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Source:Februrary 1 Workshop Handout

Alternative Budget Reduction Recommendation

Using 1.5% Reserve Factor

February 1, 2005

Background: As part of the budget passed by Legislature for 2004/05, AB1754, Section 9, allowed school districts to reduce their Reserve for Economic Uncertainity by 50% for 2004/05. If a similar Assembly Bill is passed for 2005/06, the District could meets fiscal reporting responsibility with a 1.5% reserve instead of 3.0% reserve.

This action would allow the District to delay taking on action on approximately $800,000 in budget reductions. However, in fiscal year 2006/07, the District would have increase their reserves up to 3%, which would mean a combination of increasing revenues and/or reducing expenditures.

NOTE: Bolded items have been reduced to zero from the original recommendation.

SPENDING REDUCTION PLAN for FISCAL YEAR 2005-06
2/1/2005
Note:  The items are listed in no particular order.
           The Fiscal Recovery Plan column represents the original list presented to the Board.
           The Superintendent/Staff Recommendation column represents the revised list for Board consideration
ITEM

 Fiscal   Recovery Plan

REVISED Superintendent /Staff Recommendation
Reduce Counselors by 4.0 fte's. $228,000 $0
Staff will implement a reduction in the Middle and High Schools.
Effects--Negotiable
RECOMMENDATION:  No Reduction    
Close One Elementary School $299,000 $0
The district will close an elementary school as a result of losing
over 300 students from the apartment closure.  Savings from
Principal, Secretary, Clerks, Custodian and Teacher (1.0 fte)
Effects--Negotiable
RECOMMENDATION:  No Reduction    
Close Paden 6-8 Program $57,000 $0
The 6-8 Program will be closed and students moved back to their
home schools. Estimated savings, 1.0 fte. Effects--Negotiable
RECOMMENDATION:  No Reduction    
Reduce Budget for Athletics in the High and Middle Schools $132,735 $0
The athletics budget for coaches' stipends will be reduced by 50%.  
Sites will decide how the reduction is to be implemented.
Effects--Negotiable
RECOMMENDATION:  No Reduction    
Eliminate Class Size Reduction @ Grade 3 $90,423 $0
The district will opt out of the K-3 CSR Program saving the difference 
between the State income and District costs.  Effects--Negotiable
RECOMMENDATION:  No Reduction    
Reduce the Encroachment by the WCDC Program $67,000 $0
Staff will reduce the encroachment by reducing expense or increasing
income.  Effects--Negotiable
RECOMMENDATION:  A More Conservative Amount is Recommended   
Adjust Teacher Staffing as a Result of Lower Enrollment $286,620 $286,620
Completed.  The district hired 5.0 ftes less than projected as a
result of lower enrollment.  Non-Negotiable
RECOMMENDATION:  Per Fiscal Recovery Plan    
Implement the Mega-Item Transfer Provision $55,000 $55,000
Completed.  State law allows transfer of funds from certain
categorical programs to others.  The result is less encroachment
on the general fund.  Non-Negotiable
RECOMMENDATION:  Per Fiscal Recovery Plan    
SPENDING REDUCTION PLAN for FISCAL YEAR 2005-06
     
ITEM Fiscal Recovery Plan Superintendent /Staff Recommendation
Eliminate a Carpenter Position $67,319 $67,319
Completed.  The vacant position will not be filled as a result
of implementing the hiring freeze.  Effects--Negotiable
RECOMMENDATION:  Per Fiscal Recovery Plan    
Transfer Expenses to Restricted Programs $102,094 $102,094
Completed.  Allowable charges to categorical sources for personnel 
will be maximized. Non-Negotiable
RECOMMENDATION:  Per Fiscal Recovery Plan    
Implement a Spending Freeze in the District Office Only $100,000 $100,000
Implemented in 04-05 and 05-06.  Non-Negotiable
RECOMMENDATION:  Per Fiscal Recovery Plan    
Implement a Hiring Freeze Districtwide $100,000 $50,000
Implemented in 04-05 and 05-06.  Non-Negotiable
RECOMMENDATION:  Based on the most current data, $50,000 
is a firm amount.    
Reduce Use of Substitute Custodians $40,000 $10,000
Implemented in 04-05 and 05-06.  Effects--Negotiable
RECOMMENDATION:  Initially plan on $10,000 and gradually   
increase to $40,000.    
Reduce Energy Use by 5% $40,000 $20,000
Implemented in 04-05 and 05-06.  Non-Negotiable
RECOMMENDATION:  Energy conservations are currently in place 
and $20,000 is a more reasonable goal.    
Reduce Overtime $20,000 $10,000
Implemented in 04-05 and 05-06.  Non-Negotiable
RECOMMENDATION:  Plan on $10,000 and gradually increase 
to $20,000.    
Increase Revenue by Increasing Attendance by 1% $482,300 $289,300
Implemented in 04-05 and 05-06.  Non-Negotiable
RECOMMENDATION:  Until programs are fully implemented at  
the sites, 60% of plan is recommended    
Utilize Measure C Funds for Equipment Purchases $191,941 $191,941
Equipment purchases currently budgeted under the General Fund 
will be transferred to Measure C.  Non-Negotiable
RECOMMENDATION:  Per Fiscal Recovery Plan    
SPENDING REDUCTION PLAN for FISCAL YEAR 2005-06
     
ITEM Fiscal Recovery Plan Superintendent /Staff Recommendation
Utilize Measure C Funds for Certain Administrative Expenses $76,000 $76,000
Certain administrative oversight expenses could be charged to
Measure C.  This would only be effective through the life of the
Measure C bonds.  Non-Negotiable
RECOMMENDATION:  Per Fiscal Recovery Plan    
Reduce Maintenance/Operations/Facilities (MOF) Staffing $24,000 $24,000
Staff will implement $24,000 reduction.  Effects-Negotiable
RECOMMENDATION:  Per Fiscal Recovery Plan    
Eliminate the Summer Differential Pay for Custodians $26,775 $0
Eliminate the night differential pay custodians receive during the
summer when they work during the day.  Negotiable
RECOMMENDATION:  No Reduction    
Reduce Clerical Staffing at Encinal High School $63,517 $63,517
The number of clerical staff will be determined using enrollment as the
basis.  EHS will be adjusted by 2.0 fte's.  Effects--Negotiable
RECOMMENDATION:  Per Fiscal Recovery Plan    
Reduce Health Clerks Districtwide. $34,826 $0
Staff will implement reduction by assigning a uniform number of hours
per day.  Elementary/ 3; Middle/5; High/6.  Non-Negotiable
RECOMMENDATION:  No Reduction    
Reduce District Office Clerical Support $74,305 $74,305
Staff will reduce District Office clerical support staff by 2.0 fte's;  
1.0 fte from instructional and 1.0 fte from non-instructional 
Effects--Negotiable
RECOMMENDATION:  Per Fiscal Recovery Plan    
Reduce English Language Development (ELD) Expenditures $70,000 $20,000
Staff will implement a reduction.  Effects--Negotiable
RECOMMENDATION:  A More Conservative Amount is Recommended   
Reduce Independent Study Teachers by .50 fte $28,500 $28,500
Staff will reduce the .50 fte through maximizing of student loads.
Effects--Negotiable
RECOMMENDATION:  Per Fiscal Recovery Plan    
Reduce Teacher Staffing at Second Semester $114,648 $57,000
Teaching staff will be reduced proportionately when enrollment
declines at second semester. Effects--Negotiable
RECOMMENDATION:  Placing effort on increasing attendance  
will lessen the need to adjust staffing.    
SPENDING REDUCTION PLAN for FISCAL YEAR 2005-06
     
ITEM Fiscal Recovery Plan Superintendent /Staff Recommendation
Assign 1 Principal to 2 Schools $106,568 $0
One principal will be assigned to two small elementary schools.
Non-Negotiable
RECOMMENDATION:  No Reduction    
Reduce/Eliminate K-5 Preparation Time $500,000 $0
There are several options ranging from $73K to $1.5 M.
  Option 1) Savings for 27 teachers @$55,000: $1,485,000
  Option 2) Savings for 9 teachers:  $495,000
  Option 3) Savings for 6 teachers:  $330,000
  Option 4) Savings for 27 teachers:  $1,485,000
  Option 5) Savings for 1 and 1/3 teachers:  $73,150
Negotiable
RECOMMENDATION:  No Reduction    
Eliminate Class Size Reduction @ Kindergarten $83,990 $0
The district will opt out of the K-3 CSR Program saving the difference 
between the State income and District costs.  Effects--Negotiable
RECOMMENDATION:  No Reduction    
Eliminate Class Size Reduction @ Grade 1 $90,908 $0
The district will opt out of the K-3 CSR Program saving the difference 
between the State income and District costs.  Effects--Negotiable
RECOMMENDATION:  No Reduction    
Eliminate Class Size Reduction @ Grade 2 $83,296 $0
The district will opt out of the K-3 CSR Program saving the difference 
between the State income and District costs.  Effects--Negotiable
RECOMMENDATION:  No Reduction    
Reduce the Encroachment by the Special Education Program $180,000 $100,000
Staff will implement a plan to reduce encroachment.  Effects--Negotiable
RECOMMENDATION:  Because of the volatile nature of Special 
Education funding, a more conservative amount is recommended.    
SPENDING REDUCTION PLAN for FISCAL YEAR 2005-06
     
ITEM Fiscal Recovery Plan Superintendent /Staff Recommendation
Implement a 2 day furlough $532,000 $0
All employees will not work and will not be paid for 2 days.  This
will not affect student minutes as there are currently 2 non-teaching 
days.  Negotiable
RECOMMENDATION:  No Reduction    
Implement  Reversion of COLA of 2.0% $1,272,000 $0
The 2.0 % is based on COLA given to employees in 03/04 but taken
back by the State through mid year cuts.  Reversion could be 
made on future COLAs.  Negotiable
RECOMMENDATION:  No Reduction    
Freeze Step and Column Salary Increase $526,000 $0
Step and Column Salary Increases for all employees  would be 
suspended for 1 year.  Negotiable
RECOMMENDATION:  No Reduction    
                                                      TOTAL: $6,246,765 $1,625,596

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Last modified: , 2005

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