2010/11 Adopted 2010/11 Adopted Budget Development Budget Development

ReportReport

Board MeetingJune 1, 2010

Y: Business Services/Budget/2010-11/Adopted/ Meetings/B6-01-10

Executive Summary☼ The State’s financial situation continues to look grim

– A slow revenue recovery is not helping

☼ Under the proposals provided by the Governor, as part of his May revisions, the District stands to lose another $1.2 million

☼ To cover the estimated budget shortfall the District plans to use a number of strategies to place a balanced budget before the Board for approval on June 15:– Sweep Tier III resources as permitted by the State– Incorporate negotiated agreements and Board imposed employee

compensation changes– Reduce operating expenditures– Use existing reserves– Reduce positions reflected in this report

Table of ContentsTable of Contents

A. IntroductionB. View From the StateC. Funding for the DistrictD. Other IssuesE. Updating the Problem for 2010/11F. Proposal for Closing the Budget GapG. Categorical Funding GoalsH. Recommendations & DiscussionI. Appendix

SECTION DESCRIPTION

1

PAGE #

1 - 21 - 41 - 4

1 - 121 - 31 - 3

i

1

Introduction to the May Introduction to the May RevisionRevision

☼ The May Revision is, by statute, the Governor’s last chance to provide his Budget proposals to the Legislature

☼ Overall, the State Budget situation has gotten worse

☼ Inaction by the Legislature has caused planned savings to slip away

☼ Revenues are still falling below the state’s already low forecasts

☼ In the May revision, education continues to be better protected than other programs

A1A1

The View From the The View From the StateStateSection BSection B

B

May Revision FeaturesMay Revision Features☼ The May Revision contains one additional cut to K-12 education

– Cuts proposed in January still remainstill remain

– Targeted proposed administrative cuts were eliminated

☼ Major additional cuts to the non-education portions of the Budget are proposed

B1B1

☼ We can expect the Legislature to have great difficulty voting for the choices before them

☼ The Governor dropped the targeted nature of proposed cuts, allowing broad local discretion in how the cut will be implemented

☼ One change will cost Lodi USD more than $1 million

– How it’s implemented will dictate the actual amount

Risks to the Revised Budget Risks to the Revised Budget ProposalProposal

☼ The May Revision, if enacted as proposed, contains significant risks

– Court challenges – rebenching Proposition 98, elimination of CalWORKs, state worker pay cuts, health care reductions, and other cuts could face court challenges

– Late Budget – a late Budget would delay implementation of program reductions, resulting in the loss of budgeted savings

– Economic and revenue risks – the state and national economies face the possibility of a “double dip” recession, especially in light of the turmoil in overseas economies

☼ These risks in turn could threaten California’s access to the capital markets, pushing borrowing costs even higher

B2B2

Funding For the Funding For the DistrictDistrict

Section CSection C

C

Revenue Limit FundingRevenue Limit Funding☼ Base Revenue Limit (BRL) funding under the May Revision would

receive the following adjustments:

– Funding for growth and a “fully funded” statutory Cost of Living Adjustment (COLA) of -0.39%,-0.39%, essentially unchanged from the -0.38% estimate in January

– No change in the deficit factor from the Governor’s January Budget Proposal

• 18.355%18.355% for K-12 school districts

– The flat rate funding reduction to the Revenue Limit has increased from the $201 reported in January

• This reduction will be about $244 per ADA and cost Lodi USD more than $1 million

• Department of Finance (DOF) is considering a 3.85% reduction to each district’s undeficited BRL in place of the specific amount per ADA by district type

C1C1

Revenue Limit Revenue Limit DeficitDeficit-7

.84%

11.0

10%

-7.8

4%

-13.

09%

-17.

967%

-18.

36%

-18.

36%

-18.

36%

-3.8

5%

January May

Adopted

January May

Adopted

January May

Adopted

2008/09 2009/10 2010/11

Or $244

May Revis

e

C2C2

COLACOLA

K-12 Revenue LimitsK-12 Revenue Limits

Governor’s Governor’s Jan. Proposal Jan. Proposal For 2010/11For 2010/11

2009/10 2009/10 AdoptedAdopted

2009-10 Fiscal Year

DeficitDeficit18.355%

Cola (.38%)

DeficitDeficit 18.355%

$655,46$655,4644

Governor’s Governor’s MayMay Proposal Proposal For 2010/11For 2010/11

Cola (.39%)

DeficitDeficit 18.355%

$697,92$697,9288

C3C3

$1,185,02$1,185,0244

Special EducationSpecial Education☼ The May Revision provides a fully funded negative COLA of -

0.38% for special education (AB 602) on the state share of funding

– Growth is funded at or $463.67 per ADA

☼ There are several proposed adjustments for 2010-11, including:

– $634 million decrease in one-time American Recovery and Reinvestment Act (ARRA) funding

– Funding remains in the May Revision for the Behavior Intervention Plans on the mandate settlement

• Will add approximately $10.92 per ADA to AB 602 base

• However, legislative action is required before funding will occur

C4C4

Other IssuesOther Issues

Section DSection D

D

State Delays Paying State Delays Paying SchoolsSchools

2010/11 Cash Flow2010/11 Cash Flow

Feb 10 July 10

March 10

April 10

May 10

Jun 10

Aug 10

Sept 10

Oct 10

Nov 10

Dec 09

Dec 10

Jan 10

Sept 10

Aug 10

D1D1

Jan 10 Aug 10

July 10

Aug 10

Feb 10

Mar 09

April 10

Jan 10

Employee Retirement Employee Retirement Contribution RatesContribution Rates

☼ State Teachers Retirement System (STRS)State Teachers Retirement System (STRS) has an unfunded liability in the billions

– We should expect to see an increase in the employer contribution rates in the future

☼ Increasing the employer contribution rate does require legislation

☼ Public Employees Retirement System (PERS)Public Employees Retirement System (PERS), also, has an unfunded liability in the billions

D2D2

Fiscal Year Employer Contribution Rate

2009-10 9.709% (actual)

2010-11 10.707% (pending approval)

2011-12 12.107% (estimated)

2012-13 14.207% (estimated)

2013-14 14.507% (estimated)

SERP – Sample Break Even

($675,000)

($475,000)

($275,000)

($75,000)

$125,000

$325,000

81 100 120

Employees Participating

Dol

lars

77 as of 77 as of May May 27th27th

District must spend money to purchase insurance District must spend money to purchase insurance annuityannuity

606040402020

D3D3

Unemployment Insurance Rates Unemployment Insurance Rates

☼ School Employees Fund (SEF) contribution rates, which are based upon a percentage of total wages paid, will more than doublewill more than double in 2010-11, from the current 0.30% to 0.72%

– This is a reflection, at least in part, of increased layoffs

– In addition to the uniform contribution rate increase, employers that have increased layoffs will see an increase in their local experience charge (LEC) that lags the layoffs

• The LEC is based on data for the fiscal year that began 24 months prior to the fiscal year for which the rate is being calculated

– School districts will receive a corresponding increase in their revenue limit income, pursuant to E. C. 42241.7

D4D4

Updating the Updating the ProblemProblem

for 2010/11for 2010/11Section E

E

Where We’ve Come?Where We’ve Come?

E1E1

The process won’t be over until the State adopts The process won’t be over until the State adopts its budget and we make final adjustmentsits budget and we make final adjustments

☼ The Board & public were formally briefed about the structural balancing problem at the October 6, 2009, Board meeting

☼ Negotiations with the bargaining groups began on November 19, with a clearly defined target

☼ SBAC gave recommendations to the Superintendent on December 2, 2009– Those recommendations were sent to the Board, all employees and have been

published on the District web site since December 2009

☼ A problem model reflecting the Governor’s budget proposals for 2010/11 was presented to the Board on January 26, 2010

☼ Negotiated / Imposed concessions with Confidential, L.P.P.A., L.U.S.D.A.A. and Supervisors have been approved by the Board

☼ We’re now presenting the changes proposed by the Governor on May 14, 2010

☼ The Board will be asked to adopt a budget for 2010/11 on June 15

Enrollment ProjectionsEnrollment Projections

PROGRAMSPROGRAMSPROJECTEDPROJECTEDSTUDENTSSTUDENTS CHANGECHANGE

2009/102009/10CBEDSCBEDS ADAADA

1. Regular K-6 15,172 (149)

2. Regular 7-8 (37)4,222

3. Regular 9-12

(99)7,862

15,023

4,185

(141)

(34)

(91)7,763

4. All Other Programs

2,138 2,138

5. Serna Charter School 290 290

6. Total K-12 Increases 29,399 (285)29,684 (266)

- -

- -

Enrollment is projected to continue Enrollment is projected to continue decliningdeclining

E2E2Rio Valley Charter is not expected to have an Rio Valley Charter is not expected to have an impactimpact

Summary of Growth Summary of Growth ExpensesExpenses

DESCRIPTIONDESCRIPTION F.T.EF.T.E BUDGETBUDGET

1. Teacher Staffing ($696,553)(11.12)

4. Site Clerical, Noon Duty & Campus Supv.

3. Custodial Support & Bus Drivers

2. Special Ed. Staffing (Cert. & Class.)

5. Per-Pupil Allocations (18,911)

6. Total Growth 6. Total Growth ExpensesExpenses

($715,464)($715,464)(11.12)(11.12)

There is more declining enrollment projected for There is more declining enrollment projected for 2010/112010/11

E3E3

Mandatory On-Going Mandatory On-Going ExpensesExpenses

DescriptionsDescriptions F.T.EF.T.E BUDGETBUDGET

2. Health & Welfare - Retiree 145,721

8. Total Mandatory On-Going Expenses8. Total Mandatory On-Going Expenses $2,666,300$2,666,300

3. Worker’s Compensation - .25% Increase.25% Increase 163,814

1. Projected Step & Column Costs $2,082,410

E4E4

5. Elect., Gas, Heat, Disposal & Sewage 210,541

7. Technology Maint. Agree. & New Systems n/c

6. Phone & Wide Area Network Services (101,733)

4. Aspire Special Education-Stockton/Oakland 165,547

Mandatory One-Time Mandatory One-Time ExpensesExpenses

DescriptionsDescriptions F.T.EF.T.E BUDGETBUDGET

1. Contingency Reserve – ReplenishReplenish $104,195

3. Total Mandatory One-Time Expenses3. Total Mandatory One-Time Expenses $145,958$145,958-0--0-

2. General Reserve Requirement (3%) 41,763

E5E5

Other On-Going ExpensesOther On-Going Expenses

DescriptionsDescriptions F.T.EF.T.E BUDGETBUDGET

2. Tier III 2,334,011

4. Total Other On-Going Expenses4. Total Other On-Going Expenses $9,553,766$9,553,766

3. Federal ARRA Expenses 6,279,706

1. Categorical Programs that Encroach $940,049

E6E6

(*)(*)

(*) Use of these funds to retain staff was supported(*) Use of these funds to retain staff was supportedby employee groups, management and the Boardby employee groups, management and the Board

Other One-Time ExpensesOther One-Time Expenses

DescriptionsDescriptions F.T.EF.T.E BUDGETBUDGET

2. Total Other One-Time Expenses2. Total Other One-Time Expenses $ 286,613$ 286,613-0--0-

1. General Reserve Requirement (3%) $ 286,613

E7E7

Summary of Increased Summary of Increased CostsCosts

DescriptionDescription F.T.EF.T.E BudgetBudget

A. Growth Costs ($ 715,464)(11.12)

F. Total Estimated Uses $11,937,173$11,937,173(11.12)(11.12)

C. Increased Mandatory One-Time Costs 145,958

B. Increased Mandatory On-Going Costs 2,666,300

D. Additional Other On-Going Costs 9,553,766

E. Additional Other One-Time Costs 286,613

E8E8

Estimate of Growth Estimate of Growth IncomeIncome

Fewer Students Equals Less Fewer Students Equals Less

IncomeIncome

A. Net Growth Income ($1,378,393)

B. Special Education Growth (123,336)

DescriptionDescription BudgetBudget

C. Class-Size Reduction – Grades K-3 (74,907)

F. Total Estimated New Income ($1,605,896)

D. Interest Income

E. Lottery Income (29,260)

There is declining enrollment projected for There is declining enrollment projected for 2010/112010/11

E9E9

Other Funding SourcesOther Funding Sources

DescriptionsDescriptionsON-ON-

GOINGGOING TOTALTOTALONE-ONE-TIMETIME

1. Revenue Limit COLA (-.39%) ($ 682,775) ($ 682,775)

2. Revenue Limit Reduction (-3.85% or -$244) (6,674,535) (6,674,535)

3. Other Program COLAs (-.38%) (113,166)(113,166)

4. A.R.R.A. – Title I Carryover (est.) $ 588,337

588,337

7. Total Funding Sources7. Total Funding Sources ($7,470,476)($7,470,476)($4,165,438)($4,165,438)$3,305,038$3,305,038

5. A.R.R.A. – IDEA Carryover (est.) 1,747,112

1,747,112

6. Reduce 3% General Reserve 969,589 969,589

E10E10

Defining “Now” the Defining “Now” the ProblemProblem

DescriptionDescription TotalTotalOne Time One Time On GoingOn Going

A. Structural Balancing (Prior) ($13,641,534) ($13,641,534)

B. Funding Sources (1,605,896) (1,605,896)

D. Other Sources (4,165,438)(7,470,476) 3,305,038

E. Total ProblemE. Total Problem ($31,350,041)($31,350,041)($34,222,508)($34,222,508) $2,872,467$2,872,467

C. Estimated Uses (11,937,173) (11,504,602) ($ 432,571)

E11E11

Defining “Future” the Defining “Future” the ProblemProblem

DescriptionDescription BudgetBudget

A. Structural Balancing

B. Cost of Doing Business

D. Revenue Sources

0

E. Total ProblemE. Total Problem $0$0

C. Projected Budget Reductions ($ 10,056,225)

E12E12

(155.05)(155.05)

(155.05)

F.T.EF.T.E BudgetBudget

0

$0$0

(2,756,386)

(43.49)(43.49)

(43.49)

F.T.EF.T.E

2011/122011/12 2012/132012/13

($ 7,790,114)

$2,266,111

($ 235,955)

2,520,431

Proposals for Closing Proposals for Closing the Budget Gapthe Budget Gap

Section F

F

Agreements & Board Imposed

Confidential CSEA LEA LPPA LUSDAA Supervisors

Furlough Days 2009/10

5 5 5 5

Furlough Days 2010/11

7 7 7 12

Freeze Salary Schedule

Yes Yes Yes Yes

Reduce Salary Schedule

Yes Yes Yes No

Staff Reductions Yes Yes Yes Yes

F1F1

Summary of the ProposalUnrestricted Program OnlyUnrestricted Program Only

☼ Sweeps from Tier III Programs $5,357,399

Description AmountFTE

☼ Bargaining Agreements/Imposed 3,575,21012.90

☼ L.E.A. 12,074,479260.17

☼ C.S.E.A. 5,885,553124.27

☼ Reserves Set Aside for 2010/11 1,713,634

☼ Prior Year ADA 1,000,000

☼ Operating Expenses (Transportation & Others) 645,407

☼ Capital Outlay Reserves 543,359

☼ Declare 2009/10 Ending Fund Balance 325,000

☼ ARRA Construction @ Needham West 230,000

☼ T0TAL ADJUSTMENTS $31,350,041397.34

F2F2

Categorical Funding Categorical Funding GoalsGoals

For the For the 2010/11 Adopted 2010/11 Adopted

BudgetBudgetSection G

G

Categorical Positions Eliminated

G1G1

One Time On Going TotalNo. DESCRIPTION FTE AMOUNT FTE AMOUNT FTE AMOUNT

G. CATEGORICAL FUNDED POSITIONS ELIMINATED

1 Technician - ARE 1.00 69,156$ 1.00 69,156$ 2 Instructional Coach - Science 1.00 62,165 1.00 62,165 3 Construction Manager 0.60 75,827 0.60 75,827 4 Director of Ed. Services 0.90 134,967 0.90 134,967 5 Director of Elementary Education 0.50 71,600 0.50 71,600 5 Facilities Planning Manager 0.60 69,194 0.60 69,194

6 Total Other Recommendations 0.00 -$ 4.60 482,909$ 4.60 482,909$

FUNDING

DESCRIPTION COMMENTS FTE Budget SUGGESTION

1 Principal - Lincoln Tech Existing 1.00 $142,993 Adult Ed.

2 Vice Principal - Lincoln Tech 1.00 FTE = .50 Adult Ed, .20 ROP, .05 VEA, .25 General Fund

0.75 $94,587 Adult Ed.

3 Psychologist 4 positions each .20 FTE 0.80 $80,710 Title I Assistance to Schools

4 Teacher Coach prev SETPD 1.00 $60,058 Title I ARRA C/O

5 Teacher Coach prev SETPD 1.00 $61,575 Aspire C/O

6 Program Specialist prev SETPD 0.40 $44,761 Aspire C/O

7 Library Media Asst I (K-6) Fixed pool of FTE 6.00 $251,214 EIA/SCE Site Goal

8 Library Media Assistant II (9-12) Fixed pool of FTE 3.00 $149,997 EIA/SCE Site Goal

9 Library Media Assistant I (7-8) Fixed pool of FTE 3.20 $137,709 EIA/SCE Site Goal

10 Instructional Coaches ELA 1.00 $83,940 Title II

11 Instructional Coaches Technology 1.00 $83,940 Title II

12 GATE Coaches 2.30 $193,062 GATE

13 Para educators RSP Range 29, Step 2 IDEA ARRA ($272,456) 8.00 $272,456 IDEA ARRA C/O

14 Program Specialist Average of existing IDEA ARRA ($70,202) 0.60 $70,202 IDEA ARRA C/O

15 PC Support Technicians 4.00 $176,163 .50 FTE Title I Site; 2.00 EIA Central & 1.50 FTE Title I Central

G2G2

Eliminated Positions That Eliminated Positions That Can Be Restored With Can Be Restored With Categorical ResourcesCategorical Resources

(*) Funding resource has been changed to (*) Funding resource has been changed to RestrictedRestricted

******

**

Categorical FundingCategorical Funding Site Allocations Site Allocations

G3G3

FUNDING

K-6

Su

pp

ort

Tea

cher

s (2

2.00

FT

E)

9-12

In

terv

enti

on

T

each

ers

(2.9

4 F

TE

)

AV

ID

Lib

rary

Su

pp

ort

K-6

(6.0

0 F

TE

Cla

ssif

ied

)

Lib

rary

Su

pp

ort

7-8

(3.2

0 F

TE

Cla

ssif

ied

)

Lib

rary

Su

pp

ort

Ele

m.

9-12

(3.

00 F

TE

C

lass

ifie

d)

Sch

oo

l P

lan

Tem

pla

te

So

ftw

are

7th

Gra

de

Ori

enta

tio

n

Tra

nsp

.

DS

LT

- P

rog

. Im

pro

vem

ent

Sit

es

Tec

hn

olo

gy

(.83

FT

E)

TO

TA

L

EIA-SCE $247,172 $117,495 $251,214 $137,709 $149,997 $30,550 $20,404 $954,541

TITLE I - BASIC LOW INCOME $1,846,680 $5,000 $29,361 $1,881,041SCHOOL & LIBRARY IMPROVEMENT PROG. $6,500 $6,500 TOTAL $1,846,680 $247,172 $117,495 $251,214 $137,709 $149,997 $30,550 $6,500 $5,000 $49,765 $2,842,082

Recommendations & Next Recommendations & Next StepsSteps

to move towards the to move towards the 2010/11 Adopted Budget2010/11 Adopted Budget

Section H

H

Recommendations1. Recognize the decline of enrollment projected for 2010/11

a. This decline is less than the past two years

2. Recognize the impact of the Governor’s May revisions on the budget for Lodi USD

3. Recognize the budget gap is $31,350,041

4. Recognize that with the proposed balancing solutions, the structural out of balance will remain $7,790,114 going into next year

5. Approve the categorical goals strategy

6. Approve the budget balancing strategy

H1H1

AppendixAppendixI. Details of Superintendent Recommendations

II. Categorical Program Goals

III. Superintendent’s Budget Advisory Committee Recommendations

IV. Routine Restricted Maintenance

V. Flexibility Opportunities Continue

VI. Chart School Funding

VII. Acronyms

Superintendent’s Recommendations

Details

I.

ResourcesDescriptionDescription TotalTotalOne Time One Time On GoingOn Going

A. Tier III Sweeps $5,357,399 $5,212,092

B. Ending Balance Reserves 1,713,6341,713,634

D. Capital Outlay Reserves

543,359 543,359

F. Total ResourcesF. Total Resources $8,939,392$8,939,392$5,212,092$5,212,092 $3,727,300$3,727,300

C. Prior Year ADA 1,000,000 1,000,000

$ 145,307

E. Estimated Ending Bal. 325,000 325,000

I-1I-1

Reduce Expenditures

DescriptionDescription TotalTotalOne Time One Time On GoingOn Going

A. LEA ($12,074,479) ($12,074,479)

B. CSEA (5,885,553) (5,885,553)

D. Other Expenses (645,407)(645,407)

F. Total ProblemF. Total Problem ($22,410,649)($22,410,649)($21,220,302)($21,220,302) ($1,190,347)($1,190,347)

C. Negotiations (3,575,210) (2,614,863)(12.90)

(260.17)

(124.27)

($960,347)

E. ARRA Construction

(230,000)(230,000)

(397.34)(397.34)

FTEFTE

22

(*) Includes major reductions in Transportation Services(*) Includes major reductions in Transportation Services

**

**

Balancing

DescriptionDescription TotalTotalOne Time One Time On GoingOn Going

A. The Problem ($31,350,041) ($34,222,508)

B. Proposed

2. Expenses (22,410,649)(21,220,302) (1,190,347)

C. TotalC. Total $ 0 $ 0 ($7,790,114)($7,790,114) $7,790,114 $7,790,114

1. Resources 8,939,392 5,212,092 3,727,300

$2,872,467

I-3I-3

Resources – Tier III Sweeps

I-4I-4

The State does allow Districts to move funds from some categorical programs to help address the budget crisis

DESCRIPTION EXPLANATION On-GoingNo. Total

A. SWEEP OF TIER III CATEGORICAL RESOURCES

1 Instructional Materials Fund (IMF) Carryover only 145,307$ 1,654,693$ 1,800,000$ 2 School & Library Improvement Program

(SLIP)Reduce funding by % 1,055,740 1,055,740

3 Summer School K-12 Sweep all 623,055 623,055 4 Deferred Maintenance Reduce funding by % 500,000 500,000 5 Additional Sweeps Sweep 479,097 479,097 6 Adult Education Ending balances 300,000 300,000 7 School Safety No SRO's 299,553 299,553 8 Beginning Teacher Support & Assess. (BTSA)Only county prgm. Remains 123,000 123,000 9 Comm. Based English Tutor (CBET) Reduce from $ 100,000 100,000

10 Categorical Sweep - Administrative Training AB403

Reduce from $ 76,954 76,954

11 Total Sweep of Tier III Resources 145,307$ 5,212,092$ 5,357,399$

One-Time

Savings Achieved Through Agreements & Board Imposed

Changes with Employee Groups

I-5I-5

One Time On Going TotalNo. DESCRIPTION FTE AMOUNT FTE AMOUNT FTE AMOUNT

B. ITEMS REQUIRING BARGAINING UNIT PARTICIPATION

1 Confidential 27,186$ 3.00 267,331$ 3.00 294,517$ 2 C.S.E.A. - - 3 L.E.A. - - 4 L.P.P.A. 389,896 4.00 851,784 4.00 1,241,680 5 L.U.S.D.A.A. 497,025 3.90 1,245,737 3.90 1,742,762 6 Supervisory 46,240 2.00 250,011 2.00 296,251

7 Total Items Requiring Bargaining Unit Participation- 960,347$ 12.90 2,614,863$ 12.90 3,575,210$

Additional details in slide I-10 and I-Additional details in slide I-10 and I-1111

CSEA Reductions

I-6I-6(@) Partially retained with categorical resources(@) Partially retained with categorical resources

1 C.S.E.A.a. Library Media Asst. (K-6) Reduce services 12.52 524,200$ 12.52 524,200$ b. Library Media Asst. (7-8) Reduce services 3.75 133,515 3.75 133,515 c. Library Media Asst. (9-12) Reduce services 4.13 146,867 4.13 146,867 d. Para Educators - RSP Reduce FTE 12.63 y 430,140 12.63 430,140 e. Para Educator Programs at Davis &

Lakewood Elem Schools1.25 41,974 1.25 41,974

f. Para Educator Aspire dependent schools 1.50 35,268 1.50 35,268 g. Speech Therapist clerical support Under the direct supervision

of a Speech-Language Pathologist.

1.75 65,485 1.75 65,485

h. Bus Drivers - Transportation Reduce staffing 20.00 935,742 20.00 935,742 i. Mechanic - Transportation Reduce staffing 2.00 120,860 2.00 120,860 j. Bus Driver Trainer - Transportation Reduce staffing 2.00 108,064 2.00 108,064 k. Utility Worker - Transportation Reduce staffing 1.00 56,238 1.00 56,238 l. Dispatcher - Transportation Reduce staffing 1.00 56,338 1.00 56,338

m. Planning Analyst I - M & O Eliminate remaining balance of .60 from RRM

0.60 48,669 0.60 48,669 n. Planning Analyst I - F & P Eliminate remaining balance of .40 from General Fund 0.40 32,446 0.40 32,446 o. Lead Carpenter Eliminate 1.00 83,938 1.00 83,938 p. Lead Plumber Reduced to plumber 1.00 80,985 1.00 80,985 q. Lead H & AC Tech. Eliminate 1.00 100,277 1.00 100,277 r. Maintenance Worker I Reduced from 7.00 FTE 7.00 y 360,927 7.00 360,927 s. Maintenance Worker II Reduce from 4.00 FTE 2.00 y 111,520 2.00 111,520 t. Plumber Moved from Lead (1.00) y (74,645) (1.00) (74,645)

DESCRIPTION EXPLANATION On-GoingNo. Total

@@@@@@@@

CSEA Reductions

I-7I-7

(*) Retained with categorical resources(*) Retained with categorical resources

**

**

One Time On Going TotalNo. DESCRIPTION EXPLANATION FTE AMOUNT FTE AMOUNT FTE AMOUNT

1 C.S.E.A.u. H & AC Technician Reduce from 5.00 FTE 2.00 y 144,548 2.00 144,548 v. Electrician Reduce from 5.00 FTE 2.00 y 130,650 2.00 130,650 w. Custodial/Warehouse Worker Reduce from 1.00 FTE (warehouse

portion)0.63 y 21,436 0.63 21,436

x. Administrative Secretary I Eliminate from M & O 1.00 66,242 1.00 66,242 y. Groundskeeper Reduce 1.00 y 47,716 1.00 47,716 z. Custodians Reduce from 139.00 FTE 20.50 942,365 20.50 942,365

aa. Administrative Secretary - ARE Eliminate 0.90 52,731 0.90 52,731 ab. Technician - ARE Reduce staffing 1.00 69,156 1.00 69,156 ac. Systems Analyst I - Technology Technology 1.00 78,676 1.00 78,676 ad. PC Technician Technology 4.00 210,324 4.00 210,324 ae. Network Technician Technology 1.00 73,960 1.00 73,960 af. Typist Clerk II Student Services 1.00 45,203 1.00 45,203 ag. Para Educators Changed from school site staffing 4.63 187,003 4.63 187,003 ah. Student Welfare & Attendance Advisors 2.38 120,342 2.38 120,342 ai. Account Clerk I Accounting Department 2.00 97,208 2.00 97,208 aj. Typist Clerk III Payroll - Health Benefits 1.00 49,727 1.00 49,727 ak. Budget Technician Budget Department 1.00 56,868 1.00 56,868 al. Typist Clerk Personnel 1.00 48,407 1.00 48,407

am. Analyst - ARE Moved to Title I/II 0.50 33,150 0.50 33,150 an. Categorical Program Assist. - Budget Moved to Title I/II 0.16 7,533 0.16 7,533 ao. Administrative Secretary II - Curriculum Moved to Title I/II 0.05 3,500 0.05 3,500

****

**

**

L.E.A. Reductions

I-8I-8

One Time On Going TotalNo. DESCRIPTION EXPLANATION FTE AMOUNT FTE AMOUNT FTE AMOUNT

2 L.E.A.a. Eliminate 4th Grade Comm. Day School Programs at Davis & Lakewood

Elementary Schools0.95 59,214 0.95 59,214

b. Senior Project Eliminate 1 period per site 0.93 57,967 0.93 57,967 c. Class Size:

Kindergarten increased by 11 Staffing formula class size 21.5 to 32.5 32.00 1,994,560 32.00 1,994,560 Grades 1-3 increased by 10 Staffing formula class size 21.5 to 31.5 91.00 5,672,030 91.00 5,672,030 Grades 4-6 increased by 3 Staffing formula class size 31.5 to 34.5 14.00 872,620 14.00 872,620 Elementary Prep 12.00 747,960 12.00 747,960 Grades 7-8 increased by 2.5 Staffing formula class size 32 to 34.5 10.80 673,164 10.80 673,164

Grades 9-12 increased by 8.25 Staffing formula class size 32 to 40.25 58.67 3,656,901 58.67 3,656,901 d. Teachers K-6 Class Size Reduction - Title I

SitesTitle I ARRA 21.56 1,343,835 21.56 1,343,835

e. Teachers 9th Grade CSR Eliminate program ($18,643 would be made available in Title II)

5.32 331,596 O 5.32 331,596

f. Independent Study Reduce Staffing 2.00 124,660 2.00 124,660 g. Special Day Class/RSP Reduce Staffing 5.00 311,650 5.00 311,650 h. CAHSEE Sweep 1.94 120,920 1.94 120,920 i. Library Media Teacher (9-12) Eliminate services 4.00 y 249,320 4.00 249,320 j. Additional Reductions Lost K-3 CSR Income y (4,141,918) - (4,141,918)

Other Reductions

I-9I-9

One Time On Going TotalNo. DESCRIPTION EXPLANATION FTE AMOUNT FTE AMOUNT FTE AMOUNT

E. OTHER RECOMMENDATIONS

1 Benchmarks - 2 quarters eliminated for Math, Science, Social Studies & ELA 7-12

Cost represent duplication expense.

24,992$ - 24,992$

2 Transportation - Fuel Cost 187,700 - 187,700 3 Transportation - Cell Phones 4,000 - 4,000 4 Transportation - Conferences 1,000 - 1,000 5 Transportation - Parts 63,506 - 63,506 6 Transportation - Tires 10,000 - 10,000 7 Transportation - Supplies/Services 179,409 - 179,409 8 Transportation - Co-Curricular Eliminate $16,200 per high

school site64,800 - 64,800

9 Ending Fund Balance - Reserves 1,713,634 1,713,634 10 Undeclared ADA 1,000,000 1,000,000 11 AB-87 Capital Outlay Reserves Reduce reserves 543,359 543,359 12 Ending Fund Balance Increase projected 325,000 - - 325,000

13 ARRA Construction @ Needham West 230,000 - 230,000

14 Co-Curricular - Stipends Reduce per site staff recommendation

110,000 - 110,000

15 Total Other Recommendations 0.00 3,811,993$ 0.00 645,407 0.00 4,457,400$

E. TOTAL PROPOSED CHANGES TO THE BUDGET 0.00 4,917,647$ 397.34 26,432,394$ 397.34 31,350,041$

Negotiated Agreements

DESCRIPTION FTE On-GoingNo.TotalOn-Going

FTE On-GoingOn-Going

FTE On-Going

I-10I-10

F. POSITIONS ELIMINATED BY GROUP

1. L.P.P.A.

a. Counselors (7-12) 3.80 304,251$ 3.80 304,251$ b. Counselors (K-6) - Davis/Lakewood CDS 0.20 16,091 0.20 16,091

c. Total L.P.P.A. 0.00 -$ 4.00 320,342$ 4.00 320,342$

2. Supervisors

a. Operations Supervisor - Custodial 1.00 93,819$ 1.00 93,819$ b. Accounting Supervisor 1.00 96,636 1.00 96,636

c. Total Supervisors 0.00 -$ 2.00 190,455$ 2.00 190,455$

Included in slide I-4, B1 and Included in slide I-4, B1 and B6B6

Confidential & Management

I-11I-11

DESCRIPTION FTE On-GoingNo.TotalOn-Going

FTE On-GoingOn-Going

FTE On-Going

(*) Moved to categorical resources(*) Moved to categorical resources

F. POSITIONS ELIMINATED BY GROUP

3. Confidential

a. Personnel Analyst 1.00 63,289$ 1.00 63,289$ b. Administrative Secretary - Superintendent 1.00 73,475 1.00 73,475 c. Administrative Secretary - Associate Supt. 1.00 76,018 1.00 76,018

d. Total Confidential 0.00 -$ 3.00 212,782$ 3.00 212,782$

4. L.U.S.D.A.A.

a. Construction Project Manager 0.40 50,551$ 0.40 50,551$ b. Coordinator - Special Ed. 1.00 137,245 1.00 137,245 c. Director of Ed. Services 0.10 14,996 0.10 14,996 d. Director of Elementary Ed. 0.50 71,600 0.50 71,600 e. Facilities Planning Manager 0.40 46,129 0.40 46,129 f. Vice Principal, Adult Ed. 0.25 31,529 0.25 31,529

g. Associate Superintendent of Instruction 1.00 185,614 1.00 185,614 h. Administrative Director - Curriculum 0.25 35,188 0.25 35,188

i. Total L.U.S.D.A.A. 0.00 -$ 3.90 572,852$ 3.90 572,852$

5. Total Agreements/Imposed Settlements - -$ 12.90 1,296,431$ 12.90 1,296,431$

**

Included in slide I-5, B1 and B5Included in slide I-5, B1 and B5

Categorical Goals

II

Funding SourcesFunding Sources

☼ The following Categorical funds sources were identified:

– Adult Education– ARRA – IDEA & Title I Carryover– Aspire Special Education Carryover– BTSA (svcs. through the County)– CAHSEE– CBET– District Program Improvement– Economic Impact Aid– English Language Acquisition Program– Gifted And Talented– IMF & Lottery Textbooks

– Medi-Cal Carryover– Mega Redirection– School Safety & Violence

Prevention– School & Library Block Grant

Program– Supplemental Counseling– VAPA (on-going)– Title I - Basic Low Income – Title II - Teacher Quality– Title II – Principal Training

Carryover– Title III – Limited

English proficiency

II-1II-1

Funding by Goal & Funding by Goal & ResourceResource

II-2II-2

GOALADULT

EDUCATION

ADMIN TRAINING (AB430) ARRA: IDEA ARRA: Title I

ASPIRE CARRYOVER BTSA CAHSEE CBET

DIST. PI (UNREST GF)

District Indirect Costs $20,286 $0 $2,466AB1802 Counseling Adult Education $1,087,001AVID Benchmark Assessments $86,000 $164,925BTSA $45,000CBET $132,173Community Relations Counseling $342,747Curriculum EL - Serna EL Assess., Trans./Interp. EL Materials - General EL Prof. Dev. EL Staffing ESS $860,518 $106,336Fiscal Support $19,206Library - Elementary Library - High Library - Middle Preschool (BB) Professional Development Program Balancing $18,399 $136,018School Safety Site Alloc. & Services $40,000 $127,490Site Alloc./Required Prog. Costs Special Education $342,658 $247,542Student Services $149,510 $119,608Textbooks, Mtls & Support VAPA Grand Total $1,125,686 $0 $511,374 $1,448,873 $353,878 $47,466 $263,508 $132,173 $164,925

Funding by Goal & Resource Funding by Goal & Resource (cont.)(cont.)

II-3II-3

GOAL EIA-LEP EIA-SCE

EIA-SCE CENTRAL

FUNDS ELAP GATEIMF & LOTTERY

TEXTBKSMEDI-CAL

CARRYOVER

MEGA RE-DIRECTION

FUNDS

SCHOOL SAFETY & VIOLENCE

PREV.

District Indirect Costs $105,001 $24,773 $15,719 $9,811AB1802 Counseling Adult Education AVID $117,495 $33,576Benchmark Assessments BTSA CBET Community Relations $31,595Counseling Curriculum $53,809 $260,985EL - Serna EL Assess., Trans./Interp. EL Materials - General EL Prof. Dev. EL Staffing $3,341,157 $204,074 $42,036ESS $50,954 $126,406Fiscal Support $9,603Library - Elementary $251,214Library - High $149,997Library - Middle $137,709Preschool (BB) Professional Development $5,432 $206,935Program Balancing $117,227 $22,017School Safety $40,597Site Alloc. & Services $247,172Site Alloc./Required Prog. Costs $509,734 $33,258 $244,809Special Education Student Services $167,602Textbooks, Mtls & Support $1,651,497 $26,401VAPA Grand Total $3,955,892 $979,314 $432,581 $302,564 $216,746 $1,912,482 $284,829 $81,994 $72,192

Funding by Goal & Resource Funding by Goal & Resource (cont.)(cont.)

II-4II-4

GOAL

SCHOOL & LIBRARY BLK -

SIPSUPPLEMENT COUNSELING

VAPA ON-GOING

TITLE I - BASIC LOW INCOME

TITLE II - PART A, TEACHER

QUAL.TITLE II - PART A, PRIN TRAIN TITLE III - LEP TOTAL

District Indirect Costs $35,572 $42,248 $21,717 $354,727 $78,448 $16,845 $727,614AB1802 Counseling $1,084,024 $1,084,024Adult Education $1,087,001AVID $16,788 $167,859Benchmark Assessments $250,925BTSA $45,000CBET $132,173Community Relations $94,784 $126,379Counseling $342,747Curriculum $52,556 $87,524 $31,040 $485,913EL - Serna $14,196 $14,196EL Assess., Trans./Interp. $78,200 $78,200EL Materials - General $8,500 $8,500EL Prof. Dev. $41,000 $41,000EL Staffing $346,116 $3,933,383ESS $95,943 $4,452,743 $22,179 $5,608,743Fiscal Support $16,005 $19,206 $64,019Library - Elementary $251,214Library - High $149,997Library - Middle $137,709Preschool (BB) $413,731 $413,731Professional Development $290,000 $1,026,282 $29,000 $1,314,769Program Balancing $149,575 $71,573 $514,809School Safety $40,597Site Alloc. & Services $93,370 $168,144 $189,162 $865,338Site Alloc./Required Prog. Costs $443,806 $1,133,318 $11,088 $2,376,013Special Education $342,658Student Services $436,720Textbooks, Mtls & Support $26,401VAPA $899,017 $899,017Grand Total $684,696 $1,126,272 $920,734 $6,827,853 $1,509,973 $40,088 $818,810 $21,966,648

Superintendent’s Superintendent’s Budget Advisory Budget Advisory

Committee (SBAC) Committee (SBAC) RecommendationsRecommendations

III

SBAC Reduction Recommendations

III-1III-1

No. DESCRIPTION EXPLANATION FTE AMOUNT IN THE PLAN

A. SWEEP OF TIER III CATEGORICAL RESOURCES

1 Summer School K-8 Sweep all 335,081$ Board action2 Summer School 9-12 Sweep all 287,974 Board action3 Instructional Materials Fund (IMF) Reduce Funding 1,800,000 Yes4 School & Library Improvement Program (SLIP) Reduce Funding 1,000,000 Yes5 Beginning Teacher Support & Assess. (BTSA) Reduce Funding 123,000 Yes +6 Adult Education Reduce Funding 100,000 Yes +7 Comm. Based English Tutor (CBET) Reduce Funding 100,000 Yes8 Categorical Sweep - Administrative Training AB403 Reduce Funding 76,954 Yes

9 Total Sweep of Tier III Categorical Resources 0.00 3,823,009$

SBAC Reduction Recommendations

DESCRIPTION EXPLANATION AMOUNTNo.

III-2III-2

B. ITEMS REQUIRING BARGAINING UNIT PARTICIPATION

1 Step & Column Increases No movement for 2010/11 2,504,031$ Yes -2 Staff Development Days - 2010/11 Eliminate two additional days 1,207,958 Yes -3a. Retirement Options 200,000 In progress4b. Furlough Day - 2009/10 1,702,720 Yes -5c. Furlough Day - 2010/11 Reduce five days for all

employees4,256,800 Yes -

6 Prep Periods - Other Sites/Programs Eliminate (Continuation 2.21, ISP 2.78 FTE)

312,449 No7 Salary Schedule Compensation $1,590,273 for each 1% change 1,590,273 Yes -

8 Total Items Requiring Bargaining Unit Participation 11,774,231$

SUPT. PLAN

SBAC Reduction Recommendations

DESCRIPTION EXPLANATION BUDGETNo.

III-3III-3

SUPT. PLAN

C. COMMITTEE IDEAS

1 ESC budgets 15% overall reduction 3,500,000$ Yes - 11%+2 Elkhorn Close school; Estimated 3.20 284,961 No per Board3 Teacher K-6 Class Size - Title I 1,349,979 Yes +/-4 Vice Principal (7-8) Houston only 51,457 No 5 Counselors (7-12) Reduce 354,874 Yes -6 Vice Principal (7-8) Increase ratios by 100 Students 53,610 No7 Benchmarks - 4th Quarter Elimination Cost represent duplication

expense.24,992 Yes

8 Eliminate 4th Grade Comm. Day School Programs at Davis & Lakewood Elementary Schools

2.45 120,061 Yes -

9 Close Tokay Colony Move Tokay Colony to Live Oak; Estimated

55,575 No per Board

10 Intervention Teachers (7-8) Eliminate Middle School Support 310,074 No

11 Teachers 9th Grade CSR 579,913 Yes -12 Co-Curricular Coaches - Cert. Reduce by half 128,753 Yes +/-13 Counselors (K-6) 360,034 No14 Speech Therapist clerical support Speech Language Aides -

provide clerical assistance and 1.75 65,485 Yes

15 Summer School K-6 Eliminate 205,132 Board action16 Co-Curricular Coaches - Class. Reduce by half 79,085 Yes +/-17 Clements Close school; Estimated 67,229 No per Board18 Middle College Principal Combine w/ another administrator 1.00 124,776 No19 ISP Principal Combine w/ Continuation 1.00 102,941 No20 Maintenance Supervisor 3.00 FTE Funded from Routine

Rest. Maintenance; 1.00 FTE Funded from Unrestricted.

1.00 96,636 Yes -

FTE

SBAC Reduction Recommendations

DESCRIPTION EXPLANATIONNo.

III-4III-4

21 Athletic Directors Eliminate support 50,092 No22 Supplies (7-8) - Small School Alloc. Reduce $1,000/site 1,000 No23 Supplies (K-6) - Small School Alloc. Reduce $1,000/site 7,000 No24 Teacher Subs Require Administrator to sub;

Amount represents Certificated 16,898 No

25 Transportation Reduce busing to Lockeford 0.50 19,396 No per Board26 School site clerical Reduce by 1 hour per day;

Amount represents 1 hours less per day per each site

5.25 187,003 No

27 Senior Project Amount represent teacher staffing allocation for high

schools.

0.93 58,232 Board action

28 Teachers - Gate Eliminate Resources; Tier III resource

2.30 144,015 Yes29 Transportation All sports; Amount represents

total Co-Curricular transportation budget ($16,200 per high school)

64,800 Yes

30 Transportation Eliminate (not including Special Education SH/OH)

2,000,000 Yes

31 Transportation Charge for participation in Home to School

145,746 No32 K-12 Library Clerks (Library Media/Assistant) Reduce by 50%; Does not

include categorically (i.e., Title I, SLIP, EIA) funded positions.

11.21 490,415 Yes +/-

33 Increase class size by 1 - 9-12 Staffing formula class size 32 to 33

1,127,070 Yes +34 Increase class size by 1 - K-6 All grades excluding QEIA sites;

includes associated prep and loss of Class Size Reduction

revenue

1,475,604 Yes +

35 Increase class size by 1 - 7-8 Staffing formula class size 32 to 33

597,348 Yes +

Total Positions Fully Funded from Restricted Fund 14,300,186$

E. TOTAL ALL ITEMS 29,897,426$

SUPT. PLANBUDGETFTE

Flexibility Opportunities Flexibility Opportunities ContinueContinue

☼ The flexibility options introduced in 2008-09 continue without changes

– 42 Tier III flexible categorical programs

• Including suspension of deferred maintenance match requirements and instructional materials adoption timelines

– Relaxation of K-3 Class-Size Reduction (CSR) funding penalties

– Lowering of reserve for economic uncertainty requirements

– Shorter school year

☼ The May Revision proposes no changes to existing flexibility – nor does it offer answers to questions about the future of flexibility

– Tier III flexibility continues through 2012-13

– K-3 CSR funding penalties remain relaxed through 2011-12

IV

Charter School FundingCharter School Funding☼ The May Revision provides estimated General Purpose rates for charter schools

based on statewide average revenue limits (Education Code Section [E.C.] 47633[a])

– Reflects -0.39% COLA, 18.355% deficit, and other anticipated changes

– The CDE will recalculate the General Purpose rates at each apportionment

• Final amounts could vary by ±$20 per ADA

☼ Categorical rates reflect a -0.38%-0.38% COLA

K-3 4-6 7-8 9-12General Purpose Block Grant (will vary)

$5,005 $5,081 $5,227 $6,067

Proposed Adjustment(est. 3.85% reduction)

(236) (240) (247) (286)

Categorical Block Grant 399 399 399 399 Total $5,168 $5,240 $5,379 $6,180

V

Acronyms☼ AB – Assembly Bill☼ ADA – Average Daily Attendance☼ ARE – Assessment, Research & Evaluation☼ ARRA – American Recovery and Reinvestment Act☼ AVID – Advancement Via Individual Determination☼ BB – Better Beginnings☼ BRL – Base Revenue Limit☼ BTSA – Beginning Teacher Support & Assessment☼ CAHSEE – California High School Exit Examination☼ CalWORKS – California Work Opportunity and Responsibility to Kids☼ CBEDS – California Basic Educational Data System☼ CBET – Community Based English Tutor☼ CDE – California Department of Education☼ C/O – Carryover☼ COLA – Cost of Living Adjustment☼ CSEA – California School Employees Association☼ CSR – Class Size Reduction☼ DOF – Department of Finance☼ DSLT – District School Leadership Team

VII-1VII-1

Acronyms - continued☼ ED – Education Code☼ EIA – Economic Impact Aid☼ EIA/LEP – Economic Impact Aid/Limited English Proficiency☼ EIA/SCE – Economic Impact Aid/State Compensatory Education☼ ESEA – Elementary & Secondary Education Act☼ F&P – Facilities and Planning☼ FTE – Full-Time Equivalent☼ GATE – Gifted and Talented Education☼ IDEA – Individuals with Disabilities Education Act☼ IMF – Instructional Materials Fund☼ ISP – Independent Study Program☼ LAO – Legislative Analyst’s Office☼ LEA – Lodi Education Association☼ LEA – Local Education Agency☼ LEC – Local Experience Charge☼ LPPA – Lodi Pupil Personnel Association☼ LUSDAA – Lodi Unified School District Administrators Association☼ M&O – Maintenance and Operations☼ PC – Personal Computer

VII-2VII-2

Acronyms - continued☼ PERS – Public Employees Fund☼ QEIA – Quality Education Investment Act☼ RL – Revenue Limit☼ ROP – Regional Occupation Program☼ RSP – Resource Specialist☼ RTTT – Race to the Top☼ SBAC – Superintendent’s Budget Advisory Committee☼ SEF – School Employees Fund☼ SETPD – Special Education Teacher Professional Development☼ SLIP – School and Library Improvement Program☼ STRS – State Teachers Retirement System☼ USD – Unified School District☼ VAPA – Visual and Performing Arts☼ VEA – Vocational Education Act

VII-3VII-3