Governor�s Proposals for the 2008-09 State Budget

Governor’s Proposals for the 2008-09 State Budget HOW DOES IT IMPACT PLEASANT VALLEY SCHOOL DISTRICT’S BUDGET What is the Budget Crisis ?  Due to the lagging economy , State officials are predicting a $4 billion shortfall this year which is estimated to grow to $14 billion by next year (2008/09).  To deal with this, the State budget forecast includes reducing the amount of funds school districts will receive. In January, the Governor released a proposed budget for 2008/09 that included cuts to most State program, but hits education particularly hard. State Budget Crisis  Districts statewide have been asked to cut 10% of their budgets across the board which is about $4.4 billion in cuts.  Equivalent to:     Shutting down every school in the state for about a month Laying off 107,000 teachers Laying off 137,000 education support professionals Cutting $24,000 from every classroom in the state. Governor’s Approach to 2008-09  Governor proposes decreasing the cost-of-living allowance by 2.4%  It was anticipated to be increased by 4% next year.  He also proposes 6.5% adjustment to special programs such as Special Education , Transportation and Class Size Reduction Budget Summary  Compared with full funding for COLA and growth for programs in 2008-09, the Governor’s proposal cuts K-12 education by $4.4 billion  These cuts average about $740 per ADA from 2008-09 full funding levels Saying it another way . . . Governor’s proposal is for 2008-09 funding to be about $1.8 billion less than current year, equal to average cuts of:  $129 per ADA from Revenue Limits  $30 per ADA from Special Education  $146 per ADA from Categoricals  Total loss of about $305 per ADA from current year levels! What does this mean to PVSD?  Unrestricted General Fund:      Base Revenue Limit K-3 Class Size Reduction Special Education $821,874 $193,317 $230,000 Transportation Other Categoricals  $ 22,750 $30,500 $1,298,441 Total  In addition a loss of $ 253,000 of non encroaching categoricals. What is total effect?  Declining Enrollment loss of Revenue $2,163,395  08/09 new expenses  Reduction in Teachers  Governor’s Budget Proposal TOTAL SHORTFALL FOR PVSD Add in 07/08 reserves/surplus $ 832,538 ($720,600) $1,298,441 $3,573,774 $1,837,957  COST AVOIDANCES NEEDED $1,735,817 What does this mean to PVSD ?  About 70% of districts revenue are for general purposes ( Unrestricted) and 30% comes from categorical programs (Restricted).  General purpose Funds are used to pay all employee salaries and benefits ( Teachers Administrators, and Support staff), supplies, textbooks, maintenance, and other expenses that are incurred for the regular instruction of the students.  The Cost avoidances will need to come from the general purpose funds that we refer to as Unrestricted. funds can be spent.  Categorical funds are received by the District with specific criteria on how the Revenue Sources GENERAL FUND: Federal, State, Local, Other  State Revenue Limit is the $  State Revenue Llmit 70% Other State 15%  Local 10% Federal 5% amount per ADA district receives each year ADA = Average Daily Attendance. It is the average number of pupils attending school over the school COLA stands for Cost- of- Living Allowance. The cost-of-living adjustment for school districts is based upon a calculation of governmental expenditure price increases from one year to the next. For Unrestricted Uses s For Restricted Uses Typical Expenditures People (85-90%), Services & Things (10-15%) From Unrestricted Funds From Restricted Funds         Core instructional programs Elective Programs Salaries and benefits Instructional Materials Supplies Equipment, Technology Discretionary Uses Extra, Co-curricular Programs  Categorical (School Library      Grant, EIA, GATE, etc.) Class Size Reduction * Instructional Materials Special Education * Transportation * Other * = General Fund must pay some HOW DO WE SPEND OUR MONEY ?  Teachers (Includes Regular & Special Ed) 26,754,749 9,742,707 3,656,379 1,075,912 56% 20% 8% 2%  Classified  Administration  Instructional Support Staff (Counselors, Nurses Psychologists)  Non Personnel Expenses  4,404,473 47,561,408 13% 100% TOTAL HOW DO WE SPEND OUR MONEY ? By Function  District Office (Superintendent, Business Services, Personnel, Instruction) $ 3,130,169  District Level Support (Utilities, Maintenance and Operations, Technology, Transportation, Warehouse , Copy Center, Special Ed services, Misc.) $15,513,939  Schools $29,017,300 What are next steps in Preparing PVSD Budget?  Currently must use Governor’s proposal from January, 2008.  District striving to identify “Cost Avoidances” with minimal impact on classroom instruction.  Town Hall Meetings April 14 and April 16th  April 23, 2008 - Budget Priority Meeting – prioritize suggested Cost Avoidances for Board Consideration  May, 2008 - Board approval of Cost Avoidances and preparation of 2008/09 Adopted Budget  June 19, 2008 - Public Hearing on Adopted Budget  June 19, 2008 – Board Approval of 2008/09 Adopted Budget  Once State Budget approved by Legislature and Governor – Districts have 45 days to revise based on final State Budget How Likely is Governor’s Budget will be in place by July 1st?  The Governor submits the Governor's Budget to the Legislature in January, it is revised in May, and the fiscal year begins July 1.  This year, estimate is Legislature probably will not agree on Budget until late August.  This means District must approve and adopt budget based on the current assumptions. No new estimates until the May Revise is published in late May.  Until then we must present a budget based on the reductions in the January Initial Budget Forecast. What can you do to help?  Stay informed of public policy discussions leading up to the final adoption of the state budget by the legislature.  Email the Governor and Your Elected Officials Find Your Legislator: http://www.leginfo.ca.gov/yourleg.html  Participate in your PTA INFORMATION RESOURCES  California State PTA  http://www.capta.org/ http://www.protectourstudents.org/ http://californiaschoolfinance.org/tabid/182/Default.aspxAcsa http://www.cbp.org/  Education Coalition   Edsource Analysis   California Budget Project   Department of Finance  http://www.dof.ca.gov/ Find Your Legislator: http://www.leginfo.ca.gov/yourleg.html QUESTIONS???