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New Albany-Floyd County Consolidated Schools

New Albany-Floyd County Consolidated Schools . Budget Reduction Plan March 8, 2010. What is the Problem?. In July, the legislature gave 0% increase to NA-FC for 2011 and 2012. NA-FC averages a 2.5% We had 5 months to reduce. (slow track)

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New Albany-Floyd County Consolidated Schools

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  1. New Albany-Floyd County Consolidated Schools Budget Reduction Plan March 8, 2010

  2. What is the Problem? • In July, the legislature gave 0% increase to NA-FC for 2011 and 2012. • NA-FC averages a 2.5% • We had 5 months to reduce. (slow track) • During Christmas, the Governor announced K-12 would be cut ($300M) an additional - 4.55%. No legislative action. • This was $3.2 million annual cut • Becomes a new funding floor. Back to 2006-07 funding levels. • Permanent - not temporary. • 2 weeks of lead time. (fast track)

  3. Anything else cut? • State reduced Adult Ed. - 9%. • State eliminated Professional Development funds. • Summer School was reduced to 74%.

  4. What is the root of the problem? • 2 years ago, State leaders designed a new formula to re-distribute tax dollars. Property taxes were traded for higher sales taxes. • Property taxes (stable) were replaced by income tax, sales tax and gambling $ (unstable). • Public schools became dependant upon the economy. • The economy slowed. Revenue from income, sales, and gambling declined against their predictions.

  5. How will we re-coup this money? • We won’t. • The Governor and Legislature control funding. They provide funds for student services and programs. • The only local control is to re-raise property taxes through a referendum. Option #2.

  6. What is the cumulative impact? • Because of the initial 0% NA-FC Schools were preparing to cut $3.2 million. (slow track) • The additional December cuts now require us to reduce $6.6 Million to balance current program with new adjusted revenue. (fast track) • We have $4 million (5%) of Cash Reserves on hand.

  7. Reduction Plan • The Plan has 3 prongs; • 1) use all Cash balance, • 2) use all Rainy Day Funds, and, • 3) proposed reductions. • Need all 3 strategies to hold the crisis at bay for next couple of years. • The reduction plan will reduce spending by $5.6 million. NA-FC deficient is $6.6 million.

  8. Key Summary • The revenue stream for IN public schools changed twice in 5 months: • First, 0% in July. Then, -4.55% in January • This plan represents a giant first step, not a final step. • More reductions (or revenue) needed by 2012.

  9. Last Wednesday

  10. More to Come January 11, 2010 – School Board meeting – This was closing slide. March 8, 2010 - We now have more information, planning, deliberation and action, but same conclusion.

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