Impact of the Governor’s Proposed Budget on the AUSD The AUSD Response February 26, 2008

1. Impact of the Governor’s Proposed Budget on the AUSD The AUSD Response February 26, 2008

2. AUSD Goals and Core Values AUSD Goals 2006-2009 • Narrow and close the achievement gap in English language arts and Mathematics between our lowest performing students and our highest performing students, while increasing or maintaining the performance of any group performing at the proficient or advanced level. • Align the spending plan with educational objectives while ensuring the highest and best use of limited resources and long-term solvency. • Ensure all students will be in educational environments that are safe and conducive to learning. • Recruit and retain highly qualified and diverse staff, and provide systems of support for and recognition of all employees. AUSD Core Values • Support student achievement by promoting efficiency, communications, and responsibility. • Preserve fiscal integrity and responsibility. • Recruit and retain highly qualified competitively compensated employees.

3. Criteria for Spending Reductions & Resource Reallocation • Maintain core academic programs for students to ensure students graduate high school • Ensure campuses are safe for students and staff • Shift expenditures to grants to other funding sources where possible • Work with employee groups regarding negotiated items • Comply with necessary local, state, and federal mandates

4. Impact on Pathway to Excellence and Equity

5. Process for two-way communication EXTENDED CABINET WORKGROUPS SUPERINTENDENT SUPT’S COUNCIL (employee groups) SOUNDING BOARD (community) SUPERINTENDENT’S RECOMMENDATIONS BOARD OF EDUCATION

6. Timeline of meetings • Extended Cabinet Workgroups: • February 1, 4, 8, 11, 14 • Superintendent’s Council Meetings: • February 6, 13, 21 • Sounding Board Meetings: • February 7, 14, 21 • Board Meetings: • February 4, 26 (Info), March 4 (Action), 11

7. Certificated & non-certificated staff Planning for 2008-09 • January 18 Due to HR - Planning and staffing notification forms from teachers-identify needs for the 08-09 school year. • February 7 Due to HR Non- reelect list • March 1 Due to HR Certificated employees Leave of Absence intentions for 08-09 • March 4 Special BOE Meeting • March 11 Resolution to the BOE to vote on staffing reductions • March 14 Ed Code Law requires that all certificated teachers and administrators must be noticed • April AUSD Non- certificated Employees will be Notified of Potential Lay offs per Ed Code 45117

8. Suspending Proposition 98 Loss of $4B

9. Suspending Proposition 98 Loss of $4M

10. Multi-Year ProjectionsAs of FY07/08 First Interim Available for spending priorities – compensation increases, new programs and program expansions,

11. Multi-Year Projections As of FY08/09 Governor’s Budget Available for spending priorities – compensation increases, new programs and program expansions,

12. What happened to the fund balance? Decrease of $4.5M

13. What can the AUSD do? • Increase Revenue • Reduce Expenditures • Negative Certification • Combination

14. Overview of Recommendations and Actions

15. Overview of Recommendations and Actions

16. FY08/09 Recommendations Cut = Spending Decrease/Service Reduction or Elimination; Shift = Spending transferred to categorical funds

17. FY08/09 Recommendations Cut = Spending Decrease/Service Reduction or Elimination; Shift = Spending transferred to categorical funds

18. FY08/09 Recommendations Cut = Spending Decrease/Service Reduction or Elimination; Shift = Spending transferred to categorical funds

19. What does $4M look like? Reduction Factor = 7.3

20. Spending $2.65M of Reserves on On-Going Costs Reduction Factor = 4.8

21. FY08/09 Actions Cut = Spending Decrease/Service Reduction or Elimination; Shift = Spending transferred to categorical funds

22. FY08/09 Actions Cut = Spending Decrease/Service Reduction or Elimination; Shift = Spending transferred to categorical funds

23. Why not shift more expenditures to categorical funds? Categorical funds are restricted in use and come with requirements: • Committee work • Teacher staff development • Assessment • D/O FTE

24. FY09/10 Proposal Cut = Spending Decrease/Service Reduction or Elimination; Shift = Spending transferred to categorical funds

25. FY09/10 Proposal Cut = Spending Decrease/Service Reduction or Elimination; Shift = Spending transferred to categorical funds

26. FY09/10 Proposal Cut = Spending Decrease/Service Reduction or Elimination; Shift = Spending transferred to categorical funds

27. FY09/10 Process and Timeline • Identify Task Force – March 7 • Bi-Monthly Meetings – Mid-March – June • Community Meeting – Early June • Weekly Meetings – September – November • Community Meeting – Mid-October • Recommendations to Board of Education for information – November 25 • Recommendations to Board of Education for approval – December 9

28. Multi-Year Projections As of FY08/09 Governor’s Budget

29. Multi-Year Projections As of FY08/09 Governor’s Budget

30. What will happen to the FY08/09 fund balance? Increase of 2.9M

31. What will happen to the FY09/10 fund balance? Increase of 6.9M

32. Recap of Recommendations and Actions • Minimal available balance • Unbudgeted spending increases • Negotiated salary increases • Other Post-Employment Benefits (OPEB) • Involves risk • Requires qualified/negative certification

33. Outstanding Issues that Could Impact the Budget and MYP • State Budget • Average Daily Attendance (ADA) • Special Education • Other Post Employment Benefits (OPEB) • Negotiations

34. Next Steps • Information item for BOE discussion and public comment • Superintendent’s final recommendations for BOE approval on March 4, 2008 • Reduction in force for BOE approval on March 11, 2008