Thursday, November 5, 2009

Budget Update 11-5-09

It is November and probably high time that I give you all an update on the fiscal status of the Sylvan Union School District. As you might expect, the fiscal outlook is a bit gloomy. This, of course, is a result of the continued economic crisis in California and across our country. However, along with the bad news, are some things that are encouraging. I will start with the good news.

The best news is that we are not experiencing as much of a decline in enrollment as we had projected. Last spring we anticipated a drop of 250 students. You will see by the chart below that we are only down by less than 40 students from where we were last year at this time.

The chart reflects growth in the newer schools. This is primarily because we are not overflowing students out of those schools this year.

The other good news for us is the federal stimulus money. With the infusion of over five million dollars to our budget, we have been able to avoid even greater layoffs than we could have experienced. The stimulus money is one time and our declining reserves in the next two years will reflect the loss of these funds. The chart below will give you an idea of our income to expenditure ratio. The unrestricted ending balance reflects the amount of money we are expecting to have beyond our required 3% contingency

As you can see by these balances, they will drop dramatically in 2011-12 due to the loss of the Federal Stimulus money we are planning to spread over this year and next.

We currently believe we now only need to reduce $1,000,000 for next year and $1,000,000 more for the following year. This is half what our projected target was back in June. The bad news, of course, is that we still need to cut our budget by one million each year.

Over the next few months, the Board will begin to discuss potential reductions for 2010-11. The other (potentially) bad news is the prediction that the State will be facing another 8-15 billion dollar deficit in January when the Governor comes out with his budget. We are all hoping there will be no mid-year reducing. However, the forecast looks terrible at this time.

If you are still reading, and I realize this is not fun to hear, I also want to inform you of what has changed in terms of staffing and program funding in the last couple years. I share this list with you so you can talk knowledgeably with parents and other folks in our community about what impact the budget crisis has had on our schools in Sylvan.

We have 64 less employees as of October 2009 compared to October of 2007. The following lists the number less in various categories:
Kindergarten Teachers= -8
First Grade Teachers = -5
Second Grade Teachers = -5
Third Grade Teachers = -6
Fourth Grade Teachers = -1
Fifth Grade Teachers = -1
Sixth Grade Teachers = -2
Seventh and Eighth grade teachers = -6
TOTAL less regular classroom teachers is 34

We have also reduced a number of specialty or support teachers
AT& G teacher = -1
Art Teachers = -3
Music Teacher = -5
Psychologists = -2
BTSA teacher = -1
Instructional Facilitator = -1
Counselors = -2
Librarians = -3

Other support staff reductions include:
Child care staff = -4
Paraprofessionals = -8
Grounds = -1
Maintenance = -1
Library Media Assistants = -2
Middle School Deans = -3
Business Manager = -1

The salaries of various groups were also reduced as reflected by negotiated agreements for 2010-11.
SEA salaries = reduced 1.1% (2 furlough days)
CSEA salaries = reduced 2.9% (6-7 furlough days)
Management salaries = reduced 2.9% (6.5 furlough days)

Support for the following programs has also been reduced
6th grade outdoor camp
Field Trips
Sports and Clubs (50%)
Travel and Conference (50%)
Site Allocations (10%)

This chart shows you the change in average class sizes since 2007
Average Primary Class Sizes

Kinder from 19.7 to 23.1 in 2009
First from 19.5 to 22.7 in 2009
Second from 19.5 to 21.6 in 2009
Third from 19.2 to 22 in 2009

The Board of Trustees will begin in January discussing reduction options for the 2010-11 school year. Our target is currently $1,000,000. Like last year, this will likely result in further reduction of staff. I will attempt to keep you informed of Board discussions as they are scheduled.

No comments: