State Budget Update Approach to 2013-14 SAUSD Budget Development - PowerPoint PPT Presentation

State Budget Update Approach to 2013-14 SAUSD Budget Development January 15, 2013 Thelma Meléndez de Santa Ana, Ph.D., Superintendent Michael P. Bishop, Sr., CBO, Interim Deputy Superintendent Tony Wold, Ed.D., Executive Director, Business Operations Superior Standards Capital Successful Students

Purpose of Today’s Presentation • Governor’s Preliminary Budget Proposal – Why do we need to make cuts when Prop 30 tax initiative passed and the budget proposal has additional funding for education? • The District’s Structural Deficit – One-time funds have been used to defer fiscal issues – One year at a time budget strategy has expired • Revisiting Board Goals and Priorities • Process and Timeline for Budget Development Superior Standards Capital Successful Students 2

Governor’s Proposal • New method of funding base revenue limit – Local Control Funding Formula (LCFF) • Reduction of $1.8 billion in deferrals – impact on cash flow, but not new funding • Increase in Proposition 98 funding for education may slightly reduce the District’s structural deficit • Net impact may be to slightly decrease the Deficit Factor Superior Standards Capital Successful Students 3

2012-13 Budget Act – Funding Per ADA: Actual vs. Statutory Level $46.9 million in lost revenue $29.1 million in lost revenue $571 below 2007 Superior Standards Capital Successful Students 4

2007-08 versus 2012-13 • The District has a structural deficit of $45-$50 million – $571 / ADA in lost revenue = $29 million – Step/Column cost for 6 years @ 2% per year = $24 million • Since 2007-08 the amount available for operational expenses has decreased by $12 million • In 2007 the District received $5,778 per ADA unrestricted – For 2012-13 the amount has dropped to $5,207 per ADA, which is equal to $571/ADA just to get back to the rate from 6 years ago Superior Standards Capital Successful Students 5

2007-08 versus 2012-13 Unres estr tricted ed General Fund Sala lary y and Benefit Expe pendi ditures ures Analy lysis s by Year 07/08 vs 12/13 $350 Millions $300 $53 $41 $277 $273 $250 $200 $150 $100 $50 $0 2007/2008 2012/2013 Salary and Benefit Expenditures Non Salary Expense Superior Standards Capital Successful Students 6

Total Compensation Cost Per ADA Continues to Increase Unrestricted Fixed Expense VS Per Student Revenue Limit $6,000.00 Does not reflect $5,800.00 Governor’s proposed budget $5,600.00 $5,400.00 Per ADA $5,200.00 Unrestricted Total Compensation Expense Per ADA $5,000.00 Per ADA Student Revenue Limit $4,800.00 Funding $4,600.00 $4,400.00 $4,200.00 Superior Standards Capital Successful Students 7

Revisiting Board Goals and Priorities Initiatives & Activities Board Priorities • • Climate / Safety / PBIS Ensure fiscal solvency • Preserve staff • English language learners • Maintain integrity of • Implementation of programs Common Core • Find other ways to reduce • Secondary reform expenditures • School safety • Planning for sunset of • Maintain athletics and SIG and QEIA music programs • Analyzing categorical • Maintain 180 day reform instructional calendar Superior Standards Capital Successful Students 8

Process for Budget Development • Align the 2013-14 budget development upon the 7 building blocks for SAUSD Success (7 C’s) and the Board goals and priorities • Focus on operational efficiencies Superior Standards Capital Successful Students 9

Next Steps / Timeline • Board Meetings • Study Sessions • Statutory Dates • 2 nd Interim • Adopted Budget Superior Standards Capital Successful Students 10