Chico Unified School District Chico Unified School District Budget WorkshopBudget WorkshopOctober 17, 2007October 17, 2007

Jan CombesJan CombesAssistant SuperintendentAssistant SuperintendentBusiness ServicesBusiness Services

Defining the ProblemDefining the Problem

Required Reserve Level (3%) Required Reserve Level (3%) $3.2 mil$3.2 mil

Reserves Available Reserves Available 2.8 mil 2.8 mil

Shortfall 0.4 milShortfall 0.4 mil

2007-08 expenses exceed revenue by $2 2007-08 expenses exceed revenue by $2 millionmillion

For 2008-09 expenses exceed revenue by $2.5 For 2008-09 expenses exceed revenue by $2.5 million, after including any new money from million, after including any new money from the state the state

County InterventionCounty Intervention

Butte County Office of Education has Butte County Office of Education has oversight responsibility for the budgetoversight responsibility for the budget

Butte County provided CUSD with a Butte County provided CUSD with a “conditional budget approval” “conditional budget approval”

By First Interim (Dec 5 board meeting) By First Interim (Dec 5 board meeting) the budget must be brought into the budget must be brought into balance balance

First Interim Certifications - TYPESFirst Interim Certifications - TYPES

POSITIVE: The district will be able to meet POSITIVE: The district will be able to meet its financial obligations through 2009-10 its financial obligations through 2009-10

QUALIFIED: The district may be able to meet QUALIFIED: The district may be able to meet its financial obligations through 2009-10 its financial obligations through 2009-10

NEGATIVE: The district is unable to meet its NEGATIVE: The district is unable to meet its financial obligations through the end of financial obligations through the end of 2008-092008-09

In In AbsenceAbsence of Changes of Changes

Current budget will Current budget will notnot meet its fiscal meet its fiscal obligations for the subsequent fiscal obligations for the subsequent fiscal yearyear

By 2008-09 reserves will be By 2008-09 reserves will be depleteddepleted

Part of the reason a district carries a 3% Part of the reason a district carries a 3% reserve is to ensure sufficient cash to reserve is to ensure sufficient cash to operate; a state loan could be needed operate; a state loan could be needed as early as Spring, 2008as early as Spring, 2008

Pending IssuesPending Issues

Budget for 2007-08 is still Budget for 2007-08 is still under reviewunder review

The The staffing budget needs to be revisedstaffing budget needs to be revised to match the cost of personnel who to match the cost of personnel who were hired over the summerwere hired over the summer

The full impact of the CUTA negotiated The full impact of the CUTA negotiated settlement, as it relates to teacher settlement, as it relates to teacher staff development daysstaff development days no longer no longer offeredoffered

More Pending IssuesMore Pending Issues

Assumptions for Assumptions for 2008-092008-09 are being tested are being tested

Cost of increase in Silver Plan for BSSP is Cost of increase in Silver Plan for BSSP is an unknown and is a large part of an unknown and is a large part of projected deficit spending in 2008-09projected deficit spending in 2008-09

The savings from the “golden handshake” The savings from the “golden handshake”

for last year’s retirements are still being for last year’s retirements are still being evaluated (depends on staffing costs)evaluated (depends on staffing costs)

Cabinet Budget Advisory TeamCabinet Budget Advisory Team

District administrative staffDistrict administrative staff Reviewing over Reviewing over 8585 suggestions suggestions Enrollment and staffing analysisEnrollment and staffing analysis Operational costsOperational costs Costs of programs that impact the Costs of programs that impact the

general fundgeneral fund Use of categorical fundsUse of categorical funds Report will be presented Report will be presented Nov. 7Nov. 7

Who is ParticipatingWho is Participating

Andrea Lerner-Thompson – Andrea Lerner-Thompson – Board RepresentativeBoard RepresentativeJanet Brinson/Pete VanBuskirk – Janet Brinson/Pete VanBuskirk – Categorical BudgetsCategorical BudgetsCarolyn Adkisson – Carolyn Adkisson – Educational ServicesEducational Services Mike Morris – Mike Morris – Staff DevelopmentStaff DevelopmentCynthia Kampf – Cynthia Kampf – Testing and After School ProgramsTesting and After School ProgramsDavid Scott – David Scott – Special EducationSpecial EducationDavid Koll and Bob Feaster – David Koll and Bob Feaster – PersonnelPersonnelMary Leary – Mary Leary – MOTMOTMike Weissenborn– Mike Weissenborn– Facilities/Asset MgmtFacilities/Asset MgmtLeroy Christophersen – Leroy Christophersen – Risk MgmtRisk MgmtLynn Kamph – Lynn Kamph – Position Control (Staffing Budget)Position Control (Staffing Budget)Scott Jones, Jan Combes – Scott Jones, Jan Combes – BudgetBudget Vikki Gillett - Vikki Gillett - TechnologyTechnology

Research is UnderwayResearch is Underway

Certificated Staffing Certificated Staffing ElementaryElementary SecondarySecondary District OfficeDistrict Office

Classified Staffing – general fund Classified Staffing – general fund positionspositions

As compared to ratios As compared to ratios As compared to “comparable districts”As compared to “comparable districts”

Research: Operational CostsResearch: Operational Costs

Reduction of energy consumptionReduction of energy consumption Travel and conference expenses, Travel and conference expenses,

especially outside the Districtespecially outside the District Student transportation costs (busing)Student transportation costs (busing) Cost of operating food servicesCost of operating food services Cost of operating a warehouse, print Cost of operating a warehouse, print

shop and other support servicesshop and other support services

Research: Support ServicesResearch: Support Services

Counseling servicesCounseling services Library/Media/Technology servicesLibrary/Media/Technology services Health servicesHealth services Administrative supportAdministrative support

Research: Revenue GeneratorsResearch: Revenue Generators

Asset management (leasing Asset management (leasing property)property)

New Rental Income (i.e. cell towers?)New Rental Income (i.e. cell towers?) Providing services to smaller districts Providing services to smaller districts

Research: Student ProgramsResearch: Student Programs

Examine electives offeredExamine electives offered Review alternative programs and Review alternative programs and

offeringsofferings Review any special program that Review any special program that

impacts the general fund impacts the general fund Examine the way that prep time is Examine the way that prep time is

funded (Art, Music, Physical funded (Art, Music, Physical Education)Education)

OPTIONS: Class Size ReductionOPTIONS: Class Size Reduction

20:1 but average daily enrollment allowed is 20:1 but average daily enrollment allowed is 20.44 so some days can be above 2120.44 so some days can be above 21

Combination Classes (grades 3-4) are provided at Combination Classes (grades 3-4) are provided at 20:1 ~ but could be offered at 28:1 20:1 ~ but could be offered at 28:1

For K-3 we could choose to operate above the For K-3 we could choose to operate above the average of 20.44 (up to a maximum of 21.85) average of 20.44 (up to a maximum of 21.85) and lose “part of the funding”and lose “part of the funding”

Could choose “Option 2” in some settings (half Could choose “Option 2” in some settings (half day instruction at 20:1)day instruction at 20:1)

CUTA Contract ProvisionsCUTA Contract Provisions

K-3 30:1 (up to 15% can be at 33 in K-3 30:1 (up to 15% can be at 33 in K and 32 in Grades 1-3)K and 32 in Grades 1-3)

4-6 33:1 (up to 15% can be at 35:1)4-6 33:1 (up to 15% can be at 35:1)

7-12 40 students per class and 175 7-12 40 students per class and 175 students per FTE maximum students per FTE maximum

CUTA Contract Provisions, CUTA Contract Provisions, continuedcontinued

District wide up to 10% (plus or minus District wide up to 10% (plus or minus three classes) of classes in grades 4-three classes) of classes in grades 4-6 may be combination classes….. 6 may be combination classes….. These classes may have no more These classes may have no more than 28 students (than 28 students (with the exception with the exception of three classesof three classes which may be at 30) which may be at 30)

Staffing ReductionsStaffing Reductions

Due to budget constraints, the district Due to budget constraints, the district is reviewing the current staffing is reviewing the current staffing within the allowances provided in within the allowances provided in contractual agreement contractual agreement

Mid yearMid year staffing reductions are being staffing reductions are being considered for the end of the 1considered for the end of the 1stst trimester for elementary schools trimester for elementary schools and/or in place by 2and/or in place by 2ndnd semester for semester for secondary schools secondary schools

2008-09 Loading 2008-09 Loading

1.1. Staff for more combination classes Staff for more combination classes

2.2. Not fund combination classes at 3-4 at Not fund combination classes at 3-4 at 20:120:1

3.3. Project student enrollment low and staff Project student enrollment low and staff tighter than normaltighter than normal

4.4. Build in a staffing reserve in case student Build in a staffing reserve in case student counts exceed expectationscounts exceed expectations

5.5. Have a plan to place late arrivals; may Have a plan to place late arrivals; may not be in neighborhood schoolsnot be in neighborhood schools

Opportunities for InputOpportunities for Input

Confidential Budget HotlineConfidential Budget Hotline

891-3000 ext 200 891-3000 ext 200

Or email Or email jcombes@ChicoUSD.orgjcombes@ChicoUSD.org or any or any member of the cabinet level budget advisory member of the cabinet level budget advisory team team

This power-point will be posted on the website This power-point will be posted on the website for review - principals may wish to download for review - principals may wish to download and present to staff and parent groupsand present to staff and parent groups

Next StepsNext Steps

November 7 Board meeting - receive November 7 Board meeting - receive recommendations from fiscal expert recommendations from fiscal expert and budget advisory committeeand budget advisory committee

November: Consider Committee November: Consider Committee ExpansionExpansion

December 5 Board meeting - revise December 5 Board meeting - revise budget and adopt First Period Interim budget and adopt First Period Interim Report and Multi year Projections Report and Multi year Projections

Difficult Times… Difficult MeasuresDifficult Times… Difficult Measures

Discussion / Questions about the Discussion / Questions about the BudgetBudget

Opportunity for Public CommentsOpportunity for Public Comments

Opportunity for Board CommentsOpportunity for Board Comments