Maintenance and Operation Override

1. Maintenance and Operation Override Daniel O’Brien CFO

2. November 2014 • 15% Maintenance and Operation Override • Will restore funding phased out in FY 14 and FY 15 • Beginning July 1, 2015 • Dollars for the classroom • Election November 4, 2014 • Estimated tax of $.40(approximately $128.00 for the average $360,000 home) • Combining the M&O and K-3 overrides Total Override: $18,846,218 New Dollars in FY16:$11,038,750

3. 15% M&O Override – Requested Specials at Elementary $1,500,000 Class Size Staffing Reduced by 3 $3,500,000 Teacher Horizontal Movement $800,000 Staff Salary Increase (2%) $2,617,050 Capital Restoration $3,231,000 Health Insurance $1,500,000 Department Chair Supplemental $117,000 Assistant Principals (7) $600,000 Desert Canyon Principal $95,000 Utilities $500,000 Remaining Budget Balance $14,460,050

4. 15% M&O Override – Recommended Restore Specials at Elementary $1,500,000 Restore Elementary Band and Strings $140,000 Class Size Staffing Ratio Reduced by 3 $3,500,000 Teacher Horizontal Movement (prior year)$969,700 Staff Salary Increase (2%) $2,617,050 Health Insurance $1,500,000 Restore Department Chair Supplemental $117,000 Restore Assistant Principals (7) $600,000 Restore Desert Canyon Principal$95,000 Total: $11,038,750

5. Restore Elementary Specials • Restore elementary specials to the level that they were in SY 2014. This would add between 28 and 32 teaching positions in the Specials Area. • Estimating average cost for an experienced Specials Teacher at $53,000. *Cost includes Salary, Taxes, ASRS, and Insurance $1,484,000 to $1,696,000

6. Restore Elementary band and strings Restore band and strings classes at elementary schools (2.6 FTE). Band and strings would be taught to 4th and 5th grade students at their home elementary schools. $140,000

7. Reduction in Class Size Staffing Ratios by 3 SUSD has established target staffing ratios that will be reduced by three. This does not mean class sizes will be reduced by three, but rather all class size staffing ratios will be reduced by 3. Average Teacher cost $48,000 (73 positions) *Average Cost assumes mix of new and experienced staff **Cost includes Salary, Taxes, ASRS, and Insurance $3,500,000

8. Current and Projected Classroom Staffing Ratios

9. Teacher Horizontal Move Horizontal Move is the phrase used to describe the pay increase provided to teachers for completing professional development related to the field of education. Teachers are “moved” horizontally on the pay schedule in increments of 12 units (Carnegie Units). One college credit is equivalent to one Carnegie Unit. 15 classroom based hours of professional development is equivalent to one Carnegie Unit.

10. Teacher Horizontal Move SUSD has not been able to fund horizontal movement since 2010-2011 school year Estimated cost to provide horizontal movement to all teachers who requested and qualified in SY14. TEA language states that all teachers requesting horizontal move must request it every year. Impacts approximately 500 teachers. $969,700

11. Salary Increase (2%) All employee groups have not seen a significant salary increase in several years. To help close this gap we are prioritizing a 2% salary increase to all employees. Administrative $ 317,456 Certified $ 1,606,194 Classified $ 693,400 $ 2,617,050

12. Health Insurance Impact SUSD participates in a self funded health insurance pool with a group of districts Health insurance cost and ACA impacts incurred in FY 14 and FY 15 were minimized by SUSD SUSD reviews projected increase every year and for FY 14 and FY 15 reduced the recommended increase based on our belief that our experience ratio would be low enough to offset some of the increases Consultant estimated contribution $18M – SUSD Funded $16.5M The cost increases and short funding can no longer be absorbed or sustained $1,500,000

13. Department Chair Supplementals FY 14 reduced department chair supplementals at each high school FY 14 had additional carry over that was used to bring back some supplementals and changed some to leads FY 15 included the same level as FY 14 by utilizing one time funds to support high school department chairs $117,000

14. Department Chair Supplementals • Originally funded Math, Language Arts, Science, and Special Education • FY14 carry over funds allowed additional Department Chairs to be restored – • Fine Arts, Performing Arts, Social Studies,  Visual Arts, World Language, Lead Counselor, Lead PE, Lead Librarian • Department Chair positions reduced are PE, Counselors, and CTE • FY15 one-time dollars will allow for the maintenance of FY14 Department Chair staffing and supplementals- Math, Language Arts, Science, Special Education, Fine Arts, Performing Arts, Social Studies,  Visual Arts, World Language, Lead Counselor, Lead PE, Lead Librarian

15. Restore Assistant Principals Increased school accountability Support school safety and operations Supports principals as instructional leaders and allows increased time in classrooms Allows for increased relationship between teachers, administration, student and community

16. Restore Assistant Principals FY 14 reduced 5 assistant principal position at the elementary level and 2 at the high school level 10 elementary schools split an assistant principal 2 high schools lost assistant principals FY 15 continue with FY 14 staffing Positions need to be restored $600,000

17. Restore Desert Canyon Principal FY 14 budget impacts required that the Desert Canyon principal positions be reduced at the sites to over see both elementary and middle school campuses The elementary and middle schools are in need of their own principal for each campus $95,000

18. Direct impact to Auditor General Dollars in the Classroom Report

19. M&O Override investment is more than 90% in students and schools *Vast majority of administration dollars are school based

20. Request Governing Board Approve Resolution Calling for November 2014 M&O Override Election