Budget Update

Salem-Keizer School District

February 22, 2011
Purpose of this update…
 No easy cuts and we need to provide time
for discussion
 Allow time for employees and community
to understand the magnitude and impact
 Urgency around getting ready for next year
(staffing)
 Urgency around conversation with our
employee groups (bargaining)
What we know…
  The Governor’s Budget creates a significant
challenge:
  $400 million less than last biennium
  Rolls back per pupil spending to 2005 levels
  However, our costs have continued to increase
  We will lose Federal funding (ARRA)
  All districts in Oregon and many across the
nation are impacted
  We expect a slow economic recovery
What we know…
Our shortfall for next year is approximately
$55 million, which is based on:
 Maintaining current programs
 Restoring 4 furlough days
 Negotiated salary increases (Steps & COLA)
 Inflation
 A substantial increase in the PERS rate
What we know…
Overview of where cuts have occurred
over the last biennium
Direct
Instruction
7% Direct Support
to Students
20%
Reserves
56% Central
Administration
17%
What we know…
3 Year Overview of General Fund Allocations

65% 68% 68%

26%
25% 25%
Direct Instruction
9% Direct Support to Students
7%
7%
Central Administration
2008-09
2009-10
2010-11
What we know…
Where the money goes
Purchased
Services Supplies and
7% Materials
3%
Other
2%

Salaries, wages,
and benefits
88%
Cuts…
What we can do What must be
negotiated
Raise class size Salary Adjustments

Eliminate or reduce Furlough Days

programs

Reduce central services Benefit Packages

Assumptions…
 The statewide funding level will be $5.8
billion
 Our employee groups will help solve the
shortfall

All the potential cuts are predicated

on these two huge assumptions.
Potential cuts…

 250 - 400 teaching positions

 130 - 230 classified staff (school based
and support)
 9 -16 administrators

AND
Cuts…
Additionally we will need to:

 Consider consolidation of small schools

 Reduce or eliminate funding for
instructional programs
 Reduce funding for departments
Cuts…
What we can do What must be
negotiated
Raise class size Salary Adjustments

Eliminate or reduce Furlough Days

programs

Reduce central services Benefit Packages

Closing Comments

OurVision:
All students graduate
and are prepared for
a successful life.
Next Steps:
March 29, 2011 – Budget Hearing at
6:00 p.m. at McKay
April 26 – Budget Message
May 3 and 4 – Budget Hearings
May 9 and 11 – Budget Hearings (if needed)
June 28 – Budget Adoption
6:00 p.m. – Locations TBD