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2012 Preliminary February 9, 2011 Presentation to Principals 1 Forecast Budget FY

CCSD - Preliminary FY2012 Budget Forecast

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Page 1: CCSD - Preliminary  FY2012 Budget Forecast

2012Preliminary

February 9, 2011Presentation to Principals

1

ForecastBudget

FY

Page 2: CCSD - Preliminary  FY2012 Budget Forecast

Shortfall in state/local funding

$250 to $275 million

2

What are we talking about?

Loss of Federal Funds939 positions

or at least $870 per student

ARRA (Title I, IDEA), EduJobs

Page 3: CCSD - Preliminary  FY2012 Budget Forecast

5

Why is this happening?

It’s called a Structural Deficit

Shortfall

Page 4: CCSD - Preliminary  FY2012 Budget Forecast

• 20% of central office staff• Block schedule & AVID funding• School staffing – 3%• Class size increase: Grades 1-3 (by 2)

• Administrative staffing• Textbook/supply budgets

3

What has already been cut?

A total of $375 million has been cutand 1,734 positions eliminated

Since 2007

Page 5: CCSD - Preliminary  FY2012 Budget Forecast

4

What about the Capital Funds?

State is proposing to take a total of $300 million from CCSD’s

Debt Service Reserve

Page 6: CCSD - Preliminary  FY2012 Budget Forecast

4

What would that mean?• The debt service property tax rate ($0.5534) will need

to increase to cover future debt service costs• And/or CCSD will need to push debt service costs out

into the long-term future (which will cost more in interest payments)

• $150 million per year of the state’s ‘guaranteed’funding is coming from CCSD’s capital funds

• This is a one-time, stop-gap measure that will leave a big financial ‘hole” to fill in the next biennium

• Goes against promises made to voters in 1998

State law would need to be changed to allow this

Page 7: CCSD - Preliminary  FY2012 Budget Forecast

State Funds - $196 million

Debt Service Funds + $150 million

Loss of room tax - $35 million

Property tax decrease - $48 million

Fund balance used up - $62 million

Employee Contractual provisions - $68 million(step, increments, PERS)

6

Why are we short $250-$275 million?

NOTE: This assumes no new revenue sources are identified

Page 8: CCSD - Preliminary  FY2012 Budget Forecast

$ 250-275 million =

7

How bad is it?

14 more students per classor 33 less days in the year

or 16% cut in pay/benefitsor 95% of central officeA reduction of as many as 3,800 positions

Page 9: CCSD - Preliminary  FY2012 Budget Forecast

7

How can you help?

What you have had to do at your school to deal with cuts made

already?What would the impact be if your

staffing was reduced again?

Tell us…

Page 10: CCSD - Preliminary  FY2012 Budget Forecast

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When will we know?Tentative budget must be adopted in April & the final budget in May

Reduction-in-force processmust begin in April

State funding will likely not be known until June

Negotiated agreements roll forward until bargained

Page 11: CCSD - Preliminary  FY2012 Budget Forecast

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Our Strategy ?

Plan for theWorst

Work for theBest

Participate as a Team