1. SADDLEBACK VALLEY UNIFIED SCHOOL DISTRICT BUDGET PLANNING

2. PLANNING for 2008 • Review of Current Year • Governor’s State Budget Proposals • Projected 08/09 Budget • Reductions needed to maintain solvency • Timeline for implementation

3. Budget Prior to January

4. State’s Fiscal Woes • State budget shortfall projected to be $16 billion in 08/09 • Revenues were overestimated; still growing by 2 - 3% but income tax, sales tax and corporate taxes all lower than expected • Expenses were never reduced to reflect reduced revenues • Structural deficit remains unless revenues increase and/or expenses decrease

5. Steps State Has Taken • Governor informed Legislature of problem - January 10th - presented his plan for recovery • Governor declared State of Fiscal Emergency - required Legislature to act by February 23rd on current year shortfall • Legislature enacted $2.3 B in current year reductions- February 15th - unspent funds, delaying payments and expense transfers

6. Still to Come... • Current year cuts averted but 08/09 shortfall has yet to be addressed • Governor and Legislative Analyst Office have both proposed reduction plans • Governor proposes “across the board” method • LAO proposes “targeted reductions” by priority • We must budget using proposal that provides the least revenue so as to not experience a shortfall.

7. Impact of Governor’s State Budget Proposals on SVUSD Revenue • Eliminate COLA (-4.94%) plus reduction in funding (-2.05%) = -$12,569,058 • Reduce Special Ed funding -$1,975,940 • Reduced funding for other programs i.e. Summer School, CSR, Transportation etc. -$1,628,183 • SVUSD also has less students -$2,400,000 and cost increases -$726,819 • TOTAL = -$19,300,000

8. Our Budget after State Reductions

9. Balanced Budget • A balanced budget is necessary for a school district to maintain local control • In order for SVUSD to preserve its fiscal status i.e. a district that can meet its financial obligations for the current year plus the following two years....reductions in expenses are required. • For SVUSD $19,300,000 in reductions must be made!

10. Our Budget after Reductions

11. Non School Reductions Sub total $9,333,568

12. more Non School Reductions

13. School Level Reductions Schools Total $8,168,337

14. Effect of Reductions • Since 85% of our budget goes toward employee salaries and benefits... • Over 240 positions eliminated • Layoff notices to 287 certificated and 100 classified employees

15. Timeline • Feb/March - consider holding forums to explain need for drastic reductions • on March 11th - Board action to authorize certificated layoffs -notices to staff by March 15th • on April 15th, Board action to authorize classified layoffs - notices to staff by April 28th • May 10th final layoff notices to certificated staff • May 14th- revised State revenues and Governor’s revised budget proposals • June 30th Legislature to pass final budget, District budget due.

16. What You Can Do • contact State legislators - fax or mail- see SVUSD website for information • attend a SVUSD budget forum • send questions and/or comments by email to budget.impact@svusd.org • Principals and website are best sources of accurate information