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SADDLEBACK VALLEY UNIFIED SCHOOL DISTRICT. BUDGET PLANNING . PLANNING for 2008. Review of Current Year Governor’s State Budget Proposals Projected 08/09 Budget Reductions needed to maintain solvency Timeline for implementation. Budget Prior to January. State’s Fiscal Woes.

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Presentation Transcript

Planning for 2008
PLANNING for 2008

  • Review of Current Year

  • Governor’s State Budget Proposals

  • Projected 08/09 Budget

  • Reductions needed to maintain solvency

  • Timeline for implementation

State s fiscal woes
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

Steps state has taken
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

Still to come
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.

Impact of governor s state budget proposals on svusd revenue
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

Balanced budget
Balanced Budget Revenue

  • 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!

Non school reductions
Non School Reductions Revenue

Sub total $9,333,568

School level reductions
School Level Reductions Revenue

Schools Total $8,168,337

Effect of reductions
Effect of Reductions Revenue

  • Since 85% of our budget goes toward employee salaries and benefits...

    • Over 240 positions eliminated

    • Layoff notices to 287 certificated and 100 classified employees

Timeline Revenue

  • 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.

What you can do
What You Can Do Revenue

  • contact State legislators - fax or mail- see SVUSD website for information

  • attend a SVUSD budget forum

  • send questions and/or comments by email to [email protected]

  • Principals and website are best sources of accurate information