Santa Ana Unified School District Jane A Russo Superintendent by icecube


									                Santa Ana Unified School District
                                                                                Superintendent’s Office
                                                                           Jane A. Russo, Superintendent

SAUSD Responds to State Fiscal Crisis                                                               June 2008

Class Size Reduction Maintained
Through a concerted effort by the Board of Education and District administration, Santa Ana Unified
School District (SAUSD) will be able to maintain Class Size Reduction for students at critical grade
levels — grades K-3rd and 9th. We will also retain 560 teachers of the 573 facing lay-offs since March 15.
With a newly approved budget, the District will maintain solid financial status.

Earlier this year, District administration shared with the community the bleak financial outlook for
California public education as the Legislature and the Governor grappled with an initial estimated $14
billion budget deficit. As was
predicted, that figure has ballooned                   SAUSD 2008-09 Fiscal Year
to an astronomical $17 billion plus                  Expense Budget $487.2 million
shortfall. And at present the picture
is still unclear.
                                                                 11%         2%
Making Difficult Choices to                                                                          51%
Remain Financially Solid                        20%
When the Governor announced the
fiscal crisis facing the State in                                   13%
January, indicating that there would
be cuts across the board including
$360 million to education, it
compounded the need for SAUSD to
make more cuts on top of the $16.2
million that the Board of Education                     Certificated Salaries $247.4 million
had already authorized in late 2007                     Classified Salaries $63.3 million
due to enrollment loss.                                 Employee Benefits $95.6 million
                                                        Books and Supplies $19.4 million
This meant the Board of Education                       Services and Other Operating Expenditures $51.8 million
and District staff needed to once                       All Other $9.7 million
again prioritize programs and
services, while determining those
areas for cutting back. The resulting effect — the District targeted an additional $13.3 million in cuts to
the following areas:
    • Centralized Support Services (District Office), $2.2 million
    • Special Education, $1.3 million
    • School site allocation-based program, $3.8 million
    • Reduction of Class Size Reduction encroachment to General Fund, $6 million.

                                                 BOARD OF EDUCATION
                         José Alfredo Hernández, President • Rob Richardson, Vice President
                 Audrey Yamagata-Noji, Ph.D., Clerk • Rosemarie Avila, Member • John Palacio, Member
                          1601 E. Chestnut Ave., Santa Ana, CA 92701, (714) 558-5501
SAUSD Budget Update, June 2008

After adding the additional cuts mandated by the Governor to the reductions due to declining enrollment,
the Board approved $29.5 million in reductions for 2008-09 and adopted a $487 million budget for the
2008-09 school year prior to the June 30, 2008 deadline. (By law, all school districts are required to
present a three-year multi-projection to the State and adopt a balanced budget by the end of the fiscal

Although the District has adopted a budget, we will be operating at a $5 million deficit for the 2008-09
school year. Despite this, however, the District will meet the State’s mandated reserves of 2%.

Outlook Still Uncertain
                                                           Budget Snapshot
We are not out of the woods by any
                                            ► SAUSD’s operating budget consists of two
stretch. That’s because things may
                                              types of funding:
change once the Legislature approves
                                                     o   General Fund (unrestricted dollars
a State budget, which could be as late
                                                         which can be spent on employee
as September or October. Therefore,                      salaries and benefits, equipment, and
the Board of Education and District                      operational items such as utilities).
administration will remain committed                 o   Categorical Funds (allocated toward
and focused on monitoring the budget                     textbooks and instructional material,
ready to make any necessary and                          and specific state or federally funded
appropriate adjustments. We will learn                   programs such as after-school
                                                         activities, English learner support and
whether deeper cuts will be needed
                                                         staff development).
after the State’s position becomes
                                            ► SAUSD receives income from the State
clearer and the Legislature approves a
budget that could include a tax
                                                     o   Enrollment (which has declined by
increase and consideration of a lottery
                                                         approximately 7,000 since 2003)
bond to be put forth to voters in
                                                     o   Average Daily Attendance (ADA)
                                                     o   Other State resources
Nevertheless, it is incumbent upon the      ► Positive Highlights of 2008-09 Budget
Santa Ana Board of Education to do                   o   Able to keep Class Size Reduction
what’s in the best interest of the school            o   Rescinded 560 of 573 teacher lay-off
district. This is the charge with which                  notices
the public entrusted the members. And                o   District remains financially solid
it is exactly what the Board is doing –             For more info on the Budget log on to
exercising prudent judgment in                       
ensuring SAUSD’s solvency and well-

We appreciate and seek your support and understanding as we implement these tough budget decisions.
Our highest priority has been to maintain quality educational and academic programs for our students. In
SAUSD, we are committed to continuing to not only doing things right, but in doing the right things for
the benefit of all our students and staff.

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