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CUSD Budget update november


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CUSD Budget update november

  1. 1. Budget UpdateCarlsbad Unified School District
  2. 2. Carlsbad Unified School DistrictBudget Update: 11/17/2011Recent Board ActionsOn November 9th the Governing Board took action to reduce expenditures by approximately $2.26 million by the end of2012-13. The net effect of those adjustments lowers our current projected deficit to an estimated $8.3 million.Expenditure Reductions Item Board Decision Fiscal ImpactDelay Sage Creek Opening Open school as planned in 2013. $200,000 Reduce start-up expenses in 2012-13 by $200,000. This will require us to release staff members at later dates than we had originally intended.Reduce Administration/Management Reduce expenditures by at least $450,000 $450,000. The proposal was to eliminate at least three admin positions and the final direction focused on the total dollar savings instead of the number of positions.Reduce Middle School Village Leader Reduce the number from 18 to 12 in $15,702Stipends 2012-2013.Reduce Total Employee No action was taken as this will be TBDCompensation resolved through collective bargaining.Reduce Travel and Conference Reduce current budgets by $20,000 $60,000 and budgets in 2012-13 by $40,000. This essentially creates a condition where only “essential” travel/ conference would be approved.Budget Update 11/17/2011 1
  3. 3. Carlsbad Unified School District Item Board Decision Fiscal ImpactReduce Site and Departments Sweep $100,000 from site $614,000Accounts discretionary accounts in 2011-12. Reduce site discretionary accounts by $100,000 in 2012-13. Sweep $127,000 from centralized unrestricted accounts in 2011-12. Reduce centralized unrestricted accounts by $127,000 in 2012-13. Sweep $160,000 from ROP reserve in 2011-12.Reduce Special Education Budget Reduce contribution by $250,000 in $530,000 2011-12 and $250,000 in 2012-13 from unrestricted funds as a result of savings that have occurred due to shifting responsibilities from Non- Public Agencies and Non-Public Schools to CUSD staff. It should be noted that this is not a reduction in service, merely a more cost-effective approach. Additionally, reduce nursing service agency fees by $30,000 in 2012-13.Reduce Textbook Expenses No action was taken on this item as $0 we were unable to propose a way to remain compliant, provide necessary resources, and reduce costs below the $20 per student that we currently spend.Closing Schools Form district wide committee to $0 (pending February decision) determine best method to identify and implement closure of two schools and relocation of district office with intent to rent/lease as a strategy to generate revenue. Committee will bring specific proposal to the Board in February 2012. School closures would be implemented in 2012-13.Budget Update 11/17/2011 2
  4. 4. Carlsbad Unified School District Item Board Decision Fiscal ImpactReduce/Eliminate Classified Positions Eliminate School Administrative $128,495 Assistant, Assistant Principal (Valley) Note: This figure may be reduced by effective Feb. 1, 2012. bumping. Eliminate Accompanist (Valley) effective Feb. 1, 2012.Reduce Athletic Budget Effective 2012-13, reduce use of $20,000 charter busses by $5,000, reduce budget for substitutes by $5,000, and reduce budget for playoff stipends by $10,000.Reduce/Eliminate Contractual No action was taken on this item as $0 we feel that current purchasing and bid procedures already reduce expenses in these areas.Reduce/Eliminate Programs All program changes are effective $243,510 2012-13: Eliminate Cal-SAFE program ($69,510) Eliminate Add-Up Drug Intervention program ($30,000) Reduce GATE testing expenses ($5,000) Reduce Articulation and Curriculum Meetings ($50,000) Reduce Schoolwise Press (School Accountability Report Cards) ($4,000) Reduce Middle School Independent Study PE expenses ($10,000) and expand eligibility for Independent Study PE credit in grades 9-12. As an example, provide credit for CIF sports. Eliminate 1.0 FTE PE teacher due to decreased need for sections ($75,000).Given these reductions, the balance of the projected deficit would necessarily be resolved through reductions to totalemployee compensation (including benefits). As of November 6, 2011, the cost of 1% for all employees is $567,294.Dividing the projected deficit of $8.3 million by yields a potential compensation reduction of 14.6%.Budget Update 11/17/2011 3
  5. 5. Carlsbad Unified School DistrictMidyear TriggerOn November 16, 2011 the Legislative Analyst Office confirmed that California tax revenues are not meeting projectionsin the 2011-12 year. In fact, the projected shortfall in 2011-12 is $3.7 billion with another projected deficit of almost $10billion in 2012-13. Recall that the statewide budget is roughly $88 billion in the current year.In December the Department of Finance will provide an independent review and midyear “trigger” reductions to K-12education will be based on the most favorable of those two calculations. In January the Governor provides a budgetproposal for 2012-13.The impact on Basic Aid districts of a midyear reduction is unknown. At this time we predict that the cut would bedeferred to the following year as that has been the pattern with previous reductions to base revenue limit funding. Inspite of our anticipated implementation method, we will be monitoring the situation very carefully as it evolves. “Trigger”reductions in either the current or next year (or both) would simply increase the amount of our projected deficit.Revenue EnhancementsSeveral strategies are currently being pursued with respect to revenue enhancements that may reduce the projecteddeficit. As we have indicated in the past, these potential enhancements can only be “counted” when we have certaintyabout the revenue. Current strategies include:• Renegotiating joint-use agreements with the City of Carlsbad.• Consideration of parcel tax and/or general obligation ballot initiatives in November 2012. To get involved in the process, please visit ... This is an emerging group of concerned parents that are looking to support the school district.• Pursuing rent/lease agreements with private schools, community colleges, etc.• Selling surplus equipment/vehicles• Continued collaboration with the Carlsbad Educational Foundation: http://www.carlsbaded.orgUpdatesPlease continue to monitor the CUSD Business Services Blog for updates: Update 11/17/2011 4