Houston Independent School District 2011-2012 Budget November 4, 2010November 4, 2010 2011-2012 Budget What do we know right now: * State budget shortfall is estimated to be between 11 billion and 25 billion; + — Statewide property value projections estimate a decrease in overall values of up to 3 bi in; * — Aportion of all school district's budgets are currently funded through the federal stimulus funds, which will expire at the end of the 2010-2011 fiscal year; + Health insurance costs are still trending upward and will require a budget increase in 2011-2012: * — Increase in utility costs for Renew drainage ordinance; * Title 1 funding offers less opportunity for district initiatives due to required set-asides; + Potential cuts to grant programs by the Texas Education Agency needed to balance the state budget which will reduce services to district students; andNovember 4, 2010 2011-2012 Budget What we know: Implications to HISD School funding likely to be resolved during a special session of the Texas Legislature; By law, HISD must adopt a budget by June 30, 2011; It takes7-9 months to complete a review of the district's budgets and priorities; Budget must be prepared with an anticipated shortfall that have to be adjusted in spring or summer 2011; and Superintendent's Cabinet is already meeting to discuss budget process, potential issues as well as engage with the schools and the community.November 4, 2010 2011-2012 Budget Budget Review will encompass: Review of all central office departmental budgets and organization charts Review of business operations (custodial, police, transportation) to look at how services are provided and if there are alternatives to current service models Review of district-wide activities for possible cost reductions Modeling of cuts to school allocations and impact on schools Human Resource implications from cuts Review of district-wide educational program models to check alignment against strategic plan as well as results from prior years