Economic Crisis 2007-09 Biennium and Beyond

Update to the BoardFebruary 19, 2009

Best Educational Guess2008-09

One week ago—$381 cut per student

Today (according to Statesman Journal)—$150 cut per student

NSSD must be prepared for the worst case scenario—the District cannot end the year in the “red”

February 20th Forecast

Friday starting at 8:30 a.m. at the capitol

Expect state to have $880 million shortfall

Rumor—shortfall could be as high as $1 billion

As of Today, February 19, 2009

Expected Ending Fund Balance= $1,600,000

Add the four (4) day cut= $260,000

Expected Operating Fund Savings= $585,000

Total Revenue= $2,445,000

Revenue

$1,600,000

260,000

585,000

$2,445,000

Revenue Reductions from State

$381 per ADMw= ($1,050,000) SIF reduction= ($40,000) Property tax decrease=

($88,000) Less interest earnings=

($60,000) Drop in timber revenue=

($66,000) Drop in enrollment (41

students)= ($246,000)(-41 students = -11 ML, -15 SES, -15 SUB)

Total Reductions= ($1,550,000)

Reductions

($1,050,000)

($40,000)

($88,000)

($60,000)

($66,000)

($246,000)

($1,550,000)

Adjusted Ending Fund Balance

Total Revenue= $2,445,000

Total Reductions= ($1,550,000)

Adjusted Ending Fund Balance=

$895,000 Cut additional 2 days

to bring balance up to prepare for 2009-10 cuts= $130,000

Adjustments

$2,445,000

($1,550,000)

$895,000

$130,000

$1,025,000

Going Into 2009-10

Beginning fund balance= $1,025,000

Expected cut of 7.5% to funding (based on adjusted ADMw)= ($900,000)

Cost of living roll up (all groups)= ($655,000)

Minimum fund balance = ($650,000)

2009-10

$1,025,000

($900,000)

($655,000)

($650,000)

($1,180,000)

GAME PLAN

How do we get ($1,180,000)? 10% across the board cuts to all

employee groups

140 Teachers = 14114 Classified = 11.428.5 Non-Represented=2.85

Willingness to Lead by ExampleAdministrators, Confidential, Supervisory

13.9% Cut Administrators (11):

.60* FTE= $68,481 Cut 5 days= $23,635

Deans (2): Cut 1.0 FTE= $74,936 Cut 5 days= $2,246

Confidential/Supervisor/Directors (14): Cut 5 days= $15,445

Contract Employees (3 @ .50 FTE = 1.5 FTE):

Cut .50* FTE plus 2 days= $31,076 Superintendent (1 Essential Position):

Cut 5 days= $2,800 Freeze Cost of Living Raises= $97,413

Savings

$68,481

$23,635

$74,936

$2,246

$15,445

$31,076

$2,800

$97,413

$316,032

*Retirees

What does 10% look like?

140 Licensed—14 Cut= $939,764 5 known retirees = $407,576 9 lowest seniority (avg.)= $532,188

114 Classified—11.4 Cut= $289,092 0 known retirees 1.4 office staff (13)=$39,198 2.0 custodians (19)= $67,149 6.5 instructional support (68)= $144,210 1.5 food service (14)= $38,535

Reality CheckHow can union groups save positions?

Freeze Salary Roll Ups (Cost of Living and Steps)

Cut Days

Freeze Salary Roll UpsWhat does that look like?

Licensed Roll up costs= $436,882 Saves 7.0 out of 9.0 FTE 2 positions—Reduction In Force (RIF)

Classified Roll up costs= $120,091 Saves 5.0 out of 11.4 FTE 6.4 positions—Reduction In Force (RIF)

Cutting Days in 2009-10What does that look like?

Administrators, Supervisors, Directors, and Confidential—will cut 5 days for each 1.0 FTE, to save positions within their group as shown on the earlier worksheet

The licensed and classified groups will

be given information on how cutting days may also save additional positions within their groups

United Front

United as a team we can get through this crisis together and

be stronger in the end!