Washington GSD Deficit Reduction Plan: Budget Strategies for 2009-2010

1. Deficit Reduction Plan Washington GSD 52 October 2009

2. WGSD Deficit Reduction Plan • ISBE is requiring WGSD to submit a Deficit Reduction Plan with the 2009-10 budget. • The Plan will reduce spending in the Education and O&M Funds by approximately 1,450,000 over 3 years.

3. 1 - Total Deficit x 3 2 – #1 exceeds Operating Funds Total Fund Balance WGSD Qualifying Criteria

4. Assumptions • Flat Revenue • “Rumors” of future revenue decline • Overall national and state economies will influence revenues • Declining property values across the state will effect GSA • Bottom Line – There is a greater potential for less revenue than more revenue.

5. O&M Deficit • O&M Deficit is a product of the construction expenditures • Projections for the next 3 years are balanced

6. Ed Fund Deficit • Total Reductions of $961,504 over 3 years to create a balanced budget • Reductions will come from the Instruction and Support Services Functions • All object areas will be reduced • Purchased Services • Supplies • Salaries / Benefits

7. Ed Fund Deficit Reduction Plan

8. Deficit Reduction / Fund Balances • Maintaining appropriate Fund Balances through the deficit reduction • Balance spending and reductions • Policies on Fund Balances • Board Policy 4:20 – Fund Balances equal 50% of expenditures for each fund • ISBE Financial Profile – Fund Balances equal to 180 days of expenses for Operating Funds

9. Determining the Details • Proposed Plan – Overview • Details of specific reduction areas will need to be determined • Formation of committee • BOE, Admin, Staff, Parents • Begin in 2010

10. Working Together / Achieving Excellence