Sylvan School District Fiscal Conversations

Budget Update 2-8-11

2011-02-17T16:55:00.001-08:00

Last Tuesday evening our staff shared information with our Board of Trustees regarding the impact of the Governor ' s proposed budget on SUSD. The following is a summary of 11 questions/ comments that were made:

I shared that these seem to be the best of times and the worst of times-

Best of Times

Worst of Times

Professional Learning Communities Progress

Student Achievement at its highest point

Bond money is modernizing our schools

We have a new Governor / State Board

The Sylvan Spirit is alive and well

Fiscal crisis of great magnitude

Fiscal uncertainties like no other year

California is in the fiscal basement nationally

SUSD has an all-time low baseline of support in funds and staffing

2. Summary of the Governors Budget-

He proposes a flat funding budget that is actually $19 less per ADA than this year

His proposal is contingent on the Legislature and voter approved extension of temporary taxes.

No Mid-year cuts

Flexibility of categorical funding (like Class Size Reduction) for an additional two years.

3. What are our current multiple year projections for SUSD?

This year we will need to develop two budgets. The first will be built on the Governor 's proposed budget. The second will be based on the reduction necessary if the legislature and voters do not approve a temporary tax extension. The County will require us to use the second scenario for planning purposes.

The Governor's budget with tax extensions reduce our budget by $19/ ADA reduction and a total of $140,000. A budget without tax increases will reduce our revenue by an additional $330 / ADA reduction for a total of $2.5 million. It is hoped that this will be our worst case scenario. We may know more about how this is progressing in March, at which time the Governor has asked the Legislature to take action.

Our multiple year projection is attached. Let me know if you have questions or would like help interpreting it.

4. What will we do with the Jobs Bill funding ($1.5 million)?

As required by the intent of the bill, we will save jobs in 2011-12. These will be site level certificated, classified and management positions. We also intend to discuss this with our employee groups.

5. What are our staffing needs relative to student enrollment next year? Will there be further layoffs? What will class sizes look like? Will we need to continue with combination classrooms ?

Our current staffing projections for 2011-12 reveal:

A decrease in 6 grade students at Somerset.

Small class sizes in some of our elementary sites.

A decrease in students 7/8 at Dan Savage.

Our possible Solutions are:

1) reduction of K-5 positions which will result in combination classes.

2) continue with smaller class sizes at some schools (at a cost of approximately $63,000 per FTE equating to at least $300,000).

3) Move classes to other schools. This would increase transportation costs and cause anxiety to students and parents.

At this point in time we have no other choice but to prepare for a worse case scenario, which means moving forth with a reduction of services. While nothing like layoff notices issued in the past, it will still mean 6-8 notices. Some of these notices may be negated based on retirements or resignations.

6. What has been the impact of reduced staffing in libraries, music, art & counselors ?

Library

4 Elementary libraries are open 2.5 days/week

3 Elementary libraries are open 3 days/week

2 Elementary libraries are open 4 days/week

1 Elementary library is open 5 days/week

All Middle School libraries are open 5 days/week

Counselors

One counselor per middle school

No counselors at the elementary schools

Art

With the exception of one or two grades at one or two schools, systematic art instruction utilizing district curriculum is not occurring.

Music

One music teacher per middle school

Two music teachers for 10 elementary schools

Elementary instruction is instrumental music for 5^th grade students only

With the exception of one or two grades at one or two schools, systematic music instruction utilizing district curriculum is not occurring.

7. What has been the impact of reduced staffing in grounds, maintenance, & print shop ?

Routine Repair and Maintenance funding has been cut in half

Grounds and maintenance staffing has been cut in half

Work orders have remained the same

Print shop has been reduced by 40%

8. What has been the impact of reduced staffing in site administration and office staff ?

Crossroads added an instructional facilitator, but eliminated an assistant principal. Next year, when all are on a traditional schedule, there will be close to 900 students on campus at one time. This may require the reinstatement of an assistant principal position.

With the elimination of middle school deans, the school sites administration has taken on additional responsibilities, particularly in special education IEPs, student intervention, and discipline.

Support offered to students, teachers and parents has been impacted at Woodrow, CFB and Sylvan as office staff support has been reduced.

The following chart shows the staffing changes in SUSD over the last four years:

*SUPPORT STAFFING CHANGES*	*2007-08*	*2008-09*	*2009-10*	*2010-11*
Number of Schools	13	13	13	13
Total Enrollment (January)	8262	8157	8155	8183

K-5 Music Teachers	8	6	2	2
K-5 Art teachers	4.5	3.5	2	0

K-5 Counselors	2	1	1	0
6-8 Counselors	4	4	3	3
School Psychologists	7	5	5	5

K-5 Librarians	1	0	0	0
6-8 Librarians	3	3	0	0
K-8 Librarian	0	0	1	1

K-5 Library Media Assistants	8	8	8	6.4
6-8 Library Media Assistants	3	3	3	3


Nurses	3.5	3.5	3.5	3.5
Speech Therapists	8.25	8.25	10.25	11.5
Contract Speech Therapist Services	1.79	2.79	1	0

Transportation- drivers & support	8.25	8.75	8.56	8.56

Grounds	6	5	4	3
Maintenance	6	5	4	4

Technology Support	2	2	2	2

Site Custodial	36	36	36	33.5
Elementary Office Staffing	17	17	17	15.55
Middle School Office Staffing	14.25	14.25	14.25	14.25

Campus Supervisors	6	6	5.25	5.25
Resource Officers	1	1	0	0

K-5 Assistant Principals	1	1	1	0
6-8 Assistant Principals / Deans	6	4.5	3	3
Special Ed Admin Support	2	2.5	3	3

District Office Administration	9	8	8	8
District Office Support Staff	14.8	14.8	12.8	11.6

9. How are we fairing in support of technology?

We have added approximately 700 student computers.

All certificated staff have personal workstations and majority of classified employees.

Many staff and student workstations are still running Windows XP.

Enterprise server software (File Sharing, Printing,) are three to four versions older than the current releases.

All Network switch Equipment is six years or older and end of life in terms of hardware vendor.

We are beginning to experience limitations of existing wireless networks at some sites (emphasis on coverage and not density).

As equipment ages, support needs increase.

Maintaining existing capabilities is the current focus.

10 . What have we done, and plan to do, to reduce the special education encroachment?

We have 1249 special education students. Three years ago we had 1120 special education students.

Summary of what we have done to curtail special education costs:

Even with a decrease in Special Education Revenue special education encroachment has slowed.

Year Encroachment Totals Increase from Previous Year

08-09 $6,125,436 19.3%

09-10 $6,541,554 6.79%

10-11 $6,616,576 1.15%

Reduced Non Public speech services from 3 agencies to 0

Reduced staffing in the last two years- 2 psychologists, 2 resource specialists

In 2010-11, we took services back from the county.

Reduced 1 to 1 aides from 38 to 26 (total aide hours from 215 to 151 district wide) in the last 3 years

Identified additional funding sources

Reduced LVN hours by 5 hours district wide

Reduced legal representation from 10 active cases to 0 in the past two years

Saved over $90,000 in SELPA Fee for Service Billing errors since Nov 2009

Summary of our plans to continue to limit special education costs:

Continue to analyze the cost savings of taking back services and programs

Analyze the cost savings of special education transportation

Provide comprehensive training to staff regarding legal issues

Consolidate services, Review current service models

Search for alternative funding sources

Build relationships and trust with our families

Consider additional administrative support

11. Has our energy plan made a difference?

Yes, and this is due to the diligent focus on conservation efforts on the part of our staff.

MID Comparisons show our savings over the last two years.

Yearly Comparison	2008 KWH	2009 KWH	2010 KWH	KWH USE 2008 to 2009	Savings	KWH USE 2009 to 2010	Savings	KWH USE 2008 to 2010
CF BROWN	326,240	300,400	240,800	25,840	$1,872.37	59,600	$4,318.62	$6,190.98
CROSSROADS	460,800	424,400	404,400	36,400	$2,637.54	20,000	$1,449.20	$4,086.74
DAN SAVAGE	827,250	750,750	602,250	76,500	$5,543.19	148,500	$10,760.31	$16,303.50
DISTRICT OFFICE	92,200	94,920	100,240	(2,720)	$(197.09)	(5,320)	$(385.49)	$(582.58)
FREEDOM	432,000	381,600	372,600	50,400	$3,651.98	9,000	$652.14	$4,304.12
GARAGE	71,644	56,368	11,423	15,276	$1,106.90	44,945	$3,256.71	$4,363.61
MARYANN SANDERS	334,800	336,000	262,800	(1,200)	$(86.95)	73,200	$5,304.07	$5,217.12
ORCHARD	715,200	582,962	447,936	132,238	$9,581.97	135,026	$9,783.98	$19,365.95
SHERWOOD	344,640	319,200	268,080	25,440	$1,843.38	51,120	$3,704.16	$5,547.54
SOMERSET	798,384	760,800	664,800	37,584	$2,723.34	96,000	$6,956.16	$9,679.50
STANDIFORD	266,800	239,920	200,960	26,880	$1,947.72	38,960	$2,823.04	$4,770.77
STOCKARD COFFEE	361,280	306,320	226,400	54,960	$3,982.40	79,920	$5,791.00	$9,773.40
SYLVAN	477,120	422,784	245,184	54,336	$3,937.19	177,600	$12,868.90	$16,806.08
SYLVAN RE/CENT KIT	45,520	130,120	418,200	(84,600)	$(6,130.12)	(288,080)	$(20,874.28)	$(27,004.39)
USTACH	1,068,480	1,077,120	722,880	(8,640)	$(626.05)	354,240	$25,668.23	$25,042.18
WOODROW	326,320	265,360	241,530	60,960	$4,417.16	23,830	$1,726.72	$6,143.88
	6,948,678	6,449,024	5,430,483	499,654	$36,205	1,018,541	$73,803	$110,008
					based on		based on
					Dec. 2010		Dec. 2010
					Rates		Rates
Excluding Central Kitchen	6,903,158	6,318,904	5,012,283	584,254	$42,335	1,306,621	$94,678	$137,013

A few others questions were addressed at the meeting. If you have specific questions, please forward them to me so I might use them in my next update.

jhalverson@sylvan.k12.ca.us

Budget Update 1-21-11

2011-01-21T10:51:00.000-08:00

The budget season has begun with the unveiling of the Governor’s proposed budget. As most of you already know, Governor Brown has proposed severe cuts to many portions of the budget, with the exception of K-12 education. His rationale for this is that K-12 education has already taken dramatic reductions over the last two years.

You probably also know that his budget is contingent on the passage of a ballot measure to continue temporary taxes that are currently in place. Most of us are highly skeptical of the legislatures’ ability to acquire a 2/3 vote to place this on the June ballot. If it does make it to the ballot, it will take a herculean effort to get the voters to approve the extension of these taxes.

It will be necessary for SUSD to prepare two budgets for the 2010-11 through 2012-13 school years. The first will be as the Governor has proposed and the second will include our projected budget should the tax extension fail. The first will be a tough budget, but doable. The second will see our revenue reduced by an additional $2.5 million per year. SCOE has already informed us that they expect to see a multiple year projection based on NO tax extension and K-12 schools absorbing a larger piece of the State budget deficit.

The Governor’s budget proposal does include extending flexibility for use of categorical funding for another two years (through 2014). This would include a reduction in the penalty for exceeding K-3 class size reduction levels. However, the Governor’s budget did not address the option of a reduced (to 175 days) school year. That flexibility is currently eliminated after next year.

I will attempt to keep you informed of Statewide and local budget progress as it becomes known. I encourage you to send me your questions so I might use them in a Q&A in my updates. Email to: jhalverson@sylvan.k12.ca.us .

Like the cut and paste below, I may send you pieces of information as I get them from various sources. Finally, the news headlines I send out will give you an idea of how other communities are coping with budget crisis related issues across the State.

By the Way . . . Governor Brown Declares Fiscal Emergency

On January 20, 2011, Governor Jerry Brown reaffirmed the fiscal emergency (as authorized by Proposition 58 of 2004) declared by then-Governor Schwarzenegger on December 6, 2010. In his proclamation, Brown notes the more-than $25 billion State Budget deficit and states that "decisive action is required to solve the state's persistent and severe budget problems, continue economic recovery, promote job growth, and preserve public education and the quality of life for all Californians."

In related State Budget news, the Senate and Assembly Budget Subcommittees begin hearings on the Governor's 2011-12 Budget proposals next week. The Senate Budget and Fiscal Review Subcommittee on Education will meet on Monday, January 24, and the Assembly Budget Subcommittee on Education Finance will meet on Tuesday, January 25.

Fiscal and Enrollment Update 8-20-10

2010-08-20T15:36:00.000-07:00

Here is a quick update on fiscal, enrollment, and layoff related issues in the Sylvan Union School District.

Budget Update

As you probably know, there is little movement in Sacramento regarding the State budget. The Democrats have developed a budget that will not be approved by the Republicans or the Governor. It is predicted the expected standoff will go on for weeks.

The good news of Federal money to save jobs may be coming our way in the next few weeks. Exactly how much and when is still unknown. The money is supposed to be used only for saving site level teachers, administrators and classified staff. The funding is one time and must be spent by September 2012. I will update you as we learn more.

The County has approved our budget for this year and the following two years. The good news is that, although we are in deficit spending all three years, we have a budget that will retain the 3% required contingency by the end of the 2012-13 school year. The bad news is that will need to reduce our expenditures by another 8.8 million in the next two years based on the Governor’s May Revision.

We reduced our budget by just under 5 million for this year. While it is not precise, you can link (links to the right) to the summary of reductions made for this year. This chart also compares the reductions made the previous two years as well.

We all remain hopeful that the economy will improve and funding will be restored for public education again.

Enrollment Update

Our enrollment is fairly stable as compared to last year and that is good news. Now that our students are all back we can do a little comparison to previous years. The chart below shows the end of the first week of school for traditional as a comparison point.

Enrollment Comparisons
	2010	2009	2008	2007
C.F. BROWN	416	401	461	460
SHERWOOD	516	494	445	492
SOMERSET	871	925	950	1028
STANDIFORD	473	454	458	477
STOCKARD COFFEE	478	469	470	497
SYLVAN	315	326	375	381
WOODROW	395	389	439	500
USTACH	931	928	939	900
ORCHARD	479	504	504	534
FREEDOM	697	639	560	514
SAVAGE	1037	1103	1145	1057
SANDERS	657	649	629	587
CROSSROADS	860	845	831	794

TOTAL	8125	8126	8206	8221

As most of you know, our class sizes in the primary grades are significantly higher than last year. This is a direct result of the layoffs. Our K-5 enrollment and average class sizes, as of today, are as follows:


Totals	Totals	Averages
K	882	28.5
1	806	29.9
2	894	27.9
3	833	27.8
4	856	29.5
5	867	29.9
TOTAL	5138	28.9

If you are interested in seeing actual class by class comparisons for K-5, I have posted a PDF document on this blog to the right.

Because we have reached our maximum in some grade levels and at some schools, we have begun overflowing students between schools. An additional kindergarten teacher has been hired at Standiford to deal with unanticipated grown in that area.

Layoff Update

The status of our layoffs is as follows:

Certificated:

By May 21^st, 50 positions received final layoff notices.
By June 10^th, 31.6 FTE layoffs were rescinded. This was a result of retirements (13), resignations, transfers to admin or IF positions, or granted leaves. In addition, a furlough day agreement was reached allowing a number of positions to be saved for the 2010-11 school year.
There are still 35 individuals on our layoff list, 19 from 2009-10 layoffs and 16 from 2008-9 layoffs.
From this layoff list, 7 teachers have been hired in supplemental (temporary) positions and 5 teachers (that we know of) have taken positions in other districts.

Classified:

By June 1^st, 12 positions or just over 10 FTE positions received final layoff notices.
By July, the FTE layoff list reduced to 4.37 FTE due to CSEA’s agreement to freeze salary steps and save jobs.

I encourage your questions that have not been addressed by this update. I will attempt to respond to you personally and/or include your questions in my next update.

I thank you all for your tremendous spirit and commitment to the students and your colleagues. We still remain the best and highest achieving district in our area. In spite of our economic challenges, I am confident in you all and applaud your energy and passion for serving our educational community and children.

Budget Update March 12, 2010

2010-03-12T15:45:00.000-08:00

The Board of Trustees will meet this Tuesday, March 16^th, at Savage Middle School. The Board will receive an update on the District budget and receive input from staff and the community. You can view the agenda at:

http://sylvan.csbaagendaonline.net/cgi-bin/WebObjects/sylvan-eAgenda.woa/wa/displayMeeting?meetingID=311

The latest Reduction Option List (3-12-10) has been posted, along with this update, on our blog site:

http://www.sylvanconversations.blogspot.com/

Questions and Answers

What is fair share and why is the Board considering this concept?

Fair share is a proportional comparison of targeted reductions. It compares three groups: SEA, CSEA, and unrepresented employees (confidential and management). Its purpose is to assure each of these three groups that they are treated equitably when it comes of needed reductions in positions or compensation.

The fair share concept was developed last year in response to both SEA and CSEA concern that their groups directly save positions resulting from any salary concessions that might be made. Fair share is not law or contract driven. It is a planning process for equitably dealing with difficult reduction decisions during this budget crisis.

How does fair share work?

1. A reduction target is established based on a three year analysis of projected income and expenditures.

This is currently $5,000,000 for the 2010-11 school year.

2. All non-salary or personnel reduction options are identified.

This is currently $1,798,463.

3. The remaining reduction target for salary, benefits, or positions is determined by subtract #2 from #1-

Remaining target is currently 3,201,536.

4. A percent of total salaries and payroll benefits is determined for each of the three groups.

Currently the percentages are: 67.91% for SEA, 22.55% for CSEA, and 9.53% all other unrepresented groups.

5. These percentages are applied to the remaining reduction needed (#3 above) and a reduction target for each group is established. Current targets are as follows:

SEA= $ 2,174,289

CSEA= $ 722,009

Unrepresented= $ 305,239

6. Negotiated agreements for salary reduction and furlough days are calculated and reduced from the reduction target for each group. The remaining target is achieved by identifying positions for layoff or elimination by attrition.

The District is currently negotiating with CSEA and will begin soon with SEA. The unrepresented group has submitted a proposal.

Will the Board consider creating combination classes in the future? The quick answer is yes. In recent years SUSD has avoided creating combination classes. This has been mostly in response to the difficulty of addressing the magnitude of our standards-based and comprehensive curriculum if there was more than one grade level in a class. This has been avoided in the past by busing students between schools to balance out classes. Now that we are attempting to reduce transportation and forced to consider larger classes, the issue of combination classes is up for consideration. I will share this as an option with the Board on Tuesday and you will find it on our list of reduction options on our blog site.

Can we move to a 4 day per week calendar and lengthen each day? This can only happen by special waiver from the State Board of Education. The only waivers granted so far are in extremely rural areas where transportation is difficult. We are required to have, at least, 175 days of instruction.

Can we consider not replacing principals and having one principal cover two schools? Our Board of Trustees and I have been very consistent with the position that each school should have an instructional leader with a commitment to that school. All research on effective schools identifies the importance of a committed instructional leader, fully engaged in student learning at each school. This is true in large and small schools alike. It will be my recommendation to continue this practice.

I do expect that some District level administrators will find themselves working at smaller school sites or in site support assignments next year. Unfortunately their current jobs will not go away. So, they will need to do their current job and take on site level responsibilities.

What percent reduction from CSEA, SEA and Administration would it take to save teacher jobs?

Each 1% of SEA salary reduction equals about 4.5 teachers ($63,000 average per teacher with all benefits). Under fair share, teacher reductions save teachers and CSEA reductions save classified positions.

As always, I look forward to hearing your comments and further questions.

John

John A. Halverson

Superintendent / CBO

Sylvan Union School District

(209) 574-5000 Ext 201

Budget Update 3-1-10

2010-03-01T12:40:00.000-08:00

Sylvan Staff,

As you all know by now, the Board of Trustees has decided to return all schools to a traditional calendar in 2011. The Board received over 150 comments from staff and community members. A link to these comments, minus names, can be found on our blog site.

Our blog site also has a link to a 2-23-10 update on the reduction options that are being considered. This document was reviewed at last Tuesday’s Board meeting. As you will see, we are getting closer to our $5,000,000 reduction target. However, the cuts are very deep and some depend on negotiated settlements.

The next Board meeting and opportunity for public input will be March 16^th, starting at 7:00 p.m., to be held at Savage Middle School.

This Thursday, March 4^th, Sylvan Staff and parents will participate in an important event to inform our community of the fiscal crisis and its impact on our public schools across the State and here in the Sylvan Union School District . March 4th is a statewide day of action supported by many groups, including CTA, CSEA, college students, ACSA(the Association of California School Administrators), business leaders, non-education labor organizations, the County Office of Education, the California School Boards Association, parent groups, and several foundations. There will be huge rallies up and down the state to draw public awareness to the education cuts. I encourage you to join your colleagues to “Start the Day for Students” at each of your sites. Both SEA and CSEA are organizing for this event and you have heard and/or will hear from your respective leaders and representatives on how you can participate. This is a great opportunity to “Stand Up for Our Public Schools” and professionally show our community that we care about the future of education and our students.

I am including some questions I have received lately, along with a response from me:

1. Is it possible to consider charging for bus services to help offset the transportation costs? Yes, we are allowed to charge for transportation services. However, students who qualify for free or reduced lunches may not be charged. That constitutes over 50% of our students. This, along with the added administrative expense of collecting fee and monitoring ridership, limits the potential savings of this strategy.

2. How can we keep from laying off so many people? We are identifying everything we can to cut or capture in an effort to avoid personnel reductions. You can see that list in our reduction option link. However, we are a people business with 82% of our revenue going to salaries and benefits. Ultimately we can only reduce personnel cost by having less people or paying people less.

Our major problem is the dramatic drop in our revenue. Next year our revenue per ADA will be less than what we were receiving in 2005-06. This is also a 13% reduction from what we received 2007-08.

Fiscal Year	Actual ADA	Per ADA Dollars
2010-2011	7773.00	$ 4,929
2009-2010	7772.75	$4,928
2008-2009	7841.67	$5,554
2007-2008	7868.08	$5,688
2006-2007	7634.30	$5,453
2005-2006	7610.30	$5,096
2004-2005	7625.37	$4,821

The reduced revenue is due to all the cuts from the State, driven by the poor economy. If we ALL returned to the salary level we ALL were getting in 2005-06, we would experience a reduction of about 9.6%. If we ALL took a 9.6% salary reduction we would reduce our expenditures by just under $ 4 million dollars. This would allow us to not cut ANY positions for next year and keep our class sizes at our current level. In fact, we would even have additional funds to reinstate some of our lost programs and positions.

3. Shouldn’t we consider establishing charter schools or magnet schools to retain some of our students who are leaving us? Yes. The Board of Trustees will consider establishing a commission to explore charter and magnet options at their March 16^th meeting. While it may take some time, we need to give thought to how we can enhance our learning opportunities, as well as attracting and retaining students in the future.

4. How much could we save by shortening the school year and how much could we really shorten it? The current law allows us to shorten the school year by up to 5 days with no loss in revenue. Five days for certificated is equal to $776,527. Would it make a significant difference? Five less days would obviously make an impact. However, the number of instructional days prior to State testing would not change. So, theoretically our test scores should not be impacted in the first year. Classified and administrators reduced by 6.5 days this year and it saved about $375,000. So, if everyone reduced by 5 days it would be well over a million in savings.

5. Special Education seems to be a “Sacred Cow.” Couldn’t we save jobs by taking back County run programs? So far SUSD has taken back three classes: two PH (severe physically handicapped) classes and one preformal (preschool). It was suggested at our last meeting that taking back classes from the County would save jobs by having our current staff take these positions. Two deterrents from this rationale are that special credentials are required and take backs include, by law, the County teachers in who are currently in those positions.

6. Couldn't we run it as an afterschool program, charge parents a nominal fee and use foundation money for grants for students who could not pay ( based on free and reduced lunch application.) Others would have to pay. Yes. This could work for enrichment classes or a sports program. However, no child can be required to pay. We would also need teachers for these programs

John A. Halverson

Superintendent / CBO

Sylvan Union School District

(209) 574-5000 Ext 201

Budget Update 2-5-10

2010-02-05T14:36:00.000-08:00

Sylvan Staff and Community,

Thank you for the great turnout at the Board meeting this past Tuesday. The Board will meet again on Tuesday (9^th) at 7:00 p.m.. This time the meeting will be at Sanders Elementary School. The only agenda item will be the proposed layoff resolution for certificated staff.

If you were not at the meeting you might not be aware that our first list of reduction options is now posted on the blog site. Click on the link to the right.

The following are some question I collected during the week and at the Board meeting:

1. Is there any way to keep class sizes at 22-25 next year, like this year? Yes, identify a million dollar alternative to meet our $5,000,000 reduction target that isn’t already needed to balance the budget.

2. What will the district NOT touch? What is the district’s “sacred cow?” I am unaware of any “sacred cows” in the District. We all have our own valued priorities. The Board will prioritize reduction options as a part of the process. However, until we find enough reduction options to meet our $5,000,000 target, prioritizing is useless. We need to do everything at this point. Your suggestions are essential.

3. Since there is a possibility of combination classes next year, will it be possible to transport kids to prevent this? Yes, we did that every year until this year. It does cost a lot.

4. Is closing a school a possibility for next year? Is the “time window” closed? Is there a legal deadline? There is no legal deadline for closing a school. For the benefit of our community and the related communication and grieving process, it should start in the fall. However, it is still an option for next year if the Board wants to consider it.

5. Is there an end in sight for cuts? Will 2011-2012 or 2012-2013 look any better? Right now there is no identifiable end in sight. The crisis reaches a cliff in 2011-12. At that point we are projected to be in the red with a qualified budget. A turn around will mainly depend on the economy and a State recovery plan. Most are predicting a very slow turn around in the economy.

6. Are we allowing intra- and inter- district transfers? Yes, we are planning now to continue current intras and accepting inters as soon as possible.

7. Is it true that the district office facilities were given to us in a trust that says it MUST always be used as a district office? No, that is an urban legend. We researched this issue thoroughly a few years back and found nothing to support it.

8. Is it possible that some charter school students will come back to the district if we went to a traditional schedule? It is certainly possible. In addition, we may see the return of some interdistrict Sylvan students. We currently have over 400 students leaving us on interdistrict agreement. However, this is speculative and not based on known facts.

9. Could we drop daily bus services and hire crossing guards at key intersections? This would still ensure safe travel for walking students in route to school and home? Yes, that will take some research to determine. Transportation is NOT mandatory. It currently costs $650,000 per year to run transportation and revenue is $200,000. The saving to the general fund would be $450,000. However, it could be speculated that attendance would drop for transporting between Riverbank and Modesto, as well as other outlying areas.

10. Why are you constructing at the District Office and Sylvan when there is no money? All projects for schools and support facilities are paid for out of Measure A bond money or developer fees. Neither of these sources can be used for general fund expenses by law. We are proceeding now because the cost of construction is at its lowest point.

11. Could we save money by eliminating the 2nd round of parent teacher conferences? Yes, but only for 4-6 grade teachers substitute costs. Currently, by contract, we allow one substitute day per teacher.

12. Could we ask students to bring their own supplies, as many want to do anyway? Yes, they could be encouraged but not required.

Please keep your questions coming. If I missed one of your questions this time, send me a quick reminder. I wish you all a great three day weekend.

John

Budget Questions and Answers 1-29-10

2010-01-30T07:55:00.001-08:00

I have been collecting questions from some of you and will attempt responses on a weekly basis in an update to all and a post on this blog. Please continue to send your questions.

Question and Responses

How many of last year’s 64 teachers were returned? Final # laid off? Of the 64 teachers who received notices, all but 16 were returned to full time certificated positions. Of those 16:

- 1 was offered a return (PE) but his emergency waiver had expired and couldn’t be renewed

- 1 went on a leave of absence

- 3 accepted full time jobs in other places and declined our offer of return to full time

- 5 are in supplemental positions with us

- 3 declined our offer of a supplemental position

- That leaves three people who are on our sub list only.

How many expected retirees are there for 2010? Nine people have indicated on their intent form an intention to retire this year. We are expecting 2-3 more, for a total of 12. Are they included in the list? No

Will there also be administrative layoffs? There will undoubtedly be a reduction of administration on the list of reductions. Like last year, administration will be reduced proportional to the size of the group.

Why do we need Assistant Superintendents? To do the work of assisting the Superintendent. Couldn’t they be moved to a director level? Yes, but they would still need to do the same work. What would the savings be? See the following link to the certificated management salary schedule: http://www.sylvan.k12.ca.us/index.php?option=com_docman&task=doc_view&gid=670&tmpl=component&format=raw&Itemid=33

Do we get dinged for the large classes under CSR? Yes, there is a penalty for exceeding 20.5 in each classroom. The CSR analysis chart is posted on our blog site. My very general calculation is, for every dollar reduced in layoff of a K-3 teacher, a savings of only .50 is realized due to penalties. The CSR chart will show a savings of $1,100,000 and is the result of over $2,000,000 in reduction of teachers. This is not a good way to save a million dollars. However, we do not have alternative strategies to do so.

Can we eliminate BTSA? Almost all BTSA has been eliminated this year. If we do not have any BTSA participates next year, it will be eliminated.

Will increase in class size be a problem for fire code? No. However, we will try to keep K-3 under 33 and the rest under 35.

Since only traditional sites approved the traditional calendar, would this new calendar schedule have to be re-negotiated with all schools participating? No. However, if SEA wanted to discuss alternatives after is ratified, as usual, we would be willing to discuss it.

Where is STOPS for CHANGE and what is now the grand total? The Foundation is discussing their options. The total received was $30,727.33 as of 11/1/09. This isn’t a lot of money. However, the Foundation is looking for ways to see their money grow to make a bigger impact in the future. Suggestions are encouraged.

Why won’t schools be considered for closure in 2010? School closure will be included on the possible reduction list for 2011-12. Closing a school is a VERY sensitive issue in each community. We will need to begin that discussion very early in the year. However, nothing prevents the Board from deciding to close one or more schools on very short notice.

Our minutes are well over what is required. Could we do like Salida and only work 4 days for the same pay? Maybe need to increase minutes a little. I am not familiar with any local district that has school only 4 days per week. We are all required to have at least 175 days of instruction unless you are on a multiple track.

What plans does the District have to cut the millions of dollars that the governor says must be made at the District level? It will all depend on what the term “District Level” refers. Some say this means everything but teachers and site administrators. The SUSD reduction should be about 1.5 million. Our target is $5 million. I don’t think it will be hard to show a reduction of $1.5 of that 5 million for non-teacher and site principal expenditure. I will share this information beginning at this Tuesday’s meeting.

Will there be multiple sites sharing one administrator? No, but there will likely be fewer administrators sharing multiple responsibilities.

Can additional pink slips be administered after March 15? Yes. As in this year, it all depends on how and when the State budget is approved. There is an August window that opens under specific conditions. Since we cannot be assured this window will open in August, we must plan for the worst case scenario in March.

What plans does the District have to minimize cuts that will directly affect the classroom? We are currently exploring ALL our options. No plans have been made at this point for anything. The litmus test of the impact on student learning is, and always has been, a major factor in the SUSD decision making process.

Why aren’t the ELD teachers at the middle schools supplemental? Why are their positions ‘safe’ in these layoff procedures or held as more important than our ELD teachers at the elementary level? The ELD teachers at the middle school are funded 80% from general funds because they were created to teach 4 periods of core classes to EL students. Because that served as the core class for that EL child, the child did not need to enroll in another core class (they wouldn’t need two “English” classes, only one) and, thus, the ELD teacher was part of the staffing for the master schedule. The 20% of their day was used for 6^th grade, which was not part of the master schedule. So, essentially the ELD teachers at 7-8 are not supplemental since they are built into the staffing allocation.

If all schools go to a traditional calendar could some district-wide employees then be placed on an 11 month contract versus 12 month? Yes, some employees would have reduced calendars. That is why we have a potential $100K savings. It would result in a layoff - the effects of which would need to be bargained with CSEA. Would benefits be cut? Only if the person had their FTE reduced. That
is not the same as having their calendar reduced.

Do we still have to meet the annual minute requirement if we reduce days? No. Assembly Bill 2 of the Fourth Extraordinary Session (ABX4 2 [Chapter 2/2009]) provides for a reduction of the annual minutes commensurate with the reduction in the number of annual school days. There is a formula in the bill describing how minutes are calculated. The minutes will change proportionate with the number of days reduced divided by the 180 days.

Budget Update 1-22-10

2010-01-25T07:51:00.000-08:00

On January 19th our Board of Trustees held their first study session regarding the budget for 2010-11. The purpose of the session was to get direction from the Board on issues and options they would like to see considered on their future agendas.

I informed you in my last update that the release of the Governor’s budget has caused us to further increase our targeted reduction for next year and the year after. Our target is a reduction of $5 million for next year and another 1 million for the year after. These must be on-going reductions as opposed to a one-time savings. The only good news is that there won’t be further cuts this year. However, the only thing we can be sure of is change between now and this summer. I won’t go into detail about the Governor’s budget but I encourage you to read more about what he is proposing at http://gov.ca.gov/issue/state-budget/. While the Governor states he is saving education, the added impact on SUSD is a further decrease in revenue of 1.5 million next year.

Certificated Layoffs

Like last year, we will be forced to go through a layoff process using our (hopefully) worst case scenario. On February 2^nd the Board will receive a recommended layoff list of approximately 48 certificated positions. You may recall that number was 64 last year. The premise of this list will be to prepare for the reduction of nearly every position that is not a classroom teacher or critical support position. As you know, we have already eliminated most of our positions the last two years. The reduction will include the following for a potential savings of 1.5 million:

Multiple subject 36 FTE

Music 2 FTE

Art 2 FTE

Librarian 1 FTE

Counselor 2 FTE

Assistant Principal 1 FTE

Instruct Facilitators 4 FTE

Classified and management position reductions will follow in March and April.

Class Size Reduction

Part of our layoff plan includes the further increase in class sizes at the K-3 level. This year we targeted to increase from 20-25 per class. This resulted in our current average in K-3 to rise to 22.2 per class. We are projecting a potential increase next year up to 32 per class and anticipate an average of approximately 28 per class. We estimate this will reduce expenditures by 1.1 million. Principals will have site specific projection data to share at Monday’s staff meeting. See the link to the right.

Layoff Resolution Timeline

The Board will hold a public and staff comment session at their meeting on February 2^nd. No action will be taken at this meeting. However, action will be scheduled for February 9^th to allow time for layoff notices to be prepared and delivered prior to the March 15^th deadline. The February 2^nd meeting will be held at Sherwood Elementary School and begin at 7 p.m..

Traditional Calendar

One of the cost saving measures the Board will be considering is the movement of ALL schools to the traditional calendar for the 2010-11 school year. A savings of over $100,000 per year is projected by having all schools on the same calendar. This would include Crossroads Elementary. While Crossroads is on a multiple track schedule, there are sufficient classrooms to avoid rotation this year and the same is projected for next year. Again, the Board will encourage public comment on this proposal at the February 2^nd meeting at Sherwood Elementary.

Other Issues to be Discussed

The following are other reduction options the Board has asked to discuss in future meetings or in negotiations:

1. Continuation of furlough days- Our agreement with all employee groups for furlough days was for one year. An extension of this agreement would need to be negotiated.

2. Consider additional furlough days or across the board salary reductions. Again, this would need to be negotiated. A 1% salary reduction for all employees would save approximately $323,000.

3. Reduce the Instructional Year by five days- The State will probably extend the allowance to shorten the school year by five days. This would require negotiations. A potential savings of $750,000 could be realized.

4. Sweep more Categorical program funds with the continued flexibility. Title 1 and SSIP (Site Council $) could be redirected to unrestricted. However, this would eliminate site discretionary funding.

5. Consider a modification or downsizing of our print shop.

6. Consider offering to share services with surrounding school districts. Examples might be: business services, construction management, food services, or maintenance and operations. This would be contingent on the openness of other school districts.

7. We will not be considering the closing of schools for 2010-11. However, consolidation of programs and elimination of portable classrooms where possible will be discussed.

Like the last two years, we will collect and consider all suggestions. The input from the years past resulted in numerous suggestions for reduction.

Please send your questions and/or suggestions. I am prepared to come to any site at your request to discuss these or any other issues relative to our budget planning.

Budget Update 11-5-09

2009-11-05T14:31:00.000-08:00

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.

Budget Update 9-25-09

2009-09-25T12:53:00.001-07:00

The following is the press release we sent to the Modesto Bee followed by a cut and paste of the article in today’s paper

The Sylvan Union School District has reached consensus with the Stanislaus County Schools’ Business Department regarding the satisfactory status of the District’s 2009-12 multiple year budgets. On September 10, 2009, Don Gatti, Assistant Superintendent for the Stanislaus County Office of Education, informed the Sylvan District that the County was “conditionally” approving the District’s budget due to concerns over projected ending balances in 2011-12. While the Sylvan Union School District had submitted a balanced budget in June of this year, county officials felt further clarification of reduction strategies in future years was necessary.

On September 21, the Sylvan Board of Trustees took action to clarify budget reducing strategies for 2011-12. The two revisions included improved enrollment numbers and targeted program reductions for the 2011-12 school year.

The Superintendent, John A. Halverson, met with SCOE officials on Wednesday, September 22 to clarify Sylvan’s reduction strategies. As a result of the meeting, Don Gatti announced that he would be providing the Sylvan Union School District with a new letter of budget approval without conditions. Both District and County officials agreed that improved communication efforts will avoid unnecessary multiple approval steps in the future.

Superintendent Halverson stated that the Trustees of the Sylvan District take their role in overseeing the school district’s budget very seriously. They have and will continue to make the hard decisions necessary to balance the budget each year.

While budget monitoring and discussions have been completed, Halverson stated the real issue still remains that Sylvan, like most school districts, is faced with further severe reductions over the next two years. He encourages parents and community members to visit the Sylvan Blog site on a regular basis to read budget updates: http://www.sylvanconversations.blogspot.com/.

For questions or concerns, parents and community members are encouraged to contact the Superintendent, John Halverson, who has also been serving as the District’s Business Manager for the last 16 months, at (209) 574-5000 ext 201 or email to jhalverson@sylvan.k12.ca.us.

*************************
Local
Friday, Sep. 25, 2009
Sylvan leaves county list of districts on budget watch
Enrollment decline not as steep as feared
By Michelle Hatfieldmhatfield@modbee.com
Sylvan Union School District has been removed from the county's list of five districts receiving conditional approval of their 2009-10 budgets.The north Modesto school district now has full approval of its budget after officials tallied larger-than- anticipated student enrollment and the associated increase in revenue. Although the district still is experiencing a drop in enrollment, the decline was less than estimated. Most of a district's funding comes from the state based on daily student attendance.Officials estimated that daily attendance would drop by 260 students, but now believe attendance will dip by 53.Also, the Sylvan board of trustees committed Tuesday to cutting spending by $2 million each for the 2010-11 and 2011-12 school years. Details of what gets cut will be discussed more in the spring.County officials are satisfied with the financial health of the district, said Don Gatti, assistant superintendent of the Stanislaus County Office of Education. The office oversees the budgets of the county's 25 school districts."We've always submitted a balanced budget," Sylvan Union Superintendent John Halverson said. He added that trustees felt the district was misrepresented and the financial issue "overblown.""We needed to get the right message out there," Halverson said, and officials think they did that when they met with county officials Wednesday.

Budget Update 6/24/09

2009-06-25T08:07:00.000-07:00

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

Budget Update 5-13-09

2009-05-13T09:12:00.000-07:00

The California Department of Education (CDE) released estimated allocation amounts for the initial State Fiscal Stabilization Funding (SFSF) last weekend. We now know that our one-time allocation will be $2,025,402 for phase I. Since this is 70% of the allocation to backfill our revenue limit, we expect to receive the estimated remaining $868,029 sometime this fall. This constitutes approximately $369 per ADA.

This is good news and will help to save jobs in the Sylvan Union School District. I will recommend that we split our allocation between the 2009-10 and 2010-11 school years to help balance our budget and save jobs.

In addition, you may already know that our allocation for Title I and IDEA (Federal Special Ed) has also been identified. We expect to receive $460,158 for Title I schools and estimate $1,500,000 for IDEA. Both these one-time allocations will help, even though each will carry restrictions on how the funds can be spent.

A summary of our ARRA funding projections is as follows:

Stabilization $ 2,893,431
Title I $ 460,158
IDEA est. $ 1,500,000
Total ARRA $ 4,853,589 ($619 per ADA)

Follow this link to the CDE for allocations: http://www.cde.ca.gov/fg/aa/ar/

While this is good news, we are also faced with more probable bad news. Yesterday, May 11th, the Governor announced the state faces a $21.3 billion Budget gap for 2009-10 if the Budget-related measures on the special election ballot fail. On Thursday he is planning to release two versions of the May Revision-one assuming that the special election measures pass and one assuming that they fail. He indicated that both the state and the nation are in the deepest recession since the Great Depression and that, for the first time since 1938, the state faces a decline in personal income.

The Governor estimates the revenue shortfall at $15.4 billion through 2009-10, almost double the projection made by the Legislative Analyst's Office shortly after the 2009-10 Budget Act was enacted. In less than three months, the 2009-10 State Budget, which the Governor and legislators hailed as closing a $40 billion Budget gap and providing a $2 billion reserve, is now projected to end with a $19 billion deficit. Keep in mind that, while the weakened economy is largely to blame for this new shortfall, one-third of the problem can be traced to the questionable Budget-balancing solutions the Governor and Legislature have put before state voters in this special election. Recent polling of likely voters shows these measures in jeopardy with the election fast approaching.

What does this mean for Sylvan?
Some estimates indicate that we could lose as much as $1,000 per ADA due to the economic change and failure of the propositions. This could more than negate our good news with the stimulus funding.

What are we going to do?
We will stay the course until after the election and the May Budget Revision is complete. This will probably extend into June. It is entirely possible that the legislators will renew their battle lines and entrench in partisan politics as usual. We will have no choice but to delay our decisions on rescinding layoffs until we know the impact of the election and May revision.

In the meantime, stay tuned, keep informed, vote and send me your questions.

Budget Update 4/23/09

2009-04-23T10:11:00.000-07:00

The following is provided in the Board’s and my continuing efforts to communicate the status of Sylvan Union School District’s budget and progress towards meeting mandated submission of a balanced budget.

Next Tuesday evening (April 28th) the SUSD Board of Trustees will meet again in the Sanders Elementary Multi-purpose room, beginning at 7:00 p.m.. The Board will consider their options for covering the remaining $2.2 million in reductions for 2009-10 and $2.5 million needed to balance our budget for the 2010-11 school year.

As you know, the Board has identified all major reductions possible that do not impact staff. The following chart identifies those reductions that already have the support of the Board:

The remaining $2.2 million has been separated into the fair share needed from each of our three employee groups:

The Board is in the process of prioritizing which positions will be laid off within each of the above groups in order to meet the reduction targets. They will give direction to me on Tuesday evening. Click on the "Board's Prioritization Form" to the right to see the options being considered.

Three variables could change the targets above:

1. Employee groups could propose a salary reduction for all members in that group. So far the “Unrepresented Groups (Management and Confidential)” have proposed a 3% reduction for next year. CSEA has also met and been authorized to negotiate changes in calendar and/or compensation in an effort to minimize layoffs within their group.

2. The Federal Stimulus funds could be received and, given flexibility, could be applied to reduce our reduction target for the next two years. At this time it is uncertain how much or when this would happen.

3. A lack of passage on May 19th of budget bills could increase the cuts to education even further.

As always, send me your questions or suggestions.

John Halverson

SUSD Budget Update 4-3-09

2009-04-03T13:22:00.000-07:00

The SUSD Board of Trustees held a study session and comment forum at Sherwood Elementary School last Tuesday evening. No action was taken and the following is a summary of that discussion:

Class Size Reduction- Revisited

Another version of class size increases in K-3 was reviewed. This version established an upper target average class size in any school or grade level of 25. This version, now posted on this blog site to the right, calculates a projected District average class size at K-3 of 21.72 students per classroom. It targets a net savings of $450,000, and a reduction of 17 teaching positions. This version is named CSR- 19-25. Another version has been calculated since the study session, also posted, and named CSR- 20-30.

Master Reduction List

The Board received back the results of their survey on the many suggestions received from the Sylvan staff and educational community. In this survey, the Board considered whether they wanted to include the suggestion or not on their final prioritization list. The suggestions were categorized into three areas:
1. Suggestions that a majority of the Board felt should be included in their priority list.
2. Suggestions without a majority
3. Suggestions with a majority that did not have an immediately determined savings.

This list is now posted on this blog site.

Remaining Targets

The Board reviewed the following chart to determine what their potential remaining target will be for reduction of staff. Please note that if reductions are one-time only, like in 2008-09, the reduction will not carry across to the following year.

The Board considered what could be moved from categorical programs to the unrestricted fund this year ($1,550,952), next year ($656,895) 2009-10, and the year after ($679,779) 2010-11. The Board also considered additional suggestions and reduction plans previously considered in 2008. Details of these suggestions are also found as a link on our blog site and titled “Reduction Options.”

Fair Share

The Board had previously asked administration to meet with SEA and CSEA to consider, in negotiations, possible salary rollback or furlough days as an option to offsetting staff layoffs. It was reported to the Board that a joint meeting with SEA and CSEA took place on March 18th. No decisions were reached and options are still under consideration by all.
Administration reported that both SEA and CSEA expressed concern that any potential salary reductions reflect a sunset date and are directly linked to saving positions only within their respective employee groups. I suggested, and the Board agreed, to consider a fair share reduction strategy when reducing positions or considering salary proposals.

Fair share would work as follows:
1. Identify targeted reductions needed in each year
2. Reduce target by non-staff related reductions as prioritized by the Board
3. Divide the remaining target into proportional “fair shares”
9% - Unrepresented groups (Management / Confidential)
22% - CSEA- remaining classified employees (non-management)
69% - SEA- certificated (non-management or temporary certificated)
4. Board prioritizes staff reductions based the fair share portions of the remaining target.

This would allow each group to consider salary or furlough options and assure a direct and proportional impact on the groups they represented.
The chart above suggests what that remaining target might be. It was pointed out to the Board that the remaining target would undoubtedly change based on the May election impact and Federal Stimulus. However, both these issue will take some time to determine due the uncertainty about how much we will receive and when we might receive it. Again, this fair share data is posted on our blog site.

As always, I welcome and encourage your questions. Our next Board meeting and budget discussion will be held next Tuesday, April 7th, starting at 7:00 p.m. at Sanders Elementary School.

Budget Update 3-20-09

2009-03-21T07:37:00.000-07:00

At their meeting this week, the Board of Trustees continued their discussion regarding our budget crisis and planning for reductions. The following is a brief summary of the discussion, reports, direction given and future meetings:

Budget Suggestions

After soliciting suggestions from groups and individuals on ways to reduce expenditures, a list of 155 suggestions was compiled. The suggestions were grouped into the categories of:
1. Programs
2. Services
3. Materials
4. Conservation Practices
5. Efficiency Practices
6. Staffing Levels
7. Salaries / Benefits

I looked at each suggestion and added a potential $ savings, if I could determine it. Additional comments on rationale were added and I concluded with my recommendation to the Board regarding each suggestion. This list is posted to the right.
Each Board member will be returning this list to me next week indicating whether or not they want to see that suggestion on their final list for prioritizing in April.

The Board will discuss these suggestions on March 31st, along with the additional suggestions I have given them and those they generated last year. This March 31st study session will be held at Sherwood Elementary School starting at 7:00 p.m. Public comment will be invited immediately following the study session.

The Board’s list of possible reductions will be compiled by April 7th. Each Board member will submit their personal priorities from this list. The Board will analyze and review their collective priorities for a final decision at the April 28 Board Meeting.

District Office Administration

The Board asked for a comparison of District Administration levels compared to other districts. One study from our area was completed by the Patterson Unified School District in January. The second study was done by our District back in September. Both studies are posted on the blog. As in all previous studies of this nature, the results indicated SUSD continues to retain the fewest number of administrative staff per enrollment of any comparison group.

Class Size Reduction

The Board asked for an analysis of the potential savings to implementing the new flexibility in exceeding 20:1 in our K-3 classrooms. The analysis presented and posted on this blog site compared the impact of increasing class sizes based on the number of students projected next year in each grade level at all schools.

This analysis suggests that by increasing from 20:1 to an average of 22.5:1 the number of teachers needed would reduce by 21. The penalties associated with exceeding 20 would cause a loss of 60% of the CSR revenue. However, the net savings, after reduction of staff, would be approximately $540,000. The Board reluctantly agreed that we should continue to consider K-3 class size increases as an option as we look for ways to find $5.4 million in cuts this spring.

Please email your questions regarding any of these topics and I will get back to you as soon as possible.

Meeting With SEA and CSEA

The Board asked that SEA and CSEA be invited to a meeting to discuss the possibilities of salary rollbacks or furlough days. That meeting took place on Wednesday of this week. Information was shared and no decisions were made pending further discussions.

Future Meetings

April 7th , 7:00 p.m. at Sanders Elementary School
April 28th, 7:00 p.m. location to be determined
May 19th, 7:00 p.m. location to be determined
June 9th, 7:00 p.m., location to be determined

Invitation to Submit Budget Suggestions

2009-02-25T11:35:00.000-08:00

Last night the Sylvan Union School District Board of Trustees began their journey to balance our budget in light of the newly signed State budget. The Board heard that they now must find $2.5 million in reductions to next year’s budget. In addition, they must also identify another $2.8 million in reductions for the 2010-11 school year. This reduction of $5.3 million must all be determined by June of this year to be included in our multiple year budget, as required by law.

The Board has asked that I invite you, as representative groups, to submit your suggestions for their consideration as a first step in our process. The Board will meet again on March 10th in a budget study session. They have asked that I gather suggestions from groups in our educational community on specific, cost reducing, strategies for their consideration.

On behalf of the Board, I would like to invite the following representative groups to submit suggestions to me, in writing, by March 9th:

- Employee Unions (SEA and CSEA)
- Unrepresented employee groups (Management and Confidential)
- School Staff
- Department Staff (M&O, Transportation, Food Service, District Office, Child Care)
- PTA/PTO groups at each school site
- Sylvan Educational Foundation
-Other common interest groups in the Sylvan educational community

While you may submit suggestions as individuals through this blog by emailing jhalverson@sylvan.k12.ca.us , the Board is asking that each representative group submit their own list of suggested budget reductions.

Suggestions should include specific anticipated savings and whether it is a one time or on-going savings. I can provide you fiscal information regarding any of your suggestions. I am available to meet with and/or answer questions or provide information to any and all of you who may be considering submitting suggestions to the Board of Trustees.

Please submit your suggestions directly to me. The Board will ask me to do a fiscal, feasibility and legal analysis of each suggestion before it is submitted to the Board. Again, the first opportunity for the Board to consider your suggestions will be on March 10th. I will need your suggestions by the 9th for inclusion at this meeting.

John Halverson
Superintendent / CBO

Budget Update 2/20/09

2009-02-20T15:03:00.000-08:00

It now appears that we will have a State budget. We are in the process of interpreting this budget and its impact on SUSD. This will take some time since many programs will be impacted.

I have rescheduled my State of the District to allow time to prepare to share with all of you the impact on our District. The State of the District is now scheduled for March 9th, 4:00 p.m. at Ustach Middle School. Please take a look at the other planned meetings that are posted on this blog site to the right.

Next Tuesday’s (2/24/09) Board meeting will be held at Mary Ann Sanders Elementary School with open session starting at 7:00 p.m.. Along with the Board’s normal agenda, they will discuss the budget update, give directions on future budget meetings and consider (no action) other budget reduction options.

The following are a few key highlights regarding education that have been gleaned from the new State budget. This information will also be shared with the Board at our next meeting next Tuesday, 2/24/09. Please don’t hesitate to email me if you have questions.

John Halverson
jhalverson@sylvan.k12.ca.us

KEY STATE BUDGET HIGHLIGHTS

Early action on 2009-2010 budgets: This is considered an “18 month budget” because is covers the mid-year “adjustments” to the current year budget (2008-2009) and includes a full 2009-2010 budget. In other words, the good news: the Legislature will have adopted the earliest state budget ever – a full 5 months before the start of the next fiscal year.

Unprecedented local flexibility for schools: For schools, the local flexibility authority granted is unprecedented. There is very broad local flexibility covering 53 categorical programs, including significant loosening of K-3 Class Size Reduction class-size ratios. Most of the categorical flexibility provided is in place for anywhere from 3-4 years beyond the current year.

Reduced budget year cuts to education: The cuts for the 2009-2010 education budget are less than the governor proposed and what the districts expected, based on the governor’s proposal.

Additional deferrals: There are $2.7 billion in additional “deferrals” of payments to schools, beyond the ones proposed by the governor and the Legislature earlier this year. This means we will be delayed in receiving some of our state allocations.

Special Election in May: May 19 is the scheduled date for the special election placing several of the key provisions of the budget before the voters. Implementation of this budget is dependent upon voter approval of these provisions. Seven days thereafter, the governor will release his May Budget revision, which will reflect updated revenue estimates, as well as the fiscal impacts of the voters’ decisions on key components of this budget. The legislative budget subcommittees will then be charged with making any needed adjustments. So we will likely see further budget action after the very important month of May. In other words, failure of these provisions at the polls or a worsening economy could change the budget plan.

Current year funding: Current year (2008-2009) K-12 funding cuts total the same level as proposed earlier by the governor (about $1.9 billion). They include the elimination of the current year 0.68% revenue limit COLA, but, unlike, the governor’s proposal, the remainder of the cut is split evenly between revenue limits and categoricals with half coming from revenue limits (a little over 2% additional cut) and the remainder through a 15% cut to specified categorical programs (outlined in detail below).

The estimated revenue limit deficit factor for the 2008-2009 increases to 7.844% for school districts which equates to a net decrease this year of 2.2%.

The estimated revenue limit deficit factor for the 2009-2010 is 13.094% for districts which equates to an additional .75% cut.

Categorical program flexibility: The budget agreement provides unprecedented categorical flexibility to schools, beginning in the 2008-2009 year through 2012-13. The proposal divides existing categorical programs into three groups or “tiers”.

Categorical Programs in “Tier I” receive no funding cut and there is no “program flexibility” in the use of funds and no statutory requirements can be waived. These fully protected programs in SUSD include:

-Child Nutrition - Home-to-School Transportation
-Economic Impact Aid - K-3 Class Size Reduction
- Special Education

Categorical Programs in “Tier II” will receive a funding reduction of approximately 15% this year and another 4.9% next year across each program, but there is no program flexibility, with the programs to be operated in accordance with current statutes. Our programs include:

- State Testing -English Language Acquisition Program

Categorical Programs in “Tier III” include a total of 43 programs not included above. These remaining programs include major programs such as Gifted and Talented, Professional Development, Teacher Credentialing Block Grant, Instructional Materials, Targeted Instructional Improvement Grants, summer school, School and Library Block Grants, and CBET are among the programs in Tier III that we have in the Sylvan Union School District. These programs will each sustain a 15% cut this year and another 4.9% next year and, in addition, we are granted “maximum flexibility” to use funds from these programs for any educational purpose, including unrestricted general fund purposes. Again, this flexibility is in place for the current year plus for additional four years.

Language in the budget bill does not specify that current teacher credentialing requirements linked to the BTSA program will continue to remain in place (Teacher Credentialing Block Grant). And, there is specific language in the budget bill clarifying that school districts do not have to meet current requirements to purchase newly-adopted instructional materials in FY 2008-2009 and 2009-2010.

K-3 Class Size reduction Flexibility

Technically, there is no change to the statutory requirements of the K-3 class size reduction program. However, changes have been made to the penalty provisions should a class size exceed the current 20.4 to 1 ratio. Currently, a school district loses all CSR incentive funding ($1071/student) for an eligible class if it exceeds an average of 20.4 students. The changes to the penalties will provide significant flexibility for school districts to adjust class sizes and continue to receive current funding levels minus the associated penalty percentage.

The following K-3 CSR penalty levels would be in place for the 2009-2010 year plus three years:

Up to 20.4: No penalty
20.5 – 21.5: 5% penalty
21.5 – 22.5 10% penalty
22.5 – 23: 15% penalty
23 – 25: 20% penalty
Over 25 students: 30% (there is no upper limit/cap)

The bill specifies that districts are only eligible to receive funding under these relaxed penalties if they were participating in the K-3 CSR program as of December 10, 2008.

Access to prior-year categorical reserves:

The budget authorizes districts to access ending fund balances as of June 30, 2008 (from the 2007-2008 school year only), from most restricted, categorical program accounts – to use for any educational purposes. The programs we have that are “protected” from such access are:

- Economic Impact Aid (EIA) -Instructional Materials
- Targeted Instructional Improvement Grants (TIIG) - Special Education
- Supplemental Instruction - Home-to-School Transportation

Routine Maintenance Reserves: The amount of funding school districts are required to set aside in “routine restricted maintenance accounts” is reduced from 3% to 1% of the district’s general fund budget for the 2008-2009 year plus 4 years.

Deferred Maintenance: The local .5% statutory match for deferred maintenance is eliminated for the 2008-2009 year plus 4 more.

Reserve for Economic Uncertainties: The budget bill makes no changes to current law requirements for district minimum general fund reserves for economic uncertainties. This means we will still be required to maintain a 3% contingency.

Impact of federal stimulus funding: This funding will provide $789 billion to boost the national economy. While there will be billions of dollars provided for education, these resources may have smaller than anticipated impact on reducing the size and magnitude of the state reductions in education funding, simply because the state could use federal dollars to further reduce state spending for education.

The current stimulus package contains funding dedicated to a provision called the “State Stabilization Fund.” This funding will be allocated to the local school districts and/or higher education using existing funding formulas, which could be used to backfill cuts, prevent layoffs, and modernize schools as well as other purposes.

However, these funds will be allocated to the governor to determine how they will be spent. The state Legislature will probably also take part in deciding how best to use those resources. A substantial portion of that money may be used to avoid additional state borrowing to balance the state budget – and to help build the state’s general fund reserves.

Conclusion
Many questions still remain regarding what this budget language means and how we will implement it. We will be diligently working to interpret this budget and will attempt to keep all informed as we proceed through this spring and our budget planning in the Sylvan Union School District.

February 9th Budget Questions and Answers

2009-02-09T17:47:00.000-08:00

Here are seven (7) questions sent to me. Please send your questions via email or comment on this blog.

1. If I lose my job in May before a state budget is passed, will I get my job back in the event of the state’s budget getting back on track? Answer: When you are laid off, you are placed on a 39 months rehire list. Rehires are made in the reverse order of layoff. You have rights of re-employment for any position that becomes available for which you qualify.

2. Are temporary teachers counted in the number of layoff? Answer: No. Temporary teachers are given a one year contract and are not placed on the seniority list. Temporary teachers are generally funded by categorical programs and are subject to reduction based on categorical funding.

3. Can any administrator, regardless of hire date, bump a certificated employee? Answer: No. Administrators who initially worked as a teacher in the District retain their seniority date based on their hire date as a teacher. Administrators who were not teachers in the District can earn up to, and no more than, three years of seniority as a teacher.

4. What is the protocol regarding teachers with the same hire date. How does credentialing and units play into it? Answer: The Board will consider a resolution at the next meeting to establish the criteria to determine the order for same day hires. The resolution includes the following criteria:
1. Breadth of credential(s)
2. Teaching experience at different grade levels
3. Teaching experience in different subject areas
4. Professional preparation (i.e., advanced degrees, continuing education in assignment related subject areas)
5. Teaching experience at more than one school site within the District
6. Teaching experience outside of the District
7. Random order selection (when all other factors are equal)

5. Will only elementary teachers with multiple subjects be considered for potential layoff? What about single subject teachers? Answer: No. The current resolution that will go to the Board on the 17th includes the following:

33 FTE- Multiple Subject (33 FTE identified for elimination; Additional 13 FTE displaced under bumping rights)
7 FTE- Music
4 FTE- Art
2 FTE- Librarians
1 FTE- Counselor
2 FTE- Deans
1- K-5 Assistant Principal
1- BTSA Teacher
.85- FTE- AT & G Pullout K-5
5 FTE- Instructional Facilitators
3 FTE- 6th Grade (Middle School) Electives

6. What are the incentives for early retirement? Will the March 1st deadline for notice of retirement be extended? Answer: Currently there are no plans for early retirement incentives. We have had three inquiries to this concept and we will continue to consider it in the weeks to come. The March 1st deadline to inform the District of retirement, in order to receive post-retirement health benefits, can be extended by mutual agreement with SEA.

7. Is it certain that there will be an elimination of Art/Music teachers in grades K-5? Answer: No. We are only opening our options due to the March 15th deadline. However, it will more likely be necessary if the State does not grant the District broad flexibility in the use of categorical funds.

February 5th Budget Update to Staff

2009-02-09T17:39:00.000-08:00

Sylvan Staff,

Tuesday night our Board of Trustees met and considered the resolution I presented to them to notice 60 certificated employees of possible layoff. As you probably know, the Board tabled this action until a special Board meeting to be held on February 17th. A location and time will be distributed in one of my future updates. The layoff notification is required to be completed prior to March 15th. If notification is not made prior to this date, no layoffs can be made for the next school year.

First of all, it is most unfortunate that any consideration for layoff is necessary. Second, we are forced to begin the process without any real knowledge about our budget status for this year or next year. This is like walking blindfolded through a minefield. All we really know is that the economic situation is dire and the District must be prepared to cut as much as $ 4 million dollars or more from next year’s budget.

At the meeting I was asked, “Why are teachers being singled out for reduction while no other reductions are being considered?” This is an understandable question and concern. The answer is a matter of the timing of events that need to occur according to the Education Code. In fact, many additional reductions will be considered in the weeks to come. To help answer this question I put together the timeline below:

February 17th- The Board authorizes the District to deliver notices for potential layoffs.
February 23rd- Superintendent presents and addresses questions regarding the impact of the State deficit/budget plan(if known) on SUSD. Meeting or Webcast TBD
February 24th- The Board discusses potential reductions to classified positions and other reduction options (may vary based on decisions made at the State level). The Board approves the seniority lists and considers a resolution for tie breaking criteria.
Feb. 25th–Mar.13th- District staff meets individually with all certificated employees receiving notice of potential layoff
March 10th- Possible Board study session on the budget
March 17th- Board meeting- Discussion of all potential reductions
March 31st- Tentative 1st public forum on budget reductions
April 7th- Board meeting- Further discussion on potential reductions, direction on potential classified layoff notices
April 14th- Tentative 2nd public forum on budget reductions
Apr 20th–29th- District staff meets individually with all classified employees receiving notice of potential layoff
April 28th- Board meeting- Board gives direction to staff on reduction priorities
May 12th- Special Board meeting- final direction on certificated & classified layoff
May 15th- Certificated layoff becomes final
June 9th - Board meeting- Board gives final direction to staff on 2009-10 budget
June 23rd - Board meeting- Board approves final budget for 2009-10
June 30th- Classified layoff becomes final

As you can see, most of the discussion and decision making takes place in March through June. The period of time for certificated layoffs closes long before a full array of decisions can be made. Therefore, we need to keep our options open through the full decision making timeline. The shaded dates represent future opportunities to hear and/or have input regarding budget decision making.

Here are some facts relative to the process of layoffs:
Notices will be given on the basis of seniority as shown on the seniority list.
Notices will be delivered in person by David Holtz or John Halverson (see timeline above).
Actual layoffs for the 2009-10 school year are not final until May 15th.
The actual budget adopted by the State is expected to impact the number of final layoffs.
Decisions on other SUSD reduction options determined in March through May are expected to impact the number of final layoffs.

Again, I encourage your responses and questions. I am preparing a Q&A to go out tomorrow from the many questions submitted to date.

Sincerely,

John Halverson

January 28th Budget Update to Staff

2009-02-09T17:35:00.000-08:00

Dear Sylvan Staff,

I am writing to give you all an update on our current response to the State budget crisis. This cannot be done with a short explanation. So, I hope you bear with me and read on.

Last night I met with the Sylvan Board of Trustees in a study session. The session had two purposes and lasted 90 minutes:
1. To communicate the impact of the Governor’s budget proposal on SUSD.
2. To establish a target for reduction of “Particular Kinds of Services” for certificated employees.

Here are the facts regarding the impact of the Governor’s budget on SUSD.
This year’s budget will be reduced by 4.5% or $2,000,000.
Next year’s budget will be reduced by 2.2 % or $1,000,000.
At the same time our unfunded expenses continue to rise:
Step and column for all employee groups- $700,000
Health benefits increases- $300,000
Loss of funding due to our students going to a charter school- $200,000
Increased costs and numbers of special ed students - $1,500,000

If you do the math you can see our budget has taken a broadside hit of $4.7 million this year and we can expect nothing different for next year.

For those of you who don’t want to read further, here is the short version:

Based on the Governor’s budget, the District must cut $4 Million for 2009-10 and another $3 Million for 2010-11. (This is HUGE)
85% of our budget constitutes people. Unfortunately, most of our cuts need to be people.
Many decisions will need to be made this spring and the State budget is subject to changes along the way.
Reductions of certificated staff must be determined in February and notices given by March 13th. Classified decisions come later with a 45 day notice.
Reductions of 58.8 certificated positions are recommended for notification. Scroll down a couple pages for specific positions.
The SUSD Board will consider a resolution to accomplish this next Tuesday night.
As more information on the State budget is determined, or alternative budget reductions are decided Feb-May, the number of reductions may be reduced.

The issue we face is: what can we do to withstand such a massive reduction and out-of-control increases? I will address the issues in reverse order:

Special Education Increases- Due to Sylvan’s excellent reputation, the District has become a magnet for families with Special Needs children. Like in every aspect of our District, we go above and beyond in the support of children. For special education this comes with unfunded Federal mandates and decisions made in IEP meetings every day. Almost 22% of our budget or $14 million goes to special education. Unfortunately $6.8 million is unfunded and must be taken from our unrestricted funds to pay for this encroachment. While most districts are experiencing the same problems, ours is disproportionate to other districts.

What can we do about this? There is no short-term solution since it is a matter of federal law that we provide a “Free and Appropriate Education” for ALL students. The long term solution is to commit knowledgeable and trained staff to attend all IEP meetings and make informed decisions that are reasonable and responsible regarding the level of services provided on a case-by-case basis. This will take time, training, and persistence by our expert staff and leaders.

Loss of funding due to charter schools- This results from a quirk in the law recently established. It says that if a student leaves a school district to attend a charter that this same district denied, said district cannot claim declining enrollment revenue for that student. The State sees this as double dipping. This should not be such a huge issue in the future as long as new charters are not established in our District while we are declining at the same time.

Health Benefit Increase- Unless we reach agreement between both unions and the District to modify our current health benefit options, we will continue to pay more each year. The health benefits committee has explored numerous strategies to reduce expenditures and have failed to reach consensus. The result is status quo and increased costs. Both unions and the District must agree to institute any changes.

Step and Column- With fewer people at the top of the schedule, we experience more movement and thus more expense. Typically, movement on the schedule is compensated by retirement and hiring of people at the bottom of the schedule. That compensation is deferred by a couple years if the retiree is given a Golden Handshake, each costing the District in excess of $40,000 each. In other words, there is no immediate cost savings on the schedule until the incentive expense is paid. There is no quick solution to this. There are no plans to establish incentives like the Golden Handshake in the future. So, eventually the expenses will be paid off. A short-term freeze in step and column could be negotiated if there was support for this.

Governor’s Budget Deficits 2008-09 and 2009-10?- As you are all aware, as I write, the Governor and representatives of the democrats and republicans are attempting to hammer out a deal on the deficit. The special session called by the Governor ends on Sunday and they say they will make a deal by then. We will see. This deal may only impact this year and not the budget year. The only parameters we will have are those found in the Governor’s budget. This could remain the case through August.

The Governor’s budget drastically reduces our revenue. To allow us latitude to compensate for this loss, he has proposed flexibility for many of our restricted, or what we call categorical, programs. This simply put is that we keep the funding but not the requirements to maintain the program. We have many restricted programs and each would need to be considered separately. The largest of these restricted programs is Class Size Reduction (CSR).

Many of these restricted programs also have a carryover from the previous year. If we are given flexibility, it is possible that we can capture all unspent funds, in the short-term (one time), to offset the proposed loss in unrestricted revenue. For SUSD this could be over $2 million. This would help both in the short-term and in the long term. However, if we chose to stop providing certain restricted programs, there would be a significant reduction in educational opportunities for our students.

I will now go back to what I told the Board last night. The Sylvan Union School District has no alternative but to plan for massive reductions to our budget. Based on our best projections as of yesterday, we need to cut $4,000,000 from next year’s budget and another $3,000,000 for the following year (2010-11). Both of these reductions will need to come from on-going expenses, as opposed to one-time revenues or reductions.

You may recall that last spring we reduced $2,900,000 from our budget. Much of this came from reserves and one time reductions. Another large piece came from the reduction of staff due to attrition. At that time we also planned cuts for 2009-10 such as the elimination of all stipend positions, field trips, and AV contract along with a 10% reduction of all budgets to name a few. On top of these plans, we now need to find another $4 million.

Approximately 85% of our budget is staffing. Therefore, to find $4M the vast majority must come from staff expenses in all employee groups. This means a reduction of staff, either by attrition or layoff.

For certificated staff to be laid off, each employee must receive notice by Friday, March 13th. For classified staff, a notice of 45 days is required. Last night we began our discussion with the Board on the options for layoff of certificated staff. I reviewed the following list for their consideration. There are two groups: staff that do not require categorical program flexibility and those that do. Since we do not know the answer regarding flexibility yet, we must plan as if it will happen. The recommendation includes the reduction of 58.8 FTE certificated positions (24 unrestricted and 34.8 restricted). The positions are as follows:

Administration ($439,000)
1. All Middle School Deans
2. Crossroads Assistant Principal
3. One principal position- assign Directors of Student Services & Technology
4. Superintendent to continue as business manager

Unrestricted Positions ($1,520,000)
1. Music Program teachers K-5 (7)
2. Art Program teachers K-5 (3.5)
3. K-6 Classroom teachers due to reduced enrollment (5)
4. Librarians MS (2)
5. 6th grade exploratory teachers (3)
6. K-5 counseling position (1)

Contingent on Categorical Flexibility ($1,780,750)
1. BTSA Coordinator (1)
2. AT&G Pull Out program (0.8)
3. MS Counselor (1)
4. Kindergarten CSR (14)
5. Third Grade CSR (14)
6. Instructional Facilitators (4)

It will be my recommendation on February 3rd that the Board pass a resolution authorizing the notification for layoff of 58.8 FTE certificated positions. This number could be reduced as time goes by this spring due to resignations and retirements received.

These potential reductions constitute a little over $3.5 million. Over the course of the next two months additional decisions will be made as the State budget evolves. We will also be looking at classified positions with the possibility of reducing as much as another million in positions yet to be determined. We will scour our budget for all potential non-staff reductions. If granted categorical flexibility we will have many additional opportunities to modify programs and services that may or may not affect staff. However, most staff members funded through categorical programs have temporary contracts and are not subject to the layoff process. They are just not offered a contract for the next year.

It is unfortunate that school districts are forced to make certificated layoff decisions by March 13th without full knowledge the actual budget. This forces us to be precautionary and develop worst-case scenarios. However, during these uncertain times, even our worst-case scenarios may not be worst-case.

To conclude and summarize the certificated layoff decisions ahead of us, I offer you the following timeline of events:
January 27th- Superintendent informs the Board the depth of notices that should be given for potential layoff.
February 3rd- The Board considers a resolution authorizing the reduction of the particular kinds of services we would intend to reduce, i.e. number of multiple subject, number single subject, etc
February thru May- additional information will influence decisions
March 13th or before- Individuals effected by reductions receive notice
May 15th decision becomes final for layoff for 2009-10

This may all be subject to change based upon the pending decisions made by the State.

As I stated in my last update, I am planning a webcast to all of you during your staff meeting on February 23rd. In the meantime, I will keep you updated via email.

From my last update I received three questions. Here they are along with my responses:

Is the district thinking about incentives for early retirement? Response- We are not considering this at this time. We offered Golden Handshake last year and I am certain we will not do that again. As for other incentives, we’ll see. If you are reading this and believe an incentive might influence you to retire this year, give me or David Holtz a call or email soon. Here is a small incentive for retirement I heard: when you retire you are guaranteed a 2% annual COLA on your retirement check. I doubt very much that school districts will see a COLA in the next couple years.

Are we considering reducing days in next year’s contract? We are going to talk to SEA next week about this. The Governor’s budget includes flexibility to reduce instructional days by five. However, there is still some confusion over this issue. Some districts are discussing reducing staff development days and a corresponding wage for one or more days. In our case, each day, for all employee groups, costs approximately $220,000.

Have we considered across the board reductions for all employees? Not yet, that would need to be negotiated. I can say we would be willing to entertain this idea. Each one (1) percent of reduction for all staff constitutes as savings of $445,000.

Finally, I look forward to your questions. I will send out information on the State’s decision on the deficit and its impact on SUSD once that is known. You can expect my next update to follow next week’s Board meeting.

Sincerely,

John Halverson

Dr. Martin Luther King

2008-01-16T11:22:00.000-08:00

Dear Sylvan Family,

After last night's Board meeting, I went home to treat myself to some YouTube videos of Dr. Martin Luther King's speeches. Yesterday was Dr. King's birthday and it occurred to me that I can now both see and hear his speeches at any time. What a treat and an inspirational way to end the day! I never fail to learn something new while listening to his powerful messages.

Next Monday we will celebrate Dr. King's birthday by taking a holiday. I would like to encourage each of you to view the YouTube video below and then select some of his other speeches from the YouTube site. We allow access to YouTube to SUSD computers for just such purposes. If the current technology in your classroom allows, I also encourage you to share Dr. King's powerful messages with our older students. Friday would be a perfect day to do this.

If you would like to leave a comment on this site to share with the rest of the Sylvan Family your thoughts, ideas or strategies to celebrate Dr. King, please do so. I hope you all enjoy your three day weekend.

Sincerely, John Halverson