been accommodating and supportive –

thank you! Our employees, and therefore our students, are

enjoying a stable 18 months with NO layoffs Our 2011-12 budget has no reductions and even a few

augmentations Our cash position remains strong despite deferrals

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Celebrating With Special Education

Medi-Cal Administrative Activities (MAA)Sharing your success!

One-time federal stimulus funds created opportunities to invest in improvements that lead to enhanced services and multi-year recurring savings.Starting Gate Non-Public SchoolServices to Students with Autism Improved IEP Process

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Celebrating MAA 10-11!

Thank you principals and your staff for your support of the MAA program.Your support generated a six-fold increase in

eligible claims for work your staff does each day in supporting students.

Outreach promoting available low cost health insurance for children resulted in significant increases in families obtaining health insurance coverage for children.

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Celebrating MAA 10-11!

CONGRATULATIONS! Schools / departments with 100% participation of

eligible MAA activities (at least two billable codes per quarter)

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HighgroveML King

Lake MathewsMagnolia

Health Services

RamonaRivera

Special EducationSpeech Pathologists

Taft

Celebrating MAA 10-11!

Estimated claims for MAA for 10-11 totaled $2.7 million Initially sharing $500,000 with schools /

departments that generated future revenue Individual site share is based on percentage of

site values to total generated funds“Checks” range from $28 to $18,113

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Celebrating MAA 10-11!

CONGRATULATIONS! First, Second and Third Place sites generating the

highest dollar value of MAA claims (amounts shown are prorated from the $500,000 being shared at this time)

All participating sites are receiving funds

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Highgrove $16,103

Elementary Schools Middle Schools High Schools

Kennedy $15,997

Lake Mathews $14,859

Gage $14,213

Earhart $13,088

Chemawa $10,328

Ramona $18,113

ML King $18,074

Poly $9,613

Celebrating MAA 10-11!

What can you do with your new found fortune? Why, spend it of course . . . on student activities

where you are able to reduce or eliminate the burden of lost “student fees” and/or parent-dependent donations.

For example . . .At elementary schools – use to support 6th Grade

Science CampAt middle schools – use to support choir, band or

athletic tournamentsAt high schools – options are unlimited (athletic

transportation, fine & performing arts programs, etc.)17

MAA For 11-12

Continue the great contribution you are making! Incentives for 11-12 participation are similar to 10-

11 with some expanded requirements and opportunities (including the opportunity to share in funds generated next year)

Minimum of three billable codesThree-times-a-year drawing within site for iPad2

Sites with 100% participation with at least three billable codesThree-times-a-year drawing for a participant lunch

catered by Chef Ryan18

Starting Gate NPS

Non-public schools provide specialized educational services to special needs students in cases where the District is unable to meet the needs of the student in a traditional setting.Contracts with over 12 NPS entitiesServices to 156 studentsCosts exceed $4.6 million annually

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Starting Gate NPS

Explored and now implemented a unique partnership opportunity to serve a sub-group of NPS students using an otherwise underutilized RUSD facility. Five-year agreement with a non-profit NPS provider Located at Grant Education Center Initially serving up to 168 RUSD and non-RUSD students

(up to 100 RUSD students) Middle and high school age students, expanding to

elementary age in the future

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Starting Gate NPS

Benefits of the NPS partnership include: Cost savings on per-student placement ($6,000+) Collaboration with NPS provider facilitates improved

oversight of NPS services Increase transition opportunities back to more traditional

settings Provides a basis for potential mental health services to

Special Education students (transition from County MH) Agreement facilitates a long-term opportunity to shift

services from third-party agency to RUSD-provided

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Services to Students with Autism

Traditionally spent $35-$55 per hour to provide support services to students with autism.

Created a new classification and trained District staff to provide these same services at significantly lower cost.

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Improved IEP Process

Improved the IEP process by providing:Web-based IEP program and training

Already increased efficiency in reporting to stateProvided each school with laptop, scanner and

projector to avoid making extensive copies of IEP paperwork to support IEP meetings

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Celebrating With NIS

Dashboard intelligence at your fingertips  Current year courses and teachers Full teacher grade book data for each class including

missing assignments Attendance data – summary and detail Grade point average and historical grade information CAHSEE and CST scores Graduation Credits – summary and detail by category

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