The KSD Board of Directors passed a resolution to reduce the district's educational programs and staffing for the 2010-2011 school year due to a $9.5 million budget shortfall. They will address this through eliminating 1 support staff per elementary school, implementing a list of budget reductions, and using $2.5 million of the fund balance. As a result, certificated staff layoffs and position reductions will occur following the terms of the collective bargaining agreement, with letters to be distributed by May 15.

1. KSD Educational Program Reductions KSD Board of Directors’ Resolution April 21, 2010

2. KSD Educational Program Reductions Due to overall financial support being significantly reduced for the 2010-2011 school year, on April 21, the KSD Board of Directors determined it was necessary to reduce educational programs, services, and staff to the level of reasonably anticipated revenues.

3. KSD Educational Program Reductions As a result, the Board passed Resolution No. 1349, 2010-2011 Reduced Educational Program, which will make reductions in educational programs, as well as certificated, classified, and administrative positions for the 2010-2011 school year. In accordance with the KEA collective bargaining agreement and statutory requirements, certificated staff members who will be laid off or whose positions will be reduced, must be notified on or before May 15, 2010.

4. KSD Budget Reductions The Board determined that the $9.5 million budget gap will be addressed through three steps: I. Elementary Option A $ 2.07 M II. Budget Reduction Priority List 4.93 M III. 1.0% Fund Balance Reduction 2.50 M Total $ 9.50 M Note: At the April 21 meeting, the board directed the Superintendent to look into the potential use of an additional 0.25% of the fund balance.

6. Information provided by each principal as to the position(s) impacted by this 1.0 reduction.

8. Inventory

9. Carryover

12. Examples:

13. Funds reserved for items or services ordered in one year but paid for after the beginning of the next school year.

14. A school or department’s unspent budget capacity that may be carried over to the next year. For example, when a school saves over time for a copy machine or other big ticket item, this is where those dollars are held.

16. Examples:

17. Allocations for large-ticket items, such as a new textbook adoption or pension cost increases.

19. KSD Budget Reductions Computation of 5% test: Undesignated/Unreserved Fund Balance: $ 12,768,222 Net General Fund 09-10 Appropriation: $ 254,732,555 x 5% = Fund Balance Test: $ 12,736,628 Amount Over Requirement: $ 31,594

20. KSD Budget Reductions What’s next relative to Reduction in Force (RIF) for certificated staff?

22. Staff will be retained by seniority in categories. For purposes of KSD employment retention, seniority is determined by district-wide seniority.

23. Seniority means total years of certificated experience, not just Washington experience. There is no separate seniority by building or category.

26. The involuntary transfer process will be conducted on June 8.

28. Staff may reject the first and second offer of employment. If they reject the third offer, they will be placed at the bottom of the reemployment pool.