PAUSD Budget Overview

Lauren Janov
PTA Council Advocacy Chair

Calendar for Community Input/Additional Information

November

• PAUSD meetings with stakeholders (i.e., PTAC Council) to generate ideas for budget savings and spending priorities - November
• Site Council meetings to generate budget savings ideas -- by late November
• PAUSD budget update - November 24 School Board Meeting

January and February

• Board public study sessions - by mid-January
• PAUSD School Board budget discussions and vote - January 26 and February 9th

Budget Information (as of October 2009)

2009-2010 School Year


PAUSD's "fair share" reduction of state funding is $2.6 million ($250/student) . This funding cut was covered by spending reserves and federal stimulus dollars and taking advantage of recent state categorical fund spending flexibility. 

The most current property tax projections suggest that this year’s local property tax revenues will come in 0.47% less than budgeted ($501,000 less); final property tax numbers will be available July 2010. 

That said, there was a positive balance of about $6 million for this fiscal year.
For 2009-10, PAUSD's total estimated ending reserves (General Fund and Basic Aid Reserve) are $20 million (13% of the budget). 


2010-2011 School Year


PAUSD's estimated state funding cut of $4.4 million (~$406 per student) and a recently announced zero estimated property tax growth (compared to the 3% increase incorporated into the budget) will create a $5.7 million structural deficit for the 2010-2011 school year.

This deficit does not reflect increased costs for enrollment growth (3.06% budgeted for 2010-11, 2.18% actual for 2009-10), contractual step and column salaries, pensions, health insurance premiums and utilities. 



2011-12 School Year and Beyond


The annual $5.7 million structural deficit will continue until state tax revenues pick up and will become significantly worse if California voters do not renew $10 billion of education funding set to expire this year.
Locally, PAUSD's parcel tax ($9.3 million generated annually) will expire unless renewed by local voters.



General Information


One proposal to soften the budget impact of these cuts and costs is to spend 2009-2010's ~$6 million ending fund balance over the next 3 years ($2 million/year) .
PAUSD staff plans to engage the principals, unions, PiE, PTA and community in addressing these fiscal issues, guided by these values:

• 
Maintain academic excellence
• Transparency and openness about our challenge

• Continued support and fidelity to the district’s Strategic Plan

• Participation by all stakeholder groups

• Understanding of and dedication to what works educationally

• Optimism about ability to solve problem

• Long term fiscal health – no gimmicks

• Staffing levels that sustain program quality as we grow
•
• Avoiding layoffs is a high priority


See http://pausd. org/community/ board/downloads/ brd_packet/ item_013. pdf for more details.



Recent Major PAUSD Board Fiscal Actions
provided by PAUSD Business Department:


Savings

• Sunsetting retiree medical benefits for employees hired after June 1, 2009. While it is difficult to quantify the amount of savings, retiree health benefit costs should decrease over time. (March 2009)
• $1.475 million in 2009-2010 from increased class sizes/lower enrollment growth (May 2009)
• ~$150,000 from a soft hiring freeze to date (re-hiring to replace 2 classified positions and 1 management position has been put on hold)

Expenditures

• ~$4.7 million for 2008-09 for staff and teacher bonuses and raises 
(5% salary increase effective July 1, 2008 -- 2.5% base, 2.5% one-time payment) (March 2009)