Elk Grove Unified School District

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EGUSD Budget Information

The Elk Grove Unified School District is closely monitoring the budget discussions taking place at the state level. As the district learns more about how state decisions will affect the district’s budget outlook, information will be posted on this Budget Watch page.

State law requires that California school districts submit a three-year balanced budget. In order to meet our state mandates, the district is being proactive in exploring possible areas to cut for the 2009-2010, 2010-2011 and 2011-2012 school years.

If you have any questions about the information on this page, please contact EGUSD Communications at (916) 686-7732.

Budget Timeline 2010-2011 School Year
Nov. 03, 2009	EGUSD’s Board of Education’s 1st reading of budget reductions for 2010-2011
Nov. 17, 2009	EGUSD’s Board of Education takes action on budget reductions for 2010-2011
Jan. 2010	Governor submits proposed state budget to the Legislature
Jan.	California’s Legislative Analyst releases formal analysis of the Governor’s budget
March 15	Deadline to send preliminary notices of potential layoff to certificated employees
May	Governor releases May revision of state budget
May 15	Deadline to send final notices of layoff to certificated employees
June 15	Constitutional deadline for Legislature to pass state budget bill
June/July	Governor must sign or veto the state budget bill within 12 days of legislative action. Governor may use line-item veto to reduce or eliminate specific expenditures.
July 1	Deadline for school districts to submit adopted budget to the County Office of Education
July 1	EGUSD’s budget reductions for the 2010-2011 school year go into effect

March 2, 2010 Board of Education Update

On March 2, 2010 the Board of Education took action to adopt a number of resolutions that initiate the legally required steps to notify certificated and classified personnel of potential layoffs for the 2010-2011 school year. The resolutions will result in preliminary notification of more than 1,000 EGUSD staff, about one-sixth of the district’s employees. This painful ordeal is a result of the State of California’s lack of funding for public education.

The adoption of the resolutions is another step in a lengthy budget process. School districts in California are required by law to notify certificated staff, which includes teachers, of possible layoff by March 15 of every year. In EGUSD it has been the practice of both the district and labor associations to notice classified staff at the same time. 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.

Based on the Governor’s January budget proposal, EGUSD needs to reduce its 2010-2011 budget by $60.5 million. These cuts follow two years of budget reductions during which time EGUSD’s budget was reduced by more than $40 million. In total, the district will have reduced its budget by more than $100 million over three years as the result of a lack of funding from the state.

The adoption of the resolutions direct the Associate Superintendent of Human Resources to notify all certificated employees associated with the reduction and/or elimination of 545.6 full-time equivalent (FTE) certificated positions. In addition, the Board considered and adopted three resolutions directing the associate superintendent to notice all classified employees associated with a reduction in force of 272.2 FTE positions.

Of these 817.8 certificated and classified positions, approximately 300 FTE are being noticed because their position is funded through grants or categorical dollars that have expired or revenue sources that are uncertain. The district annually notices a number of these positions until their funding stream is confirmed. Once the funds are secured, offers of employment are once again extended to these individuals.

The difference in number between total notices and total positions is due to several reasons: 1) not all district employees are full-time; 2) multiple employees often share the same seniority date and/or hire date; and 3) layoff rights ensure reemployment at lower classifications requiring a displacement process referred to as “bumping.” In the latter case, all employees affected would require notification.

At the March 2 meeting, the Board of Education also took action on resolutions releasing temporary employees; long-term substitutes; a resolution outlining the tie-breaking criteria for employees with the same seniority start date; and, a resolution that excludes teachers with full special education credentials, physical science credentials and mathematics credentials from consideration for reduction and/or elimination.

In the coming weeks, the budget information will be refined and notices, when possible, will be rescinded accordingly. The district has been and will continue to be creative with funding to provide Elk Grove Unified students the best educational opportunities possible.

For more information about the positions, please click on the resolutions below.

Resolution #42	Resolution of Intention to Dismiss Certificated Employees
Resolution #43	Resolution to Determine Tie Breaking Criteria
Resolution #44	Resolution of Release and Reassignment of Certificated Administrators
Resolution #45	Resolution to Release Certificated Administrators
Resolution #46	Resolution to Determine Criteria for Deviation From Terminating a Certificated Employee in Order of Seniority
Resolution #47	Resolution for Release and Non-Reelection of Certificated Long-term Substitute and Temporary Employees
Resolution #48	Resolution Eliminating or Reducing Classified Positions
Resolution #49	Resolution Eliminating or Reducing Classified Positions
Resolution #50	Resolution Eliminating Classified Positions
Resolution #51	Resolution Eliminating or Reducing Classified Positions

February 18, 2010 - Parent Budget Presentation

On February 18, 2010, Superintendent Steven M. Ladd, Ed.D. held a parent meeting at the Cosumnes Oaks High School Performing Arts Center to inform key parent communicators at school sites about the budget crisis. The presentation included an overview of K-12 education funding and a look at how the state’s budget continues to detrimentally impact the Elk Grove Unified School District.

Click here to see a copy of the presentation

February 17, 2010 Update

On February 16 Richard Odegaard, the Associate Superintendent of Finance and School Support, gave the Board of Education an update on the District’s budget.

Click here to view the presentation to the Board of Education.

At the meeting, the Board approved the district to move forward with an early retirement incentive to certificated non-management. The Supplemental Early Retirement Program (SERP) will be put in place to decrease the number of layoffs and save money on the higher salaries of more tenured teachers who retire by July 1, 2010. An extensive study demonstrated that certificated non-management staff members are the only employee group that would result in a savings to the district when offered the SERP. The district estimates that the SERP would yield about $2 million in savings and ultimately reduce the number of final layoffs by about 165 full time equivalent (FTE) positions. The $2 million will be applied against the district’s $60.5 million in cuts.

In addition, at the meeting, Superintendent Steven M. Ladd, Ed.D. and the district's six associate superintendents announced that they will take two furlough days this school year, five furlough days in 2010-2011 and a freeze in step salary increases in 2010-2011. The six include Associate Superintendent of Elementary Education Donna Cherry, Associate Superintendent of Human Resources Glen De Graw, Associate Superintendent of Education Services Nancy Lucia, Associate Superintendent of Finance and School Support Richard Odegaard, Associate Superintendent of Secondary Education Christina Penna and Associate Superintendent of Facilities Robert Pierce. The superintendent and associate superintendents do not receive a lottery check or column salary increases.

The Board also approved a plan to fund high school athletics for $1.6 million, which is a reduction of more than $850,000, and to move forward with implementing a Voluntary Athletic Contribution (VAC) plan. The purpose of the plan is to support EGUSD’s high school athletic programs and help offset district and site costs associated with the potential reinstatement of any eliminated programs next year or in future years. A parent focus group and the Athletic Budget Team worked through the winter to develop the athletic budget. Their budget proposal recommends maintaining all existing varsity and junior varsity programs.

VAC donations will not be mandatory and a student will not be adversely affected in terms of her/his participation in the district’s athletic program if the family chooses not to make a financial contribution.

Click here to see a copy of the presentation that details the athletic cuts and the Voluntary Athletic Contribution.

The district continues to work on the identification of the additional $18.5 million in reductions that are now required. These budget cuts are on top of the $42 million previously identified for 2010-2011.

It is maddening to recognize that cuts to public education continue. Public education may face more news of additional reductions in the coming months as the budget moves through the legislative cycle. The Governor’s proposal is balanced based on $6.9 billion from the federal government. However, when President Obama released his budget in January, California was slated as receiving only $1.5 billion in federal funding. The district will continue to monitor how the gap between those two figures impacts public education funding.

Click here to view a list of the $42 million in budget reductions.

February 16, 2010 Update

The financial picture for our district continues to decline following further analysis of the Governor’s budget. On February 4, 2010, the Elk Grove Unified School District received information from the Sacramento County Office of Education, which has oversight of school districts’ budgets in our region, and school finance experts that the district needs to reduce its budget by an additional $5 million beyond the $13.5 million previously identified as a result of the Governor’s January budget proposal. The $18.5 million is on top of the $42 million in reductions that the Board took action on in November. That brings EGUSD’s 2010-2011 need for budget reductions to $60.5 million minimally.

The district, with the help of the Budget Committee, continues to work to identify the additional $18.5 million in reductions. Unfortunately, following year after year of budget cuts, the Elk Grove Unified School District will not be able to make these reductions without significant layoffs and/or concessions from labor associations. There is nowhere EGUSD can go without having this level of cuts impact our classrooms and staff. Of the district’s approximately $478 million budget, 88 percent is spent on employee compensation.

California school districts are mandated by law to notice certificated staff, which includes teachers, of potential layoff by March 15. Final notice must be given by May 15. It has been the district’s practice, in consultation with employee associations, to also provide classified staff with notice by March 15. Unlike certificated staff, classified staff is only required to receive one notification.

In the meantime, the Elk Grove Unified School District continues to have ongoing conversations with its labor associations with regards to furlough days, freeze in step and column salary increases and a temporary suspension of the lottery check paid to employees each fall. The district’s negotiations are continuing with a desire to reach agreement on possible cost containment measures that may enable the district to keep as many of our staff working as possible.

January 19, 2010 Update

The financial outlook for education continues to look dismal. In January, Governor Arnold Schwarzenegger released his proposed state budget for 2010-2011. The Governor’s budget attempts to address an estimated $19.9 billion budget deficit for the state.

The Governor stated that he was “protecting education” in his budget and “fully funding Proposition 98.” On the face that is good news, until you dig deeper into the Governor’s proposal. The reality is that K-12 public education faces more cuts in 2010-2011.

The Governor’s budget proposal includes a negative .38 percent Cost Of Living Adjustment. That equates to another budget cut of about $24 per student for Elk Grove Unified School District for the 2010-2011 school year. In addition, the Governor’s budget further proposes a $1.5 billion cut to K-12. While the Governor’s proposal indicates that the $1.5 billion would come out of school district administrative costs, finance experts agree that after years of budget reductions, the target of the cut will likely change.

In addition, The Governor also proposed eliminating the sales tax on gasoline, and changing it to an excise tax on gasoline. That hurts public education. Proposition 98 sets the minimum funding level for education. The Proposition 98 formula includes sales taxes, but not excise taxes. The shift to an excise tax would lower the Proposition 98 minimum funding level for education.

These items in the Governor’s January budget proposal equates to $13.5 million in additional cuts to EGUSD for 2010-2011. That is in on top of the $42 million already identified for reduction for next school year for a total of $55.5 million in reductions.

The Elk Grove Unified School District is reconvening its budget committee and will begin the process of identifying the additional $13.5 million in budget reductions. As the district moves forward through this process, we will update parents, staff and community members through this website.

At the January 19, 2010 Board of Education meeting, Richard Odegaard, the Associate Superintendent of Finance and School Support, gave a presentation on the Governor’s January proposed budget and its potential impact on education.

Click Here to View the Governor’s Budget Proposal 2010-11 presentation as a (.pdf)

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November 18, 2009 Update

At the November 17, 2009, Board of Education meeting, the board approved a list of $42 million in cuts for 2010-2011 in order to submit a balanced budget as part of the first interim budget report due to the Sacramento County Office of Education on December 15, 2009. The list of cuts is preliminary and another step in the budget process. The Board will be asked to adopt the first interim budget report, which will reflect these cuts, at the December 8 Board of Education meeting. Scroll up to view the budget development timeline for California's school districts.

Based on the most current information available, EGUSD would need to make about $42 million in reductions to balance the state required multi-year projections through 2010-2011. If there are no changes to the current state budget in the January Governor's Budget proposal, EGUSD will need to make an additional $5.2 million in cuts to balance the state required multi-year projections through 2011-2012.

To view the Power Point presentation given at the board meeting and the list of identified reductions, click here.

The list includes a $2.5 million reduction to the district's athletic program. This figure represents the reduction of the entire athletic program. Superintendent Ladd is recommending restoring $1.6 million through some of the savings that would be gained from increasing the number of year-round schools to traditional or modified traditional schedules. At this time the programs associated with the remaining $800,000 have not been determined. The district will continue to work with parents and the community to find creative solutions to keep as many programs in place as possible, including a possible voluntary athletic contribution and fundraising.

The list of cuts is preliminary. Dollar figures associated with the positions are based on average salaries and benefits. These dollars will be adjusted as EGUSD moves through the budget cycle.

Conversion of 12 schools from year-round to traditional

In order to save money, the district is considering the possibility of moving 12 multi-track year-round elementary schools to traditional or modified traditional schedules. Schools were selected based on their current enrollment and enrollment projections over the next three to five years. The schedule change would result in a savings of $300,000 per school. District staff members have conducted a series of meetings with staff and communities at the following schools to explore this possibility:

Beitzel
Case
Ehrhardt
Fite
Herburger
Kennedy
Kirchgater
Leimbach
Mack
Morse
Reith
Union House

The Board of Education will hear a report on the calendar conversions at the January 5, 2010 meeting.

Link to Budget Archives to see past updates

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EGUSD Budget Comment Online! Graphic Logo

PLEASE SHARE YOUR IDEAS WITH US!

The Elk Grove Unified School District has set up this webpage to provide an avenue to gather ideas of how to approach budget cuts imposed on the district by the state for 2009-2010. We appreciate any ideas you might have as to how to solve the problem. Please use the comment fields below to give us your suggestions and/or thoughts on the budget deficit.

We have provided space for you to include contact information in the designated fields. This is not mandatory information. We will not share this information with anyone. We would like to be able to contact you in case we have questions about your comments or suggestions.

Thank you in advance for your input. Ideas and feedback will be important as we work together to solve EGUSD's budget deficit.

Steven M. Ladd, Ed.D.
Superintendent

Please share your ideas in the space below: