Plan to Address 2013-14 BUDGET

SEQUESTRATION

• The Kentucky Department of Education held a webinar and told districts to be conservative when writing next year’s budgets and that, at this point, the sequestration will include at least five percent cuts to the state each of the next 10 years, unless Congress can figure out a way to reverse them.

SEQUESTRATION

• • • • • True effects of sequestration are still unknown.

Expect to learn in May how much less money will be funneled from the federal government. The across-the-board cuts apply to many federal programs, including USDOE, Title I, Title II grants, special

education, and federal pre-school.

Locally, this darkens the fiscal picture of our district as we face cuts already made at the state level. This loss of funding is at a time of increase in expenditures. District is state mandated to increase input for employee retirement; the cost of services has increased and fuel costs are unpredictable. No increase for Support Education Excellence in Kentucky (SEEK) funding = greatly reduced budget. The sequestration is creating a situation where funding for some positions is gone. The funds aren’t there anymore, so now we are forced to reduce positions.

SEQUESTRATION

10% Reduction for 2013-14

% of reduction in FY 13 will be same for next 10 yrs.

2012-13 Current Funding 13-14 10% Less 14-15 10% Less 15-16 10% Less

Title I 584,321 523,189 = (1 teacher & 1 assistant) 470,870 423,783 Title II Special Ed Federal Preschool Allocated Amount

Reduction Amount

135,693 585,149 60,533 1,365,696

--------

122,124 526,634 54,480 1,226,427

122,643

109,912 473,971 49,032 1,103,785

110,379

98,921 426,574 44,129 993,407

99,341 Total Reduction of 3 Consecutive Years 141,784 33,096 142,718 14,764 332,362

• •

END OF FEDERAL STIMULUS MONEY

In 2009, Kentucky districts received federal stimulus money that lasted two years, ending June 2011.

Union County used these dollars to increase staffing (13 certified & 12 classified).

Program

Title I ARRA IDEA B ARRA Preschool ARRA EDU Jobs ARRA Fed. State Fiscal Stabilization

Award Amount

328,854 688,012 46,273 559,860 1,691,416

Total Federal Stimulus 3,314,415

State Projects Funding Cuts-Last 6 Years

State Grants for Entire District

Textbook PD ESS

Total Allocation FY 2008 78,743 49,129 127,393 255,265

FY 2009 43,201 17,797 53,446 114,444 FY 2010 FY 2011 FY 2012 --0- 9,773 43,396 --0- 9,772 43,398 --0- 9,056 45,607 53,169 53,170 54,663

FY 2013 --0- 9,056 44,912 53,968 Reduction Since 2008

78,743 40,073 82,481

201,297 (Services Continue)

FY 14

0 ?

?

?

• • •

Other Funding Concerns

Nurses in Schools: (reviewing different options) – Cost has increased drastically: In 2011-12 was $55,000; in 2012-13 was $85,000; cost for 2013-14 is $175,000. Green River Health Department has already reduced services of 3 assistants in March 2012. KSBIT: – Current assessment is $289,000 SEEK: – No increase for employees’ salary in years from the state. However, district salary schedule still includes step and rank increases ---current & projected cost locally: • 2012 = 142,788 • • • • 2013 = 138,148 2014 = 139,500 2015 = 141,000 2016 = 142,700

Total = 704, 136

Unfortunately, What This All Means…

• • • Government loses revenue, staff loses jobs, and students will have fewer resources! As we are forced to reduce our working budget, we will remain focused on our core competency of teaching and learning and be committed to providing a quality education to our students. The reduction in Union County will begin at the district level.

Suggested Reductions for 2013-14 Budget – District Efforts

• 5 Days Reduction for all Directors/Coordinators =

$14,990

• RtI District Position = $61,935 • Reduce 1 District GT Position = $45,000 (Combine Middle and High) • Reduce all Instructional Coaches 5 Days = $6,325

Suggested Reductions for 2013-14 Budget Continued

• Close SES Afterschool Childcare = $25,765 • Reduce Dental benefits = $108,432 • Reduce % of 401K/403B = $93,091 • Reduce Bus Purchase for 2013 = ?

(1 bus = $85,000, usually purchase 3 each year - $255,000)

Basic Staffing Allocation (Board Policy)

• • • • •

Reductions:

MES: 2.5 teachers, 1 aide SES: .5 teacher & 2 aides UES: 3.5 teachers & 1.5 aides UCMS: 3 teachers & 1 secretary UCHS: 2 teachers

Total Certified Positions = 11.5 Total Classified = 5.5

Total Amount of Reduction =

$623,986

• • Total Personnel for UC: Prior % Personnel = 86% 2013-14 % of Personnel = 82% Total of All Reductions for 2013-14 Budget =

$979,524 ($20,476 from 1 million dollar budget reduction)

Additional Efforts for 2013-14 Budget

• UCLA Principal; Position Remain Vacant =

$70,000

• Maintenance Position Remain Vacant =

$27,561

• Take 4% Tax Rate for 2013-14