Budget Update

Budget Study Session January 19, 2010

Revised January 20, 2010

Objectives Fiscal Solvency – Board Direction

• Employee salary rollbacks/furlough days

• Instructional program reduction December 8th staff recommendations

Other considerations

• Additional options

Critical Timelines

January 13, 2010 Governor’s Budget Conference

January 14, 2010 Leadership Team Meeting Budget Freeze

January 19, 2010 Budget Study Session – Board 4pm – 6pm

January 21, 2010 Negotiations

January 26, 2010 Community Forum

February 2, 2010 Board Meeting

February 5, 2010 Negotiations

February 16, 2010 Board Meeting

February 18, 2010 Negotiations

March 2, 2010 Board Meeting Budget Reductions

March 15, 2010 Preliminary Layoff Notices Deadline

March 16, 2010 Board Meeting 2nd Interim ReportDeadline

Qualified Certification Implications – 2nd Interim Report

Ed Code 42127.6 states that the county superintendent must act: (One of more of the following actions)

• Assign a fiscal expert (county expense)• Conduct a study of internal controls and assign

a consultant (75% district: 25% county expense)• Require additional financial reporting• Require the district to submit a plan of action• Withhold compensation of officials• Comment on collective bargaining proposals• Prevented from issuing non-voter approved debt

Proposition 98 and the Education Budget

Highlights of the Education Budget• Flat funding under Proposition 98 in 2010-11

• $1.5 billion in cuts targeted to district administration

• Personnel and administrative reforms

• Suspension of almost all education mandates Negative cost-of-living adjustment (COLA) produces no

new funding Deficit factor remains at record level Proposition 98 is still owed major sums

• $11.2 billion from past deficits

• More than $1 billion for unfunded mandates

• Don’t plan to collect this year Race to the Top (RTTT) is also a factor

Governor’s Budget Truth or Fiction?

The Governor Protects Education• Fiction – Prop 98 is being manipulated

There are no new cuts to Education• Fiction – California schools lose another 4.1% on average

There are no midyear cuts to Education• Truth

The Governor honors past agreements• Fiction – A promise to pay a portion of the $11.2B settlement of

Prop 98 Maintenance Factor has been delayed

• Fiction – $1B in Mandate Reimbursements owed from 2001-02 are still being deferred….even after a court ruling in favor of Education

Projected Impacts to IUSD

2009-10 2010-11 2011-12

1st Interim Report – projected shortfall

$0 ($14,732,333) ($37,270,683)

Governor’s Proposed Reductions:

Revenue Limit COLA ($638,281) $3,087,181

Administrative Cuts ($-201 per ADA) $0 ($5,345,605) ($5,395,855)

ARRA Stabilization Funding ($762,991) $0 $0

Tier III COLA $0 ($55,295) 261,928

District Issues:

Health Benefits $0 ($1,701,265) ($1,701,265)

Total Projected Shortfall – Revised ($762,991) ($22,472,779) ($41,018,684)

Projected vs. Actual Funding Per ADA

2007-08 2008-09 2009-10 2010-11$4,000

$5,000

$6,000

$7,000

$5,774

$6,103$6,364 $6,340

$5,774$5,624

$5,196 $5,176

Irvine Unified District

Projected Statu-tory COLA

Dollars

Per

AD

A

$15.1M loss in COLA$15.9M loss in baseline dollars

Loss of COLA

Loss of baseline dollars

($566)

($598)

Hot Topics Staff recommendation – Budget Reduction /

Adjustment List - December 8th Board Meeting

Budget Freeze

Tier III Discussion

Special Education

Critical Timeline

Common Message

Budget Reduction/AdjustmentStaff Recommendation

December 8, 2009

Budget Reduction/AdjustmentStaff Recommendation

January 19, 2010

Budget Freeze Effective Immediately

Includes:• Spending• Hiring (case by case basis)• Travel

Specifics to follow via email

Inform your staff

Tier III Professional Development

Focus on “Each Student”

Instructional Technology

21st Century Learning

School Safety

Special Education

2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09$25

$27

$29

$31

$33

$35

$37

$39

$41

$43

Special Ed Expenditures(in millions)

Increased Intervention Focus

Common Message Reductions will impact everyone and

everything

Board liaison communication to parents

Forward all questions to Ian

Encourage parents to check

• Budget Watch and NewsFlash

Anticipate additional District Meetings

Next Steps Community Forum

• Tuesday - January 26, 2010 7-10 pm