Impact of Governor’s Proposal on MDUSD Budget
Presented by Gary McHenry, Superintendent March 2008
Mid-Year Actions Under Proposition 58
The Governor has declared a “fiscal emergency” under Proposition 58, triggering the following:
The Legislature is now called into Special Session to deal with the Budget crisis The Governor must submit a plan to address the Budget imbalance The Legislature must adopt a plan to address the problem by March 15 (that is, within 45 days of the declaration) otherwise it may not act on any other legislation and it may not adjourn
The plan must be adopted by a two-thirds vote of the Legislature, allowing the savings to take effect immediately
Source: SSC, January 2008
State 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!
Source: SSC, January 2008
2008-09 K-12 Revenue Limits
4.94% Inflation Increase 6.99% Deficit 2.4% Cut for Average District 2008-09 Funded Revenue Limit 2008-09 Computed Base Revenue Limit 2008-09 Base Revenue Limit After Deficit
2007-08 Funded Revenue Limit*
2007-08 Base Revenue Limit
Caution: Impact of deficit depends on district-specific revenue limit
*Assumes mid-year cuts are absorbed by other means Source: SSC, January 2008
Unrestricted Revenue Limit with Fully Funded COLAs
Revenue Limit with Fully Funded COLAs Current Operating 2007-08 Revenue Limit 2008-09 Revenue Limit with 4.94% COLA 2009-10 Revenue Limit with 3.0% COLA
$195,636,102
$204,384,238
$210,129,601
Revenue Limit with Governor’s Proposal 2008-09 Revenue Limit with Net Funding of -2.5% $190,097,779 ($14,286,458) 2009-10 Revenue Limit with 3% COLA $195,441,542 ($14,688,059)
Total $ Loss for 2008-09 and 2009-10
($28,974,517)
Source: MDUSD Fiscal Services, March 2008
Updated MDUSD Revenue Projections
(Numbers in Millions)
2007-08
January 8 Governor’s Budget Loss 292.1 291.1 1.0
2008-09
301.7 284.4 17.3
2009-10
307.6 291.2 16.4
MDUSD Budget: Money is in job positions
Funding Source Unit Total # FTE Gen. Purpose 31.75 221.66 188.73 1479.01 23.10 Special Ed. 235.33 11.88 2.62 314.20 9.30 Categorical 190.24 31.26 8.79 105.47 7.55 133.11 Restricted Main/Trans Cost of 1% CSEA Local One, CST Local One, M&O MDEA MDSPA 457.33 272.35 333.26 1898.68 32.40 $284,750 $134,321 $186,092 $1,311,912 $28,785
Managers
Confidential Supervisory Total
197.46
15.00 17.00 3223.48
145.57
14.00 17.00 2120.82
17.24
1.00
25.13
7.51
$219,106
$10,210 $24,013
591.57
360.89
148.17
$2,199,189
MDUSD Updated Unappropriated Balance
Includes Board Reductions through February 25, 2008
(No salary increases)
2007-2008 2008-2009 2009-2010
$ 8,494,916 $ 2,691,116 ($ 3,530,112)
Employee Units
CSEA = California School Employees Association Classroom Assistants, Campus Supervisors, Licensed Vocational Nurses DMA = Diablo Managers Association Principals, vice principals, student services coordinators, curriculum and program specialists, directors, classified managers, Confidential staff Local One, CST = Clerical, Secretarial, Technical School secretaries, registrars, attendance clerks, personnel assistants, accountants, computer operators
Local One, M&O = Maintenance and Operations Craftsmen, painters, carpenters, mechanics, custodians, landscapers, bus drivers
MDEA = Mt. Diablo Education Association Teachers, librarians, nurses, speech pathologists
MDSPA = Mt. Diablo School Psychologists Association School psychologists
Supervisory Custodial and Food Service supervisors
How do we begin?
√ Start with criteria
Criteria for Budget Reductions
I recommend the following priority order: 1. 2. 3. Insure campuses are safe for students and staff Honor collective bargaining contracts and comply with local, state and federal mandates Maintain programs for students Analyze program effectiveness Eliminate programs that are ineffective Maintain programs that are effective Protect as many positions as possible Honor our commitments and our promises to the public e.g. Measure A and Measure C, Kindergarten Class Size Reduction Affect expenditure reductions across all programs Health and Safety – supervision of students Cleanliness Shift expenditures to grants and other funding source where possible
4. 5. 6.
7.
Steps: Balancing the Budget
Determine the amount to be reduced
Apply the methodology Comply with budget reduction criteria
Methodology
Amount to be reduced Cost of 1% for all units
= Reduction Factor
Cost of 1% x Reduction Factor = Amount to be reduced/unit Cost per Unit Average cost per position = # of Positions to be Reduced
Methodology
Example: Impact of $14 Million on MDEA unit
Amount to be reduced Cost of 1% for all units
= Reduction Factor
$14,000,000 $ 2,199,189 = 6.4
$1,311,912 x 6.4 = $8,396,236 $8,396,236 $55,290
Cost of 1% for unit x Reduction Factor = Amount to be reduced/unit
Cost per Unit Average cost per position
= # of Positions to be Reduced
= 152 positions
Amount to be reduced: $14 million
UNIT CSEA LOCAL ONE, CST LOCAL ONE, M&O MDEA MDSPA DMA, CONFIDENTIAL, SUPERVISORY TOTAL UNIT CSEA LOCAL ONE, CST LOCAL ONE, M & O MDEA MDSPA DMA, CONFIDENTIAL, SUPERVISORY TOTAL COST OF 1% $ 284,750 134,321 186,092 1,311,912 28,785 253,329 $2,199,189 COST PER UNIT $1,822,400 859,654 1,190,988 8,396,236 184,224 1,621,305 $14,074,807 AVERAGE COST/POSITION $ 33,000 55,420 57,845 55,290 96,621 100,000 REDUCTION FACTOR 6.4 6.4 6.4 6.4 6.4 6.4 AMOUNT $1,822,400 859,654 1,190,988 8,396,236 184,224 1,621,305 $14,074,807 # OF POSITIONS 55 16 21 152 2 16
Example: $12 million
UNIT CSEA LOCAL ONE, CST LOCAL ONE, M&O MDEA MDSPA DMA, CONFIDENTIAL, SUPERVISORY TOTAL UNIT CSEA LOCAL ONE, CST LOCAL ONE, M & O MDEA MDSPA DMA, CONFIDENTIAL, SUPERVISORY TOTAL COST OF 1% $ 284,750 134,321 186,092 1,311,912 28,785 253,329 $2,199,189 COST PER UNIT $1,551,88 732,050 1,014,202 7,149,921 156,878 1,380,064 $11,985,582 AVERAGE COST/POSITION $ 33,000 55,420 57,485 55,290 96,621 100,000 REDUCTION FACTOR 5.45 5.45 5.45 5.45 5.45 5.45 AMOUNT $1,551,888 732,050 1,014,202 7,149,921 156,878 1,380,643 $11,985,582 # OF POSITIONS 47 13.2 17.6 129 1.6 13.8
Example: $10 million
UNIT CSEA LOCAL ONE, CST LOCAL ONE, M&O COST OF 1% $284,750 134,321 186,092 REDUCTION FACTOR 4.54 4.54 4.54 AMOUNT $1,292,765 609,817 844,858
MDEA
MDSPA DMA, CONFIDENTIAL, SUPERVISORY TOTAL
1,311,912
28,785 253,329 $2,199,189 COST PER UNIT $1,292,765 609,817 844,858 5,956,080
4.54
4.54 4.54
5,956,080
130,684 1,150,114 $9,984,317
UNIT
CSEA LOCAL ONE, CST LOCAL ONE, M & O MDEA
AVERAGE COST/POSITION $33,000 55,420 57,845 55,290
# OF POSITIONS 39 11 14.5 107
MDSPA
DMA, CONFIDENTIAL, SUPERVISORY TOTAL
130,684
1,150,114 $9,984,317
96,621
100,000
1.3
11.4
Example: $8 million
UNIT CSEA LOCAL ONE, CST LOCAL ONE, M&O MDEA MDSPA DMA, CONFIDENTIAL, SUPERVISORY TOTAL COST OF 1% $ 284,750 134,321 186,092 1,311,912 28,785 253,329 $2,199,189 COST PER UNIT $1,036,490 488,929 677,375 4,775,360 AVERAGE COST/POSITION $33,000 55,420 57,845 55,290 REDUCTION FACTOR 3.64 3.64 3.64 3.64 3.64 3.64 AMOUNT $1,036,490 488,929 677,375 4,775,360 104,778 922,118 $8,005,049 # OF POSITIONS 31.4 9.0 12 86
UNIT
CSEA LOCAL ONE, CST LOCAL ONE, M & O MDEA
MDSPA
DMA, CONFIDENTIAL, SUPERVISORY TOTAL
104,778
922,118 $8,005,049
96,621
100,000
1.1
9.2
How do we begin? Some Critical Questions:
How much is budgeted in particular departments?
What programs and services are provided? Which programs and services are legally required?
Departments Affected
District Operations Educational Services
Alternative Education Curriculum and Instruction Student Services Special Education School Sites
Fiscal Services Maintenance and Operations
Custodial
and Landscape
Personnel Research and Evaluation Technology and Information Services
Possible Programs/Services Impacted
Athletics Budget Development Campus Cleanliness Campus Safety Class Size Reduction Clerical Support Curriculum Development Recruitment, Hiring, Retention School Site Support Services to Students with Special Needs Student Services Testing and Assessment Textbook Adoption Visual and Performing Arts
Review of General Fund Budget
ALTERNATIVE EDUCATION
Program
General Purpose Special Education Special Projects Total
Budget
$4,255,146.32 909,204.56 8,183,502.16 $13,347,583.04
FTE
22.572 1.067 19.616 43.255
ALTERNATIVE EDUCATION SERVICES
Continuation High Schools Home Study Independent Study Small but Necessary High Schools Special Education Extended Year Program Spring/Summer Intervention Transitional Learning Programs Work Experience
Review of General Fund Budget
CURRICULUM AND INSTRUCTION Budget $ 5,513,939.00 FTE 66.51
Program General Purpose
Special Projects
Total
19,836,459.36
$25,350,398.36
98.32
164.83
CURRICULUM AND INSTRUCTION SERVICES
4th and 5th grade PE prep All categorical programs, e.g. GATE, Title I Beginning Teacher Support, Peer Assistance and Review Curriculum development Elementary instrumental and choral music English as a second language Instructional administration Library processing and services Principals’ training School Improvement Teacher training and professional development Textbook adoption
Review of General Fund Budget
PERSONNEL SERVICES
Budget $5,522,003.95 FTE 17.000
Program General Purpose
Special Projects
Total
1,439,662.26
$6,961,666.21
27.729
44.279
PERSONNEL SERVICES
Certificated and Classified Employee Recruitment Certificated and Classified Substitutes Classified Employee Training and Professional Development Credential and No Child Left Behind (NCLB) Monitoring and Compliance Employment Services Labor Relations and Contract Management Negotiations Personnel Services Post Retirement Contracts Professional Development
Review of General Fund Budget
RESEARCH AND EVALUATION
Budget $497,084.22 FTE 4.75
Program General Purpose
Special Projects
Total
175,467.71
$672,551.93 4.75
RESEARCH AND EVALUATION
Enrollment Projections Facilities Study Program Evaluation Research and Evaluation School Boundaries Testing and Assessment
Review of General Fund Budget
STUDENT SERVICES
Program
General Purpose Special Education Special Projects Total
Budget
$2,407,711.44 52,361.41 4,849,479.47 $7,309,552.32
FTE
24.725
46.465 71.190
STUDENT SERVICES
AB1113 School Safety and Violence Attendance Accounting Career Center Child Welfare and Attendance Community Day School District Wide Home and Hospital Drop Out Prevention and Recovery Foster Youth Health and Nursing High School Counseling and Supplemental Counseling Opportunity Program Safe and Drug Free Schools Saturday School Services for Section 504 Students Student Services Suspensions and Expulsions Title I Neglected Title IV
Review of General Fund Budget
SPECIAL EDUCATION
Program
General Purpose Special Education $
Budget
70,913.74
FTE
1.0 600.02
57,494,265.32
Special Projects
Total
8,077,531.06
$65,642,710.12
126.63
727.65
SPECIAL EDUCATION SERVICES
Assessment services Assistive technology Behavioral services Counseling Free and appropriate public education (FAPE) In-house Mental Health Collaborative and mental health services Managing students’ Individual Education Plans Non-public schools and agencies Nursing and psychological services Occupational and physical therapy Parent Liaison services Preschool for students with disabilities Special Education Consent Decree Speech language therapy Students with special needs Teaching Testing and assessment
Review of General Fund Budget
MAINTENANCE AND OPERATIONS
Program
General Purpose Special Projects
Budget
$21,138,513.94 764,746.19
FTE
191.20 0.5
Restricted Maintenance
and Transportation Total 12,993,981.20 $34,897,241.43 149.38 341.08
MAINTENANCE AND OPERATIONS SERVICES
ADA compliance Building security Building trades Capital outlay and facility work Custodial administration Facility acquisition and construction Heating, ventilation, air conditioning Landscape Maintenance and repair Measure A construction Measure C construction Mechanical trades Mobile maintenance Playground equipment Plumbing and electrical Restroom renovation Transportation