Budget Updates

November 18, 2009

 Background
 In 2009-10 budget, the District addressed a
deficit of $838 M
 Half of the deficit was addressed with
reductions, the other half was relieved by State
Fiscal Stabilization funds and other one time
funds
 Reductions for 2009-10 included increase in
class size norms, decreased Central and Local
Districts, limited summer school for High School
Only and reduction in force of staff
 Background
 Other mitigation measures included:
 End centrally run Title I, II, and III
programs and redirect monies to schools
 In 2008-09 on time savings were realized
in Worker’s compensation fund asset,
deferral of textbook adoption, ending
balances
 Used early retirement and vacancies to
buffer layoffs
 2010-2011
 In 2010-2011, LAUSD is facing a $480 M deficit
 $258 M of the $480 has already been identified
but needs to be finalized in early December by
the Board
 The Board priority in June was to identify a
revenue alternative or negotiated alternative
before additional cuts in 2010-11
 LACOE guidelines will not allow us to rely on yet
to be negotiated measures – conditional budget
 $258 M Reductions
 The following are measures identified in
the $258 M
 Change in basis of school financial
managers at traditional calendar schools
 Change in basis of school clerical staff
 Charge employees for parking at Beaudry
 Streamline business operations
 Consolidations and school closures
 Reductions Cont.
 ELA Textbooks – delay adoption
 Institute Furlough Days (4 recommended)
 Convert additional SRLDP classes to State
Preschool
 Eliminate Advanced Course Offerings for year
round middle schools and elementary span
schools
 Create Norm for School Librarians
 Reductions Cont.
 Reduce General Fund unrestricted school
psychologist by 50%
 Reduce elementary arts and music
teachers by 50% in 2010 and by 100% in
2011
 Half – day Kindergarten in 2011-12
 Increase in class size in K-3
 Reduce Facilities Operations budget by
5%
 Reductions Cont.
 Reduce School Police by 25%
 Reduce Transportation Budget by 10%
 Reduce Routine Repair and General
Maintenance contribution from 2.2% to 2%
 Reduction to Central Office
 Reduction of Local Districts
 Budget Reconciliation
 The Board will vote on December 8th
 Reconciliation of Next Year’s Budget
includes:
 $258.3 M new budget balancing
reductions identified in LAUSD’s June
Budget
 $49.5 M in negotiable items that do not
meet LACOE requirements
 Budget Reconciliation
 $154.4 M – The State has preempted the
use of State Stabilization funds for the
QEIA resolution in 2009-10 and high
education offsets
 $18.0 M in other net adjustments and
requirements
 The Superintendent has written a letter to
Unions requesting concessions
 Budget Reconciliation
 Requesting each Union agree to 4
furlough days ( 1 furlough day = $15 M)
 SEIU has tentatively agreed to 4 furlough
days
 To maintain current staffing and services
in 2010 requesting every employee take a
12% salary reduction ( 1% = $40 M) which
is approximately $480 M
 Lack of Concessions Impact
 Without concessions the District will see
layoffs of 7,500 to 8,500 employees with
14,000+ being noticed for possible reduction
in force
 Without concessions or new revenues that
meet the LACOE guidelines, the December
budget will contain Zero Sum Balancing
 Tentative Timeline Dates
 2010-11 Projected student enrollment data due
with projected classroom teacher FTE
reductions – Dec 1, 2009
 Projected Budget Allocations for school
purchased positions sent to schools for schools
to provide preliminary 2010-11 FTE staffing data
– Dec 1, 2009
 Schools enter preliminary school purchased
positions in the Budget Tool by January 15,
2010
 School Community Budgeting
 Decentralized funds will be allocated to
schools on a per pupil basis
 Schools will use data to determine student
needs
 School Communities will make
recommendations on services and supports
to retain based on available funding