1. Preliminary
FY 2012
Budget
Forecast
February 9, 2011
Presentation to Principals
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2. What are we talking about?
Shortfall in state/local funding
$250 to $275 million
or at least $870 per student
Loss of Federal Funds
939 positions
ARRA (Title I, IDEA), EduJobs
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3. Why is this happening?
Shortfall
It’s called a Structural Deficit
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4. What has already been cut?
Since 2007
• 20% of central office staff
• Block schedule & AVID funding
• School staffing – 3%
• Class size increase: Grades 1-3 (by 2)
• Administrative staffing
• Textbook/supply budgets
A total of $375 million has been cut
and 1,734 positions eliminated
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5. What about the Capital Funds?
State is proposing to take a total of
$300 million from CCSD’s
Debt Service Reserve
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6. What would that mean?
• The debt service property tax rate ($0.5534) will need
to increase to cover future debt service costs
• And/or CCSD will need to push debt service costs out
into the long-term future (which will cost more in
interest payments)
• $150 million per year of the state’s ‘guaranteed’
funding is coming from CCSD’s capital funds
• This is a one-time, stop-gap measure that will leave a
big financial ‘hole” to fill in the next biennium
• Goes against promises made to voters in 1998
State law would need to be changed to allow this
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7. Why are we short $250-$275 million?
State Funds - $196 million
Debt Service Funds + $150 million
Loss of room tax - $35 million
Property tax decrease - $48 million
Fund balance used up - $62 million
Employee Contractual provisions - $68 million
(step, increments, PERS)
NOTE: This assumes no new revenue
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sources are identified

8. How bad is it?
$ 250-275 million =
14 more students per class
or 33 less days in the year
or 16% cut in pay/benefits
or 95% of central office
A reduction of as many as 3,800 positions
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9. How can you help?
Tell us…
What you have had to do at your
school to deal with cuts made
already?
What would the impact be if your
staffing was reduced again?
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10. When will we know?
Tentative budget must be adopted in
April & the final budget in May
Reduction-in-force process
must begin in April
State funding will likely not
be known until June
Negotiated agreements roll
forward until bargained
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11. Our Strategy ?
Plan for the Work for the
Worst Best
Participate as a Team
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