Budget Cut Options

Last week, the Board of Trustees held a study session on the budget. We started with a list of options for cuts that we can make as we work to balance the 2010-2011 and 2011-2012 budgets. These cuts are divided into two categories - those that the board can unilaterally impose, and those that would require agreement of our bargaining units during negotiations. As we discovered, the only way to come up with $8 million in cuts over the next two years is through a combination of cuts from the two groups.

A complete list of potential cuts is available on the district's website. That document also includes scenarios for balancing the budget that were derived by district administration before the study session.

Some of the largest savings that we could realize would require negotiation. These are K-3 class size, 4-8 class size, and reduction in the work year. By shortening the work year for all staff in the district by 2.5 days, we could save over $500,000. Over two years, that is 1/8 of our deficit. Increasing class size to 24:1 at K-3 would save $1 million each year. Increasing class size at grades 4-8 to an average of 32:1 would save an additional $816,000 per year. The board discussed pursuing these three changes, which would provide $4.6 million of the $8 million in cuts.

The discussion of budget cuts that don't require negotiation was much harder. Based on our discussion, the cuts could be grouped into three categories based on how comfortable the cuts would be. The first group would be enough to balance the budget in combination with the negotiated items listed above. Some cuts are already a done deal: reduce the salary of the superintendent and assistant superintendents ($10,000); reduce the work year for delivery drivers to 10 months ($10,000); and leave two maintenance positions vacant ($96,000). The rest of these "tier 1" cuts include reducing the assistant principals to 1/2 time at each middle school, transferring $450,000 worth of SLIP funds from schools to the district, and eliminating one position in the business office ($91,000).

The second tier of cuts includes reducing the work year of school secretaries and clerks by 10 days ($72,000) and reducing the number of middle school counselors from 6 to 4.5 ($160,000). The third tier includes things that nobody on the board wants to do, but must remain on the list in the event of failure to negotiate increases in class size and/or a shorter work year. These include eliminating the elementary school music program ($362,000), closing a school ($380,000), reducing middle school counselors to 3 (another $160,000), and reducing media tech (library staff) work days by 1 hour ($85,000).

In the absence of a negotiated increase of class size at the K-3 grade levels, the district may be forced to withdraw from the class size reduction program and reset K-3 classes to a 30:1 ratio. The savings from such an action would be $156,000 per year.

There are some additional items that will likely be used in some way to balance the budget over the next two years. First is a proposal to reorganize the middle school instructional schedule in order to save between $500,000 to $780,000 per year. This would likely mean fewer instructional minutes for students and less time for elective classes. Secondly, we have the flexibility to reduce our reserves below the state mandated level of 3%. We are considering reducing the reserves by 1% ($630,000) in order to prevent some of the cuts.

If all three of the tiered cut solutions, plus elimination of K-3 class size reduction, use of the reserves and reorganization of the middle school schedule are done, the total savings to the district over the next two years would be $6.8 million. That falls short of the $8 million deficit we are facing. Thus the importance of finding some negotiated solutions.

The board will continue discussing these scenarios at every board meeting for the rest of the school year. There are two meetings scheduled each month. In addition, there are four public hearings being held in February to allow the public to provide their feedback on the proposed cuts. Tonight, the board will ratify a budget calendar for the next 5 months. All upcoming meetings are posted on the district calendar.

(originally posted 1/19/2010)