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    Lausd Budget

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    R Stern
    The LAUSD is facing a $557 million budget deficit for the 2012-13 school year, which comes after cumulative deficits of $2.8 billion in the previous four years. To balance budgets, over 8,000 valued employees have lost their jobs through layoffs. The district has already made cuts by reducing leased office space by over 90% but still needs to fund minimum legal requirements with only $353 million left for other programs. New revenue is needed to avoid further drastic cuts that would harm students and schools. The district supports a local parcel tax initiative and state tax initiatives to close budget gaps and restore educational programs.

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    Lausd Budget

    Uploaded by

    R Stern
    109 views14 pages
    The LAUSD is facing a $557 million budget deficit for the 2012-13 school year, which comes after cumulative deficits of $2.8 billion in the previous four years. To balance budgets, over 8,000 valued employees have lost their jobs through layoffs. The district has already made cuts by reducing leased office space by over 90% but still needs to fund minimum legal requirements with only $353 million left for other programs. New revenue is needed to avoid further drastic cuts that would harm students and schools. The district supports a local parcel tax initiative and state tax initiatives to close budget gaps and restore educational programs.

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    The Fiscal challenges for Public Education in Los Angeles

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    The LAUSD is facing a $557 million budget deficit for the 2012-13 school year, which comes after cumulative deficits of $2.8 billion in the previous four years. To balance budgets, over 8,000 valued employees have lost their jobs through layoffs. The district has already made cuts by reducing leased office space by over 90% but still needs to fund minimum legal requirements with only $353 million left for other programs. New revenue is needed to avoid further drastic cuts that would harm students and schools. The district supports a local parcel tax initiative and state tax initiatives to close budget gaps and restore educational programs.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    109 views14 pages

    Lausd Budget

    Uploaded by

    R Stern
    The LAUSD is facing a $557 million budget deficit for the 2012-13 school year, which comes after cumulative deficits of $2.8 billion in the previous four years. To balance budgets, over 8,000 valued employees have lost their jobs through layoffs. The district has already made cuts by reducing leased office space by over 90% but still needs to fund minimum legal requirements with only $353 million left for other programs. New revenue is needed to avoid further drastic cuts that would harm students and schools. The district supports a local parcel tax initiative and state tax initiatives to close budget gaps and restore educational programs.

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    2012-13 Budget Update

    February 7, 2012

    LAUSD is facing its 5th year of deficits.


    The Los Angeles Unified School District (LAUSD) is facing a $557 Million deficit in 2012-13. From 2008-09 to 2012-13 we have faced cumulative deficits of $2.8 Billion. Each year, California continues to balance the States budget on the backs of our children.

    * Source: http://www.cbp.org/pdfs/2011/111012_Decade_of_Disinvestment_%20SFF.pdf

    8,000 valued employees have lost their jobs.


    YEAR 2008-09 2009-10 DEFICIT BALANCING SOLUTIONS $427 M $838 M 415 Non-Instructional layoffs and one-time cuts Over 2,900 layoffs (2,520 Instructional + 398 NonInstructional positions), furloughs, Federal Stimulus funding, and program cuts Over 1,600 layoffs (619 Instructional + 989 NonInstruction positions), furloughs, Federal Stimulus funding, program cuts and one time savings Over 3,000 layoffs (1,914 Instructional + 1,109 NonInstructional positions), one time federal education jobs money, furloughs, and one time savings Over 7,500 employees may receive layoff notices*

    2010-11

    $620 M

    2011-12

    $408 M

    2012-13

    $557 M

    What cuts have we made already?


    Reduced Administrative and Support Office Space & Costs Since May 2009 LAUSD has terminated 92 leases with an aggregate monthly rental expense of $2.1 million, representing 682,000 square feet of space. Leased space has gone from 1.26 million square feet to approximately 500K square feet since 2009. This is approximately 9 football fields of space eliminated in the last three years. 90% of this space was for administrative support to schools. In 2012-13, Central office administration costs are projected to represent 5% of general fund, unrestricted revenues.
    4

    LAUSDs revenue continues to be less than the State owes us.

    The State is sending IOUs to schools districts instead of cash.

    The Governors proposal only prevents the situation from getting worse.
    What are we facing now? The Governors Budget Proposals for 2012-13 cuts LAUSDs transportation budget and relies on a temporary tax initiative 100% reduction of home to school transportation funding The Governors budget proposal depends on the passage of a November temporary tax which will pay down existing deferrals (money owed to schools already), there will be no new funding for schools, next year What if the Governors tax measure fails? Education is cut an additional $2.4 billion, about $370 per average daily attendance (ADA)
    7

    We can barely afford the legally required minimum levels of service for our students.
    The Base Program is comprised of:

    The Base Program accounts for approximately $2.3 Billion of a $2.7 Billion Unrestricted Budget.

    Minimum staffing levels required by law Ed Code Court Orders/Decrees/Settlements Minimal operational recommendations Bargaining Agreements (some, but not all elements) 95% of dollars allocated to schools operations 5% of dollars allocated to local districts and central office operations

    After paying for the MINIMUM LEVELS OF SERVICE required by law, we have only approximately $353 million for all other program investments
    8

    Without additional revenue, we must make drastic cuts.

    We can only fund our priorities up to this line. Anything above is unfunded.

    We can only fund our priorities up to this line. Anything above is unfunded
    9

    Budget Balancing Options


    We are moving forward with Option 1, which relies on new revenues & shared commitments. Option 2 and Option 3 are contingencies should Option 1 fail. Los Angeles Unified School Districts 2012-13 Budget Balancing Plan
    Option 1 NEW ONGOING SUSTAINABLE REVENUE SOURCE* Governors Revenue Initiative Local Revenue Initiative Other State Initiatives Option 2 PARTIAL LIMITED NEW ONGOING SUSTAINABLE REVENUE SOURCE 1 or more initiatives fail: Governors Revenue Initiative Local Revenue Initiative Other State Initiatives WITH SHARED COMMITMENTS AND CUTS Option 3 NO NEW ONGOING SUSTAINABLE REVENUE SOURCE

    AND NO SHARED COMMITMENTS EQUALS All cuts implemented

    CURRENT DEFICIT BALANCING REDUCTIONS

    $557 MILLION

    $557 MILLION Up to $362.7 MILLION *


    Restoration of services and programs to students.

    $557 MILLION Reductions required to close operating deficit


    Restoration of District programs and services closest to classrooms and schools.

    $0

    $557 MILLION $0

    RESTORATIONS

    $557 MILLION

    Up to $194.3 MILLION

    * The District has an ongoing operating deficit due to declining enrollment and other factors. In order to eliminate the ongoing operating deficit, the District will have to reduce expenditures by 10 $362.7 million unless an ongoing sustainable revenue can be found. * * Grave consequences will be on-going for programs into 2013-14 and further.

    Summary of State Initiatives*


    Proponent Total Revenues Generated Education Revenues Generated Source of Additional Revenues Duration

    Governor Jerry Brown

    $7 billion

    Limited additional funds offset state General Fund obligation

    Half-cent sales tax, up to 2% increase in personal income tax for highincome earners Increase in personal income tax for all but low-income earners Up to 5% increase in personal income tax for those earning more than $1 million per year 15% oil severance tax

    Up to five years

    Molly Munger (PTA supported)

    $10 billion

    $7 billion in first three years; $10 billion thereafter $3.6 billion for K-12 and higher education

    Ten years

    California Federation of Teachers (CFT)

    $6 billion

    Permanent

    Rescue Education

    $3 billion

    $1.1 billion for K-12; $1.4 billion for community colleges Limited one-third for higher education, remaining to the state General Fund

    Permanent

    John Burton

    $2 billion

    12.5% oil severance tax, with some exceptions

    Permanent

    11 *School Services of California Governors Budget Workshop Materials

    Local Revenue Initiative: $200-$300 Million Why do we need it?


    The Governors proposal provides no new funding for education, it only prevents the problem from getting worse. The temporary parcel tax will be used to stabilize our local schools:

    12

    Even if BOTH the Governors tax measure & a Local Revenue Initiative succeed, LAUSD would still be forced to make program cuts and layoffs

    We will still have to find $250 - $350 million in solutions (new revenues or cuts). Factors contributing to the need for these remaining solutions include: Expiring or discontinuing grants or other restricted funding sources, Loss of federal and state stimulus dollars, Loss of one-time savings measures, Declining enrollment, Reductions in state and federal categorical programs, Increasing operating costs.
    13

    What can you do to help?


    Learn more about Local and State revenue initiatives. Your elected representatives speak for YOU. They need to know your opinions in order to carry your message in Sacramento. To find and contact your elected representative to express your position on public education and funding for public education please visit this website: http://www.leginfo.ca.gov/yourleg.html. Encourage perfect attendance for students, teachers and staff. Contribute to the LA Fund for Public Education to support individual schools or programs.
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