Salem‐Keizer
Public
Schools

Budget
Message
2011‐12

All
students
graduate
and
are
prepared
for
a
successful
life.

Budget
information
available
online
at
www.salemkeizer.org
10
Years
of
Funding
History

03‐04
Cuts:

02‐03
through
05‐06
Adds:

06‐07
through
08‐09
Cuts:

09‐10
through
10‐11
 FTE
changes
over
time
2002‐06 2006‐09 2009‐11
cut added cut
Licensed
Staff (64) 167 (12.5)
Classified
Staff (127) 69 (8)
Supervisory (14.0) 8 (1.5)
In
the
2009‐10
budget
process
Federal
Stimulus
Funds
paid
for
31
FTE
licensed
staff,
15
classified
staff
and
1.5
supervisors.
Has
student
achievement
improved?
 Our
Vision
All
students
graduate
and
are
prepared
for
a
successful
life.
 Academic
Achievement:
Reading

The
graph
shows
the
percentage
of
students
meeting
or
exceeding
state
standards
 Academic
Achievement:
Math

The
graph
shows
the
percentage
of
students
meeting
or
exceeding
state
standards
 Academic
Achievement:
Science

The
graph
shows
the
percentage
of
students
meeting
or
exceeding
state
standards
 Academic
Achievement:
Writing

The
graph
shows
the
percentage
of
students
meeting
or
exceeding
state
standards
Our
current
reality
 Our
Challenge…
• This
budget
is
built
on
a
$5.8
billion
funding
level
for
K‐12
education
• Our
shortfall
will
likely
be
as
high
as
$55
million.
• The
numbers
keep
changing…
• May
forecast
• May
adjustment
• Ending
Fund
Balance
• Legislative
action
• We
need
our
employee
groups
to
help
solve
the
shortfall.
 How
is
the
shortfall
determined?
We
start
with
the
premise
that
we
will
maintain
our
current
service
level
and
then
we
add
costs
for:
•Restoring
4
furlough
days
•Negotiated
salary

and
benefit
increases
(Steps
and
COLA)
•Projected
increase
in
student
enrollment
•Inflation
•Loss
of
federal
funds
(AARA)
•A
substantial
increase
in
the
PERS
rate

For
2011‐12
we
estimate
this
cost
to
be
$379,391,404
 How
is
the
shortfall
determined?

We
wait
to
see
how
much
funding
is
allocated
by
the
State
of
Oregon.

This
year,
the
State
has
less
money
to
allocate
.

We
estimate
our
total
revenue
to
be:
$313,396,285*
*Includes
flow
through
revenue
from
property
taxes,
WESD
in
lieu
of
services,
interest
earnings
and
fees.
 How
is
the
shortfall
determined?
Here
is
the
math:

Estimated
revenue
for
2011‐12 
$313,396,285

Costs
to
maintain
current
service
levels $379,391,404

Shortfall $


‐65,995,119
 Addressing
the
shortfall….
Total
shortfall:
 $
‐65,995,119

Apply
the
following
to
offset
the
shortfall:

•Projected
Ending
Fund
Balance 

$12,000,000*

Remaining
Shortfall $‐53,995,119

*Does
not
include
May
adjustment
from
ODE
 Addressing
the
shortfall….
Amount
of
shortfall
remaining
:
 


$‐53,995,119

Apply
the
following
to
offset
the
shortfall:

•PERS
Reserves 



$5,000,000

•Transfer
from
Capital
Maintenance* 



$1,635,000

Amount
of
shortfall
remaining
:
 

$‐47,360,119

*These
costs
will
now
come
from
bond
funds.
 Addressing
the
shortfall….
Amount
of
shortfall
remaining
:
 


$‐47,360,119

•Program
reductions/eliminations 



$34,307,231

Amount
of
shortfall
remaining
:
 

$‐13,052,888

•Employee
concessions
and/or


additional
cuts. 


$13,052,888

Balance 




















$0
 How
do
you
decide
what
to
cut?
Vision
Strategic
Plan
Community
listening
sessions
this
fall
Staff
communication
groups
Input
from
principals
and
other
supervisors
Public
hearings
Feedback/input
through
outreach
Key
community
leader
communication
groups

These
all
factor
into
the
decision‐making
process.
How
do
you
decide
what
to
cut?
What
we
can
do What
must
be
negotiated
Raise
class
size Salary
Adjustments

Eliminate
or
reduce Furlough
Days
programs

Reduce
central
services Benefit
Packages
How
do
you
decide
what
to
cut?
The
proposed
reductions
 What
are
the
proposed
cuts?
Support
and
Central
Administration
$7.6
million/66
FTE

10
administrators
28
custodians
9
maintenance
workers
15.00
classified
support
staff
3.5
licensed
staff
Repurpose
3
small
schools
Reductions
in
the
funds
available
for
• Textbooks,
computers
and
software
• Contracted
services
• Operational
costs
 What
are
the
proposed
cuts?
Instruction
$26.7
million/335
FTE:

248

licensed
staff
members
• 160
classroom
teachers,
48
library
media
teachers,
10.5
literacy
teachers,
6
elementary
PE,
3
elementary
music,
19
counselors,
1
behavior
specialist
.
87
Instructional
assistants
or
classified
staff.
Elimination
of
general
fund
allocation
for
middle
school
after
school
programs
and

6th
grade
jump
start.
Reductions
to
athletics
at
the
secondary
level.
Reduction
in
the
number
of
teacher
differentials
 What
are
the
proposed
cuts?
Percentage
of
total
General
Fund
FTE
by
classification
 There
are
no
easy
cuts
Reductions
to
the
budget
must
be:
 Legally
compliant
 Sustainable
 Operationally
sound
 Support
academic
achievement
for
all
students

We
must
downsize
the
organization
to
balance
the
budget
and
prepare
for
additional
reductions
in
2012‐13.
 There
are
no
easy
cuts
Our
current
projections
indicate
additional
cuts
in
2012‐13
in
the
range
of
$20
–
$25
million.

For
the
biennium
(2011‐13)
that
could
mean
reductions
of
up
to
$80
million.

We
will
be
making
additional
cuts
for
the
2012‐13
school
year.
 What
is
the
bigger
issue?
 Our
Vision:
All
students
graduate
and
are
prepared
for
a
successful
life.
 Upcoming
Meetings
Tuesday,
May
3
 The
budget
committee
will
hear
public
testimony
until
9:00
p.m.
Wednesday,
May
4
from
6
–
8
p.m.
 The
budget
committee
will
hear
public
testimony
until
8:00
p.m.
and
will
begin
deliberations
at
the
conclusion
of
the
testimony.
Monday,
May
9
from
6
–
7
p.m.
 The
budget
committee
will
hear
public
testimony
until
7
p.m.
and
will
begin
deliberations
at
the
conclusion
of
the
testimony.
Wednesday,
May
11
(if
needed)
 The
committee
will
continue
deliberations
and
will
vote
on
a
budget
to
recommend
to
the
School
Board.
All
meetings
begin
at
6:00
p.m.
and
will
be
at
Claggett
Creek
Middle
School

Tuesday,
June
28
–
Budget
Adoption
 The
School
Board
will
adopt
the
budget.

Location
to
be
determined.