Thursday, June 25, 2009

Budget Update 6/24/09

On Tuesday, June 23, 2009, the Sylvan District Board of Trustees approved the 2009-2010 budget. We are required to adopt a balanced budget even though the Legislature and Governor have not come to agreement on how to close the State’s $24 billion dollar deficit.

As always, the Board of Trustees and I will continue to do our best to keep you up to date with the budget and its implications. The following is a brief summary of our approved budget, decisions made, and what we are faced with in the future.

Income
The chart below shows a decline in revenue over a five year window.

2007-2008 Actuals= 61,587,085
2008-2009 Estimate= 60,056,922
2009-2010 Estimate= 58,646,847
2010-2011 Estimate= 55,033,650
2011-2012 Estimate= 55,237,226

What this chart does not show is the infusion of one time Federal stimulus funding (below) that is included in this revenue:

2007-2008
2008-2009= $ 2,025,402
2009-2010= $ 2,794,063
2010-2011= $ 956,308
2011-2012= $ 0


Without the $ 5,775,773 from the Federal Stimulus funding, the impact on our budget would be significantly worse. The figures above represent stimulus, IDEA and Title I funding.

The following shows the level of categorical funding that has been captured to support the unrestricted budget. To capture this funding we needed to eliminate a number of categorical programs like: AT&G pullout, staff development, reduce BTSA support, and various block grants to name a few.

2007-2008 Actuals=
2008-2009 Estimate= $ 1,029,883 + $ 1,434,970
2009-2010 Estimate= $ 1,697,979
2010-2011 Estimate= $ 1,703,531
2011-2012 Estimate= $ 1,263,557


In addition, we are expecting a decline in enrollment next year of over 260 students. This is due to the economic crisis, housing foreclosures, birthrate trends and new charter school programs. The impact of this decline is factored in the revenue figures noted above.

Expenditures

Our only viable course of action has been to drastically reduce expenditures. After reducing our budget by $2.5 million in 2007-08 (with no layoffs), and cutting another $700,000 in 2009 -2010 in non-salary expenses, we were forced to develop a plan for the reduction in staff.

Between February and May we notified 62 certificated staff and 21 classified staff of their potential layoff (or reduction of hours) starting next school year. Three things happened to allow us to reduce these numbers. First, we had a number of resignations and retirements. Second, is the Federal Stimulus funding described above. This funding has allowed us to save 25 teaching positions for the next two years. The third event was the agreement by employee groups to take furlough days next year. The two furlough days from SEA saved approximately 5 teaching positions. The 6.5 - 7 furlough days from CSEA saved approximately 17 classified positions.

As of today, 45 of the 62 certificated layoff notices have been rescinded. For classified employees, 17 of the 21 notices were rescinded. Three of the classified employees were reduced by 25%. This means only one classified employee remains laid off. Some certificated staff who received layoff notices have acquired other jobs and some have accepted temporary Sylvan positions.

Ending Balances and the Future

The combination of stimulus funding, furlough days and the shifting of categorical funds to the unrestricted has allowed the Sylvan Union School District to adopt a budget with a positive ending balance for 2009-10 and 2010-11. To do this we will need to not only sustain our furlough day agreements for two years, we will need to target an additional $2 million in reductions for the 2010-11 school year.

Please keep in mind that many of the budget parameters adopted last night could change, and probably will change, in the next few days as the State approves their final budget.

Throughout these uncertain times the Sylvan staff and educational community, for the most part, have been very understanding and supportive. I would like to thank you all for your diligent involvement, inquiry, suggestions and comments. All have been helpful in our pursuit to maintain fiscal stability during these difficult times.

Finally, I encourage you to email me your questions and take a look at the documents I have added to the right on this blog.

Sincerely,

John A. Halverson

1 comment:

Greg said...

John:
You and your staff have obvioulsy been hard at work on this and seem to be wrestling with all the same things that all of us are wrestling with. Is Sylvan having to file Qualified in any of your upcoming three years?