Upload
riotryan
View
383
Download
0
Embed Size (px)
Citation preview
2012Preliminary
February 9, 2011Presentation to Principals
1
ForecastBudget
FY
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
5
Why is this happening?
It’s called a Structural Deficit
Shortfall
• 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
4
What about the Capital Funds?
State is proposing to take a total of $300 million from CCSD’s
Debt Service Reserve
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
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
$ 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
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…
8
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
8
Our Strategy ?
Plan for theWorst
Work for theBest
Participate as a Team