SADDLEBACK VALLEY UNIFIED SCHOOL DISTRICT

BUDGET PLANNING

PLANNING for 2008

Review of Current Year

Governor’s State Budget Proposals

Projected 08/09 Budget

Reductions needed to maintain solvency

Timeline for implementation

Budget Prior to January

State’s Fiscal Woes

State budget shortfall projected to be $16 billion in 08/09

Revenues were overestimated; still growing by 2 - 3% but income tax, sales tax and corporate taxes all lower than expected

Expenses were never reduced to reflect reduced revenues

Structural deficit remains unless revenues increase and/or expenses decrease

Steps State Has Taken

Governor informed Legislature of problem - January 10th - presented his plan for recovery

Governor declared State of Fiscal Emergency - required Legislature to act by February 23rd on current year shortfall

Legislature enacted $2.3 B in current year reductions- February 15th - unspent funds, delaying payments and expense transfers

Still to Come...

Current year cuts averted but 08/09 shortfall has yet to be addressed

Governor and Legislative Analyst Office have both proposed reduction plans

Governor proposes “across the board” method

LAO proposes “targeted reductions” by priority

We must budget using proposal that provides the least revenue so as to not experience a shortfall.

Impact of Governor’s State Budget Proposals on SVUSD Revenue

Eliminate COLA (-4.94%) plus reduction in funding (-2.05%) = -$12,569,058

Reduce Special Ed funding -$1,975,940

Reduced funding for other programs i.e. Summer School, CSR, Transportation etc. -$1,628,183

SVUSD also has less students -$2,400,000 and cost increases -$726,819

TOTAL = -$19,300,000

Our Budget after State Reductions

Balanced Budget

A balanced budget is necessary for a school district to maintain local control

In order for SVUSD to preserve its fiscal status i.e. a district that can meet its financial obligations for the current year plus the following two years....reductions in expenses are required.

For SVUSD $19,300,000 in reductions must be made!

Our Budget after Reductions

Non School Reductions

1 Freezing expenses and hiring $1,300,000

2 Cost containment - utilities, contracts $826,065

3 Close IRC Curriculum Center $97,977

4 Reduced Services: Warehouse, Grounds, Printing, Maintenance, Clerical, Custodial, Technology $2,338,071

5 Withhold Deferred Maintenance Transfer $1,514,5016 Reduced Allocations for Materials $790,000

7 Reduced District Administration $1,017,087

8 Eliminate Bussing except for Spec. Ed. $1,449,867Sub total $9,333,568

more Non School Reductions

sub-total from previous page $9,333,568

10 Continue w/o Asst Supt- Instruction and Secretary $294,788

11 Reduce Special Ed. expenses $1,367,526

12 Rollback Mgmt/Confidential Salaries $370,691

** Total Non School Reductions $11,366,573

School Level Reductions

13 Eliminate classroom and choral music $940,871

14 Eliminate funding JV sports, International Baccalaureate, Field Studies and LAAP programs $866,631

15 Eliminate HS Librarians, Clerical and Activity Directors $1,155,712

16 Reduce Elem. and Intr. Asst. Principals and Psychologists $644,977

17 Shared Elementary Principals $394,65518 Reduce HS Asst Principals and Athletic Directors $597,40019 Reduce HS graduation requirements $1,324,70020 Change CSR gr.1 - 3 from Option 1 to Option 2 $2,243,391

Schools Total $8,168,337

Effect of Reductions

Since 85% of our budget goes toward employee salaries and benefits...

Over 240 positions eliminated

Layoff notices to 287 certificated and 100 classified employees

Timeline

Feb/March - consider holding forums to explain need for drastic reductions

on March 11th - Board action to authorize certificated layoffs -notices to staff by March 15th

on April 15th, Board action to authorize classified layoffs - notices to staff by April 28th

May 10th final layoff notices to certificated staff

May 14th- revised State revenues and Governor’s revised budget proposals

June 30th Legislature to pass final budget, District budget due.

What You Can Do

contact State legislators - fax or mail- see SVUSD website for information

attend a SVUSD budget forum

send questions and/or comments by email to budget.impact@svusd.org

Principals and website are best sources of accurate information