Presenting final budget for adoption by Board of School Trustees

1. Adoption 2011 of the FY Final Budget May 19, 2010 Board Work Session 1

2. Budget Timeline Adoption of Tentative 2011 Budget April 7 Tentative Budget Submitted To State April 15 Adoption of Final 2011 Budget May 19 Final Budget Submitted to State June 8 2

3. Tentative Budget Assumptions As Adopted April 7, 2010 All elementary schools on a nine-month calendar No changes in employee contract provisions Class sizes in Grades 1-3 increased by 2 students Textbook/supply budgets reduced Student enrollment will decline slightly Fund balance used to offset budget reductions Administrative positions reduced by 10 percent Federal Title I funding will be $6.9 million less 3

4. Updates Since Tentative Budget The following changes occurred after adoption of the Tentative Budget on April 7, 2010: Confirmed that allElementary Schools will convert to nine-month calendars Tentative agreements have been reached with the Teacher and Support Staff employee bargaining groups 4

5. Remaining Shortfall After inclusion of savings from converting all Elementary Schools to nine-month calendars… …a shortfallof $25 millionremainsand has been deducted from salary accountsto balance the 2011 Final Budget. 5

6. Options for Dealing with Shortfall Option 1: Reach final agreement with the District’s 4 bargaining groups on needed changes in employee salaries and benefits. Option 2: Cut additional staff positions and/or reduce number of paid days (within contract provisions). A combination of these options might be necessary, depending upon final resolution of contracts with each of the District’s 4 bargaining groups. 6

7. Summary of Major Compensation Issues Included in the 2010-11 Final Budget Eliminating positions Reducing the work year Salary adjustments 7

8. Reductions in Positions To Date & Planned *General Operating Fund Positions 8

10. Principal year-round stipend eliminated

11. Add-on contracts for specialists in schools eliminated

12. Year-round principals retain their 12-month pay on nine-month schedules9

15. Benefit shift to cover PERS 0.5% at no additional cost10

18. Budget Timeline Adoption of Tentative 2011 Budget April 7 Tentative Budget Submitted To State April 15 Adoption of Final 2011 Budget May 19 Final Budget Submitted to State June 8 Additional revisions to the 2011 budget can be made as part of the Amended Final Budget, to be presented for adoption in December 2010. Or, alternatively, an augmented budget with requisite changes could be made in the interim. 13