Alameda Unified School District School Board Meeting Budget

Alameda Unified School District School Board Meeting Budget Information Update February 10, 2009 6: 30 pm

Budget Challenges • The Alameda Unified School District (AUSD) faces budget challenges in the current year 2008/09 and the years to come. • For 2008/09, there is a proposed mid-year reduction in state funding of $3 million. • For 2009/10, there is an additional projected net loss of $4 million. • For both years, that is a loss of $7 M. 1

2008/09: $3 M Loss • For 2008/09, the proposed mid-year reduction of $3 M is made up of the following: § Elimination of the Cost of Living Adjustment (COLA) of 0. 71% applied to the state revenues given to AUSD for students attending its schools. § An additional reduction of 4. 5% to those state revenues provided for student attendance in AUSD schools. 2

2009/10: $4 M Loss • For 2009/10, the net loss of $4 M is made up of the following: § $1. 3 M reduction in state funds due to the State Budget Crisis. § $0. 3 M net reduction in state funds due to less students enrolling and attending AUSD schools, and reducing the teaching staff by 8 teachers. § $0. 7 M net reduction in state funds due to students attending the new Nea Charter School in Alameda, and reducing the teaching staff by 10 teachers. § $1. 7 M in additional expenses for employee advancement on salary schedules, on-going costs from settled union negotiations, special education, utilities and technology 3

Options • How will AUSD address the projected loss of $7 M in funds? • AUSD will consider the following options: § § The Governor’s Proposed Categorical Flexibility Mandated Costs Reserve The Measure H Parcel Tax funds Budget Cuts (If the Proposed Categorical Flexibility is not approved by the state legislature) § Class Size (the number of students enrolled in each class) 4

Categorical Flexibility • The Governor has proposed to allow school districts the ability to use restricted state funds from special programs (called Categorical Programs) for “unrestricted” operational needs. • This is called Categorical Flexibility. • AUSD is meeting with staff to review Categorical Programs and determine available balances to be considered for Categorical Flexibility. 5

Categorical Program List • • • Adult Education 9 th Grade CSR K-3 CSR Economic Impact Aid English Learner (ELAP/CBET) Art & Music Grant Supplemental Counseling Pupil Retention (Cont. Ed/Counseling) Professional Develop. 6 • Teacher Programs (PAR/BTSA) • School Safety • School/Library Improvement (SLIG) • Targeted Improvement • Instructional Materials • HS Exit exam (CAHSEE) • Gifted and Talented Ed. • ROP • Child Nutrition

Other Sources • AUSD has a one-time reserve of $1. 1 M from the State Mandated Cost Programs that can be considered for the loss in the funding. • AUSD has $2. 8 M in Measure H Parcel Tax funds to be designated for expenditure. The district would use these funds to save those programs as provided by Measure H. 7

Class Size • AUSD could negotiate with its teachers’ union on class size. • Current teacher staffing ratios provide an average of the following student enrollments for most classes at each grade level: § 20. 44 students in each class in grades Kindergarten (K) through 3 rd § 29 students in each class in grades 4 th through 12 th § 20 students in each 9 th grade class for English § 20 students in each 9 th grade class for Math 8

Class Size Example • The following is an example of the financial savings on increasing class size. • A district has 3, 000 students in grades K through 3 rd. • A district places 20 students in each class for grades K through 3. • A district would need 150 teachers (3, 000/20) for the 3, 000 students at the “ 20: 1” class size. 9

Class Size Example (cont. ) • If a district places 30 students in each class for grades K through 3 rd… • Then it would need only 100 teachers (3, 000/30) for the same 3, 000 students, but at a “ 30: 1” class size. • There would be 50 less teachers (150 – 100). • The financial savings from this example on increasing class size from 20: 1 to 30: 1 in grades K through 3 rd would be about $3 M (50 less teachers multiplied by about $60, 000 per teacher). 10

“On-Going” • The $7 M loss in funding is an “On-Going” loss of funds. • “On-Going” means that the loss continues year after year. • There is no proposal to reinstate the funds next year, or any future year. 11

“On-Going” (cont. ) • The “On-Going” nature requires that the district find “On-Going” sources to cover the “On-Going” loss of funds. • It is like using your savings account to pay your monthly bills. • Eventually your savings will run out. • And you will be forced to either bring in more income or cut back on your monthly expenses. 12

“On-Going” (cont. ) • If the district covers its “On-Going” Loss with “ 1 -time” sources (like program carryovers or reserves), then it just buys the district some time. • At some point, the district will need to come up with “On. Going” solutions. • Some “On-Going” solutions are: § Through Categorical Flexibility, transferring “On-Going” funds from restricted programs to general operational uses, or § Increasing class size, or § Budget Cuts, or § A future Permanent Parcel Tax • AUSD will be considering these solutions over the next several months. 13

Public Budget Workshops • There is no easy answer to a projected $7 M loss in funds over a 2 -year period. • AUSD will have two Special School Board Meetings as Public Budget Workshops. • Please join us at one or both of the following: – Public Budget Workshop #1 • Wednesday, Feb. 11 th • 6: 30 pm to 8 pm • At Haight Elementary School – Public Budget Workshop #2 • Thursday, April 2 nd • 6: 30 pm to 8 pm • At Wood Middle School 14