2007 Budget Recap for AUSD
November, 2006 Developments
At the November 14 BOE meeting, AEA President requested the staff and the Board of Education stop blaming the teachers for AUSD's bugdet crisis.
At the November 28 BOE meeting, the Board approved budget transfers to cover the $2.1 million deficit. These budget transfers were one-time monies and the Board will need to ongoing projected deficits for the 2007/08 and beyond.
December, 2006 Developments
At the December 12 BOE meeting, the Board approved the 2006/07 first interim report.
January, 2007 Developments
Assessment of Governor's proposed budget for AUSD
- Governor's budget
- $269M for Cal Works from non-Prop 98 funds
- $627M for Home-to School Transporation from Prop 98 to Public Transportation Account
- COLA
- $1.9B to fuylly fund the 4.04% estimated statutory COLA (revised down from 4.7% in prior year's budget)
- AUSd estimated share will be $255 per ADA for approximately $2.1 million
- Growth
- Enrollment growth is expected to decline by .39%
- Public school enrollment projected to decrease .77% while charter school enrollment is projected to grow 9.5%
- Revenue Limit Deficit
- No defict reduction (.i.e COLA is fully funded)
- Equalization Aid
- No funding to level up base revenue limits to the 90th percentile.
- Approximately $100M is needed to fully fund equalization.
- Mandate Reimbursement
- Minimum funding of $38K
- Districts will not receive reimbursements this year
- Categorical Programs
- $10M for teaching training for industry and business professional entering the teaching profession
- $52M for Career Technical Education to improve linkages between high schools and California Community Colleges and align curriculum
Includes two controversial shifts
February Developments
At the February 27th BOE meeting, the Board approved the $1,400,000 in budget reallocations.
March Developments
Alameda plans to participate in its first Advocacy Day on March 28th. Joining Livermore, San Ramon and Danville school districts, concerned parents will be traveling to Sacramento.
May Developments
Staff presented a report on the May Revise as it relates to Alameda Unified School District at the May 22nd BOE meeting. CBSA provided their analysis of the May Revise.
Additional Information
2003 State Budget Crisis By Ryan White, Alameda Sun, November 17, 2006 But the anger wasn’t theirs. A large number of Alameda Unified School District (AUSD) teachers turned out at the school board meeting, holding large red cards bearing the name of their respective school above their heads. They were there to protest what they say is the district’s unfair imputation that they are to blame for AUSD’s current budget crisis. Alameda school board members were seeing red Tuesday night. But the anger wasn’t theirs. A large number of Alameda Unified School District (AUSD) teachers turned out at the school board meeting, holding large red cards bearing the name of their respective school above their heads. They were there to protest what they say is the district’s unfair imputation that they are to blame for AUSD’s current budget crisis. Several dozen teachers raised their red cards in unison as the teacher’s union president Earl Rivard delivered an impassioned address to the board in which he repeatedly objected to the idea that teachers were to blame for the budget shortfall. “You have to stop taking it out on us,” Rivard said, suggesting the district was pinning blame for the deficit on teachers. Rivard also criticized the district for failing to anticipate the then-pending arbitration settlement between the district and the Alameda Education Association, the teacher’s union, when they passed the budget last June. The board approved a budget June 27 that avoided state sanctions by meeting the required 3 percent reserve level. The budget did not, however, fully anticipate the financial fallout from the then-ongoing arbitration between the teacher’s union and the district. The arbitration decision, handed down to the district July 19, approved a 3.9 percent raise in teacher salaries, costing the district a total of $4.2 million and leaving a $1.4 shortfall in this year’s budget reserves. “The result is that we’re no longer in a fiscally sound situation,” board member Mike McMahon said in an interview Wednesday. Rivard, speaking on behalf of the teachers at the meeting, said the budget was never balanced because it didn’t take into account the money the district owes the teachers in deferred salary increases for the past two years. “The balanced budget in June was a sham — smoke and mirrors, no balance,” Rivard said, as teachers in the audience nodded in agreement.
2004 State Budget Crisis
2005 State Budget Crisis
2006 State Budget Crisis
2007 State Budget Crisis
2003 AUSD Budget Issues
2004 AUSD Budget Issues
2005 AUSD Budget Issues
2006 AUSD Budget Issues
Teachers Say They’re Not to Blame for Budget Woes
“The intent by both parties was to give (the teachers) their fair share while maintaining the fiscal solvency of the district,” McMahon said. “The devil is in the details of the implementation.”
McMahon points to declining student enrollment as the reason AUSD hasn’t been able to honor teacher’s contract demands while still fully funding school programs.
“The pie actually got smaller,” he said, since fewer students means less money from the state for AUSD. “The size of the pie was X when (the teacher’s union) negotiated the contract. The money got smaller because of declining enrollment.”
With fewer students, McMahon said, the district could not have agreed to the union’s salary demands over the past two years and still funded the budget without out making huge cuts.
At the Oct. 24 board meeting, AUSD Chief Financial Officer Luz Cázares presented the district’s options for closing the current $2.1 million deficit.
Much of the relief may come from $1.5 million in deferred reimbursements from the state — money the district is owed for implementing state mandated programs and requirements.
But the district will be forced to make more tough cuts in the months ahead. The board of education now has until February 2007 to figure out how they’ll reduce spending for the 2007-08 fiscal year.
On June 27, 2006 the Board approved a balanced budget with an ending balance of $5,000,000 that met 3% required reserve level, and left an available balance of $2,700,000 for spending priorities. On July 19, 2006 the District lost an arbitration decision and costing the District $2,100,000 per year retroactive to July 1, 2005. In the current fiscal year (06/07), the arbitration decision will cost $4,200,000 ($2,100,000 for FY05/06; $2,100,000 for FY06/07). The impact of the arbitration decision to the District will be a shortfall of $1,500,000.
Since the school year began, the Disrict has made budget revisions to add staffing as required by contractual obligations ($550,000) and to pay for various special education settlements ($100,000). The budget revisions to date total $700,000 and result in an additional decrease to the District's reserves. The impact of the arbitration decision ($1,400,000) and the budget revisions ($700,000) is total shortfall in our reserves of $2,100,000.
Our goal is to replenish the District fund reserves for Fiscal Year 2006/07 to meet the 3% level required by the State to avoid sanctions. The District must take spending reductions by February 27, 2007 to fund on-going costs. Staff will review the spending revisions aimed at replenishing the Fiscal Year 2006/07 reserves and the timeline to identify and approve the spending reductions for Fiscal Year 2007/08.
| Item | Amount | Type | Description |
| Cateogrical Block Grant Transfer | $105,097 | On-Going | AB 825 allows school districts to transfer funds between specified grants. Specifically, up to 15% can be transferred out of a block grant, and up to 20% transferred into a block or stand-alone grant. This transfer requires annual Board approval. Impact: Decrease in funds available to school sites under the School and Library Improvement Block Grant; decreases in the general fund contribution to Special Education. To minimize the impact to school sites, only one-third of the allowed central services allocation will be implemented this year. In other words, the AUSD will allocate 5% of the grant award for Central Services instead of 15%, which is allowed and standard practice. This will result in a 20% decrease in school site funds instead of a 20% decrease, which was implemented last year. |
| Developer Fees | $188,003 | One-Time (FY06/07) | Ed Code 17620(a)(5) allows scholl ditricts to use up to 4% of developer fees to reimburse the district for the administrative costs incurred to collect those fees (Fund 25). The AUSD can collect this charge for the four most current recetn fiscall years; this charge is subject to the review and approval of our auditor. We are currently working with our auditor, and expect final approval by October 20th. Impact: Decrease in Developer Fees Funds available for capital improvements. |
| Adult Education | $237,350 | One-Time (FY06/07) | Ed Code 52616.4 allows scholl ditricts to use up to 8% of Adult Education (Fund 11) revenue in lieu of chargin direct support costs (e.g. instructional administration, school administration, plant maintenance and operation costs, and facilities costs). The AUSD can collect this fee for the four most recent fiscal years; this charge is subject to the review and approval of our auditor. We are currently working with our auditor, and expect final approval by October 20th. The Adult Education Fund (Fund 11)has an FY06/07 Beginning Fund Balance of $918,000. Impact: Decrease in Adult Education Balance; will not impact curent year services. |
| Reimbursement for Deferred Mandated Cost Claims ($1,130,856 recieved as of 10/17/2006) | $1,561,053 | One-Time (FY06/07) | The FY06/07 Budget Act funds to cover 100% of deferred mandated cost reimbursements. This appropriation translates to almost $1,600,000 to the AUSD for claims from FY01/02 to FY04/05 (FY05/06 claims are not ready at this time). The Office of the State Controller (OSC) is actively auditing claims. On average, the OSC has disallowed 80% of claims. The audit period extends for three years from the date a rembursement is issued. Impact: Temporarily replenishes fund reserve. |
| TOTAL | $2,091,503 | . | . |
Please note, the shortfall in the reserve results from on-going costs. These costs require on-going funds. The AUSD must make spending reductions for FY07/08 to fund the ongoing costs. The timeline to identify and approve the spending reductions for FY07/08 is detailed below.
| Task | Completion Date | Responsible | Vehicle |
| Identify committee members(Brandon Kreguer, Luz Cazares, Debbie Wong, Sean McPhetridge, Barbara Lee, Mike Janvier, Laurie Fry and Katie Lyons are on the committee.) | October 23, 2006 | Executive Cabinet | Executive Cabinet Meeting |
| Develop preliminary list of spending reductions | December 15, 2006 | Committee | Series of Meetings (October 30 - December 15, 2006) |
| Present preliminary list of spending reductions to Superintendent Council and gather feedback | January 17, 2007 | Ardella | Superintendent Council Meeting |
| Present preliminary list of spending reductions to Extended Cabinet with Principals and gather feedback | Janaury 22, 2007 | Ardella, Luz | Extended Cabinet Meeting |
| Present preliminary list of spending reductions to Community and gather feedback | Janaury 26, 2007 | Ardeall, Luz | Community Meeting (two meetings) |
| Finalize list of spending reductions incorporating feedbackl from Extended Cabinet, Superintendent's Coucnil, and the Community | Janaury 29, 2007 | Executive Cabinet | Executive Cabinet Meeting |
| Review spending reductions | February 13, 2007 | Board, Ardella, Luz | BOE Meeting |
| Approve spending reductions | February 27, 2007 | Board | BOE Meeting |
| Approve resolutions for reduction in workforce for management, certificated and classified staff | March 6, 2007 | Board | Special BOE Meeting |
| Incorporate spending reductions in 2ns Interim report to the Alameda County of Education | March 27, 2007 | Luz | 2nd Interim Report |
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Last modified: January 31, 2006
Disclaimer: This website is the sole responsibility of Mike McMahon. It does not represent any official opinions, statement of facts or positions of the Alameda Unified School District. Its sole purpose is to disseminate information to interested individuals in the Alameda community.