Meeting Date:   3/8/2011 - 6:30 PM
Category:   Business/Action Items
Type:   Info
Subject:   7.3 Potential Budget Reductions for 2011-12
Strategic Plan
Policy:  
Enclosure Letter from County Office of Education
Potential cuts
Multi Year Projections without negotiable items
Multi Year Projections with negotiable items
File Attachment:  
Letter from County Office of Education.pdf
MYP10-11_20110301 with neg.pdf
potential cuts round 1 11-12.pdf
MYP10-11_20110301 wo neg.pdf
20110307 budget update.pdf
Summary The 2011-12 Governor’s Proposed Budget was submitted with an estimated 18-month budget shortfall of $25.4 billion, comprised of an $8.2 billion shortfall in 2010-11 and a $17.2 billion shortfall in 2011-12. The Governor’s proposal addresses the shortfall in three ways: (1) reducing expenditures by $12.5 billion over two years (2010-11 and 2011-12); (2) enhancing revenue by $12 billion over the same two-year period to be achieved through a June ballot measure to extend the temporary taxes enacted in 2009-10 by five years (.25 percent surcharge on income tax, 1 percent increase in the sales tax, .5 percent increase in the vehicle license fee); and (3) borrowing $1.9 billion from special funds and other one-time measures. Currently, a budget is moving forward in Sacramento that utilizes the Governor’s recommendations. However, it is very unclear whether or not it will receive the two-thirds support necessary to put the continuation of the revenue enhancements on the June ballot.
In a letter from the Contra Costa County Office of Education (CCCOE), all districts in Contra Costa County are being directed to submit a Second Interim Budget in March that assumes the tax extension fails and districts’ budgets are reduced by $350 per student. This would amount to a reduction of approximately $11.5 million for the Mt. Diablo USD. Given our current level of deficit spending and projected decreased enrollment we will need to reduce $21.9 million from our 2011-12 budget.

Attached to this agenda item is a menu of potential cuts to address the cut in State revenue. The Board will not vote on any specific reduction at this Board meeting. At this meeting, the Board will have an opportunity to review the options, ask for clarification, and recommend any additional reductions be placed on the list. The Board will vote on reduction items at the March 15th Board meeting when the Second Interim Budget is considered for adoption.

We need community support to ensure the budget recommendations made by the Governor will come to fruition, and that these recommended reductions are only an exercise necessary to meet the Second Interim Budget expectations put forth by the County Office of Education.
Funding
Fiscal Impact
Recommendation Presented as information.
Approvals:  
Recommended By:
Signed By:
Loreen Joseph - Secretary to the Superintendent
Signed By:
Steven Lawrence - Superintendent