Follow The Money

The CUSD Budget

Data Sources: OMB, EdSource, EdData,Alliance for Excellent Education, CUSD

Topics to be Covered

Why is education valuable to our community?

What are the federal, state, and local sources of revenue to CUSD?

What are the expenses of CUSD?

What is being done to resolve the CUSD budget cuts?

What can you do?

The Value of Education

“Upon the education of this country, the fate of this country depends”

Education provides value to• our Country• our Community• each Individual

The Big Picture – Budgeted for Education

Federal and State Education Budgets

In Billions of Dollars

The Big Picture – Budgeted for Education

CUSD Budget

In Millions of Dollars

Sources of Funding for a California School District

Restricted vs. Unrestricted Revenue

Restricted (categorical) funds– Can only be spent on designated programs

Example: special education

Unrestricted funds – Can be spent on general expenses

Example: teacher salaries

Federal Funding Sources

Background on State School Funding

1971 - Serrano vs. Priest1978 - Proposition 131980 - Proposition 41988 - Proposition 981990 - Proposition 1112000 - Proposition 20

State Funding ComparisonProperty taxes to Education

1978 = 66%

2007 = 23.1%

Budgeted for Education20

06-07 39.5% $67.1 billion 20

10-11 31% $37 billion

State Budget

The Scope of CUSD

Cities: 7Schools: 58Students: 51,000Teachers: 2,454Support employees: 1,949

Total Budget: $360 million

Comparisons - CUSDCommunity

1980 2009Population 237,288 398,439# Homes 41,103 137,189Average Price of Homes

$168,000 $500,000+

Average Household Income

??? $85,867

Diversity of students

White 64.9%Hispanic 18.7%Asian 5.3%Other 11.1%

White 67.4%Hispanic 18.0%Asian 5.2%Other 9.8%

Comparisons - CUSDSchools

1980 2009

# of Schools 28 58# of Students 24,153 51,512

# of Teachers 570 2,231Class Size ??? Kindergarten 31

First Grade 262nd-5th Grade 32Middle School 32.5High School 34.5

Comparisons - CUSD

School District

1980 1980CUSD Budget $42 million $360 millionPrograms Buses

LibrariesSpeechNursesScience LabsMusicSpecial Education

Computer LabsLibrariesSpeechMusicRecess MonitorsIntl BaccalaureateSpecial Education

Revenue Sources to CUSD

Budget: $360 Million

State Funds 88% ($315.9 million) Federal funds 8.5% ($30.6 million) Local Sources 3.5% ($13.5 million)

CUSD Budget – 2009/10

Education – $ Per Student

2006–07 Expenditures per K–12 Pupil

U.S Avg. California Rank CUSD

$9,565 $9,124 24 $5,531

Teacher to student ratio: ranked 49

CUSD - $ Per Student

2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11

Year

Local Funding Sources

2009: $3,708,951– Educational Foundations– Booster Clubs– PTA groups– Business Donations– Personal Donations

Other: Leases and other sources

Expenses of CUSD

Item % $

Teacher Salaries 51% $197,502,270

Teacher Benefits 13% $50,511,841

Classified Salaries 15% $57,107,223

Classified Benefits 6% $22,527,136

Books & Supplies 5% $18,502,401

Services & Operating Expenses

8% $29,595,944

Capital Expenses .0002% $58,000

Other Expenses 3% $9,764,174

TOTAL 100% $385,569,089

Unrestricted Funds for Expenses

Budget Cut History

Year Amount2006-7 $ 02007-08 $10.5M2008-09 $20.5M2009-10 $35.22010-11 $25.1 (estimated)

Causes of Budget Problems

1. Reduced federal education subsidies2. Reduced state education revenue3. Reduced revenue from property taxes4. Unfunded education mandates5. Lack of financial flexibility - restricted

revenue

6. Inequitable local funding per student

Cuts Taken - So Far

2008-09– Cut Administrative Staff (40+ positions)– Cut Transportation/Maintenance (84 positions)– Reduced Reserves + Shifted Spending

2009-10– Eliminate 2nd & 3rd grade class size reduction– Cut 10% Administrative Salary – Reduce or Eliminate Programs– Cut More Staff– Obtain Categorical Funding Flexibility– Reorganize Savings

Actions Being Considered

Reduce teachers salaries by 10% Reduce number of teachers Increase class size Reduce or eliminate more programs Reduce school year

Potential Impact of Budget Crisis

Teachers Students Educational programs School maintenance and supplies School year Class Size High school graduates College admissions Skilled employees for businesses

Possible Solutions

Federal & State

Eliminate unfunded government mandated programs

State Provide equitable per student funding

County Increase sales tax

CUSD Identify other income sources for education

Voters Modify current propositions; add new onesApprove bond or parcel tax

What You Can Do

Learn about the issues Get involved

- Write letters - Sign Petitions - Join advocacy groups/PTA - Explore or support other local education solutions/changes

Contribute time and/or money to a local school

Vote on the school board issue in November

Remember the Value of Education

“Next in importance to freedom andjustice is popular education,

without which neither freedom norjustice can be maintained”

– James A. Garfield (20th president of U.S.)