MBUSD Budget Update February 2, 2011
Assumptions and Outcomes of the Governor s Budget The Governor s Budget assumes that the temporary taxes are extended by the voters for five more years The Budget also proposes that additional reductions be made in the event that the tax extensions are not approved This leaves schools in a position of needing at least two plans Option 1 flat funding reduces funding by $19 per ADA This would equate to a $120,000 loss for MBUSD Option 2 a $2 billion reduction in funding results in a loss of about $349 per ADA for the average district This would equate to a $2.3 million loss for MBUSD MBUSD will need to plan for both eventualities until the fate of the tax extensions is determined Additionally, economic changes between now and enactment of the 2011-12 Budget could also cause a revision, up or down From School Services Workshop (1/18/11)
3632 Funding This Year Federal law requires mental health services be provided for students with disabilities County mental health agencies in California have been required to provide those services for the past 26 years per state law As of February 1 st, Los Angeles County will no longer pay for these services. Yet services continue to be required due to their inclusion in individual education plans (IEPs), not to mention student need The Lawsuit on this matter goes to court on February 8, 2011 For planning purposes, District may be responsible for expenses in the 2010-11 school year School Services has advised that we can assume that we will not be responsible for DMH costs in 2011-12 and future years.
Significant Revenue Decrease (No change from 1/24/11 Budget Presentation) Budgeted Revenue 2010/11 2011/12 2012/13 Revenue Limit $ 35,388,616 $ 33,129,862 $ 33,764,507 Federal Revenue $ 2,911,015 $ 1,088,428 $ 1,088,428 State Revenue $ 7,012,983 $ 7,012,983 $ 7,012,983 Local Revenue $ 7,862,165 $ 5,798,575 $ 5,798,575 Total Revenue $ 53,174,779 $ 47,029,848 $ 47,664,493
Revenue Assumptions and Explanations LOCAL REVENUE 2010/11 2011/12 2012/13 Local Revenue $ 7,862,165 $5,798,575 $5,798,575 Local Revenue declines by over $2 million in 2011-12 and 2012-13 because the following one-time revenues may not be received again: MBEF $1.4 million MBPOA $465,000 Chevron $300,000 PTA $300,000 Continuing Local Revenues Include: MBEF $3.0 Million Rents and Leases $0.6 Million ASB $0.4 Million Reimbursements $0.3 Million Beach Cities HD $0.3 Million Local Miscellaneous $0.3 Million MBAF $0.2 Million PTA $0.2 Million Interest $0.1 Million
Budgeted Expenditures (Change from 1/24/11 : Other Outgo is reduced by $500K in 11-12 and 12-13) Budgeted Expenses 2010-11 2011-12 2012-13 Certificated Salaries $ 24,392,575 $ 24,647,575 $ 24,902,575 Classified Salaries $ 7,329,359 $ 7,376,359 $ 7,423,359 Benefits $ 8,589,095 $ 8,720,411 $ 9,192,148 Books/Supplies $ 3,330,368 $ 2,959,594 $ 2,959,594 Services $ 7,729,194 $ 7,190,486 $ 7,190,486 Capital Outlay $ 463,590 $ - $ - Other Outgo $ 2,417,130 $ 1,917,130 $ 1,917,130 TOTAL EXPENDITURES $ 53,752,311 $ 52,311,555 $ 53,085,292
Expenditures Assumptions and Explanations Other Outgo Costs 2010/11 2011/12 2012/13 Other Outgo $2,417,130 $1,917,130 $1,917,130 The Other Outgo amount is what Los Angeles County Office of Education (LACOE) bills MBUSD for costs related to Special Education services In November, the District learned that those costs may be reduced from an estimated $2.4 million to $1.9 million. In December, the District learned that DMH costs may be transferred from the County to the school district. This could result in up to $600,000 in additional costs in this fiscal year.
Deficit Spending and Ending Fund Balances 2010-11 2011-12 2012-13 2013-14 Revenues - Expenditures -$1.1 Million -$5.8 Million -$5.9 Million -$5.9 Million Ending Fund Balance $10.5 Million $4.8 Million -$1.2 Million -$7.2 Million
MBUSD Certificated and Administrative Reductions Since 2002 1.2 Nurses EL Teacher Elementary PE (5) Elementary K-3 (5) Athletic Director Deputy Superintendent Assistant Superintendent of Educational Services Assistant Superintendent of Student Services Director of Accounting Operations Supervisor Elementary Support Specialists (ESS) Instructional Strategies Coach GATE Specialist DATE Coordinator
MBUSD Classified Reductions Since 2002 Receptionist (1) Substitute Coordinator (0.5) Purchasing Tech (1) Payroll Tech (0.5) Textbook Clerk (1) Classroom Assistants (Non- Special Ed - All) EL Assistants (2) PE Assistants (2) Superintendent s Secretary (1) Office Assistants (5) Copy Room Assistant (1) Warehouse Storekeeper (1) Landscape Operations (3) Maintenance Tech (2) Delivery Driver (1) Electrician (1) Building Trades Tech (2) Business Partnerships Coordinator (1) Grant Writer (1) Band Assistants (1)
Possible Reductions for 2011-12 Reductions Recommended by Staff Energy Reduction $100,000/Year Teacher on Special Assignment (TOSA) for Response to Intervention (RtI) $70,000 Staffing based on Enrollment Projections $75,000 Total of Recommended Reductions: $245,000 1 Year Savings $735,000 3 Year Savings
Grant Funded Positions for 2011-12 These positions were added this school year, based on funding from MBEF and Chevron grants. If the funding is received again, the positions would be reinstated. TOSA 21 st Century Teaching and Learning Visual and Performing Arts (VAPA) Coordinator At-Risk Counselors STEM Program Total Increased Revenues or Decreased Cost $290,000 1 Year $870,000 3 Year
Deficit Spending and Ending Fund Balances If the District took the recommended reductions resulting in $535,000 per year in net savings, the projected ending balances would be: 2010-11 2011-12 2012-13 2013-14 Revenues - Expenditures -$1.1 Million -$5.3 Million -$5.4 Million -$5.4 Million Ending Fund Balance $10.5 Million $5.3 Million -$0.1 Million -$5.6 Million
MBEF-Funded Positions for 2010-11 MBEF Positions 66 Positions, $4.1 Million Elementary Librarians Elementary Reading Specialists Elementary Science Specialists Elementary Computer Specialists Secondary Counseling Class Size Reduction in K-3, Middle and High School Science Lab Assistant Librarian Music Current Projected MBEF Funding for 2011-12 $3.0 Million The MBEF Annual Appeal ended on January 31, 2011 To date, over $4 Million of donations and pledges
Deficit Spending and Ending Fund Balances If the District took the recommended reductions resulting in $535,000 per year savings, and If the District reduced programs by $1.1 Million per year, or if the District increased revenues by $1.1 Million per year the projected ending balances would be: 2010-11 2011-12 2012-13 2013-14 Revenues - Expenditures -$1.1 Million -$4.2 Million -$4.3 Million -$4.3 Million Ending Fund Balance $10.5 Million $6.5 Million $2.1 Million -$2.2 Million
If the state crisis worsens dramatically, the District can take actions in future years Reductions for the Board to consider in future years, if reserve funds are depleted. K-5 Class Size Increases 25:1 Does not result in savings to the District, due to increased CSR penalties 29:1 Results in considerable savings to the District $1.35 million in reduced staffing expenses An increase of $300,000 in CSR penalties. Would result in up to 18 layoffs 6-12 Class Size Increases Increase from 1 teacher for every 29 students to 1 teacher for every 31 students Would result in savings of $600,000 to the District Would result in up to 8 layoffs Total Savings to the District: 1 Year: $1.7 Million 3 Years: $5.1 Million
If the state crisis worsens dramatically, the District can take actions in future years Reductions for the Board to consider in future years, if reserve funds are depleted. Gradual Increase in K-3 Class Size Increases Kindergarten, 29:1 in Year 1 1st Grade 29:1 in Year 2 2 nd Grade 29:1 in Year 3 3 rd Grade 29:1 in Year 4 Total Savings to the District: 1 Year: $225,000 2 Years: $525,000 (Total Savings: $750,000) 3 Years: $750,000 (Total Savings: $1.5 Million) After 3 Years: $1.0 Million A Year Annual Savings
Board Workshop Discussion In planning for the worst-case scenario, where the Governor s ballot measure does not pass, should the District have further staff reductions? What other information does the Board need to make budget decisions? Do we need to plan special meetings on February 9 and/or February 23?