Elk Grove Unified School District

Budget Information Website

Elk Grove Unified School District

Archives for Budget Cuts

Governor Brown Releases May Revise

On May 14, Governor Jerry Brown released his May Revision to his 2012-2013 budget proposal.  This revision reflected a budget shortfall which has grown from $9.2 billion in his January budget proposal to $15.7 billion.  The Governor’s administration attributed this increase to an overestimation of general fund revenues; impacts of court and federal decisions; and an increase to Proposition 98.

The Governor’s Budget includes a ballot initiative to temporarily increase state income tax and state sales tax, subject to voter approval in November 2012.  Should this tax initiative pass, there would be an increase to the sales tax by ¼ percent until the end of 2016 and an increase to personal income tax for the state’s top earners by up to 3 percent until the end of 2019.  These temporary taxes would generate $8.5 billion in new revenues annually to the state.

If this ballot initiative is approved by voters, K-14 Proposition 98 adjustments will result in flat funding.  If the ballot initiative is NOT approved by voters, the Governor’s proposal includes trigger cuts to close the budget deficit.  Of the proposed trigger cuts, 91 percent of the reductions would be for K-14 education. For school districts this equates to about $441 less per annual Average Daily Attendance (ADA).

The Governor’s release of the May budget also reflects changes to his proposed weighted student formula.  These changes include, but are not limited to, increasing the base revenue limit funding level from $4,920 to $5,421; extending the phase-in period to seven years; adding a hold-harmless clause for the 2012-2013 school year only; adding grade-span adjustments; and adjusting its implementation as subject to the passage of the Governor’s tax measure.

Mandate reform is another area outlined in the Governor’s May revise.  The proposal includes a  block grant incentive program that would be distributed per ADA; the elimination of the existing mandate claiming process; and repealing half of the current mandated costs which includes the six highest mandated costs items.   Finally, the May revision proposes the elimination of the transitional kindergarten program requirements.

The legislature must send a budget to the Governor by the end of June.

EGUSD’s 2012-2013 Staffing

In planning for the 2012-2013 school year, Superintendent Steven M. Ladd, Ed.D. has recommended, and the Board supports, that EGUSD minimize, as much as possible, staff reductions for the coming year.  EGUSD will use the district’s ending fund balance to keep people in place, pending the upcoming November election. For 2012-2013, the district will staff at negotiated certificated contract levels for schools. As required for the budget process, this funding model is based on the Governor’s January proposal for public schools, the recognition of a projected decline in the district’s student enrollment, and the impact of the state’s 2011-2012 mid-year trigger cuts to school districts.

There will be no additional reductions for classified staff for the coming 2012-2013 school year. Please note that for those certificated and classified employees who are annually released pending confirmation of grant and categorical funding, this process will remain in place.   EGUSD’s intent is to reinstate these positions once the district has been notified that the funding is secure for 2012-2013.

In addition, the 2012-2013 budget has been built to reflect that all furlough days and salary rollbacks will end for all employees as of July 1, 2012. Those staff members who are scheduled to move forward on the salary/column schedule will do so in accordance with negotiated agreements.

An overview of the projected 2012-2013 certificated staffing is as follows:

  • Staffing ratios in 7-12 will remain the same as this year
  • Counselors will remain at the current staffing level (66 FTE)
  • Librarians will remain at the current staffing level (19 FTE)
  • Class sizes in K-3 will be 28:1
  • Class sizes in 4-6 will be 26:1
  • Computer resource teachers will remain in place

As indicated above, this year’s budget is further complicated by a projected loss of enrollment of about 385 students for the 2012-2013 school year.  This is the combined result of the uncertainty that surrounds transitional kindergarten and a decline in enrollment as the result of the state economy and the housing market.

With regard to the required budget process, the Sacramento County Office of Education is mandating that school districts submit a three-year budget projection that reflects the failure of the Governor’s tax initiative. Should the tax initiative fail, districts will face a $370 per ADA reduction, plus an additional $87 per ADA loss due to the state’s elimination of transportation funding. If the tax measure passes, EGUSD will be in a much better place but will still incur an $87 per ADA loss in funding due to the elimination of state transportation revenue. With either a pass or fail election scenario, the district will still have to address an ongoing structural deficit the size of which, will hopefully be tempered by a positive outcome of the November election. In order to reduce the impact of state cuts to public education, the district’s large budget deficit and the increased cost of health care, the district is continuing to seek negotiated solutions with each of the district’s bargaining groups. Following the outcome of the election and the resulting Governor’s 2013 January budget proposal, the district will review the new information and revise our 2013-2014 budget based on the information provided at that time.

EGUSD staff are tracking the tax initiatives that may be on the ballot in November. There is much speculation right now regarding the watering down effect that multiple initiatives may have on an election’s outcome. As more information becomes available, EGUSD will continue to update staff and our community through the district’s Budget Watch webpage.

Governor’s January Budget Proposal

On January 5, 2012, Governor Jerry Brown released a budget proposal that includes the passage of his proposed November tax initiative that he hopes would generate $6.9 billion in additional revenue for the state.   The January budget also includes a restructuring of the state’s funding model for K-12 education.

Like last year, the Governor’s January proposal once again forces school districts to build two budgets – one based on the passage of the taxes – the other without the revenues generated from the taxes.  Unlike last year’s proposal, which depended on a June election, this proposal hinges on a November election – five months into the school district’s fiscal year.  Similar to last year, the Governor proposes to implement midyear trigger cuts should the initiative fail.  Impacting budget planning further is the uncertainty regarding the legislature’s support for the Governor’s proposal, the redistribution of categorical funds and the change in the revenue formulas for schools, the reduction of mandates and the funding for the new Transitional Kindergarten program.  It should also be noted that the independent Legislative Analyst’s Office released a report on the Governor’s budget proposal that suggests that his budget is overly optimistic, by about $2.1 billion.

The Sacramento County Office of Education, which must approve EGUSD’s budget, has told school districts to build their multi-year budget projections based on the worst case scenario which is the failure of the tax initiative.   At a recent School Services of California conference, Sue Burr, Executive Director of the State Board of Education, told districts that they should “plan for the best and prepare for the worst” in case the tax initiative fails and trigger cuts are enacted.

Hence, EGUSD’s financial planning will address the failure of the taxes, which translates into a $370 per student reduction, or $22 million.  In addition, EGUSD will have to account for the elimination of transportation funding, which could be up to $80 per student, or $4.8 million in additional reductions in 2012-2013.  Along with these state budget characteristics, EGUSD will need to include the impact of anticipated declining enrollment in the next school year.

As mentioned above, the Governor’s budget proposal also includes major changes to the way in which school districts are funded.  One of these changes involves creating a weighted student funding formula by consolidating most categorical programs and shifting these dollars into the revenue limit.  This change would be phased in over a five year period, beginning in 2012-2013.   This is still a topic of discussion within education circles and the legislature.

The Elk Grove Unified School District is analyzing the impact of the Governor’s budget proposal on the district’s finances.  More information will be posted on Budget Watch in the coming weeks.

LAO Releases November Forecast

On November 16, 2011 the nonpartisan Legislative Analyst’s Office (LAO) released the first of two forecasts related to the state’s “trigger cuts.”  The LAO’s forecast indicated a strong possibility that the trigger cuts could be put into effect.  According to the LAO’s report, the state’s budget is $3.7 million short due to declining revenues.  In addition, the LAO report predicted that the state faces a $13 billion deficit by the end of the year because the economy is growing slower than legislators predicted in the 2011-2012 budget.  Shortly after the LAO released its report, Ana Matosantos, Director of the Governor’s Department of Finance (DOF), said in a prepared statement that “Some level of trigger cuts will likely occur, but the exact amount will be known in December.”  The DOF is the agency that will issue the second economic forecast on which the trigger cuts will be based.

Based on the language in the final state budget, there are three fiscal benchmarks related to the trigger cuts:

  1. Should revenues be less than $1 billion short, no mid-year cuts will be made.
  2. Should the revenue forecasts be more than $1 billion, but less than $2 billion below the estimate for the 2011-12 state budget, midyear cuts of up to $601 million will be implemented, including a 4 percent, $23 million cut to child care, a $30 million reduction in community college funding, and a $10 per unit increase to community college enrollment fees in the summer of 2012.
  3. Should the forecasts fall $2 billion or more short, then additional reductions of up to $1.5 billion (4 percent) in school district revenue limits, $248 million in home-to-school transportation, and $72 million to community colleges are triggered.

In writing this piece of legislation, the legislators suggested that one way for school districts to implement these reductions would be to shorten the current 2011-2012 school year by seven school days.  EGUSD will not pursue a reduction of the 2011-2012 school year.

For more information, click below:

California Legislative Analyst’s Office November 16, 2011 Report
2012-2013 Budget: California’s Fiscal Outlook

Sac Bee: Analyst puts California’s deficit at nearly $13 billion

Top Ed: Big mid-year hit for Prop 98 likely

L.A. Times: Deeper cuts to state budget expected

May 5, 2011 – Board of Education Update

On May 5, 2011, Associate Superintendent Rich Fagan provided a third interim report to the Board of Education.

To view that report click here.

The district is required by law to submit a three-year budget plan to the Sacramento County Office of Education by July 1. EGUSD’s budget held a qualified certification since the fall of 2009. The district now faces the possibility of negative certification, which is assigned when a district will be unable to meet its financial obligations for the remainder of the current year or for the subsequent fiscal year. Even after EGUSD’s implements the $34.2 million of identified budget cuts for 2011-2012, the three-year budget plan includes a negative balance in 2012-2013 and again in 2013-2014. A negative certification will likely result in a State fiscal advisor being assigned to the District to assist with identifying areas for reduction.

To view a list of the 2011-2012 budget cuts click here.

March 15, 2011 – Update

On March 15, 2011, the Elk Grove Board of Education took action on approximately $35 million in reductions and the use of one-time funds in order to submit the 2nd Interim budget report to the Sacramento County Office of Education. The $40 million reflects the possible failure of the Governor’s proposed tax extension measure to either be placed on the ballot or be passed by voters.  The $35 million in reductions total the elimination of 438.63 positions from across the district.

Click here to view the presentation given to the Board by Rich Fagan, Associate Superintendent of Finance and School Support.

Click here to view the Board Approved 2011-2012 Budget Reductions.

Click here to view a Question and Answer fact sheet on EGUSD’s budget.

February 15, 2011 – Update

On February 15, 2011, the Elk Grove Unified School District’s Board of Education heard a report on the district’s proposed budget cuts needed to close a $40 million shortfall faced by EGUSD should the Governor’s proposed tax extension measure fail to come to fruition.

Rich Fagan, Associate Superintendent of Finance and School Support, provided a presentation on the budget cuts that have been proposed for the 2011-2012 school year. The $40 million in reductions are a combination of cuts that will impact all district divisions and schools, as well as the use of one-time dollars. The proposed reductions total almost $35 million, impacting almost 440 full-time equivalent positions.

Click here to see a list of the $35 million in proposed cuts.

Click here to see a copy of Fagan’s report to the Board.

On February 22, 2011, the Board of Education will be asked to adopt a number of resolutions that initiate the legally required steps to notify certificated and classified personnel of potential layoffs for the 2011-2012 school year. The adoption of the resolutions is another step in a lengthy budget process. School districts in California are required by Education Code to notify certificated staff, which includes teachers, of possible layoff by March 15 of every year for the following year. In EGUSD, it has been the practice of both the district and labor associations to notice classified staff at the same time as certificated staff. Due to the state’s budget process, school districts must make this determination of possible layoffs based on the most current state budget information available.

EGUSD is currently working on identifying the budget cuts that would be needed should the election pass. While the budget reductions will be less, EGUSD faces a structural deficit in subsequent years following three years of using one-time dollars to retain as many positions and programs for students as possible. More information on these budget cuts will be posted in the coming weeks.

The presentation to the board also included a report by Tamara Sanchez, Assistant Superintendent of Business Services for the Sacramento County Office of Education (SCOE). Sanchez commended the board for continuing to be forward thinking as they move through these tough budgetary times. SCOE has oversight of school districts’ budgets in Sacramento County. Sanchez said that in order for her office to accept budget cuts there must be evidence that the district can demonstrate sustainable completion of the cuts submitted to the county.

Sanchez also shared with the board that, like EGUSD, school districts across California are finding that after three years of using one-time dollars to push back budget cuts, the bleak economic outlook means they must now look at the sustainability of their budgets over time.

Sanchez also reaffirmed that EGUSD will be required to reflect in the district’s 2nd Interim report due to SCOE in March the worst case scenario based on the failure of the tax extension measure. In order to meet that obligation, EGUSD will notice staff by the March 15 deadline in order to be in a position to reduce its budget by $40 million should the tax measure fail.

October 8, 2010 – Budget Update

Signed 2010-2011 California State Budget

On October 8, 2010, Governor Arnold Schwarzenegger signed the 2010-2011 California State Budget – 100 days past the June 30th deadline.  The $86.6 billion general fund spending plan includes a variety of elements aimed at addressing the $19.1 billion shortfall for the State of California.

For education, the state budget raises more questions than it answers.  Thankfully, the final budget did not cut education deeper than the Governor’s May revision.  However, a number of factors raise questions as to the reliability of these dollars.  These include questions around a $5 billion dependence on federal revenues that have yet to be allocated to California; how a planned $1.7 billion revenue deferral will actually impact school district budgets; and how some of the Governor’s vetoes will impact education.  Other factors that will impact the budget are the upcoming election and the economy.

The adopted 2010-2011 state budget appropriates $49.7 billion for ostensibly funding Proposition 98, the statutory funding guarantee for public schools.   However, the $49.7 billion is $4.3 billion below the Proposition 98 guarantee, which has been suspended for the 2010-2011 school year.  The education portion of the state budget also includes a $1.7 billion deferral (referenced above).  School finance experts are advising districts to be wary of this deferral.   The state is telling school districts to include the deferral in their 2010-2011 budgets, but to not expect any of these dollars until July 2011.

Prior to signing the budget, the Governor vetoed $962.5 million in state general fund spending, including a reduction to mental health services, which has implications for some special education students. The veto shifts the responsibility of these services from counties to school districts.

Federal Jobs Bill

EGUSD has received $10.6 million in federal funding as part of California’s $1.2 billion allocation of the Federal Jobs Bill.  The $10.6 million represents 90 percent of EGUSD’s allocation.  The first disbursement is based on 2009-2010 Average Daily Attendance (ADA).  The final 10 percent will be paid out next spring based on the district’s ADA for the 2010-2011 school year.

The district is still analyzing the restrictions and possibilities of using these one-time dollars.  In anticipation of receiving these funds, Superintendent Steven M. Ladd, Ed.D., met with EGUSD’s bargaining units to share information.  The volatility of the state’s financial position causes the district concern, and requires that EGUSD staff closely monitor any legislative action, which could attempt to supplant the federal jobs bill funds.  More information will be shared with EGUSD stakeholders once it is available.

Layoffs

The number of staff that remains on the layoff list for the 2010-2011 school year has decreased substantially over the past months.  This is a result of the negotiated agreements with the district’s labor unions, the early retirement incentive program, the normal rate of retirement and resignations (attrition) and the ongoing effort by EGUSD’s Human Resources Department.  Of the employees who received a final notice of layoff, 45 certificated and 76 classified employees currently remain on the reemployment list.

Adopted 2010-2011 Budget Reductions

The following list details the budget reductions for the 2010/2011 school year adopted in order to submit a balanced budget to the Sacramento County Office of Education by the July 1 deadline.  The list reflects the changes made following the Governor’s May revise.

To see a list of the cuts, click here.

June 17, 2010 – Update

EGUSD and EGEA have determined the dates of the nine furlough days (five instructional days and four pre-service days) for the 2010-2011 school year.  The 2011-2012 furlough days will be negotiated at a later time.

The furlough days have been incorporated into the calendar that the district distributes each year.  To view the calendar click here.

In addition, the superintendent, associate superintendent, administrators and other members of EGTEAMS, as well as ATU and PSWA, will take concessions equivalent to those taken by EGEA members.  EGUSD also continues its ongoing negotiations with all other employee associations.

April 12, 2010 – 2009-2010 Furlough Days

For the 2010-2011 school year, the Elk Grove Unified School District is required to make $60.5 million in budget reductions as the result of the state’s economic crisis. As the district moves through the process of balancing its budget we continue to seek solutions that will keep staff and programs in place to support our students.

With this in mind, the Elk Grove Unified School District (EGUSD) and Elk Grove Education Association (EGEA) signed a tentative agreement that will implement two unpaid furlough days for teachers, counselors, librarians, nurses and all other EGEA bargaining unit members for the 2009-2010 school year. In addition, EGUSD’s district and site administrators, classified managers and other staff represented by EGTEAMS, the Amalgamated Transit Union and Psychologists’ and Social Workers’ Association have also agreed to two furlough days in the current 2009-2010 school year. The superintendent and the district’s associate superintendents will take two furlough days in 2009-2010 and seven furlough days in 2010-2011.

While the agreement between EGUSD and EGEA does not change the need to reduce the district budget by $60.5 million, it does allow the district to restore 29 counseling positions at the secondary schools for one more school year. Without the furlough days, these 29 counseling positions would have been eliminated as the result of state budget cuts.

This is a positive first step. However, the district is still required to reduce the 2010-2011 budget by $60.5 million through a combination of position and program reductions as well as negotiated cost containment measures in partnership with our labor associations.

Furlough days mean that schools will be closed and students will not come to school on these two days.  Due to the various schedules within EGUSD schools, the furlough days vary. The following summarizes the changes to this year’s school schedule:

Grade Level/Schedule Minimum DayLast Day of School Furlough Day 1School Closed Furlough Day 2School Closed
Middle Schools, High Schools and Alternative Schools (Grades 7-12)Traditional Schedule only Not Applicable Friday,
April 30, 2010
Friday,
May 14, 2010
Elementary Schools (Grades K-6)Traditional Schedule only Monday,
May 24, 2010
Tuesday,
May 25, 2010
Wednesday,
May 26, 2010
Elementary Schools (Grades K-6)Track D only Wednesday,
May 26, 2010
Thursday,
May 27, 2010
Friday,May 28, 2010
Elementary Schools (Grades K-6)Tracks A, B, and C only Tuesday,
June 22, 2010
Wednesday,
June 23, 2010
Thursday,
June 24, 2010
PreschoolsTraditional Schedule only Not Applicable Wednesday,
May 12, 2010
Thursday,
May 13, 2010
PreschoolsTrack C only Not Applicable Wednesday,
June 9, 2010
Thursday,
June 10, 2010

Furlough days for adult education teachers will vary.  Please contact Adult Education for dates.

Furlough Day Information – Español | Hmong | Vietnamese

Furlough Day Information for EGUSD Special Education Programs

Frequently Asked Questions – Furlough Days

The tentative agreement also includes the approval of the modified traditional schedule for the 12 elementary schools that will move from a year-round schedule next year.  These schools include: Maeola R. Beitzel, Raymond Case, John Ehrhardt, Robert J. Fite, Roy Herburger, Samuel Kennedy, Anna Kirchgater, Herman Leimbach, Charles Mack, Barbara Comstock Morse, John Reith and Union House.  The district is also evaluating whether the communities of Florence Markofer, Ellen Feickert and Florin Elementary want to move to a modified traditional schedule.

The modified calendar can be viewed by clicking here.