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Proposed Budget Reductions for 2019-20

April 22, 2019 - At a special session on Tuesday, April 16, the Board and Budget Committee discussed options for managing a projected shortfall of $9.6 million in the 2019-20 school year. The shortfall estimate is based on the Governor’s recommended statewide K-12 allocation of $8.972 billion for the 2019-21 biennium.

Although the Legislature is discussing mechanisms for increasing the K-12 allocation and creating a School Improvement Fund, districts need to solidify budget assumptions in the spring to determine staffing and meet state-required budget adoption deadlines.

With 82 percent of the District’s general fund budget comprised of staffing costs,* the majority of recommendations unfortunately come down to reducing staff positions. (*Staff breakdown by type: licensed - 47%, classified - 48.4%, school-based administrator - 2%, central office administrator - 1.3%, supervisory/technical - 1.3%.)

Following is a summary of the reduction package presented by District administration that was favored by a majority of Board and Budget Committee members:

Reduction

Impact

Estimated Savings

Running Total

Retain current staffing ratios at grades K-2 (K = 26:1; Gr. 1-2 = 28:1), increase staffing ratio at grades 3-12 from 29:1 to 31:1

Loss of 31.5 licensed full-time equivalent positions (FTE)

$3,344,702

$3,344,702

Other licensed positions

Loss of 6.5 licensed FTE

$690,177

$4,034,878

Restructure Care Coordinator service delivery model

Reduction/movement of licensed staff

$95,096

$4,129,974

Classified staffing

Loss of 37.5 classified FTE

$2,198,738

$6,328,712

Adjust classified staff calendars for certain positions due to job description consolidation

Estimated net savings

$140,000

$6,468,712

Administrator positions

Loss of 3 administrator FTE

$359,882

$6,828,594

Discretionary budgets at schools and departments

5% reduction in discretionary budgets

$2,385,000

$9,213,594

Reclassification of 3 Facilities positions to Construction Excise Tax (CET) funding

Transition of funding obligation from general fund to CET

$377,369

$9,590,963

Attendance incentive

Suspend current funding

$10,126

$9,601,089

   

Total

$9,601,089

Superintendent Scott acknowledged that due to budget cuts that have been necessary in eight out of the last ten years totaling $64 million there are very few good options for making additional significant reductions.

The District believes staff position reductions can be managed through normal attrition and retirements, and that layoffs will not be necessary.

If additional funding is made available to K-12 before the start of the school year, the District will prioritize providing relief to classrooms. A probable scenario is that a revenue package will be referred to the November ballot for a vote. If the package passes, increased funding will likely not be distributed until the 2020-21 school year.

Stay tuned to the Budget Matters webpage for updated information as it becomes available.