HUSD Budget Update

March, 2009

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HOW DOES HUSD “STACK UP”

AMONG DISTRICTS

IN ARIZONA

Office of the Arizona Auditor General

Special Study--Fiscal Year 2008

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HUSD Classroom Dollars

60.1 %Classroom

39.9%Nonclassroom

Fiscal year 2008 averages per pupil

HUSD ranks 36th out of 230 total AZ districts = top 16%

HUSD ranks 4th out of 39 “large” AZ districts (5,000 to 19,999 students) = top 10%

(State Average is 57.1%)

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Percentage  DISTRICT STATE

  2004 2005 2006 2007 2008

  2008

Classroom Dollars 57.6 60.5 59.3 61.8 60.1 57.3

Nonclassroom Dollars            

-Administration (Nat. Avg. 11%) 9.3 8.3 8.3 9.0 8.1 9.2

-Plant Operations 11.6 10.1 10.8 9.9 10.3 11.3

-Food Service 5.3 5.5 5.4 5.4 5.5 4.8

-Transportation (high due to HUSD being rural: 200+ square miles) 7.0 6.9 6.6 5.2 6.0 4.4

-Student Support 7.4 6.7 6.8 5.9 6.5 7.4

-Instruction Support 1.8 2.0 2.8 2.8 3.5 5.4

-Other           0.2

HUSD Classroom DollarsExpenditures by Function

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HUMBOLDT UNIFIED SCHOOL DISTRICT STATE

2006 2007 2008 2008

Student/Teacher Ratio 19.6 17.3 17.4 17.3

Average Teacher Salary $ 37,830.00

$ 42,214.0

0

$ 43,437.0

0*

$ 44,967

.00

Average Year's Experience 9.7 8.8 9.0 8.1

*Prop 301 $ not included...HUSD distributes more to teachers than

most other districts

HUSD Comparative Information

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PROPOSITION 301 (Teachers, Librarians, Counselors,

Speech Therapists, Nurses)

► Formula driven, based on State sales tax revenues

► Distributed to districts by “per-pupil” allocations, 92% of

total directly to teachers, 8% for teacher professional

development

04-05 = $3,908

05-06 = $5,735

06-07 = $5,533

07-08 = $5,756

08-09 = approx $5,000

09-10 = unknown

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DO STAFF/TEACHER RATIO COMPARED TO LIKE SIZE ARIZONA DISTRICTS

Prescott Unified SD 12.1% (37.5/311)

Cave Creek Unified SD 12.2% (40/327)

Flowing Wells Unified SD 12.7% (38/300)

Lake Havasu Unified SD 13.1% (44.5/340)

Chino Valley Unified SD 17.3% (26/150)

Humboldt Unified SD 9.1% (33/364)

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GRANT-FUNDED POSITIONSSupplemental (CANNOT SUPPLANT) instructional and administrative

services in the District. Grants pay for:

►Compensatory Education/Parental Classes - Comp Ed Grant, Immigrant Grant, Title III Grant

►Data Specialist to track NCLB academic achievement data - Title IIA►ELL Data/Assessment - Title III►Instructional Specialists - Title IIA►Mentors - Title IIA, Prop 301►Reading Coaches/Interventionists - Reading First►Reading Coaches at non-Reading First sites - Indian Gaming ►SPED Positions & Other Aides– IDEA, Early Childhood Block Grant,

Title I ►Summer School -Title 1, Title III, Comp Ed

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WHAT WE NOW KNOW

ABOUT THE2008- 2009 HUSD Budget

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State reduced the HUSD budget by $818,777► $144,860 from Soft Capital allocation

► $673,917 from Base Support Level (M&O Fund)

HUSD addressed these current year cuts by:► Freezing Soft Capital – Approximate Savings = $563,909

► Capitalizing on savings resulting from current year vacancies –

Approximate Savings = $116,800 (32%admin. function, 33%cert, 35%class)

► Recapturing cost resulting from lower fuel prices –

Approximate Savings = $71,000

► Indirect Costs from Food and Nutrition absorbed approximate balance of

$67,068

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ADDITIONAL SAVINGSB-Bond Project

►B-Bond Project Manager eliminated, saving $500,000 to benefit additional District projects.Bond money cannot be co-mingled with M&O funds.

►Hired 2 previously M&O-funded employees to serve as Internal B-Bond Project Manager and Maintenance Director...This legally comes out of B-Bond funds--Total Savings to M&O=$74,000

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WHAT WE “THINK”

WE “MIGHT” KNOW…

“MAYBE….”

REGARDING

THE 2009-2010 BUDGET

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► HUSD is down 160 students per 100-day ADM count = Approximately a

$650,000 loss of Weighted Student Count revenue in 2009-2010

► Increase in health benefits = 5% ~ $160,000

► State discussed various reduction options in mid-January, 2009. Possible loss of M&O funding

in the following areas:

►Base Student Level (BSL)=<$205> ~ $2 million

►Full-day Kindergarten= ~$1.2 million

►Excess utilities= ~$470,000

►Teacher Experience Index reduced and phased out over eight years= ~$70,000

► Soft Capital possible reduction or elimination ~ $1.3 million

► HUSD’s estimated share of this is $3.5 to $4.5 million dollars (10% to 12% of HUSD budget)

INFORMATION GARNERED FROM STATE EDUC. ORGANIZATIONS

(ASA, ASBA etc.) AND MEDIA REPORTS. NOT OFFICIAL INFORMATION!!!

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DISTRICT STRATEGIESFOR 2009-2010

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EFFORTS DIVIDED INTO TWO TIERS

TIER I -- District budget reductions regardless of the final

09-10 cuts imposed by the State----

Based on declining enrollment and prudent

fiscal management.

TIER II -- Potential budget reductions based on

“Worse-Case Scenarios”

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TIER I Total M&O Savings~$1,710,000

► Eliminate 2 District Office support staff during 2008-09► Eliminate administrator performance pay for 2009-10► Eliminate a high school assistant principal position for 2009-10► Reduce administrative cell phone costs for 2009-10► Change health care eligibility requirements for part-time staff for 2009-10► Eliminate mail delivery driver & 3 maintenance staff during 2008-09► Eliminate high school copy center position for 2009-10► Reduce substitute spending during 2008-09…GOOD PROGRESS!!!► Adjust class sizes, reduce teacher positions through attrition for 2009-10► Reduce ELL teacher positions based on class needs for 2009-10► Reduce SPED/ELL aide positions based on class needs for 2009-10► Revise stipend schedule for 2009-10► Reduce M&O spending for athletics, increase pay-to-play, tax credit $ to

cover High/Middle/Elementary stipends for 2009-2010

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TIER II IN ADDITION TO THE $1.7 MIL TIER I SAVINGS

--OTHER POTENTIAL M&O SAVINGS► Eliminate a middle school Assistant Principal position,

share 1 between BMMS and GHMS► Fee-based full-day kindergarten► 175-day school year (requires State action)

►Adjust administrator wages►Adjust certified/classified wages

► Reduce elementary specials staffing (e.g. music, P.E., library, computer)

► Reduce nursing services & other library services►Additional certified & classified staff reductions► Possible salary reductions/furloughs►Employee contribution towards health premiums

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HOW DOES A REDUCTION IN FORCE WORK?

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REDUCTION IN FORCE (Policy CCQA, GDQA)

► Identify need to reduce staff--based on financial needs, program needs, etc.

► Recommendations to Governing Board► Use attrition first to reduce positions► Follow District policy to execute RIF and

bring staff back after RIF► If more reductions needed beyond

attrition...►Certified: Based on “certification” and “length of service”►Classified: Based on “position” and “length of service”

► April 15 State contract deadline

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AMERICAN RECOVERY AND REINVESTMENT ACT aka “FEDERAL STIMULUS PACKAGE”

► Additional Title I Grant funds--- HUSD share=Approx. $670,000► Additional SPED Grant funds---

HUSD share=Approx. $1.1 million► Limitations: To SUPPLEMENT (add new) NOT

SUPPLANT (pay for previous M&O expense). Temporary exception being considered

► State will receive ~$1 billion for State Fiscal Stabilization Fund. Intended to offset State

budget deficit; should reduce needed cuts► Some incentive grants with lots of strings attached► Many unknowns at this time

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Remember…..It is ALL OF US against the

problem!!!!

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Q&A