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The IUSD Board of Education is expected to vote on budget reductions and adjustments for 2010-11 at its next meeting on March 16, 2010.
Board to vote on proposed budget reductions
At its meeting on Tuesday, March 16, the IUSD Board of Education is expected to vote on a number of budget reductions and adjustments to bridge a projected deficit of more than $20 million for the 2010-11 school year.
To view the list of staff-recommended budget reductions and adjustments, click here. The California budget crisis continues to grip the state's public schools, which have seen their revenues drop an average of $600 per student since 2007-08. As a result, IUSD recently announced its decision to reduce the current school year by four days, and employee groups have agreed to take eight additional furlough days in 2010-11. Furlough days translate into lost instructional days for students as well as reduced compensation for employees, yet they would generate nearly $8.6 million in total savings. While that represents a significant chunk of the 2010-11 deficit, it still leaves a sizable shortfall to be resolved. Other staff-recommended proposals for closing the gap include increased class-sizes in grades one through three and nine; reductions at the District Office level; the reallocation of categorical dollars from programs that are now flexible as result of recent legislation; reduced nursing services; and the addition of one-time dollars. The Board of Education meeting is scheduled to start at 7 p.m. Tuesday at the District Office, 5050 Barranca Parkway, Irvine. To access the agenda, click here. SCHOOL YEAR SHORTENED BY FOUR DAYS The IUSD school year will be reduced by four days this year as a result of the precipitous drop in state funding, and employee groups have agreed to take eight additional furlough days in 2010-11. On March 9, the Board of Education ratified a contract agreement – which included the furlough days – with the Irvine Teachers Association, and Board members approved similar settlements with other IUSD bargaining groups. (The district currently has a tentative agreement with the California School Employees Association, which represents its classified employees.) In a letter to staff and the community, Superintendent Gwen Gross said furloughs are “far from ideal,” but necessary to cope with California’s fiscal crisis. As a result, Dr. Gross announced that all IUSD schools will be closed on June 7, June 8, June 14 and June 15 to accommodate the districtwide furloughs, which will generate more than $8.5 million in savings, negating the need for even deeper reductions. To read the full letter, click here. HOW WE GOT HERE Though Governor Arnold Schwarzenegger had publicly vowed to protect education from further reductions, his budget proposal for 2010-11 poses significant challenges for school districts across the state, including Irvine Unified. Specifically, the spending plan released in January increases IUSD’s operational shortfall for 2010-11 to more than $20 million, representing a dramatic increase from the $14.7 million gap identified in the district’s First Interim Report. It is important to remember that the Governor’s proposal represents the starting point for negotiations that will ultimately result in a state budget for the fiscal year that begins July 1. That means IUSD’s bottom line could worsen or improve before the deliberations are over; however, due to a number of statutory deadlines, school districts must take critical steps to balance their budgets by mid-March. IUSD's Board of Education is expected to vote on reductions for 2010-11 at its March 16 meeting. To view the list of staff-proposed budget adjustments that will be discussed, click here. (Note that this document is not a finalized cut list but rather a list of proposals.) To read a recent letter to the community from IUSD Board of Education President Sharon Wallin and Superintendent Gwen Gross, click here. ADDITIONAL INFORMATION To read more in the latest edition of Budget Notebook, click here. To view a slide presentation from the Jan. 19 Board Study Session, click here. To access a detailed list of frequently asked questions, click here. Members of the public and staff are also encouraged to share their thoughts and suggestions through IUSD’s online Budget Input Form at: www.iusd.org/inputform.
State finally approves a budget: A look back at Summer 2009In July 2009, the state Assembly and Senate approved a bundle of bills that collectively constitute a budget for 2009-10, effectively resolving most of the state’s $26 billion deficit. The cuts to education were similar in total dollar amount to the alarming proposal laid out by the governor in May. As you'll recall, school districts were required to adopt and submit their budgets before July 1. IUSD's budget for 2009-10, approved by the Board of Education on June 23, outlines $214.1 million worth of expenditures – both restricted and unrestricted – against $201.8 million worth of total revenue. The difference, approximately $12.3 million, will be offset by onetime carryover funds. IUSD was able to present a balanced budget following three phases of reductions totaling more than 16 million. In addition, the district used nearly $7.8 million in onetime federal stimulus funds to help offset the precipitous drop in state revenue. California's budget roller coaster: A look back at Spring 2009In April, the Board approved a first phase of reductions – approximately $9 million in onetime and ongoing adjustments – in an effort to remedy the projected deficit brought on by California’s fiscal crisis. In the weeks and months that followed, however, the state’s tax revenues continued to plummet, a slate of ballot propositions crafted to generate state funding was rejected by voters and California's deficit grew to approximately $24 billion. As a result, IUSD was forced to identify another $2.2 million in reductions. (These cuts, referred to collectively as Phase II, were formally approved on June 23, along with the Phase III reductions.) More bad news came in June, as pressure began mounting to further reduce the unrestricted budgets for districts funded under the Basic Aid model, including Irvine. Anticipating harsher cuts, a coalition of Basic Aid districts took a proactive approach and submitted their own “Fair Share” proposal. Under this plan, IUSD was compelled to cut an additional $7.1 million – with just days to go before a budget was due. The list of Phase III reductions approved on June 23 includes changes in class sizes for grades one, two, three and nine; reduced spending on art, music and science; a restructuring of adult education, which is now a fee-based program; and the deferral of textbook adoptions. In addition, some onetime dollars that were set aside to cover retiree benefit liabilities will be used to cover a portion of the shortfall. (To access the complete list of IUSD's phased budget adjustments, click here.) Embedded in the 2009-10 budget is a 3 percent reserve for economic uncertainties as mandated by the state Education Code. However, the district is unable to project balanced budgets for the two subsequent years and will therefore be required to explore additional expenditure reductions and/or revenue enhancements. Irvine and other school districts in California are required to submit their annual budgets on or before June 30. While the state also shares this deadline for budget adoption, legislative leaders rarely meet it, forcing local school districts to make important financial decisions based on the governor’s proposals from January and May. Once the state officially adopts its spending plan in the summer or fall, IUSD will have 45 days to make any necessary adjustments. For more information on the state crisis and its impact on IUSD, please read the latest issue of Budget Notebook. Additional resourcesClick on this link to access some questions and answers about IUSD's move into the "Basic Aid" funding model. News on Categorical Flexibility
How to advocate for schoolsWrite a letter to the Governor, or contact your local Assembly member or Senator, urging the protection of education funding. For a list of Irvine's state and federal legislative representatives, click here. Write a letter to the editor of your favorite newspaper opposing cuts to education.
Support the Irvine Public Schools Foundation, which raises money for IUSD and supports many of our most innovative programs. Get involved through the Irvine Unified Council PTA, which advocates on behalf of our schools. |
