San Marino Unified School District 2010-11 Budget Crisis

Joint San Marino City Council andSMUSD Board of Education Meeting

February 8, 2010

Presented by: Julie Boucher, Assistant Superintendent, Business Services

Governor’s Budget Proposals The Governor projects a $20B Deficit ~ 23% of the

State’s current budget of $86B ~ the Deficit could grow to $25B- $30B.

Assumes $8B - $10B in federal funding plus continuation of other federal funding. “‘Trigger Reductions” (specifics TBD) - if federal funding does not materialize.

K-12 Education Funding is based on complicated formulas tied to State revenues or the lack of revenues thereof. As State tax revenues continue to decline so does the amount of funding for K-12 Education.

The Governor’s Budget states that K-12 Education will be cut by $1.2 billion AND funding is “over-appropriated” by at least $2.4 billion dollars.

District Revenue Sources

The District relies on the State for 70% of its total revenues. As State revenues have declined so has funding for K-12 Education

Revenue Limit 54.67%

Federa l 3.89%

Other State5.89%

Lottery - 1.11%

Sp. Ed. - 5.70%

Foundation - 5.42%

Parcel Taxes - 17.38%

ROP - 1.19%

Lease/Renta ls 1.70%

Parents/PTA/PTSA - 3.06%

District Expenditures

Certifi cated Sa laries 45.47%Class ifi ed Sa laries

18.99%

Employee Benefi ts 17.20%

Books & Suppl ies

4.75%

Equipment0..35%

OtherOutgoing/Indirect

0.26%/-0.11%

82% of the Districts Budget funds instructional and instructional support positions

2010-11 Budget Assumptions

10.38% Reduction in State Revenue Limit Funding

15% Reduction in Other State Funding No Funding for K-3 Class Size Reduction 10% Reduction in Parcel Tax Revenues (due to increase in senior exemptions) 2009-10 One-time Contribution Contractual Adjustments for Longevity and

Educational Experience No Federal Foreign Language Grant Increase in Health and Retirement Benefit Costs Increase in Special Education Costs

Revenues

Addt’l Loss of State Funding $2,950,000

2009-10 One-time Donations $ 560,000

Decrease in Parcel Tax Revenues $ 500,000

Decrease in Revenues $4,010,000

Expenditures

Longevity & Advanced Education Adjustments $ 300,000

Increase in Health and Retirement Benefit Costs $ 400,000

Foreign Language Offerings $ 180,000

Increase in Special Education Costs $ 150,000

Increase in Expenditures $1,030,000

2010-11 Projected Budget Gap $5,040,000

Projected Budget Gap 2010-11

District Budget Facts The District receives $27.50 per day per student in

base State aid. Combined with all funding sources, this amounts to $50 per day.

The District’s funding has been cut five times in the last year, three times since passage of Measure E and more cuts are forthcoming.

SMUSD is not a “Basic Aid” district and is 20-30 years away (if ever) of becoming a Basic Aid district due to the low assessed valuations of the majority of homes (avg. assessed valuation is $620,000).

The District maintains the minimum 3% reserve as required by law.

Approx 325 or 10% of the total student population live outside the District. The majority of these students are children of teachers, firefighters, police officers, and other District and City employees. These students generate $2.0 - $2.5m per year for the District.

2010-11 Board Action Plan October 2009 - June 2010: Superintendent’s

Leadership Team Budget Strategy Meetings January – June 2010: Weekly Board of Education

Meetings, Bi-Monthly Open Session Town Hall Community Input/Comments/Discussion; Parent and Community Meetings and Communications

February 9th 2010: Formation of Budget Crisis Task Force

March 15th: Second Interim Financial Report May 15th: Governor’s May Revise June 30th: Statutory Due Date for State Budget July 1st: District Must Submit a Balanced Budget

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For more information on the San Marino Unified School District Budget, Click on the “Budget Watch” icon or link at our website: www.smusd.us

“Budget Watch” provides up-to-date information on the District budget, and briefings from the Board of Education and the Superintendent on the Budget.

San Marino Unified School District “A Legacy of Excellence”