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AGENDA
State revenue challenges for 2009-10,
2010-11, and 2011-12 (Terry Casey) Recommended reductions for 2009-10
and 2010-11 (Steve Herzog) BoE asked to determine whether
reduction plan is reasonable (Steve Herzog)
State Funding Impacts
State revenue shortfall presented by David Hart and Terry Casey Impacts for K-12 schools Impacts for DCSD
Recommended Reduction Summary
$71 M State revenue shortfall DCSD 2009-10 through 2011-12
$ 5 M 2nd year of planned DCSD reductions for 2010-11
$76 M Anticipated reductions for 2009-10 through 2011-12
$12 M 2009-10 state rescission
$64 M
$40 M 2010-11 reduction plan
$24 M 2011-12 remaining shortfall to address
Recommended Reductions for 2009-10
Mid-year CDE rescission of $9.2M - $12.4M 1.93% saved $ 7.7M 1.25% from all sites $ 2.2M 1.25-2.50% from Departments $ 1.5M Contingency $ .6MTOTAL identified $12.0M
IMPACT: Less resources in schools and departments for 2009-10. Hiring freeze in place with only essential personnel replaced.
Recommended Reductions for 2010-11
Central Office/Services Reductions (6 - 10%) Capital Reserve (defer maintenance/technology) $4,000,000 Reorganize/reduce Custodial Services $1,070,000 Reorganize/reduce Learning Services $ 800,000 Reorganize/reduce Operations & Maintenance $ 715,000 Reorganize/reduce ITS Services $ 400,000 Reduce Construction, Planning & Risk Mgt. $ 290,000 Reorganize/reduce Human Resources $ 250,000 Reorganize/reduce Business Services $ 130,000 Reduce mileage, phones, printing $
120,000 Reorganize/reduce Legal Services $ 100,000
Subtotal $7,875,000 Impact: Approximately 40 FTE
Recommended Reductions for 2010-11
Program Reductions/ Reorganizations School-Based Budgeting Enhanced $2,000,000 Transportation changes due to calendar changes $1,000,000
205 Drivers with less hours each 36 Transportation EA’s with less hours each
Schedule A (athletics fees will help restore) $1,000,000 ETIL supplement for 10 schools $ 650,000 Innovation & Development reduction $
500,000 eDCSD becomes fully self-funded $ 200,000
Subtotal $5,350,000
Impact: Approximately 35 FTE
Recommended Reductions for 2010-11
School or Site Based Budget (SBB) Funding Reductions
SBB reduction of $250 per site $12,500,000 $100 SBB reduction from 2-year reduction plan ($5M) $150 additional SBB due to state revenue shortfall
Student growth funding savings $ 1,500,000
Special Education ratios change $ 1,500,000
Subtotal $15,500,000
Impact: Approximately 220-300 teachers/classified FTE (including 190 one-year only teachers)
Recommended Reductions for 2010-11
Compensation Reductions (negotiated) Compensation freeze for all employees (0.4%)
$3,000,000 Furlough day for all employees – 1st day $1,100,000
2nd day $1,100,000 3rd day $1,100,000
Reduce substitute pay for retired teachers $ 200,000(Now $150 per day, reduce to $115 per day)
Subtotal $6,800,000
____________________________________________________ Pay for Performance for all employees $4,200,000
RECOMMEND: Suspend for 1 year while program is under revision and move to Benefits Incentive Plan
Recommended Revenue for 2010-11
Fees for services ITS fee of $25 per student $1,300,000 Transportation fee of $1 per day per rider
$2,000,000
Subtotal $3,300,000
Increase Athletic/Activities fees to help $ 500,000
restore reductions to Schedule A Middle School increase $20 per student High School increase $30 per student
Recommended Reductions/Revenues for 2010-11
SUMMARY Central Offices / Services $ 7,875,000 Program Reductions/ Reorganizations $ 5,350,000 School-Based Funding $15,500,000 Compensation $ 6,800,000 Pay for Performance $ 4,200,000
TOTAL $39,725,000
Fees for services $ 3,300,000
Total $43,025,000
Recommended Plan: 2010-11
Identified reduction + fee revenue $43,025,000
2010-11 State revenue shortfall $31,000,000
Health Benefit Incentive $ 4,200,000
Balance $ 7,825,000
Other factors to be considered:
TBD = Charter override sharing plan ($ 1,500,000)
State final budget to be released in May 2010 ($ ????????)
Budget Pressures on DCSD
Key Considerations Multi-year state revenue shortfall
($71M) PERA annual increases through
2018 Assessed valuation decreasing Need to address equity issues across
the system
Recommended Reduction Summary
$71 M State revenue shortfall DCSD 2009-10 through 2011-12
$ 5 M 2nd year of planned DCSD reductions for 2010-11
$76 M Anticipated reductions for 2009-10 through 2011-12
$12 M 2009-10 state rescission
$64 M
$40 M 2010-11 reduction plan
$24 M 2011-12 remaining shortfall to address