special meeting january 28, 2009

Special MeetingJanuary 28, 2009

Governor’s Proposal for the

2008-09 & 2009-10 State Budgetand K-12 Education Budget

And a Look at the TRUSD Budget

Rob BallAssociate Superintendent

Business Support Services

What Makes a Good State/District Budget?

A good State (and District) Budget:Represents a balance between the needs of the people and the resources of the State or DistrictFunds the State’s and District’s highest priorities at a satisfactory levelIs balanced in both the short and long termProvides adequate reserves to avoid crisesIs stable and sustainable once adoptedCan be executed as plannedProvides cash flow as needed through the yearAllows the State and District to meet its obligations as they accrue

By that definition, this Budget is a reactionary Budget that deals with the crisis du jourWe appreciate the difficulties faced in this State Budget, but nonetheless, it is not a good Budget and makes it impossible to create a good District budget

1

The Size and Duration of the Budget Shortfall

The projected State Budget shortfall is huge and continues to grow

The Administration’s current estimate is $40 billion over the two-year period of 2008-09 and 2009-10

A “normal” State Budget has expenditures of about $100 billion

So the shortfall equates to 40% of a single year Budget or 20% of the combined expenditures for two years – either way, a huge number

The annual State budget for unrestricted K-12 education is $40 billion

Thus far, no action has been taken to deal with the deficit

The Governor has vetoed the Legislature’s plan

The Legislature has rejected the Governor’s plan

The 2009-10 Governor’s Budget represents yet another proposal that has not yet been accepted

2

General Fund Revenue Collapse

Three-year shortfall totals $31.3 billion

$103.0 $102.6 $102.6

$87.5

$102.6

$86.3

$75.0

$80.0

$85.0

$90.0

$95.0

$100.0

$105.0

2007-08 2008-09 2009-10

Baseline Revenue Projections1

(In Billions) 2008-09 Budget Act2009-10 Governor's Budget

1 Excludes new tax proposalsSource: 2009-10 Governor's Budget

3

2008-09 Proposition 98 Guarantee 4

$50

$55

$60

($ in Billions)

2008 Budget Act 2009-10 Governor's Budget

$58.1 $58.1

MinimumGuarantee

No COLA$1.6 billion revenue limit cut

April deferralSpecial fund shift“Settle up” redesignation

MinimumGuarantee

$56.1 billion

$51.5 billion

Real Cut

Actual Spending

2008-09 and 2009-10 K-12 Revenue Limits

2008-09 Budget Act 2008-09 Proposed Governor's Budget 2009-10 Proposed Governor's Budget

Funded

Funded

Funded

4.565%

5.02%

5.66%

4.565%

2.515%

5.66%

0.68%

5.66%

Cut

COLACOLA

2009-10 COLA

2008-09 COLA

2008-09 Cut

2009-10 Cut

5

What a Difference Between First andSecond Interim!

First Interim Multiyear Projection(2008-09 Adopted Budget)

2008-09 2009-10 2010-11

Beginning Fund Balance $2,000,000 $2,000,000 $1,440,000

Revenues $20,000,000 $20,000,000 $20,605,157

Expenditures/Other Outgo $20,000,000 $20,560,000 $21,074,000

Ending Fund Balance $2,000,000 $1,440,000 $971,157

Unrestricted General Fund 2008-09

Happy Valley USD

6

What a Difference Between First andSecond Interim!

Second Interim Multiyear Projection(2009-10 Governor’s Proposal)

2008-09 2009-10 2010-11

Beginning Fund Balance $2,000,000 $1,104,367 $(692,366)

Revenues $19,104,367 $18,763,266 $18,763,266


Ending Fund Balance $1,104,367 ($692,366) ($3,003,100)

Difference ($895,633) ($2,132,366) ($3,974,257)

Unrestricted General Fund 2008-09 Happy Valley USD

Ending Fund Balance from First Interim

$2,000,000 $1,440,000 $971,157

7

Twin Rivers Budget for 2008-09 And Beyond

First Interim Multiyear Projection(2008-09 TRUSD Adopted Budget)

2008-09 2009-10 2010-11

Beginning Fund Balance $34,752,293 $9,120,061 ($9,688,336)

Revenues $266,242,080 $259,191,775 $263,897,658


Ending Fund Balance $9,120,061 ($9,688,336) ($25,379,373)

8

Negotiations – Shortened School Year

The Governor proposes allowing districts to shorten the school year from 180 days to 175 daysThis is clearly subject to local negotiations with bargaining unitsShould you do it?

For the district – YESIt could save about 2.5% of the district budgetBetter than cutting more programs or more layoffs

For the union – YES100% of the employees earn 98% of full salaryLost jobs don’t come back; lost days doTeachers’ unit retains membership

Treat savings as “one-time money” Sooner or later the year will be restored to 180 days

9

Step 1 – Solicit Category Suggestions from Throughout DistrictStep 2 – Survey Design

Using existing tools, no additional costStep 3 – Survey Outreach and Participation

electronic and hard copyStep 4 – Survey Analysis Step 5 – Survey Reporting

Ideas under considerationClear up misinformation

Twin Rivers Cost Savings Survey

Overview of Responses

Outreach2,258 invitationsWeb site postingeWagPrincipal mtg

ResponsesMore than 830 totalCompletely anonymous

Who Responded?

Employees 65.6% Community Members 11.0% Both 18.3% Other 3.3%

Question 1Please review the categories below and tell us how well you think our resources are being allocated in each area.

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100% Needs Review

Could Be Improved

No Opinion

Pretty Efficient

Very Efficient

Question 2A number of cost-saving initiatives have been suggested. Please review the list below and rate them according to your preference in cost-cutting measures.

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Libra

ry A

ccs

Class

Size

s

Salary

Fre

eze

School

Dy/YR

Field

Trips

Unfilled

Pos

Prof D

ev

Prof O

rg D

ues

Ret Inc

ent

Needs Review

Could Be Improved

No Opinion

Pretty Efficient

Very Efficient

Individual Suggestions

Question 1 Comments 267Question 2 Comments 287Number one area 634Second area 532Third area 398

Total Suggestions 2,118 or Comments

Next Steps

Culling and organizing of suggestions and commentsDepartment level review and categorizationReporting out of ideas under consideration and clearing misinformation

Questions?

special meeting january 28, 2009

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