Meeting Date:   3/15/2011 - 7:30 PM
Category:   Business/Action Items
Type:   Action
Subject:   14.4 Budget Reductions
Strategic Plan
Policy:  
Enclosure
File Attachment:  
Copy of potential cuts round 1 11-12 20110315(3) (2).pdf
Summary The Second Interim Budget must be adopted by a school Board by March 15 and then must be provided to the County Office of Education for its review and approval of assumptions. In general, the purpose of the Second Interim Budget is to:
• Verify the District is on track to meet the Average Daily Attendance (ADA) assumptions that were built into the original budget;
• Ensure that cost assumptions (i.e. fuel, electricity, health benefit, etc.) are on track with actual increases;
• Address any mid-year cuts to funding;
• Begin to incorporate the Governor’s January Budget proposal assumptions into the multiple year projections and demonstrate districts will have a positive ending balance three years out.

This year’s Second Interim Budget is particularly challenging because all districts in the County have been directed to assume the Governor’s Budget proposal does not move forward and we receive a minimum reduction of $350 per pupil. However, there have been estimates that districts could expect cuts up to $780 per pupil.

In March 2010, the Board directed staff to negotiate with our various bargaining units: a cap on health benefits; prorated health benefit contributions; and furlough days. Without these negotiated reductions and with the $350 per pupil reduction, the District will have a negative ending balance at the end of the2012-13 school year of approximately $27 million. With a health benefit cap, proration of health benefit contributions, and furlough days of 3-7-7 (three days this year and seven the next two years) included in the Second Interim, we will have a negative ending balance of approximately $4 million at the end of the 2012-13 school year. Therefore, in order to certify “positive” for the Second Interim Budget we would need to only identify approximately $4 million in additional reductions.

The savings from the recommended list will allow the District to have a positive ending fund balance at the end of the 2012-13 school year and certify positive. We will need to closely monitor the State budget process. If the Governor’s request for a June ballot does not come to fruition, we will need to identify other items on the list for future implementation. Also, because we have identified $3,380,598 in one-time reductions in order to create a balanced Second Interim Budget, we will need to identify on-going reductions in the 2013-14 school year to be included in the budget the Board will adopt in June for the 2011-12 school year.
Funding
Fiscal Impact
Recommendation Approve items 4, 5, 6, 7, 8, 9, 12, 16 and 17 and modify item 11 to the amount of $300,000.
Approvals:  
Recommended By:
Signed By:
Loreen Joseph - Secretary to the Superintendent
Signed By:
Steven Lawrence - Superintendent
Vote Results:  

Original Motion
Member (Linda Mayo) Moved, Member (Lynne Dennler) seconded to approve the Original motion 'Approve items 4, 5, 6, 7, 8, 9, 12, 16 and 17 and modify item 11 to the amount of $300,000.'. Upon a Roll-Call Vote being taken, the vote was: Aye: 5 Nay: 0.
The motion CARRIED 5 - 0
   
Cheryl Hansen     Yes
Gary Eberhart     Yes
Linda Mayo     Yes
Lynne Dennler     Yes
Sherry Whitmarsh     Yes