1. Budget Engagement ProcessJANUARY 2012

2. Budget Strategy 2012-13 Results in the development of a balanced budget for the 2012-13 school year Reflects the district goals for literacy, mathematics and student engagement Results in the development of a budget that emphasizes revenue enhancementsand expenditure reductions while minimizing the use of fund balance Developed following a review of current programs and services for effectivenessand efficiencies Places the district in a position to move toward our vision of becoming thedistrict of choice Provides the board with a carefully thought out prioritized list ofrecommendations for potential reductions Requests stakeholder input from district staff and the public Be discussed in an open and transparent process 3. Decision Making Process Map for theBudget Engagement ProcessStakeholder Input Create a shared reality of data, trends, needs and brainstorm new ideas, opportunities, etc. Assess options and provide feedback to options for refinementCreating Options Create multiple options for consideration for presentation to the choice makersDecision (Choice) Making Selection of a preferred option(s)Choice MakersOption Creators StakeholdersThose responsible for the choiceThose with specificInputexpertise, experience or Those who will be most affectedknowledgeby the choiceSchool Board + District District Leadership Representative group of Administrationstakeholders Superintendent Learning Support TeamParents Assistant Superintendents: Principals Building StaffCurriculum and Instruction, HumanDistrict AdministratorsCommunityResources, Business and Finance Additional inputAdditional inputGBEAGBEAAFSCME groups AFSCME groupsCommunity 4. Current Reality $8 million budget deficit in 2011-12 Budget deficits occur when State revenues are reduced to school districts 2010-11 reduction of $69 per student ($269 to $200) loss of $1.4M in revenues 2011-12 reduction of $734 per student ($200 to a -$534) loss of $15M in revenues 2011-12 overall deficit was $20M $12M increase in employee contributions to both retirement and health benefits 2011-12- remaining $8M deficit revenue enhancements and expenditure reductions including the use of $3.6 M from the Federal Education Jobs Fund 5. Current Reality $9 million budget shortfall for 2012-13 projected Revenues Revenues are expected to decrease by $2.1M or .8% The revenue limit increase of $50 per student will generate an additional$1M in revenue State categorical aids are expected to increase approximately $.5M Federal revenues will decrease by $3.6M due to loss of Education JobsFunding Increased Expenditures Expenditures are expected to increase by $6.5M or 2.8% Health insurance is expected to increase by $2.9M Open enrollment expenditures are expected to increase by $2M Transportation costs are expected to increase by $.3M Non-referendum debt costs are expected to increase by $.7M Other expenditures are expected to increase by $.6M 6. What steps will we take to address the projected budget shortfall for 2012-13? We will ask stakeholders to define what they value We will reexamine all departments, programs, and services for efficiencies We will create options for potential revenue enhancement and expenditure reductions in order to best support instructional programs 7. Budget Priorities Priority 1 : Adjustments to spending will impact students significantly Priority 2: Adjustments to spending will impact students moderately Priority 3: Adjustments to spending will impact students minimally 8. What Do We Value? Data collection from Stakeholders 9. Knowing $9M Must be Cut What programs and services are you most concerned about losing? 10. Looking at Our Current Reality Are there programs that can be scaled down or eliminated? 11. Looking to the Future What programs and/or services should the schools be providing that would improve student achievement and/or student engagement even if it means reducing elsewhere? 12. Cost Savings/RevenueEnhancements/Innovation What cost savings, revenue enhancements and/or innovations would result in increased funding for the district? e.g. (cost savings) Energy projects e.g. (enhancement)Advertising 13. Next Steps All input will be considered as options are created All stakeholder groups will be invited to respond tooptions created Refined options will be presented to the Board ofEducation for approval