Presentation of Tentative budget to Board of School Trustees

1. Adoption 2011 of the FY Tentative Budget April 7, 2010 Board Work Session 1

2. Budget Timeline Adoption of Tentative 2011 Budget April 7 Tentative Budget Submitted To State April 15 Adoption of Final 2011 Budget May 19 Final Budget Submitted to State June 8 Adoption of the tentative budget is required by April 15th. However, changes may be made prior to adoption of the final budget. 2

3. Where the District Spends Its $ 3

4. How the District Spends Its $ *Other Objects: Legal Services, Financial Services, Professional Services, Staff Development, Training, Travel 4

5. Reductions in Positions To Date & Planned *General Operating Fund Positions 5

6. Tentative Budget Summary Total General Fund Expenditures Total General Fund Revenue Down 3.4% Down 6.9% - $ 76 million - $ 141 million The difference is partially made up through use of $40 million in fund balance (due to efficiencies) and $25 million in one-time capital funding. 6

7. Use of One-Time Sources Fund Balance & Other One-Time Sources Revenues Revenues Revenues OK for temporary downturns in revenues Not good to filllong-term shortfalls 7

8. Assumptions: Tentative Budget All elementary schools on a nine-month calendarElementary schools convert from year-round to nine-month as per Regulation 7124 No changes in employee contract provisions Class sizes in Grades 1-3 increased by 2 students Textbook/supply budgets will be reduced Student enrollment will decline slightly Fund balance will be used to offset budget reductions Administrative positions will be reduced by 10 percent Federal Title I funding will be $6.9 million less 8

9. What These Assumptions Mean School calendar conversions $5 million savings Employee contract provisions:Step Increases $26 million costRetirement (PERS) no change Class sizes in Grades 1-3 (540 positions) $30 million cut Textbook/supply budgets $10 million cut Student enrollment no change Fund balance $40 million one-time savings Administrative staffing (109 positions) $12 million cut Federal Title I funding $6.9 million less 9

10. Changes Since Tentative Budget The following changes occurred after development of the Tentative Budget and will need to be addressed prior to adoption of the Final Budget. School calendar changes,other than by regulation,not implemented $12 million State Department of Taxationupdated property tax estimates 18 million Additional Shortfall $30 million $30 million, if taken from staffing, equates to an additional428 positionsthat would need to be cut. 10

11. Options for Cutting $30 Million The following are options for dealing with the remaining $30 million budget deficit (subject to collective bargaining): Reduce salaries (and PERS benefit base)by 1.85 percent Implement furlough days for all employees(4 for licensed, support staff and police; 6 for administrators) Employees share 15 percent of overall costof health insurance Employees share 2.4 percent of overall costof retirement (PERS) Freeze step increases ($26 million) $30 million, if taken from staffing, equates to 428 positionsthat would need to be cut. 11

12. Positions That Would Need to be Cut With NO changes to salaries, benefits, or to the work year: 540 Teaching positions (raising class sizes by 2 in grades 1-3) 109 Administrative Positions (90 school based,19 central office) 649 Already recommended to be eliminated + 428 Additional positions to balance ($30 million) 1,077 Total number of positions that would need to be cut 12

13. Alternative to Recommended Cuts To restore the recommended increase in class size and the reduction in administrative staffing, as well as to accommodate other shortfalls… …would require a 5.0 percent reduction in all employee salaries… …and would allow restoration of 649 positions cut to balance the budget 13

14. For More Information… Go to… CCSD.net/finance 14

15. Budget Timeline Adoption of Tentative 2011 Budget April 7 Tentative Budget Submitted To State April 15 Adoption of Final 2011 Budget May 19 Final Budget Submitted to State June 8 Adoption of the tentative budget is required by April 15th. However, changes may be made prior to adoption of the final budget. 15