The K-12 Education Budget Crisis

Outlook for the 2010/11

School District Budget

204/19/23

San Diego Unified- Quick Facts

• 132,000 students• 225 schools

– 119 elementary schools– 24 middle schools– 30 high schools– 15 atypical schools– 37 charter schools

• 14,815 employees– Includes 6,439 classroom

teachers

304/19/23

California’s Education Funding Disaster

• To date, California’s K-12 schools have been cut been cut $8.2 billion!– $3.0 billion in September ‘09– $2.4 billion in February ‘09

– $2.8 billion May ’09

– Billions more for 2010???

404/19/23

State Funding Cuts to San Diego Schools

• $90 million cut in 2008

• $93 million cut in 2009

• $83 million 2010 deficit

• 19% funding reduction in two years

504/19/23

SDUSD Per Pupil State Funding Decline

14% drop in per pupil funding in three years!

604/19/23

As Funding is Cut … Costs Continue to Rise

• Utility costs increase by 10-15% per year

• Salary costs rising at 2.5% per year

• Health insurance costs up 10% per year

704/19/23

How SDUSD Responded

• No Teacher layoffs in 2008– Retirements - $10m savings from early retirements– K-3 class size increase– Cut school supply budgets

• More than 250 central office positions eliminated

• $20 million central office non-personnel cuts• Streamlined operations

– Reorganized departments – Increased use of technology– Reduced outside contracts

804/19/23

Budget Cuts Impacts On Teachers and All Staffing Levels

904/19/23

Budget Crisis Continues

• San Diego Unified continues to face an unprecedented budget crisis.– $183 million cut in the last two budget years– Another $80- $100 million in cuts needed to balance

next year– Additional State budget cuts are anticipated

• The Board of education places a priority on the students in the classrooms.– Every effort will be made to minimize impacts on

students

1004/19/23

2010/11 State Budget Cuts to K-12: Potential Impacts on SDUSD

Best Case Scenario

Worst Case Scenario

1104/19/23

All Funds Budget 2009/10 (In Million’s)

1204/19/23

2009/10 General Fund Revenues (In Millions)

General Fund Total:

$1.226 Billion

1304/19/23

General Fund Operating Budget 2009/10

1404/19/23

General Fund Unrestricted Operating Budget

Total 2009/10 Unrestricted

Operating Budget

$719.95 Million

Total Salaries & Benefits

84% of Unrestricted Budget

1504/19/23

General Fund – Restricted Operating Budget

Total Restricted Budget 2009/10

$506.92 Million

Total Salaries & Benefits

77% of Restricted Budget

1604/19/23

Financial Realities

• 90% of targeted solutions must come from Unrestricted Operating Budget

• At $100 million in cuts– Represents 14% of $719 million Unrestricted

Operating Budget– Salaries and Benefits are 84% of Unrestricted

Operating Budget – Total non-salary/benefits $118 million

• Conclusion– Budget solution must include cuts to staffing levels

and/or salaries and benefits

1704/19/23

2010/11 Possible Solutions

2010/2011 Deficit (projection based on unaudited actuals 9/14/09) (63,808,459)$ 2011/2012 solutions need to balance budget (20,000,000)

(83,808,459)$

Line Budget Reduction Options Unrestricted Restricted Other Total1 Reduce Central Office Staff 4,594,436 4,781,964 9,376,400$

2 Eliminate Vice Principals Allocation (80 FTE) 8,978,576 8,978,576 3 Eliminate Magnet Programs & Transportation (105 FTE) 9,843,842 9,843,842 4 Eliminate OCILE 6,805,776

5 Balboa Park Program $1,498,461 1,498,461

6 Old Town Historical/Cultural Program $1,470,265 1,470,265 7 Palomar/Outdoor Race Human Relations Education

Program $3,037,0503,037,050

8 OCILE Transportation $800,000 800,000 9 District-wide Four Day Furlough (All Classified Excluding Bus

Drivers)3,245,000 2,006,000 649,000 5,900,000

10 Eliminate Visual and Performing Arts (VAPA) programs 4,371,092 4,371,092 11 Eliminate Athletics- 9th through 12th Grade Sports 3,158,007 3,158,007 12 Eliminate VEEP Transportation 1,132,145 1,132,145 13 Close 5 Elementary Schools 2,250,000 2,250,000 14 Eliminate Librarian Allocation (21.5 FTE) 1,910,100 1,910,100 15 Eliminate Health Tech Allocation (90.38 FTE) 3,865,165 3,865,165 16 Eliminate All Library Tech II Allocation (54.5 FTE) 2,903,215 2,903,215 17 Eliminate Seminar Positions at Cluster Schools (9.8 FTE) 874,954 874,954

18 Eliminate IB Non-magnet Elementary Schools 353,000 353,000 19 Sub-Total Non Negotiable/Consult 54,285,308 6,787,964 649,000 61,722,272

1804/19/23

2010/11 Possible Solutions – Requires Negotiations and/or Consultation

2010/2011 Deficit (updated based on unaudited actuals 9/14/09) (63,808,459)$ 2011/2012 solutions need to balance budget (20,000,000)

(83,808,459)$

Line Budget Reduction Options Unrestricted Restricted Other Total20 Budget Reduction Options Requiring Negotiations21 Certificated Management Four Day Furlough 152,474 694,606 847,080 22 Health Care Savings23 Eliminate Double Benefits When Both Spouses are

Employees 1,320,000 816,000 264,000 2,400,000

24 Increase Health Insurance Co-pay From $5 to $20 8,217,660 5,080,008 1,643,532 14,941,201 25 District Pays Kaiser Premium (Employee Opting For

Pacificare Pays Difference)5,745,918 3,552,022 1,149,184 10,447,124

26 District-Wide Salary Rollback 27 Value of 1% ($8,465,640)28 Value of 1.5% ($12,698,460)29 Value of 2% ($16,931,280)30 Value of 3% ($25,396,920)31 Value of 5% ($42,328,200)32 Value of 6% ($50,793,840) 27,936,612 17,269,906 5,587,322 50,793,840 33 < 50k 1% / 50 to 100k 3% / 100 to 150K 5% / 150k + 10%

($22,872,276)34 Freeze Step & Column 10,443,073 6,455,718 2,088,615 18,987,406 35 Class size increases (K-3 class size to 29.7 total 225 FTE)36 1st grade 4,988,327 4,988,327 37 2nd grade 4,611,148 4,611,148 38 3rd grade 4,611,148 4,611,148 39 Increase Class Size By 1 in 6th - 8th Grades 2,678,436 2,678,436 40 Increase Class Size By 1 9th to 12th Grades 3,392,686 3,392,686 41 Implement Half Day Kindergarten 1 to 29.7 17,603,429 17,603,429 42 Eliminate Elementary Prep Time 11,397,589 11,397,589 43 Teacher Four Day Furlough 8,577,945 2,537,139 966,529 12,081,613 44 Counseling Staffing Levels- Increase MS & HS Ratio By 50 1,022,039 1,022,039

45 Total Negotiations and/or Consultation 112,698,486 36,405,398 11,699,182 160,803,066

Conclusion

2004/19/23

Legislative Advocacy Priorities

2104/19/23

Education Funding At Risk

2204/19/23

Key Budget/Decisions Timeline

Month/Date Decision /Action

November Community Outreach and Information Sharing

December Community OutreachBoard Consideration of Options

January -Governor’s Budget Release-Budget allocations distributed to schools

February Board decision on staffing

March 15 Deadline - Precautionary lay-off notices to Certificated staff

April Board decision on classified staff lay-offs45 day notice required

May 14 Notices to Certificated staffGovernor’s May Revised Budget

June Final budget adoption

2304/19/23

Board Decision Options

2404/19/23

Balancing Our Budget Board decision options to face deeper funding cuts

• Higher class sizes• Special Program Cuts

– GATE– Balboa Park, Old Town &

Camp Palomar programs– VAPA– Magnet schools– Athletics

• Closing small schools• Employee salary and benefit

reductions• Staffing reductions

2504/19/23

Our Continuing Commitment

• Keep students our # 1 Priority!

• Search for cost savings• Retain quality teachers and

staff to serve students• Search for new revenues to

support educational programs

2604/19/23

What Can You Do?

• Contact Your State Legislators – Stand Up For Education!

• Visit our website www.sandi.net/budget

• Subscribe to Friday Notes • www.sandi.net/fridaynotes• Governor’s webpage

http://gov.ca.gov/

2704/19/23

Questions and Suggestions

San Diego Unified Students